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Discontinued Operations and Properties Held for Sale
 9 Months Ended
Sep. 30, 2012
Discontinued Operations and Properties Held for Sale  
Discontinued Operations and Properties Held for Sale

Note 7 - Discontinued Operations and Properties Held for Sale

 

During the nine months ended September 30, 2012, the Company sold to unrelated parties, a property located in Florida and leased to Office Depot and two properties located in New York. The total sales price aggregated $24,823,000, net of closing costs, and the Company realized aggregate gains of $17,254,000.

 

On October 18, 2012, the Company sold a property located in Texas for $5,000,000 and estimates that the gain will be approximately $1,650,000.  At September 30, 2012, this property had a net book value of $3,173,000, including related assets of $87,000, and is reflected as held for sale on the accompanying consolidated balance sheets and statement of operations.

 

The operations and net gain on sale of the three properties sold in the nine months ended September 30, 2012 and the operations of the property sold in October 2012 are included in discontinued operations. The net book value of the four properties, including related assets of $502,000, was $10,986,000 at December 31, 2011 and is included in properties held for sale on the accompanying consolidated balance sheet.

 

During 2011, the Company sold one property, leased to Office Depot and located in California, to an unrelated party for $11,544,000, net of closing costs, and realized a gain of $932,000. This gain and the operations of this property are included in discontinued operations.

 

The following summarizes the components of income from discontinued operations (dollars in thousands):

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

381

 

$

395

 

$

1,222

 

$

1,527

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

17

 

89

 

187

 

331

 

Real estate expenses

 

—

 

67

 

101

 

198

 

Interest expense

 

100

 

117

 

332

 

352

 

Total expenses

 

117

 

273

 

620

 

881

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

264

 

122

 

602

 

646

 

Net gain on sales

 

15,050

 

—

 

17,254

 

932

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations

 

$

15,314

 

$

122

 

$

17,856

 

$

1,578