Note 3 - Discontinued Operations

6 Months Ended

Jun. 30, 2011

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

3. Discontinued Operations

The Company reports as discontinued operations, properties held-for-sale and operating properties sold in the current period.  The results of these discontinued operations are included in a separate component of income on the Condensed Consolidated Statements of Income under the caption Discontinued operations.  This reporting has resulted in certain reclassifications of 2010 financial statement amounts.

The components of income and expense relating to discontinued operations for the three and six months ended June 30, 2011 and 2010 are shown below. These include the results of operations through the date of each respective sale for properties sold during 2011 and 2010 and the operations for the applicable period for those assets classified as held-for-sale as of June 30, 2011 (in thousands):

		Three Months Ended June 30,				Six Months Ended June 30,
		2011		2010		2011		2010
Discontinued operations:
Revenues from rental property	$	(1,308)	$	9,055	$	2,028	$	25,071
Rental property expenses		(647)		(3,589)		(1,616)		(8,015)
Depreciation and amortization		(431)		(3,772)		(1,340)		(9,670)
Interest expense		(3)		(1,831)		(7)		(5,034)
Income from other real estate investments		240		2,173		515		2,095
Other income/(expense), net		46		(553)		188		(619)
(Loss)/income from discontinued operating properties, before income taxes		(2,103)		1,483		(232)		3,828
Loss on operating properties sold		-		(27)		-		(31)
Impairment of property carrying value		(5,438)		(2,591)		(8,153)		(3,391)
Gain on disposition of operating properties		4,025		-		4,188		-
Provision for income taxes, net		(58)		(380)		(58)		(122)
(Loss)/income from discontinued operating properties		(3,574)		(1,515)		(4,255)		284
Net income attributable to noncontrolling interests		(41)		(93)		(58)		(108)
(Loss)/income from discontinued operations attributable to the Company	$	(3,615)	$	(1,608)	$	(4,313)	$	176

During 2011, the Company classified as held-for-sale three operating properties comprising approximately 0.1 million square feet of GLA.  The book value of each of these properties aggregated approximately $2.6 million, net of accumulated depreciation of $2.4 million. The individual book value of the three properties did not exceed each of their estimated fair values less costs to sell. The Company’s determination of the fair value of the three properties, aggregating approximately $7.2 million, was based upon executed contracts of sale with third parties.  During 2011, the Company reclassified one property previously classified as held-for-sale into held-for-use.