Reportable Segments

9 Months Ended

Sep. 30, 2011

Reportable Segments [Abstract]

REPORTABLE SEGMENTS

8. REPORTABLE SEGMENTS

The Company has five reportable segments: Office, Retail, Land, CPS Third Party Management and Leasing, 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. For these two segments, 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. Fee income and related expenses for the third party owned properties managed or leased by the Company’s CPS subsidiary are included in the CPS Third Party Management and Leasing segment. In 2010, the Company had an additional segment, the For-Sale Multi-Family Residential Unit segment which included results of operations for the development and sale of multi-family real estate projects. The Company sold substantially all of its multi-family residential units in the first quarter of 2011, and the 2011 results for this segment are included in the Other segment. The Other segment also includes:

• fee income for third party owned and joint venture properties, other than those managed by CPS, for which the Company performs management, development and leasing services (fee income from 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 a 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).

							CPS Third
							Party
							Management
Three Months Ended September 30, 2011	Office		Retail		Land		and Leasing			Other			Total
Net operating income, including discontinued operations	$	15,442	$	5,026	$	—	$	—		$	907		$	21,375
Fee income, net of reimbursed expenses		—		—		14		3,300			2,029			5,343
Residential lot, outparcel and multi-family unit sales, net of cost of sales		—		—		7		—			—			7
Other income		368		—		—		—			80			448
Third party management and leasing expenses		—		—		—		(2,143	)		—			(2,143	)
General and administrative expenses		—		—		—		—			(4,295	)		(4,295	)
Interest expense		—		—		—		—			(6,601	)		(6,601	)
Depreciation and amortization of non-real estate assets		—		—		—		—			(388	)		(388	)
Separation expenses		—		—		—		—			(15	)		(15	)
Other expenses		—		—		—		—			(790	)		(790	)
Loss on extinguishment of debt		—		—		—		—			(74	)		(74	)
Funds from operations from unconsolidated joint ventures		2,766		2,110		225		—			(2	)		5,099
Income attributable to noncontrolling interests, excluding amounts related to gain on sale of depreciated investment properties		—		—		—		—			(611	)		(611	)
Benefit for income taxes from operations		—		—		—		—			180			180
Preferred stock dividends		—		—		—		—			(3,226	)		(3,226	)
Funds from operations available to common stockholders	$	18,576	$	7,136	$	246	$	1,157		$	(12,806	)		14,309
Real estate depreciation and amortization, including Company’s share of joint ventures														(15,420	)
Noncontrolling interest related to gain on sale of depreciated investment properties														(1,581	)
Gain on sale of depreciated investment properties														2,880
Net income available to common stockholders													$	188

								CPS Third
								Party
								Management			For-Sale
Three Months Ended September 30, 2010	Office		Retail			Land		and Leasing			Multi-Family		Other			Total
Net operating income, including discontinued operations	$	14,658	$	5,262		$	—	$	—		$	—	$	1,092		$	21,012
Fee income, net of reimbursed expenses		—		—			117		2,540			—		2,457			5,114
Residential lot, multi-family unit, tract and outparcel sales, net of cost of sales, including gain on sale of undepreciated investment properties		—		(1	)		81		—			1,447		—			1,527
Other income		8		18			—		—			—		230			256
Third party management and leasing expenses		—		—			—		(1,938	)		—		—			(1,938	)
General and administrative expenses		—		—			—		—			—		(6,172	)		(6,172	)
Interest expense		—		—			—		—			—		(8,702	)		(8,702	)
Depreciation and amortization of non-real estate assets		—		—			—		—			—		(441	)		(441	)
Separation expenses														(202	)		(202	)
Other expenses		—		—			—		—			—		(909	)		(909	)
Loss on extinguishment of debt		—		—			—		—			—		(9,235	)		(9,235	)
Funds from operations from unconsolidated joint ventures		2,532		1,458			368		—			165		—			4,523
Income attributable to noncontrolling interests		—		—			—		—			—		(696	)		(696	)
Provision for income taxes from operations		—		—			—		—			—		(25	)		(25	)
Preferred stock dividends		—		—			—		—			—		(3,226	)		(3,226	)
Funds from operations available to common stockholders	$	17,198	$	6,737		$	566	$	602		$	1,612	$	(25,829	)		886
Real estate depreciation and amortization, including Company’s share of joint ventures																	(15,899	)
Gain on sale of depreciated investment properties																	6,631
Net loss available to common stockholders																$	(8,382	)

							CPS Third
							Party
							Management
Nine Months Ended September 30, 2011	Office		Retail		Land		and Leasing			Other			Total
Net operating income, including discontinued operations	$	46,152	$	15,607	$	—	$	—		$	2,868		$	64,627
Fee income, net of reimbursed expenses		—		—		105		7,536			5,875			13,516
Residential lot, outparcel and multi-family unit sales, net of cost of sales		—		50		57		—			2,177			2,284
Other income		1,185		34		—		—			386			1,605
Third party management and leasing expenses		—		—		—		(5,859	)		—			(5,859	)
General and administrative expenses		—		—		—		—			(17,828	)		(17,828	)
Interest expense		—		—		—		—			(21,503	)		(21,503	)
Impairment loss		—		—		—		—			(3,508	)		(3,508	)
Depreciation and amortization of non-real estate assets		—		—		—		—			(1,323	)		(1,323	)
Separation expenses		—		—		—		—			(193	)		(193	)
Other expenses		—		—		—		—			(2,324	)		(2,324	)
Loss on extinguishment of debt		—		—		—		—			(74	)		(74	)
Funds from operations from unconsolidated joint ventures		8,215		6,476		504		—			48			15,243
Income attributable to noncontrolling interests, excluding amounts related to gain on sale of depreciated investment properties		—		—		—		—			(1,873	)		(1,873	)
Benefit for income taxes from operations		—		—		—		—			217			217
Preferred stock dividends		—		—		—		—			(9,680	)		(9,680	)
Funds from operations available to common stockholders	$	55,552	$	22,167	$	666	$	1,677		$	(46,735	)		33,327
Real estate depreciation and amortization, including Company’s share of joint ventures														(46,735	)
Noncontrolling interest related to gain on sale of depreciated investment properties														(1,581	)
Gain on sale of depreciated investment properties, net														2,614
Net loss available to common stockholders													$	(12,375	)

							CPS Third
							Party
							Management			For-Sale
Nine Months Ended September 30, 2010	Office		Retail		Land		and Leasing			Multi-Family			Other			Total
Net operating income, including discontinued operations	$	44,368	$	18,775	$	—	$	—		$	—		$	2,240		$	65,383
Fee income, net of reimbursed expenses		—		—		411		6,871			—			6,178			13,460
Residential lot, multi-family unit, tract and outparcel sales, net of cost of sales, including gain on sale of undepreciated investment properties		—		4,584		755		—			5,458			1,204			12,001
Other income		18		79		—		—			—			473			570
Third party management and leasing expenses		—		—		—		(6,162	)		—			—			(6,162	)
General and administrative expenses		—		—		—		—			—			(20,952	)		(20,952	)
Interest expense		—		—		—		—			—			(28,769	)		(28,769	)
Depreciation and amortization of non-real estate assets		—		—		—		—			—			(1,475	)		(1,475	)
Separation expenses		—		—		—		—			—			(303	)		(303	)
Other expenses		—		—		—		—			—			(4,773	)		(4,773	)
Impairment loss		—		—		—		—			(586	)		—			(586	)
Loss on extinguishment of debt		—		—		—		—			—			(9,827	)		(9,827	)
Funds from operations from unconsolidated joint ventures		7,374		4,823		2,049		—			327			—			14,573
Income attributable to noncontrolling interests		—		—		—		—			—			(1,806	)		(1,806	)
Benefit for income taxes from operations		—		—		—		—			—			1,107			1,107
Preferred stock dividends		—		—		—		—			—			(9,680	)		(9,680	)
Funds from operations available to common stockholders	$	51,760	$	28,261	$	3,215	$	709		$	5,199		$	(66,383	)		22,761
Real estate depreciation and amortization, including Company’s share of joint ventures																	(48,060	)
Gain on sale of depreciated investment properties																	6,749
Net loss available to common stockholders																$	(18,550	)

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 adjusting for gains on sales of investment properties, as these gains 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 September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Net operating income, including discontinued operations	$	21,375		$	21,012		$	64,627		$	65,383
Plus rental property operating expenses, including discontinued operations		14,968			14,150			42,705			42,029
Fee income		5,343			5,114			13,516			13,460
Third party management and leasing expense reimbursements		2,098			2,184			6,555			7,132
Reimbursed expenses		1,866			1,392			4,749			4,649
Residential lot, outparcel, and multi-family unit sales, net of cost of sales, including gain on sale of undepreciated investment properties		7			1,527			2,284			12,001
Less gain on sale of undepreciated investment properties not included in revenues		—			1			—			(1,698	)
Plus residential lot, multi-family unit and outparcel cost of sales		158			5,739			2,790			29,188
Net operating income from discontinued operations not included in revenues		(1,075	)		(1,322	)		(3,238	)		(6,782	)
Other income		448			256			1,605			570
Other income — discontinued operations		—			(11	)		(88	)		(30	)
Total consolidated revenues	$	45,188		$	50,042		$	135,505		$	165,902