Real Estate Properties

3 Months Ended

Mar. 31, 2014

Real Estate Properties

Real Estate Properties

Note 4.  Real Estate Properties

During the three months ended March 31, 2014, we made improvements to our properties totaling $27,830.

Property Sales:

We classify all properties that meet the criteria outlined in the Property, Plant and Equipment Topic of the FASB Accounting Standards Codification, or the Codification, as held for sale, as such on our condensed consolidated balance sheets.  As of March 31, 2014, we had one central business district, or CBD, property (two buildings) and 13 suburban properties (41 buildings) with a combined 2,784,098 square feet held for sale.  As of March 31, 2014, these properties are subject to an agreement for sale which we currently expect to close.

During the three months ended March 31, 2014, we ceased to actively market two CBD properties (two buildings) and 29 suburban properties (65 buildings) with a combined 5,641,450 square feet which we had previously classified as held for sale as of December 31, 2013, which were not under agreement for sale when our entire Board of Trustees was removed.  These properties were reclassified to properties held and used in operations because they no longer meet 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 $4,761 which includes the elimination of estimated costs to sell.

Results of operations for properties sold or held for sale are included in discontinued operations in our condensed consolidated statements of operations once the criteria for discontinued operations in the Presentation of Financial Statements Topic of the Codification are met.  Summarized balance sheet information for all properties classified as held for sale and income statement information for properties held for sale or sold is as follows:

Balance Sheets:

	March 31, 2014		December 31, 2013
Real estate properties	$	201,557	$	536,552
Acquired real estate leases	4,943		6,937
Rents receivable	4,207		14,180
Other assets, net	3,970		15,862
Properties held for sale	$	214,677	$	573,531
Mortgage notes payable	$	19,688	$	20,018
Assumed real estate lease obligations	1,419		2,070
Rent collected in advance	859		4,043
Security deposits	1,100		2,603
Liabilities related to properties held for sale	$	23,066	$	28,734

Income Statements:

	Three Months Ended March 31,
	2014			2013
Rental income	$	7,274		$	15,512
Tenant reimbursements and other income	522			1,731
Total revenues	7,796			17,243
Operating expenses	3,479			11,564
Depreciation and amortization	—			3,953
General and administrative	3			1,287
Total expenses	3,482			16,804
Operating income	4,314			439
Interest and other income	—			3
Interest expense	(303		)	(448		)
Income (loss) from discontinued operations	$	4,011		$	(6	)