Dispositions and Held for Sale

6 Months Ended

Jun. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

The Company evaluates its disposals utilizing the guidance in ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. Based on its analysis, the Company determined that the dispositions described below do not meet the criteria for classification as discontinued operations and are not considered to be significant disposals based on its quantitative and qualitative evaluation. Thus, the results of operations of the properties described below, as well as any related gains or losses, are included in net income for all periods presented, as applicable.

2019 Dispositions

Net proceeds realized from the 2019 dispositions listed below were used to reduce the outstanding balance on the Company's credit facility. The following is a summary of the Company's 2019 dispositions:



				Sales Price
Sales Date	Property	Property Type	Location	Gross		Net		Gain
April	Honey Creek Mall ⁽¹⁾	Mall	Terre Haute, IN	$	14,600	$	14,360	$	—
April	The Shoppes at Hickory Point	Mall	Forsyth, IL	2,508		2,407		1,326
June	Courtyard by Marriott at Pearland Town Center	All Other	Pearland, TX	15,100		14,795		1,910
				$	32,208	$	31,562	$	3,236

(1) The Company recognized a loss on impairment of $2,284 in March 2019 when it adjusted the book value of the mall to the net sales price based on a signed contract with a third party buyer and recognized $(239) in April 2019 related to a true-up of closing costs. See Note 5 for additional information.

The Company also realized gains of $2,100 related to the sale of one outparcel and $433 related to land contributed in the formation of the Parkdale Self Storage, LLC joint venture (See Note 7 for additional information) during the three and six months ended June 30, 2019. Also, the Company realized losses of $(242) and $(14) related to costs incurred during the three and six months ended June 30, 2019, respectively, for outparcel sales that occurred in prior periods.

The Company recognized a gain on extinguishment of debt for the properties listed below, which represented the amount by which the outstanding debt balance exceeded the net book value of the property as of the transfer date. See Note 8 for more information. The following is a summary of these dispositions:

Sale/Transfer

Date

Balance of

Non-recourse

Debt

Gain on

Extinguishment

of Debt

Property

Property Type

Location

January

Acadiana Mall ⁽¹⁾

Mall

Lafayette, LA

119,760

61,796

January

Cary Towne Center ⁽²⁾

Mall

Cary, NC

43,716

9,926

163,476

71,722


(1)	The Company transferred title to the mall to the mortgage holder in satisfaction of the non-recourse debt secured by the property. A loss on impairment of real estate of $43,007 was recorded in 2017 to write down the book value of the mall to its then estimated fair value. The Company also recorded $305 of aggregate non-cash default interest expense during the first quarter of 2019.

(2)

The Company sold the mall for $31,500 and the net proceeds from the sale were used to satisfy a portion of the loan secured by the mall. The remaining principal balance was forgiven. The Company recorded a loss on impairment of real estate of $54,678 during 2018 to write down the book value of the mall to its then estimated fair value. The Company also recorded $237 of aggregate non-cash default interest expense during the first quarter of 2019.

In a separate transaction, the Company also sold an anchor store parcel and vacant land at Acadiana Mall, which were not collateral on the loan, for a cash price of $4,000. A loss on impairment of real estate of $1,593 was recorded in 2018 to write down the book value of the anchor store parcel and vacant land to its then estimated fair value.

2019 Held for Sale

The following properties were classified as held for sale as of June 30, 2019:



Property	Property Type	Location	Total Assets		Total Liabilities		Percentage of the Company's Total Assets
850 Greenbrier Circle ⁽¹⁾	All Other	Chesapeake, VA	$	10,233	$	35	0.2	%
Foothills Plaza - Kroger ⁽¹⁾	All Other	Maryville, TN	1,091		—		—	%
The Forum at Grandview ⁽¹⁾	All Other	Madison, MS	32,195		569		0.6	%
High Point - Barnes & Noble ⁽¹⁾	All Other	High Point, NC	1,055		59		—	%
			$	44,574	$	663

(1) The property was sold subsequent to June 30, 2019. See Note 15 for additional information.