Segment Information |
SEGMENT INFORMATION
We have four reportable segments: office, medical office, retail, and multifamily. Office buildings provide office space for various types of businesses and professions. Medical office buildings provide offices and facilities for a variety of medical services. Retail centers are typically neighborhood grocery store or drug store anchored retail centers. Multifamily properties provide rental housing for families throughout the Washington metropolitan area.
Real estate rental revenue as a percentage of the total for each of the four reportable operating segments for the three years ended December 31, 2012 was as follows:
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Year Ended December 31, |
|
2012 |
|
2011 |
|
2010 |
Office |
50 |
% |
|
49 |
% |
|
47 |
% |
Medical office |
15 |
% |
|
15 |
% |
|
18 |
% |
Retail |
18 |
% |
|
18 |
% |
|
16 |
% |
Multifamily |
17 |
% |
|
18 |
% |
|
19 |
% |
The percentage of total income producing real estate assets, at cost, for each of the four reportable operating segments as of December 31, 2012 and 2011 was as follows:
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December 31, |
|
2012 |
|
2011 |
Office |
53 |
% |
|
52 |
% |
Medical office |
16 |
% |
|
17 |
% |
Retail |
17 |
% |
|
17 |
% |
Multifamily |
14 |
% |
|
14 |
% |
The accounting policies of each of the segments are the same as those described in note 2.
The following tables present revenues, net operating income, capital expenditures and total assets for the three years ended December 31, 2012 from these segments, and reconciles net operating income of reportable segments to net income attributable to the controlling interests as reported (in thousands):
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Year Ended December 31, 2012 |
|
Office |
|
Medical Office |
|
Retail |
|
Multifamily |
|
Corporate and Other |
|
Consolidated |
Real estate rental revenue |
$ |
152,916 |
|
|
$ |
44,674 |
|
|
$ |
54,506 |
|
|
$ |
52,887 |
|
|
$ |
— |
|
|
$ |
304,983 |
|
Real estate expenses |
55,113 |
|
|
14,994 |
|
|
12,702 |
|
|
20,467 |
|
|
— |
|
|
103,276 |
|
Net operating income |
$ |
97,803 |
|
|
$ |
29,680 |
|
|
$ |
41,804 |
|
|
$ |
32,420 |
|
|
$ |
— |
|
|
$ |
201,707 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
(103,067 |
) |
General and administrative |
|
|
|
|
|
|
|
|
|
|
(15,488 |
) |
Real estate impairment |
|
|
|
|
|
|
|
|
|
|
(2,097 |
) |
Acquisition costs |
|
|
|
|
|
|
|
|
|
|
(234 |
) |
Interest expense |
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|
|
|
|
|
|
|
|
(64,697 |
) |
Other income |
|
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|
|
|
|
|
|
|
|
975 |
|
Discontinued operations: |
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|
Income from properties sold or held for sale |
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|
|
|
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|
|
1,485 |
|
Gain on sale of real estate |
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|
|
|
|
|
|
|
|
5,124 |
|
Net income |
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|
|
|
|
|
|
|
|
23,708 |
|
Less: Net income attributable to noncontrolling interests |
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|
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|
|
|
|
|
— |
|
Net income attributable to the controlling interests |
|
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|
|
|
|
|
|
|
$ |
23,708 |
|
Capital expenditures |
$ |
35,330 |
|
|
$ |
7,004 |
|
|
$ |
2,977 |
|
|
$ |
5,869 |
|
|
$ |
555 |
|
|
$ |
51,735 |
|
Total assets |
$ |
1,140,046 |
|
|
$ |
327,573 |
|
|
$ |
355,585 |
|
|
$ |
249,503 |
|
|
$ |
51,669 |
|
|
$ |
2,124,376 |
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Year Ended December 31, 2011 |
|
Office |
|
Medical
Office
|
|
Retail |
|
Multifamily |
|
Industrial/Flex |
|
Corporate
and Other
|
|
Consolidated |
Real estate rental revenue |
$ |
138,325 |
|
|
$ |
44,431 |
|
|
$ |
50,421 |
|
|
$ |
50,979 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
284,156 |
|
Real estate expenses |
47,289 |
|
|
14,063 |
|
|
14,273 |
|
|
19,717 |
|
|
— |
|
|
— |
|
|
95,342 |
|
Net operating income |
$ |
91,036 |
|
|
$ |
30,368 |
|
|
$ |
36,148 |
|
|
$ |
31,262 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
188,814 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
(91,805 |
) |
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
(15,728 |
) |
Real estate impairment |
|
|
|
|
|
|
|
|
|
|
|
|
(14,526 |
) |
Acquisition costs |
|
|
|
|
|
|
|
|
|
|
|
|
(3,607 |
) |
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
(66,214 |
) |
Other income |
|
|
|
|
|
|
|
|
|
|
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|
1,144 |
|
Loss on extinguishment of debt |
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|
|
|
|
|
|
|
|
|
(976 |
) |
Discontinued operations: |
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Income from properties sold or held for sale |
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|
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|
|
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|
11,923 |
|
Gain on sale of real estate |
|
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|
|
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|
97,491 |
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
(1,138 |
) |
Net income |
|
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|
|
|
|
|
|
|
|
|
|
105,378 |
|
Less: Net income attributable to noncontrolling interests |
|
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|
|
|
|
|
|
|
|
|
|
(494 |
) |
Net income attributable to the controlling interests |
|
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|
|
|
|
|
|
|
|
|
|
$ |
104,884 |
|
Capital expenditures |
$ |
21,065 |
|
|
$ |
5,654 |
|
|
$ |
2,922 |
|
|
$ |
2,823 |
|
|
$ |
351 |
|
|
$ |
621 |
|
|
$ |
33,436 |
|
Total assets |
$ |
1,118,074 |
|
|
$ |
347,735 |
|
|
$ |
365,164 |
|
|
$ |
247,170 |
|
|
$ |
— |
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|
$ |
42,615 |
|
|
$ |
2,120,758 |
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Year Ended December 31, 2010 |
|
Office |
|
Medical Office |
|
Retail |
|
Multifamily |
|
Industrial/Flex |
|
Corporate and Other |
|
Consolidated |
Real estate rental revenue |
$ |
119,359 |
|
|
$ |
44,166 |
|
|
$ |
41,003 |
|
|
$ |
48,599 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
253,127 |
|
Real estate expenses |
40,676 |
|
|
14,516 |
|
|
10,310 |
|
|
19,243 |
|
|
— |
|
|
— |
|
|
84,745 |
|
Net operating income |
$ |
78,683 |
|
|
$ |
29,650 |
|
|
$ |
30,693 |
|
|
$ |
29,356 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
168,382 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
(78,483 |
) |
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
(14,406 |
) |
Acquisition costs |
|
|
|
|
|
|
|
|
|
|
|
|
(1,161 |
) |
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
(66,965 |
) |
Other income |
|
|
|
|
|
|
|
|
|
|
|
|
1,193 |
|
Loss on extinguishment of debt |
|
|
|
|
|
|
|
|
|
|
|
|
(9,176 |
) |
Gain from non-disposal activities |
|
|
|
|
|
|
|
|
|
|
|
|
7 |
|
Discontinued operations: |
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|
|
|
|
|
|
|
|
|
|
|
|
Income from properties sold or held for sale |
|
|
|
|
|
|
|
|
|
|
|
|
16,569 |
|
Gain on sale of real estate |
|
|
|
|
|
|
|
|
|
|
|
|
21,599 |
|
Net income |
|
|
|
|
|
|
|
|
|
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|
|
37,559 |
|
Less: Net income attributable to noncontrolling interests |
|
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|
|
|
|
|
|
|
|
|
|
(133 |
) |
Net income attributable to the controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
37,426 |
|
Capital expenditures |
$ |
13,983 |
|
|
$ |
4,986 |
|
|
$ |
1,982 |
|
|
$ |
2,387 |
|
|
$ |
1,707 |
|
|
$ |
392 |
|
|
$ |
25,437 |
|
Total assets |
$ |
938,638 |
|
|
$ |
353,508 |
|
|
$ |
313,003 |
|
|
$ |
228,769 |
|
|
$ |
225,206 |
|
|
$ |
108,757 |
|
|
$ |
2,167,881 |
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|