Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v2.4.0.6
Discontinued Operations
 12 Months Ended
Dec. 31, 2012
Discontinued Operations [Abstract]  
Discontinued Operations

7.    DISCONTINUED OPERATIONS

 

The Company’s office property located at 2200 Renaissance Boulevard in King of Prussia, Pennsylvania, aggregating 174,124 square feet, was collateral for a $16.2 million mortgage loan scheduled to mature on December 1, 2012.  The Company had recorded an impairment charge on the property of $9.5 million at December 31, 2010. On March 28, 2012, the Company transferred the deed for 2200 Renaissance Boulevard to the lender in satisfaction of its obligations.  As a result, the Company recorded a gain on the disposal of the office property of approximately $4.5 million.   

 

At March 31, 2012, the Company identified as held for sale its 47,700 square foot office building located at 95 Chestnut Ridge Road in Montvale, New Jersey.  The Company determined that the carrying amount of this property was not expected to be recovered from estimated net sales proceeds and, accordingly, recognized a valuation allowance of $0.5 million at March 31, 2012.  On July 25, 2012, the Company sold the building for approximately $4.0 million (with no gain from the sale). 

 

At March 31, 2012, the Company identified as held for sale three office buildings totaling 222,258 square feet in Moorestown, New Jersey.  The Company determined that the aggregate carrying amount of these properties was not expected to be recovered from estimated net sales proceeds and, accordingly, recognized a valuation allowance of $1.6 million at June 30, 2012.  On November 7, 2012, the Company sold the buildings for approximately $19.4 million and recognized a loss of approximately $0.1 million from the sale.

 

At December 31, 2012, the Company identified as held for sale its 248,400 square foot office building located at 19 Skyline Drive in Hawthorne, New York.  The Company determined that the carrying amount of this property was not expected to be recovered from estimated sales proceeds and accordingly recognized a valuation allowance of $7.1 million at December 31, 2012.    Also at December 31, 2012, the Company identified as held for sale its 204,057 square foot office building located at 55 Corporate Drive in Bridgewater, New Jersey.  The two properties held for sale at December 31, 2012 carried an aggregate book value of $60.9 million, net of accumulated depreciation of $16.8 million and a valuation allowance of $7.1 million.

 

The Company has presented all of the above properties as discontinued operations in its statements of operations for all periods presented. 

 

The following table summarizes income from discontinued operations and the related realized gains (losses) and unrealized losses on disposition of rental property, net, for the years ended December 31, 2012, 2011 and 2010:  (dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years Ended December 31,

 

 

 
2012 

 

 
2011 

 

 
2010 

Total revenues

 

$
12,772 

 

$
15,174 

 

$
15,992 

Operating and other expenses

 

 
(4,491)

 

 
(6,263)

 

 
(7,768)

Depreciation and amortization

 

 
(3,090)

 

 
(3,538)

 

 
(3,985)

Interest expense (net of interest income)

 

 
(428)

 

 
(1,788)

 

 
(1,397)

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations

 

 
4,763 

 

 
3,585 

 

 
2,842 

 

 

 

 

 

 

 

 

 

 

Unrealized losses on disposition of rental property

 

 
(9,213)

 

 

 -

 

 
(9,521)

Realized gains (losses) on

 

 

 

 

 

 

 

 

 

disposition of rental property, net

 

 
4,438 

 

 

 -

 

 
4,447 

 

 

 

 

 

 

 

 

 

 

Realized gains (losses) and unrealized losses on

 

 

 

 

 

 

 

 

 

disposition of rental property, net

 

 
(4,775)

 

 

 -

 

 
(5,074)

 

 

 

 

 

 

 

 

 

 

Total discontinued operations, net

 

$
(12)

 

$
3,585 

 

$
(2,232)