Discontinued Operations

9 Months Ended

Sep. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Dispositions

The following table summarizes the property sold during the nine months ended September 30, 2013:

Location	Property Type	Month of Disposition	Number of Buildings	Rentable Square Feet	Sales Price (in millions)
26541 Agoura Road, Calabasas, CA	Office	June	1	90,156	$	14.7

Properties Held for Sale

As of September 30, 2013, the following properties were classified as held for sale:

Location	City/Submarket	Property Type	Number of Buildings	Rentable Square Feet
San Diego Properties, San Diego, CA (1)	I-15 Corridor/Sorrento Mesa	Office	13	1,099,395
8101 Kaiser Boulevard, Anaheim, CA (2)	Anaheim	Office	1	59,790
Total properties held for sale			14	1,159,185

________________________

(1) The San Diego Properties included the following: 4910 Directors Place, 10020 Pacific Mesa Boulevard, 6055 Lusk Avenue, 5010 and 5005 Wateridge Vista Drive, 15435 and 15445 Innovation Drive, and 15051, 15073, 15231, 15253, 15333 and 15378 Avenue of Science.

(2) We closed on the disposition of this property on October 2, 2013. The sales price was $9.6 million.

The major classes of assets and liabilities of the properties held for sale as of September 30, 2013 were as follows:

Real estate assets and other assets held for sale	(in thousands)
Land and improvements	$	54,273
Buildings and improvements	236,792
Undeveloped land and construction in progress	1,441
Total real estate held for sale	292,506
Accumulated depreciation	(70,084		)
Total real estate held for sale, net	222,422
Current receivables, net	303
Deferred rent receivables, net	9,062
Deferred leasing costs and acquisition-related intangible assets, net	6,643
Prepaid expenses and other assets, net	981
Real estate and other assets held for sale, net	$	239,411
Liabilities and deferred revenue of real estate assets held for sale
Accounts payable and other liabilities	$	2,554
Deferred revenue and acquisition-related intangible liabilities, net	12,785
Rents received in advance and tenant security deposits	1,412
Liabilities and deferred revenue of real estate assets held for sale	$	16,751

Discontinued Operations

For the three and nine months ended September 30, 2013 and 2012, discontinued operations included the income of all properties sold and classified as held for sale during the nine months ended September 30, 2013. For the three and nine months ended September 30, 2012, discontinued operations also included the income of seven office buildings and our industrial portfolio that were sold in 2012. The following table summarizes the revenue and expense components that comprise Income from discontinued operations for the three and nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
	(in thousands)
Revenues:
Rental income	$	6,604		$	10,522		$	18,334		$	33,105
Tenant reimbursements	892			1,639			2,331			5,296
Other property income	4,610			229			4,617			884
Total revenues	12,106			12,390			25,282			39,285
Expenses:
Property expenses	2,020			2,044			3,920			6,287
Real estate taxes	684			1,301			2,048			3,719
Provision for bad debts	(23		)	(194		)	(23		)	(194		)
Depreciation and amortization	3,081			4,550			8,531			13,870
Total expenses	5,762			7,701			14,476			23,682
Income from discontinued operations before net gain on dispositions of discontinued operations	6,344			4,689			10,806			15,603
Net gain on dispositions of discontinued operations	—			—			423			72,809
Total income from discontinued operations	$	6,344		$	4,689		$	11,229		$	88,412