Note 3 - Discontinued Operations

9 Months Ended

Sep. 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 nine months ended September 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 September 30, 2011 (in thousands):

		Three Months Ended September 30,				Nine Months Ended September 30,
		2011		2010		2011		2010
Discontinued operations:
Revenues from rental property	$	888	$	5,753	$	4,556	$	32,490
Rental property expenses		(412)		(2,234)		(2,565)		(10,721)
Depreciation and amortization		(154)		(2,048)		(1,800)		(12,026)
Interest expense		(50)		(1,064)		(135)		(6,191)
Income/(loss) from other real estate investments		1,430		(108)		1,944		1,983
Other (expense)/income, net		(13)		(485)		167		(921)
Income/(loss) from discontinued operating properties, before income taxes		1,689		(186)		2,167		4,614
Loss on operating properties sold		-		(4)		-		(35)
Impairment of property carrying values		(289)		(333)		(8,919)		(3,725)
Gain on disposition of operating properties		4,535		1,704		8,722		1,704
Benefit/(provision) for income taxes, net		1		(8)		(56)		(132)
Income from discontinued operating properties		5,936		1,173		1,914		2,426
Net loss/(income) attributable to noncontrolling interests		85		11		27		(97)
Income from discontinued operations attributable to the Company	$	6,021	$	1,184	$	1,941	$	2,329

During 2011, the Company classified as held-for-sale five operating properties and one land parcel comprising approximately 0.2 million square feet of GLA.  The book value of each of these properties aggregated approximately $9.9 million, net of accumulated depreciation of $6.8 million. The Company recognized impairment charges of approximately $1.1 million on the land parcel. The individual book values of the five operating properties did not exceed each of their estimated fair values less costs to sell. The Company’s determination of the fair value of these properties and land parcel, aggregating approximately $17.0 million, was based upon executed contracts of sale with third parties.  The Company completed the sale of three of these properties during the nine months ended September 30, 2011.  During 2011, the Company reclassified one property previously classified as held-for-sale into held-for-use.  The remaining properties held-for-sale aggregating approximately $6.1 million, net of accumulated depreciation of $4.4 million, are included in Other assets on the Company’s Condensed Consolidated Balance Sheets.