DISPOSALS AND DISCONTINUED OPERATIONS

In the first quarter of 2014, the Company adopted ASU 2014-08, which changed the definition and criteria of property disposals classified as discontinued operations, on a prospective basis. As a result of applying this accounting guidance, the 2014 disposals listed below were not reclassified to discontinued operations as the 2013 and 2012 disposals were.

2014 Dispositions

The results of operations of the Properties described below, as well as any gain on extinguishment of debt and impairment losses related to those Properties, are included in income from continuing operations for all periods presented, as applicable. Net proceeds from these 2014 dispositions were used to reduce the outstanding balances on the Company's credit facilities, unless otherwise noted.

The following is a summary of the Company's 2014 dispositions by sale:



				Sales Price				Gain
Sales Date	Property	Property Type	Location	Gross		Net		Gain
2014 Activity:
September	Pemberton Plaza ⁽¹⁾	Community Center	Vicksburg, MS	$	1,975	$	1,886	$	—
June	Foothills Plaza Expansion	Associated Center	Maryville, TN	2,640		2,387		937
May	Lakeshore Mall⁽²⁾	Mall	Sebring, FL	14,000		13,613		—
				$	18,615	$	17,886	$	937


(1)	The Company recognized a loss on impairment of real estate of $497 in the third quarter of 2014 when it adjusted the book value of Pemberton Plaza to its net sales price.

(2)

The gross sales price of $14,000 consisted of a $10,000 promissory note and $4,000 in cash. The note receivable was paid off in the third quarter of 2014. The Company recognized a loss on impairment of real estate of $5,100 in the first quarter of 2014 when it adjusted the book value of Lakeshore Mall to its estimated fair value of $13,780 based on a binding purchase agreement signed in April 2014. The sale closed in May 2014 and the Company recognized an impairment loss of $106 in the second quarter of 2014 as a result of additional closing costs.

The Company recognized a gain on extinguishment of debt for each of the Properties listed below, representing the amount by which the outstanding debt balance exceeded the net book value of the Property as of the transfer date. See Note 6 for additional information. The following is a summary of the Company's other 2014 dispositions:

Balance of

Non-recourse Debt

Gain on Extinguishment of Debt

Disposal Date

Property

Property Type

Location

2014 Activity:

October

Columbia Place⁽¹⁾

Mall

Columbia, SC

27,265

27,171

September

Chapel Hill Mall ⁽²⁾

Mall

Akron, OH

68,563

18,296

January

Citadel Mall ⁽³⁾

Mall

Charleston, SC

68,169

43,932

163,997

89,399


(1)	The Company conveyed the Mall to the lender by a deed-in-lieu of foreclosure. A non-cash impairment loss of $50,683 was recorded in 2011 to write down the book value of the Mall to its then estimated fair value. The Company also recorded $3,181 of non-cash default interest expense.


(2)	The Company conveyed the Mall to the lender by a deed-in-lieu of foreclosure. A non-cash impairment loss of $12,050 was recorded in 2014 to write down the book value of the Mall to its then estimated fair value. The Company also recorded $1,514 of non-cash default interest expense.


(3)	The mortgage lender completed the foreclosure process and received the title to the Mall in satisfaction of the non-recourse debt. A non-cash impairment loss of $20,453 was recorded in 2013 to write down the book value of the Mall to its then estimated fair value.

2013 Dispositions

The results of operations of the Properties described below, as well as any gains or impairment losses related to those Properties, are included in discontinued operations for all periods presented, as applicable. Net proceeds from these sales were used to reduce the outstanding balances on the Company's credit facilities. The following is a summary of the Company's 2013 dispositions:



				Sales Price				Gain/ (Loss)
Sales Date	Property	Property Type	Location	Gross		Net		Gain/ (Loss)
2013 Activity:
August	Georgia Square, Georgia Square Plaza, Panama City Mall, The Shoppes at Panama City, RiverGate Mall, Village at RiverGate ⁽¹⁾	Mall & Associated Center	Athens, GA Panama City, FL Nashville, TN	$	176,000	$	171,977	$	(19	)
March	1500 Sunday Drive	Office Building	Raleigh, NC	8,300		7,862		(549		)
March	Peninsula I & II	Office Building	Newport News, VA	5,250		5,121		598
January	Lake Point & SunTrust	Office Building	Greensboro, NC	30,875		30,490		823
December 2008⁽²⁾	706 & 708 Green Valley Road	Office Building	Greensboro, NC					281
	Various ⁽³⁾							10
				$	220,425	$	215,450	$	1,144


(1)	A loss on impairment of $5,234 was recorded in the third quarter of 2013 to write down the book value of these six Properties sold in a portfolio sale to the net sales price. Subsequent to December 31, 2013, the Company recognized an additional impairment of $681 on one of these sold Properties.


(2)	Recognition of gain that was deferred in December 2008 upon repayment of the notes receivable for a portion of the sales price.


(3)	Reflects subsequent true-ups for settlement of estimated expenses based on actual amounts for sales that occurred in prior periods.

2012 Dispositions



				Sales Price				Gain/ (Loss)
Sales Date	Property	Property Type	Location	Gross		Net		Gain/ (Loss)
2012 Activity:
December	Willowbrook Plaza⁽¹⁾	Community Center	Houston, TX	$	24,450	$	24,171	$	—
October	Towne Mall ⁽²⁾	Mall	Franklin, OH	950		892		(3		)
October	Hickory Hollow Mall ⁽³⁾	Mall	Antioch, TN	1,000		966		(6		)
July	Massard Crossing	Community Center	Fort Smith, AR	7,803		7,432		98
March	Settlers Ridge - Phase II ⁽⁴⁾	Community Center	Robinson Township, PA	19,144		18,951		883
January	Oak Hollow Square ⁽⁵⁾	Community Center	High Point, NC	14,247		13,796		(1		)
	Various ⁽⁶⁾							(33		)
				$	67,594	$	66,208	$	938


(1)	A loss on impairment of $17,743 was recorded in the third quarter of 2012 to write down the book value of this Property to its then estimated fair value.


(2)	A loss on impairment of $419 was recorded in the third quarter of 2012 to write down the book value of this Property to its expected sales price.


(3)	A loss on impairment of $8,047 was recorded in the third quarter of 2012 to write down the book value of this Property to its expected sales price.


(4)	A loss on impairment of $4,457 was recorded in the second quarter of 2011 to write down the book value of this Property to its then estimated fair value.


(5)	A loss on impairment of $255 was recorded in the first quarter of 2012 related to the true-up of certain estimated amounts to actual amounts. Additionally, the Company wrote down the depreciated book value of this Property to the estimated sales price and recorded a loss on impairment of $729 in the fourth quarter of 2011.


(6)	Reflects subsequent true-ups for settlement of estimated expenses based on actual amounts for sales that occurred in prior periods.

Total revenues of the Properties described above that are included in discontinued operations were $15,468 and $43,911 in 2013 and 2012, respectively. The total net investment in real estate assets at the time of sale for the Properties sold during 2013 and 2012 was $219,833 and $51,184, respectively. There were no outstanding loans on any of the Properties sold during 2013 and 2012. Discontinued operations for the years ended December 31, 2014, 2013 and 2012 also include settlements of estimated expense based on actual amounts for Properties sold during previous years.