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DISCONTINUED OPERATIONS
 12 Months Ended
Apr. 30, 2015
DISCONTINUED OPERATIONS [Abstract]  
DISCONTINUED OPERATIONS

NOTE 12 · DISCONTINUED OPERATIONS

 

Prior to February 1, 2014, the Company reported, in discontinued operations, the results of operations and the related gains or losses of properties that had either been disposed of or classified as held for sale and otherwise met the classification of a discontinued operation. As a result of the adoption of ASU 2014-08, results of operations and gains or losses on sale for properties that are disposed or classified as held for sale in the ordinary course of business on or subsequent to February 1, 2014 would generally be included in continuing operations on the Company’s consolidated statements of operations, to the extent such disposals did not meet the criteria for classification as a discontinued operation described in Note 2.

 

During fiscal year 2016, the Company classified as held for sale and discontinued operations 48 office properties, 17 retail properties and 1 healthcare property. The Company classified no properties as discontinued operations during fiscal year 2015. During the first three quarters of fiscal year 2014, the Company disposed of two multifamily properties, three office properties, twelve industrial properties and three retail properties that were classified as discontinued operations. During the quarter ended April 30, 2014, the Company applied ASU 2014-08 to one property that was classified as held for sale and did not record any discontinued operations. During fiscal year 2013, the Company disposed of three multifamily properties, one retail property, one healthcare property and four condominium units that were classified as discontinued operations. Eight condominium units and a retail property were classified as held for sale and also classified as discontinued operations at April 30, 2012. The following information shows the effect on net income and the gains or losses from the sale of properties classified as discontinued operations for the fiscal years ended April 30, 2015, 2014 and 2013.

 

 

 

(in thousands)

 

 

 

2015

 

2014

 

2013

 

REVENUE

 

 

 

 

 

 

 

Real estate rentals

 

$

54,591

 

$

57,629

 

$

63,704

 

Tenant reimbursement

 

24,084

 

26,949

 

27,788

 

 

 

 

 

 

 

 

 

TOTAL REVENUE

 

78,675

 

84,578

 

91,492

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

Depreciation/amortization related to real estate investments

 

16,226

 

19,359

 

20,873

 

Utilities

 

7,493

 

8,423

 

7,876

 

Maintenance

 

10,861

 

12,022

 

12,307

 

Real estate taxes

 

13,906

 

14,898

 

16,235

 

Insurance

 

1,079

 

1,172

 

1,151

 

Property management expenses

 

3,795

 

3,657

 

3,810

 

Other property expenses

 

30

 

243

 

16

 

Other expenses

 

0

 

3

 

2

 

Amortization related to non-real estate investments

 

2,606

 

2,500

 

2,446

 

Impairment of real estate investments

 

1,442

 

36,726

 

305

 

 

 

 

 

 

 

 

 

TOTAL EXPENSES

 

57,438

 

99,003

 

65,021

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

21,237

 

(14,425

)

26,471

 

Interest expense

 

(18,949

)

(19,944

)

(23,425

)

Interest income

 

0

 

2

 

2

 

Other income

 

5

 

241

 

16

 

 

 

 

 

 

 

 

 

Income (loss) income from discontinued operations before gain on sale

 

2,293

 

(34,126

)

3,244

 

Gain on sale of discontinued operations

 

0

 

6,999

 

6,885

 

 

 

 

 

 

 

 

 

INCOME FROM DISCONTINUED OPERATIONS

 

2,293

 

$

(27,127

)

$

10,129

 

 

 

 

 

 

 

 

 

 

 

Segment Data

 

 

 

 

 

 

 

Multifamily

 

0

 

$

(99

)

$

3,712

 

Healthcare

 

(55

)

(68

)

3,307

 

Industrial

 

0

 

8,923

 

2,118

 

Other

 

2,348

 

(35,883

)

992

 

 

 

 

 

 

 

 

 

Total

 

2,293

 

$

(27,127

)

$

10,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

2014

 

2013

 

 

 

 

 

 

 

Property Sale Data

 

 

 

 

 

Sales price

 

$

80,883

 

$

26,273

 

Net book value and sales costs

 

(73,884

)

(19,388

)

 

 

 

 

 

 

Gain on sale of discontinued operations

 

$

6,999

 

$

6,885

 

 

 

 

 

 

 

 

 

 

The following information reconciles the carrying amounts of major classes of assets and liabilities of the discontinued operations to assets and liabilities held for sale that are presented separately on the Consolidated Balance Sheets:

 

 

 

(in thousands)

 

 

 

April 30, 2015

 

April 30, 2014

 

Carrying amounts of major classes of assets included as part of discontinued operations

 

 

 

 

 

Property owned and intangible assets, net of accumulated depreciation and amortization

 

$

417,045

 

$

425,676

 

Receivable arising from straight-lining of rents

 

10,078

 

11,087

 

Accounts receivable

 

566

 

1,752

 

Prepaid and other assets

 

699

 

691

 

Tax, insurance and other escrow

 

1,176

 

4,655

 

Property and equipment

 

0

 

7

 

Goodwill

 

193

 

0

 

Deferred charges and leasing costs

 

9,606

 

10,488

 

 

 

 

 

 

 

Total major classes of assets of the discontinued operations

 

439,363

 

454,356

 

Other assets included in the disposal group classified as held for sale

 

23,740

 

2,951

 

 

 

 

 

 

 

Total assets of the disposal group classified as held for sale on the balance sheet

 

$

463,103

 

$

457,307

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying amounts of major classes of liabilities included as part of discontinued operations

 

 

 

 

 

Accounts payable and accrued expenses

 

$

13,952

 

$

13,988

 

Mortgages payable

 

295,677

 

318,734

 

Other

 

4

 

9

 

 

 

 

 

 

 

Total major classes of liabilities of the discontinued operations

 

309,633

 

332,731

 

Other liabilities included in the disposal group classified as held for sale

 

11,760

 

0

 

 

 

 

 

 

 

Total liabilities of the disposal group classified as held for sale on the balance sheet

 

$

321,393

 

$

332,731