Real Estate Activities

3 Months Ended

Mar. 31, 2013

Real Estate Activities

2. REAL ESTATE ACTIVITIES

Investments in real estate as of March 31, 2013 and December 31, 2012 were comprised of the following:

(in thousands of dollars)	As of March 31,  2013			As of December 31, 2012
Buildings, improvements and construction in progress	$	2,998,163		$	2,996,301
Land, including land held for development		477,928			481,239
Total investments in real estate		3,476,091			3,477,540
Accumulated depreciation		(938,810	)		(907,928	)
Net investments in real estate	$	2,537,281		$	2,569,612

Capitalization of Costs

The following table summarizes our capitalized salaries, commissions and benefits, real estate taxes and interest for the three months ended March 31, 2013 and 2012:

	Three months ended March 31,
(in thousands of dollars)	2013		2012
Development/Redevelopment Activities:
Salaries and benefits	$	176	$	133
Real estate taxes		—		393
Interest		76		547
Leasing Activities:
Salaries, commissions and benefits		1,537		1,325

Project Costs

We expensed project costs that did not meet or no longer met our criteria for capitalization of $0.2 million for each of the three months ended March 31, 2013 and 2012, respectively.

Acquisitions

In April 2013, we acquired a six story building located contiguous to The Gallery at Market East in Philadelphia, Pennsylvania for $59.6 million, representing a capitalization rate of approximately 5.7%.

Dispositions

The table below presents our dispositions since January 1, 2013:

(in millions of dollars) Sale Date	Property and Location	Description of Real Estate Sold	Capitalization Rate			Sale Price		Gain/ (Loss)
2013 Activity:
January
	Phillipsburg Mall, Phillipsburg, New Jersey (1)	Mall		9.8	%	$	11.5	$	—
	Paxton Towne Centre, Harrisburg, Pennsylvania (2)	Power center		6.9	%		76.8		32.7
February	Orlando Fashion Square, Orlando, Florida (3)	Mall		9.8	%		35.0		0.6

⁽¹⁾ We used proceeds of $11.5 million plus $4.5 million of available working capital to pay for the release of the lien on this collateral property that secured a portion of the 2010 Credit Facility (as defined in note 4).

⁽²⁾ We used proceeds from the sale of this property to repay the $50.0 million mortgage loan secured by the property.

⁽³⁾ We used proceeds of $35.0 million plus a nominal amount of available working capital to pay for the release of the lien on this collateral property that secured a portion of the 2010 Credit Facility.

Discontinued Operations

We have presented as discontinued operations the operating results of Phillipsburg Mall, Orlando Fashion Square, Paxton Towne Centre and Christiana Center, a power center that was under agreement of sale as of March 31, 2013.

The following table summarizes revenue and expense information for the three months ended March 31, 2013 and 2012 for our discontinued operations:

	Three months ended March 31,
(in thousands of dollars)	2013			2012
Real estate revenue	$	2,746		$	6,801
Expenses:
Operating expenses		(1,444	)		(3,224	)
Depreciation and amortization		—			(1,748	)
Interest expense		(671	)		(950	)
Total expenses		(2,115	)		(5,922	)
Operating results from discontinued operations		631			879
Gains on sales of discontinued operations		33,254			—
Income from discontinued operations	$	33,885		$	879