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Real Estate Dispositions, Held for Sale, and Impairment Charges | 12 Months Ended
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Dec. 31, 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 year ended December 31, 2020, 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, 2020, we sold six non-core properties, located in Charlotte, North Carolina, Maple Heights, Ohio, Champaign, Illinois, and Austin, Texas, which are summarized in the table below (dollars in thousands):
Aggregate Square Footage Sold |  | Sales Price |  | Sales Costs |  |  |  | Gain on Sale of Real Estate, net
551,743 |  |  | $ | 37,532 |  |  | $ | 1,698 |  |  |  |  | $ | 8,096 |
Our 2020 dispositions 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 years ended December 31, 2020, 2019, and 2018, respectively (dollars in thousands):
|  | For the year ended December 31,
|  | 2020 |  | 2019 |  | 2018
Operating revenue |  | $ | 2,703 |  |  | $ | 3,176 |  |  | $ | 3,919 |
Operating expense |  | 1,534 |  |  | 3,697 |  |  | 1,609 |
Other income (expense), net |  | 8,181 |  | (1) | (54) |  |  | (586) |
Income (expense) from real estate and related assets sold |  | $ | 9,350 |  |  | $ | (575) |  |  | $ | 1,724 |
(1)Includes an $8.1 million gain on sale of real estate, net. Real Estate Held for Sale At December 31, 2020, we had three properties classified as held for sale, located in Boston Heights, Ohio, Rancho Cordova, California, and Champaign, Illinois. We considered these assets to be non-core to our long term strategy. At December 31, 2019, we had one property classified as held for sale, located in Charlotte, North Carolina. This property was sold during the year ended December 31, 2020. Our assets classified as held for sale at December 31, 2020 were not classified as discontinued operations because it does not represent a strategic shift in our operations, and it does not have a major effect on our financial results. The table below summarizes the components of income from real estate and related assets held for sale at December 31, 2020 (dollars in thousands):
|  | For the year ended December 31,
|  | 2020 |  | 2019 |  | 2018
Operating revenue |  | $ | 1,861 |  |  | $ | 1,769 |  |  | $ | 1,288 |
Operating expense |  | 2,938 |  | (1) | 985 |  |  | 792 |
Other expense, net |  | (388) |  |  | (364) |  |  | (394) |
(Loss) income from real estate and related assets held for sale |  | $ | (1,465) |  |  | $ | 420 |  |  | $ | 102 |
(1) Includes a $1.9 million impairment charge. 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, 2020 |  | December 31, 2019
Assets Held for Sale |  |  |  |
Total real estate held for sale |  | $ | 8,114 |  |  | $ | 3,990 |
Lease intangibles, net |  | 384 |  |  | — |
Total Assets Held for Sale |  | $ | 8,498 |  |  | $ | 3,990 |
Liabilities Held for Sale |  |  |  |
Asset retirement obligation |  | $ | — |  |  | $ | 21 |
Total Liabilities Held for Sale |  | $ | — |  |  | $ | 21 |
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, 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 $3.6 million during the year ended December 31, 2020 when we determined the carrying value of these assets was unrecoverable based on an undiscounted cash flow analysis. As a result, we recorded an impairment charge to reflect the fair market value of these assets. The Rancho Cordova, California property was further impaired when we classified the property as held for sale as of December 31, 2020 to record the carrying value equal to the fair value less costs of sale and recorded an impairment charge to our Rancho Cordova, California asset of $0.7 million, which is reflected in aggregate impairment charge of $3.6 million during the year ended December 31, 2020. We classified one property as held for sale at December 31, 2019. 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. As a result of this analysis, we recorded an impairment charge of $1.8 million during the year ended December 31, 2019, as the fair market value minus selling costs was less 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 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. 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.

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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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