Discontinued Operations

6 Months Ended

Jun. 30, 2012

Discontinued Operations [Abstract]

Discontinued Operations

9. Discontinued Operations

During 2012, we sold or have entered into agreements to sell (i) five Mart properties, (ii) one Washington, DC property, and (iii) 11 Retail properties, for an aggregate of $792,000,000. Below are the details of these transactions.

Merchandise Mart Properties

On January 6, 2012, we completed the sale of 350 West Mart Center, a 1.2 million square foot office building in Chicago, Illinois, for $228,000,000 in cash, which resulted in a net gain of $54,911,000.

On June 22, 2012, we completed the sale of L.A. Mart, a 784,000 square foot showroom building in Los Angeles, California for $53,000,000, of which $18,000,000 was cash and $35,000,000 was nine-month seller financing at 6.0%.

On July 5, 2012, we entered into agreements to sell the Washington Design Center, the Boston Design Center and the Canadian Trade Shows, for an aggregate of $175,000,000 in cash, which will result in a net gain aggregating approximately $24,500,000. The sales of the Canadian Trade Shows and the Washington Design Center were completed in July 2012 and the sale of the Boston Design Center is expected to be completed in the third quarter, subject to customary closing conditions.

Washington, DC Property

On July 26, 2012, we completed the sale of 409 Third Street S.W., a 409,000 square foot office building in Washington, DC, for $200,000,000 in cash, which resulted in a net gain of approximately $124,700,000, that will be recognized in the third quarter. This building is contiguous to the Washington Design Center and was sold to the same purchaser.

Retail Properties

During 2012, we sold 11 retail properties in separate transactions, for an aggregate of $136,000,000 in cash, which resulted in a net gain aggregating $17,802,000.

We have reclassified the revenues and expenses of all of the properties discussed above, as well as 10 other retail properties that are currently held for sale to “income from discontinued operations” and the related assets and liabilities to “assets related to discontinued operations” and “liabilities related to discontinued operations” for all of the periods presented in the accompanying financial statements. The tables below set forth the assets and liabilities related to discontinued operations at June 30, 2012 and December 31, 2011 and their combined results of operations for thethree and six months ended June 30, 2012 and 2011.

	Assets Related to				Liabilities Related to
(Amounts in thousands)	Discontinued Operations as of				Discontinued Operations as of
	June 30,		December 31,		June 30,		December 31,
	2012		2011		2012		2011
Merchandise Mart Properties	$	134,698	$	376,571	$	67,071	$	74,236
Retail Properties		102,620		220,249		3,773		19,367
409 Third Street S.W.		64,628		64,904		-		-
Total	$	301,946	$	661,724	$	70,844	$	93,603
	For the Three Months				For the Six Months
(Amounts in thousands)	Ended June 30,				Ended June 30,
	2012		2011		2012		2011
Total revenues	$	22,678	$	34,509	$	49,429	$	76,622
Total expenses		14,051		24,598		33,444		59,951
		8,627		9,911		15,985		16,671
Net gains on sale of real estate		16,896		458		72,713		51,623
Impairment losses		(13,511)		-		(13,511)		-
Net gain on extinguishment of High Point debt		-		-		-		83,907
Income from discontinued operations	$	12,012	$	10,369	$	75,187	$	152,201