| Schedule of Investments in Real Estate |
|
7.
|
INVESTMENTS IN REAL ESTATE AND INTANGIBLES
|
Newcastle recorded investments in real estate and related intangibles at their estimated fair value at acquisition. Expenditures for ordinary maintenance and repairs are expensed as incurred. Renovations and improvements which improve and/or extend the life of the assets are capitalized and depreciated over their estimated useful lives. Newcastle will periodically assess the carrying value of the assets to determine if facts and circumstances exist that would suggest that assets might be impaired or that the useful lives should be modified. In the event that an impairment in value occurs and Newcastle believes that the carrying amount of the assets will not be recovered, a provision will be recorded to reduce the carrying basis of the assets to their estimated fair value. The following table summarizes Newcastle’s investments in real estate:
| |
|
June 30, 2013 |
|
|
December 31, 2012 |
|
| |
|
Gross Carrying
|
|
|
Accumulated
|
|
|
Net Carrying |
|
|
Gross Carrying
|
|
|
Accumulated
|
|
|
Net Carrying |
|
| |
|
Amount
|
|
|
Depreciation
|
|
|
Value
|
|
|
Amount
|
|
|
Depreciation
|
|
|
Value
|
|
|
Senior Living
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
$ |
15,993 |
|
|
$ |
— |
|
|
$ |
15,993 |
|
|
$ |
15,993 |
|
|
$ |
— |
|
|
$ |
15,993 |
|
|
Buildings
|
|
|
144,676 |
|
|
|
(3,150 |
) |
|
|
141,526 |
|
|
|
144,676 |
|
|
|
(1,349 |
) |
|
|
143,327 |
|
|
Building improvements
|
|
|
2,841 |
|
|
|
(324 |
) |
|
|
2,517 |
|
|
|
2,433 |
|
|
|
(124 |
) |
|
|
2,309 |
|
Furniture, fixtures and equipment
|
|
|
1,537 |
|
|
|
(381 |
) |
|
|
1,156 |
|
|
|
1,257 |
|
|
|
(85 |
) |
|
|
1,172 |
|
|
Senior Living Total
|
|
$ |
165,047 |
|
|
$ |
(3,855 |
) |
|
$ |
161,192 |
|
|
$ |
164,359 |
|
|
$ |
(1,558 |
) |
|
$ |
162,801 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Commercial Real Estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land
|
|
$ |
1,106 |
|
|
$ |
— |
|
|
$ |
1,106 |
|
|
$ |
1,106 |
|
|
$ |
— |
|
|
$ |
1,106 |
|
|
Buildings
|
|
|
6,588 |
|
|
|
(1,269 |
) |
|
|
5,319 |
|
|
|
6,588 |
|
|
|
(1,181 |
) |
|
|
5,407 |
|
|
Building improvements
|
|
|
951 |
|
|
|
(690 |
) |
|
|
261 |
|
|
|
826 |
|
|
|
(667 |
) |
|
|
159 |
|
Furniture, fixtures and equipment
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other Commercial Real Estate Total
|
|
$ |
8,645 |
|
|
$ |
(1,959 |
) |
|
$ |
6,686 |
|
|
$ |
8,520 |
|
|
$ |
(1,848 |
) |
|
$ |
6,672 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investments in Real Estate
|
|
$ |
173,692 |
|
|
$ |
(5,814 |
) |
|
$ |
167,878 |
|
|
$ |
172,879 |
|
|
$ |
(3,406 |
) |
|
$ |
169,473 |
|
NEWCASTLE INVESTMENT CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
JUNE 30, 2013
(dollars in tables in thousands, except share data)
Intangibles
The following table summarizes Newcastle’s intangible assets related to its senior living real estate:
| |
|
June 30, 2013 |
|
|
December 31, 2012 |
|
| |
|
Gross Carrying
|
|
|
Accumulated
|
|
|
Net Carrying |
|
|
Gross Carrying
|
|
|
Accumulated
|
|
|
Net Carrying |
|
| |
|
Amount
|
|
|
Amortization
|
|
|
Value
|
|
|
Amount
|
|
|
Amortization
|
|
|
Value
|
|
In-place resident lease intangibles
|
|
$ |
22,711 |
|
|
$ |
(9,882 |
) |
|
$ |
12,829 |
|
|
$ |
22,711 |
|
|
$ |
(4,205 |
) |
|
$ |
18,506 |
|
|
Non-compete intangibles
|
|
|
600 |
|
|
|
(80 |
) |
|
|
520 |
|
|
|
600 |
|
|
|
(20 |
) |
|
|
580 |
|
|
Total intangibles
|
|
$ |
23,311 |
|
|
$ |
(9,962 |
) |
|
$ |
13,349 |
|
|
$ |
23,311 |
|
|
$ |
(4,225 |
) |
|
$ |
19,086 |
|
|
| Schedule of Intangibles |
The following table summarizes Newcastle’s intangible assets related to its senior living real estate:
| |
|
June 30, 2013 |
|
|
December 31, 2012 |
|
| |
|
Gross Carrying
|
|
|
Accumulated
|
|
|
Net Carrying |
|
|
Gross Carrying
|
|
|
Accumulated
|
|
|
Net Carrying |
|
| |
|
Amount
|
|
|
Amortization
|
|
|
Value
|
|
|
Amount
|
|
|
Amortization
|
|
|
Value
|
|
In-place resident lease intangibles
|
|
$ |
22,711 |
|
|
$ |
(9,882 |
) |
|
$ |
12,829 |
|
|
$ |
22,711 |
|
|
$ |
(4,205 |
) |
|
$ |
18,506 |
|
|
Non-compete intangibles
|
|
|
600 |
|
|
|
(80 |
) |
|
|
520 |
|
|
|
600 |
|
|
|
(20 |
) |
|
|
580 |
|
|
Total intangibles
|
|
$ |
23,311 |
|
|
$ |
(9,962 |
) |
|
$ |
13,349 |
|
|
$ |
23,311 |
|
|
$ |
(4,225 |
) |
|
$ |
19,086 |
|
|