Real Estate Activities

6 Months Ended

Jun. 30, 2016

Real Estate [Abstract]

Real Estate Activities

REAL ESTATE ACTIVITIES

Investments in real estate as of June 30, 2016 and December 31, 2015 were comprised of the following:

(in thousands of dollars)	As of June 30, 2016			As of December 31, 2015
Buildings, improvements and construction in progress	$	2,836,412		$	2,847,986
Land, including land held for development	515,143			519,903
Total investments in real estate	3,351,555			3,367,889
Accumulated depreciation	(1,057,857		)	(1,015,647		)
Net investments in real estate	$	2,293,698		$	2,352,242

Capitalization of Costs

The following table summarizes our capitalized salaries, commissions, benefits, real estate taxes and interest for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended   June 30,				Six Months Ended   June 30,
(in thousands of dollars)	2016		2015		2016		2015
Development/Redevelopment Activities:
Salaries and benefits	$	266	$	219	$	541	$	373
Real estate taxes	6		276		25		276
Interest	668		770		1,370		804
Leasing Activities:
Salaries, commissions and benefits	1,279		1,573		3,016		3,228

Dispositions

The following table presents our dispositions for the three and six months ended June 30, 2016:

Sale Date	Property and Location	Description of Real Estate Sold	Capitalization Rate		Sale Price		Gain
					(in millions)
2016 Activity:
June 2016	Street retail located on Walnut and Chestnut Streets, Philadelphia, Pennsylvania	Street Retail	3.2	%	$	45.0	$	20.3
March 2016	Lycoming Mall Pennsdale, Pennsylvania	Mall	18.0	%	26.4		0.3
March 2016	Gadsden Mall, Gadsden, Alabama, New River Valley Mall, Christiansburg, Virginia, and Wiregrass Commons Mall, Dothan, Alabama (1)	Three Malls (single combined transaction)	17.4	%	66.0		1.6
February 2016	Palmer Park Mall, Easton, Pennsylvania	Mall	13.6	%	18.0		0.1

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⁽¹⁾ In connection with this transaction, we issued a mortgage loan to the buyer for $17.0 million, which is recorded in “Deferred costs and other assets, net” on our consolidated balance sheet. The mortgage loan is secured by Wiregrass Commons Mall, bears interest at the rate of 6.00% per annum and has a maturity date of April 2026.

Other Real Estate Activity

In June 2016, we sold an operating parcel located at Monroe Retail Center for $2.1 million, and recorded a gain of $0.6 million.

In January 2016, we sold a non operating parcel located at Sunrise Plaza for $2.0 million, and recorded no gain or loss on the sale of this parcel.

Impairment of Assets

In June 2016 we recorded a loss on impairment of assets on Washington Crown Center, in Washington, Pennsylvania of $14.1 million in connection with negotiations with a prospective buyer of the property. In connection with these negotiations, we determined that the holding period of the property was less than previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon the negotiations, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets.

In March 2016 we recorded a loss on impairment of assets on an office building located in Voorhees, New Jersey of $0.6 million in connection with negotiations with a prospective buyer of the property. In connection with these negotiations, we determined that the holding period of the property was less than previously estimated, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon the negotiations, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets.