Discontinued Operations and Assets Held for Sale

3 Months Ended

Mar. 31, 2013

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 March 31, 2013	Sold in 2013	Sold in 2012	Total
Office	0	1	10	11
Industrial	1	3	17	21
Medical Office	0	2	0	2
Retail	1	0	1	2
	2	6	28	36

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 months ended March 31, 2013 and 2012, respectively (in thousands):

	Three Months Ended March 31,
	2013			2012
Revenues	$	5,019		$	7,973
Operating expenses	(1,687		)	(3,221		)
Depreciation and amortization	(2,665		)	(4,166		)
Operating income	667			586
Interest expense	(1,366		)	(2,312		)
Loss before gain on sales	(699		)	(1,726		)
Gain on sale of depreciable properties	8,954			6,476
Income from discontinued operations	$	8,255		$	4,750

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 three months ended March 31, 2013 and 2012, respectively (in thousands):

	Three Months Ended March 31,
	2013		2012
Income (loss) from continuing operations attributable to common shareholders	$	19,902	$	(41,037	)
Income from discontinued operations attributable to common shareholders	8,141		4,647
Net income (loss) attributable to common shareholders	$	28,043	$	(36,390	)

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 March 31, 2013, we classified two in-service properties as held-for-sale, which were included in discontinued operations, due to our intention and ability to sell the properties in the second quarter of 2013. The following table illustrates aggregate balance sheet information of these properties included in discontinued operations at March 31, 2013 (in thousands):

	March 31, 2013
Real estate investment, net	$	94,260
Other assets	11,245
Total assets held-for-sale	$	105,505
Accrued expenses	$	537
Other liabilities	1,436
Total liabilities held-for-sale	$	1,973