Segment Disclosure

6 Months Ended

Jun. 30, 2011

Segment Disclosure [Abstract]

Segment Disclosure

13.   Segment Disclosure

We have one reportable segment which is our Office Properties segment and we have one non-reportable segment which is our Industrial Properties segment. We also have certain corporate level activities including legal administration, accounting, finance, management information systems, and acquisitions, which are not considered separate operating segments.

We evaluate the performance of our segments based upon Net Operating Income. “Net Operating Income” is defined as operating revenues (rental income, tenant reimbursements, and other property income) less property and related expenses (property expenses, real estate taxes, ground leases, and provisions for bad debts) and excludes other non-property related income and expenses such as interest income and interest expense, depreciation and amortization, acquisition-related expenses and corporate general and administrative expenses. There is no intersegment activity.

The following tables reconcile our reportable segment activity to our consolidated net income for the three and six months ended June 30, 2011 and 2010 and the assets by segment to the to consolidated assets as of June 30, 2011 and December 31, 2010.

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
				(in thousands)
Reportable Segment—Office Properties
Operating revenues(1)	$	84,560		$	64,718		$	165,379		$	124,321
Property and related expenses		24,729			19,503			47,639			35,757
Net Operating Income		59,831			45,215			117,740			88,564
Non-Reportable Segment—Industrial Properties
Operating revenues(1)		7,504			7,698			14,810			14,914
Property and related expenses		1,811			1,880			5,124			3,650
Net Operating Income		5,693			5,818			9,686			11,264
Total Segments:
Operating revenues(1)		92,064			72,416			180,189			139,235
Property and related expenses		26,540			21,383			52,763			39,407
Net Operating Income	$	65,524		$	51,033		$	127,426		$	99,828
Reconciliation to Consolidated Net Income:
Total Net Operating Income for segments	$	65,524		$	51,033		$	127,426		$	99,828
Unallocated (expenses) income:
General and administrative expenses		(7,440	)		(6,728	)		(14,000	)		(13,823	)
Acquisition-related expenses		(1,194	)		(957	)		(1,666	)		(1,270	)
Depreciation and amortization		(32,248	)		(23,722	)		(61,559	)		(44,660	)
Interest income and other net investment gains (losses)		58			(18	)		242			366
Interest expense		(21,228	)		(13,088	)		(42,104	)		(25,044	)
Loss on early extinguishment of debt		—			(4,564	)		—			(4,564	)
Net income	$	3,472		$	1,956		$	8,339		$	10,833

(1) All operating revenues are comprised of amounts received from third-party tenants.

	June 30, 2011		December 31, 2010
	(in thousands)
Assets:
Reportable Segment — Office Properties
Land, buildings, and improvements, net	$	2,481,829	$	2,108,019
Undeveloped land and construction in progress		303,998		290,365
Total assets(1)		3,027,731		2,611,206
Non-Reportable Segment — Industrial Properties
Land, buildings, and improvements, net		146,155		146,058
Total assets(1)		160,172		159,612
Total Segments
Land, buildings, and improvements, net		2,627,984		2,254,077
Undeveloped land and construction in progress		303,998		290,365
Total assets(1)		3,187,903		2,770,818
Reconciliation to Consolidated Assets:
Total assets allocated to segments	$	3,187,903	$	2,770,818
Other unallocated assets:
Cash and cash equivalents		25,412		14,840
Restricted cash		1,349		1,461
Marketable securities		5,654		4,902
Deferred financing costs, net		18,910		16,447
Prepaid expenses and other assets, net		25,559		8,097
Total consolidated assets	$	3,264,787	$	2,816,565

(1) Includes land, buildings, and improvements, undeveloped land and construction in progress, current receivables, deferred rent receivables deferred leasing costs, and acquisition-related intangible assets, all shown on a net basis.