DISCONTINUED OPERATIONS

3 Months Ended

Jul. 31, 2015

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

NOTE 7 • DISCONTINUED OPERATIONS

The Company reports in discontinued operations the results of operations and any gain or loss on sale of a property or group of properties that has either been disposed of or is classified as held for sale and for which the disposition represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. During the first quarter of fiscal year 2016, the Company determined that its strategic plan to exit the office and retail segments met the criteria for discontinued operations. Accordingly, 48 office properties, 17 retail properties and 1 healthcare property which were classified as held for sale at July 31, 2015 were also classified as discontinued operations. The Company expects to dispose of the bulk of these properties in portfolio sales in the remainder of fiscal year 2016. In connection with the 9 properties encumbered by a $122.6 million CMBS loan, the Company is currently discussing a deed in lieu agreement with the lender, but the Company can give no assurance that such resolution will be entered into or that another mutually acceptable resolution will be reached.

The following information shows the effect on net income from the properties classified as discontinued operations for the three months ended July 31, 2015 and 2014:

	(in thousands)
	Three Months Ended July 31
	2015			2014
REVENUE
Real estate rentals	$	13,614		$	13,562
Tenant reimbursement		6,164			5,854
TOTAL REVENUE		19,778			19,416
EXPENSES
Depreciation/amortization related to real estate investments		4,239			3,970
Utilities		1,743			1,736
Maintenance		2,992			2,778
Real estate taxes		3,419			3,514
Insurance		265			274
Property management expenses		1,051			964
Amortization related to non-real estate investments		624			651
Impairment of real estate investments		440			0
TOTAL EXPENSES		14,773			13,887
Operating income		5,005			5,529
Interest expense(1)		(5,765	)		(4,917	)
Other income		70			5
(LOSS) INCOME FROM DISCONTINUED OPERATIONS	$	(690	)	$	617

(1) Includes $1.5 million  and $0, respectively, of default interest related to a$122.6 million non-recourse loan by a Company subsidiary, for which we received a default notice from the special servicer on April 14, 2015 due to nonpayment on April 6, 2015.

The following information reconciles the carrying amounts of major classes of assets and liabilities of the discontinued operations to assets and liabilities held for sale that are presented separately on the Condensed Consolidated Balance Sheets:

	(in thousands)
	July 31, 2015		April 30, 2015
Carrying amounts of major classes of assets included as part of discontinued operations
Property owned and intangible assets, net of accumulated depreciation and amortization	$	414,380	$	417,045
Receivable arising from straight-lining of rents		9,843		10,078
Accounts receivable		759		566
Prepaid and other assets		443		699
Tax, insurance and other escrow		1,017		1,176
Goodwill		193		193
Deferred charges and leasing costs		9,918		9,606
Total major classes of assets of the discontinued operations		436,553		439,363
Other assets included in the disposal group classified as held for sale		16,664		23,740
Total assets of the disposal groups classified as held for sale on the balance sheet	$	453,217	$	463,103
Carrying amounts of major classes of liabilities included as part of discontinued operations
Accounts payable and accrued expenses	$	15,173	$	13,952
Mortgages payable		282,106		295,677
Other		0		4
Total major classes of liabilities of the discontinued operations		297,279		309,633
Other liabilities included in the disposal group classified as held for sale		11,533		11,760
Total liabilities of the disposal groups classified as held for sale on the balance sheet	$	308,812	$	321,393