XML 31 R10.htm IDEA: XBRL DOCUMENT
v3.20.2

Real Estate Dispositions, Held for Sale and Impairment Charges | 6 Months Ended
--- | ---
Jun. 30, 2020
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, 2020, we continued to execute our capital recycling program, whereby we sell properties outside of our core markets and redeploy 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. On February 20, 2020, we sold one non-core property, located in Charlotte, North Carolina, which is detailed in the table below (dollars in thousands):
Square Footage Sold |  | Sales Price |  | Sales Costs |  | Loss on Sale of Real Estate, net
64,500 |  |  | $ | 4,145 |  |  | $ | 198 |  |  | $ | (12 | )
Our disposition during the six months ended June 30, 2020 was not classified as a discontinued operation because it did not represent a strategic shift in operations, nor will it have a major effect on our operations and financial results. Accordingly, the operating results of this property is 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, 2020, and 2019 (dollars in thousands):
|  | For the three months ended June 30, |  | For the six months ended June 30,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Operating revenue |  | $ | — |  |  | $ | 294 |  |  | $ | — |  |  | $ | 589 |
Operating expense |  | 1 |  |  | 77 |  |  | 32 |  |  | 147 |
Other expense, net |  | — |  | (1) | (1 | ) |  | (12 | ) | (1) | (1 | )
(Expense) income from real estate and related assets sold |  | $ | (1 | ) |  | $ | 216 |  |  | $ | (44 | ) |  | $ | 441 |
(1) | Includes a $0.01 million loss on sale of real estate, net on one property.
Real Estate Held for Sale As of June 30, 2020, we had two properties classified as held for sale, located in Maple Heights, Ohio and Boston Heights, Ohio. We consider these assets to be non-core to our long term strategy. As of June 30, 2020, our Maple Heights, Ohio property was under contract to sell, and we had an executed letter of intent for our Boston Heights, Ohio property. At December 31, 2019, we had one property classified as held for sale, located in Charlotte, North Carolina. This property was sold during the six months ended June 30, 2020. 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, 2020 |  | December 31, 2019
Assets Held for Sale |  |  |
Real estate, at cost | $ | 18,204 |  |  | $ | 7,411 |
Less: accumulated depreciation | 6,539 |  |  | 3,421 |
Total real estate held for sale, net | 11,665 |  |  | 3,990 |
Lease intangibles, net | 171 |  |  | — |
Deferred rent receivable, net | 3 |  |  | — |
Total Assets Held for Sale | $ | 11,839 |  |  | $ | 3,990 |
Liabilities Held for Sale |  |  |
Asset retirement obligation | $ | 149 |  |  | $ | 21 |
Total Liabilities Held for Sale | $ | 149 |  |  | $ | 21 |
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, 2020 and identified one held and used asset, located in Blaine, Minnesota, which was impaired by $1.7 million. In performing our impairment testing, the undiscounted cash flows for this asset were below the carrying value, so we impaired the asset and wrote it down to its fair value, which we determined using third party purchase offers. We did not recognize an impairment charge during the six months ended June 30, 2019. 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 should we be 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.

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