Segment Disclosure

3 Months Ended

Mar. 31, 2012

Segment Reporting [Abstract]

Segment Disclosure

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 months ended March 31, 2012 and 2011:

	Three Months Ended March 31,
	2012			2011
	(in thousands)
Reportable Segment - Office Properties
Operating revenues(1)	$	92,680		$	77,264
Property and related expenses	24,799			22,494
Net Operating Income	67,881			54,770
Non-Reportable Segment - Industrial Properties
Operating revenues(1)	6,730			6,509
Property and related expenses	1,929			3,270
Net Operating Income	4,801			3,239
Total Segments:
Operating revenues(1)	99,410			83,773
Property and related expenses	26,728			25,764
Net Operating Income	$	72,682		$	58,009
Reconciliation to Consolidated Net Income:
Total Net Operating Income for segments	$	72,682		$	58,009
Unallocated (expenses) income:
General and administrative expenses	(8,767		)	(6,560		)
Acquisition-related expenses	(1,528		)	(472		)
Depreciation and amortization	(36,746		)	(28,441		)
Interest income and other net investment gains	484			184
Interest expense	(21,163		)	(20,876		)
Income from continuing operations	4,962			1,844
Income from discontinued operations(2)	73,709			3,023
Net income	$	78,671		$	4,867

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

(2) See Note 14 for the breakdown of income from discontinued operations by segment.