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| QUARTER ENDED JUNE 30, 2015 Conclusion Central to our plan is maintaining a strong balance sheet to provide flexibility, managing assets to increase value and position them for sale, continuing to focus on identifying the appropriate time to sell the remaining assets, and continuing to consider making additional special distributions. quarter call on Tuesday, DEC. 8 Central Time. Total assets $ 364,668 $ 409,691 (in thousands, except per share amounts) 3 mos. ended June 30, 2015 3 mos. ended June 30, 2014 6 mos. ended June 30, 2015 6 mos. ended June 30, 2014 Adjustments for: 3,653 2,793 7,682 6,360 and amortization1 Gain on sale of real estate2 – (11,445) (4,700) (11,445) estate sale3 FFO 4 $ 1,174 $ 532 $ 2,464 $ 1,215 25,704 25,993 25,740 26,002 shares, basic and diluted FFO per share $ 0.05 $ 0.02 $ 0.10 $ 0.05 $ (0.07) $ 0.35 $ (0.08) $ 0.24 per share Arbors Harbor Town Apartments in Memphis, Tennessee 1Includes our consolidated depreciation and amortization expense, as well as our pro rata share of those unconsolidated investments which we account for under the equity method of accounting and the noncontrolling interest adjustment for the third-party partner’s share. 2For the six months ended June 30, 2015, includes our proportionate share of the gain on sale of real estate related to the Babcock Self Storage and Alte Jakobstrasse (AJS) investments. The gain on sale of AJS is net of cumulative foreign currency translation loss of approximately $0.6 million due to the substantial liquidation of AJS. For the three and six months ended June 30, 2014, includes the gain on the sale of real estate related to the 1875 Lawrence office building. 3During the first quarter of 2015, the Company recorded a provision for income tax of approximately $2.2 million for the first six months of 2015 as a result of foreign income tax related to the sale of AJS. During the second quarter of 2015, the Company recorded a credit of $0.5 million to the provision for income tax based on a change in the estimated taxes payable on the sale of AJS. 4FFO (Funds From Operations) should not be considered as an alternative to net income (loss), or as indications of our liquidity, nor is it either indicative of funds available to fund our cash needs, including our ability to fund distributions. FFO should be reviewed in connection with other GAAP measurements. A reconciliation of FFO and FFO-per-share to net income can be found in our second quarter Form 10-Q on file with the SEC. Net income (loss) GAAP weighted average Income tax expense associated with real (519)– 1,615– Real estate depreciation Net income (loss) attributable to $(1,960) $9,184 the Company $(2,133) $6,300 Reconciliation of FFO to Net Income (Loss) Total liabilities$217,015$233,135 (in thousands, except3 mos. ended3 mos. ended6 mos. ended6 mos. ended per share amounts)June 30, 2015June 30, 2014June 30, 2015June 30, 2014 THIRD QUARTER UPDATE CALL FFO $1,174$532 $2,464 $1,215 TUESDAYPlease join us for the third December 8, 2015 at 1:00 pm Further details about this call will be included in the next quarterly statement. FFO per share$0.05$0.02 $0.10 $0.05 Distributions per share$–$– $1.00 $– (in thousands)As of As of June 30, 2015Dec. 31, 2014 Distributions declared $–$– $25,732 $– Financial Highlights II |