Discontinued Operations and Assets Held for Sale

6 Months Ended

Jun. 30, 2013

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 June 30, 2013	Sold in 2013	Sold in 2012	Total
Office	0	2	10	12
Industrial	0	4	17	21
Medical Office	1	2	0	3
Retail	0	1	1	2
	1	9	28	38

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 three and six months ended June 30,2013 and 2012, respectively (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Revenues	$	2,906		$	8,459		$	9,877		$	18,026
Operating expenses	(1,093		)	(2,896		)	(3,478		)	(6,636		)
Depreciation and amortization	(714		)	(4,276		)	(4,238		)	(9,246		)
Operating income	1,099			1,287			2,161			2,144
Interest expense	(1,069		)	(2,376		)	(2,861		)	(5,108		)
Income (loss) before gain on sales	30			(1,089		)	(700		)	(2,964		)
Gain on sale of depreciable properties	83,657			3,095			92,611			9,571
Income from discontinued operations	$	83,687		$	2,006		$	91,911		$	6,607

Dividends or distributions on preferred shares or Preferred Units and adjustments for the redemption or repurchase of preferred shares or Preferred Units are allocated entirely to continuing operations for both the General Partner and the Partnership.

Allocation of Noncontrolling Interests - General Partner

The following table illustrates the General Partner's share of the income (loss) attributable to common shareholders from continuing operations and discontinued operations, reduced by the allocation of income or loss between continuing and discontinued operations to the Limited Partner Units, for the three and six months ended June 30,2013 and 2012, respectively (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Loss from continuing operations attributable to common shareholders	$	(21,070	)	$	(30,454	)	$	(1,124	)	$	(71,352	)
Income from discontinued operations attributable to common shareholders	82,564			1,972			90,661			6,480
Net income (loss) attributable to common shareholders	$	61,494		$	(28,482	)	$	89,537		$	(64,872	)

Allocation of Noncontrolling Interests - Partnership

The income from discontinued operations for all periods presented in the Partnership's Consolidated Statements of Operations and Comprehensive Income is entirely attributable to the common unitholders.

Properties Held for Sale

At June 30, 2013, we classified one in-service property as held-for-sale, which was included in discontinued operations, due to our intention and ability to sell this property in the third quarter of 2013. We also classified a parcel of land as held-for-sale as of June 30, 2013. The following table illustrates aggregate balance sheet information of these properties at June 30, 2013 (in thousands):

	June 30, 2013
Real estate investment, net	$	54,651
Other assets	2,395
Total assets held-for-sale	$	57,046
Accrued expenses	$	696
Other liabilities	53
Total liabilities held-for-sale	$	749