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Note 3 - Operating Property Activities

9 Months Ended

Sep. 30, 2019

Business Combination Disclosure [Text Block]

3. Operating Property Activities

Acquisitions of Operating Properties -

During the nine months ended September 30, 2019, the Company acquired the following operating properties, in separate transactions, through direct asset purchases (in thousands):

			Purchase Price
Property Name	Location	Month Acquired	Cash*		GLA**
Bell Camino Out-parcel	Sun City, AZ	Jan-19	$	5,678		45
Gateway at Donner Pass Out-parcel	Truckee, CA	Jan-19		13,527		40
Rancho Penasquitos Out-parcel	San Diego, CA	Jan-19		12,064		40
			$	31,269		125

* The Company utilized an aggregate $31.0 million associated with Internal Revenue Code 26 U.S.C. §1031 sales proceeds.

** Gross leasable area ("GLA")

Included in Revenues from rental properties, net on the Company’s Condensed Consolidated Statements of Income for the nine months ended September 30, 2019 is $0.9 million in revenue resulting from these acquisitions.

Purchase Price Allocations -

The purchase price for these acquisitions is allocated to real estate and related intangible assets acquired and liabilities assumed, as applicable, in accordance with our accounting policies for asset acquisitions. The purchase price allocations for properties acquired during the nine months ended September 30, 2019, are as follows (in thousands):

	Allocation as of September 30, 2019		Weighted-Average Amortization Period (in Years)
Land	$	8,266		n/a
Buildings		15,935		50.0
Building improvements		1,313		45.0
Tenant improvements		1,637		20.0
In-place leases		4,118		20.0
Net assets acquired	$	31,269

Dispositions -

The table below summarizes the Company’s disposition activity relating to consolidated operating properties and parcels (dollars in millions):

	Nine Months Ended September 30,
	2019		2018
Aggregate sales price/gross fair value	$	163.8	$	973.5
Gain on sale of properties/change in control of interests	$	47.4	$	180.5
Number of operating properties sold/deconsolidated		12		45
Number of out-parcels sold		7		4

Impairments -

During the nine months ended September 30, 2019, the Company recognized aggregate impairment charges of $41.2 million. These impairment charges consist of: (i) $29.7 million related to adjustments to property carrying values for properties which the Company has marketed for sale as part of its active capital recycling program and as such has adjusted the anticipated hold period for such properties and (ii) $11.5 million related to a development project which the Company no longer intends to develop, but now intends to market the property as is for sale. During the nine months ended September 30, 2018, the Company recognized aggregate impairment charges of $33.9 million related to adjustments to property carrying values for properties which the Company has marketed for sale as part of its active capital recycling program and as such has adjusted the anticipated hold period for such properties. The Company’s estimated fair values of these properties were primarily based upon estimated sales prices from (i) signed contracts or letters of intent from third party offers or (ii) discounted cash flow models. See Footnote 12 to the Notes to the Company’s Condensed Consolidated Financial Statements for fair value disclosure.