Discontinued Operations

9 Months Ended

Sep. 30, 2011

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations and Assets Held for Sale

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

	Held for Sale at September 30, 2011	Sold in 2011	Sold in 2010	Total
Office	3	11	11	25
Industrial	0	3	6	9
Retail	0	0	2	2
	3	14	19	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 and nine months ended September 30, 2011 and 2010, respectively (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Revenues	$	1,341		$	11,385		$	7,506		$	38,276
Operating expenses	(640		)	(4,675		)	(3,751		)	(15,226		)
Depreciation and amortization	(426		)	(3,426		)	(1,678		)	(10,877		)
Operating income	275			3,284			2,077			12,173
Interest expense	(311		)	(2,909		)	(2,107		)	(9,880		)
Income (loss) before gain on sales	(36		)	375			(30		)	2,293
Gain on sale of depreciable properties	2,088			11,527			16,405			24,383
Income from discontinued operations	$	2,052		$	11,902		$	16,375		$	26,676

The income from discontinued operations for all periods presented is entirely attributable to the common unitholders.

At September 30, 2011, 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 October 2011. The following table illustrates aggregate balance sheet information of the aforementioned three properties included in discontinued operations at September 30, 2011 (in thousands):

Real estate investment, net	$	18,466
Other assets	3,526
Total assets held-for-sale	$	21,992
Accrued expenses	$	666
Other liabilities	291
Total liabilities held-for-sale	$	957