Real Estate Investments (Tables)

12 Months Ended

Dec. 31, 2015

Real Estate Investments, Net [Abstract]

Schedule of Real Estate Properties [Table Text Block]

As of December 31, 2015 and 2014, our real estate investment portfolio, at cost, consists of properties as follows (in thousands):



	December 31,
	2015		2014
Office	$	1,554,334	$	1,502,052
Retail	442,039		463,716
Multifamily	641,424		505,185
	$	2,637,797	$	2,470,953

Schedule of Dispositions

During the three years ended December 31, 2015, we sold our interests in the following properties (in thousands):



Disposition Date	Property	Type	Gain on Sale
March 20, 2015	Country Club Towers	Multifamily	$	30,277
September 9, 2015	1225 First Street ⁽¹⁾	Multifamily	—
October 21, 2015	Munson Hill Towers	Multifamily	51,395
December 14, 2015	Montgomery Village Center	Retail	7,981
		Total 2015 ⁽²⁾	$	89,653

January 21, 2014	Medical Office Portfolio Transactions III & IV ⁽³⁾	Medical Office	$	105,985
May 2, 2014	5740 Columbia Road	Retail	570
		Total 2014	$	106,555

March 19, 2013	Atrium Building	Office	$	3,195
November 2013	Medical Office Portfolio Transactions I & II ⁽⁴⁾	Medical Office / Office	18,949
		Total 2013	$	22,144

⁽¹⁾ Interest in land held for future development.

⁽²⁾Excludes gain related to parcel of land at Montrose Shopping Center condemned as part of an eminent domain taking action (see note 3 under "Properties Sold").

⁽³⁾ Woodburn Medical Park I and II and Prosperity Medical Center I, II and III.

⁽⁴⁾ 2440 M Street, 15001 Shady Grove Road, 15505 Shady Grove Road, 19500 at Riverside Park (formerly Lansdowne Medical Office Building), 9707 Medical Center Drive, CentreMed I and II, 8301 Arlington Boulevard, Sterling Medical Office Building, Shady Grove Medical Village II, Alexandria Professional Center, Ashburn Farm Office Park I, Ashburn Farm Office Park II, Ashburn Farm Office Park III, Woodholme Medical Office Building, two office properties (6565 Arlington Boulevard and Woodholme Center) and undeveloped land at 4661 Kenmore Avenue.

The cost of our real estate portfolio under development or held for future development as of December 31, 2015 and 2014 is as follows (in thousands):



	December 31,
	2015		2014
Office	$	18,711	$	36,379
Retail	1,076		500
Multifamily	16,307		39,356
	$	36,094	$	76,235

Income from properties classified as discontinued operations by property or disposal group for the three years ended December 31, 2015 was as follows (in thousands):



		Year Ending December 31,
Property	Segment	2015		2014		2013
Atrium Building	Office	$	—	$	—	$	185
Medical Office Portfolio	Medical/Office	—		546		15,210
		$	—	$	546	$	15,395

Income from properties classified as discontinued operations for the three years ended December 31, 2015 was as follows (in thousands):



	Year Ending December 31,
	2015		2014			2013
Revenues	$	—	$	892		$	45,791
Property expenses	—		(346		)	(17,039		)
Depreciation and amortization	—		—			(12,161		)
Interest expense	—		—			(1,196		)
	$	—	$	546		$	15,395

We sold our interests in the following properties during the three years ended December 31, 2015:



Disposition Date	Property	Segment	# of units (unaudited)	Rentable Square Feet (unaudited)	Contract Sales Price (in thousands)		Gain on Sale (in thousands)
March 20, 2015	Country Club Towers ⁽¹⁾	Multifamily	227	N/A	$	37,800	$	30,277
September 9, 2015	1225 First Street ^{(1), (2)}	Multifamily	N/A	N/A	14,500		—
October 21, 2015	Munson Hill Towers ⁽¹⁾	Multifamily	279	N/A	57,050		51,395
December 14, 2015	Montgomery Village Center ⁽¹⁾	Retail	N/A	197,000	27,750		7,981
		Total 2015	506	197,000	$	137,100	$	89,653

January 21, 2014	Medical Office Portfolio Transactions III & IV ⁽³⁾	Medical Office	N/A	427,000	$	193,561	$	105,985
May 2, 2014	5740 Columbia Road ⁽¹⁾	Retail	N/A	3,000	1,600		570
		Total 2014	N/A	430,000	$	195,161	$	106,555

March 19, 2013	Atrium Building	Office	N/A	79,000	$	15,750	$	3,195
Various	Medical Office Portfolio Transactions I & II	Medical Office/ Office	N/A	1,093,000	307,189		18,949
		Total 2013	N/A	1,172,000	$	322,939	$	22,144

⁽¹⁾These properties are classified as continuing operations. All other sold properties are classified as discontinued operations.

⁽²⁾ Interest in land held for future development.

⁽³⁾

Schedule Of Real Estate Property Acquired [Table Text Block]

Our current strategy is to recycle legacy assets that lack the income growth potential we seek and to invest in high-quality assets with compelling value-add returns through redevelopment opportunities in our existing portfolio and acquisitions that meet our stringent investment criteria. We focus on properties inside the Washington metro region’s Beltway, near major transportation nodes and in areas with strong employment drivers and superior growth demographics. Properties and land for development acquired during the three years ended December 31, 2015 were as follows:

Acquisition Date

Property

Type

# of units (unaudited)

Rentable

Square Feet

(unaudited)

Contract

Purchase Price

(in thousands)

July 1, 2015

The Wellington

Multifamily

711

N/A

167,000

February 21, 2014

Yale West

Multifamily

216

N/A

73,000

March 26, 2014

The Army Navy Club Building

Office

N/A

108,000

79,000

May 1, 2014

1775 Eye Street, NW

Office

N/A

185,000

104,500

October 1, 2014

Spring Valley Retail Center

Retail

N/A

75,000

40,500

Total 2014

216

368,000

297,000

October 1, 2013

The Paramount

Multifamily

135

N/A

48,200

Revenue and Earnings From Acquisition [Table Text Block]

The revenue and earnings of our acquisitions during their year of acquisition for the three years ended December 31, 2015 are as follows (in thousands):



	Year Ended December 31,
	2015			2014			2013
Real estate rental revenue	$	6,797		$	16,260		$	907
Net loss	(2,748		)	(3,168		)	(105		)

Total Purchase Price Of Acquisitions [Table Text Block]

We have recorded the total purchase price of the above acquisitions as follows (in thousands):



	2015		2014			2013
Land	$	30,548	$	104,403		$	8,568
Land held for development	15,000		—			—
Buildings	116,563		172,671			37,930
Tenant origination costs	—		9,377			32
Leasing commissions/absorption costs	4,889		16,474			943
Net lease intangible assets	—		7,331			102
Net lease intangible liabilities	—		(8,323		)	(117		)
Fair value of assumed mortgage	—		(107,125		)	—
Furniture, fixtures & equipment	—		932			742
Total	$	167,000	$	195,740		$	48,200

Business Acquisition, Pro Forma Information [Table Text Block]

The following unaudited pro-forma combined condensed statements of operations set forth the consolidated results of operations for the years ended December 31, 2015 and 2014 as if the above described acquisition in 2015 had occurred on January 1, 2014. The pro forma adjustments include reclassifying costs related to the above-described acquisition to 2014. The unaudited pro-forma information does not purport to be indicative of the results that actually would have occurred if the acquisitions had been in effect for the years ended December 31, 2015 and 2014. The unaudited data presented is in thousands, except per share data.



	Year Ended December 31,
	2015		2014
Real estate revenues	$	313,114	$	302,120
Income from continuing operations	$	96,735	$	4,466
Net income	$	96,735	$	110,997
Diluted earnings per share	$	1.41	$	1.66

Schedule Of Accounts Payable And Accrued Liabilities Of Joint Ventures [Table Text Block]

As of December 31, 2015 and 2014, The Maxwell's liabilities were as follows (in thousands):



	December 31,
	2015		2014
Mortgage notes payable, net	$	32,214	$	27,690
Accounts payable and other liabilities	256		2,196
Tenant security deposits	82		17
	$	32,552	$	29,903

schedule of assets in joint venture [Table Text Block]

As of December 31, 2015 and 2014, The Maxwell's assets were as follows (in thousands):



	December 31,
	2015			2014
Land	$	12,851		$	12,851
Income producing property	37,791			18,432
Accumulated depreciation and amortization	(2,347		)	—
Properties under development or held for future development	—			17,947
Other assets	1,188			—
	$	49,483		$	49,230

Schedule of income statement results for medical office segment sold [Table Text Block] [Table Text Block]

The impact of the sale of our medical office segment on revenues and net income is summarized as follows (in thousands, except per share data):



	Year Ending December 31,
	2015		2014		2013
Real estate revenues	$	—	$	892	$	41,012
Net income	—		546		14,044
Basic and diluted net income per share	—		0.01		0.21