Annual report pursuant to Section 13 and 15(d)

Segment Information

v2.4.0.6
Segment Information
12 Months Ended
Dec. 31, 2012
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
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:
 
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:
 
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):
 
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
 
 
 
 
 
 
 
 
 
 
(64,697
)
Other income
 
 
 
 
 
 
 
 
 
 
975

Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
Income from properties sold or held for sale
 
 
 
 
 
 
 
 
 
 
1,485

Gain on sale of real estate
 
 
 
 
 
 
 
 
 
 
5,124

Net income
 
 
 
 
 
 
 
 
 
 
23,708

Less: Net income attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
 

Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
 
 
$
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

 
 
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
 
 
 
 
 
 
 
 
 
 
 
 
1,144

Loss on extinguishment of debt
 
 
 
 
 
 
 
 
 
 
 
 
(976
)
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from properties sold or held for sale
 
 
 
 
 
 
 
 
 
 
 
 
11,923

Gain on sale of real estate
 
 
 
 
 
 
 
 
 
 
 
 
97,491

Income tax expense
 
 
 
 
 
 
 
 
 
 
 
 
(1,138
)
Net income
 
 
 
 
 
 
 
 
 
 
 
 
105,378

Less: Net income attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
(494
)
Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
 
 
 
 
$
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

 
$

 
$
42,615

 
$
2,120,758

 
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from properties sold or held for sale
 
 
 
 
 
 
 
 
 
 
 
 
16,569

Gain on sale of real estate
 
 
 
 
 
 
 
 
 
 
 
 
21,599

Net income
 
 
 
 
 
 
 
 
 
 
 
 
37,559

Less: Net income attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
 
 
 
(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