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Note 2 - Operating Property Activities | 9 Months Ended
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Sep. 30, 2014
Business Combinations [Abstract] |
Business Combination Disclosure [Text Block] | 2. Operating Property Activities Acquisitions - During the nine months ended September 30, 2014, the Company acquired the following properties, in separate transactions (in thousands):
|  |  |  |  |  | Purchase Price |
Property Name |  | Location |  | Month Acquired |  | Cash* |  |  | Debt Assumed |  |  | Other |  |  | Total |  |  | GLA** |
North Valley Leasehold |  | Peoria, AZ |  | Jan-14 |  | $ | 3,000 |  |  | $ | - |  |  | $ | - |  |  | $ | 3,000 |  |  |  | - |
LaSalle Properties (3 properties) |  | Various (1) |  | Jan-14 |  |  | 62,239 |  |  |  | 23,269 |  |  |  | 7,642 |  |  |  | 93,150 |  |  |  | 316 |
Harrisburg Land Parcel |  | Harrisburg, PA |  | Jan-14 |  |  | 2,550 |  |  |  | - |  |  |  | - |  |  |  | 2,550 |  |  |  | - |
Crossroads Plaza |  | Cary, NC |  | Feb-14 |  |  | 18,691 |  |  |  | 72,309 |  |  |  | - |  |  |  | 91,000 |  |  |  | 489 |
Quail Corners |  | Charlotte, NC (2) |  | Mar-14 |  |  | 9,398 |  |  |  | 17,409 |  |  |  | 4,943 |  |  |  | 31,750 |  |  |  | 110 |
KIF 1 Portfolio (12 properties) |  | Various (3) |  | Apr-14 |  |  | 128,699 |  |  |  | 157,010 |  |  |  | 122,291 |  |  |  | 408,000 |  |  |  | 1,589 |
Fountain at Arbor Lakes (2 Land Parcels) |  | Maple Grove, MN |  | Apr-14 |  |  | 900 |  |  |  | - |  |  |  | - |  |  |  | 900 |  |  |  | - |
Boston Portfolio (24 properties) |  | Various |  | Apr-14 |  |  | 149,486 |  |  |  | 120,514 |  |  |  | - |  |  |  | 270,000 |  |  |  | 1,426 |
Vinnin Square |  | Swampscott, MA |  | May-14 |  |  | 2,550 |  |  |  | - |  |  |  | - |  |  |  | 2,550 |  |  |  | 6 |
SEB Portfolio (10 Properties) |  | Various (4) |  | Jul-14 |  |  | 69,261 |  |  |  | 193,600 |  |  |  | 12,911 |  |  |  | 275,772 |  |  |  | 1,415 |
Highlands Ranch Parcel |  | Highlands Ranch, CO |  | Sep-14 |  |  | 3,800 |  |  |  | - |  |  |  | - |  |  |  | 3,800 |  |  |  | 10 |
|  |  |  |  |  | $ | 450,574 |  |  | $ | 584,111 |  |  | $ | 147,787 |  |  | $ | 1,182,472 |  |  |  | 5,361 |
* Includes 1031 sales proceeds ** Gross leasable area ("GLA")
| (1) | The Company acquired three properties from a joint venture in which the Company has an 11% noncontrolling interest. The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance and as such recognized a gain of $3.7 million from the fair value adjustment associated with the Company’s original ownership due to a change in control, which is reflected in the purchase price above in Other.
| (2) | The Company acquired a 65.4% controlling ownership interest in this property and the seller retained a 34.6% noncontrolling interest in the property. The partner has the ability to put its partnership interest to the Company. As such, the Company has recorded the partners’ share of the property’s fair value of $4.9 million as Redeemable noncontrolling interests on the Company’s Condensed Consolidated Balance Sheets.
| (3) | The Company acquired from its partners the remaining ownership interest in a joint venture which holds 12 encumbered properties for which the Company had a 39.1% noncontrolling interest. The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance and as a result, recognized a gain of $65.6 million from the fair value adjustment associated with the Company’s original ownership due to a change in control, which is reflected in the purchase price above in Other. Subsequently, the Company repaid $128.4 million in debt encumbering ten of the properties. Additionally, during June 2014, the Company sold one of the properties to a third party.
| (4) | The Company acquired from its partner the remaining ownership interest in 10 properties that were held in a joint venture in which the Company has a 15% noncontrolling interest. The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance and as a result, recognized a gain of $14.4 million from the fair value adjustment associated with the Company’s original ownership due to a change in control, which is reflected in the purchase price above in Other.
The aggregate purchase price of the properties acquired during the nine months ended September 30, 2014, has been preliminarily allocated as follows (in thousands):
Land |  | $ | 335,891 |
Buildings |  |  | 561,601 |
Above Market Rents |  |  | 24,995 |
Below Market Rents |  |  | (67,101 | )
In-Place Leases |  |  | 93,617 |
Building Improvements |  |  | 239,897 |
Tenant Improvements |  |  | 21,885 |
Mortgage Fair Value Adjustment |  |  | (34,154 | )
Other Assets |  |  | 5,841 |
|  | $ | 1,182,472 |
Dispositions – During the nine months ended September 30, 2014, the Company disposed of 37 operating properties, in separate transactions, for an aggregate sales price of $458.1 million, including seven operating properties in Mexico. These transactions, which are included in Discontinued Operations on the Company’s Condensed Consolidated Statements of Income, resulted in an aggregate gain of $129.4 million, before income taxes and noncontrolling interests and aggregate impairment charges of $12.1 million, before income taxes and noncontrolling interests. Impairment Charges - During the nine months ended September 30, 2014, the Company recognized aggregate impairment charges of $45.7 million, which are included in Impairment charges under Operating expenses on the Company’s Condensed Consolidated Statements of Income. These impairment charges consist of $40.9 million related to adjustments to property carrying values and $4.8 million related to a cost method investment. The adjustments to property carrying values were recognized in connection with the Company’s efforts to market certain properties and management’s assessment as to the likelihood and timing of such potential transactions and the anticipated hold period for such properties. During the second quarter of 2014, the Company implemented a plan to accelerate its disposition of certain U.S. properties and in accordance with this strategy the Company identified approximately 150 operating properties to sell within the next 18 months. This plan effectively shortened the Company’s anticipated hold period for these properties and as a result the Company recognized impairment charges on certain consolidated operating properties. (See Footnote 12 for fair value disclosure). During the nine months ended September 30, 2013, the Company recognized aggregate impairment charges of $83.9 million, which are included in Impairment charges under Operating expenses on the Company’s Condensed Consolidated Statements of Income. These impairment charges consist of $73.9 million related to adjustments to property carrying values and $10.0 million relating to a cost method investment. The Company’s estimated fair values as it relates to property carrying values were primarily based upon estimated sales prices from third party offers based on signed contracts or letters of intent. The impairment of the cost method investment was based upon a review of the underlying cause of the decline in value, as well as the severity and duration of the decline. As a result of such review, the Company determined that the decline was deemed to be other-than-temporary. (See Footnote 12 for fair value disclosure).

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1383-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4922-128472 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4934-128472 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4926-128472 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1497-128463 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1490-128463 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=39739317&loc=d3e4845-128472 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1500-128463 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1524-128463 + Details
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