Mortgage and loan interest was $14.6 million for the three months ended June 30, 2011. This represents a decrease of $1.1 million, as compared to the prior period interest expense of $15.7 million. This change, by segment, is a decrease in the commercial portfolio of $0.9 million, a decrease in the apartment portfolio of $0.3 million, a decrease in the land portfolio of $0.5 million, offset by an increase in the other portfolio of $0.6 million. The decrease in the apartment portfolio is primarily due to loans refinanced in 2010 at a lower interest rate, offset by the addition of several newly developed residential properties. The commercial portfolio has also had various loans restructured with reduced interest rates. The land portfolio had several land parcels sold during the past year and have satisfied their debt obligations, thereby reducing the interest expense.
Provision for impairment was $25.4 million for the three months ended June 30, 2011. Impairment was recorded as an additional loss of $4.4 million in the commercial properties we currently hold and $21.0 million in land parcels that we currently hold. The majority of the impairment losses were taken on the properties that are treated as “subject to sales contract” where, subsequent to sale to a related party under common control, negotiations have occurred for property ownership transfers to the lender and estimated current property values are lower than our current basis.
Gain on land sales increased for the three months ended June 30, 2011 as compared to the prior period. In the current period we sold 566.81 acres of land in 15 separate transactions for an aggregate sales price of $40.1 million and recorded a loss of $1.7 million. We also recognized a deferred gain of $3.0 million in the current period from a sale in prior years. In the prior period, we sold 23.56 acres of land in two separate transactions for an aggregate sales price of $17.6 million and recorded a loss of $5.6 million.
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