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plan will be made or that the plan will be withdrawn. When all of these criteria have been met, the property is classified as “held for sale” and its operations are classified as discontinued operations in our consolidated statements of income. When a property is desig- nated as “held for sale”, amounts for all prior periods presented are reclassified from continuing operations to discontinued opera- tions. A loss is recognized for any initial adjustment of the asset’s carrying amount to fair value less costs to sell in the period the asset qualifies as “held for sale”. Depreciation of assets is discontinued commencing on the date they are designated as “held for sale”. The accompanying statements have been presented in compliance with SFAS 144. 

Income from discontinued operations, net includes the results of three properties we sold during 2003, and one property that had been designated as “held for sale” as of December 31, 2003 under the provisions of SFAS 144. We sold one property located in the Suburban Washington D.C. market that had been designated as “held for sale” during the fourth quarter of 2003. The total sale price for the property was approximately $9.0 million. In connection with the sale, we recorded a loss on sale of property of approximately $36,000. During the third quarter of 2003, we sold one property located in the Eastern Massachusetts market that had been previously designated as “held for sale” as of December 31, 2002. The total sale price for the property was approximately $46.5 million. In con- nection with this sale, we recorded a gain on sale of property of approximately $8.8 million. Interest expense included in discontinued operations represents interest related to a secured note payable which was assumed by the buyer in connection with the sale of this property. During the first quarter of 2003, we sold one property located in the San Francisco Bay market which could not be redevel- oped pursuant to our original strategic objectives and that had been designated as “held for sale” as of December 31, 2002. The total sale price for the property was approximately $6.8 million. In connection with this sale, we recorded a loss on sale of property of approximately $455,000 in 2003. Gains and losses on sales of these properties are included on the income statement in income from discontinued operations in 2003. 

The following is a summary of operations and net assets of the properties included in discontinued operations (in thousands): 

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## NOTE 14: SUBSEQUE NT EVENTS 

In Febr uary 2004, we s old an office property in the Suburban Washington D.C. market that had been designated as “held for sale” d u ring the fourth quart er of 2003. The total sale price for the property was approximately $5.7 million. 

