Acquisitions and Dispositions

6 Months Ended

Jun. 30, 2013

Business Combinations [Abstract]

Acquisitions and Dispositions

Acquisitions and Dispositions

2013 Acquisitions

We acquired 13 operating properties during the six months ended June 30, 2013. These acquisitions consisted of three industrial properties in Central and Southern New Jersey, two industrial properties in Southern California, two industrial properties in Central California, one industrial property in Houston, Texas, one industrial property in Kansas City, Missouri, one industrial property near St. Louis, Missouri, one industrial property in Northeast Pennsylvania, one industrial property near Indianapolis, Indiana and one medical office property in Central Florida. The following table summarizes the fair value of amounts recognized for each major class of asset and liability (in thousands) for these acquisitions:

Real estate assets	$	388,100
Lease related intangible assets	54,499
Total acquired assets	442,599
Secured debt	103,638
Other liabilities	2,682
Total assumed liabilities	106,320
Fair value of acquired net assets	$	336,279

The leases in the acquired properties had a weighted average remaining life at acquisition of approximately 7.6 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 six months ended June 30, 2013 were as follows:

	Low		High
Discount rate	6.82	%	9.67	%
Exit capitalization rate	5.10	%	7.67	%
Lease-up period (months)	12		24
Net rental rate per square foot – Industrial	$2.95		$6.84
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 and Comprehensive Income for the six months ended June 30, 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 one of the industrial properties we acquired and expenses of $2.7 million for transaction costs during the six months ended June 30, 2013.

Activity during the six months endedJune 30, 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 $259.2 million and $89.5 million during the six months ended June 30, 2013 and 2012, respectively.

During the six months endedJune 30, 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, which is included in equity in earnings, totaled $48.8 million.