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Segment Reporting
 6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
We have four reportable operating segments at June 30, 2013, the first three of which consist of the ownership and rental of (i) industrial, (ii) office and (iii) medical office real estate investments. The operations of our industrial, office and medical office properties, along with our retail properties, are collectively referred to as "Rental Operations." Our retail properties, as well as any other properties not included in our reportable segments, do not by themselves meet the quantitative thresholds for separate presentation as a reportable segment. The fourth reportable segment consists of various real estate services such as property management, asset management, maintenance, leasing, development, general contracting and construction management to third-party property owners and joint ventures, and is collectively referred to as "Service Operations." Our reportable segments offer different products or services and are managed separately because each segment requires different operating strategies and management expertise.
Other revenue consists of other operating revenues not identified with one of our operating segments. Interest expense and other non-property specific revenues and expenses are not allocated to individual segments in determining our performance measure.
We assess and measure the overall operating results of the General Partner and the Partnership based upon Funds From Operations ("FFO"), which is an industry performance measure that management believes is a useful indicator of consolidated operating performance. FFO is used by industry analysts and investors as a supplemental operating performance measure of a REIT. The National Association of Real Estate Investment Trusts ("NAREIT") created FFO as a non-GAAP supplemental measure of REIT operating performance. FFO, as defined by NAREIT, represents GAAP net income (loss), excluding extraordinary items as defined under GAAP, gains or losses from sales of previously depreciated real estate assets, impairment charges related to depreciable real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization, and after similar adjustments for unconsolidated partnerships and joint ventures. The most comparable GAAP measure is net income (loss) attributable to common shareholders or common unitholders. FFO attributable to common shareholders or common unitholders should not be considered as a substitute for net income (loss) attributable to common shareholders or common unitholders or any other measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. FFO is calculated in accordance with the definition that was adopted by the Board of Governors of NAREIT.
Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry analysts and investors have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Management believes that the use of FFO attributable to common shareholders or common unitholders, combined with net income (which remains the primary measure of performance), improves the understanding of operating results of REITs among the investing public and makes comparisons of REIT operating results more meaningful. Management believes that the use of FFO as a performance measure enables investors and analysts to readily identify the operating results of the long-term assets that form the core of a REIT's activity and assist them in comparing these operating results between periods or between different companies.
We do not allocate certain income and expenses ("Non-Segment Items," as shown in the table below) to our operating segments. Thus, the operational performance measure presented here on a segment-level basis represents net earnings, excluding depreciation expense and the Non-Segment Items not allocated, and is not meant to present FFO as defined by NAREIT.
The following table shows (i) the revenues for each of the reportable segments and (ii) a reconciliation of FFO attributable to common shareholders or common unitholders to net income (loss) attributable to common shareholders or common unitholders for the three and six months ended June 30, 2013 and 2012, respectively (in thousands): 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2013
 
2012
 
2013
 
2012
Revenues
 
 
 
 
 
 
 
 
Rental Operations:
 
 
 
 
 
 
 
 
Industrial
 
$
118,350

 
$
108,257

 
$
234,226

 
$
214,411

Office
 
68,796

 
66,055

 
135,168

 
132,093

Medical Office
 
34,539

 
19,961

 
68,104

 
39,718

Non-reportable Rental Operations
 
1,739

 
1,827

 
4,041

 
3,848

Service Operations
 
50,793

 
63,607

 
98,197

 
132,575

Total Segment Revenues
 
274,217

 
259,707

 
539,736

 
522,645

Other Revenue
 
1,241

 
1,113

 
2,438

 
2,242

Consolidated Revenue from continuing operations
 
275,458

 
260,820

 
542,174

 
524,887

Discontinued Operations
 
2,906

 
8,459

 
9,877

 
18,026

Consolidated Revenue
 
$
278,364

 
$
269,279

 
$
552,051

 
$
542,913

 
 
 
 
 
 
 
 
 
Reconciliation of Funds From Operations
 
 
 
 
 
 
 
 
Net earnings excluding depreciation and Non-Segment Items:
 
 
 
 
 
 
 
 
Industrial
 
$
89,289

 
$
82,438

 
$
174,096

 
$
160,943

Office
 
40,530

 
39,331

 
78,820

 
78,026

Medical Office
 
22,785

 
13,201

 
45,576

 
26,216

Non-reportable Rental Operations
 
1,091

 
1,395

 
2,702

 
2,839

Service Operations
 
5,601

 
5,728

 
14,664

 
10,775

 
 
159,296

 
142,093

 
315,858

 
278,799

Non-Segment Items:
 
 
 
 
 
 
 
 
Interest expense
 
(59,296
)
 
(59,146
)
 
(118,945
)
 
(118,025
)
Impairment charges on non-depreciable properties
 
(3,777
)
 
—

 
(3,777
)
 
—

Interest and other income, net
 
921

 
98

 
1,074

 
244

Other operating expenses
 
(35
)
 
(196
)
 
(103
)
 
(461
)
General and administrative expenses
 
(9,707
)
 
(11,594
)
 
(22,852
)
 
(23,433
)
Undeveloped land carrying costs
 
(2,531
)
 
(2,168
)
 
(4,729
)
 
(4,466
)
Acquisition-related activity
 
(2,423
)
 
(1,029
)
 
(1,780
)
 
(1,609
)
Other non-segment income
 
211

 
489

 
522

 
841

Net income attributable to noncontrolling interests - consolidated entities not wholly owned by the Partnership
 
(141
)
 
(138
)
 
(347
)
 
(306
)
Joint venture items
 
7,074

 
8,907

 
15,267

 
19,002

Dividends on preferred shares/Preferred Units
 
(7,355
)
 
(11,082
)
 
(16,905
)
 
(24,275
)
Adjustments for redemption of preferred shares/Preferred Units
 
—

 
—

 
(5,932
)
 
(5,730
)
Discontinued operations
 
744

 
3,187

 
3,538

 
6,282

FFO attributable to common unitholders of the Partnership
 
82,981

 
69,421

 
160,889

 
126,863

Net (income) loss attributable to noncontrolling interests - common limited partnership interests in the Partnership
 
(842
)
 
466

 
(1,234
)
 
1,277

Noncontrolling interest share of FFO adjustments
 
(273
)
 
(1,660
)
 
(955
)
 
(3,720
)
FFO attributable to common shareholders of the General Partner
 
81,866

 
68,227

 
158,700

 
124,420

Depreciation and amortization on continuing operations
 
(98,545
)
 
(88,667
)
 
(194,801
)
 
(175,953
)
Depreciation and amortization on discontinued operations
 
(714
)
 
(4,276
)
 
(4,238
)
 
(9,246
)
Company's share of joint venture adjustments
 
(5,974
)
 
(8,640
)
 
(13,603
)
 
(17,226
)
Gains on depreciated property sales on continuing operations
 
940

 
119

 
1,108

 
(158
)
Gains on depreciated property sales on discontinued operations
 
83,657

 
3,095

 
92,611

 
9,571

Gains on depreciated property sales - share of joint venture
 
(9
)
 
—

 
48,805

 
—

Noncontrolling interest share of FFO adjustments
 
273

 
1,660

 
955

 
3,720

Net income (loss) attributable to common shareholders of the General Partner
 
$
61,494

 
$
(28,482
)
 
$
89,537

 
$
(64,872
)
Add back: Net income (loss) attributable to noncontrolling interests - common limited partnership interests in the Partnership
 
842

 
(466
)
 
1,234

 
(1,277
)
Net income (loss) attributable to common unitholders of the Partnership
 
$
62,336

 
$
(28,948
)
 
$
90,771

 
$
(66,149
)











The assets for each of the reportable segments as of June 30, 2013 and December 31, 2012 are as follows (in thousands): 
 
June 30,
2013
 
December 31,
2012
Assets
 
 
 
Rental Operations:
 
 
 
Industrial
$
4,267,126

 
$
3,836,721

Office
1,672,131

 
1,683,314

Medical Office
1,272,048

 
1,202,929

Non-reportable Rental Operations
85,917

 
175,197

Service Operations
155,442

 
162,219

Total Segment Assets
7,452,664

 
7,060,380

Non-Segment Assets
431,238

 
499,721

Consolidated Assets
$
7,883,902

 
$
7,560,101