XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Real Estate Dispositions, Held for Sale and Impairment Charges | 6 Months Ended
--- | ---
Jun. 30, 2018
Real Estate [Abstract] |
Real Estate Dispositions, Held for Sale and Impairment Charges | Real Estate Dispositions, Held for Sale and Impairment Charges Real Estate Dispositions During the six months ended June 30, 2018, we continued to execute our capital recycling program, whereby we sold non-core properties and redeployed proceeds to fund property acquisitions in our target secondary growth markets, as well as repay outstanding debt. During the six months ended June 30, 2018, we sold two non-core properties, located in Arlington, Texas and Tewksbury, Massachusetts, which are summarized in the table below (dollars in thousands):
Aggregate Square Footage Sold |  | Aggregate Sales Price |  | Aggregate Sales Costs |  | Aggregate Gain on Sale of Real Estate, net
166,200 |  |  | $ | 11,100 |  |  | $ | 327 |  |  | $ | 1,844 |
Our dispositions during the six months ended June 30, 2018 were not classified as discontinued operations because they did not represent a strategic shift in operations, nor will they have a major effect on our operations and financial results. Accordingly, the operating results of these properties are included within continuing operations for all periods reported. The table below summarizes the components of operating income from the real estate and related assets disposed of during the three and six months ended June 30, 2018, and 2017 (dollars in thousands):
|  | For the three months ended June 30, |  | For the six months ended June 30,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Operating revenue |  | $ | — |  |  | $ | 245 |  |  | $ | 93 |  |  | $ | 525 |
Operating expense |  | 12 |  |  | 174 |  |  | 161 |  |  | 316 |
Other income, net |  | — |  |  | — |  |  | 1,844 |  | (1) | — |
(Expense) income from real estate and related assets sold |  | $ | (12 | ) |  | $ | 71 |  |  | $ | 1,776 |  |  | $ | 209 |
(1) | Includes a $1.8 million gain on sale of real estate, net on two properties.
Real Estate Held for Sale At June 30, 2018, we had one property classified as held for sale, located in South Hadley, Massachusetts. We have identified a prospective buyer for this property, and we are currently negotiating a purchase and sale agreement. At December 31, 2017, we had two properties classified as held for sale, located in Arlington, Texas and Tewksbury, Massachusetts. Both of these properties were sold during the six months ended June 30, 2018. The table below summarizes the components of the assets and liabilities held for sale reflected on the accompanying condensed consolidated balance sheets (dollars in thousands):
| June 30, 2018 |  | December 31, 2017
Assets Held for Sale |  |  |
Real estate, at cost | $ | 2,287 |  |  | $ | 12,997 |
Less: accumulated depreciation | 857 |  |  | 3,970 |
Total real estate held for sale, net | 1,430 |  |  | 9,027 |
Lease intangibles, net | 6 |  |  | 9 |
Deferred rent receivable, net | — |  |  | 10 |
Total Assets Held for Sale | $ | 1,436 |  |  | $ | 9,046 |
Liabilities Held for Sale |  |  |
Asset retirement obligation | $ | 297 |  |  | $ | 114 |
Total Liabilities Held for Sale | $ | 297 |  |  | $ | 114 |
Impairment Charges We evaluated our portfolio for triggering events to determine if any of our held and used assets were impaired during the six months ended June 30, 2018 and did no t identify any held and used assets which were impaired. We classified one property as held for sale at June 30, 2018. We performed an analysis of the property classified as held for sale, and compared the fair market value of the asset less selling costs against the carrying value of assets available for sale. We did no t record an impairment charge during the three and six months ended June 30, 2018, as the fair market value was greater than the carrying value. Fair market value for this asset was calculated using Level 3 inputs (defined in Note 6 “Mortgage Notes Payable and Credit Facility”), which were determined using comparable asset sale data from the respective asset location as well as negotiations with a prospective buyer. We continue to evaluate our properties on a quarterly basis for changes that could create the need to record impairment. Future impairment losses may result, and could be significant, should market conditions deteriorate in the markets in which we hold our assets or we are unable to secure leases at terms that are favorable to us, which could impact the estimated cash flow of our properties over the period in which we plan to hold our properties. Additionally, changes in management’s decisions to either own and lease long-term or sell a particular asset will have an impact on this analysis. We recognized $4.0 million of impairment charges on two properties during the six months ended June 30, 2017. These properties were impaired through our held for sale carrying value analysis, during the three and six months ended June 30, 2017, and we concluded that the fair market value less selling costs was below the carrying value of the respective properties. We sold both of these properties during the year ended December 31, 2017.

X
- References No definition available. + Details
Name: | us-gaap_RealEstateAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 + Details
Name: | us-gaap_RealEstateDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration