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BIRMINGHAM, AL-In a filing with the Securities and Exchange Commission this morning, Colonial Properties Trust’s board of trustees announced a Q4 impairment charge of $116.9 million. In light of the charge, and in response to continued problems with the economy, the locally based REIT will step up disposal of its assets and halt future development.

The filing pointed out that the impairment charge resulted from a re-evaluation of the company’s operating strategy. The filing further went on to say that $61.4 million of the charge can be attributed to nine for-sale residential properties and condominium conversions, while $36.2 million is charged to three land parcels dedicated to future developments. The remaining $19.3 million is being charged to Colonial Pinnacle Nord du Lac, a 1 million-square-foot retail development currently under development in Covington, LA.

Impairment charges were calculated as a difference between the estimated fair value of each property, the company’s current book value and the estimated costs of completion. Following the charge’s impact, the net book value of Colonial’s completed for-sale residential and condominium conversions is $72.3 million. The mixed-use land slated for future development came with a net book value of $102.3 million.

The filing further stated that the impairment charge should not result in future cash expenditures and also suggested that “no assurances can be given that additional impairment charges will be necessary in connection with our for-sale and development activities, particularly given the uncertainties surrounding the economic outlook.” Colonial’s Q4 earnings conference call is scheduled for 1 p.m. central time this afternoon.

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