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DISCONTINUED OPERATIONS AND REAL ESTATE INVESTMENTS
 12 Months Ended
Dec. 31, 2013
DISCONTINUED OPERATIONS AND REAL ESTATE INVESTMENTS  
DISCONTINUED OPERATIONS AND REAL ESTATE INVESTMENTS

 

NOTE 4—DISCONTINUED OPERATIONS AND REAL ESTATE INVESTMENTS

        Discontinued operations include two properties sold in February 2014 that are considered as held-for-sale at December 31, 2013, as well as a total of six properties sold in 2012 and 2011.

        Real estate investments are classified as held-for-sale when management has determined that it has met the criteria established under GAAP. Real estate investments which are held for sale are not depreciated and their operations are included in a separate component of income on the consolidated statements of income under the caption Discontinued Operations.

Sales of Properties

        During 2013, the Company entered into a contract to sell two properties located in Michigan which were sold on February 3, 2014 for a total sales price of $5,177,000, net of closing costs. The net book value of the two properties was $5,177,000 (after recording an impairment charge of $61,700, representing the loss on sale of the properties) and $5,364,000 at December 31, 2013 and 2012, respectively, and is included in properties held-for-sale on the accompanying balance sheets. The impairment charge is included in discontinued operations at December 31, 2013.

        During 2012, the Company sold two properties located in Florida and leased to Office Depot, two properties located in New York and a property located in Texas. The total sales prices aggregated $36,062,000, net of closing costs, and the Company realized aggregate gains of $19,413,000 which is included in net gain on sales in discontinued operations in the results of operations for 2012.

        During 2011, the Company sold a property, leased to Office Depot and located in California, for $11,544,000, net of closing costs, and realized a gain of approximately $932,000, which is included in net gain on sales in discontinued operations in the results of operations for 2011.

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

 
   Year Ended December 31,  
 
   2013   2012   2011  

Rental income

   $ 973   $ 2,690   $ 3,377  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Depreciation and amortization

     125     402     647  

Real estate expenses

     12     106     257  

Interest expense

     259     615     773  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total expenses

     396     1,123     1,677  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income from operations

     577     1,567     1,700  

Impairment charge

    
62		    
—		    
—		  

Net gain on sales

     —     19,413     932  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Income from discontinued operations

   $ 515   $ 20,980   $ 2,632  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​