Discontinued Operations

12 Months Ended

Dec. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

19. 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 years ended December 31, 2018 and 2017 were as follows (in thousands):

	Year ended			Year ended
	December 31,			December 31,
	2018			2017
Revenues:
Rental revenue	$	9,791			22,570
Revenue – reimbursements		2,307			5,019
Total Revenues		12,098			27,589
Cost of operations:
Depreciation, depletion and amortization		3,161			7,598
Operating expenses		1,742			3,485
Property taxes		1,286			3,008
Management company indirect		1,360			734
Corporate expenses (Note 4 Related Party)		1,462			200
Total cost of operations		9,011			15,025
Total operating profit		3,087			12,564
Interest expense		(587	)		(1,582	)
Loss on investments land sold		—			—
Gain on sale of buildings		164,915			—
Income before income taxes		167,415			10,982
Provision for (benefit from) income taxes		45,286			(21	)
Income from discontinued operations	$	122,129			11,003

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

	December 31		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		2,374		68,049
Net investments in properties		1,487		165,690
Accounts receivable, net		910		405
Unrealized rents		473		4,088
Deferred costs		354		6,509
Other assets		—		2
Assets of discontinued operations	$	3,224		176,694
Liabilities:
Secured notes payable, current portion	$	—		23,825
Secured notes payable, less current portion		—		4,338
Accounts payable and accrued liabilities		205		2,289
Deferred revenue		45		967
Tenant security deposits		38		861
Liabilities of discontinued operations	$	288		32,280