Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v2.4.0.8
Segment Information
9 Months Ended
Sep. 30, 2014
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
Segment Information
NOTE 10: SEGMENT INFORMATION
We have three reportable segments: office, retail and multifamily. 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. During the 2014 Period, we completed the sale of our medical office segment (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 2014 and 2013 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, 2014
 
Office
 
Retail
 
Multifamily
 
Corporate and Other
 
Consolidated
Real estate rental revenue
$
42,628

 
$
14,825

 
$
15,960

 
$

 
$
73,413

Real estate expenses
16,066

 
3,204

 
6,644

 

 
25,914

Net operating income
$
26,562

 
$
11,621

 
$
9,316

 
$

 
$
47,499

Depreciation and amortization
 
 
 
 
 
 
 
 
(24,354
)
General and administrative
 
 
 
 
 
 
 
 
(4,523
)
Acquisition costs
 
 
 
 
 
 
 
 
(69
)
Interest expense
 
 
 
 
 
 
 
 
(15,087
)
Other income
 
 
 
 
 
 
 
 
192

Net income
 
 
 
 
 
 
 
 
3,658

Less: Net loss attributable to noncontrolling interests in subsidiaries
 
 
 
 
 
 
 
 
10

Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
$
3,668

Capital expenditures
$
7,804

 
$
3,037

 
$
2,157

 
$
3

 
$
13,001

Total assets
$
1,277,131

 
$
341,728

 
$
404,596

 
$
35,924

 
$
2,059,379

 
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
)
Acquisition costs
 
 
 
 
 
 
 
 
 
 
(148
)
General and administrative
 
 
 
 
 
 
 
 
 
 
(3,850
)
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


 
Nine Months Ended September 30, 2014
 
Office
 
Retail
 
Multifamily
 
Corporate and Other
 
Consolidated
Real estate rental revenue
$
123,568

 
$
44,209

 
$
46,501

 

 
$
214,278

Real estate expenses
47,579

 
10,672

 
19,533

 

 
77,784

Net operating income
$
75,989

 
$
33,537

 
$
26,968

 

 
$
136,494

Depreciation and amortization
 
 
 
 
 
 
 
 
(71,508
)
General and administrative
 
 
 
 
 
 
 
 
(13,780
)
Acquisition costs
 
 
 
 
 
 
 
 
(5,047
)
Interest expense
 
 
 
 
 
 
 
 
(44,602
)
Other income
 
 
 
 
 
 
 
 
634

Gain on sale of real estate (classified as continuing operations)
 
 
 
 
 
 
 
 
570

Discontinued operations:
 
 
 
 
 
 
 
 
 
Income from operations of properties sold or held for sale
 
 
 
 
 
 
 
 
546

Gain on sale of real estate
 
 
 
 
 
 
 
 
105,985

Net income
 
 
 
 
 
 
 
 
109,292

Less: Net loss attributable to noncontrolling interests in subsidiaries
 
 
 
 
 
 
 
 
17

Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
109,309

Capital expenditures
$
30,974

 
$
4,157

 
$
6,814

 
$
44

 
$
41,989

 
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
)
Acquisition costs
 
 
 
 
 
 
 
 
 
 
(448
)
General and administrative
 
 
 
 
 
 
 
 
 
 
(11,717
)
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