Dispositions of Properties

6 Months Ended

Jun. 30, 2021

Dispositions of property

Dispositions of properties

9.  Dispositions of properties

In 2021, the Company determined that further debt reduction would provide greater financial flexibility and potentially increase shareholder value. Accordingly, the Company adopted a strategy to dispose of certain properties in 2021 where it believes its valuation objective has been met. The Company sold three office properties located in Atlanta, Georgia on May 27, 2021 with an aggregate sales price of approximately $219.5 million, at a net gain of approximately $22.7 million. The Company sold an office property in Dulles, Virginia on June 29, 2021 at a loss of $2.1 million. The Company used the proceeds of the dispositions principally to repay outstanding indebtedness.

The Company reports the results of operations of its properties in its consolidated statements of operations, which includes rental income, rental operating expenses, real estate taxes and insurance and depreciation and amortization.

The operating results for the properties that the Company disposed of are summarized below:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
(in thousands)	2021		2020		2021		2020
Rental revenue	$	4,139	$	6,670	$	10,722	$	13,528
Rental operating expenses		(1,525)		(2,237)		(3,832)		(4,653)
Real estate taxes and insurance		(621)		(1,021)		(1,644)		(2,029)
Depreciation and amortization		(537)		(2,655)		(3,107)		(5,368)
Income from dispositions	$	1,456	$	757	$	2,139	$	1,478