Segment Reporting

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

9.    Segment Reporting

We have four reportable operating segments at March 31, 2012, 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 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.

As of March 31, 2012, one of the quantitative thresholds was triggered, which required our medical office property operating segment to be presented as a separate reportable segment. As such, our medical office properties are presented as a separate reportable segment for the three-month period ended March 31, 2012 as well as for the comparative prior period.

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 our overall operating results based upon an industry performance measure referred to as Funds From Operations (“FFO”), which management believes is a useful indicator of our 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 supplemental measure of REIT operating performance that excludes historical cost depreciation, among other items, from net income determined in accordance with GAAP. FFO is a non-GAAP financial measure. The most comparable GAAP measure is net income (loss) attributable to common unitholders. FFO attributable to common unitholders should not be considered as a substitute for net income (loss) attributable to 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. 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.

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. FFO, as defined by NAREIT, represents GAAP net income (loss), excluding extraordinary items as defined under GAAP and 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.

Management believes that the use of FFO attributable to 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 excluding gains or losses related to sales of previously depreciated real estate assets, impairment charges related to depreciable real estate assets and real estate asset depreciation and amortization 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.

The following table shows (i) the revenues for each of the reportable segments and (ii) a reconciliation of FFO attributable to common unitholders to net income (loss) attributable to common unitholders for the three months ended March 31, 2012 and 2011, respectively (in thousands):

	Three Months Ended March 31,
	2012			2011
Revenues
Rental Operations:
Industrial	$	108,487		$	94,262
Office	67,417			75,602
Medical Office	20,741			13,484
Non-reportable Rental Operations	5,658			5,655
General contractor and service fee revenue (“Service Operations”)	68,968			146,547
Total Segment Revenues	271,271			335,550
Other Revenue	1,129			1,983
Consolidated Revenue from continuing operations	272,400			337,533
Discontinued Operations	1,234			52,170
Consolidated Revenue	$	273,634		$	389,703
Reconciliation of Funds From Operations
Net earnings excluding depreciation and Non-Segment Items
Industrial	$	79,902		$	66,726
Office	39,490			43,100
Medical Office	13,667			7,802
Non-reportable Rental Operations	4,008			4,207
Service Operations	5,047			10,883
	142,114			132,718
Non-Segment Items:
Interest expense	(61,086		)	(52,124		)
Interest and other income	146			87
Other operating expenses	(265		)	(85		)
General and administrative expenses	(11,839		)	(11,197		)
Undeveloped land carrying costs	(2,298		)	(2,309		)
Acquisition-related activity	(580		)	(589		)
Other non-segment income	352			981
Net (income) loss attributable to noncontrolling interests	(168		)	122
Joint venture items	10,095			8,610
Distributions on Preferred Units	(13,193		)	(15,974		)
Adjustments for redemption/repurchase of Preferred Units	(5,730		)	(163		)
Discontinued operations	(106		)	11,756
FFO attributable to common unitholders	57,442			71,833
Depreciation and amortization on continuing operations	(91,613		)	(77,822		)
Depreciation and amortization on discontinued operations	(643		)	(17,159		)
Partnership's share of joint venture adjustments	(8,586		)	(7,628		)
Earnings from depreciated property sales on continuing operations	(277		)	67,856
Earnings from depreciated property sales on discontinued operations	6,476			11,603
Earnings from depreciated property sales—share of joint venture	—			91
Net income (loss) attributable to common unitholders	$	(37,201	)	$	48,774

The assets for each of the reportable segments as of March 31, 2012 and December 31, 2011 are as follows (in thousands):

	March 31, 2012		December 31, 2011
Assets
Rental Operations:
Industrial	$	3,634,930	$	3,586,250
Office	1,683,691		1,742,196
Medical Office	674,298		580,177
Non-reportable Rental Operations	202,139		209,056
Service Operations	162,468		167,382
Total Segment Assets	6,357,526		6,285,061
Non-Segment Assets	514,879		718,921
Consolidated Assets	$	6,872,405	$	7,003,982