Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

As of June 30, 2013, the Company was managing its portfolio within seven geographic segments: (1) Pennsylvania, (2) Philadelphia Central Business District (CBD), (3) Metropolitan Washington D.C., (4) New Jersey/Delaware, (5) Richmond, Virginia, (6) Austin, Texas and (7) California. The Pennsylvania segment includes properties in Chester, Delaware, and Montgomery counties in the Philadelphia suburbs. The Philadelphia CBD segment includes properties located in the City of Philadelphia in Pennsylvania. The Metropolitan Washington, D.C. segment includes properties in Northern Virginia and southern Maryland. The New Jersey/Delaware segment includes properties in Burlington, Camden and Mercer counties in New Jersey and in New Castle county in the state of Delaware. The Richmond, Virginia segment includes properties primarily in Albemarle, Chesterfield, Goochland and Henrico counties and one property in Durham, North Carolina. The Austin, Texas segment includes properties in Austin. The California segment includes properties in Oakland, Concord, and Carlsbad, California. The corporate group is responsible for cash and investment management, development of certain real estate properties during the construction period, and certain other general support functions. Land held for development and construction in progress are transferred to operating properties by region upon completion of the associated construction or project.

Segment information is as follows (in thousands):

	Pennsylvania Suburbs		Philadelphia CBD		Metropolitan, D.C.		New Jersey/Delaware		Richmond, Virginia		Austin, Texas		California		Corporate			Total
As of June 30, 2013:
Real estate investments, at cost:
Operating properties	$	1,198,731	$	1,023,619	$	1,199,885	$	408,940	$	310,229	$	286,808	$	192,248	$	—		$	4,620,460
Construction-in-progress															51,260			51,260
Land inventory															94,444			94,444
As of December 31, 2012:
Real estate investments, at cost:
Operating properties	$	1,178,730	$	988,590	$	1,193,200	$	546,644	$	309,923	$	285,346	$	223,736	$	—		$	4,726,169
Construction-in-progress															48,950			48,950
Land inventory															102,439			102,439
For the three-months ended June 30, 2013:
Total revenue	$	37,276	$	36,142	$	28,783	$	15,676	$	8,954	$	9,871	$	4,536	$	(319	)	$	140,919
Property operating expenses, real estate taxes and third party management expenses	13,151		13,587		10,774		7,245		3,599		4,208		2,339		165			55,068
Net operating income	$	24,125	$	22,555	$	18,009	$	8,431	$	5,355	$	5,663	$	2,197	$	(484	)	$	85,851
For the three-months ended June 30, 2012:
Total revenue	$	36,784	$	31,911	$	26,967	$	15,284	$	8,903	$	8,188	$	4,210	$	(444	)	$	131,803
Property operating expenses, real estate taxes and third party management expenses	12,640		11,962		10,451		7,083		3,470		3,611		2,249		(331		)	51,135
Net operating income	$	24,144	$	19,949	$	16,516	$	8,201	$	5,433	$	4,577	$	1,961	$	(113	)	$	80,668
For the six-months ended June 30, 2013:
Total revenue	$	75,461	$	72,067	$	56,567	$	31,278	$	17,719	$	19,129	$	9,142	$	(621	)	$	280,742
Property operating expenses, real estate taxes and third party management expenses	27,050		27,121		21,536		14,653		7,282		8,165		4,498		(57		)	110,248
Net operating income	$	48,411	$	44,946	$	35,031	$	16,625	$	10,437	$	10,964	$	4,644	$	(564	)	$	170,494
For the six-months ended June 30, 2012:
Total revenue	$	74,736	$	65,062	$	53,403	$	31,013	$	17,937	$	15,682	$	8,586	$	(826	)	$	265,593
Property operating expenses, real estate taxes and third party management expenses	25,902		24,648		20,518		14,912		7,112		7,009		4,384		(771		)	103,714
Net operating income	$	48,834	$	40,414	$	32,885	$	16,101	$	10,825	$	8,673	$	4,202	$	(55	)	$	161,879

Net operating income (“NOI”)is defined as total revenue less property operating expenses, real estate taxes and third party management expenses. Segment NOI includes revenue, real estate taxes and property operating expenses directly related to operation and management of the properties owned and managed within the respective geographical region. Segment NOI excludes property level depreciation and amortization, revenue and expenses directly associated with third party real estate management services, expenses associated with corporate administrative support services, and inter-company eliminations. NOI also does not reflect general and administrative expenses, interest expenses, real estate impairment losses, depreciation and amortization costs, capital expenditures and leasing costs. Trends in development and construction activities that could materially impact the Company’s results from operations are also not reflected in NOI. All companies may not calculate NOI in the same manner. NOI is the measure that is used by the Company to evaluate the operating performance of its real estate assets by segment. The Company also believes that NOI provides useful information to investors regarding the Company's financial condition and results of operations because it reflects only those income and expenses recorded at the property level. The Company believes that net income, as defined by GAAP, is the most appropriate earnings measure. Below is a reconciliation of consolidated NOI to consolidated net income, as defined by GAAP:

	Three-month periods ended June 30,						Six-month periods ended June 30,
	2013			2012			2013			2012
	(amounts in thousands)						(amounts in thousands)
Consolidated net operating income	$	85,851		$	80,668		$	170,494		$	161,879
Less:
Interest expense	(30,437		)	(32,981		)	(61,351		)	(67,125		)
Deferred financing costs	(1,183		)	(1,261		)	(2,344		)	(2,572		)
Depreciation and amortization	(49,300		)	(47,476		)	(98,846		)	(95,350		)
General and administrative expenses	(7,335		)	(6,079		)	(13,886		)	(12,129		)
Plus:
Interest income	122			1,838			180			2,320
Interest expense - financing obligation	(211		)	(196		)	(429		)	(378		)
Equity in income of real estate ventures	1,508			838			3,043			882
Gain from remeasurement of investment in a real estate venture	7,847			—			7,847			—
Net gain (loss) on real estate venture transactions	3,683			(11		)	3,683			(11		)
Loss on early extinguishment of debt	(1,113		)	(1,250		)	(1,116		)	(1,498		)
Income (loss) from continuing operations	9,432			(5,910		)	7,275			(13,982		)
Income from discontinued operations	(2,252		)	12,712			3,824			30,120
Net income	$	7,180		$	6,802		$	11,099		$	16,138