Quarterly report pursuant to Section 13 or 15(d)

Real Estate

v3.20.1
Real Estate
3 Months Ended
Mar. 31, 2020
Real Estate [Abstract]  
Real Estate
Real Estate

Investment properties consist of the following (in thousands):
 
March 31, 2020
 
December 31, 2019
 
(unaudited)
 
 
Land and land improvements
$
98,957

 
$
100,599

Buildings and improvements
360,620

 
366,082

Investment properties at cost
459,577

 
466,681

Less accumulated depreciation
(52,762
)
 
(50,466
)
    Investment properties, net
$
406,815

 
$
416,215



The Company’s depreciation expense on investment properties was $2.94 million and $3.19 million for the three months ended March 31, 2020 and 2019, 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

At March 31, 2020 and December 2019 assets held for sale included Columbia Fire Station and St. Matthews, respectively as the Board committed to a plan to sell each property.

The Company recorded an impairment charge on assets held for sale of $600 thousand for the three months ended March 31, 2020 resulting from reducing the carrying value of Columbia Fire Station 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 charges were recorded for the three months ended March, 31, 2019.

As of March 31, 2020 and December 31, 2019, assets held for sale and associated liabilities consisted of the following (in thousands):
 
 
March 31, 2020
 
December 31, 2019
 
 
(unaudited)
 
 
Investment properties, net
 
$
6,189

 
$
1,651

Rents and other tenant receivables, net
 
9

 
77

Deferred costs and other assets, net
 
60

 
9

Total assets held for sale
$
6,258

 
$
1,737

 
 
March 31, 2020
 
December 31, 2019
 
 
(unaudited)
 
 
Loans payable
 
$
4,004

 
$
1,974

Accounts payable, accrued expenses and other liabilities
 
45

 
52

Total liabilities associated with assets held for sale
$
4,049

 
$
2,026










The following properties were sold during the three months ended March 31, 2020 and 2019:
Disposal Date
 
Property
 
Contract Price
 
Gain (loss)
 
Net Proceeds
 
 
 
 
(in thousands, unaudited)
January 21, 2020
 
St. Matthews
 
$
1,775

 
$
(26
)
 
$
1,665

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


    
The Harbor Pointe land parcel sale represents discontinued operations as it was a strategic shift that had a major effect on the Company's financial position or results of operations.
    
The sale of Jenks Plaza, Graystone Crossing and St. Matthews 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.