Assets Held for Sale and Discontinued Operations

9 Months Ended

Sep. 30, 2011

Assets Held for Sale and Discontinued Operations [Abstract]

Assets Held for Sale and Discontinued Operations

7. Assets Held for Sale and Discontinued Operations

Assets Held for Sale

As of September 30, 2011, we had two land parcels and five operating properties that met the criteria as held for sale. The amounts included in Assets Held for Sale include real estate investment balances and the related assets and liabilities for each property.

Discontinued Operations

During the nine months ended September 30, 2011, we disposed of 54 properties aggregating 4.8 million square feet to third parties, most of which were included in Assets Held for Sale at December 31, 2010, including one which was a development property. During all of 2010, we disposed of land subject to ground leases and 205 properties aggregating 25.4 million square feet to third parties, two of which were development properties.

The operations of the properties held for sale or disposed of to third parties and the aggregate net gains recognized upon their disposition are presented as Discontinued Operations in our Consolidated Statements of Operations for all periods presented. Interest expense is included in discontinued operations only if it is directly attributable to these properties.

Discontinued operations are summarized as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Rental income	$	4,415		$	42,234		$	19,178		$	128,603
Rental expenses		(2,142	)		(12,795	)		(6,191	)		(36,400	)
Depreciation and amortization		(1,472	)		(10,882	)		(2,553	)		(33,101	)
Other expenses		(124	)		—			(230	)		—
Income attributable to disposed properties and assets held for sale		677			18,557			10,204			59,102
Net gains recognized on dispositions		11,410			10,026			26,120			20,004
Impairment charges		—			—			(2,659	)		—
Income tax on dispositions		—			(2,000	)		(1,916	)		(2,851	)
Total discontinued operations	$	12,087		$	26,583		$	31,749		$	76,255

The following information relates to properties disposed of during the periods presented and recorded as discontinued operations, including adjustments to previous dispositions for actual versus estimated selling costs (dollars in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Number of properties		16		4		54		13
Net proceeds from dispositions	$	93,924	$	51,573	$	661,914	$	69,014
Net gains from dispositions, net of related impairment charges and taxes	$	11,410	$	8,026	$	21,545	$	17,153