Equity and Capital

Preferred Stock of the Parent Company

Issuances:

On February 16, 2012, the Parent Company issued 10 million shares of 6.625% Series 6 Cumulative Redeemable Preferred Stock with a liquidation preference of $25 per share resulting in proceeds of $241.4 million, net of issuance costs, which were subsequently contributed to the Operating Partnership to redeem similar preferred unit interests as further discussed below.

On August 23, 2012, the Parent Company issued 3 million shares of 6.00% Series 7 Cumulative Redeemable Preferred Stock with a liquidation preference of $25 per share resulting in proceeds of $72.5 million, net of issuance costs, which were subsequently used to redeem the Company's Series 5 Cumulative Redeemable Preferred Stock as further discussed below.

The Series 6 and 7 preferred shares are perpetual, absent a change in control of the Parent Company, are not convertible into common stock of the Parent Company, and are redeemable at par upon the Company’s election beginning five years after the issuance date. None of the terms of the preferred stock contain any unconditional obligations that would require the Company to redeem the securities at any time or for any purpose.

Redemptions:

On March 31, 2012, the Parent Company redeemed all issued and outstanding shares of its Series 3 and Series 4 Cumulative Redeemable Preferred Stock and on September 13, 2012, the Parent Company redeemed all issued and outstanding shares of its Series 5 Cumulative Redeemable Preferred Stock. These redemptions resulted in a reduction to net income available to common stockholders through non-cash charges of $7.0 million and $2.3 million, respectively, related to original issuance costs, which are included within the following financial statement line items:



Parent Company	Financial Statement Line Item
Consolidated Statements of Operations	Preferred stock dividends
Consolidated Statements of Equity	Redemption of preferred stock
Operating Partnership
Consolidated Statements of Operations	Preferred unit distributions
Consolidated Statements of Capital	Preferred units issued as a result of preferred stock issued by Parent Company, net of redemptions and issuance costs

Terms and conditions of the preferred stock outstanding at December 31, 2012 and 2011 are summarized as follows:



	Preferred Stock Outstanding at December 31, 2012
Series	Shares Outstanding	Liquidation Preference		Distribution Rate		Callable By Company
Series 6	10,000,000	$	250,000,000	6.625	%	2/16/2017
Series 7	3,000,000	75,000,000		6.000	%	8/23/2017
	13,000,000	$	325,000,000



	Preferred Stock Outstanding at December 31, 2011
Series	Shares Outstanding	Liquidation Preference		Distribution Rate		Callable By Company
Series 3	3,000,000	$	75,000,000	7.450	%	4/3/2008
Series 4	5,000,000	125,000,000		7.250	%	8/31/2009
Series 5	3,000,000	75,000,000		6.700	%	8/2/2010
	11,000,000	$	275,000,000

Common Stock of the Parent Company

Issuances:

On August 10, 2012, the Parent Company entered into an at-the-market ("ATM") equity distribution agreement under which the Company may from time to time offer and sell up to $150.0 million of our common stock. The net proceeds are expected to fund potential acquisition opportunities, fund our development or redevelopment activities, repay amounts outstanding under our revolving credit facility and/or for general corporate purposes. During the year ended December 31, 2012, 442,786 shares were issued and sold at a weighted average price per share of $49.70 for proceeds of $21.5 million, net of commissions of approximately $331,000 and issuance costs of approximately $135,000. As of December 31, 2012, we had the capacity to issue $128.0 million in common stock under our ATM equity program.

On March 9, 2011, the Parent Company settled its forward sale agreements dated December 4, 2009 (the "Forward Equity Offering") with J.P. Morgan and Wells Fargo Securities by delivering an aggregate 8 million shares of common stock. Upon physical settlement of the Forward Equity Offering, the Company received net proceeds of$215.4 million. The Company used a portion of the proceeds to repay the Line, which had been drawn upon to repay unsecured notes of $161.7 million that matured in January 2011.

Preferred Units of the Operating Partnership

Issuances:

Series 6 and Series 7 preferred unit interests were issued to the Parent Company in relation to the Parent Company's issuance of 6.625% Series 6 Cumulative Redeemable Preferred Stock and 6.00% Series 7 Cumulative Redeemable Preferred Stock as discussed above.

Redemptions:

On February 9, 2012, the Operating Partnership purchased all of its issued and outstanding Series D Preferred Units at 3.75% discount to par, resulting in an increase to net income available to common stockholders of $1.0 million, related to the discount offset by the write-off of the original issuance costs. This amount is included in preferred unit loss attributable to noncontrolling interests in the parent company's consolidated statements of operations and in preferred unit distributions in the operating partnership's consolidated statement of operations.

Terms and conditions for the Series D preferred units outstanding as of December 31, 2011 are summarized as follows:



Units Outstanding	Amount Outstanding		Distribution Rate		Callable by Company	Exchangeable by Unit holder
500,000	$	50,000,000	7.45	%	9/29/2009	1/1/2014

The Series 3, 4 and 5 preferred unit interests owned by the Parent Company, as general partner, were redeemed in conjunction with the Parent Company's redemption of its Series 3, Series 4, and Series 5 Cumulative Redeemable Preferred Stock as discussed above.

Common Units of the Operating Partnership

Issuances:

Common units were issued to the Parent Company in relation to the Parent Company's issuance of common stock, as discussed above.

General Partner

As of December 31, 2012 and 2011, the Parent Company, as general partner, owned approximately 99.8% or 90,394,486 of the total 90,571,650 Partnership Units outstanding and approximately 99.8% or 89,921,858 of the total 90,099,022 Partnership Units outstanding, respectively.

Limited Partners

The Operating Partnership had 177,164 limited Partnership Units outstanding as of December 31, 2012 and 2011.

Noncontrolling Interests of Limited Partners' Interests in Consolidated Partnerships

Limited partners’ interests in consolidated partnerships not owned by the Company are classified as noncontrolling interests on the accompanying Consolidated Balance Sheets of the Parent Company. Subject to certain conditions and pursuant to the conditions of the agreement, the Company has the right, but not the obligation, to purchase the other member’s interest or sell its own interest in these consolidated partnerships. At December 31, 2012 and 2011, the Company’s noncontrolling interest in these consolidated partnerships was $16.3 million and $13.1 million, respectively.

Accumulated Other Comprehensive Loss

The following table presents changes in the balances of each component of accumulated other comprehensive loss for the year ended December 31, 2012 (in thousands):



		Loss on Settlement of Derivative Instruments		Fair Value of Derivative Instruments	Accumulated Other Comprehensive Income (Loss)
Beginning balance	$	(71,438	)	9	(71,429	)
Net gain on cash flow derivative instruments		—		4,255	4,255
Amounts reclassified from accumulated other comprehensive income		9,447		12	9,459
Net current-period other comprehensive income		9,447		4,267	13,714
Ending balance	$	(61,991	)	4,276	(57,715	)