Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information

Segment Information

NOTE 10: SEGMENT INFORMATION

We have five reportable segments: office, medical office, retail, multifamily and industrial/flex properties. Office buildings provide office space for various types of businesses and professions. Medical office buildings provide offices and facilities for a variety of medical services. Retail centers are typically neighborhood grocery store or drug store anchored retail centers. Multifamily properties provide rental housing for individuals and families throughout the Washington metropolitan area. Industrial/flex centers are used for flex-office, warehousing, services and distribution type facilities.

We evaluate performance based upon operating income from the combined properties in each segment. Our reportable operating segments are consolidations of similar properties. GAAP requires that segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing segments' performance. Net operating income is a key measurement of our segment profit and loss. Net operating income is defined as segment real estate rental revenue less segment real estate expenses.

The following tables present revenues and net operating income for the 2011 and 2010 Quarters and Periods from these segments, and reconciles net operating income of reportable segments to net income as reported (in thousands):

	Quarter Ended June 30, 2011
	Office		Medical Office		Retail		Multifamily		Industrial/ Flex		Corporate and Other		Consolidated
Real estate rental revenue	$	35,936	$	11,519	$	12,237	$	12,709	$	8,169	$	—	$	80,570
Real estate expenses		12,124		3,421		3,619		4,859		2,191		—		26,214
Net operating income	$	23,812	$	8,098	$	8,618	$	7,850	$	5,978	$	—	$	54,356
Depreciation and amortization														(25,459	)
Interest expense														(17,097	)
General and administrative														(4,049	)
Acquisition costs														(322	)
Other income														310
Discontinued operations:
Income tax expense														(1,173	)
Loss from discontinued operations														(10	)
Net income														6,556
Less: Net income attributable to noncontrolling interests														(34	)
Net income attributable to the controlling interests													$	6,522
Capital expenditures	$	3,367	$	1,288	$	1,030	$	766	$	258	$	126	$	6,835
Total assets	$	991,238	$	352,242	$	308,655	$	236,358	$	223,536	$	75,147	$	2,187,176
	Quarter Ended June 30, 2010
	Office		Medical Office		Retail		Multifamily		Industrial/ Flex		Corporate and Other		Consolidated
Real estate rental revenue	$	31,422	$	11,288	$	10,200	$	11,914	$	7,578	$	—	$	72,402
Real estate expenses		10,427		3,603		2,566		4,523		2,053		—		23,172
Net operating income	$	20,995	$	7,685	$	7,634	$	7,391	$	5,525	$	—	$	49,230
Depreciation and amortization														(22,720	)
Interest expense														(16,785	)
General and administrative														(3,519	)
Acquisition costs														(409	)
Other income														297
Gain on sale of real estate														7,942
Income from discontinued operations														985
Net income														15,021
Less: Net income attributable to noncontrolling interests														(27	)
Net income attributable to the controlling interests													$	14,994
Capital expenditures	$	2,799	$	1,960	$	287	$	498	$	62	$	103	$	5,709
Total assets	$	968,631	$	357,696	$	222,972	$	233,976	$	242,025	$	41,540	$	2,066,840

	Period Ended June 30, 2011
	Office		Medical Office		Retail		Multifamily		Industrial/ Flex		Corporate and Other		Consolidated
Real estate rental revenue	$	70,039	$	22,650	$	24,384	$	25,202	$	16,450	$	—	$	158,725
Real estate expenses		23,612		7,090		7,161		9,687		4,752		—		52,302
Net operating income	$	46,427	$	15,560	$	17,223	$	15,515	$	11,698	$	—	$	106,423
Depreciation and amortization														(50,209	)
Interest expense														(34,223	)
General and administrative														(7,751	)
Acquisition costs														(1,971	)
Other income														616
Discontinued operations:
Income tax expense														(1,173	)
Loss from discontinued operations														(468	)
Net income														11,244
Less: Net income attributable to noncontrolling interests														(57	)
Net income attributable to the controlling interests													$	11,187
Capital expenditures	$	5,833	$	1,957	$	1,471	$	641	$	497	$	231	$	10,630
	Period Ended June 30, 2010
	Office		Medical Office		Retail		Multifamily		Industrial/ Flex		Corporate and Other		Consolidated
Real estate rental revenue	$	62,395	$	22,703	$	20,701	$	23,756	$	16,398	$	—	$	145,953
Real estate expenses		21,202		7,554		5,850		9,626		5,109		—		49,341
Net operating income	$	41,193	$	15,149	$	14,851	$	14,130	$	11,289	$	—	$	96,612
Depreciation and amortization														(45,307	)
Interest expense														(33,623	)
General and administrative														(7,302	)
Acquisition costs														(464	)
Other income														586
Gain (loss) on extinguishment of debt, net														(42	)
Gain on sale of real estate														7,942
Income from discontinued operations														1,884
Net income														20,286
Less: Net income attributable to noncontrolling interests														(76	)
Net income attributable to the controlling interests													$	20,210
Capital expenditures	$	5,124	$	2,722	$	205	$	731	$	290	$	164	$	9,236