Discontinued Operations and Assets Held for Sale

9 Months Ended

Sep. 30, 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 September 30, 2013	Sold in 2013	Sold in 2012	Total
Office	4	2	10	16
Industrial	1	5	17	23
Medical Office	1	3	0	4
Retail	0	1	1	2
	6	11	28	45

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 nine months ended September 30,2013 and 2012, respectively (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Revenues	$	3,912		$	9,774		$	18,419		$	32,868
Operating expenses	(1,398		)	(3,985		)	(6,993		)	(12,623		)
Depreciation and amortization	(844		)	(4,937		)	(6,686		)	(15,903		)
Operating income	1,670			852			4,740			4,342
Interest expense	(769		)	(2,822		)	(4,670		)	(9,041		)
Income (loss) before gain on sales	901			(1,970		)	70			(4,699		)
Gain on sale of depreciable properties	8,441			1,608			101,052			11,179
Income (loss) from discontinued operations	$	9,342		$	(362	)	$	101,122		$	6,480

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 and nine months ended September 30,2013 and 2012, respectively (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Loss from continuing operations attributable to common shareholders	$	(15,285	)	$	(27,874	)	$	(16,286	)	$	(99,463	)
Income (loss) from discontinued operations attributable to common shareholders	9,218			(356		)	99,756			6,361
Net income (loss) attributable to common shareholders	$	(6,067	)	$	(28,230	)	$	83,470		$	(93,102	)

Allocation of Noncontrolling Interests - Partnership

Substantially all of the income (loss) from discontinued operations for all periods presented in the Partnership's Consolidated Statements of Operations and Comprehensive Income is attributable to the common unitholders.

Properties Held for Sale

At September 30, 2013, we classified six in-service properties as held-for-sale, which were included in discontinued operations, due to our intention and ability to sell these properties in the fourth quarter of 2013. The following table illustrates aggregate balance sheet information of these properties at September 30, 2013 (in thousands):

	September 30, 2013
Real estate investment, net	$	49,821
Other assets	7,969
Total assets held-for-sale	$	57,790
Accrued expenses	$	1,536
Other liabilities	1,383
Total liabilities held-for-sale	$	2,919