Discontinued Operations and Disposition of Real Estate and Real Estate Investments

12 Months Ended

Dec. 31, 2012

Discontinued Operations and Disposition of Real Estate and Real Estate Investments

12.    Discontinued Operations and Disposition of Real Estate and Real Estate Investments

Discontinued Operations

During the year ended December 31, 2012, the Company sold 29 properties (including the one asset considered held for sale at December 31, 2011) that were classified as discontinued operations for the years ended December 31, 2012, 2011 and 2010.

Included in discontinued operations for the three years ended December 31, 2012, are 120 properties (including the deconsolidated properties noted below). Of these properties, 88 were previously included in the shopping center segment, and six were previously included in the other investments segment (none remaining at December 31, 2012). In addition, included in discontinued operations are 26 other properties that were deconsolidated for accounting purposes in 2011 and 2010, which primarily represented the activity associated with the joint venture that owned the underlying real estate formally occupied by Mervyns. The operations of these properties were classified as discontinued operations for all periods presented, as the Company has no significant continuing involvement.

The operating results related to assets sold, designated as held for sale or deconsolidated as of December 31, 2012, is as follows (in thousands):

	For the Year Ended December 31,
	2012			2011			2010
Revenues	$	9,265		$	48,987		$	73,152
Operating expenses		4,186			19,735			32,488
Impairment charges		21,076			57,932			87,045
Interest, net		1,961			13,194			26,669
Debt extinguishment costs, net		—			7,191			409
Depreciation and amortization		2,305			14,404			24,323
		29,528			112,456			170,934
Loss from discontinued operations		(20,263	)		(63,469	)		(97,782	)
Gain on deconsolidation of interests		—			4,716			5,221
Gain on disposition of real estate, net of tax		3,847			40,163			5,775
Loss from discontinued operations	$	(16,416	)	$	(18,590	)	$	(86,786	)

Disposition of Real Estate and Real Estate Investments

The Company recorded net gains on disposition of real estate and real estate investments as follows (in millions):

	For the Year Ended December 31
	2012		2011			2010
Land sales(A)	$	5.6	$	(0.4	)	$	1.0
Previously deferred gains and other gains and losses on dispositions(B)		0.3		7.5			0.3
	$	5.9	$	7.1		$	1.3

(A) These dispositions did not meet the criteria for discontinued operations, as the land did not have any significant operations prior to disposition.

(B) These gains are a result of partial asset sales that did not meet the criteria for discontinued operations and assets that were contributed to joint ventures in prior years.