Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

All current and prior period income from the following office property dispositions and properties held for sale is included in discontinued operations for the three months and six months ended June 30, 2013 and 2012 (in thousands).

Office Property	Location	Square Feet	Date of Sale	Net Sales Price		Net Book Value of Real Estate		Gain (Loss) on Sale
2012 Dispositions (1):
Falls Pointe	Atlanta, GA	107	1/6/2012	$	5,824	$	4,467	$	1,357
111 East Wacker	Chicago, IL	1,013	1/9/2012	153,240		153,237		3
Renaissance Center	Memphis, TN	189	3/1/2012	27,661		24,629		3,032
Overlook II	Atlanta, GA	260	4/30/2012	29,467		28,689		778
Wink Building	New Orleans, LA	32	6/8/2012	705		803		(98		)
Ashford/Peachtree	Atlanta, GA	321	7/1/2012	29,440		28,148		1,292
Non-Core Assets	Various	1,932	Various	125,486		122,157		3,329
Sugar Grove	Houston, TX	124	10/23/2012	10,303		7,057		3,246
		3,978		$	382,126	$	369,187	$	12,939
2013 Disposition (2):
Atrium at Stoneridge	Columbia, SC	108	3/20/2013	$	2,966	$	2,424	$	542
		108		$	2,966	$	2,424	$	542
Office Property	Location	Square Feet	Date of Sale	Gross Sales Price
Properties Held for Sale at June 30, 2013 (3)
Waterstone	Atlanta, GA	93	7/10/2013	$	3,400
Meridian	Atlanta, GA	97	7/10/2013	6,800
		190		$	10,200

(1) Total gain on the sale of real estate in discontinued operations recognized for the year ended December 31, 2012 was $12.9 million, of which $8.1 million was our proportionate share.

(2) Total gain on the sale of real estate in discontinued operations recognized during the six months ended June 30, 2013 was $542,000.

(3) Gains and losses on assets held for sale are expected to be finalized upon sale and reflected in the nine months ended September 30, 2013 financial statements.

On March 20, 2013, the Company sold Atrium at Stoneridge, a 108,000 square foot office property located in Columbia, South Carolina, for a gross sales price of $3.1 million and recorded a gain of $542,000 during first quarter 2013.  The Company received $3.0 million in net proceeds from the sale, which was used to reduce amounts outstanding under the Company's senior unsecured revolving credit facility.

On July 10, 2013, the Company sold two office properties, Waterstone and Meridian, totaling 190,000 square feet located in Atlanta, Georgia, for a gross sales price of $10.2 million and recorded an impairment loss of $4.6 million during the second quarter of 2013 related to the sale of these assets. The Company received $9.5 million in net proceeds from the sale, which was used to reduce amounts outstanding under the Company's senior unsecured revolving credit facility.

On July 17, 2013, the Company sold Bank of America Plaza, a 436,000 square foot office property located in Nashville, Tennessee, for a gross sales price of $42.8 million and expects to record a gain of approximately $11.9 million during the third quarter of 2013. The Company received $40.8 million in net proceeds from the sale, which was used to reduce amounts outstanding under the Company's revolving credit facilities.

At June 30, 2013, assets and liabilities related to assets held for sale represented two properties, Waterstone and Meridian, totaling 190,000 square feet located in Atlanta, Georgia that were sold on July 10, 2013. The major classes of assets and liabilities classified as held for sale at June 30, 2013 are as follows (in thousands):

	June 30, 2013
Balance Sheet:
Investment property	$	9,285
Accumulated depreciation	—
Office property held for sale	9,285
Rents receivable and other assets	546
Total assets held for sale	$	9,831
Accounts payable and other liabilities	$	325
Total liabilities related to assets held for sale	$	325

The amount of revenues and expenses for the office properties reported in discontinued operations for the three months and six months ended June 30, 2013 and 2012 is as follows (in thousands):

	Three Months Ended   June 30						Six Months Ended   June 30
	2013			2012			2013			2012
Statement of Operations:
Revenues
Income from office and parking properties	$	621		$	4,141		$	1,149		$	14,883
	621			4,141			1,149			14,883
Expenses
Office and parking properties:
Operating expense	203			2,325			750			6,845
Management company expense	(5		)	86			2			238
Interest expense	—			1,587			—			3,378
Non-cash adjustment for interest rate swap	—			(77		)	—			(215		)
Impairment loss	4,600			—			4,600			—
Depreciation and amortization	210			594			479			1,561
	5,008			4,515			5,831			11,807
Income (loss) from discontinued operations	(4,387		)	(374		)	(4,682		)	3,076
Gain on sale of real estate from discontinued operations	—			3,197			542			8,772
Total discontinued operations per Statement of Operations	(4,387		)	2,823			(4,140		)	11,848
Net income attributable to noncontrolling     interest from discontinued operations	(43		)	(322		)	(30		)	(3,674		)
Total discontinued operations-Parkway's share	$	(4,430	)	$	2,501		$	(4,170	)	$	8,174