Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v2.4.0.8
Segment Information
9 Months Ended
Sep. 30, 2013
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
Segment Information
NOTE 10: SEGMENT INFORMATION
We have four reportable segments: office, retail, multifamily and medical office. Office buildings provide office space for various types of businesses and professions. Retail shopping centers are typically grocery store anchored neighborhood centers that include other small shop tenants or regional power centers with several junior box tenants. Multifamily properties provide rental housing for individuals and families throughout the Washington metropolitan area. Medical office buildings provide offices and facilities for a variety of medical services. We have entered into purchase and sale agreements to effectuate the sale of our medical office segment, and have classified this segment as discontinued operations (see note 3).
We evaluate performance based upon operating income from the combined properties in each segment. Our reportable operating segments are consolidations of similar properties. GAAP requires that segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing segments’ performance. Net operating income is a key measurement of our segment profit and loss. Net operating income is defined as segment real estate rental revenue less segment real estate expenses.
The following tables present revenues, net operating income, capital expenditures and total assets for the 2013 and 2012 Quarters and Periods from these segments, and reconciles net operating income of reportable segments to net income attributable to the controlling interests as reported (in thousands):
 
Three Months Ended September 30, 2013
 
Office
 
Medical Office
 
Retail
 
Multifamily
 
Corporate and Other
 
Consolidated
Real estate rental revenue
$
38,221

 
$

 
$
13,990

 
$
13,617

 
$

 
$
65,828

Real estate expenses
14,517

 

 
3,207

 
5,519

 

 
23,243

Net operating income
$
23,704

 
$

 
$
10,783

 
$
8,098

 
$

 
$
42,585

Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
(21,168
)
General and administrative
 
 
 
 
 
 
 
 
 
 
(3,850
)
Acquisition costs
 
 
 
 
 
 
 
 
 
 
(148
)
Interest expense
 
 
 
 
 
 
 
 
 
 
(15,930
)
Other income
 
 
 
 
 
 
 
 
 
 
220

Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
Income from operations of properties sold or held for sale
 
 
 
 
 
 
 
 
 
 
4,131

Net income
 
 
 
 
 
 
 
 
 
 
5,840

Less: Net income attributable to noncontrolling interests in subsidiaries
 
 
 
 
 
 
 
 
 
 

Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
 
 
$
5,840

Capital expenditures
$
9,535

 
$
505

 
$
198

 
$
4,041

 
$
16

 
$
14,295

Total assets
$
1,116,087

 
$
319,928

 
$
348,490

 
$
258,027

 
$
45,823

 
$
2,088,355

 
Three Months Ended September 30, 2012
 
Office
 
Medical
Office
 
Retail
 
Multifamily
 
Corporate
and Other
 
Consolidated
Real estate rental revenue
$
37,477

 
$

 
$
13,604

 
$
13,390

 
$

 
$
64,471

Real estate expenses
14,114

 

 
3,015

 
5,398

 

 
22,527

Net operating income
$
23,363

 
$

 
$
10,589

 
$
7,992

 
$

 
$
41,944

Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
(21,682
)
Acquisition costs
 
 
 
 
 
 
 
 
 
 
164

General and administrative
 
 
 
 
 
 
 
 
 
 
(3,173
)
Interest expense
 
 
 
 
 
 
 
 
 
 
(14,886
)
Other income
 
 
 
 
 
 
 
 
 
 
237

Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
Income from operations of properties sold or held for sale
 
 
 
 
 
 
 
 
 
 
3,233

Gain on sale of real estate
 
 
 
 
 
 
 
 
 
 
3,724

Net income
 
 
 
 
 
 
 
 
 
 
9,561

Less: Net income attributable to noncontrolling interests in subsidiaries
 
 
 
 
 
 
 
 
 
 

Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
 
 
$
9,561

Capital expenditures
$
10,058

 
$
2,399

 
$
832

 
$
1,496

 
$
95

 
$
14,880

Total assets
$
1,144,975

 
$
343,876

 
$
361,383

 
$
247,508

 
$
101,053

 
$
2,198,795



 
Nine Months Ended September 30, 2013
 
Office
 
Medical Office
 
Retail
 
Multifamily
 
Corporate and Other
 
Consolidated
Real estate rental revenue
$
113,849

 
$

 
$
42,105

 
$
40,349

 
$

 
$
196,303

Real estate expenses
42,697

 

 
10,355

 
16,415

 

 
69,467

Net operating income
$
71,152

 
$

 
$
31,750

 
$
23,934

 
$

 
$
126,836

Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
(63,328
)
General and administrative
 
 
 
 
 
 
 
 
 
 
(11,717
)
Acquisition costs
 
 
 
 
 
 
 
 
 
 
(448
)
Interest expense
 
 
 
 
 
 
 
 
 
 
(47,944
)
Other income
 
 
 
 
 
 
 
 
 
 
705

Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
Income from operations of properties sold or held for sale
 
 
 
 
 
 
 
 
 
 
11,139

Gain on sale of real estate
 
 
 
 
 
 
 
 
 
 
3,195

Net income
 
 
 
 
 
 
 
 
 
 
18,438

Less: Net income attributable to noncontrolling interests in subsidiaries
 
 
 
 
 
 
 
 
 
 

Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
 
 
$
18,438

Capital expenditures
$
26,773

 
$
3,035

 
$
2,732

 
$
6,808

 
$
125

 
$
39,473


 
Nine Months Ended September 30, 2012
 
Office
 
Medical Office
 
Retail
 
Multifamily
 
Corporate and Other
 
Consolidated
Real estate rental revenue
$
109,632

 
$

 
$
41,019

 
$
39,483

 
$

 
$
190,134

Real estate expenses
39,905

 

 
9,488

 
15,427

 

 
64,820

Net operating income
$
69,727

 
$

 
$
31,531

 
$
24,056

 
$

 
$
125,314

Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
(63,593
)
General and administrative
 
 
 
 
 
 
 
 
 
 
(10,943
)
Acquisition costs
 
 
 
 
 
 
 
 
 
 
(144
)
Interest expense
 
 
 
 
 
 
 
 
 
 
(43,983
)
Other income
 
 
 
 
 
 
 
 
 
 
733

Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
Income from operations of properties sold or held for sale
 
 
 
 
 
 
 
 
 
 
9,642

Gain on sale of real estate
 
 
 
 
 
 
 
 
 
 
3,724

Net income
 
 
 
 
 
 
 
 
 
 
20,750

Less: Net income attributable to noncontrolling interests in subsidiaries
 
 
 
 
 
 
 
 
 
 

Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
 
 
$
20,750

Capital expenditures
$
25,076

 
$
5,020

 
$
2,246

 
$
3,968

 
$
510

 
$
36,820