Assets Held for Sale and Discontinued Operations

6 Months Ended

Jun. 30, 2011

Assets Held for Sale and Discontinued Operations [Abstract]

Assets Held for Sale and Discontinued Operations

7. Assets Held for Sale and Discontinued Operations

Held for Sale

As of June 30, 2011, we had seven land parcels and eight operating properties that met the criteria as held for sale. Due to a pending sale on seven of the operating properties, we recorded an impairment charge of $2.7 million in the three months ended June 30, 2011,which is included in discontinued operations.

Discontinued Operations

During the six months ended June 30, 2011, we disposed of 38non-development properties aggregating 2.8 million square feet to third parties, most of which was included in Assets Held for Sale at December 31, 2010. During all of 2010, we disposed of land subject to ground leases and 205 properties aggregating 25.4 million square feet to third parties, two of which were development properties.

The operations of the properties held for sale or disposed of to third parties and the aggregate net gains recognized upon their disposition are presented as Discontinued Operations in our Consolidated Statements of Operations for all periods presented. Interest expense is included in discontinued operations only if it is directly attributable to these properties.

Discontinued operations are summarized as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Rental income	$	2,959	$	42,044	$	12,913	$	85,332
Rental expenses		12		(11,306)		(3,368)		(22,968)
Depreciation and amortization		(19)		(10,616)		(475)		(21,790)
Income attributable to disposed properties		2,952		20,122		9,070		40,574
Net gains recognized on dispositions		10,834		979		14,710		9,978
Impairment charges		(2,659)		-		(2,659)		-
Income tax on dispositions		-		-		(1,916)		(851)
Total discontinued operations	$	11,127	$	21,101	$	19,205	$	49,701

The following information relates to properties disposed of during the periods presented and recorded as discontinued operations, including adjustments to previous dispositions for actual versus estimated selling costs (dollars in thousands):
	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2011			2010		2011		2010
Number of properties			5		1		38		9
Net proceeds from dispositions		$	176,213	$	3,753	$	567,990	$	17,441
Net gains from dispositions		$	10,834	$	979	$	14,710	$	9,978