Real Estate Properties

3 Months Ended

Mar. 31, 2015

During the three months ended March 31, 2015 and 2014, we made improvements to our properties totaling $10.9 million and $27.8 million, respectively.

Property Sales:

We classify all properties that meet the criteria outlined in the Property, Plant and Equipment Topic of the FASB Accounting Standards Codification (Codification) as held for sale on our condensed consolidated balance sheets. As of March 31, 2015 and December 31, 2014, we had no properties classified as held for sale.

During March 2014, the former management team ceased to actively market two CBD properties (two buildings) and 29 suburban properties (65 buildings) with a combined 5,641,450 square feet that we had previously classified as held for sale as of December 31, 2013. These properties were not under agreement for sale when our former Trustees were removed in March 2014. These properties were reclassified to properties held and used in operations because they no longer met the requirements under GAAP for classification as held for sale. Operating results for these properties were reclassified from discontinued operations to continuing operations for all periods presented herein. In connection with this reclassification, we reversed previously recorded impairment losses totaling $4.8 million, which includes the elimination of estimated costs to sell.

During the three months ended March 31, 2015, we sold the following properties (dollars in thousands):



Asset	Date Sold	Number of Properties	Number of Buildings	Square Footage	Gross Sales Price		Gain on Sale
Sales of properties resulting in gains
11350 North Meridian Street	January 2015	1	1	72,264	$	4,200	$	766
333 Laurel Oak Drive(1)	March 2015	—	1	27,164	2,450		251
1921 E. Alton Avenue	March 2015	1	1	67,846	14,533		4,851
		2	3	167,274	$	21,183	$	5,868

(1) We sold one building in a property containing three buildings.

Results of operations for properties sold prior to December 31, 2014 are included in discontinued operations in our condensed consolidated statements of operations. Summarized income statement information for properties sold during the three months ended March 31, 2014 is as follows (in thousands):



	Three Months Ended March 31, 2014
Rental income	$	7,274
Tenant reimbursements and other income	522
Total revenues	7,796

Operating expenses	3,479
General and administrative	3
Total expenses	3,482
Operating income	4,314
Interest expense	(303		)
Income from discontinued operations	$	4,011