XML 43 R13.htm IDEA: XBRL DOCUMENT ﻿
v2.3.0.11

Investment in Unconsolidated Ventures | 6 Months Ended
--- | ---
Jun. 30, 2011
Investment in Unconsolidated Ventures [Abstract] |
INVESTMENT IN UNCONSOLIDATED VENTURES | 4. INVESTMENT IN UNCONSOLIDATED VENTURES As of June 30, 2011, the Company had an aggregate investment of approximately $82.9 million in 16 unconsolidated Real Estate Ventures. The Company formed these ventures with unaffiliated third parties, or acquired interests in them, to develop or manage office properties or to acquire land in anticipation of possible development of office properties. As of June 30, 2011, 14 of the Real Estate Ventures owned 49 office buildings that contain an aggregate of approximately 6.1 million net rentable square feet; one Real Estate Venture owned three acres of undeveloped parcel of land; and one Real Estate Venture developed a hotel property that contains 137 rooms in Conshohocken, PA. The Company accounts for its unconsolidated interests in its Real Estate Ventures using the equity method. The Company’s unconsolidated interests range from 10% to 65%, subject to specified priority allocations of distributable cash in certain of the Real Estate Ventures. The amounts reflected in the following tables (except for the Company’s share of equity and income) are based on the historical financial information of the individual Real Estate Ventures. One of the Real Estate Ventures, acquired in connection with the Prentiss Properties Trust merger in 2006, had a negative equity balance on a historical cost basis as a result of historical depreciation and distributions of excess financing proceeds. The Company reflected its acquisition of this Real Estate Venture interest at its relative fair value as of the date of the merger. The difference between allocated cost and the underlying equity in the net assets of the investee is accounted for as if the entity were consolidated (i.e., allocated to the Company’s relative share of assets and liabilities with an adjustment to recognize equity in earnings for the appropriate additional depreciation/amortization). The Company does not record operating losses of the Real Estate Ventures in excess of its investment balance unless the Company is liable for the obligations of the Real Estate Venture or is otherwise committed to provide financial support to the Real Estate Venture. The following is a summary of the financial position of the Real Estate Ventures as of June 30, 2011 and December 31, 2010 (in thousands):
|  | June 30, |  |  | December 31, |
|  | 2011 |  |  | 2010 |
Net property |  | $ | 726,254 |  |  | $ | 804,705 |
Other assets |  |  | 99,589 |  |  |  | 105,576 |
Other liabilities |  |  | 39,583 |  |  |  | 44,509 |
Debt |  |  | 683,679 |  |  |  | 748,387 |
Equity |  |  | 102,581 |  |  |  | 117,385 |
Company’s share of equity (Company’s basis) |  |  | 82,927 |  |  |  | 84,372 |
The following is a summary of results of operations of the Real Estate Ventures for the three and six-month periods ended June 30, 2011 and 2010 (in thousands):
|  | Three-month periods |  |  | Six-month periods |
|  | ended June 30, |  |  | ended June 30, |
|  | 2011 |  |  | 2010 |  |  | 2011 |  |  | 2010 |
Revenue |  | $ | 32,722 |  |  | $ | 30,528 |  |  | $ | 72,398 |  |  | $ | 54,598 |
Operating expenses |  |  | 14,370 |  |  |  | 10,305 |  |  |  | 30,544 |  |  |  | 19,001 |
Interest expense, net |  |  | 9,550 |  |  |  | 9,270 |  |  |  | 21,673 |  |  |  | 17,008 |
Depreciation and amortization |  |  | 8,487 |  |  |  | 8,302 |  |  |  | 18,968 |  |  |  | 14,524 |
Net (loss) income |  |  | (315 | ) |  |  | 2,651 |  |  |  | (1,213 | ) |  |  | 4,065 |
Company’s share of income (Company’s basis) |  |  | 1,088 |  |  |  | 1,025 |  |  |  | 2,321 |  |  |  | 2,321 |
As of June 30, 2011, the Company had guaranteed repayment of approximately $0.7 million of loans on behalf of a Real Estate Venture. The Company also provides customary environmental indemnities in connection with construction and permanent financing both for its own account and on behalf of its Real Estate Ventures. On June 29, 2011, one of the unconsolidated Real Estate Ventures sold its only office building, a 347,620 net rentable square feet office property located in Conshohocken, Pennsylvania, for a sales price of $86.7 million. The property was 87.0% occupied as of the date of sale. The Company had a three percent ownership percentage in the Real Estate Venture and recognized $0.6 million of income from the sale as part of its equity in income from the Real Estate Venture. In November 2010, the Company acquired a 25% interest in two partnerships which own two office buildings in Philadelphia, Pennsylvania. The other partner holds the remaining 75% interest in each of the two partnerships. In connection with the closing, the Company contributed an initial $5.0 million, out of a total of $25.0 million of committed preferred equity. The Company expects to contribute the remaining $20.0 million by December 2012. Failure to fund the remaining commitment will result in an adjustment to the Company’s 25% limited partnership ownership percentage.

X
- Definition Equity investment disclosure, or group of investments for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20% of the voting stock and the investment is accounted for using the equity method, and the reasons why it is. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 20 + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap
Data Type: | us-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_InvestmentsInAffiliatesSubsidiariesAssociatesAndJointVenturesAbstract
Namespace Prefix: | us-gaap
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration