Discontinued Operations and Assets Held for Sale

3 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Assets Held for Sale

Discontinued Operations and Assets Held-for-Sale

Discontinued Operations

The following table illustrates the number of sold or held-for-sale properties included in, or excluded from, discontinued operations:

	Held-for-Sale at March 31, 2016	Sold through March 31, 2016	Sold in 2015	Total
Industrial	0	0	5	5
Medical Office	0	0	1	1
Non-reportable Rental Operations	0	0	56	56
Total properties included in discontinued operations	0	0	62	62
Properties excluded from discontinued operations	5	3	91	99
Total properties sold or classified as held-for-sale	5	3	153	161

For the properties that were classified in discontinued operations, we allocated 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. There were no additional properties classified as discontinued operations during the three months ended March 31, 2016 and, as such, no interest expense was allocated to discontinued operations during that period.

The following table illustrates the operational results of the buildings reflected in discontinued operations for the three months endedMarch 31, 2016 and 2015, respectively (in thousands):

	Three Months Ended March 31,
	2016			2015
Revenues	$	229		$	32,115
Operating expenses	8			(12,386		)
Depreciation and amortization	—			(3,517		)
Operating income	237			16,212
Interest expense	—			(6,034		)
Income before gain on sales	237			10,178
Gain on sale of depreciable properties	(86		)	18,375
Income from discontinued operations	$	151		$	28,553

We had no capital expenditures for the three months endedMarch 31, 2016 and $8.6 million for the three months endedMarch 31, 2015 related to properties classified within discontinued operations.

Allocation of Noncontrolling Interests - General Partner

The following table illustrates the General Partner's share of the income attributable to common shareholders from continuing operations and discontinued operations, reduced by the allocation of income between continuing and discontinued operations to the Limited Partner Units, for the three months endedMarch 31, 2016 and 2015, respectively (in thousands):

	Three Months Ended March 31,
	2016		2015
Income from continuing operations attributable to common shareholders	$	43,157	$	36,994
Income from discontinued operations attributable to common shareholders	150		28,250
Net income attributable to common shareholders	$	43,307	$	65,244

Allocation of Noncontrolling Interests - Partnership

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

Properties Held-for-Sale

At March 31, 2016, five in-service properties were classified as held-for-sale but did not meet the criteria to be classified within discontinued operations. The following table illustrates aggregate balance sheet information for all held-for-sale properties at March 31, 2016 and December 31, 2015 (in thousands):

	March 31, 2016			December 31, 2015
	Held-for-Sale Properties Included in Continuing Operations			Held-for-Sale Properties Included in Continuing Operations
Land and improvements	$	18,592		$	9,797
Buildings and tenant improvements	48,456			39,480
Accumulated depreciation	(12,014		)	(7,183		)
Deferred leasing and other costs, net	7,546			3,293
Other assets	1,581			414
Total assets held-for-sale	$	64,161		$	45,801
Accrued expenses	814			322
Other liabilities	574			650
Total liabilities held-for-sale	$	1,388		$	972