Disposals of Operating Properties and Impairment Charges

12 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

Disposals of Operating Properties and Impairment Charges

In February 2019, the Company announced a plan to market and sell up to $500 million in non-core assets as part of a program designed to improve the Company's portfolio quality, reduce its leverage, and focus operations on markets where the Company believes it can gain scale and generate attractive risk-adjusted returns.

During the year ended December 31, 2019, we sold twenty-three operating properties for aggregate gross proceeds of $543.8 million. The following summarizes our 2019 operating property dispositions:



Property Name	MSA	Disposition Date
Whitehall Pike	Bloomington, IN	March 2019
Beechwood Promenade	Athens, GA	April 2019
Village at Bay Park	Green Bay, WI	May 2019
Lakewood Promenade	Jacksonville, FL	May 2019
Palm Coast Landing	Palm Coast, FL	May 2019
Lowe's - Perimeter Woods	Charlotte, NC	May 2019
Cannery Corner	Las Vegas, NV	June 2019
Temple Terrace	Tampa, FL	June 2019
University Town Center	Oklahoma City, OK	June 2019
Gainesville Plaza	Gainesville, FL	July 2019
Bolton Plaza	Jacksonville, FL	July 2019
Eastgate Plaza	Las Vegas, NV	July 2019
Burnt Store	Punta Gorda, FL	July 2019
Landstown Commons	Virginia Beach, VA	August 2019
Lima Marketplace	Fort Wayne, IN	September 2019
Hitchcock Plaza	Aiken, SC	September 2019
Merrimack Village Center	Manchester, NH	September 2019
Publix at Acworth	Atlanta, GA	October 2019
The Centre at Panola	Atlanta, GA	October 2019
Beacon Hill	Crown Point, IN	October 2019
Bell Oaks Centre	Evansville, IN	November 2019
South Elgin Commons	Chicago, IL	December 2019
Boulevard Crossing	Kokomo, IN	December 2019

The Company recorded a net gain of $39.0 million as a result of the 2019 disposal activity.

During 2019, in connection with the preparation and review of the financial statements for the applicable periods, we evaluated a total of seven operating properties for impairment and recorded a cumulative $37.7 million impairment charge due to changes in facts and circumstances underlying the Company's expected future hold period of these properties. A shortening of the expected future hold period is considered an impairment indicator under applicable accounting rules, and this indicator caused us to further evaluate the carrying value of these properties. We concluded the estimated undiscounted cash flows over the expected

holding period did not exceed the carrying value of these assets given the new holding period, leading to the charge. We estimated the fair value using the market approach by utilizing recent sales offers without adjustment. We compared the estimate aggregate fair value of $176 million to the carrying values, which resulted in the recording of the non-cash impairment charge of $37.7 million for the year ended December 31, 2019.

During the year ended December 31, 2018, we sold six operating properties for aggregate gross proceeds of $122.2 million. The following summarizes our 2018 operating property dispositions:



Property Name	MSA	Disposition Date
Trussville Promenade	Birmingham, AL	February 2018
Memorial Commons	Goldsboro, NC	March 2018
Lake Lofts at Deerwood	Jacksonville, FL	November 2018
Hamilton Crossing	Knoxville, TN	November 2018
Fox Lake Crossing	Chicago, IL	December 2018
Lowe's Plaza	Las Vegas, NV	December 2018

In addition, we entered into a joint venture with TH Real Estate by selling an 80% interest in three operating assets for an agreed upon value of $99.8 million. The properties sold to the joint venture were the following:



Property Name	MSA	Disposition Date
Livingston Shopping Center	New York/Northern New Jersey	June 2018
Plaza Volente	Austin, TX	June 2018
Tamiami Crossing	Naples, FL	June 2018

The Company recorded a net gain of $3.4 million as a result of the 2018 disposal activity.

During 2018, in connection with the preparation and review of the financial statements for the applicable periods, we evaluated a total of seven operating properties and land previously held for development for impairment and recorded a cumulative $70.4 million impairment charge due to changes in facts and circumstances underlying the Company's expected future hold period of these properties and decision to not move forward with development of the land. A shortening of an expected future hold period is considered an impairment indicator under applicable accounting rules, and this indicator caused us to further evaluate the carrying value of these properties. We concluded the estimated undiscounted cash flows over the expected holding period did not exceed the carrying value of these assets given the new holding period, leading to the charge. We estimated the fair value using the market approach by utilizing recent sales offers without adjustment. We compared the estimated aggregate fair value of $130.2 million to the carrying values, which resulted in the recording of the non-cash impairment charges totaling $70.4 million for the year ended December 31, 2018.

As of December 31, 2018, the Company classified its Whitehall Pike operating property as held for sale. This asset was sold in March 2019.

During the year ended December 31, 2017, we sold four operating properties for aggregate gross proceeds of $76.1 million and a net gain of $15.2 million. The following summarizes our 2017 operating property dispositions.



Property Name	MSA	Disposition Date
Cove Center	Stuart, FL	March 2017
Clay Marketplace	Birmingham, AL	June 2017
The Shops at Village Walk	Fort Myers, FL	June 2017
Wheatland Towne Crossing	Dallas, TX	June 2017

In connection with the preparation and review of the financial statements for the three months ended March 31, 2017, we evaluated an operating property for impairment including shortening of the intended holding period. We concluded the estimated undiscounted cash flows over the expected holding period did not exceed the carrying value of the asset. The Company estimated the fair value of the property to be $26.0 million using Level 3 inputs within the fair value hierarchy, primarily using the market

approach. We compared the fair value measurement to the carrying value, which resulted in the recording of a non-cash impairment charge of $7.4 million. This property was sold during 2017.

The results of all the operating properties sold in 2019, 2018, and 2017 are not included in discontinued operations in the accompanying statements of operations as none of the operating properties individually, nor in the aggregate, represent a strategic shift that has had or will have a material effect on our operations or financial results.