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DISCONTINUED OPERATIONS AND PROPERTIES HELD FOR SALE
 12 Months Ended
Dec. 31, 2012
DISCONTINUED OPERATIONS AND PROPERTIES HELD FOR SALE  
DISCONTINUED OPERATIONS AND PROPERTIES HELD FOR SALE

NOTE 4—DISCONTINUED OPERATIONS AND PROPERTIES HELD FOR SALE

        Discontinued operations include real estate investments sold in 2012, 2011 and 2010. The related assets sold in 2012 were reclassified to properties held for sale as of December 31, 2011.

        Real estate investments are classified as held for sale when management has determined that it has met the criteria established under GAAP. Real estate investments which are held for sale are not depreciated and their operations are included in a separate component of income on the consolidated statements of income under the caption Discontinued Operations.

Sales of Properties

        During 2012, the Company sold to unrelated parties, two properties located in Florida and leased to Office Depot, two properties located in New York (one of which was vacant) and a retail furniture property located in Texas. The total sales price aggregated $36,062,000, net of closing costs, and the Company realized aggregate gains of $19,413,000 which is included in net gain on sales in discontinued operations in the results of operations for 2012. The net book value of the properties, including related assets of $968,000, was $16,975,000 at December 31, 2011 and is included in properties held for sale on the accompanying balance sheet.

        During 2011, the Company sold a property, leased to Office Depot and located in California, to an unrelated party for $11,544,000, net of closing costs, and realized a gain of approximately $932,000, which is included in net gain on sales in discontinued operations in the results of operations for 2011.

        During 2010, the Company sold two properties to unrelated parties, for an aggregate of approximately $4,100,000, net of closing costs, and realized an aggregate gain of $235,000, which is included in net gain on sales in discontinued operations in the results of operations for 2010.

        The following summarizes the components of income from discontinued operations (amounts in thousands):

 
   Year Ended December 31,  
 
   2012   2011   2010  

Rental income

   $ 1,733   $ 2,446   $ 3,265  
               

Depreciation and amortization

     260     505     665  

Real estate expenses

     102     257     261  

Interest expense

     332     468     706  
               

Total expenses

     694     1,230     1,632  
               

Income from operations

     1,039     1,216     1,633  

Net gain on sales

     19,413     932     235  
               

Income from discontinued operations

   $ 20,452   $ 2,148   $ 1,868