Reportable Segments

6 Months Ended

Jun. 30, 2011

Reportable Segments [Abstract]

REPORTABLE SEGMENTS

8. REPORTABLE SEGMENTS

The Company has six reportable segments: Office, Retail, Land, Third-Party Management and Leasing, For-Sale Multi-Family and Other. These reportable segments represent an aggregation of operating segments reported to the Chief Operating Decision Maker based on similar economic characteristics that include the type of product and nature of service. Each segment includes both consolidated operations and joint ventures. The Office and Retail segments show the results by each product type. Net operating income is calculated as rental property revenues less rental property operating expenses. The Land segment includes results of operations for various tracts of land that are held for investment or future development, and single-family residential communities that are parceled into lots and sold to various homebuilders or sold as undeveloped tracts of land. The Third Party Management and Leasing segment includes fee income and related expenses for the third party owned properties managed or leased by the Company’s CPS subsidiary. The For-Sale Multi-Family segment includes results of operations for the development and sale of multi-family real estate projects.

The Other segment includes:

• fee income for third party properties, other than those managed by CPS, and joint venture properties for which the Company performs management, development and leasing services (fee income related to residential joint ventures is included in the Land segment);

• compensation for corporate employees, other than those in the CPS Third Party Management and Leasing segment;

• general corporate overhead costs, interest expense for consolidated entities (as financing decisions are made at the corporate level, with the exception of joint venture interest expense, which is included in joint venture results in the respective segment);

• income attributable to noncontrolling interests;

• income taxes;

• depreciation;

• preferred dividends; and

• operations of the Industrial properties, which are not material for separate presentation.

Company management evaluates the performance of its reportable segments in part based on funds from operations available to common stockholders (“FFO”). FFO is a supplemental operating performance measure used in the real estate industry. The Company calculated FFO using the National Association of Real Estate Investment Trusts’ (“NAREIT”) definition of FFO, which is net income (loss) available to common stockholders (computed in accordance with GAAP), excluding extraordinary items, cumulative effect of change in accounting principle and gains or losses from sales of depreciable property, plus depreciation and amortization of real estate assets, and after adjustments for unconsolidated partnerships and joint ventures to reflect FFO on the same basis.

FFO is used by industry analysts, investors and the Company as a supplemental measure of an equity REIT’s operating performance. Historical cost accounting for real estate assets 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 investors and analysts have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. Thus, NAREIT created FFO as a supplemental measure of a REIT’s operating performance that excludes historical cost depreciation, among other items, from GAAP net income. Management believes the use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Company management evaluates operating performance in part based on FFO. Additionally, the Company uses FFO, along with other measures, to assess performance in connection with evaluating and granting incentive compensation to its officers and other key employees.

Segment net income, investment in joint ventures and capital expenditures are not presented in the following tables. Management does not utilize these measures when analyzing its segments or when making resource allocation decisions, and therefore this information is not provided. FFO is reconciled to net income (loss) on a total Company basis (in thousands).

							Third Party
							Management			For-Sale
Three Months Ended June 30, 2011	Office		Retail		Land		and Leasing			Multi-Family		Other			Total
Net operating income, including discontinued operations	$	15,458	$	4,847	$	—	$	—		$	—	$	911		$	21,216
Fee income, net of reimbursed expenses		—		—		56		2,396			—		2,008			4,460
Residential lot, outparcel and multi-family unit sales, net of cost of sales		—		—		4		—			20		—			24
Other income		447		10		—		—			—		187			644
Third party management and leasing expenses		—		—		—		(1,871	)		—		—			(1,871	)
General and administrative expenses		—		—		—		—			—		(6,133	)		(6,133	)
Interest expense		—		—		—		—			—		(7,358	)		(7,358	)
Depreciation and amortization of non-real estate assets		—		—		—		—			—		(372	)		(372	)
Separation expenses		—		—		—		—			—		(77	)		(77	)
Other expenses		—		—		—		—			—		(672	)		(672	)
Funds from operations from unconsolidated joint ventures		2,685		2,125		127		—			33		—			4,970
Income attributable to noncontrolling interests		—		—		—		—			—		(681	)		(681	)
Benefit for income taxes from operations		—		—		—		—			—		(27	)		(27	)
Preferred stock dividends		—		—		—		—			—		(3,227	)		(3,227	)
Funds from operations available to common stockholders	$	18,590	$	6,982	$	187	$	525		$	53	$	(15,441	)		10,896
Real estate depreciation and amortization, including Company’s share of joint ventures																(15,661	)
Gain on sale of depreciated investment properties																59
Net loss available to common stockholders															$	(4,706	)

								Third Party
								Management			For-Sale
Three Months Ended June 30, 2010	Office		Retail			Land		and Leasing			Multi-Family			Other			Total
Net operating income, including discontinued operations	$	14,992	$	6,735		$	—	$	—		$	—		$	615		$	22,342
Fee income, net of reimbursed expenses		—		—			126		2,097			—			2,204			4,427
Residential lot, multi-family unit, tract and outparcel sales, net of cost of sales, including gain on sale of undepreciated investment properties		—		(8	)		175		—			1,835			876			2,878
Other income		—		33			—		—			—			157			190
Third party management and leasing expenses		—		—			—		(1,826	)		—			—			(1,826	)
General and administrative expenses		—		—			—		—			—			(6,763	)		(6,763	)
Interest expense		—		—			—		—			—			(10,286	)		(10,286	)
Impairment loss		—		—			—		—			(586	)		—			(586	)
Depreciation and amortization of non-real estate assets		—		—			—		—			—			(463	)		(463	)
Separation expenses		—		—			—		—			—			(33	)		(33	)
Other expenses		—		—			—		—			—			(3,002	)		(3,002	)
Funds from operations from unconsolidated joint ventures		2,426		1,644			727		—			45			—			4,842
Income attributable to noncontrolling interests		—		—			—		—			—			(584	)		(584	)
Provision for income taxes from operations		—		—			—		—			—			(14	)		(14	)
Preferred stock dividends		—		—			—		—			—			(3,227	)		(3,227	)
Funds from operations available to common stockholders	$	17,418	$	8,404		$	1,028	$	271		$	1,294		$	(20,520	)		7,895
Real estate depreciation and amortization, including Company’s share of joint ventures																		(16,549	)
Gain on sale of depreciated investment properties																		59
Net loss available to common stockholders																	$	(8,595	)

							Third Party
							Management			For-Sale
Six Months Ended June 30, 2011	Office		Retail		Land		and Leasing			Multi-Family		Other			Total
Net operating income, including discontinued operations	$	30,709	$	10,582	$	—	$	—		$	—	$	1,961		$	43,252
Fee income, net of reimbursed expenses		—		—		91		4,236			—		3,846			8,173
Residential lot, outparcel and multi-family unit sales, net of cost of sales		—		50		50		—			2,177		—			2,277
Other income		818		34		—		—			—		305			1,157
Third party management and leasing expenses		—		—		—		(3,716	)		—		—			(3,716	)
General and administrative expenses		—		—		—		—			—		(13,533	)		(13,533	)
Interest expense		—		—		—		—			—		(14,902	)		(14,902	)
Impairment loss		—		—		—		—			—		(3,508	)		(3,508	)
Depreciation and amortization of non-real estate assets		—		—		—		—			—		(935	)		(935	)
Separation expenses		—		—		—		—			—		(178	)		(178	)
Other expenses		—		—		—		—			—		(1,534	)		(1,534	)
Funds from operations from unconsolidated joint ventures		5,449		4,366		279		—			50		—			10,144
Income attributable to noncontrolling interests		—		—		—		—			—		(1,262	)		(1,262	)
Benefit for income taxes from operations		—		—		—		—			—		37			37
Preferred stock dividends		—		—		—		—			—		(6,454	)		(6,454	)
Funds from operations available to common stockholders	$	36,976	$	15,032	$	420	$	520		$	2,227	$	(36,157	)		19,018
Real estate depreciation and amortization, including Company’s share of joint ventures																(31,315	)
Loss on sale of depreciated investment properties, net																(266	)
Net loss available to common stockholders															$	(12,563	)

							Third Party
							Management			For-Sale
Six Months Ended June 30, 2010	Office		Retail		Land		and Leasing			Multi-Family			Other			Total
Net operating income, including discontinued operations	$	29,710	$	13,513	$	—	$	—		$	—		$	1,148		$	44,371
Fee income, net of reimbursed expenses		—		—		294		4,332			—			3,721			8,347
Residential lot, multi-family unit, tract and outparcel sales, net of cost of sales, including gain on sale of undepreciated investment properties		—		4,585		674		—			4,011			1,204			10,474
Other income		—		41		—		—			—			273			314
Loss on extinguishment of debt		—		—		—		—			—			(592	)		(592	)
Third party management and leasing expenses		—		—		—		(4,225	)		—			—			(4,225	)
General and administrative expenses		—		—		—		—			—			(14,780	)		(14,780	)
Interest expense		—		—		—		—			—			(20,067	)		(20,067	)
Impairment loss		—		—		—		—			(586	)		—			(586	)
Depreciation and amortization of non-real estate assets		—		—		—		—			—			(1,034	)		(1,034	)
Separation expenses		—		—		—		—			—			(101	)		(101	)
Other expenses		—		—		—		—			—			(3,864	)		(3,864	)
Funds from operations from unconsolidated joint ventures		4,842		3,447		1,599		—			162			—			10,050
Income attributable to noncontrolling interests		—		—		—		—			—			(1,110	)		(1,110	)
Benefit for income taxes from operations		—		—		—		—			—			1,132			1,132
Preferred stock dividends		—		—		—		—			—			(6,454	)		(6,454	)
Funds from operations available to common stockholders	$	34,552	$	21,586	$	2,567	$	107		$	3,587		$	(40,524	)		21,875
Real estate depreciation and amortization, including Company’s share of joint ventures																	(32,161	)
Gain on sale of depreciated investment properties																	118
Net loss available to common stockholders																$	(10,168	)

When reviewing the results of operations for the Company, management analyzes the following revenue and income items net of their related costs:

• Rental property operations, including discontinued;

• Reimbursements of third-party and joint venture personnel costs;

• Residential, tract and outparcel sales;

• Multi-family unit sales; and

• Gains or losses on sales of investment properties.

These amounts are shown in the segment tables above in the same “net” manner as shown to management. Certain adjustments are required to reconcile the above segment information to the Company’s consolidated revenues, including removing gains on sales of investment properties from revenues, as they are not presented within revenues in the Statements of Operations. The following table reconciles information presented in the tables above to the Company’s consolidated revenues (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Net operating income	$	21,216		$	22,342		$	43,252		$	44,371
Plus rental property operating expenses		15,472			15,246			29,720			29,777
Fee income		2,064			2,330			3,937			4,015
Third party management and leasing revenues		2,396			2,097			4,236			4,332
Third party management and leasing expense reimbursements		2,209			2,388			4,457			4,947
Reimbursed expenses		1,371			1,398			2,883			3,257
Residential lot, outparcel, and multi-family unit sales, net of cost of sales, including gain on sale of undepreciated investment properties		24			2,878			2,277			10,474
Less gain on sale of undepreciated investment properties not included in revenues		—			(1,002	)		—			(1,699	)
Plus residential lot, outparcel, multi-family unit and outparcel cost of sales		63			6,383			2,632			23,449
Net operating income from discontinued operations not included in revenues		48			(1,619	)		(88	)		(3,406	)
Other income		644			190			1,157			314
Other income — discontinued operations		(88	)		(19	)		(88	)		(19	)
Total consolidated revenues	$	45,419		$	52,612		$	94,375		$	119,812