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Real Estate Dispositions, Held for Sale and Impairment Charges | 9 Months Ended
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Sep. 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 nine months ended September 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. During the nine months ended September 30, 2020, we sold two non-core properties, located in Charlotte, North Carolina and Maple Heights, Ohio, which are detailed in the table below (dollars in thousands):
Aggregate Square Footage Sold |  | Sales Price |  | Sales Costs |  |  |  | Gain on Sale of Real Estate, net
411,948 |  |  | $ | 15,501 |  |  | $ | 1,138 |  |  |  |  | $ | 1,184 |
Our dispositions during the nine months ended September 30, 2020 were not classified as discontinued operations because they did not represent a strategic shift in operations, nor will such dispositions 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 nine months ended September 30, 2020, and 2019 (dollars in thousands):
|  | For the three months ended September 30, |  | For the nine months ended September 30,
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Operating revenue |  | $ | — |  |  | $ | 167 |  |  | $ | 400 |  |  | $ | 1,136 |
Operating expense |  | 83 |  |  | 296 |  |  | 438 |  |  | 838 |
Other income (expense), net |  | 1,368 |  | (1) | (50) |  |  | 1,272 |  | (2) | (191) |
Income (expense) from real estate and related assets sold |  | $ | 1,285 |  |  | $ | (179) |  |  | $ | 1,234 |  |  | $ | 107 |
(1)Includes $1.2 million gain on sale of real estate, net on one property sale. (2)Includes $1.2 million gain on sale of real estate, net on two property sales. Real Estate Held for Sale As of September 30, 2020, we had five properties classified as held for sale, one located in Boston Heights, Ohio, three located in Champaign, Illinois, and one located in Austin, Texas. We consider these assets to be non-core to our long term strategy. As of September 30, 2020, all five properties were under contract to sell. At December 31, 2019, we had one property classified as held for sale, located in Charlotte, North Carolina. This property was sold during the nine months ended September 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):
| September 30, 2020 |  | December 31, 2019
Assets Held for Sale |  |  |
Real estate, at cost | $ | 24,688 |  |  | $ | 7,411 |
Less: accumulated depreciation | 7,433 |  |  | 3,421 |
Total real estate held for sale, net | 17,255 |  |  | 3,990 |
Lease intangibles, net | 462 |  |  | — |
Deferred rent receivable, net | 456 |  |  | — |
Total Assets Held for Sale | $ | 18,173 |  |  | $ | 3,990 |
Liabilities Held for Sale |  |  |
Deferred rent liability, net | $ | 1,108 |  |  | $ | — |
Asset retirement obligation | — |  |  | 21 |
Total Liabilities Held for Sale | $ | 1,108 |  |  | $ | 21 |
Impairment Charges We evaluated our portfolio for triggering events to determine if any of our held and used assets were impaired during the nine months ended September 30, 2020 and identified three held and used assets, located in Blaine, Minnesota, Champaign, Illinois, and Rancho Cordova, California, which were impaired by an aggregate of $2.9 million. In performing our impairment testing, the undiscounted cash flows for these assets were below the carrying value. As the undiscounted cash flows for these assets were below the carrying value, we evaluated the fair value of the assets using third-party broker opinions of value and internal discount cash flow analyses, which resulted in us recognizing an impairment charge. We recorded an impairment charge to our Blaine, Minnesota property by $1.7 million during the three months ended June 30, 2020, and we recorded an impairment charge to our Champaign, Illinois property by $1.0 million and an impairment charge to our Rancho Cordova, California property by $0.2 million during the three months ended September 30, 2020. We did not recognize an impairment charge during the nine months ended September 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.

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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://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
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