Partners Equity of The Operating Partnership

6 Months Ended

Jun. 30, 2011

Partners Equity of The Operating Partnership [Abstract]

PARTNERS' EQUITY OF THE OPERATING PARTNERSHIP

13. PARTNERS’ EQUITY OF THE OPERATING PARTNERSHIP

Earnings per Common Partnership Unit

The following table details the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding):


	Three-month periods ended June 30,
	2011						2010
	Basic			Diluted			Basic			Diluted

Numerator
Loss from continuing operations	$	(10,127	)	$	(10,127	)	$	(5,868	)	$	(5,868	)

Amount allocable to unvested restricted unitholders		(121	)		(121	)		(128	)		(128	)
Preferred unit dividends		(1,998	)		(1,998	)		(1,998	)		(1,998	)

Loss from continuing operations available to common unitholders		(12,246	)		(12,246	)		(7,994	)		(7,994	)

Discontinued operations attributable to common unitholders		3,893			3,893			268			268


Net loss attributable to common unitholders	$	(8,353	)	$	(8,353	)	$	(7,726	)	$	(7,726	)


Denominator
Weighted-average units outstanding		145,220,764			145,220,764			134,320,032			134,320,032

Earnings per Common Share:
Loss from continuing operations attributable to common unitholders	$	(0.09	)	$	(0.09	)	$	(0.06	)	$	(0.06	)
Discontinued operations attributable to common unitholders		0.03			0.03			—			—

Net loss attributable to common unitholders	$	(0.06	)	$	(0.06	)	$	(0.06	)	$	(0.06	)


	Six-month periods ended June 30,
	2011						2010
	Basic			Diluted			Basic			Diluted

Numerator
Loss from continuing operations	$	(10,623	)	$	(10,623	)	$	(13,023	)	$	(13,023	)

Amount allocable to unvested restricted unitholders		(263	)		(263	)		(256	)		(256	)
Preferred unit dividends		(3,996	)		(3,996	)		(3,996	)		(3,996	)

Loss from continuing operations available to common unitholders		(14,882	)		(14,882	)		(17,275	)		(17,275	)

Discontinued operations attributable to common unitholders		3,899			3,899			7,024			7,024


Net loss attributable to common unitholders	$	(10,983	)	$	(10,983	)	$	(10,251	)	$	(10,251	)


Denominator
Weighted-average units outstanding		144,852,515			144,852,515			132,955,961			132,955,961

Earnings per Common Share:
Loss from continuing operations attributable to common unitholders	$	(0.11	)	$	(0.11	)	$	(0.13	)	$	(0.13	)
Discontinued operations attributable to common unitholders		0.03			0.03			0.05			0.05

Net loss attributable to common unitholders	$	(0.08	)	$	(0.08	)	$	(0.08	)	$	(0.08	)

Unvested restricted units are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per share. For the six-months ended June 30, 2011 and 2010, earnings representing nonforfeitable dividends as noted in the table above were allocated to the unvested restricted units.

Common Partnership Unit and Preferred Mirror Units

On June 1, 2011, the Operating Partnership declared a distribution of $0.15 per common partnership unit, totaling $20.5 million, which was paid on July 20, 2011 to unitholders of record as of July 6, 2011.

On June 1, 2011, the Operating Partnership declared distributions on its Series D Preferred Mirror Units and Series E Preferred Mirror Units to holders of record as of June 30, 2011. These units are entitled to a preferential return of 7.50% and 7.375%, respectively. Distributions paid on July 15, 2011 to holders of Series D Preferred Mirror Units and Series E Preferred Mirror Units totaled $0.9 million and $1.1 million, respectively.

During the six-month period ended June 30, 2011, the Parent Company contributed net proceeds amounting to $8.0 million from the sale of 679,285 common shares under its Offering Program to the Operating Partnership in exchange for the issuance of 679,285 common partnership units to the Parent Company. The Operating Partnership used the net proceeds from the sales to repay balances on its unsecured revolving Credit Facility and for general corporate purposes.

The Operating Partnership issued 7,111,112 Class F (2010) Units on August 5, 2010 in connection with its acquisition of Three Logan Square. The Class F (2010) Units were valued based on the closing market price of the Parent Company’s common shares on the acquisition date ($11.54) less $0.60 to reflect that these units do not begin to accrue a dividend prior to the first anniversary of their issuance. The Class F (2010) Units are subject to redemption at the option of the holders after the first anniversary of the acquisition. The Operating Partnership may, at its option, satisfy the redemption either for an amount, per unit, of cash equal to the market price of one of the Parent Company’s common share (based on the five-day trading average ending on the date of the exchange) or for one of the Parent Company’s common shares. The redemption value of these Class F (2010) Units and the other redeemable limited partnership units are presented in the mezzanine section of the Operating Partnership’s balance sheet because they can be redeemed in cash or with Parent Company common shares.

Common Unit Repurchases

The Parent Company did not purchase any shares during the six months ended June 30, 2011 and accordingly, during the six months ended June 30, 2011, the Operating Partnership did not repurchase any units in connection with the Parent Company’s share repurchase program.