REAL ESTATE (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Real Estate Investments

A summary of our real estate investments is as follows (in thousands):

	Retail			Office			Multifamily			Mixed-Use			Total
December 31, 2012
Land	$	247,884		$	138,977		$	18,477		$	76,635		$	481,973
Buildings		497,922			600,146			41,968			123,084			1,263,120
Land improvements		39,882			7,528			2,990			2,363			52,763
Tenant improvements		46,393			44,232			—			1,757			92,382
Furniture, fixtures, and equipment		486			1,124			5,082			9,563			16,255
Construction in progress		1,903			30,021			1			258			32,183
		834,470			822,028			68,518			213,660			1,938,676
Accumulated depreciation		(165,293	)		(62,825	)		(32,127	)		(10,249	)		(270,494	)
Net real estate	$	669,177		$	759,203		$	36,391		$	203,411		$	1,668,182
December 31, 2011
Land	$	239,152		$	105,787		$	18,477		$	76,635		$	440,051
Buildings		480,511			395,546			41,632			122,985			1,040,674
Land improvements		38,887			8,663			2,835			2,363			52,748
Tenant improvements		39,818			30,106			—			1,766			71,690
Furniture, fixtures, and equipment		457			996			4,570			9,022			15,045
Construction in progress		2,473			5,888			—			244			8,605	(1)
		801,298			546,986			67,514			213,015			1,628,813
Accumulated depreciation		(145,848	)		(43,766	)		(30,327	)		(4,926	)		(224,867	)
Net real estate	$	655,450		$	503,220		$	37,187		$	208,089		$	1,403,946

(1) Construction in progress related to land held for development is included in the Held for Development classification on the consolidated balance sheets.

Pro forma financial information

The following table summarizes the unaudited pro forma financial information (in thousands):

	Year Ended December 31, 2012				Year Ended December 31, 2011
	As Reported		Pro Forma		As Reported		Pro Forma
Total revenue	$	235,466	$	244,884	$	202,785	$	232,341
Total operating expenses		163,560		173,858		146,442		174,292
Operating income		71,906		71,010		56,343		58,049
Net income (loss)	$	51,601	$	49,303	$	19,324	$	(28,626	)(1)

(1) The net loss for the year ended December 31, 2011 includes one-time expenses for the early extinguishment of debt and loan transfer and consent fees but excludes the gain on acquisition of the controlling interests in the Solana Beach Centre entities and the Waikiki Beach Walk entities.

Net Revenue and Net Income from Discontinued Operations

Net revenue and net income from the property’s discontinued operations were as follows (in thousands):

	Year Ended December 31,
	2012		2011		2010
Net revenue from discontinued operations	$	6,734	$	10,133	$	11,203
Results from discontinued operations
Income from discontinued operations		932		1,672		552
Gain on sale of real estate from discontinued operations		36,720		3,981		—
Total income from discontinued operations	$	37,652	$	5,653	$	552

2012 Acquisitions

Allocation of Purchase Price

The allocation of the purchase price for each of One Beach Street, City Center Bellevue and Geary Marketplace is as follows (in thousands):

	One Beach Street		City  Center Bellevue		Geary Marketplace		Total
Land	$	15,332	$	25,135	$	8,239	$	48,706
Building		16,764		185,653		11,179		213,596
Land improvements		30		154		704		888
Tenant improvements		1,223		5,191		470		6,884
Total real estate		33,349		216,133		20,592		270,074
Lease intangibles		4,141		11,870		1,017		17,028
Prepaid expenses and other assets		1		2,596		414		3,011
Total assets	$	37,491	$	230,599	$	22,023	$	290,113
Accounts payable and accrued expenses	$	94	$	456	$	—	$	550
Security deposits payable		75		740		—		815
Lease intangibles		1,382		8,733		1,124		11,239
Other liabilities and deferred credits		22		497		—		519
Total liabilities	$	1,573	$	10,426	$	1,124	$	13,123

Formation Transactions

Allocation of Purchase Price

The allocation of the consideration paid for the assets and liabilities acquired in the Formation Transactions was as follows (in thousands):

	Solana Beach Towne  Centre		Solana Beach Corporate Centre			Waikiki Beach Walk Retail and Hotel			Total
Land	$	40,980	$	14,896		$	76,635		$	132,511
Building		35,605		42,094			122,985			200,684
Land improvements		1,750		974			2,276			5,000
Tenant improvements		1,487		1,919			1,801			5,207
Furniture and fixtures		—		—			7,910			7,910
Total real estate		79,822		59,883			211,607			351,312
Cash and cash equivalents		957		718			13,547			15,222
Restricted cash		282		200			1,297			1,779
Accounts receivable, net		67		—			2,168			2,235
Lease intangibles		6,995		5,536			15,997			28,528
Prepaid expenses and other assets		22		45			266			333
Total assets	$	88,145	$	66,382		$	244,882		$	399,409
Secured notes payable	$	39,738	$	49,252		$	198,618		$	287,608
Fair market favorable debt value		—		(600	)		(19,000	)		(19,600	)
Notes payable to affiliates		—		—			14,824			14,824
Accounts payable and accrued expenses		924		542			6,520			7,986
Security deposits payable		238		320			861			1,419
Lease intangibles		11,390		125			3,530			15,045
Other liabilities and deferred credits		192		331			442			965
Total liabilities	$	52,482	$	49,970		$	205,795		$	308,247

2011 Acquisitions

Allocation of Purchase Price

The allocation of the purchase prices was as follows (in thousands):

	First & Main		Lloyd District Portfolio		Solana Beach— Highway 101		Total
Land	$	14,697	$	18,660	$	7,847	$	41,204
Building		102,597		53,325		190		156,112
Land improvements		151		1,444		—		1,595
Tenant improvements		6,991		5,909		12		12,912
Construction in progress		—		723		—		723
Total real estate		124,436		80,061		8,049		212,546
Accounts receivable, net		153		—		—		153
Lease intangibles		9,578		13,164		51		22,793
Prepaid expenses and other assets		296		10		—		306
Total assets	$	134,463	$	93,235	$	8,100	$	235,798
Accounts payable and accrued expenses	$	387	$	188	$	12	$	587
Security deposits payable		—		426		7		433
Lease intangibles		5,199		502		—		5,701
Other liabilities and deferred credits		—		519		—		519
Total liabilities	$	5,586	$	1,635	$	19	$	7,240