Annual report pursuant to Section 13 and 15(d)

OPERATING REAL ESTATE, HELD FOR SALE

v2.4.0.6
OPERATING REAL ESTATE, HELD FOR SALE
 12 Months Ended
Dec. 31, 2011
Operating Real Estate Held For Sale  
OPERATING REAL ESTATE, HELD FOR SALE

6. OPERATING REAL ESTATE, HELD FOR SALE

Newcastle has committed to a plan, and is actively working, to sell all of its operating real estate. As a result, all of the real estate has been classified as held for sale at December 31, 2011 and 2010 and marked to the lower of cost or market value based on a discounted cash flow analysis. All of the related operations, including these losses, have been classified as discontinued operations for all periods presented.

The following table summarizes the financial information for the discontinued operations:

 

         Year Ended December 31,           
     2011      2010      2009     

Rental income

    $ 2,035       $ 2,135       $ 2,106      
  

 

 

     

 

 

     

 

 

     
     2,035         2,135         2,106      

Expenses

      1,357         1,910         1,916      
  

 

 

     

 

 

     

 

 

     
     678         225         190      

Impairment

      (433)         (260)         (550)      

Net gain on sale

      61         -           -        

Other income

      -           27         42      
  

 

 

     

 

 

     

 

 

     

Net income (loss)

    $ 306       $ (8)       $ (318)      
  

 

 

     

 

 

     

 

 

     

No income tax related to discontinued operations was recorded for the years ended December 31, 2011, 2010 or 2009.

The following table sets forth certain information regarding the operating real estate portfolio as of December 31, 2011:

 

    Type of Property

    Location    Net
Rentable
Sq. Ft.
(A) 		     Acquisition
Date 		   Year
Built/
Renovated
(A) 		   Initial Cost      Costs  Capitalized
Subsequent to
Acquisition 		     Occupancy (A)   Carrying
Value 		 
                      

Ohio Portfolio            

                       

Office Building

    Beavercreek, OH      56,797       Mar 06    1986    $     2,673       $ 390       84.0%   $ 2,662   

Office Building

    Beavercreek, OH      29,916       Mar 06    1986      2,727         132       100.0%     2,527   

Office Building

    Beavercreek, OH      45,500       Mar 06    1986      2,624         383       100.0%     2,552   
     

 

 

           

 

 

     

 

 

     

 

  

 

 

  
        132,213             $ 8,024       $     905       93.2%   $     7,741   
     

 

 

           

 

 

     

 

 

     

 

  

 

 

  

 

  (A) Unaudited.

The aggregate United States federal income tax basis for Newcastle’s operating real estate at December 31, 2011 was approximately $7.2 million. The operating real estate portfolio was pledged as collateral in one of Newcastle’s non-recourse financing structures at December 31, 2011.