Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v2.4.0.8
Segment Reporting
 6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Segment Reporting

17.   SEGMENT REPORTING

 

The Company operates in two business segments: (i) real estate and (ii) construction services.  The Company provides leasing, property 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, 2013 and 2012.  The Company had no long lived assets in foreign locations as of June 30, 2013 and December 31, 2012.  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, 2013 and 2012 and selected asset information as of June 30, 2013 and December 31, 2012 regarding the Company’s operating segments are as follows:  (dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction

 

 

Corporate

 

 

Total

 

 

Real Estate

 

 

Services

 

 

& Other (d)

 

 

Company

Total revenues:

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013

$
164,734 

 

$
6,978 

 

$
6,226 

 

$
177,938 

June 30, 2012

 
166,785 

 

 
4,739 

 

 
521 

 

 
172,045 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013

$
332,158 

 

$
15,757 

 

$
10,744 

 

$
358,659 

June 30, 2012

 
339,400 

 

 
8,572 

 

 
781 

 

 
348,753 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating and interest expenses(a):

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013

$
63,419 

 

$
6,966 

 

$
47,286 

 

$
117,671 

June 30, 2012

 
64,057 

 

 
4,687 

 

 
44,079 

 

 
112,823 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013

$
130,785 

 

$
15,511 

 

$
93,119 

 

$
239,415 

June 30, 2012

 
126,945 

 

 
8,577 

 

 
85,243 

 

 
220,765 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings (loss) of unconsolidated

 

 

 

 

 

 

 

 

 

 

 

 joint ventures:

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013

$
(80)

 

 

 -

 

 

 -

 

$
(80)

June 30, 2012

 
1,733 

 

 

 -

 

 

 -

 

 
1,733 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013

$
(1,830)

 

 

 -

 

 

 -

 

$
(1,830)

June 30, 2012

 
2,333 

 

 

 -

 

 

 -

 

 
2,333 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income (loss) (b):

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013

$
101,235 

 

$
12 

 

$
(41,060)

 

$
60,187 

June 30, 2012

 
104,461 

 

 
52 

 

 
(43,558)

 

 
60,955 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013

$
199,543 

 

$
246 

 

$
(82,375)

 

$
117,414 

June 30, 2012

 
214,788 

 

 
(5)

 

 
(84,462)

 

 
130,321 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013

$
4,448,547 

 

$
4,967 

 

$
184,550 

 

$
4,638,064 

December 31, 2012

 
4,448,656 

 

 
6,255 

 

 
71,134 

 

 
4,526,045 

 

 

 

 

 

 

 

 

 

 

 

 

Total long-lived assets (c):

 

 

 

 

 

 

 

 

 

 

 

June 30, 2013

$
4,206,728 

 

 

 -

 

$
11,135 

 

$
4,217,863 

December 31, 2012

 
4,223,837 

 

 

 -

 

 
10,571 

 

 
4,234,408 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)  Total operating and interest expenses represent the sum of:  real estate taxes; utilities; operating services; direct construction costs; real estate services expenses; 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.  Also includes the revenues and expenses attributable to the Roseland Business.

 

 

The following schedule reconciles net operating income to net income available to common shareholders: (dollars in thousands) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Three Months Ended

 

 

          Six Months Ended

 

 

June 30,

 

 

June 30,

 

 
2013 

 

 
2012 

 

 
2013 

 

 
2012 

Net operating income

$
60,187 

 

$
60,955 

 

$
117,414 

 

$
130,321 

Less:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 
(48,422)

 

 
(46,326)

 

 
(94,482)

 

 
(92,526)

Impairments

 
(23,851)

 

 

 -

 

 
(23,851)

 

 

 -

Loss from early extinguishment of debt

 

 -

 

 
(4,415)

 

 

 -

 

 
(4,415)

Income from continuing operations

 
(12,086)

 

 
10,214 

 

 
(919)

 

 
33,380 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations

 
1,364 

 

 
2,831 

 

 
3,286 

 

 
4,920 

Loss from early extinguishment of debt

 
(703)

 

 

 -

 

 
(703)

 

 

 -

Realized gains (losses) and unrealized losses

 

 

 

 

 

 

 

 

 

 

 

on disposition of rental property, net

 
37,609 

 

 
(1,634)

 

 
37,609 

 

 
2,378 

Total discontinued operations, net

 
38,270 

 

 
1,197 

 

 
40,192 

 

 
7,298 

Net income

 
26,184 

 

 
11,411 

 

 
39,273 

 

 
40,678 

Noncontrolling interest in consolidated joint ventures

 
62 

 

 
92 

 

 
124 

 

 
171 

Noncontrolling interest in Operating Partnership

 
1,455 

 

 
(1,256)

 

 
93 

 

 
(4,090)

Noncontrolling interest in discontinued operations

 
(4,630)

 

 
(146)

 

 
(4,863)

 

 
(891)

Net income available to common shareholders

$
23,071 

 

 
10,101 

 

$
34,627 

 

 
35,868