Drive Shack Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS IN REAL ESTATE AND INTANGIBLES

INVESTMENTS IN REAL ESTATE AND INTANGIBLES

3 Months Ended

Mar. 31, 2013

Investments In Real Estate And Intangibles

INVESTMENTS IN REAL ESTATE AND INTANGIBLES

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 we believe 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:

	March 31, 2013							December 31, 2012
	Gross Carrying Amount		Accumulated Depreciation			Net Carrying Value		Gross Carrying Amount		Accumulated Depreciation			Net Carrying Value
Senior Living
Land	$	15,993	$	—		$	15,993	$	15,993	$	—		$	15,993
Buildings		144,676		(2,254	)		142,422		144,676		(1,349	)		143,327
Building improvements		2,492		(221	)		2,271		2,433		(124	)		2,309
Furniture, fixtures and equipment		1,325		(236	)		1,089		1,257		(85	)		1,172
Senior Living Total	$	164,486	$	(2,711	)	$	161,775	$	164,359	$	(1,558	)	$	162,801

Other Commercial Real Estate
Land	$	1,106	$	—		$	1,106	$	1,106	$	—		$	1,106
Buildings		6,588		(1,225	)		5,363		6,588		(1,181	)		5,407
Building improvements		951		(680	)		271		826		(667	)		159
Furniture, fixtures and equipment		—		—			—		—		—			—
Other Commercial Real Estate Total	$	8,645	$	(1,905	)	$	6,740	$	8,520	$	(1,848	)	$	6,672

Total Investments in Real Estate	$	173,131	$	(4,616	)	$	168,515	$	172,879	$	(3,406	)	$	169,473

Intangibles

The following table summarizes Newcastle’s intangible assets related to its senior living real estate:

	March 31, 2013							December 31, 2012
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Value		Gross Carrying Amount		Accumulated Amortization			Net Carrying Value
In-place resident lease intangibles	$	22,711	$	(7,043	)	$	15,668	$	22,711	$	(4,205	)	$	18,506
Non-compete intangibles		600		(50	)		550		600		(20	)		580
Total intangibles	$	23,311	$	(7,093	)	$	16,218	$	23,311	$	(4,225	)	$	19,086

- Definition

The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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+ Details