Disposals and Discontinued Operations

3 Months Ended

Mar. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Disposals and Discontinued Operations

Disposals and Discontinued Operations

In the first quarter of 2014, the Company adopted ASU 2014-08, which changed the definition and criteria of property disposals classified as discontinued operations, on a prospective basis. As a result of applying this accounting guidance, the 2014 disposal listed below was not reclassified to discontinued operations as the 2013 disposals were.

2014 Disposition

In January 2014, the mortgage lender for Citadel Mall completed the foreclosure on the property. The lender received the title in satisfaction of the non-recourse debt which had a balance of $68,169. A loss on impairment of $20,453 was recorded in the second quarter of 2013 to write down the book value of this property to its then estimated fair value. In the first quarter of 2014, the Company recognized a non-cash gain on extinguishment of debt of $43,909 representing the difference between the book value of the debt extinguished over the net book value of the property as of the transfer date. See Note 6 for additional information. The results of operations of Citadel Mall, as well as the gain on extinguishment of debt and impairment loss, are included in income from continuing operations for all periods presented, as applicable.

2013 Dispositions

The results of operations of the properties described below, as well as any gains or impairment losses related to those properties, are included in discontinued operations for all periods presented, as applicable. Net proceeds from these 2013 dispositions were used to reduce the outstanding balances on the Company's credit facilities. The following is a summary of the Company's 2013 dispositions:

								Three Months Ended 3/31/13
				Sales Price				Gain/ (Loss)
Sales Date	Property	Property Type	Location	Gross		Net
2013 Activity:
August	Georgia Square & Georgia Square Plaza, Panama City Mall & The Shoppes at Panama City, RiverGate Mall and Village at RiverGate (1)	Mall & Associated Center	Athens, GA Panama City, FL Nashville, TN	$176,000		$	171,977	$	—
March	1500 Sunday Drive	Office Building	Raleigh, NC	8,300		7,862		(634		)
March	Peninsula I & II	Office Building	Newport News, VA	5,250		5,121		590
January	Lake Point & SunTrust	Office Building	Greensboro, NC	30,875		30,490		824
	Various (2)							1
				$	220,425	$	215,450	$	781

(1) Net loss on impairment of $5,234 recorded in the third quarter of 2013 to write down the book value of six properties sold in a portfolio sale to the net sales price.

(2) Reflects subsequent true-ups for settlement of estimated expenses based on actual amounts for properties disposed of in previous periods.

Total revenues of the properties described above that are included in discontinued operations were $7,909 for the three months ended March 31, 2013. The total net investment in real estate assets at the time of sale for the office buildings sold during the three months ended March 31, 2013 was $42,693. There were no outstanding mortgage loans for any of the office buildings that were sold during the three months ended March 31, 2013. Discontinued operations for the three month periods ended March 31, 2014 and 2013 also include settlements of estimated expenses based on actual amounts for properties sold during previous periods.