Assets Held for Sale and Discontinued Operations

9 Months Ended

Sep. 30, 2012

Assets Held for Sale and Discontinued Operations

6. Assets Held for Sale and Discontinued Operations

Held for Sale

As of September 30, 2012, we had land and 23 operating properties that met the criteria to be classified as held for sale. The amounts included in held for sale as of September 30, 2012 represent real estate investment balances and the related assets and liabilities for each property.

Discontinued Operations

During the nine months ended September 30, 2012, we disposed of land subject to ground leases and 113 operating properties aggregating 14.4 million square feet to third parties. During all of 2011, we disposed of land subject to ground leases and 94 operating properties aggregating 10.7 million square feet to third parties.

The operations of the properties held for sale or disposed of to third parties and the aggregate net gains or losses 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						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Rental income and recoveries	$	11,267		$	36,671		$	50,830		$	86,479
Rental expenses		(2,975	)		(9,187	)		(13,445	)		(22,873	)
Depreciation and amortization expense		(3,674	)		(15,256	)		(17,335	)		(28,387	)
Other expenses		—			(325	)		(161	)		(503	)
Income attributable to disposed properties and assets held for sale		4,618			11,903			19,889			34,716
Net gain (loss) on dispositions, net of taxes		(4,049	)		11,410			17,074			24,204
Impairment charges		(27,409	)		—			(27,409	)		(2,659	)
Total discontinued operations	$	(26,840	)	$	23,313		$	9,554		$	56,261