Discontinued Operations

9 Months Ended

Sep. 30, 2012

Discontinued Operations [Abstract]

Discontinued Operations

Discontinued Operations

Piedmont has classified the results of operations related to the following properties as discontinued operations (in thousands):

Building(s) Sold	Location	Date of Sale	Gain/(Loss) on Sale			Net Sales Proceeds
Eastpointe Corporate Center	Issaquah, Washington	July 1, 2011	$	12,152		$	31,704
5000 Corporate Court	Holtsville, New York	August 31, 2011	$	14,367		$	36,100
35 West Wacker Drive(1)	Chicago, Illinois	December 15, 2011	$	96,138		$	223,981
Portland Portfolio(2)	Beaverton, Oregon	March 19, 2012	$	17,823		$	24,832
26200 Enterprise Way	Lake Forest, California	May 31, 2012	$	10,012		$	24,411
110 & 112 Hidden Lake Circle Buildings	Duncan, South Carolina	September 21, 2012	$	(252	)	$	25,602

⁽¹⁾  Piedmont sold its approximate 96.5% ownership in the property. Transaction data above is presented at Piedmont's ownership percentage.

⁽²⁾  The Portland Portfolio consists of four office properties known as the Deschutes building, the Rhein building, the Rogue building, and the Willamette building, as well as 18.19 acres of adjoining, undeveloped land, As part of the transaction, Piedmont accepted an unsecured promissory note from the buyer for the remaining $19.0 million owed on the sale at a rate of 8.73% and a maturity date of October 31, 2012.

Income/(loss) from Discontinued Operations

The details comprising income/(loss) from discontinued operations are presented below (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012		2011
Revenues:
Rental income	$	434		$	9,234		$	2,945	$	29,941
Tenant reimbursements	73			3,790			469		14,967
Other rental income	—			(46		)	—		303
	507			12,978			3,414		45,211
Expenses:
Property operating costs	100			3,758			566		16,762
Depreciation	163			2,000			848		6,467
Amortization of deferred leasing costs	22			1,776			148		5,406
General and administrative expenses	38			(14		)	47		(157		)
	323			7,520			1,609		28,478
Other income (expense):
Interest expense	—			(1,568		)	—		(4,653		)
Interest and other income	—			16			—		1
Net income attributable to noncontrolling interest	—			(131		)	—		(366		)
	—			(1,683		)	—		(5,018		)
Operating income, excluding gain/(loss) on sale	184			3,775			1,805		11,715
Gain/(loss) on sale of real estate assets	(254		)	26,756			27,583		26,756
Income/(loss) from discontinued operations	$	(70	)	$	30,531		$	29,388	$	38,471