Discontinued Operations and Assets Held for Sale

12 Months Ended

Dec. 31, 2011

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Assets Held for Sale

Discontinued Operations and Assets Held for Sale

The following table illustrates the number of properties in discontinued operations:

	Held For Sale at December 31, 2011	Sold in 2011	Sold in 2010	Sold in 2009	Total
Office	7	93	11	5	116
Industrial	6	7	6	0	19
Retail	0	1	2	0	3
	13	101	19	5	138

We allocate interest expense to discontinued operations and have included such interest expense in computing income from discontinued operations. Interest expense allocable to discontinued operations includes interest on any secured debt for properties included in discontinued operations and an allocable share of our consolidated unsecured interest expense for unencumbered properties. The allocation of unsecured interest expense to discontinued operations was based upon the gross book value of the unencumbered real estate assets included in discontinued operations as it related to the total gross book value of our unencumbered real estate assets.

The following table illustrates the operations of the buildings reflected in discontinued operations for the years ended December 31, 2011, 2010 and 2009, respectively (in thousands):

	2011			2010			2009
Revenues	$	184,571		$	238,772		$	264,240
Operating expenses	(85,120		)	(103,818		)	(110,185		)
Depreciation and amortization	(55,229		)	(80,578		)	(94,670		)
Operating income	44,222			54,376			59,385
Interest expense	(44,758		)	(60,869		)	(70,220		)
Loss before impairment charges and gain on sales	(536		)	(6,493		)	(10,835		)
Impairment charges	—			—			(27,206		)
Gain on sale of depreciable properties	100,882			33,054			6,786
Income (loss) from discontinued operations	$	100,346		$	26,561		$	(31,255	)

Dividends on preferred shares and adjustments for redemption or repurchase of preferred shares are allocated entirely to continuing operations. The following table illustrates the allocation of the income (loss) attributable to common shareholders between continuing operations and discontinued operations, reflecting an allocation of income or loss attributable to noncontrolling interests between continuing and discontinued operations, for the years ended December 31, 2011, 2010 and 2009, respectively (in thousands):

	2011			2010			2009
Loss from continuing operations attributable to common shareholders	$	(66,261	)	$	(40,024	)	$	(303,352	)
Income (loss) from discontinued operations attributable to common shareholders	97,677			25,916			(30,249		)
Net income (loss) attributable to common shareholders	$	31,416		$	(14,108	)	$	(333,601	)

At December 31, 2011, we classified 13 in-service properties as held-for-sale, while at December 31, 2010, we classified 25 in-service properties as held-for-sale. The following table illustrates aggregate balance sheet information of these held-for-sale properties (in thousands):

	December 31, 2011		December 31, 2010
Real estate investment, net	$	49,735	$	354,692
Other assets	5,845		39,595
Total assets held-for-sale	$	55,580	$	394,287
Accrued expenses	$	254	$	9,615
Other liabilities	721		5,117
Total liabilities held-for-sale	$	975	$	14,732