Discontinued Operations and Assets Held for Sale

6 Months Ended

Jun. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Assets Held for Sale

Discontinued Operations and Assets Held for Sale

The following table illustrates the number of properties in discontinued operations:

	Held for Sale at June 30, 2012	Sold in 2012	Sold in 2011	Total
Office	2	7	93	102
Industrial	1	9	7	17
Retail	0	1	1	2
	3	17	101	121

We allocate interest expense to discontinued operations and have included such interest expense in computing income from discontinued operations. Interest expense allocable to discontinued operations includes interest on any secured debt for properties included in discontinued operations and an allocable share of our consolidated unsecured interest expense for unencumbered properties. The allocation of unsecured interest expense to discontinued operations was based upon the gross book value of the unencumbered real estate assets included in discontinued operations as it related to the total gross book value of our unencumbered real estate assets.

The following table illustrates the operations of the buildings reflected in discontinued operations for the three and six months ended June 30, 2012 and 2011, respectively (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Revenues	$	664		$	48,064		$	2,660		$	100,791
Operating expenses	(389		)	(22,015		)	(1,629		)	(47,641		)
Depreciation and amortization	(222		)	(16,762		)	(1,115		)	(34,037		)
Operating income (loss)	53			9,287			(84		)	19,113
Interest expense	(302		)	(13,111		)	(995		)	(27,729		)
Loss before gain on sales	(249		)	(3,824		)	(1,079		)	(8,616		)
Gain on sale of depreciable properties	3,095			2,713			9,571			14,316
Income (loss) from discontinued operations	$	2,846		$	(1,111	)	$	8,492		$	5,700

Dividends or distributions on preferred shares or Preferred Units and adjustments for the redemption or repurchase of preferred shares or Preferred Units are allocated entirely to continuing operations for both the General Partner and the Partnership. While a portion of the income or loss attributable to noncontrolling interests is allocable to discontinued operations for the General Partner, the income (loss) from discontinued operations for all periods presented in the Partnership's Consolidated Statements of Operations and Comprehensive Income is entirely attributable to the common unitholders.

The following table illustrates the allocation of the income (loss) of the General Partner attributable to common shareholders between continuing operations and discontinued operations, reflecting the above-noted allocation of income or loss attributable to noncontrolling interests between continuing and discontinued operations, for the three and six months ended June 30, 2012 and 2011, respectively (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Income (loss) from continuing operations attributable to common shareholders	$	(31,280	)	$	(27,962	)	$	(73,201	)	$	12,976
Income (loss) from discontinued operations attributable to common shareholders	2,798			(1,080		)	8,329			5,551
Net income (loss) attributable to common shareholders	$	(28,482	)	$	(29,042	)	$	(64,872	)	$	18,527

At June 30, 2012, we classified three in-service properties as held-for-sale, which were included in discontinued operations, due to our present intention to sell the properties in the third quarter. The following table illustrates aggregate balance sheet information of the aforementioned three properties included in discontinued operations at June 30, 2012 (in thousands):

Real estate investment, net	$	10,755
Other assets	978
Total assets held-for-sale	$	11,733
Accrued expenses	$	244
Other liabilities	135
Total liabilities held-for-sale	$	379