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Note 2 - Operating Property Activities
 3 Months Ended
Mar. 31, 2015
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]

2. Operating Property Activities


Acquisitions -


During the three months ended March 31, 2015, the Company acquired the following properties, in separate transactions (in thousands):


                   

Purchase Price

 

Property Name

 

Location

   

Month

Acquired

   

Cash*

   

Debt Assumed

   

Other

   

Total

   

GLA**

 

Elmont Plaza

 

Elmont, NY (1)

   

Jan-15

    $ 2,400     $ -     $ 3,358     $ 5,758       13  

Garden State Pavilion Parcel

 

Cherry Hill, NJ

   

Jan-15

      16,300       -       -       16,300       111  

Kimstone Portfolio (39 properties)

 

Various (2)

   

Feb-15

      513,513       637,976       236,011       1,387,500       5,631  

Copperfield Village

 

Houston, TX

   

Feb-15

      18,700       20,800       -       39,500       165  

Snowden Square Parcel

 

Columbia, MD

   

Mar-15

      4,868       -       -       4,868       25  

Dulles Town Crossing Parcel

 

Sterling, VA

   

Mar-15

      4,830       -       -       4,830       9  

Flagler Park S.C.

 

Miami, FL

   

Mar-15

      1,875       -       -       1,875       5  
                    $ 562,486     $ 658,776     $ 239,369     $ 1,460,631       5,959  

* Includes 1031 sales proceeds of $31.7 million


** Gross leasable area ("GLA")


  (1)

The Company acquired from its partner the remaining ownership interest in a property that was held in a joint venture in which the Company had a 50.0% noncontrolling interest. The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance and as a result, recognized a loss on change in control of interest of $0.2 million resulting from the fair value adjustment associated with the Company’s previously held equity interest, which is reflected in the purchase price above in Other.

  (2) The Company acquired from its partner the remaining ownership interest in 39 properties that were held in a joint venture in which the Company had a 33.3% noncontrolling interest. The Company evaluated this transaction pursuant to the FASB’s Consolidation guidance and as a result, recognized a gain on change in control of interest of $140.0 million resulting from the fair value adjustment associated with the Company’s previously held equity interest, which is reflected in the purchase price above in Other.

The purchase price for these acquisitions has been preliminarily allocated to real estate and related intangible assets acquired and liabilities assumed, as applicable, in accordance with our accounting policies for business combinations. The purchase price allocations and related accounting will be finalized after the Company’s valuation studies are complete. The aggregate purchase price of the properties acquired during the three months ended March 31, 2015, has been preliminarily allocated as follows (in thousands): 


Land

  $ 395,363  

Buildings

    830,647  

Above Market Rents

    31,620  

Below Market Rents

    (65,711 )

In-Place Leases

    147,483  

Building Improvements

    118,563  

Tenant Improvements

    21,602  

Mortgage Fair Value Adjustment

    (21,573 )

Other Assets

    2,637  
    $ 1,460,631  

Dispositions –


During the three months ended March 31, 2015, the Company disposed of 39 operating properties and three land parcels, in separate transactions, for an aggregate sales price of $96.5 million. These transactions resulted in an aggregate gain of $32.1 million, and aggregate impairment charges of $0.6 million.


During the three months ended March 31, 2015, the Company classified as held-for-sale five operating properties. The aggregate book value of these properties was $7.6 million, net of accumulated depreciation of $0.4 million, which is included in Other assets on the Company’s Condensed Consolidated Balance Sheets.  The book value of these properties did not exceed their estimated fair value, less costs to sell, and as such no impairment charges were recognized. The Company’s determination of the fair value of these properties was based upon executed contracts of sale with third parties.


Upon the adoption of ASU 2014-08 on January 1, 2015, operations of properties held for sale and operating properties sold during the current period that were not previously classified as held for sale and/or reported as discontinued operations are reported in income from continuing operations as they do not represent a strategic shift that has or will have a major effect on our operations and financial results. Prior to the adoption of ASU 2014-08, the Company reported the operations and financial results of properties held for sale and operating properties sold as Discontinued operations in the Company’s Condensed Consolidated Statements of Income.


Impairment Charges -


During the three months ended March 31, 2015, the Company recognized aggregate impairment charges of $6.4 million which are included in Impairment charges under Operating expenses on the Company’s Condensed Consolidated Statements of Income. These impairment charges consist of (i) $0.5 million related to the sale of certain operating properties, as discussed above, and (ii) $5.9 million related to an adjustment to the carrying value of one property which the Company has decided to market for sale as part of its active capital recycling program and as such has adjusted the anticipated hold period for such property. The Company’s estimated fair value on this property was determined based upon an estimated sales price. (See Footnote 11 for fair value disclosure).