Discontinued Operations

6 Months Ended

Jun. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

For the three and six-month periods ended June 30, 2012, income from discontinued operations relates to the three properties that the Company sold during 2012, as well as 11 properties that were designated as held-for-sale as of June 30, 2012. The Company determined that 11 of its flex/office properties located in Exton, Pennsylvania met the criteria for assets held-for-sale pursuant to the related requirements provided for the classification as held for sale under the accounting standard for long lived assets. Accordingly, at June 30, 2012, these properties are required to be measured at the lower of their carrying value or the estimated fair value less costs to sell. No provision for impairment was recognized at June 30, 2012 as the estimated fair value of the properties less costs to sell were higher than their carrying value. The following table summarizes the revenue and expense information for properties classified as discontinued operations for the three and six-month periods ended June 30, 2012 (in thousands):

	Three-month period ended June 30, 2012		Six-month period ended June 30, 2012
Revenue:
Rents	$	2,003	$	6,113
Tenant reimbursements	343		758
Termination fees	—		7
Other	86		89
Total revenue	2,432		6,967
Expenses:
Property operating expenses	594		1,701
Real estate taxes	217		726
Depreciation and amortization	840		2,744
Total operating expenses	1,651		5,171
Other income (expense):
Interest income	2		2
Income from discontinued operations before gain on sale of interests in real estate	783		1,798
Net gain on disposition of discontinued operations	10,166		24,834
Income from discontinued operations	$	10,949	$	26,632

The following table summarizes the balance sheet information for the 11 properties identified as held-for-sale at June 30, 2012 (in thousands):

	June 30,
	2012
Real Estate Investments:
Operating properties	$	52,990
Accumulated depreciation	(14,385		)
	38,605
Construction-in-progress	36
	38,641
Receivables	1,374
Deferred costs, net	1,137
Other assets	298
Total assets held for sale	$	41,450
Liabilities held for sale	$	878

For the three and six-month periods ended June 30, 2011, income from discontinued operations relates to the seven properties that the Company sold from January 1, 2011 through June 30, 2012, as well as the 11 flex/office properties identified as held-for-sale at June 30, 2012. The following table summarizes the revenue and expense information for properties classified as discontinued operations for the three and six-month periods ended June 30, 2011 (in thousands):

	Three-month period ended June 30, 2011		Six-month period ended June 30, 2011
Revenue:
Rents	$	5,620	$	11,292
Tenant reimbursements	750		1,931
Other	5		2
Total revenue	6,375		13,225
Expenses:
Property operating expenses	1,581		3,639
Real estate taxes	707		1,446
Depreciation and amortization	2,344		4,561
Total operating expenses	4,632		9,646
Income from discontinued operations before gain on sale of interests in real estate	1,743		3,579
Net gain on disposition of discontinued operations	3,836		3,836
Income from discontinued operations	$	5,579	$	7,415

Discontinued operations have not been segregated in the consolidated statements of cash flows. Therefore, amounts for certain captions will not agree with respective data in the consolidated statements of operations.