Acquisitions and Dispositions

3 Months Ended

Mar. 31, 2013

Business Combinations [Abstract]

Acquisitions and Dispositions

Acquisitions and Dispositions

2013 Acquisitions

We acquired two operating properties during the three months ended March 31, 2013. These acquisitions consisted of one industrial property near Indianapolis, Indiana and one medical office property in Central Florida. The following table summarizes our allocation of the fair value of amounts recognized for each major class of asset and liability (in thousands) for these acquisitions:

Real estate assets	$	29,780
Lease related intangible assets	6,370
Total acquired assets	36,150
Other liabilities	50
Total assumed liabilities	50
Fair value of acquired net assets	$	36,100

The leases in the acquired properties had a weighted average remaining life at acquisition of approximately 8.6 years.

Fair Value Measurements

The fair value estimates used in allocating the aggregate purchase price of each acquisition among the individual components of real estate assets and liabilities were determined primarily through calculating the "as-if vacant" value of each building, using the income approach, and relied significantly upon internally determined assumptions. We have determined these estimates to have been primarily based upon Level 3 inputs, which are unobservable inputs based on our own assumptions. The range of most significant assumptions utilized in making the lease-up and future disposition estimates used in calculating the "as-if vacant" value of each building acquired during the three months ended March 31, 2013 were as follows:

	Low		High
Discount rate	8.06	%	9.67	%
Exit capitalization rate	6.96	%	7.67	%
Lease-up period (months)	12		24
Net rental rate per square foot – Industrial	$2.95		$2.95
Net rental rate per square foot – Medical Office	$18.00		$18.00

Acquisition-Related Activity

The acquisition-related activity in our consolidated Statements of Operations for the three months ended March 31, 2013 and 2012 consists of transaction costs related to completed acquisitions, which are expensed as incurred, as well as gains or losses related to acquisitions where we had a pre-existing ownership interest. We recognized a gain of $962,000 on the pre-existing ownership interest that we held in the industrial property we acquired and expenses of $319,000 for transaction costs during the three months ended March 31, 2013.

Activity during the three months endedMarch 31, 2012 consists of transaction costs related to acquisitions, which were expensed as incurred.

Dispositions

We disposed of certain consolidated income-producing real estate assets and undeveloped land and received net cash proceeds of $61.9 million and $63.3 million during the three months ended March 31, 2013 and 2012, respectively.

During the three months endedMarch 31, 2013, 17 office properties and one industrial property were sold from certain of our unconsolidated joint ventures for which our capital distributions totaled $89.2 million and our share of gains totaled $48.8 million, which is included in equity in earnings.