Discontinued operations

3 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued operations

On October 1, 2014, we adopted an Accounting Standards Update on the reporting of discontinued operations that raised the threshold for classification of assets “held for sale” as discontinued operations. This Accounting Standards Update is applied prospectively, and since our adoption of this Accounting Standards Update, no additional properties have met the criteria for classification as a discontinued operation in our consolidated financial statements. Prior to the adoption of this Accounting Standards Update, certain properties met the previous criteria for classification as discontinued operations and are included in the summary of income from discontinued operations below. For additional information, refer to the section titled “Recent Accounting Pronouncements” in Note 2 – “Basis of Presentation and Summary of Significant Accounting Policies” to our unaudited consolidated financial statements under Item 1 of this report.

The following is a summary of net assets “held for sale” as of March 31, 2015, and December 31, 2014, including the assets classified as “held for sale” subsequent to our adoption of the new Accounting Standards Update (in thousands):

	March 31, 2015		December 31, 2014
Properties classified as “held for sale”	$	117,203	$	173,706
Other assets	5,611		10,147
Total assets	122,814		183,853
Total liabilities	—		(6,044		)
Net assets classified as “held for sale” (1)	$	122,814	$	177,809

(1) As of March 31, 2015, net assets classified as “held for sale” was composed of the three properties that were classified as “held for sale,” including one property classified as “held for sale” and included in discontinued operations prior to the adoption of the Accounting Standards Update described above.

The following is a summary of loss from discontinued operations related to each asset that met the criteria to be classified as discontinued operations prior to the adoption of the new Accounting Standards Update on October 1, 2014, for the three months ended March 31, 2015 and 2014 (in thousands):

	Three Months Ended March 31,
	2015			2014
Total revenues	$	—		$	—
Operating expenses	(43		)	(162		)
Loss from discontinued operations (1)	$	(43	)	$	(162	)

(1) Loss from discontinued operations includes the results of operations (prior to disposition) of four properties classified as “held for sale” and included in discontinued operations prior to our adoption of the new Accounting Standards Update described above. One property is still classified as “held for sale” and included in discontinued operations as of March 31, 2015, and three properties were sold during the period from January 1, 2014, to March 31, 2015.

The following is a summary of the losses included in our income from continuing operations for the three months ended March 31, 2015 and 2014, from assets classified as “held for sale” subsequent to our adoption of the new Accounting Standards Update (in thousands):

	Three Months Ended March 31,
	2015			2014
Total revenues	$	2,330		$	2,500
Operating expenses	(766		)	(701		)
Total revenues less operating expenses from assets classified as “held for sale,” not qualifying for classification as discontinued operations	1,564			1,799
Depreciation expense	(127		)	(1,891		)
Impairment of real estate	(14,510		)	—
Loss from assets classified as “held for sale,” not qualifying as discontinued operations (1)	$	(13,073	)	$	(92	)

(1) Includes the results of operations of two properties with an aggregate 234,186 RSF that were classified as “held for sale” as of March 31, 2015, and three properties with an aggregate 196,859 RSF that were sold during the three months ended March 31, 2015, but do not qualify for classification as discontinued operations. For additional information, refer to Note 2 – “Basis of Presentation and Summary of Significant Accounting Policies” to our consolidated financial statements under Item 1 of this report.