Annual report pursuant to Section 13 and 15(d)

Segment Information

v2.4.0.8
Segment Information
12 Months Ended
Dec. 31, 2013
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
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. 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. Medical office buildings provide offices and facilities for a variety of medical services. We have executed purchase and sale agreements to effectuate the sale of our medical office segment, and have classified this segment as discontinued operations (see note 3).
Real estate rental revenue as a percentage of the total for each of the reportable operating segments in continuing operations for the three years ended December 31, 2013 was as follows:
 
Year Ended December 31,
 
2013
 
2012
 
2011
Office
58
%
 
58
%
 
57
%
Retail
21
%
 
21
%
 
21
%
Multifamily
21
%
 
21
%
 
22
%

The percentage of total income producing real estate assets, at cost, for each of the reportable operating segments in continuing operations as of December 31, 2013 and 2012 was as follows:
 
December 31,
 
2013
 
2012
Office
62
%
 
63
%
Retail
20
%
 
20
%
Multifamily
18
%
 
17
%

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, 2013 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, 2013
 
Office
 
Medical
Office
 
Retail
 
Multifamily
 
Corporate
and Other
 
Consolidated
Real estate rental revenue
$
152,339

 
$

 
$
56,189

 
$
54,496

 
$

 
$
263,024

Real estate expenses
57,293

 

 
13,768

 
22,232

 

 
93,293

Net operating income
$
95,046

 
$

 
$
42,421

 
$
32,264

 
$

 
$
169,731

Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
(85,740
)
General and administrative
 
 
 
 
 
 
 
 
 
 
(17,535
)
Acquisition costs
 
 
 
 
 
 
 
 
 
 
(1,265
)
Interest expense
 
 
 
 
 
 
 
 
 
 
(63,573
)
Other income
 
 
 
 
 
 
 
 
 
 
926

Gain (loss) on extinguishment of debt
 
 
 
 
 
 
 
 
 
 
(2,737
)
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
Income from properties sold or held for sale
 
 
 
 
 
 
 
 
 
 
15,395

Gain on sale of real estate
 
 
 
 
 
 
 
 
 
 
22,144

Net income
 
 
 
 
 
 
 
 
 
 
37,346

Less: Net income attributable to noncontrolling interests
 
 
 
 
 
 
 
 
 
 

Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
 
 
$
37,346

Capital expenditures
$
37,777

 
$
3,695

 
$
4,204

 
$
10,153

 
$
162

 
$
55,991

Total assets
$
1,073,302

 
$
84,001

 
$
344,207

 
$
309,117

 
$
164,866

 
$
1,975,493

 
 
Year Ended December 31, 2012
 
Office
 
Medical
Office
 
Retail
 
Multifamily
 
 
Corporate
and Other
 
Consolidated
Real estate rental revenue
$
147,401

 
$

 
$
54,506

 
$
52,887

 
 
$

 
$
254,794

Real estate expenses
53,376

 

 
12,702

 
20,467

 
 

 
86,545

Net operating income
$
94,025

 
$

 
$
41,804

 
$
32,420

 
 
$

 
$
168,249

Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
 
(85,107
)
General and administrative
 
 
 
 
 
 
 
 
 
 
 
(15,488
)
Acquisition costs
 
 
 
 
 
 
 
 
 
 
 
(234
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
(60,627
)
Other income
 
 
 
 
 
 
 
 
 
 
 
975

Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
 
Income from properties sold or held for sale
 
 
 
 
 
 
 
 
 
 
 
10,816

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
$
133,333

 
$

 
$
50,421

 
$
50,979

 
$

 
$

 
$
234,733

Real estate expenses
45,634

 

 
14,273

 
19,717

 

 

 
79,624

Net operating income
$
87,699

 
$

 
$
36,148

 
$
31,262

 
$

 
$

 
$
155,109

Depreciation and amortization
 
 
 
 
 
 
 
 
 
 
 
 
(74,403
)
General and administrative
 
 
 
 
 
 
 
 
 
 
 
 
(15,728
)
Real estate impairment
 
 
 
 
 
 
 
 
 
 
 
 
(14,526
)
Acquisition costs
 
 
 
 
 
 
 
 
 
 
 
 
(3,607
)
Interest expense
 
 
 
 
 
 
 
 
 
 
 
 
(61,402
)
Other income
 
 
 
 
 
 
 
 
 
 
 
 
1,144

Loss on extinguishment of debt
 
 
 
 
 
 
 
 
 
 
 
 
(976
)
Discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from properties sold or held for sale
 
 
 
 
 
 
 
 
 
 
 
 
23,414

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