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Real Estate Dispositions, Held for Sale and Impairment Charges | 9 Months Ended
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Sep. 30, 2016
Real Estate [Abstract] |
Real Estate Dispositions, Held for Sale and Impairment Charges | Real Estate Dispositions, Held for Sale, and Impairment Charges Real Estate Dispositions On May 16, 2016, we completed the sale of our Dayton, Ohio property for $0.2 million. There was no gain or loss recognized on this sale. We considered this office asset to be non-core to our long term strategy, and we re-deployed the proceeds to pay down outstanding debt. On August 24, 2016, we completed the sale of our property located in Rock Falls, Illinois, and our two properties located in Angola, Indiana for an aggregate of $3.0 million and recognized a loss of $0.02 million. We considered these industrial assets to be non-core to our long term strategy, and we re-deployed the proceeds to pay down outstanding debt. Per ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," our 2016 dispositions were not classified as discontinued operations because they do not represent a strategic shift in operations, nor will they have a major effect on our operations and financial results. The table below summarizes the components of operating income from the real estate and related assets disposed of during the three and nine months ended September 30, 2016, and 2015, respectively (dollars in thousands):
|  | For the three months ended September 30, |  | For the nine months ended September 30, |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Operating revenue |  | $ | 50 |  |  | $ | 132 |  |  | $ | 271 |  |  | $ | 538 |  |
Operating expense |  | 4 |  |  | 702 |  | (1) | 193 |  | (2) | 872 |  | (1)
Other expense |  | (10 | ) |  | (41 | ) |  | (69 | ) |  | (155 | ) |
Income (loss) from real estate and related assets sold |  | $ | 36 |  |  | $ | (611 | ) |  | $ | 9 |  |  | $ | (489 | ) |
(1) Includes a $0.6 million impairment charge on our Dayton, Ohio property. (2) Includes a $0.04 million impairment charge on our Dayton, Ohio property and a $0.02 million impairment charge on our Angola, IN and Rock Falls, IL properties. Real Estate Held for Sale As of September 30, 2016, we classified five properties (located in Montgomery, Alabama, Hazelwood, Missouri, Syracuse, New York, Toledo, Ohio and South Hadley, Massachusetts) as held for sale under the provisions of ASC 360-10, “Property, Plant, and Equipment.” ASC 360-10 requires that the assets and liabilities of any such properties, be presented separately in our condensed consolidated balance sheet in the current period presented, and that we cease recording depreciation and amortization expense. We consider all five of these assets to be non-core to our long term strategy. We have executed sales agreements for the Montgomery, Alabama, Hazelwood, Missouri, and Toledo, Ohio properties, and are actively looking for buyers for the Syracuse, New York and South Hadley, Massachusetts properties. We anticipate the Hazelwood, Missouri property sale will close during second quarter 2017, and we currently anticipate the remaining four properties to sell during the fourth quarter 2016. Per ASU 2014-08, our assets classified as held for sale were not classified as discontinued operations because they do not represent a strategic shift in our operations, nor will they have a major effect on our operations and financial results. The table below summarizes the components of income from real estate and related assets held for sale (dollars in thousands):
|  | For the three months ended September 30, |  | For the nine months ended September 30,
|  | 2016 |  | 2015 |  | 2016 |  | 2015
Operating revenue |  | $ | 362 |  |  | $ | 357 |  |  | $ | 1,090 |  |  | $ | 1,074 |
Operating expense |  | 1,918 |  | (1) | 151 |  |  | 2,426 |  | (2) | 484 |
Other expense |  | (108 | ) |  | (138 | ) |  | (338 | ) |  | (412 | )
(Loss) income from real estate and related assets held for sale |  | $ | (1,664 | ) |  | $ | 68 |  |  | $ | (1,674 | ) |  | $ | 178 |
(1) | Includes $1.8 million impairment charge on our five properties held for sale.
(2) | Includes $2.0 million impairment charge on our five properties held for sale.
The table below summarizes the components of the assets and liabilities held for sale reflected on the accompanying condensed consolidated balance sheet (dollars in thousands):
| September 30, 2016 |  | December 31, 2015
ASSETS HELD FOR SALE |  |  |
Real estate, at cost | $ | 15,051 |  |  | $ | 1,899 |
Less: accumulated depreciation | 3,904 |  |  | 846 |
Total real estate held for sale, net | 11,147 |  |  | 1,053 |
Lease intangibles, net | 299 |  |  | — |
Deferred rent receivable, net | 297 |  |  | — |
Other assets | 5 |  |  | 24 |
TOTAL ASSETS HELD FOR SALE | $ | 11,748 |  |  | $ | 1,077 |
LIABILITIES HELD FOR SALE |  |  |
Deferred rent liability, net | $ | 239 |  |  | $ | — |
Asset retirement obligation | 449 |  |  | 75 |
Accounts payable and accrued expenses | — |  |  | 1 |
Other liabilities | — |  |  | 792 |
TOTAL LIABILITIES HELD FOR SALE | $ | 688 |  |  | $ | 868 |
Impairment Charges We performed an evaluation and analysis on our held for sale properties and recorded impairment charges of $1.8 million and $2.0 million for the three and nine months ended September 30, 2016, and $0.6 million for both the three and nine months ended September 30, 2015, respectively. We recognized impairment charges of $0.04 million on our Dayton, Ohio property and $0.02 million on our Angola, Indiana and Rock Falls, Illinois properties, which were sold during the nine months ended September 30, 2016. We also recognized $0.2 million, $0.7 million and $1.1 million of impairment charges on our Montgomery, Alabama, Hazelwood, Missouri and South Hadley, Massachusetts properties, respectively, which are all classified as held for sale in the accompanying condensed consolidated balance sheet, during the nine months ended September 30, 2016. We recognized impairment on these assets as the hold period for these assets was shortened when they met the definition of held for sale. We recognized $0.6 million of impairment charges on our Dayton, Ohio property during the nine months ended September 30, 2015. This property was sold in May 2016. The fair values for the above properties were calculated using Level 3 inputs which were calculated using an estimated sales price, less estimated costs to sell. The estimated sales price was determined using an executed purchase and sale agreement, auction house price ranges and real estate broker guidance.

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- Definition The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -SubTopic 360 -Section S99 -Paragraph 1 -Subparagraph (SX 210.12-28) -URI http://asc.fasb.org/extlink&oid=6590653&loc=d3e638233-123024 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 11 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph c -Subparagraph Schedule III -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 10 -Subparagraph 4 -Article 9 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 6 -Subparagraph a -Article 5 + Details
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