Discontinued Operations and Assets Held for Sale

9 Months Ended

Sep. 30, 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 September 30, 2011	Sold in 2011	Sold in 2010	Total
Office	3	11	11	25
Industrial	0	3	6	9
Retail	0	0	2	2
	3	14	19	36

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 nine months ended September 30, 2011 and 2010, respectively (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Revenues	$	1,341		$	11,385		$	7,506		$	38,276
Operating expenses	(640		)	(4,675		)	(3,751		)	(15,226		)
Depreciation and amortization	(426		)	(3,426		)	(1,678		)	(10,877		)
Operating income	275			3,284			2,077			12,173
Interest expense	(311		)	(2,909		)	(2,107		)	(9,880		)
Income (loss) before gain on sales	(36		)	375			(30		)	2,293
Gain on sale of depreciable properties	2,088			11,527			16,405			24,383
Income from discontinued operations	$	2,052		$	11,902		$	16,375		$	26,676

Dividends on preferred shares and adjustments for the 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 three and nine months ended September 30, 2011 and 2010, respectively (in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2011			2010		2011			2010
Income (loss) from continuing operations attributable to common shareholders	$	(34,072	)	$	22,417	$	(29,490	)	$	(49,583	)
Income from discontinued operations attributable to common shareholders	1,996			11,647		15,941			25,992
Net income (loss) attributable to common shareholders	$	(32,076	)	$	34,064	$	(13,549	)	$	(23,591	)

At September 30, 2011, we classified three in-service properties as held-for-sale, which were included in discontinued operations, due to our present intention to sell the properties in October 2011. The following table illustrates aggregate balance sheet information of the aforementioned three properties included in discontinued operations at September 30, 2011 (in thousands):

Real estate investment, net	$	18,466
Other assets	3,526
Total assets held-for-sale	$	21,992
Accrued expenses	$	666
Other liabilities	291
Total liabilities held-for-sale	$	957