Discontinued Operations Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Dispositions

The following table summarizes the properties sold during the nine months ended September 30, 2012.

Location	Property Type	Month of Disposition	Number of Buildings	Rentable Square Feet	Sales Price (in millions)
15004 Innovation Drive and 10243 Genetic Center Drive, San Diego, CA (1)	Office	January	2	253,676	$	146.1

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(1) Properties were classified as held-for-sale on the consolidated balance sheets as of December 31, 2011.

Properties Held For Sale

As of September 30, 2012, the following properties were classified as held for sale:

Location	City/Submarket	Property Type	Number of Buildings	Rentable Square Feet
Industrial Portfolio (1)	Various	Industrial	39	3,413,354
5151, 5153 & 5155 Camino Ruiz	Camarillo	Office	4	265,372
4175 E. La Palma Avenue	Anaheim	Office	1	43,263
Total Properties Held For Sale			44	3,721,989

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(1) Includes all industrial properties owned by the Company at September 30, 2012.

The major classes of assets and liabilities of the properties held for sale as of September 30, 2012 were as follows:

Real estate assets and other assets held for sale	(in thousands)
Land and improvements	$	57,553
Buildings and improvements	206,488
Total real estate held for sale	264,041
Accumulated depreciation	(109,404		)
Total real estate held for sale, net	154,637
Current receivables, net	176
Deferred rent receivables, net	6,637
Deferred leasing costs and acquisition-related intangible assets, net	3,053
Prepaid expenses and other assets	1,516
Real estate assets and other assets held for sale, net	$	166,019
Liabilities and deferred revenue of real estate assets held for sale
Accounts payable, accrued expenses and other liabilities	$	2,044
Deferred revenue and acquisition-related intangible liabilities, net	371
Rents received in advance and tenant security deposits	2,040
Liabilities and deferred revenue of real estate assets held for sale	$	4,455

Discontinued Operations

For the three and nine months ended September 30, 2012 and 2011, discontinued operations included the income of all properties sold and classified as held for sale during the nine months ended September 30, 2012. For the three and nine months ended September 30, 2011, discontinued operations also included the income of two office buildings and one industrial building that were sold in 2011. The following table summarizes the income and expense components that comprise discontinued operations for the three and nine months ended September 30, 2012 and 2011:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(in thousands)
Revenues:
Rental income	$	5,945		$	10,046		$	18,476		$	29,608
Tenant reimbursements	995			1,352			3,216			4,289
Other property income	142			9			220			727
Total revenues	7,082			11,407			21,912			34,624
Expenses:
Property expenses	1,189			1,262			3,912			5,575
Real estate taxes	735			1,037			2,249			3,030
Provision for bad debts	(194		)	(149		)	(194		)	(124		)
Depreciation and amortization	2,165			2,976			6,818			8,841
Interest expense (1)	—			1,155			—			3,484
Total expenses	3,895			6,281			12,785			20,806
Income from discontinued operations before net gain on dispositions of discontinued operations	3,187			5,126			9,127			13,818
Net gain on dispositions of discontinued operations	—			12,555			72,809			12,555
Total income from discontinued operations	$	3,187		$	17,681		$	81,936		$	26,373

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(1) Interest expense relates to a $70.0 million mortgage loan that was secured by thirteen of our industrial properties. The mortgage loan was repaid in October 2011 prior to maturity.

The following table summarizes the total income from discontinued operations within the consolidated statements of operations by segment for the three and nine months ended September 30, 2012 and 2011:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2012			2011		2012		2011
	(in thousands)
Office Properties	$	(470	)	$	14,413	$	72,572	$	18,746
Industrial Properties	3,657			3,268		9,364		7,627
Total income from discontinued operations	$	3,187		$	17,681	$	81,936	$	26,373