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, 2011
Real Estate Investments [Abstract]  
Investment
Our real estate investment portfolio, at cost, consists of properties located in Maryland, Washington, D.C. and Virginia as follows (in thousands):
 
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):
 
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:
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

August 30, 2011
 
Olney Village Center
 
Retail
 
199,000

 
58,000

September 13, 2011
 
Braddock Metro Center
 
Office
 
345,000

 
101,000

September 15, 2011
 
John Marshall II
 
Office
 
223,000

 
73,500

November 23, 2011
 
1219 First Street (1)
 
Mutifamily
 
N/A

 
13,850

 
 
 
 
Total 2011
 
1,081,000

 
$
385,400

 
 
 
 
 
 
 
 
 
June 3, 2010
 
925 and 1000 Corporate Drive
 
Office
 
271,000

 
$
68,000

December 1, 2010
 
Gateway Overlook
 
Retail
 
223,000

 
88,400

 
 
 
 
Total 2010
 
494,000

 
$
156,400

 
 
 
 
 
 
 
 
 
August 13, 2009
 
Lansdowne Medical Office Building
 
Medical Office
 
87,000

 
$
19,900

 
 
 
 
Total 2009
 
87,000

 
$
19,900

(1) Land for development
Revenue and Earnings from 2011 and 2010 Acquisitions

The revenue and earnings of our 2011 and 2010 acquisitions are as follows (amounts in thousands):
 
December 31,
 
2011
 
2010
Real estate revenue
$
35,259

 
$
5,575

Net income
$
4,701

 
$
1,460

Total Purchase Price Of Acquisitions
We have recorded the total purchase price of the above acquisitions as follows (in millions):
 
Recordation of Purchase Price
 
2011
 
2010
 
2009
Land
$
90.9

 
$
38.2

 
$
1.3

Buildings
219.6

 
93.3

 
18.6

Tenant origination costs
15.7

 
9.1

 

Leasing commissions/absorption costs
29.7

 
15.4

 

Net lease intangible assets
6.8

 
1.4

 

Net lease intangible liabilities
(2.5
)
 
(1.5
)
 

Fair value of assumed mortgage
(78.5
)
 

 

Total
$
281.7

 
$
155.9

 
$
19.9

Business Acquisition, Pro Forma Information
The unaudited data presented is in thousands, except per share data.
 
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

 
$
37,517

Diluted earnings per share
$
1.57

 
$
0.60

Land and Capitalized Development Costs
As of December 31, 2011, the land and capitalized development costs are as follows (in millions):
 
 
December 31, 2011
650 North Glebe
 
$
13.4

1219 First Street
 
$
14.4

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):
 
December 31,
 
2011
 
2010
Office property
$

 
$
80,024

Industrial/Flex properties

 
284,926

Total
$

 
$
364,950

Less accumulated depreciation

 
(78,108
)
 
$

 
$
286,842

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):
 
December 31,
 
2011
 
2010
 
2009
Real estate revenues
$
23,045

 
$
32,191

 
$
34,288

Net income
$
16,484

 
$
22,857

 
$
24,905

Basic net income per share
$
0.23

 
$
0.36

 
$
0.43

Diluted net income per share
$
0.23

 
$
0.36

 
$
0.43

Schedule of Dispositions
During the three years ended December 31, 2011, we sold the following properties:
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

 
 
Total 2011
$
97,491

 
 
 
 
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

 
 
Total 2010
$
21,600

 
 
 
 
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

November 13, 2009
Crossroads Distribution Center
Industrial
1,500

 
 
Total 2009
$
13,300

(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 the following properties during the three years ended December 31, 2011:
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

 
$
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

 
$
23,400

 
$
7,900

December 21, 2010
 
The Ridges
 
Office
 
104,000

 
27,500

 
4,500

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

 
23,000

 
9,200

 
 
 
 
Total 2010
 
638,000

 
$
73,900

 
$
21,600

 
 
 
 
 
 
 
 
 
 
 
May 13, 2009
 
Avondale
 
Multifamily
 
170,000

 
$
19,800

 
$
6,700

July 23, 2009
 
Tech 100 Industrial Park
 
Industrial
 
166,000

 
10,500

 
4,100

July 31, 2009
 
Brandywine Center
 
Office
 
35,000

 
3,300

 
1,000

November 13, 2009
 
Crossroads Distribution Center
 
Industrial
 
85,000

 
4,400

 
1,500

 
 
 
 
Total 2009
 
456,000

 
$
38,000

 
$
13,300

 
(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

Operating results of the properties classified as discontinued operations are summarized as follows (in thousands):
 
Operating Income For the Year Ending
December 31,
 
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

Operating Income (Loss) By Property Classified As Discontinued Operations
Operating income by each property classified as discontinued operations is summarized below (in thousands):
 
 
 
 
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