We know that until we see a full recovery in our real estate markets, earnings from our development and sales activity will be relatively modest. We do however expect to create shareholder value throughout the cycle, by our investments in Hawaii and the other strategic initiatives I just mentioned and we will highlight our progress on these initiatives in our earnings calls.
There were two primary separation related impacts reflected in this quarters financial results. First, most of the costs to affect the separation were incurred in the second quarter, about $4.4 million. Second, as a result of our strategic decision to focus our future development activity, almost exclusively at Hawaii, we evaluated the three development projects we have on the mainland, and recorded a non-cash write down at two of those projects. The write downs amounted to $9.8 million, leaving the two projects with a book basis of $12.9 million. The third project has a book basis of about $4.7 million.
Excluding the net of tax effects of these charges, A&B's net income for the second quarter was $5.5 million or $0.13 a share. Notwithstanding our focus on separation and the resulted impact on second quarter financial results, our operations performed well in the quarter. Performance in our leasing and agribusiness segments were steady, and we achieved a number of positive milestones in our operating businesses, which Chris will highlight in his remarks.
An important part of the investment thesis for A&B, is that Hawaii is at a positive inflexion point in the economic cycle.Tourism which of course is the state's primary economic driver, continues to perform at an extraordinary level. Through June 2012, total visitor expenditures were up 21%, compared to last year. Visitor arrivals were also up for the same period by 10%, with increased arrivals from all major markets. Results so far this year put tourism on track to set the stage all time high for expenditures and arrivals.Read the rest of this transcript for free on seekingalpha.com
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