Nature of Business (Tables)

12 Months Ended

Dec. 31, 2015

During the three years ended December 31, 2015, we sold our interests in the following properties (in thousands):



Disposition Date	Property	Type	Gain on Sale
March 20, 2015	Country Club Towers	Multifamily	$	30,277
September 9, 2015	1225 First Street ⁽¹⁾	Multifamily	—
October 21, 2015	Munson Hill Towers	Multifamily	51,395
December 14, 2015	Montgomery Village Center	Retail	7,981
		Total 2015 ⁽²⁾	$	89,653

January 21, 2014	Medical Office Portfolio Transactions III & IV ⁽³⁾	Medical Office	$	105,985
May 2, 2014	5740 Columbia Road	Retail	570
		Total 2014	$	106,555

March 19, 2013	Atrium Building	Office	$	3,195
November 2013	Medical Office Portfolio Transactions I & II ⁽⁴⁾	Medical Office / Office	18,949
		Total 2013	$	22,144

⁽¹⁾ Interest in land held for future development.

⁽²⁾Excludes gain related to parcel of land at Montrose Shopping Center condemned as part of an eminent domain taking action (see note 3 under "Properties Sold").

⁽³⁾ Woodburn Medical Park I and II and Prosperity Medical Center I, II and III.

⁽⁴⁾ 2440 M Street, 15001 Shady Grove Road, 15505 Shady Grove Road, 19500 at Riverside Park (formerly Lansdowne Medical Office Building), 9707 Medical Center Drive, CentreMed I and II, 8301 Arlington Boulevard, Sterling Medical Office Building, Shady Grove Medical Village II, Alexandria Professional Center, Ashburn Farm Office Park I, Ashburn Farm Office Park II, Ashburn Farm Office Park III, Woodholme Medical Office Building, two office properties (6565 Arlington Boulevard and Woodholme Center) and undeveloped land at 4661 Kenmore Avenue.

The cost of our real estate portfolio under development or held for future development as of December 31, 2015 and 2014 is as follows (in thousands):



	December 31,
	2015		2014
Office	$	18,711	$	36,379
Retail	1,076		500
Multifamily	16,307		39,356
	$	36,094	$	76,235

Income from properties classified as discontinued operations by property or disposal group for the three years ended December 31, 2015 was as follows (in thousands):



		Year Ending December 31,
Property	Segment	2015		2014		2013
Atrium Building	Office	$	—	$	—	$	185
Medical Office Portfolio	Medical/Office	—		546		15,210
		$	—	$	546	$	15,395

Income from properties classified as discontinued operations for the three years ended December 31, 2015 was as follows (in thousands):



	Year Ending December 31,
	2015		2014			2013
Revenues	$	—	$	892		$	45,791
Property expenses	—		(346		)	(17,039		)
Depreciation and amortization	—		—			(12,161		)
Interest expense	—		—			(1,196		)
	$	—	$	546		$	15,395

We sold our interests in the following properties during the three years ended December 31, 2015:



Disposition Date	Property	Segment	# of units (unaudited)	Rentable Square Feet (unaudited)	Contract Sales Price (in thousands)		Gain on Sale (in thousands)
March 20, 2015	Country Club Towers ⁽¹⁾	Multifamily	227	N/A	$	37,800	$	30,277
September 9, 2015	1225 First Street ^{(1), (2)}	Multifamily	N/A	N/A	14,500		—
October 21, 2015	Munson Hill Towers ⁽¹⁾	Multifamily	279	N/A	57,050		51,395
December 14, 2015	Montgomery Village Center ⁽¹⁾	Retail	N/A	197,000	27,750		7,981
		Total 2015	506	197,000	$	137,100	$	89,653

January 21, 2014	Medical Office Portfolio Transactions III & IV ⁽³⁾	Medical Office	N/A	427,000	$	193,561	$	105,985
May 2, 2014	5740 Columbia Road ⁽¹⁾	Retail	N/A	3,000	1,600		570
		Total 2014	N/A	430,000	$	195,161	$	106,555

March 19, 2013	Atrium Building	Office	N/A	79,000	$	15,750	$	3,195
Various	Medical Office Portfolio Transactions I & II	Medical Office/ Office	N/A	1,093,000	307,189		18,949
		Total 2013	N/A	1,172,000	$	322,939	$	22,144

⁽¹⁾These properties are classified as continuing operations. All other sold properties are classified as discontinued operations.

⁽²⁾ Interest in land held for future development.

⁽³⁾

Taxable Percentage of Dividends Paid

The following is a breakdown of the taxable percentage of our dividends for these years ended December 31, 2015, 2014 and 2013, (unaudited):



	2015		2014		2013
Ordinary income	78	%	40	%	62	%
Return of capital	22	%	52	%	38	%
Qualified dividends	—	%	—	%	—	%
Unrecaptured Section 1250 gain	—	%	8	%	—	%
Capital gain	—	%	—	%	—	%