Discontinued Operations

6 Months Ended

Jun. 30, 2015

Discontinued Operations [Abstract]

Discontinued Operations

8. Discontinued Operations

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 Geary Street, CA lease 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 “(loss) income from discontinued operations” on our consolidated statements of income.

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

We have reclassified the revenues and expenses of theproperties discussed above to “(loss) 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 “(loss) income from discontinued operations” on our consolidated statements of income. The tables below set forth the assets and liabilities related to discontinued operations at June 30, 2015 and December 31, 2014 and their combined results of operations and cash flows for thesix months ended June 30, 2015 and 2014.

(Amounts in thousands)					Balance as of
					June 30, 2015		December 31, 2014
Assets related to discontinued operations:
Real estate, net					$	27,205	$	2,028,677
Other assets						7,686		209,797
					$	34,891	$	2,238,474
Liabilities related to discontinued operations:
Mortgages payable					$	-	$	1,288,535
Other liabilities (primarily deferred revenue in 2014)						12,611		222,827
					$	12,611	$	1,511,362
(Amounts in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2015		2014		2015		2014
(Loss) income from discontinued operations:
Total revenues	$	1,573	$	96,157	$	21,531	$	202,720
Total expenses		2,020		65,879		15,393		141,904
		(447)		30,278		6,138		60,816
Transaction related costs		(327)		(3,016)		(22,972)		(3,515)
Net gain on sale of Geary Street, CA lease		-		-		21,376		-
Net gains on sale of real estate		-		-		10,867		-
Impairment losses		-		-		(256)		(20,842)
Pretax (loss) income from discontinued operations		(774)		27,262		15,153		36,459
Income tax expense		-		(319)		(86)		(1,050)
(Loss) income from discontinued operations	$	(774)	$	26,943	$	15,067	$	35,409
Cash flows related to discontinued operations:
Cash flows from operating activities					$	(35,738)	$	55,065
Cash flows from investing activities						310,069		(59,141)