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DISCONTINUED OPERATIONS
 3 Months Ended
Mar. 31, 2015
DISCONTINUED OPERATIONS  
DISCONTINUED OPERATIONS

NOTE 8. DISCONTINUED OPERATIONS

 

We apply the provisions of ASC Topic 360, “Property, Plant and Equipment”. ASC Topic 360 requires that long-lived assets that are to be disposed of by sale be measured at the lesser of (1) book value or (2) fair value less cost to sell.  In addition, it requires that one accounting model be used for long-lived assets to be disposed of by sale and broadens the presentation of discontinued operations to include more disposal transactions.

 

Discontinued operations relates to properties that were either sold or held for sale as of the period ended March 31, 2015.   Included in discontinued operations are a total of zero and four properties for 2015 and 2014, respectively. Properties sold in 2015 have been reclassified to discontinued operations for current and prior year reporting periods, if any.  There were no sales of income-producing properties in the first quarter of 2015.  In 2014, we sold two apartment complexes (Blue Ridge and Pecan Pointe), and two commercial properties (1010 Common and Sesame Square).  The gain on sale of the properties is also included in discontinued operations for those years.  The following table summarizes revenue and expense information for the properties sold and held for sale (dollars in thousands):

 

 

 

For the Three Months Ended

March 31,

 

 

 

2015

 

 

2014

 

Revenues:

 

 

 

 

 

 

     Rental and other property revenues

 

$

15

 

 

$

2,571

 

 

 

 

15

 

 

 

2,571

 

Expenses:

 

 

 

 

 

 

 

 

     Property operating expenses

 

 

(374

)

 

 

1,317

 

     Depreciation

 

 

-

 

 

 

330

 

     General and administrative

 

 

95

 

 

 

174

 

          Total operating expenses

 

 

(279

)

 

 

1,821

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

     Other income

 

 

-

 

 

 

42

 

     Mortgage and loan interest

 

 

(1

)

 

 

(664

)

     Deferred borrowing costs amortization

 

 

-

 

 

 

(282

)

     Litigation settlement

 

 

-

 

 

 

(45

)

          Total other expenses

 

 

(1

)

 

 

(949

)

 

 

 

 

 

 

 

 

 

Gain (loss) from discontinued operations before gain on sale of real estate and tax

 

 

293

 

 

 

(199

)

     Gain on sale of real estate from discontinued operations

 

 

-

 

 

 

6,053

 

     Income tax expense

 

 

(103

)

 

 

(2,049

)

Income from discontinued operations

 

$

190

 

 

$

3,805

 

Our application of ASC Topic 360 results in the presentation of the net operating results of these qualifying properties sold or held for sale during 2015 as income from discontinued operations.  This does not have an impact on net income available to common shareholders and only impacts the presentation of these properties within the Consolidated Statements of Operations.