Reportable Segments

12 Months Ended

Dec. 31, 2011

Reportable Segments [Abstract]

REPORTABLE SEGMENTS

16. 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 the nature of service. Each segment includes both consolidated operations and joint ventures. The Office and Retail segments show the results for that 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 certain land holdings and single-family residential communities that are sold as developed lots to homebuilders. Fee income and related expenses for the third party-owned properties which are managed or leased by the Company’s CPS subsidiary are included in the CPS Third Party Management and Leasing segment. In 2010 and 2009, 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 has sold substantially all of its multi-family residential units, and this line of business is no longer considered to be a separate reporting segment. The 2011 results for this segment are included in Other. 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 buildings, which are not material for separate presentation, and were all sold in 2011.

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 on sale or impairment losses on 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, the balance of the Company’s investment in joint ventures and the amount of 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):

		000000		000000			000000			000000			000000			000000
Year Ended December 31, 2011	Office		Retail			Land			CPS Third Party Management and Leasing			Other			Total
Net operating income, including discontinued operations	$	61,796	$	20,917		$	—		$	—		$	3,583		$	86,296
Fee income, net of reimbursed expenses		—		—			105			10,600			7,508			18,213
Residential lot, multi-family unit, tract and outparcel sales, net of cost of sales, including gain on sale of undepreciated investment properties		—		50			3,332			—			2,177			5,559
Other income		1,563		87			—			—			480			2,130
Third party management and leasing expenses		—		—			—			(7,826	)		—			(7,826	)
General and administrative expenses		—		—			—			—			(24,166	)		(24,166	)
Interest expense		—		—			—			—			(27,784	)		(27,784	)
Impairment losses		—		(1,730	)		(94,793	)		—			(3,608	)		(100,131	)
Depreciation and amortization of non-real estate assets		—		—			—			—			(1,688	)		(1,688	)
Separation expenses		—		—			—			—			(197	)		(197	)
Other expenses		—		—			—			—			(4,436	)		(4,436	)
Loss on extinguishment of debt		—		—			—			—			(74	)		(74	)
Funds from operations from unconsolidated joint ventures		11,071		8,712			(27,211	)		—			73			(7,355	)
Impairment loss on investment in unconsolidated joint ventures		—		—			(608	)		—			—			(608	)
Income attributable to noncontrolling interests, excluding amounts related to gain on sale of depreciated investment properties		—		—			—			—			(2,087	)		(2,087	)
Benefit for income taxes from operations		—		—			—			—			186			186
Preferred stock dividends		—		—			—			—			(12,907	)		(12,907	)
Funds from operations available to common stockholders	$	74,430	$	28,036		$	(119,175	)	$	2,774		$	(62,940	)		(76,875	)
Real estate depreciation and amortization, including Company’s share of joint ventures																(62,709	)
Impairment losses on depreciable investment properties																(7,632	)
Noncontrolling interest related to gain on sale of depreciated investment properties																(2,871	)
Gain on sale of depreciated investment properties																8,755
Net loss available to common stockholders															$	(141,332	)
Total Assets	$	732,857	$	375,923		$	108,172		$	4,302		$	14,281		$	1,235,535

		000000			000000		000000			000000			000000			000000			000000
Year Ended December 31, 2010	Office			Retail		Land			CPS Third Party Management and Leasing			For-Sale Multi- Family			Other			Total
Net operating income, including discontinued operations	$	60,646		$	23,792	$	—		$	—		$	—		$	3,625		$	88,063
Fee income, net of reimbursed expenses		—			—		211			9,668			—			7,951			17,830
Residential lot, multi-family unit, tract and outparcel sales, net of cost of sales, including gain on sale of undepreciated investment properties		—			4,661		1,076			—			7,425			1,204			14,366
Other income		436			114		—			—			—			714			1,264
Third party management and leasing expenses		—			—		—			(8,100	)		—			—			(8,100	)
General and administrative expenses		—			—		—			—			—			(28,517	)		(28,517	)
Interest expense		—			—		—			—			—			(37,180	)		(37,180	)
Impairment losses		—			—		(1,968	)		—			(586	)		—			(2,554	)
Depreciation and amortization of non-real estate assets		—			—		—			—			—			(1,889	)		(1,889	)
Separation expenses		—			—		—			—			—			(1,045	)		(1,045	)
Other expenses		—			—		—			—			—			(4,416	)		(4,416	)
Loss on extinguishment of debt and interest rate swaps		—			—		—			—			—			(9,827	)		(9,827	)
Funds from operations from unconsolidated joint ventures		9,863			6,443		2,375			—			473			—			19,154
Income attributable to noncontrolling interests		—			—		—			—			—			(2,540	)		(2,540	)
Benefit for income taxes from operations		—			—		—			—			—			1,079			1,079
Preferred stock dividends		—			—		—			—			—			(12,907	)		(12,907	)
Funds from operations available to common stockholders	$	70,945		$	35,010	$	1,694		$	1,568		$	7,312		$	(83,748	)		32,781
Real estate depreciation and amortization, including Company’s share of joint ventures																			(67,728	)
Gain on sale of depreciated investment properties																			7,467
Net loss available to common stockholders																		$	(27,480	)
Total Assets	$	671,540		$	348,470	$	261,323		$	4,050		$	4,564		$	81,335		$	1,371,282
Year Ended December 31, 2009	Office			Retail		Land			CPS Third Party Management and Leasing			For-Sale Multi- Family			Other			Total
Net operating income, including discontinued operations	$	57,257		$	24,395	$	—		$	—		$	—		$	1,568		$	83,220
Fee income, net of reimbursed expenses		—			—		616			11,838			—			5,846			18,300
Residential lot, multi-family unit, tract and outparcel sales, net of cost of sales, including gain on sale of undepreciated investment properties		276			1,841		1,466			—			5,212			58			8,853
Other income		286			1,431		—			—			—			1,308			3,025
Third party management and leasing expenses		—			—		—			(7,750	)		—			—			(7,750	)
General and administrative expenses		—			—		—			—			—			(26,198	)		(26,198	)
Interest expense		—			—		—			—			—			(41,393	)		(41,393	)
Impairment losses		—			—		—			—			(36,500	)		(4,012	)		(40,512	)
Depreciation and amortization of non-real estate assets		—			—		—			—			—			(3,382	)		(3,382	)
Separation expenses		—			—		—			—			—			(3,257	)		(3,257	)
Other expenses		—			—		—			—			—			(13,143	)		(13,143	)
Loss on extinguishment of debt and interest rate swaps		—			—		—			—			—			9,732			9,732
Funds from operations from unconsolidated joint ventures		(11,149	)		6,440		(4,091	)		—			(60	)		(37	)		(8,897	)
Impairment loss on investment in unconsolidated joint ventures		(17,993	)		—		(27,000	)		—			(6,065	)		—			(51,058	)
Income attributable to noncontrolling interests		—			—		—			—			—			(2,252	)		(2,252	)
Provision for income taxes from operations		—			—		—			—			—			(4,341	)		(4,341	)
Preferred stock dividends		—			—		—			—			—			(12,907	)		(12,907	)
Funds from operations available to common stockholders	$	28,677		$	34,107	$	(29,009	)	$	4,088		$	(37,413	)	$	(92,410	)		(91,960	)
Real estate depreciation and amortization, including Company’s share of joint ventures																			(61,205	)
Gain on sale of depreciated investment properties, including Company’s share of joint ventures																			167,553
Net income available to common stockholders																		$	14,388
Total Assets	$	650,958		$	429,099	$	273,026		$	7,291		$	31,206		$	99,972		$	1,491,552

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 sales; and

• Gains 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 on the Statements of Operations. The following table reconciles information presented in the tables above to the Company’s consolidated revenues (in thousands):

		September 30,			September 30,			September 30,
	2011			2010			2009
Net operating income	$	86,296		$	88,063		$	83,220
Plus rental property operating expenses		55,918			53,750			57,996
Fee income		18,213			17,830			18,300
Third party management and leasing expense reimbursements		8,759			9,293			10,128
Reimbursed expenses		6,208			6,297			5,378
Residential lot, outparcel, and multi-family unit sales, net of cost of sales, including gain on sale of undepreciated investment properties		5,559			14,366			8,853
Less gain on sale of undepreciated investment properties not included in revenues		(3,258	)		(1,697	)		(1,243	)
Plus residential lot, multi-family unit and outparcel cost of sales		5,378			37,716			30,652
Net operating income from discontinued operations not included in revenues		(6,641	)		(11,291	)		(12,972	)
Other income		2,130			1,264			3,025
Other income — discontinued operations		(98	)		(35	)		(53	)
Total consolidated revenues	$	178,464		$	215,556		$	203,284

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