Annual report pursuant to Section 13 and 15(d)

Real Estate Investments (Tables)

v2.4.0.6
Real Estate Investments (Tables)
12 Months Ended
Dec. 31, 2012
Real Estate Investments, Net [Abstract]  
Investment
As of December 31, 2012 and 2011, our real estate investment portfolio, at cost, consists of properties as follows (in thousands):
 
December 31,
 
2012
 
2011
Office
$
1,315,633

 
$
1,234,499

Medical office
403,064

 
396,532

Retail
411,948

 
408,897

Multifamily
331,901

 
324,957

 
$
2,462,546

 
$
2,364,885

Real Estate Portfolio in Development
The cost of our real estate portfolio under development or held for development as of December 31, 2012 and 2011 is as follows (in thousands):
 
December 31,
 
2012
 
2011
Office
$
8,977

 
$
8,953

Medical office
3,810

 
5,758

Retail
587

 
576

Multifamily
35,761

 
27,802

 
$
49,135

 
$
43,089

Acquisition Of Properties and Land For Development

Properties and land for development acquired during the years ending December 31, 2012, 2011 and 2010 were as follows:
Acquisition Date
 
Property
 
Type
 
Rentable
Square  Feet
(unaudited)
 
Contract
Purchase  Price
(In thousands)
June 21, 2012
 
Fairgate at Ballston
 
Office
 
142,000

 
$
52,250

 
 
 
 
Total 2012
 
142,000

 
$
52,250

 
 
 
 
 
 
 
 
 
January 11, 2011
 
1140 Connecticut Ave
 
Office
 
188,000

 
$
80,250

March 30, 2011
 
1227 25th Street
 
Office
 
132,000

 
47,000

June 15, 2011
 
650 North Glebe Road (1)
 
Mutifamily
 
N/A

 
11,800

August 30, 2011
 
Olney Village Center
 
Retail
 
198,000

 
58,000

September 13, 2011
 
Braddock Metro Center
 
Office
 
351,000

 
101,000

September 15, 2011
 
John Marshall II
 
Office
 
223,000

 
73,500

November 23, 2011
 
1225 First Street (1)
 
Mutifamily
 
N/A

 
13,850

 
 
 
 
Total 2011
 
1,092,000

 
$
385,400

 
 
 
 
 
 
 
 
 
June 3, 2010
 
925 and 1000 Corporate Drive
 
Office
 
270,000

 
$
68,000

December 1, 2010
 
Gateway Overlook
 
Retail
 
223,000

 
88,350

 
 
 
 
Total 2010
 
493,000

 
$
156,350

(1) Land for development
Revenue and Earnings from Acquisitions
The revenue and earnings of our acquisitions during the three years ended December 31, 2012 are as follows (in thousands):
 
Year Ended December 31,
 
2012
 
2011
 
2010
Real estate rental revenue
$
3,358

 
$
20,944

 
$
5,575

Net income
325

 
484

 
1,460

Total Purchase Price Of Acquisitions
We have recorded the total purchase price of the above acquisitions as follows (in thousands):
 
2012
 
2011
 
2010
Land
$
17,750

 
$
90,896

 
$
38,233

Buildings
26,893

 
219,613

 
93,332

Tenant origination costs
3,100

 
15,667

 
9,094

Leasing commissions/absorption costs
4,172

 
29,719

 
15,349

Net lease intangible assets
508

 
6,805

 
1,375

Net lease intangible liabilities
(173
)
 
(2,454
)
 
(1,503
)
Fair value of assumed mortgage

 
(78,500
)
 

Total
$
52,250

 
$
281,746

 
$
155,880

Business Acquisition, Pro Forma Information
The unaudited data for the year ended December 31, 2011 were as follows (in thousands, except per share data):
Real estate revenues
$
302,836

Loss from continuing operations
(3,471
)
Net income
104,311

Diluted earnings per share
1.57

Land and Capitalized Development Costs
We include the joint venture land acquisitions and related capitalized development costs on our consolidated balance sheets in properties under development or held for development, consistent with other development activity. As of December 31, 2012 and 2011, the land and capitalized development costs were as follows (in thousands):
 
December 31,
 
2012
 
2011
650 North Glebe Road
$
15,646

 
$
13,406

1225 First Street
19,807

 
14,396

Schedule Of Accounts Payable and Accrued Liabilities Of Joint Ventures
As of December 31, 2012 and 2011, the accounts payable and accrued liabilities related to the joint ventures were as follows (in thousands):
 
December 31,
 
2012
 
2011
650 North Glebe Road
$
115

 
$
47

1225 First Street
1,676

 
235

Disclosure of Long Lived Assets Held-for-sale
Properties classified as sold or held for sale as of December 31, 2012 are included in "Investment in real estate sold or held for sale, net" on our consolidated balance sheets as follows (in thousands):
 
December 31,
 
2012
 
2011
Office
$
17,450

 
$
33,637

Medical Office

 
8,261

Total
17,450

 
41,898

Less accumulated depreciation
(5,922
)
 
(14,229
)
 
$
11,528

 
$
27,669

Schedule of Dispositions
During the three years ended December 31, 2012, we sold the following properties (in thousands):
Disposition Date
Property
Type
Gain on Sale
August 31, 2012
1700 Research Boulevard
Office
$
3,724

December 20, 2012
Plumtree Medical Center
Medical Office
1,400

 
 
Total 2012
$
5,124

 
 
 
 
April 5, 2011
Dulles Station, Phase I
Office
$

Various (1)
Industrial Portfolio (1)
Office/Industrial
97,491

 
 
Total 2011
$
97,491

 
 
 
 
June 18, 2010
Parklawn Portfolio(2)
Office/Industrial
$
7,942

December 21, 2010
The Ridges
Office
4,441

December 22, 2010
Ammendale I&II/Amvax
Industrial
9,216

 
 
Total 2010
$
21,599

(1) 
The Industrial Portfolio consists of every property in our industrial segment and two office properties (the Crescent and Albemarle Point), and we closed on the sale on three separate dates. On September 2, 2011, we closed on the sale of the two office properties (the Crescent and Albemarle Point) and 8880 Gorman Road, Dulles South IV, Fullerton Business Center, Hampton Overlook, Alban Business Center, Pickett Industrial Park, Northern Virginia Industrial Park I, 270 Technology Park, Fullerton Industrial Center, Sully Square, 9950 Business Parkway, Hampton South and 8900 Telegraph Road. On October 3, 2011, we closed the sale of Northern Virginia Industrial Park II. On November 1, 2011, we closed on the sale of 6100 Columbia Park Road and Dulles Business Park I and II.

(2) 
The Parklawn Portfolio consists of three office properties (Parklawn Plaza, Lexington Building and Saratoga Building) and one industrial property (Charleston Business Center).
We sold or classified as held for sale the following properties during the three years ended December 31, 2012:
Disposition Date
 
Property
 
Type
 
Rentable
Square Feet
(unaudited)
 
Contract
Sales Price
(in thousands)
 
Gain on Sale
(in thousands)
August 31, 2012
 
1700 Research Boulevard
 
Office
 
101,000

 
$
14,250

 
$
3,724

December 20, 2012
 
Plumtree Medical Center
 
Medical Office
 
33,000

 
8,750

 
1,400

N/A - Held for Sale
 
Atrium Building
 
Office
 
79,000

 
N/A

 
N/A

 
 
 
 
Total 2012
 
213,000

 
$
23,000

 
$
5,124

 
 
 
 
 
 
 
 
 
 
 
Various (1)
 
Industrial Portfolio (1)
 
Industrial/Office
 
3,092,000

 
$
350,900

 
$
97,491

April 5, 2011
 
Dulles Station, Phase I
 
Office
 
180,000

 
58,800

 

 
 
 
 
Total 2011
 
3,272,000

 
$
409,700

 
$
97,491

 
 
 
 
 
 
 
 
 
 
 
June 18, 2010
 
Parklawn Portfolio (2)
 
Office/Industrial
 
229,000

 
$
23,430

 
$
7,942

December 21, 2010
 
The Ridges
 
Office
 
104,000

 
27,500

 
4,441

December 22, 2010
 
Ammendale I&II and Amvax
 
Industrial
 
305,000

 
23,000

 
9,216

 
 
 
 
Total 2010
 
638,000

 
$
73,930

 
$
21,599

 
(1) 
The Industrial Portfolio consists of every property in our industrial segment and two office properties (the Crescent and Albemarle Point), and we closed on the sale on three separate dates. On September 2, 2011, we closed on the sale of the two office properties (the Crescent and Albemarle Point) and 8880 Gorman Road, Dulles South IV, Fullerton Business Center, Hampton Overlook, Alban Business Center, Pickett Industrial Park, Northern Virginia Industrial Park I, 270 Technology Park, Fullerton Industrial Center, Sully Square, 9950 Business Parkway, Hampton South and 8900 Telegraph Road. On October 3, 2011, we closed the sale of Northern Virginia Industrial Park II. On November 1, 2011, we closed on the sale of 6100 Columbia Park Road and Dulles Business Park I and II.
(2) 
The Parklawn Portfolio consists of three office properties (Parklawn Plaza, Lexington Building and Saratoga Building) and one industrial property (Charleston Business Center).
Operating Results of Properties Classified as Discontinued Operations

Income from operations of properties sold or held for sale for the three years ended December 31, 2012 were as follows (in thousands):
 
December 31,
 
2012
 
2011
 
2010
Revenues
$
4,155

 
$
31,525

 
$
53,009

Property expenses
(1,542
)
 
(9,547
)
 
(17,163
)
Real estate impairment

 
(599
)
 

Depreciation and amortization
(867
)
 
(8,723
)
 
(17,263
)
Interest expense
(261
)
 
(733
)
 
(2,014
)
 
$
1,485

 
$
11,923

 
$
16,569

Operating Income (Loss) By Property Classified As Discontinued Operations
by property for the three years ended December 31, 2012 were as follows (in thousands):
 
 
 
Operating Income For the Year Ending December 31,
Property
Segment
 
2012
 
2011
 
2010
Parklawn Plaza
Office
 
$

 
$

 
$
132

Lexington Building
Office
 

 

 
65

Saratoga Building
Office
 

 

 
225

Charleston Business Center
Industrial
 

 

 
370

The Ridges
Office
 

 

 
678

Ammendale I&II
Industrial
 

 

 
1,023

Amvax
Industrial
 

 

 
336

Dulles Station, Phase I
Office
 

 
(468
)
 
492

Industrial Portfolio
Industrial/Office
 

 
10,621

 
11,647

1700 Research Boulevard
Office
 
225

 
651

 
670

Atrium Building
Office
 
1,063

 
1,052

 
883

Plumtree Medical Center
Medical Office
 
197

 
67

 
48

 
 
 
$
1,485

 
$
11,923

 
$
16,569

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures
The impact of the disposal of our industrial segment on revenues and net income for the three years ended December 31, 2012 were as follows (in thousands, except per share data):
 
Year Ended December 31,
 
2012
 
2011
 
2010
Real estate revenues
$

 
$
23,045

 
$
32,191

Net income

 
16,484

 
22,857

Basic net income per share

 
0.23

 
0.36

Diluted net income per share

 
0.23

 
0.36