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Discontinued Operations
 9 Months Ended
Sep. 30, 2012
Properties Held for Sale/Discontinued Operations [Abstract]  
Discontinued Operations

Note 5. Properties Held for Sale/Discontinued Operations.

The Company considers a property to be held for sale when it meets the criteria established under ASC 360, Property, Plant, and Equipment. Properties held for sale are reported at the lower of the carrying amount or fair value less estimated costs to sell and are not depreciated while they are held for sale. As of September 30, 2012, the Company has entered into an agreement with a third-party purchaser to sell one property located in the Los Angeles market for a sales price of approximately $17.2 million (net book value of approximately $11.8 million). The sale of the property is subject to the purchaser’s completion of satisfactory due diligence and various closing conditions.

The Company separately reports as discontinued operations the historical operating results attributable to properties sold or held for sale and the applicable gain or loss on the disposition of the properties. Although this application may affect the presentation of the Company’s results of operations for the periods that it has already reported, there will be no effect on its previously reported consolidated financial position, net income (loss) or cash flows.

 

The following summarizes the condensed results of operations of the property held for sale for the three and nine months ended September 30, 2012 and 2011 (dollars in thousands):

 

                                 
    For the Three Months Ended September 30,     For the Nine Months Ended September  30,  
            2012                      2011                      2012                      2011           

Rental revenues

   $ 328     $ 328     $ 982     $ 980  

Tenant expense reimbursements

     41       52       125       158  

Property operating expenses

     (52 )      (60 )      (150 )      (189 ) 

Depreciation and amortization

     —         (52 )      (104 )      (159 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Income from discontinued operations

   $ 317     $ 268     $ 853     $ 790