ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS

Acquisitions

During 2014, the Company acquired the following properties through its Core Portfolio and Fund IV as follows:

Core Portfolio



(dollars in millions)
Property	GLA	Percent Owned		Type	Month of Acquisition	Purchase Price		Location
11 E Walton	6,738	100	%	Street Retail	January	$	44.0	Chicago, IL
61 Main Street	3,400	100	%	Street Retail	February	7.3		Westport, CT
865 W North Avenue	16,000	100	%	Street Retail	March	14.8		Chicago, IL
252-256 Greenwich Avenue	9,172	100	%	Street Retail	March	24.5		Greenwich, CT
152-154 Spring Street	2,936	90	%	Street Retail	April	38.0		New York, NY
2520 Flatbush Avenue	29,114	100	%	Urban Retail	May	17.1		Brooklyn, NY
Total	67,360					$	145.7

The Company expensed $1.5 million of acquisition costs for the six months ended June 30, 2014, related to the Core Portfolio.

4. ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS (continued)

Acquisitions (continued)

Fund IV



(dollars in millions)
Property	GLA	Percent Owned		Type	Month of Acquisition	Purchase Price		Location
Broughton Street Portfolio (18 Properties)	157,383	50	%	Street Retail	Various	$	26.0	Savannah, GA
Total	157,383					$	26.0

The Company expensed $2.5 million of acquisition costs for the six months ended June 30, 2014, related to Fund IV.

Purchase Price Allocations

The above acquisitions have been accounted for as business combinations. The purchase prices were allocated to the acquired assets and liabilities based on their estimated fair values at the dates of acquisition. The preliminary measurements of fair value reflected below are subject to change. The Company expects to finalize the valuations and complete the purchase price allocations within one year from the dates of acquisition.

The following table summarizes the Company's preliminary allocations of the purchase prices of assets acquired and liabilities assumed during 2014 which have yet to be finalized:



(dollars in thousands)	Preliminary Purchase Price Allocations
Land	$	44,027
Buildings and improvements	127,579
Total consideration	$	171,606

During 2013, the Company acquired properties and recorded the preliminary allocations of the purchase prices to the assets acquired based on provisional measurements of fair value. During 2014, the Company finalized the allocations of the purchase prices and made certain measurement period adjustments. The following table summarizes the preliminary allocations of the purchase prices of these properties as recorded as of December 31, 2013, and the finalized allocations as adjusted as of June 30, 2014:



(dollars in thousands)	Purchase Price Allocations as Originally Reported		Adjustments			Finalized Purchase Price Allocations
Land	$	41,700	$	8,236		$	49,936
Buildings and improvements	142,618		(20,640		)	121,978
Acquisition-related intangible assets (in Acquired lease intangibles, net)	—		15,716			15,716
Acquisition-related intangible liabilities (in Acquired lease intangibles, net)	—		(3,312		)	(3,312		)
Total consideration	$	184,318	$	—		$	184,318

4. ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS (continued)

Dispositions

During 2014, the Company disposed of the following properties:



(dollars in millions)
Dispositions	GLA	Sale Price		Gain/Loss on Sale			Month Sold	Owner
Walnut Hill ¹	297,905	$	—	$	12.4		March	Core
Sheepshead Bay	96,418	20.2		1.4			April	Fund III
City Point ²	—	26.3		0.6			June	Fund II
Other post-sale adjustments	—	—		(0.9		)
Total	394,323	$	46.5	$	13.5

Note:

(1) This property was subject to $22.9 million of non-recourse debt and was foreclosed upon by the lender during March 2014, resulting in a $12.4 million gain.

(2) Represents the sale of a portion of the residential air rights known as "Tower 2" associated with the Company's City Point development project.

Discontinued Operations

Prior to the Company's adoption of ASU 2014-08, it reported properties held for sale or sold during the periods presented as discontinued operations. The results of discontinued operations are reflected as a separate component within the accompanying Consolidated Balance Sheets and Consolidated Statements of Income for all periods presented. As of June 30, 2014, Sheepshead Bay, a Fund III asset, which was previously reported as a discontinued operation was sold. As a result of the adoption of ASU 2014-08, the sale of operating real estate is no longer considered a discontinued operation so long as it is in the normal course of business and does not reflect a separate component of business. Therefore, the Company has no current assets or liabilities of discontinued operations.

The combined assets and liabilities and the results of operations of the properties classified as discontinued operations are summarized for each period presented as follows:



(dollars in thousands)
BALANCE SHEETS	December 31, 2013
ASSETS
Net real estate	$	17,991
Rents receivable, net	565
Deferred charges, net	38
Prepaid expenses and other assets	1,840
Total assets of discontinued operations	$	20,434
LIABILITIES
Accounts payable and accrued expenses	$	1,473
Other liabilities	1,034
Total liabilities of discontinued operations	$	2,507

4. ACQUISITION OF REAL ESTATE AND DISCONTINUED OPERATIONS (continued)



	Three Months Ended						Six Months Ended
(dollars in thousands)	June 30,						June 30,
STATEMENT OF INCOME	2014			2013			2014			2013
Total revenues	$	—		$	6,033		$	—		$	12,213
Total expenses	—			4,852			—			9,408
Operating income	—			1,181			—			2,805
Gain on disposition of property	560			4,191			560			4,191
Income from discontinued operations	560			5,372			560			6,996
Income from discontinued operations attributable to noncontrolling interests	(461		)	(4,582		)	(461		)	(6,174		)
Income from discontinued operations attributable to Common Shareholders	$	99		$	790		$	99		$	822