XML 31 R25.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2012
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION As of September 30, 2012, the Company was managing its portfolio within seven segments: (1) Pennsylvania, (2) Philadelphia Central Business District (CBD), (3) Metropolitan Washington D.C, (4) New Jersey/Delaware, (5) Richmond, Virginia, (6) Austin, Texas and (7) California. The Pennsylvania segment includes properties in Chester, Delaware, and Montgomery counties in the Philadelphia suburbs. The Philadelphia CBD segment includes properties located in the City of Philadelphia in Pennsylvania. The Metropolitan Washington, D.C. segment includes properties in Northern Virginia and southern Maryland. The New Jersey/Delaware segment includes properties in Burlington, Camden and Mercer counties in New Jersey and in New Castle county in the state of Delaware. The Richmond, Virginia segment includes properties primarily in Albemarle, Chesterfield, Goochland and Henrico counties and one property in Durham, North Carolina. The Austin, Texas segment includes properties in Austin. The California segment includes properties in Oakland, Concord, Carlsbad and Rancho Bernardo. The corporate group is responsible for cash and investment management, development of certain real estate properties during the construction period, and certain other general support functions. Land held for development and construction in progress are transferred to operating properties by region upon completion of the associated construction or project. Segment information is as follows (in thousands):
| Pennsylvania Suburbs |  | Philadelphia CBD |  | Metropolitan, D.C. |  | New Jersey/Delaware |  | Richmond, Virginia |  | Austin, Texas |  | California |  | Corporate |  | Total
As of September 30, 2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate investments, at cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating properties | $ | 1,174,597 |  |  | $ | 962,235 |  |  | $ | 1,189,014 |  |  | $ | 545,104 |  |  | $ | 308,371 |  |  | $ | 259,304 |  |  | $ | 221,664 |  |  | $ | — |  |  | $ | 4,660,289 |
Construction-in-progress |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 43,449 |  |  | 43,449 |
Land inventory |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 95,500 |  |  | 95,500 |
As of December 31, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate investments, at cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating properties | $ | 1,218,071 |  |  | $ | 953,870 |  |  | $ | 1,255,803 |  |  | $ | 545,657 |  |  | $ | 307,698 |  |  | $ | 257,694 |  |  | $ | 254,287 |  |  | $ | — |  |  | $ | 4,793,080 |
Construction-in-progress |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 25,083 |  |  | 25,083 |
Land inventory |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 109,008 |  |  | 109,008 |
For the three-months ended September 30, 2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue | $ | 38,526 |  |  | $ | 33,025 |  |  | $ | 26,516 |  |  | $ | 20,553 |  |  | $ | 8,826 |  |  | $ | 8,275 |  |  | $ | 5,141 |  |  | $ | (479 | ) |  | $ | 140,383 |
Property operating expenses, real estate taxes and third party management expenses | 13,588 |  |  | 12,431 |  |  | 10,637 |  |  | 10,030 |  |  | 3,762 |  |  | 3,484 |  |  | 2,639 |  |  | (504 | ) |  | 56,067 |
Net operating income | $ | 24,938 |  |  | $ | 20,594 |  |  | $ | 15,879 |  |  | $ | 10,523 |  |  | $ | 5,064 |  |  | $ | 4,791 |  |  | $ | 2,502 |  |  | $ | 25 |  |  | $ | 84,316 |
For the three-months ended September 30, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue | $ | 36,812 |  |  | $ | 31,097 |  |  | $ | 29,296 |  |  | $ | 20,743 |  |  | $ | 9,334 |  |  | $ | 7,453 |  |  | $ | 4,968 |  |  | $ | (302 | ) |  | $ | 139,401 |
Property operating expenses, real estate taxes and third party management expenses | 13,493 |  |  | 11,539 |  |  | 10,868 |  |  | 10,008 |  |  | 3,664 |  |  | 3,233 |  |  | 3,009 |  |  | (443 | ) |  | 55,371 |
Net operating income | $ | 23,319 |  |  | $ | 19,558 |  |  | $ | 18,428 |  |  | $ | 10,735 |  |  | $ | 5,670 |  |  | $ | 4,220 |  |  | $ | 1,959 |  |  | $ | 141 |  |  | $ | 84,030 |
For the nine-months ended September 30, 2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue | $ | 113,565 |  |  | $ | 98,086 |  |  | $ | 79,919 |  |  | $ | 61,442 |  |  | $ | 26,762 |  |  | $ | 23,959 |  |  | $ | 14,942 |  |  | $ | (1,305 | ) |  | $ | 417,370 |
Property operating expenses, real estate taxes and third party management expenses | 39,643 |  |  | 37,082 |  |  | 31,158 |  |  | 28,697 |  |  | 10,875 |  |  | 10,497 |  |  | 7,498 |  |  | (1,278 | ) |  | 164,172 |
Net operating income | $ | 73,922 |  |  | $ | 61,004 |  |  | $ | 48,761 |  |  | $ | 32,745 |  |  | $ | 15,887 |  |  | $ | 13,462 |  |  | $ | 7,444 |  |  | $ | (27 | ) |  | $ | 253,198 |
For the nine-months ended September 30, 2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total revenue | $ | 111,949 |  |  | $ | 93,520 |  |  | $ | 89,936 |  |  | $ | 60,554 |  |  | $ | 27,409 |  |  | $ | 23,203 |  |  | $ | 14,551 |  |  | $ | (855 | ) |  | $ | 420,267 |
Property operating expenses, real estate taxes and third party management expenses | 42,112 |  |  | 34,962 |  |  | 34,002 |  |  | 30,611 |  |  | 10,666 |  |  | 9,740 |  |  | 8,015 |  |  | (991 | ) |  | 169,117 |
Net operating income | $ | 69,837 |  |  | $ | 58,558 |  |  | $ | 55,934 |  |  | $ | 29,943 |  |  | $ | 16,743 |  |  | $ | 13,463 |  |  | $ | 6,536 |  |  | $ | 136 |  |  | $ | 251,150 |
Net operating income (“NOI”) is defined as total revenue less property operating expenses, real estate taxes and third party management expenses. Segment NOI includes revenue, real estate taxes and property operating expenses directly related to operation and management of the properties owned and managed within the respective geographical region. Segment NOI excludes property level depreciation and amortization, revenue and expenses directly associated with third party real estate management services, expenses associated with corporate administrative support services, and inter-company eliminations. NOI also does not reflect general and administrative expenses, interest expenses, real estate impairment losses, depreciation and amortization costs, capital expenditures and leasing costs. Trends in development and construction activities that could materially impact the Company’s results from operations are also not reflected in NOI. All companies may not calculate NOI in the same manner. NOI is the measure that is used by the Company to evaluate the operating performance of its real estate assets by segment. The Company also believes that NOI provides useful information to investors regarding its financial condition and results of operations because it reflects only those income and expenses recorded at the property level. The Company believes that net income, as defined by GAAP, is the most appropriate earnings measure. Below is a reconciliation of consolidated NOI to consolidated net income (loss), as defined by GAAP:
| Three-month periods ended September 30, |  | Nine-month periods ended September 30,
| 2012 |  | 2011 |  | 2012 |  | 2011
| (amounts in thousands) |  | (amounts in thousands)
Consolidated net operating income | $ | 84,316 |  |  | $ | 84,030 |  |  | $ | 253,198 |  |  | $ | 251,150 |
Less: |  |  |  |  |  |  |
Interest expense | (32,620 | ) |  | (32,346 | ) |  | (99,745 | ) |  | (99,477 | )
Deferred financing costs | (1,218 | ) |  | (1,846 | ) |  | (3,790 | ) |  | (3,844 | )
Depreciation and amortization | (48,738 | ) |  | (51,943 | ) |  | (147,618 | ) |  | (157,157 | )
Administrative expenses | (6,080 | ) |  | (6,177 | ) |  | (18,209 | ) |  | (18,311 | )
Plus: |  |  |  |  |  |  |
Interest income | 311 |  |  | 523 |  |  | 2,635 |  |  | 1,385 |
Historic tax credit transaction income | 11,840 |  |  | 12,026 |  |  | 11,840 |  |  | 12,026 |
Interest expense - financing obligation | (230 | ) |  | — |  |  | (608 | ) |  | — |
Equity in income of real estate ventures | 500 |  |  | 418 |  |  | 1,382 |  |  | 2,739 |
Net gain on sales of interests in real estate | — |  |  | — |  |  | — |  |  | 2,791 |
Loss on real estate venture formation | (950 | ) |  | — |  |  | (950 | ) |  | — |
Gain (loss) on early extinguishment of debt | (51 | ) |  | 176 |  |  | (1,549 | ) |  | (580 | )
Income (loss) from continuing operations | 7,080 |  |  | 4,861 |  |  | (3,414 | ) |  | (9,278 | )
Income from discontinued operations | 10,009 |  |  | 1,750 |  |  | 36,641 |  |  | 9,165 |
Net income (loss) | $ | 17,089 |  |  | $ | 6,611 |  |  | $ | 33,227 |  |  | $ | (113 | )

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

X
- 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 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: 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=6534315&loc=d3e8906-108599 Reference 3: 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=6534315&loc=d3e8933-108599 Reference 4: 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=6534315&loc=d3e8984-108599 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=6534315&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 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: 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=6534315&loc=d3e9054-108599 Reference 8: 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=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: 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=6534315&loc=d3e8981-108599 Reference 11: 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=6534315&loc=d3e8971-108599 Reference 12: 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=6534315&loc=d3e8844-108599 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=6534315&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 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: 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=6534315&loc=d3e9038-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration