NOTE 3.

DISCONTINUED OPERATIONS

During the year ended December 31, 2013, the Company disposed of the following income properties:

On February 14, 2013, the Company sold its interest in the 4,128 square-foot building, located in Alpharetta, Georgia, which was leased to PNC Bank, for $3,550,000. The property was presented as assets held for sale on the consolidated balance sheet for the year ended December 31, 2012. As a result, the value was written down to reflect the contractual sales price resulting in a loss of approximately $427,000 for the year ended December 31, 2012. An additional loss of approximately $26,000 was recognized at closing in February 2013. The property’s operating results have been included in discontinued operations for each period presented.

On February 21, 2013, the Company sold its interest in the 13,824 square-foot building, located in Clermont, Florida, which was leased to CVS, for $4,050,000 generating a gain of approximately $54,000. Upon the sale in February 2013, the property’s operating results have been included in discontinued operations for each period presented.

On May 31, 2013, the Company sold its interest in the 13,905 square-foot building, located in Kissimmee, Florida, which was leased to Walgreens, for $3,400,000, generating a gain of approximately $503,000. Upon the sale in May 2013, the property’s operating results have been included in discontinued operations for each period presented.

On December 10, 2013, the Company sold its interest in the 15,120 square-foot building, located in Orlando, Florida, which was leased to Walgreens, for $3,877,373, generating a gain of approximately $487,000. Upon the sale in December 2013, the property’s operating results have been included in discontinued operations for each period presented.

On December 30, 2013, the Company sold its interest in the 4,128 square-foot building, located in Orlando, Florida, which was leased to PNC Bank, for $3,740,368, generating a gain of approximately $198,000. Upon the sale in December 2013, the property’s operating results have been included in discontinued operations for each period presented.

During the year ended December 31, 2012, the Company sold its interest in two properties for a combined gain of approximately $78,000. Upon the sales, the properties’ operating results were included in discontinued operations for each period presented.

The following is a summary of income from discontinued operations:

 

		Year ended December 31,
		2013				2012				2011
Leasing Revenue and Other Income		$	699,486			$	1,535,854			$	2,085,882
Costs and Other Expenses			(89,270	)			(211,524	)			(385,881	)
Income from Operations			610,216				1,324,330				1,700,001
Impairment Charges			—				(426,794	)			(68,454	)
Gain on Sale of Property			1,215,928				78,455				146,977
Income before Income Tax			1,826,144				975,991				1,778,524
Income Tax			(704,435	)			(376,488	)			(686,066	)
Income from Discontinued Operations		$	1,121,709			$	599,503			$	1,092,458