Discontinued Operations and Assets Held for Sale

12 Months Ended

Dec. 31, 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 December 31, 2012	Sold in 2012	Sold in 2011	Sold in 2010	Total
Office	0	10	93	11	114
Industrial	0	17	7	6	30
Medical Office	2	0	0	0	2
Retail	0	1	1	2	4
	2	28	101	19	150

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 years ended December 31, 2012, 2011 and 2010, respectively (in thousands):

	2012			2011			2010
Revenues	$	8,284		$	194,166		$	248,024
Operating expenses	(3,286		)	(89,123		)	(107,412		)
Depreciation and amortization	(3,454		)	(59,453		)	(84,139		)
Operating income	1,544			45,590			56,473
Interest expense	(3,093		)	(47,356		)	(63,556		)
Loss before gain on sales	(1,549		)	(1,766		)	(7,083		)
Gain on sale of depreciable properties	13,467			100,882			33,054
Income from discontinued operations	$	11,918		$	99,116		$	25,971

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.

Allocation of Noncontrolling Interests - General Partner

The following table illustrates the General Partner's share of the income (loss) attributable to common shareholders from continuing operations and discontinued operations, reduced by the allocation of income or loss between continuing and discontinued operations to the Limited Partner Units, for the years ended December 31, 2012, 2011 and 2010, respectively (in thousands):

	2012			2011			2010
Loss from continuing operations attributable to common shareholders	$	(137,852	)	$	(65,064	)	$	(39,448	)
Income from discontinued operations attributable to common shareholders	11,707			96,480			25,340
Net income (loss) attributable to common shareholders	$	(126,145	)	$	31,416		$	(14,108	)

Allocation of Noncontrolling Interests - Partnership

The income 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.

Properties Held for Sale

At December 31, 2012, we classified two in-service properties as held-for-sale, while at December 31, 2011, we classified 13 in-service properties as held-for-sale. The following table illustrates aggregate balance sheet information of these held-for-sale properties (in thousands):

	December 31, 2012		December 31, 2011
Real estate investment, net	$	24,994	$	49,735
Other assets	5,943		5,845
Total assets held-for-sale	$	30,937	$	55,580
Accrued expenses	$	94	$	254
Other liabilities	713		721
Total liabilities held-for-sale	$	807	$	975