|
Real Estate Investments (Tables)
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12 Months Ended |
|
Dec. 31, 2011
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| Real Estate Investments [Abstract] |
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| Investment |
Our real estate investment portfolio, at cost, consists of properties located in Maryland, Washington, D.C. and Virginia as follows (in thousands):
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December 31, |
|
2011 |
|
2010 |
Office |
$ |
1,268,136 |
|
|
$ |
980,263 |
|
Medical office |
404,793 |
|
|
398,559 |
|
Retail |
408,897 |
|
|
351,395 |
|
Multifamily |
324,957 |
|
|
321,719 |
|
|
$ |
2,406,783 |
|
|
$ |
2,051,936 |
|
|
| Real Estate Portfolio in Development |
The cost of our real estate portfolio held for development as of December 31, 2011 and 2010 is illustrated below (in thousands):
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December 31, |
|
2011 |
|
2010 |
Office |
$ |
8,953 |
|
|
$ |
20,172 |
|
Medical office |
5,758 |
|
|
5,463 |
|
Retail |
576 |
|
|
546 |
|
Multifamily |
27,802 |
|
|
59 |
|
|
$ |
43,089 |
|
|
$ |
26,240 |
|
|
| Acquisition Of Properties And Land For Development During 2011, 2010 and 2009 |
Properties and land for development we acquired during the years ending December 31, 2011, 2010 and 2009 are as follows:
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Acquisition Date |
|
Property |
|
Type |
|
Rentable
Square Feet
(unaudited)
|
|
Contract
Purchase Price
(In thousands)
|
January 11, 2011 |
|
1140 Connecticut Ave |
|
Office |
|
184,000 |
|
|
$ |
80,250 |
|
March 30, 2011 |
|
1227 25th Street |
|
Office |
|
130,000 |
|
|
47,000 |
|
June 15, 2011 |
|
650 North Glebe Road (1)
|
|
Mutifamily |
|
N/A |
|
|
11,800 |
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August 30, 2011 |
|
Olney Village Center |
|
Retail |
|
199,000 |
|
|
58,000 |
|
September 13, 2011 |
|
Braddock Metro Center |
|
Office |
|
345,000 |
|
|
101,000 |
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September 15, 2011 |
|
John Marshall II |
|
Office |
|
223,000 |
|
|
73,500 |
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November 23, 2011 |
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1219 First Street (1)
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Mutifamily |
|
N/A |
|
|
13,850 |
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|
|
|
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Total 2011 |
|
1,081,000 |
|
|
$ |
385,400 |
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|
|
|
|
|
|
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June 3, 2010 |
|
925 and 1000 Corporate Drive |
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Office |
|
271,000 |
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|
$ |
68,000 |
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December 1, 2010 |
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Gateway Overlook |
|
Retail |
|
223,000 |
|
|
88,400 |
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|
|
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Total 2010 |
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494,000 |
|
|
$ |
156,400 |
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August 13, 2009 |
|
Lansdowne Medical Office Building |
|
Medical Office |
|
87,000 |
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|
$ |
19,900 |
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|
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Total 2009 |
|
87,000 |
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|
$ |
19,900 |
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(1) Land for development
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| Revenue and Earnings from 2011 and 2010 Acquisitions |
The revenue and earnings of our 2011 and 2010 acquisitions are as follows (amounts in thousands):
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December 31, |
|
2011 |
|
2010 |
Real estate revenue |
$ |
35,259 |
|
|
$ |
5,575 |
|
Net income |
$ |
4,701 |
|
|
$ |
1,460 |
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| Total Purchase Price Of Acquisitions |
We have recorded the total purchase price of the above acquisitions as follows (in millions):
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Recordation of Purchase Price |
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2011 |
|
2010 |
|
2009 |
Land |
$ |
90.9 |
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|
$ |
38.2 |
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|
$ |
1.3 |
|
Buildings |
219.6 |
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|
93.3 |
|
|
18.6 |
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Tenant origination costs |
15.7 |
|
|
9.1 |
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|
— |
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Leasing commissions/absorption costs |
29.7 |
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|
15.4 |
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— |
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Net lease intangible assets |
6.8 |
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|
1.4 |
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|
— |
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Net lease intangible liabilities |
(2.5 |
) |
|
(1.5 |
) |
|
— |
|
Fair value of assumed mortgage |
(78.5 |
) |
|
— |
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|
— |
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Total |
$ |
281.7 |
|
|
$ |
155.9 |
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|
$ |
19.9 |
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| Business Acquisition, Pro Forma Information |
The unaudited data presented is in thousands, except per share data.
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Year Ended December 31, |
|
2011 |
|
2010 |
Real estate revenues |
$ |
308,027 |
|
|
$ |
295,767 |
|
Income from continuing operations |
$ |
(1,701 |
) |
|
$ |
1,083 |
|
Net income |
$ |
104,311 |
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|
$ |
37,517 |
|
Diluted earnings per share |
$ |
1.57 |
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|
$ |
0.60 |
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| Land and Capitalized Development Costs |
As of December 31, 2011, the land and capitalized development costs are as follows (in millions):
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December 31, 2011 |
650 North Glebe |
|
$ |
13.4 |
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1219 First Street |
|
$ |
14.4 |
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| Disclosure of Long Lived Assets Held-for-sale |
We had no properties classified as sold or held for sale at December 31, 2011 and had the industrial portfolio plus three office properties as sold or held for sale at December 31, 2010, as follows (in thousands):
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December 31, |
|
2011 |
|
2010 |
Office property |
$ |
— |
|
|
$ |
80,024 |
|
Industrial/Flex properties |
— |
|
|
284,926 |
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Total |
$ |
— |
|
|
$ |
364,950 |
|
Less accumulated depreciation |
— |
|
|
(78,108 |
) |
|
$ |
— |
|
|
$ |
286,842 |
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| 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 is summarized as follows (amounts in thousands, except per share data):
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December 31, |
|
2011 |
|
2010 |
|
2009 |
Real estate revenues |
$ |
23,045 |
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|
$ |
32,191 |
|
|
$ |
34,288 |
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Net income |
$ |
16,484 |
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|
$ |
22,857 |
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|
$ |
24,905 |
|
Basic net income per share |
$ |
0.23 |
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|
$ |
0.36 |
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|
$ |
0.43 |
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Diluted net income per share |
$ |
0.23 |
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|
$ |
0.36 |
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|
$ |
0.43 |
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|
| Schedule of Dispositions |
During the three years ended December 31, 2011, we sold the following properties:
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Disposition Date |
Property |
Type |
Gain on Sale
(in thousands)
|
April 5, 2011 |
Dulles Station, Phase I |
Office |
$ |
— |
|
Various (1)
|
Industrial Portfolio (1)
|
Office/Industrial |
97,491 |
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|
Total 2011 |
$ |
97,491 |
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June 18, 2010 |
Parklawn Portfolio(2)
|
Office/Industrial |
$ |
7,900 |
|
December 21, 2010 |
The Ridges |
Office |
4,500 |
|
December 22, 2010 |
Ammendale I&II/Amvax |
Industrial |
9,200 |
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Total 2010 |
$ |
21,600 |
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|
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May 13, 2009 |
Avondale |
Multifamily |
$ |
6,700 |
|
July 23, 2009 |
Tech 100 Industrial Park |
Industrial |
4,100 |
|
July 31, 2009 |
Brandywine Center |
Office |
1,000 |
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November 13, 2009 |
Crossroads Distribution Center |
Industrial |
1,500 |
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Total 2009 |
$ |
13,300 |
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(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.
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(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 the following properties during the three years ended December 31, 2011:
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Disposition Date |
|
Property |
|
Type |
|
Rentable
Square Feet
(unaudited)
|
|
Contract
Sales Price
(in thousands)
|
|
Gain on Sale
(in thousands)
|
Various (1)
|
|
Industrial Portfolio (1)
|
|
Industrial/Office |
|
3,092,000 |
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|
$ |
350,900 |
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|
$ |
97,491 |
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April 5, 2011 |
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Dulles Station, phase I |
|
Office |
|
180,000 |
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|
58,800 |
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|
— |
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Total 2011 |
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3,272,000 |
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|
$ |
409,700 |
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|
$ |
97,491 |
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June 18, 2010 |
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Parklawn Portfolio (2)
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|
Office/Industrial |
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229,000 |
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|
$ |
23,400 |
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|
$ |
7,900 |
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December 21, 2010 |
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The Ridges |
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Office |
|
104,000 |
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|
27,500 |
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|
4,500 |
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December 22, 2010 |
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Ammendale I&II and Amvax |
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Industrial |
|
305,000 |
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|
23,000 |
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|
9,200 |
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Total 2010 |
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638,000 |
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|
$ |
73,900 |
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|
$ |
21,600 |
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May 13, 2009 |
|
Avondale |
|
Multifamily |
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170,000 |
|
|
$ |
19,800 |
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|
$ |
6,700 |
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July 23, 2009 |
|
Tech 100 Industrial Park |
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Industrial |
|
166,000 |
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|
10,500 |
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|
4,100 |
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July 31, 2009 |
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Brandywine Center |
|
Office |
|
35,000 |
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|
3,300 |
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|
1,000 |
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November 13, 2009 |
|
Crossroads Distribution Center |
|
Industrial |
|
85,000 |
|
|
4,400 |
|
|
1,500 |
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|
|
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Total 2009 |
|
456,000 |
|
|
$ |
38,000 |
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|
$ |
13,300 |
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(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.
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(2) |
The Parklawn Portfolio consists of three office properties (Parklawn Plaza, Lexington Building and Saratoga Building) and one industrial property (Charleston Business Center).
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| Operating Results of Properties Classified as Discontinued Operations |
Operating results of the properties classified as discontinued operations are summarized as follows (in thousands):
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Operating Income For the Year Ending
December 31,
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|
2011 |
|
2010 |
|
2009 |
Revenues |
$ |
26,154 |
|
|
$ |
47,646 |
|
|
$ |
53,726 |
|
Property expenses |
(7,697 |
) |
|
(15,248 |
) |
|
(16,646 |
) |
Real estate impairment |
(599 |
) |
|
— |
|
|
— |
|
Depreciation and amortization |
(7,231 |
) |
|
(15,680 |
) |
|
(16,896 |
) |
Interest expense |
(474 |
) |
|
(1,750 |
) |
|
(2,307 |
) |
|
$ |
10,153 |
|
|
$ |
14,968 |
|
|
$ |
17,877 |
|
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| Operating Income (Loss) By Property Classified As Discontinued Operations |
Operating income by each property classified as discontinued operations is summarized below (in thousands):
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Operating Income For the Year Ending December 31, |
Property |
|
Segment |
|
2011 |
|
2010 |
|
2009 |
Avondale |
|
Multifamily |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
392 |
|
Tech 100 Industrial Park |
|
Industrial |
|
— |
|
|
— |
|
|
261 |
|
Brandywine Center |
|
Office |
|
— |
|
|
— |
|
|
85 |
|
Crossroads Distribution Center |
|
Industrial |
|
— |
|
|
— |
|
|
153 |
|
Parklawn Plaza |
|
Office |
|
— |
|
|
132 |
|
|
147 |
|
Lexington Building |
|
Office |
|
— |
|
|
65 |
|
|
127 |
|
Saratoga Building |
|
Office |
|
— |
|
|
225 |
|
|
436 |
|
Charleston Business Center |
|
Industrial |
|
— |
|
|
370 |
|
|
688 |
|
The Ridges |
|
Office |
|
— |
|
|
678 |
|
|
175 |
|
Ammendale I&II |
|
Industrial |
|
— |
|
|
1,023 |
|
|
986 |
|
Amvax |
|
Industrial |
|
— |
|
|
336 |
|
|
327 |
|
Dulles Station, Phase I |
|
Office |
|
(468 |
) |
|
492 |
|
|
449 |
|
Industrial Portfolio |
|
Industrial/Office |
|
10,621 |
|
|
11,647 |
|
|
13,651 |
|
|
|
|
|
$ |
10,153 |
|
|
$ |
14,968 |
|
|
$ |
17,877 |
|
|