Annual report pursuant to Section 13 and 15(d)

Real Estate Investments (Tables)

v2.4.1.9
Real Estate Investments (Tables)
12 Months Ended
Dec. 31, 2014
Real Estate Investments, Net [Abstract]  
Schedule of Real Estate Properties [Table Text Block]
As of December 31, 2014 and 2013, our real estate investment portfolio, at cost, consists of properties as follows (in thousands):
 
December 31,
 
2014
 
2013
Office
$
1,502,052

 
$
1,296,967

Retail
463,716

 
415,899

Multifamily
505,185

 
389,361

 
$
2,470,953

 
$
2,102,227

Schedule of Dispositions
During the three years ended December 31, 2014, we sold the following properties (in thousands):
Disposition Date
Property
Type
Gain on Sale
January 21, 2014
Medical Office Portfolio Transactions III & IV (1)
Medical Office
$
105,985

May 2, 2014
5740 Columbia Road
Retail
570

 
 
Total 2014
$
106,555

 
 
 
 
March 19, 2013
Atrium Building
Office
$
3,195

November 2013
Medical Office Portfolio Transactions I & II (2)
Medical Office / Office
18,949

 
 
Total 2013
$
22,144

 
 
 
 
August 31, 2012
1700 Research Boulevard
Office
$
3,724

December 20, 2012
Plumtree Medical Center
Medical Office
1,400

 
 
Total 2012
$
5,124

(1) Woodburn Medical Park I and II and Prosperity Medical Center I, II and III.

(2) 2440 M Street, 15001 Shady Grove Road, 15505 Shady Grove Road, 19500 at Riverside Park (formerly Lansdowne Medical Office Building), 9707 Medical Center Drive, CentreMed I and II, 8301 Arlington Boulevard, Sterling Medical Office Building, Shady Grove Medical Village II, Alexandria Professional Center, Ashburn Farm Office Park I, Ashburn Farm Office Park II, Ashburn Farm Office Park III, Woodholme Medical Office Building, two office properties (6565 Arlington Boulevard and Woodholme Center) and undeveloped land at 4661 Kenmore Avenue.
Income from properties classified as discontinued operations for the three years ended December 31, 2014 was as follows (in thousands):
 
Year Ending December 31,
 
2014
 
2013
 
2012
Revenues
$
892

 
$
45,791

 
$
54,344

Property expenses
(346
)
 
(17,039
)
 
(18,273
)
Real estate impairment

 

 
(2,097
)
Depreciation and amortization

 
(12,161
)
 
(18,827
)
Interest expense

 
(1,196
)
 
(4,331
)
 
$
546

 
$
15,395

 
$
10,816

The cost of our real estate portfolio under development or held for future development as of December 31, 2014 and 2013 is as follows (in thousands):
 
December 31,
 
2014
 
2013
Office
$
36,379

 
$
12,175

Retail
500

 
495

Multifamily
39,356

 
48,645

 
$
76,235

 
$
61,315

Income from properties classified as discontinued operations by property for the three years ended December 31, 2014 was as follows (in thousands):
 
 
 
Year Ending December 31,
Property
Segment
 
2014
 
2013
 
2012
1700 Research Boulevard
Office
 
$

 
$

 
$
225

Plumtree Medical Center
Medical Office
 

 

 
197

Atrium Building
Office
 

 
185

 
1,063

Medical Office Portfolio
Medical/Office
 
546

 
15,210

 
9,331

 
 
 
$
546

 
$
15,395

 
$
10,816

We sold or classified as held for sale the following properties during the three years ended December 31, 2014:
Property
 
Type
 
Rentable
Square Feet
(unaudited)
 
Contract
Sales Price
(in thousands)
 
Gain on Sale
(in thousands)
Medical Office Portfolio Transactions III & IV (1)
 
Medical Office
 
427,000

 
193,561

 
$
105,985

5740 Columbia Road (2)
 
Retail
 
3,000

 
1,600

 
570

 
 
Total 2014
 
430,000

 
$
195,161

 
$
106,555

 
 
 
 
 
 
 
 
 
Atrium Building
 
Office
 
79,000

 
$
15,750

 
$
3,195

Medical Office Portfolio Transactions I & II
 
Medical Office / Office
 
1,093,000

 
307,189

 
18,949

 
 
Total 2013
 
1,172,000

 
$
322,939

 
$
22,144

 
 
 
 
 
 
 
 
 
1700 Research Boulevard
 
Office
 
101,000

 
$
14,250

 
$
3,724

Plumtree Medical Center
 
Medical Office
 
33,000

 
8,750

 
1,400

 
 
Total 2012
 
134,000

 
$
23,000

 
$
5,124

(1) These properties were initially classified as held for sale during 2013.
(2) The property is classified as continuing operations in accordance with ASU No. 2014-08 (see note 2). All other listed properties are classified as discontinued operations in accordance with ASC 205-10, "Discontinued Operations."
Schedule Of Real Estate Property Acquired [Table Text Block]

Our current strategy is focused on properties inside the Washington metro region’s Beltway, near major transportation nodes and in areas with strong employment drivers and superior growth demographics. We seek to upgrade our portfolio with acquisitions as opportunities arise. Properties and land for development acquired during the years ending December 31, 2014, 2013 and 2012 were as follows:
Acquisition Date
 
Property
 
Type
 
Rentable
Square  Feet
(unaudited)
 
Contract
Purchase  Price
(In thousands)
February 21, 2014
 
Yale West (216 units)
 
Multifamily
 
N/A
 
$
73,000

March 26, 2014
 
The Army Navy Club Building
 
Office
 
108,000

 
79,000

May 1, 2014
 
1775 Eye Street, NW
 
Office
 
185,000

 
104,500

October 1, 2014
 
Spring Valley Retail Center
 
Retail
 
75,000

 
40,500

 
 
 
 
Total 2014
 
368,000

 
$
297,000

 
 
 
 
 
 
 
 
 
October 1, 2013
 
The Paramount (135 units)
 
Multifamily
 
N/A
 
$
48,200

 
 
 
 
Total 2013
 


 
$
48,200

 
 
 
 
 
 
 
 
 
June 21, 2012
 
Fairgate at Ballston
 
Office
 
142,000

 
$
52,250

 
 
 
 
Total 2012
 
142,000

 
$
52,250


Revenue and Earnings From Acquisition [Table Text Block]
The revenue and earnings of our acquisitions during their year of acquisition for the three years ended December 31, 2014 are as follows (in thousands):
 
Year Ended December 31,
 
2014
 
2013
 
2012
Real estate rental revenue
$
16,260

 
$
907

 
$
3,358

Net (loss) income
(3,168
)
 
(105
)
 
325

Total Purchase Price Of Acquisitions [Table Text Block]
We have recorded the total purchase price of the above acquisitions as follows (in thousands):
 
2014
 
2013
 
2012
Land
$
104,403

 
$
8,568

 
$
17,750

Buildings
172,671

 
37,930

 
26,893

Tenant origination costs
9,377

 
32

 
3,100

Leasing commissions/absorption costs
16,474

 
943

 
4,172

Net lease intangible assets
7,331

 
102

 
508

Net lease intangible liabilities
(8,323
)
 
(117
)
 
(173
)
Fair value of assumed mortgage
(107,125
)
 

 

Furniture, fixtures & equipment
932

 
742

 

Total
$
195,740

 
$
48,200

 
$
52,250

Business Acquisition, Pro Forma Information [Table Text Block]
The following unaudited pro-forma combined condensed statements of operations set forth the consolidated results of operations for the years ended December 31, 2014 and 2013 as if the above described acquisitions in 2014 had occurred on January 1, 2013. The unaudited pro-forma information does not purport to be indicative of the results that actually would have occurred if the acquisitions had been in effect for the years ended December 31, 2014 and 2013. The unaudited data presented is in thousands, except per share data.
 
Year Ended December 31,
 
2014
 
2013
Real estate revenues
$
295,876

 
$
286,523

Income (loss) from continuing operations
$
4,524

 
$
(4,128
)
Net income
$
111,055

 
$
33,411

Diluted earnings per share
$
1.66

 
$
0.50

Land and Capitalized Development Costs [Table Text Block]
We include joint venture land acquisitions and related capitalized development costs on our consolidated balance sheets in properties under development or held for future development until placed in service or sold. As of December 31, 2014 and 2013 the land and capitalized development costs for 1225 First Street were as follows (in thousands):
 
December 31,
 
2014
 
2013
Properties under development or held for future development
$
20,807

 
$
20,788

Schedule Of Accounts Payable And Accrued Liabilities Of Joint Ventures [Table Text Block]
As of December 31, 2014 and 2013 the liabilities for 1225 First Street were as follows (in thousands):
 
December 31,
 
2014
 
2013
Accounts payable and other liabilities
$
38

 
$
39

As of December 31, 2014 and 2013, The Maxwell's liabilities were as follows (in thousands):
 
December 31,
 
2014
 
2013
Mortgage notes payable
$
27,690

 
$
7,297

Accounts payable and other liabilities
2,196

 
1,785

Tenant security deposits
17

 

 
$
29,903

 
$
9,082

schedule of assets in joint venture [Table Text Block]
As of December 31, 2014 and 2013 The Maxwell's assets were as follows (in thousands):
 
December 31,
 
2014
 
2013
Land
$
12,851

 
$

Income producing property
18,432

 

Properties under development or held for future development
17,947

 
27,343

 
$
49,230

 
$
27,343

Schedule of income statement results for medical office segment sold [Table Text Block] [Table Text Block]
The impact of the sale on our medical office segment on revenues and net income is summarized as follows (in thousands, except per share data):
 
Year Ending December 31,
 
2014
 
2013
 
2012
Real estate revenues
$
892

 
$
41,012

 
$
44,674

Net income
546

 
14,044

 
8,128

Basic and diluted net income per share
0.01

 
0.21

 
0.12


Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
As of December 31, 2014 and 2013, investment in real estate for properties sold or held for sale were as follows (in thousands):
 
December 31,
 
2014
 
2013
Medical office
$

 
$
125,967

Less accumulated depreciation

 
(46,066
)
Investment in real estate sold or held for sale, net
$

 
$
79,901



As of December 31, 2014 and 2013, liabilities related to properties sold or held for sale were as follows (in thousands):
 
December 31,
 
2014
 
2013
Other liabilities
$

 
$
1,533