Discontinued Operations

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

(13) Discontinued Operations.

On May 21, 2018, the Company completed the disposition of 40 industrial warehouse properties and three additional land parcels to an affiliate of Blackstone Real Estate Partners VIII, L.P. for $347.2 million. One warehouse property valued at $11.7 million was excluded from the sale due to the tenant exercising its right of first refusal to purchase the property. These properties comprised substantially all the assets of our Asset Management segment and have been reclassified as discontinued operations for all periods presented. The results of operations associated with discontinued operations for the three and six month periods ended June 30, 2018 and 2017 were as follows (in thousands):

	Three months ended						Six months ended
	June 30,						June 30,
	2018			2017			2018			2017
Revenues:
Rental revenue	$	3,394			5,472			9,412			10,998
Revenue – reimbursements		716			1,169			2,245			2,330
Total Revenues		4,110			6,641			11,657			13,328
Cost of operations:
Depreciation, depletion and amortization		1,217			1,929			3,102			3,762
Operating expenses		464			795			1,642			1,566
Property taxes		449			753			1,247			1,454
Management company indirect		812			168			990			333
Corporate expenses		655			—			1,402			—
Total cost of operations		3,597			3,645			8,383			7,115
Total operating profit		513			2,996			3,274			6,213
Interest expense		(187	)		(371	)		(587	)		(619	)
Gain on sale of buildings		164,807			—			164,807			—
Income before income taxes		165,133			2,625			167,494			5,594
Provision for income taxes		44,668			1,037			45,307			2,210
Income from discontinued operations	$	120,465			1,588			122,187			3,384

The components of the balance sheet are as follows (in thousands):

	June 30		December 31
Assets:	2018		2017
Real estate investments at cost:
Land	$	546		40,465
Buildings and improvements		3,315		186,657
Projects under construction		—		6,617
Total investments in properties		3,861		233,739
Less accumulated depreciation and depletion		2,331		68,049
Net investments in properties		1,530		165,690
Accounts receivable, net		332		405
Unrealized rents		94		4,088
Deferred costs		251		6,509
Other assets		3		2
Assets of discontinued operations	$	2,210		176,694
Liabilities:
Secured notes payable, current portion	$	—		23,825
Secured notes payable, less current portion		—		4,338
Accounts payable and accrued liabilities		189		2,289
Deferred revenue		2		967
Federal and state income taxes payable		46,228		—
Tenant security deposits		37		861
Liabilities of discontinued operations	$	46,456		32,280