Segment Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

During the quarter ended June 30, 2014, the Company was managing its portfolio within seven segments: (1) Pennsylvania Suburbs, (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 Suburbs 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 and Camden 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 the City of Austin, Texas. The California segment includes properties in Oakland, Concord and Carlsbad. 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.

The following tables provide selected asset information and results of operations of the Company's reportable segments (in thousands):

Real estate investments, at cost:
	June 30, 2014		December 31, 2013
Philadelphia CBD	$	1,321,740	$	1,300,666
Pennsylvania Suburbs	1,228,752		1,199,105
Metropolitan Washington, D.C.	1,221,305		1,214,965
New Jersey/Delaware	414,754		414,716
Richmond,Virginia	310,751		310,397
California	192,590		192,584
Austin, Texas (a)	—		36,856
Operating properties	$	4,689,892	$	4,669,289
Corporate
Construction-in-progress	$	92,713	$	74,174
Land inventory	$	90,266	$	93,351

(a) On April 3, 2014, the Company contributed Four Points Centre to an unconsolidated joint venture. See Note 3 for further information on the contribution. Following the contribution, there are no wholly owned properties in the Austin, Texas segment.

Net operating income:
	Three-month periods ended
	June 30,
	2014								2013
	Total revenue		Operating expenses (b)			Net operating income			Total revenue		Operating expenses (b)			Net operating income
Philadelphia CBD	$	51,420	$	(18,789	)	$	32,631		$	36,142	$	(13,587	)	$	22,555
Pennsylvania Suburbs	40,743		(13,742		)	27,001			37,002		(13,704		)	23,298
Metropolitan Washington, D.C.	28,949		(10,505		)	18,444			28,783		(10,773		)	18,010
New Jersey/Delaware	14,841		(7,531		)	7,310			15,024		(6,871		)	8,153
Richmond, Virginia	8,322		(3,566		)	4,756			8,954		(3,599		)	5,355
California	4,895		(2,515		)	2,380			4,536		(2,338		)	2,198
Austin, Texas (a)	976		(617		)	359			9,872		(4,207		)	5,665
Corporate	354		(442		)	(88		)	331		106			437
Operating Properties	$	150,500	$	(57,707	)	$	92,793		$	140,644	$	(54,973	)	$	85,671
	Six-month periods ended
	June 30,
	2014								2013
	Total revenue		Operating expenses (b)			Net operating income			Total revenue		Operating expenses (b)			Net operating income
Philadelphia CBD	$	100,834	$	(37,231	)	$	63,603		$	72,067	$	(27,121	)	$	44,946
Pennsylvania Suburbs	81,317		(28,431		)	52,886			74,918		(28,310		)	46,608
Metropolitan Washington, D.C.	59,639		(22,462		)	37,177			56,568		(21,536		)	35,032
New Jersey/Delaware	30,466		(16,223		)	14,243			29,944		(13,902		)	16,042
Richmond, Virginia	17,189		(7,906		)	9,283			17,719		(7,282		)	10,437
California	9,497		(4,923		)	4,574			9,141		(4,498		)	4,643
Austin, Texas (a)	3,057		(1,793		)	1,264			19,129		(8,165		)	10,964
Corporate	615		(712		)	(97		)	712		772			1,484
Operating Properties	$	302,614	$	(119,681	)	$	182,933		$	280,198	$	(110,042	)	$	170,156

(a) On On April 3, 2014, the Company contributed Four Points Centre to an unconsolidated real estate venture. See Note 3 for further information on the contribution. On October 16, 2013, seven properties in the Austin portfolio where contributed to an unconsolidated real estate venture. Following the contribution of these properties, there are no wholly owned properties in the Austin, Texas segment.

(b) Includes property operating expense, real estate taxes and third party management expense.

Unconsolidated real estate ventures:
	Investment in real estate ventures, at equity				Equity in income (loss) of real estate ventures
	As of				Three-month periods ended June 30,						Six-month periods ended June 30,
	June 30, 2014		December 31, 2013		2014			2013			2014			2013
Philadelphia CBD	$	20,689	$	19,975	$	—		$	577		$	(21	)	$	1,143
Pennsylvania Suburbs	17,544		17,272		(391		)	558			(359		)	588
Metropolitan Washington, D.C.	61,604		59,905		(42		)	(35		)	25			(19		)
New Jersey/Delaware	—		—		103			167			122			1,075
Richmond, Virginia	1,295		1,400		115			243			69			236
Austin, Texas (a)	84,910		81,960		(274		)	(2		)	(83		)	20
Total	$	186,042	$	180,512	$	(489	)	$	1,508		$	(247	)	$	3,043

(a) Investment in real estate ventures does not include the negative investment balance of one real estate venture totaling $1.2 million as of June 30, 2014, which is included in other liabilities.

Net operating income (“NOI”) is an non-GAAP measure that 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 its 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. The following is a reconciliation of consolidated NOI to consolidated net income (loss), as defined by GAAP:

	Three-month periods ended June 30,						Six-month periods ended June 30,
	2014			2013			2014			2013
	(amounts in thousands)						(amounts in thousands)
Consolidated net operating income	$	92,793		$	85,671		$	182,933		$	170,156
Other income (expense):
Depreciation and amortization	(52,587		)	(49,241		)	(105,157		)	(98,717		)
General and administrative expenses	(6,005		)	(7,336		)	(14,186		)	(13,887		)
Interest income	385			122			770			180
Interest expense	(31,512		)	(30,437		)	(63,356		)	(61,351		)
Amortization of deferred financing costs	(1,197		)	(1,183		)	(2,386		)	(2,344		)
Interest expense - financing obligation	(316		)	(211		)	(588		)	(429		)
Equity in income (loss) of real estate ventures	(489		)	1,508			(247		)	3,043
Gain (Loss) on sale of undepreciated real estate	(3		)	—			1,184			—
Gain from remeasurement of investment in a real estate venture	458			7,847			458			7,847
Gain (Loss) on real estate venture transactions	(282		)	3,683			(417		)	3,683
Loss on early extinguishment of debt	—			(1,113		)	—			(1,116		)
Loss from continuing operations	1,245			9,310			(992		)	7,065
Income (loss) from discontinued operations	929			(2,130		)	921			4,034
Net income (loss)	$	2,174		$	7,180		$	(71	)	$	11,099