DISCONTINUED OPERATIONS

12 Months Ended

Apr. 30, 2016

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

NOTE 12 • DISCONTINUED OPERATIONS

Prior to February 1, 2014, we reported, in discontinued operations, the results of operations and the related gains or losses of properties that had either been disposed of or classified as held for sale and otherwise met the classification of a discontinued operation. As a result of the adoption of ASU 2014-08, results of operations and gains or losses on sale for properties that are disposed or classified as held for sale in the ordinary course of business on or subsequent to February 1, 2014 would generally be included in continuing operations on our consolidated statements of operations, to the extent such disposals did not meet the criteria for classification as a discontinued operation described in Note 2.

During fiscal year 2016, we determined that our 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 were classified as discontinued operations and subsequently sold during fiscal year 2016. Additionally, we determined that our strategic decision to exit senior housing, which is a subset of our healthcare segment, met the criteria for discontinued operations and we consequently classified 34 senior housing properties as held for sale and discontinued operations at April 30, 2016. We classified no dispositions as discontinued operations during fiscal year 2015. During fiscal year 2014, we disposed of two multifamily properties, three office properties, twelve industrial properties and three retail properties that were classified as discontinued operations. The following information shows the effect on net income and the gains or losses from the sale of properties classified as discontinued operations for the fiscal years ended April 30, 2016, 2015 and 2014.

	(in thousands)
	2016		2015		2014
REVENUE
Real estate rentals	$	43,544	$	75,883	$	78,066
Tenant reimbursement		8,684		24,466		27,301
TRS senior housing revenue		3,955		3,520		1,627
TOTAL REVENUE		56,183		103,869		106,994
EXPENSES
Property operating expenses, excluding real estate taxes		10,252		23,517		25,735
Real estate taxes		5,777		14,343		15,229
Depreciation and amortization		14,166		27,823		32,216
Impairment of real estate investments		440		1,442		36,726
TRS senior housing expenses		3,366		2,997		1,331
Other expenses		—		1		3
TOTAL EXPENSES		34,001		70,123		111,240
Operating income (loss)		22,182		33,746		(4,246)
Interest expense(1)		(18,406)		(24,573)		(25,834)
Gain on extinguishment of debt(1)		29,336		—		—
Interest income		1		—		2
Other income		427		5		241
Income (loss) from discontinued operations before gain on sale		33,540		9,178		(29,837)
Gain on sale of discontinued operations		23,782		—		6,999
INCOME (LOSS) FROM DISCONTINUED OPERATIONS	$	57,322	$	9,178	$	(22,838)
Segment Data
Multifamily	$	—	$	—	$	(99)
Healthcare		5,926		6,832		4,223
All other		51,396		2,346		(26,962)
Total	$	57,322	$	9,178	$	(22,838)

(1) Interest expense includes $4.7 million and approximately $528,000 for fiscal years ended April 30, 2016 and 2015, respectively, of default interest related to a$122.6 million non-recourse loan. Gain on extinguishment of debt in the fiscal year ended April 30, 2016 includes $36.5 million of gain on extinguishment of debt recognized in connection with our transfer of ownership to the mortgage lender of the nine properties serving as collateral for the $122.6 million non-recourse loan and the removal of the debt obligation and accrued interest from our balance sheet.

	(in thousands)
	2016		2015		2014
Property Sale Data
Sales price		373,460	$	—	$	80,883
Net book value and sales costs		(349,678)		—		(73,884)
Gain on sale of discontinued operations		23,782	$	—	$	6,999

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)
		April 30, 2016		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	$	189,900	$	592,780
Receivable arising from straight-lining of rents		9,805		19,191
Accounts receivable		1,707		1,041
Prepaid and other assets		43		739
Intangible assets		0		25,879
Tax, insurance and other escrow		670		1,750
Property and equipment		479		515
Goodwill		18		193
Deferred charges and leasing costs		222		9,936
Total major classes of assets of the discontinued operations		202,844		652,024
Other assets included in the disposal group classified as held for sale		17,917		23,740
Total assets of the disposal group classified as held for sale on the balance sheet	$	220,761	$	675,764
Carrying amounts of major classes of liabilities included as part of discontinued operations
Accounts payable and accrued expenses	$	810	$	14,811
Mortgages payable		68,162		366,824
Other		7,900		7,904
Total major classes of liabilities of the discontinued operations		76,872		389,539
Other liabilities included in the disposal group classified as held for sale		840		11,760
Total liabilities of the disposal group classified as held for sale on the balance sheet	$	77,712	$	401,299