With Management company expense and REIT G&A expense were down, Management company expense was down approximately $3 million to $22.5 million, and REIT G&A was down to $4.5 million compared to $7.6 million in the first quarter of last year. That was due to the first quarter of 2011 being usually high in both of those categories as there was a full years' worth of bonuses accrued in the first quarter of 2011.
Subsequent to that, bonuses are accrued throughout the year with 25% of the estimated amount booked in each quarter. That change accounts for the drop in both categories for both REIT-G&A and Management company expense.
During the quarter, we also booked an impairment loss on Valley View. Valley View has been a hands and loans service since mid-2010. On April 23rd, last week, it was sold for approximately $33 million and concurrently with the sale, the debt and all the accrued interest was forgiven. As of quarter end, because the sale price that was expected in April was less than our carrying value of $88 million we recorded a impairment write-down of $55 million in the first quarter of '12, that hits net income but not FFO.
Then in the second quarter we turned around, on April 23rd with the asset sale, we booked a gain on extinguishment of debt of $104 million. We have not included the impairment nor the gain on extinguishment of debt in our AFFO numbers. Valley View and the attached financial highlights of this morning's press release was included in discontinued operations.Looking at our balance sheet, our debt to market cap at quarter-end was 42.3%. Net debt to EBITDA was 7.6 times and our interest coverage ratio is a very healthy 2.57 times. Looking at recent loan activity, in March we closed on a $140 million loan on Pacific View. That was a non-encumbered asset. We put a 10-year fixed rate financing in place at 4.08%. Also in March, we paid off $438 million of the remaining convertibles debentures. Those debentures are now paid in full. Read the rest of this transcript for free on seekingalpha.com
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