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Segment Reporting
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
Segment Reporting
Segment Reporting
Reportable Segments
We had three reportable operating segments at June 30, 2016, the first two of which consist of the ownership and rental of (i) industrial and (ii) medical office real estate investments. Beginning in 2016 our office properties are no longer presented as a separate reportable segment, as they no longer meet the quantitative thresholds for separate presentation, and are referred to as part of our non-reportable Rental Operations. The operations of our industrial and medical office properties as well as our non-reportable Rental Operations, are collectively referred to as "Rental Operations." Our third reportable segment consists of various real estate services such as property management, asset management, maintenance, leasing, development, general contracting and construction management to third-party property owners and joint ventures, and is collectively referred to as "Service Operations." Our reportable segments offer different products or services and are managed separately because each segment requires different operating strategies and management expertise.

Revenues by Reportable Segment

The following table shows the revenues for each of the reportable segments, as well as a reconciliation to consolidated revenues, for the three and six months ended June 30, 2016 and 2015, respectively (in thousands): 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2016
 
2015
 
2016
 
2015
Revenues
 
 
 
 
 
 
 
 
Rental Operations:
 
 
 
 
 
 
 
 
Industrial
 
$
140,219

 
$
135,487

 
$
283,199

 
$
283,115

Medical Office
 
43,135

 
40,274

 
85,360

 
80,302

Non-reportable Rental Operations
 
13,529

 
23,691

 
28,425

 
48,826

Service Operations
 
26,044

 
23,901

 
49,195

 
76,722

Total segment revenues
 
222,927

 
223,353

 
446,179

 
488,965

Other revenue
 
3,637

 
2,544

 
5,339

 
4,368

Consolidated revenue from continuing operations
 
226,564

 
225,897

 
451,518

 
493,333

Discontinued operations
 
126

 
49

 
355

 
32,164

Consolidated revenue
 
$
226,690

 
$
225,946

 
$
451,873

 
$
525,497


Supplemental Performance Measure
Property level net operating income on a cash basis ("PNOI") is the non-GAAP supplemental performance measure that we use to evaluate the performance of, and to allocate resources among, the real estate investments in the reportable and operating segments that comprise our Rental Operations. PNOI for our Rental Operations segments is comprised of rental revenues from continuing operations less rental expenses and real estate taxes from continuing operations, along with certain other adjusting items (collectively referred to as "Rental Operations revenues and expenses excluded from PNOI," as shown in the following table). Additionally, we do not allocate interest expense, depreciation expense and certain other non-property specific revenues and expenses (collectively referred to as "Non-Segment Items," as shown in the following table) to our individual operating segments.
We evaluate the performance of our Service Operations reportable segment using net income or loss, as allocated to that segment ("Earnings from Service Operations").
The following table shows a reconciliation of our segment-level measures of profitability to consolidated income from continuing operations before income taxes for the three and six months ended June 30, 2016 and 2015, respectively (in thousands and excluding discontinued operations): 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2016
 
2015
 
2016
 
2015
PNOI
 
 
 
 
 
 
 
 
Industrial
 
$
104,741

 
$
96,629

 
$
206,798

 
$
191,588

Medical Office
 
28,179

 
25,820

 
55,421

 
51,051

Non-reportable Rental Operations
 
8,903

 
9,870

 
18,069

 
17,762

PNOI, excluding all sold/held for sale properties

 
141,823

 
132,319

 
280,288

 
260,401

PNOI from sold/held-for-sale properties included in continuing operations
 
629

 
8,545

 
2,994

 
22,735

PNOI, continuing operations

 
$
142,452

 
$
140,864

 
$
283,282

 
$
283,136

 
 
 
 
 
 
 
 
 
Earnings from Service Operations
 
3,816

 
2,163

 
6,047

 
7,960

 
 

 

 

 

Rental Operations revenues and expenses excluded from PNOI:
Straight-line rental income and expense, net
 
2,893

 
3,956

 
5,824

 
11,107

Revenues related to lease buyouts
 
69

 
94

 
234

 
958

Amortization of lease concessions and above and below market rents
 
(425
)
 
(490
)
 
(1,058
)
 
(2,203
)
Intercompany rents and other adjusting items
 
(226
)
 
(412
)
 
(219
)
 
(872
)
Non-Segment Items:
 
 
 
 
 
 
 
 
Equity in earnings of unconsolidated companies
 
3,534

 
15,123

 
25,394

 
21,369

Gain on dissolution of unconsolidated company

 
30,697

 
—

 
30,697

 
—

Promote income
 
24,087

 
—

 
24,087

 
—

Interest expense
 
(37,184
)
 
(42,976
)
 
(74,914
)
 
(92,567
)
Depreciation and amortization expense
 
(80,161
)
 
(78,334
)
 
(157,959
)
 
(160,237
)
Gain on sale of properties
 
39,314

 
107,410

 
54,891

 
130,894

Impairment charges on non-depreciable properties
 
(5,651
)
 
(5,470
)
 
(12,056
)
 
(5,470
)
Interest and other income, net
 
567

 
1,375

 
3,090

 
1,713

General and administrative expenses
 
(11,584
)
 
(19,238
)
 
(29,682
)
 
(36,242
)
Gain on land sales
 
707

 
17,012

 
837

 
22,437

Other operating expenses
 
(836
)
 
(1,555
)
 
(2,072
)
 
(3,112
)
Loss on extinguishment of debt
 
(2,430
)
 
(82,653
)
 
(2,430
)
 
(82,653
)
Acquisition-related activity
 
(72
)
 
(1,305
)
 
(75
)
 
(1,333
)
Other non-segment revenues and expenses, net
 
80

 
143

 
(323
)
 
(259
)
Income from continuing operations before income taxes
 
$
109,647

 
$
55,707

 
$
153,595

 
$
94,626

The most comparable GAAP measure to PNOI is income from continuing operations before income taxes. PNOI excludes expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for income from continuing operations before income taxes or any other measures derived in accordance with GAAP. Furthermore, PNOI may not be comparable to other similarly titled measures of other companies.
 













Assets by Reportable Segment

The assets for each of the reportable segments at June 30, 2016 and December 31, 2015 were as follows (in thousands): 
 
June 30,
2016
 
December 31,
2015
Assets
 
 
 
Rental Operations:
 
 
 
Industrial
$
4,629,204

 
$
4,552,107

Medical Office
1,304,920

 
1,269,546

Non-reportable Rental Operations
313,195

 
367,469

Service Operations
132,622

 
137,257

Total segment assets
6,379,941

 
6,326,379

Non-segment assets
485,084

 
569,136

Consolidated assets
$
6,865,025

 
$
6,895,515