Assets Held for Sale and Discontinued Operations

3 Months Ended

Mar. 31, 2012

Assets Held for Sale and Discontinued Operations [Abstract]

Assets Held for Sale and Discontinued Operations

6. Assets Held for Sale and Discontinued Operations

Held for Sale

As of March 31, 2012, we had land and nine operating properties that met the criteria to be classified as held for sale. The amounts included in held for sale as of March 31, 2012 primarily include real estate investment balances and the related assets and liabilities for each property.

Discontinued Operations

During the three months ended March 31, 2012, we disposed of land subject to ground leases and 70 operating properties aggregating 7.9 million square feet to third parties, most of which was included in Assets Held for Sale at December 31, 2011. During all of 2011, we disposed of land subject to ground leases and 94 properties aggregating 10.7 million square feet to third parties.

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 March  31,
	2012			2011
Rental income	$	12,907		$	19,658
Rental expenses		(2,719	)		(6,063	)
Depreciation and amortization expense		(3,024	)		(3,736	)
Other expenses		—			(35	)
Income attributable to disposed properties and assets held for sale		7,164			9,824
Net gains on dispositions		11,249			3,876
Income tax on dispositions		—			(1,916	)
Total discontinued operations	$	18,413		$	11,784

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
	March 31,
	2012		2011
Number of properties		70		33
Net proceeds from dispositions	$	686,965	$	331,153
Net gains from dispositions, net of taxes	$	11,249	$	3,876