Annual report pursuant to Section 13 and 15(d)

Discontinued Operations

v3.10.0.1
Discontinued Operations
 12 Months Ended
Dec. 31, 2018
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
Discontinued Operations
The consolidated statements of operations reflect reclassifications of revenue, property operating expenses, corporate general and administrative expenses and interest expense from continuing operations to income from discontinued operations for all periods presented. All interest expense disclosed below is directly related to the debt incurred to acquire the Freestanding Properties.

The net income from discontinued operations for the twelve months ended December 31, 2018, 2017 and 2016, consists of the 2018 gain on disposal of Laskin Road, the 2017 gain on disposal and related operating activity of Ruby Tuesday’s and Outback Steakhouse at Pierpont Centre and the 2016 gain on disposal and related operating activity of Starbucks/Verizon.    



The following is a summary of the income from discontinued operations for the years ended December 31, 2018, 2017 and 2016 (in thousands):

 
 
 
 
 
 
Years Ended December 31,
 
 
 
 
 
 
2018
 
2017
 
2016
Revenues
 
 
 
 
 
$
—

 
$
26

 
$
284

Expenses
 
 
 
 
 
—

 
1

 
79

Impairment of land
 
3,938

 
—

 
—

Operating (loss) income
 
 
 
 
 
(3,938
)
 
25

 
205

Interest expense
 
 
 
 
 
—

 
9

 
69

(Loss) income from discontinued operations before gain on disposals
 
(3,938
)
 
16

 
136

Gain on disposal of properties
 
 
 
 
 
903

 
1,502

 
688

(Loss) income from discontinued operations
 
$
(3,035
)
 
$
1,518

 
$
824


The $3.94 million impairment of land is based on the carrying value of the properties exceeding the fair value, less estimated selling costs based on recent real estate sales transactions for undeveloped land within the surrounding markets. These valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 3 inputs.