XML 35 R12.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Real Estate Dispositions, Held for Sale, and Impairment Charges | 12 Months Ended
--- | ---
Dec. 31, 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 year ended December 31, 2018, we continued to execute our capital recycling program, whereby we sold properties outside of our core markets and redeployed proceeds to either fund property acquisitions in our target secondary growth markets, or repay outstanding debt. We expect to continue to execute our capital recycling plan and sell non-core properties as reasonable disposition opportunities become available. During the year ended December 31, 2018, we sold three non-core properties, located in Arlington, Texas, Tewksbury, Massachusetts, and South Hadley, Massachusetts, respectively, and applied the proceeds towards outstanding debt and property acquisitions, which is 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
316,200 |  |  | $ | 13,400 |  |  | $ | 565 |  |  | $ | 2,763 |
Our 2018 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. Accordingly, the 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 years ended December 31, 2018, 2017, and 2016, respectively (dollars in thousands):
|  | For the year ended December 31, |
|  | 2018 |  | 2017 |  | 2016 |
Operating revenue |  | $ | 383 |  |  | $ | 1,160 |  |  | $ | 1,403 |  |
Operating expense |  | 311 |  |  | 3,705 |  | (2) | 1,849 |  | (3)
Other income, net |  | 2,763 |  | (1) | — |  |  | (158 | ) |
(Expense) income from real estate and related assets sold |  | $ | 2,835 |  |  | $ | (2,545 | ) |  | $ | (604 | ) |
(1) Includes $2.8 million gain on sale of real estate, net. (2) Includes $2.8 million impairment charge. (3) Includes $1.1 million impairment charge. Real Estate Held for Sale At December 31, 2018, we had one property classified as held for sale, located in Maitland, Florida. We considered the asset to be non-core to our long term strategy. This property was under contract to sell as of December 31, 2018. 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 year ended December 31, 2018. Our asset classified as held for sale at December 31, 2018 was not classified as discontinued operation because it does not represent a strategic shift in our operations, nor it 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 at December 31, 2018 (dollars in thousands):
|  | For the year ended December 31,
|  | 2018 |  | 2017 |  | 2016
Operating revenue |  | $ | 1,007 |  |  | $ | 416 |  |  | $ | — |
Operating expense |  | 1,004 |  |  | 471 |  |  | — |
Other income, net |  | (334 | ) |  | (142 | ) |  | — |
(Loss) income from real estate and related assets held for sale |  | $ | (331 | ) |  | $ | (197 | ) |  | $ | — |
The table below summarizes the components of the assets and liabilities held for sale reflected on the accompanying consolidated balance sheet (dollars in thousands):
|  | December 31, 2018 |  | December 31, 2017
Assets Held for Sale |  |  |  |
Real estate, at cost |  | $ | 3,173 |  |  | $ | 12,997 |
Less: accumulated depreciation |  | 218 |  |  | 3,970 |
Total real estate held for sale, net |  | 2,955 |  |  | 9,027 |
Lease intangibles, net |  | 1,105 |  |  | 9 |
Deferred rent receivable, net |  | 91 |  |  | 10 |
Total Assets Held for Sale |  | $ | 4,151 |  |  | $ | 9,046 |
Liabilities Held for Sale |  |  |  |
Asset retirement obligation |  | $ | — |  |  | $ | 114 |
Total Liabilities Held for Sale |  | $ | — |  |  | $ | 114 |
Impairment Charges We evaluated our portfolio for triggering events to determine if any of our held and used assets were impaired during the year ended December 31, 2018 and did no t identify any held and used assets which were impaired during 2018. We classified one property as held for sale at December 31, 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 the asset available for sale. We did no t record an impairment charge during the year ended December 31, 2018, as the fair market value less selling costs was greater than the carrying value. Fair market value for this asset was calculated using Level 3 inputs (defined in Note 7 “Mortgage Notes Payable and Credit Facility”), which were determined using a negotiated sales price from an executed purchase and sale agreement with a third party. 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 $6.8 million of impairment charges on three properties during the year ended December 31, 2017. These properties were impaired through our held for sale carrying value analysis during the year ended December 31, 2017, and we concluded that the fair market value less selling costs was below the carrying value of the respective properties. We sold two of these properties during the year ended December 31, 2017, and one of these properties during the year ended December 31, 2018. We recognized $2.0 million of impairment charges on seven properties during the year ended December 31, 2016. Five of these properties were sold during the year ended December 31, 2016, one property was classified as held for sale on our consolidated balance sheet at December 31, 2016, and one property was classified as held and used at December 31, 2016. We recorded the held and used asset at fair market value, as the fair market value was less than the carrying value of assets available for sale. 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 executed purchase and sale agreements.

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 970 -URI http://asc.fasb.org/topic&trid=2156125 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 978 -URI http://asc.fasb.org/topic&trid=2134977 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 976 -URI http://asc.fasb.org/topic&trid=2134846 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 974 -URI http://asc.fasb.org/topic&trid=2156429 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 972 -URI http://asc.fasb.org/topic&trid=2134617 + Details
Name: | us-gaap_RealEstateDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration