| Segment Reporting |
16. SEGMENT REPORTING
The
Company operates in two business segments: (i) real estate and (ii)
construction services. The Company
provides leasing, property and facilities management, acquisition, development,
construction and tenant-related services for its portfolio. In May 2006, in conjunction with the
Company’s acquisition of the Gale Company and related businesses, the Company
acquired a business specializing solely in construction and related services
whose operations comprise the Company’s construction services segment. The Company had no revenues from foreign
countries recorded for the six months ended June 30, 2012 and 2011. The Company had no long lived assets in
foreign locations as of June 30, 2012 and December 31, 2011. The accounting policies of the segments are
the same as those described in Note 2: Significant Accounting
Policies, excluding depreciation and amortization.
The
Company evaluates performance based upon net operating income from the combined
properties in the real estate segment and net operating income from its
construction services segment.
Selected
results of operations for the three and six months ended June 30, 2012 and 2011
and selected asset information as of June 30, 2012 and December 31, 2011
regarding the Company’s operating segments are as follows (dollars in thousands):
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Construction
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Corporate
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Total
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Real Estate
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Services
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& Other
(d)
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Company
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Total revenues:
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Three months
ended:
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June
30, 2012
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$
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173,202
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$
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4,739
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$
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521
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$
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178,462
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June
30, 2011
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175,576
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2,905
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687
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179,168
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Six months
ended:
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June
30, 2012
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$
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352,089
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8,572
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$
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781
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$
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361,442
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June
30, 2011
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355,313
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6,819
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1,249
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363,381
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Total
operating and interest expenses(a):
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Three months
ended:
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June
30, 2012
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$
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66,273
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$
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4,687
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$
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44,102
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$
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115,062
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(e)
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June
30, 2011
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68,470
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3,264
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40,222
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111,956
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(f)
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Six months
ended:
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June
30, 2012
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$
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131,502
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$
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8,577
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$
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85,293
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$
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225,372
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(g)
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June
30, 2011
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143,351
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7,386
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79,189
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229,926
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(h)
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Equity in
earnings (loss) of unconsolidated
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joint
ventures:
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Three months
ended:
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June
30, 2012
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$
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1,733
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-
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-
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$
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1,733
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June
30, 2011
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736
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-
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-
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736
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Six months
ended:
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June
30, 2012
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$
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2,333
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-
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-
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$
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2,333
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June
30, 2011
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635
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-
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-
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635
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Net
operating income (b):
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Three months
ended:
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June
30, 2012
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$
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108,662
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$
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52
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$
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(43,581)
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$
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65,133
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(e)
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June
30, 2011
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107,842
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(359)
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(39,535)
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67,948
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(f)
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Six months
ended:
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June
30, 2012
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$
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222,920
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$
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(5)
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$
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(84,512)
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$
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138,403
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(g)
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June
30, 2011
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212,597
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(567)
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(77,940)
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134,090
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(h)
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Total
assets:
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June
30, 2012
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$
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4,249,417
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$
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8,063
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$
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12,727
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$
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4,270,207
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December
31, 2011
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4,272,469
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7,022
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16,268
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4,295,759
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Total
long-lived assets (c):
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June
30, 2012
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$
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4,016,269
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-
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$
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2,955
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$
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4,019,224
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December
31, 2011
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4,034,651
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-
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2,272
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4,036,923
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(a) Total operating and interest
expenses represent the sum of: real
estate taxes; utilities; operating services; direct construction costs; real
estate services salaries, wages and other costs; general and administrative and
interest expense (net of interest income). All interest expense, net of
interest income, (including for property-level mortgages) is excluded from
segment amounts and classified in Corporate & Other for all periods.
(b) Net operating income represents
total revenues less total operating and interest expenses [as defined in Note
(a)], plus equity in earnings (loss) of unconsolidated joint ventures, for the
period.
(c) Long-lived assets are comprised of
net investment in rental property, unbilled rents receivable and investments in
unconsolidated joint ventures.
(d) Corporate & Other represents
all corporate-level items (including interest and other investment income,
interest expense and non-property general and administrative expense) as well
as intercompany eliminations necessary to reconcile to consolidated Company
totals.
(e) Excludes $47,991 of depreciation and
amortization.
(f) Excludes $47,846 of depreciation and
amortization.
(g) Excludes $95,813 of depreciation and
amortization.
(h) Excludes $95,553 of depreciation and amortization.
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