Quarterly report pursuant to Section 13 or 15(d)

Real Estate

v3.22.2
Real Estate
 6 Months Ended
Jun. 30, 2022
Real Estate [Abstract]  
Real Estate Real EstateInvestment properties consist of the following (in thousands, unaudited):
June 30, 2022 December 31, 2021
Land and land improvements $ 95,864  $ 96,752 
Buildings and improvements 359,106  357,606 
Investment properties at cost 454,970  454,358 
Less accumulated depreciation (71,817) (67,628)
    Investment properties, net $ 383,153  $ 386,730 

The Company’s depreciation expense on investment properties was $2.79 million and $5.58 million for the three and six months ended June 30, 2022, respectively. The Company’s depreciation expense on investment properties was $2.70 million and $5.39 million for the three and six months ended June 30, 2021, 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 June 30, 2022, assets held for sale included Harbor Pointe Associates, LLC, as the Company has committed to a plan to sell the entity, which holds an approximate 5 acre land parcel ("Harbor Pointe Land Parcel"). At December 31, 2021, assets held for sale included Walnut Hill Plaza.

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. Impairment expense was $100 thousand and $760 thousand for the three months and six months ended June 30, 2022, respectively, resulting from reducing the carrying value of Harbor Pointe Land Parcel. Impairment expense was $2.20 million and $2.20 million for the three and six months ended June 30, 2021, respectively, resulting from reducing the carrying value of Columbia Fire Station.
    
Assets held for sale and associated liabilities consisted of the following (in thousands, unaudited):
June 30, 2022
December 31, 2021
Investment properties, net $ 419  $ 1,824 
Rents and other tenant receivables, net —  18 
Deferred costs and other assets, net —  205 
Total assets held for sale $ 419  $ 2,047 

June 30, 2022
December 31, 2021
Loans payable $ —  $ 3,145 
Accounts payable, accrued expenses and other liabilities —  236 
Total liabilities associated with assets held for sale $ —  $ 3,381 

The following properties were sold during the six months ended June 30, 2022 and 2021 (in thousands, unaudited):
Disposal Date Property Contract Price Gain (loss) Net Proceeds
January 11, 2022 Walnut Hill Plaza $ 1,986  $ (15) $ 1,786 
March 25, 2021
Berkley Shopping Center and Berkley Land Parcel (0.75acres)
 4,150  176  3,937