Quarterly report pursuant to Section 13 or 15(d)

Real Estate (Tables)

v3.19.1
Real Estate (Tables)
 3 Months Ended
Mar. 31, 2019
Real Estate [Abstract]  
Real Estate
Real Estate
Investment properties consist of the following (in thousands):
 
March 31, 2019
 
December 31, 2018
 
(unaudited)
 
 
Land and land improvements
$
97,279

 
$
98,846

Buildings and improvements
367,786

 
374,485

Investment properties at cost
465,065

 
473,331

Less accumulated depreciation
(42,227
)
 
(40,189
)
    Investment properties, net
$
422,838

 
$
433,142


The Company’s depreciation expense on investment properties was $3.19 million and $3.17 million for the three months ended March 31, 2019 and 2018, respectively.
A significant portion of the Company’s land, buildings and improvements serves as collateral for its mortgage loans payable portfolio. Accordingly, restrictions exist as to the encumbered property’s transferability, use and other common rights typically associated with property ownership.
Assets Held for Sale

At December 31, 2018, assets held for sale included six undeveloped land parcels (the "Land Parcels"), Graystone Crossing and Jenks Plaza. Graystone Crossing and Jenks Plaza were sold during the three months ended March 31, 2019. Additionally, in 2019 the Board committed to a plan to sell Perimeter Square which is classified as assets held for sale as of March 31, 2019.

The sale of the Land Parcels represents discontinued operations as it is a strategic shift that has a major effect on the Company's financial position or results of operations. Accordingly, the assets and liabilities associated with the Land Parcels have been reclassified for all periods presented.
    
As of March 31, 2019 and December 31, 2018, assets held for sale and associated liabilities, excluding discontinued operations, consisted of the following (in thousands):
 
 
March 31, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Investment properties, net
 
$
7,475

 
$
4,912

Rents and other tenant receivables, net
 
64

 
72

Above market leases, net
 
—

 
420

Deferred costs and other assets, net
 
34

 
228

Total assets held for sale, excluding discontinued operations
$
7,573

 
$
5,632

 
 
March 31, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Loans payable
 
$
6,497

 
$
3,818

Below market leases, net
 
1

 
—

Accounts payable
 
123

 
240

Total liabilities associated with assets held for sale, excluding discontinued operations
$
6,621

 
$
4,058

As of March 31, 2019 and December 31, 2018, assets held for sale and associated liabilities for discontinued operations, consisted of the following (in thousands):
 
 
March 31, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Investment properties, net
 
$
2,858

 
$
3,350

Total assets held for sale, discontinued operations
 
$
2,858

 
$
3,350

    
 
 
March 31, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Loans payable
 
$
43

 
$
533

Accounts payable
 
20

 
41

Total liabilities associated with assets held for sale, discontinued operations
$
63

 
$
574








Dispositions
The following properties were disposed of during the three months ended March 31, 2019 and 2018:

Disposal Date
 
Property
 
Contract Price
 
Gain
 
Net Proceeds
 
 
 
 
(in thousands, unaudited)
March 18, 2019
 
Graystone Crossing
 
$
6,000

 
$
1,452

 
$
1,744

February 7, 2019
 
Harbor Pointe Land Parcel (1.28 acres)
 
550

 
—

 
19

January 11, 2019
 
Jenks Plaza
 
2,200

 
387

 
1,840

January 12, 2018
 
Chipotle Ground Lease at Conyers Crossing
 
1,270

 
1,055

 
1,160

    
The sale of the Chipotle ground lease at Conyers Crossing, Jenks Plaza and Graystone Crossing did not represent a strategic shift that has a major effect on the Company's financial position or results of operations. Accordingly, the operating results of these properties remains classified within continuing operations for all periods presented.
Schedule of investment properties
Investment properties consist of the following (in thousands):
 
March 31, 2019
 
December 31, 2018
 
(unaudited)
 
 
Land and land improvements
$
97,279

 
$
98,846

Buildings and improvements
367,786

 
374,485

Investment properties at cost
465,065

 
473,331

Less accumulated depreciation
(42,227
)
 
(40,189
)
    Investment properties, net
$
422,838

 
$
433,142

Schedule of dispositions
As of March 31, 2019 and December 31, 2018, assets held for sale and associated liabilities, excluding discontinued operations, consisted of the following (in thousands):
 
 
March 31, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Investment properties, net
 
$
7,475

 
$
4,912

Rents and other tenant receivables, net
 
64

 
72

Above market leases, net
 
—

 
420

Deferred costs and other assets, net
 
34

 
228

Total assets held for sale, excluding discontinued operations
$
7,573

 
$
5,632

 
 
March 31, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Loans payable
 
$
6,497

 
$
3,818

Below market leases, net
 
1

 
—

Accounts payable
 
123

 
240

Total liabilities associated with assets held for sale, excluding discontinued operations
$
6,621

 
$
4,058

As of March 31, 2019 and December 31, 2018, assets held for sale and associated liabilities for discontinued operations, consisted of the following (in thousands):
 
 
March 31, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Investment properties, net
 
$
2,858

 
$
3,350

Total assets held for sale, discontinued operations
 
$
2,858

 
$
3,350

    
 
 
March 31, 2019
 
December 31, 2018
 
 
(unaudited)
 
 
Loans payable
 
$
43

 
$
533

Accounts payable
 
20

 
41

Total liabilities associated with assets held for sale, discontinued operations
$
63

 
$
574