On January 15, 2015, we completed the spin-off of substantially all of our retail segment comprised of 79 strip shopping centers, three malls, a warehouse park and $225,000,000 of cash to UE (NYSE: UE) (see Note 1 – Organization).

On March 13, 2015, we sold our lease position in Geary Street, CA for $34,189,000, which resulted in a net gain of $21,376,000.

On March 31, 2015, we transferred the redeveloped Springfield Town Center, a 1,350,000 square foot mall located in Springfield, Fairfax County, Virginia, to PREIT (see Note 7 – Investments in Partially Owned Entities). The financial statement gain was $7,823,000, of which $7,192,000 was recognized in the first quarter of 2015 and the remaining $631,000 was deferred based on our ownership interest in PREIT. On March 31, 2018, we will be entitled to additional consideration of 50% of the increase in the value of Springfield Town Center, if any, over $465,000,000, calculated utilizing a 5.5% capitalization rate. In the first quarter of 2014, we recorded a non-cash impairment loss of $20,000,000 on Springfield Town Center which is included in “income from discontinued operations” on our consolidated statements of income.

During the first quarter of 2015, we sold five residual retail properties, in separate transactions, for an aggregate of $10,731,000, which resulted in net gains of $3,675,000.

We have reclassified the revenues and expenses of the properties discussed above to “income from discontinued operations” and the related assets and liabilities to “assets related to discontinued operations” and “liabilities related to discontinued operations” for all of the periods presented in the accompanying consolidated financial statements. The net gains resulting from the sale of these properties are included in “income from discontinued operations” on our consolidated statements of income. The tables below set forth the assets and liabilities related to discontinued operations at March 31, 2015 and December 31, 2014 and their combined results of operations and cash flows for the three months ended March 31, 2015 and 2014.

		Balance as of

(Amounts in thousands)		March 31,		December 31,
		2015		2014
Assets related to discontinued operations:

	Real estate, net	$	27,199	$	2,028,677
	Other assets		8,143		209,797
		$	35,342	$	2,238,474

Liabilities related to discontinued operations:

	Mortgages payable		-		1,288,535
	Other liabilities (primarily deferred revenue in 2014)		11,354		222,827
		$	11,354	$	1,511,362


		For the Three Months
(Amounts in thousands)		Ended March 31,
		2015		2014
Income from discontinued operations

	Total revenues	$	19,958	$	106,563
	Total expenses		13,373		76,025
			6,585		30,538
	Net gain on sale of lease position in Geary Street, CA		21,376		-
	Net gains on sale of real estate		10,867		-
	Transaction related costs		(22,645)		(499)
	Impairment losses		(256)		(20,842)
	Pretax income from discontinued operations		15,927		9,197
	Income tax expense		(86)		(731)
	Income from discontinued operations	$	15,841	$	8,466

Cash flows related to discontinued operations:

	Cash flows from operating activities	$	(36,672)	$	15,535
	Cash flows from investing activities		310,069		(30,397)