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Reportable Segments | 9 Months Ended
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Sep. 30, 2015
Segment Reporting [Abstract] |
REPORTABLE SEGMENTS | REPORTABLE SEGMENTS The Company has four reportable segments: Office, Retail, Land 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, where applicable. The Office and Retail segments show the results for that product type. The Land segment includes results of operations for residential and commercial land holdings. The Other segment includes:
• | fee income and related expenses for third party owned properties and joint venture properties for which the Company performs management, development and leasing services;
• | operations for mixed-use operating properties;
• | compensation for corporate employees;
• | general corporate overhead costs;
• | interest expense for consolidated and unconsolidated entities;
• | income attributable to noncontrolling interests;
• | income taxes;
• | depreciation; and
• | preferred dividends.
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 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 available to common stockholders on a total Company basis (in thousands):
Three Months Ended September 30, 2015 |  | Office |  | Retail |  | Land |  | Other |  | Total
Net operating income | $ | 59,328 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,488 |  |  | $ | 60,816 |
Sales less costs of sales | — |  |  | — |  |  | 3,016 |  |  | — |  |  | 3,016 |
Fee income | — |  |  | — |  |  | — |  |  | 1,686 |  |  | 1,686 |
Other income | — |  |  | — |  |  | — |  |  | 845 |  |  | 845 |
General and administrative expenses | — |  |  | — |  |  | — |  |  | (2,971 | ) |  | (2,971 | )
Reimbursed expenses | — |  |  | — |  |  | — |  |  | (686 | ) |  | (686 | )
Interest expense | — |  |  | — |  |  | — |  |  | (9,518 | ) |  | (9,518 | )
Other expenses | — |  |  | — |  |  | — |  |  | (721 | ) |  | (721 | )
Funds from operations available to common stockholders |  | $ | 59,328 |  |  | $ | — |  |  | $ | 3,016 |  |  | $ | (9,877 | ) |  | 52,467 |
Real estate depreciation and amortization, including Company's share of joint ventures |  |  |  |  |  |  |  |  |  | (35,014 | )
Gain on sale of depreciated investment properties, including Company's share of joint ventures |  |  |  |  |  |  |  |  |  | 36,167 |
Net income available to common stockholders |  |  |  |  |  |  |  |  |  | $ | 53,620 |
Three Months Ended September 30, 2014 |  | Office |  | Retail |  | Land |  | Other |  | Total
Net operating income |  | $ | 52,691 |  |  | $ | 1,221 |  |  | $ | — |  |  | $ | 1,200 |  |  | $ | 55,112 |
Sales less costs of sales |  | — |  |  | — |  |  | 82 |  |  | — |  |  | 82 |
Fee income |  | — |  |  | — |  |  | — |  |  | 1,802 |  |  | 1,802 |
Other income |  | — |  |  | — |  |  | — |  |  | 399 |  |  | 399 |
General and administrative expenses |  | — |  |  | — |  |  | — |  |  | (5,021 | ) |  | (5,021 | )
Reimbursed expenses |  | — |  |  | — |  |  | — |  |  | (783 | ) |  | (783 | )
Interest expense |  | — |  |  | — |  |  | — |  |  | (8,660 | ) |  | (8,660 | )
Other expenses |  | — |  |  | — |  |  | — |  |  | (1,255 | ) |  | (1,255 | )
Preferred stock dividends and original issuance costs |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Funds from operations available to common stockholders |  | $ | 52,691 |  |  | $ | 1,221 |  |  | $ | 82 |  |  | $ | (12,318 | ) |  | 41,676 |
Real estate depreciation and amortization, including Company's share of joint ventures |  |  |  |  |  |  |  |  |  | (35,347 | )
Gain on sale of depreciated investment properties including the Company's share of joint ventures |  |  |  |  |  |  |  |  |  | 12,993 |
Net income available to common stockholders |  |  |  |  |  |  |  |  |  | $ | 19,322 |
Nine Months Ended September 30, 2015 |  | Office |  | Retail |  | Land |  | Other |  | Total
Net operating income |  | $ | 175,331 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,312 |  |  | $ | 179,643 |
Sales less costs of sales |  | — |  |  | — |  |  | 3,502 |  |  | — |  |  | 3,502 |
Fee income |  | — |  |  | — |  |  | — |  |  | 5,206 |  |  | 5,206 |
Other income |  | — |  |  | — |  |  | — |  |  | 1,490 |  |  | 1,490 |
General and administrative expenses |  | — |  |  | — |  |  | — |  |  | (12,502 | ) |  | (12,502 | )
Reimbursed expenses |  | — |  |  | — |  |  | — |  |  | (2,514 | ) |  | (2,514 | )
Interest expense |  | — |  |  | — |  |  | — |  |  | (28,712 | ) |  | (28,712 | )
Other expenses |  | — |  |  | — |  |  | — |  |  | (2,473 | ) |  | (2,473 | )
Funds from operations available to common stockholders |  | $ | 175,331 |  |  | $ | — |  |  | $ | 3,502 |  |  | $ | (35,193 | ) |  | 143,640 |
Real estate depreciation and amortization, including Company's share of joint ventures |  |  |  |  |  |  |  |  |  | (110,759 | )
Gain on sale of depreciated investment properties, including Company's share of joint ventures |  |  |  |  |  |  |  |  |  | 35,893 |
Net income available to common stockholders |  |  |  |  |  |  |  |  |  | $ | 68,774 |
Nine Months Ended September 30, 2014 |  | Office |  | Retail |  | Land |  | Other |  | Total
Net operating income |  | $ | 149,110 |  |  | $ | 3,813 |  |  | $ | — |  |  | $ | 3,496 |  |  | $ | 156,419 |
Sales less costs of sales |  | — |  |  | — |  |  | 1,573 |  |  | 42 |  |  | 1,615 |
Fee income |  | — |  |  | — |  |  | — |  |  | 6,165 |  |  | 6,165 |
Other income |  | — |  |  | — |  |  | — |  |  | 4,563 |  |  | 4,563 |
General and administrative expenses |  | — |  |  | — |  |  | — |  |  | (16,472 | ) |  | (16,472 | )
Reimbursed expenses |  | — |  |  | — |  |  | — |  |  | (2,703 | ) |  | (2,703 | )
Interest expense |  | — |  |  | — |  |  | — |  |  | (26,485 | ) |  | (26,485 | )
Other expenses |  | — |  |  | — |  |  | — |  |  | (2,974 | ) |  | (2,974 | )
Preferred stock dividends and original issuance costs |  | — |  |  | — |  |  | — |  |  | (6,485 | ) |  | (6,485 | )
Funds from operations available to common stockholders |  | $ | 149,110 |  |  | $ | 3,813 |  |  | $ | 1,573 |  |  | $ | (40,853 | ) |  | 113,643 |
Real estate depreciation and amortization, including Company's share of joint ventures |  |  |  |  |  |  |  |  |  | (110,319 | )
Gain on sale of depreciated investment properties, including Company's share of joint ventures |  |  |  |  |  |  |  |  |  | 18,975 |
Net income available to common stockholders |  |  |  |  |  |  |  |  |  | $ | 22,299 |
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;
• | Land 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. In addition, management reviews the operations of discontinued operations and its share of the operations of its joint ventures in the same manner as the operations of its wholly-owned properties included in the continuing operations. Therefore, the information in the tables below include the operations of discontinued operations and its share of joint ventures in the same categories as the operations of the properties included in continuing operations. Certain adjustments are required to reconcile the above segment information to the Company’s consolidated revenues. The following table reconciles information presented in the tables above to the Company’s consolidated revenues (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Net operating income | $ | 60,816 |  |  | $ | 55,112 |  |  | $ | 179,643 |  |  | $ | 156,419 |
Sales less cost of sales | 3,016 |  |  | 82 |  |  | 3,502 |  |  | 1,615 |
Fee income | 1,686 |  |  | 1,802 |  |  | 5,206 |  |  | 6,165 |
Other income | 845 |  |  | 399 |  |  | 1,490 |  |  | 4,563 |
Rental property operating expenses | 41,331 |  |  | 38,685 |  |  | 120,672 |  |  | 109,501 |
Cost of sales on residential lot sales | — |  |  | 55 |  |  | — |  |  | 325 |
Net operating income in joint ventures | (6,132 | ) |  | (6,601 | ) |  | (18,102 | ) |  | (19,748 | )
Sales less cost of sales in joint ventures | (2,038 | ) |  | — |  |  | (2,280 | ) |  | (47 | )
Net operating (income) loss in discontinued operations | — |  |  | (341 | ) |  | 14 |  |  | (1,798 | )
Other income in discontinued operations and in joint ventures | (129 | ) |  | (14 | ) |  | (479 | ) |  | (29 | )
Termination fees in discontinued operations and in joint ventures | (271 | ) |  | — |  |  | (419 | ) |  | (74 | )
Gain on land sales (included in gain on investment properties) | (978 | ) |  | (81 | ) |  | (1,222 | ) |  | (1,566 | )
Total consolidated revenues | $ | 98,146 |  |  | $ | 89,098 |  |  | $ | 288,025 |  |  | $ | 255,326 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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