Quarterly report pursuant to Section 13 or 15(d)

Real Estate

v3.21.1
Real Estate
3 Months Ended
Mar. 31, 2021
Real Estate [Abstract]  
Real Estate Real Estate
Investment properties consist of the following (in thousands):
March 31, 2021 December 31, 2020
  (unaudited)  
Land and land improvements $ 96,758  $ 97,117 
Buildings and improvements 353,264  354,738 
Investment properties at cost 450,022  451,855 
Less accumulated depreciation (61,253) (59,191)
    Investment properties, net $ 388,769  $ 392,664 

The Company’s depreciation expense on investment properties was $2.69 million and $2.94 million for the three months ended March 31, 2021 and 2020, respectively.

A significant portion of the Company’s land, buildings and improvements serve as collateral for its mortgage loans. Accordingly, restrictions exist as to the encumbered property’s transferability, use and other common rights typically associated with property ownership.

Assets Held for Sale and Dispositions

At March 31, 2021, assets held for sale included Columbia Fire Station, Surrey Plaza and two outparcels at Rivergate Shopping Center, as the Company has committed to a plan to sell each property. At December 31, 2020, assets held for sale included Columbia Fire Station, Berkley Shopping Center, a .75 acre land parcel at Berkley (the "Berkley Land Parcel") and two outparcels at Rivergate Shopping Center.

Impairment expenses on assets held for sale are a result of reducing the carrying value for the amount that exceeded the property's fair value less estimated selling costs. The valuation assumptions are based on the three-level valuation hierarchy for fair value measurement and represent Level 2 inputs. No impairment expenses were recorded for the three months ended March 31, 2021. The Company recorded $600 thousand impairment expense for the three months ended March 31, 2020 resulting from reducing the carrying value of Columbia Fire Station.
    
As of March 31, 2021 and December 31, 2020, assets held for sale and associated liabilities consisted of the following (in thousands):
March 31, 2021 December 31, 2020
(unaudited)
Investment properties, net $ 10,547  $ 12,593 
Rents and other tenant receivables, net 32  132 
Above market leases, net 153  153 
Deferred costs and other assets, net 127  194 
Total assets held for sale $ 10,859  $ 13,072 
March 31, 2021 December 31, 2020
(unaudited)
Loans payable $ 10,745  $ 12,838 
Below market leases, net —  25 
Accounts payable, accrued expenses and other liabilities 194  261 
Total liabilities associated with assets held for sale $ 10,939  $ 13,124 

The following properties were sold during the three months ended March 31, 2021 and 2020:
Disposal Date Property Contract Price Gain (loss) Net Proceeds
(in thousands, unaudited)
March 25, 2021 Berkley Shopping Center and Berkley Land Parcel (0.75 acres) $ 4,150  $ 176  $ 3,937 
January 21, 2020 St. Matthews 1,775  (26) 1,665