On December 19, 2019, the Company announced that its Board had determined to sell the Company’s entire Suburban Office Portfolio totaling approximately 6.6 million square feet.  As the decision to sell the Suburban Office Portfolio represented a strategic shift in the Company’s operations, these properties’ results (other than a property not qualified to be classified as held for sale) are being classified as discontinued operations for all periods presented herein.

In late 2019 and through June 30, 2021, the Company completed the sale of 34 of these suburban office properties, totaling 5.8 million square feet, for net sales proceeds of $989 million.  As of June 30, 2021, the Company has identified as held for sale the remaining two office properties (comprised of two disposal groups) in the Suburban Office Portfolio, totaling 0.5 million square feet (both of which the Company currently has under contract for sale for aggregate gross sales proceeds of approximately $54.3 million). In July 2021, the

Company completed the sale of one of the properties held for sale, which was a 237,000 square foot office property, for a gross sales price of $29 million. The net proceeds were used to repay the outstanding balance of 2021 Term Loan of $27 million.

The Company plans to complete the sale of substantially all of its remaining Suburban Office Portfolio properties during the remainder of 2021, and to use the available sales proceeds to pay down its corporate-level indebtedness. However, the Company cannot predict whether or to what extent the timing of these sales and the expected amount may be impacted by the ongoing coronavirus (“COVID-19”). After the completion of the Suburban Office Portfolio sales, the Company’s holdings will consist primarily of its Jersey City and Hoboken, New Jersey waterfront class A office portfolio and its multi-family rental portfolio, and related development projects and land holdings.

As a result of recent sales contracts in place and after considering the current market conditions as a result of the challenging economic climate with the current worldwide COVID-19 pandemic, the Company determined that the carrying value of both of the remaining held for sale properties was not expected to be recovered from estimated net sales proceeds, and accordingly recognized an unrealized held for sale loss allowance of $1.0 million and $2.1 million, respectively, during the three and six months ended June 30, 2021.

The following table summarizes income from discontinued operations and the related realized gains (losses) and unrealized losses on disposition of rental property and impairments, net, for the six months ended June 30, 2021 and 2020 (dollars in thousands):

(a)Represents valuation allowances, including reversals, and impairment charges on properties classified as discontinued operations in 2020.

(b)See Note 3: Real Estate Transactions – Dispositions for further information regarding properties sold and related gains (losses).

On December 19, 2019, the Company announced that its Board had determined to sell the Company’s entire Suburban Office Portfolio totaling approximately 6.6 million square feet.  As the decision to sell the Suburban Office Portfolio represented a strategic shift in the Company’s operations, these properties’ results (other than a property not qualified to be classified as held for sale) are being classified as discontinued operations for all periods presented herein.

In late 2019 and through June 30, 2021, the Company completed the sale of 34 of these suburban office properties, totaling 5.8 million square feet, for net sales proceeds of $989 million.  As of June 30, 2021, the Company has identified as held for sale the remaining two office properties (comprised of two disposal groups) in the Suburban Office Portfolio, totaling 0.5 million square feet (both of which the Company currently has under contract for sale for aggregate gross sales proceeds of approximately $54.3 million). In July 2021, the

Company completed the sale of one of the properties held for sale, which was a 237,000 square foot office property, for a gross sales price of $29 million. The net proceeds were used to repay the outstanding balance of 2021 Term Loan of $27 million.

The Company plans to complete the sale of substantially all of its remaining Suburban Office Portfolio properties during the remainder of 2021, and to use the available sales proceeds to pay down its corporate-level indebtedness. However, the Company cannot predict whether or to what extent the timing of these sales and the expected amount may be impacted by the ongoing coronavirus (“COVID-19”). After the completion of the Suburban Office Portfolio sales, the Company’s holdings will consist primarily of its Jersey City and Hoboken, New Jersey waterfront class A office portfolio and its multi-family rental portfolio, and related development projects and land holdings.

As a result of recent sales contracts in place and after considering the current market conditions as a result of the challenging economic climate with the current worldwide COVID-19 pandemic, the Company determined that the carrying value of both of the remaining held for sale properties was not expected to be recovered from estimated net sales proceeds, and accordingly recognized an unrealized held for sale loss allowance of $1.0 million and $2.1 million, respectively, during the three and six months ended June 30, 2021.

The following table summarizes income from discontinued operations and the related realized gains (losses) and unrealized losses on disposition of rental property and impairments, net, for the six months ended June 30, 2021 and 2020 (dollars in thousands):

(a)Represents valuation allowances, including reversals, and impairment charges on properties classified as discontinued operations in 2020.

(b)See Note 3: Real Estate Transactions – Dispositions for further information regarding properties sold and related gains (losses).