2.2.0.25falsefalse10201 - Disclosure - Basis of Presentation and Summary of Significant Accounting Policiestruefalsefalse1falsefalsefalsefalse1/1/2011 - 3/31/2011 Duration_1_1_2011_To_3_31_2011http://www.sec.gov/CIK0001289236duration2011-01-01T00:00:002011-03-31T00:00:002true0bmr_BasisOfPresentationAndSummaryOfSignificantAccountingPoliciesAbstractbmrfalsenadurationBasis of Presentation and Summary of Significant Accounting Policiesfalsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringBasis of Presentation and Summary of Significant Accounting PoliciesfalsefalseBasis of Presentation and Summary of Significant Accounting Policies3false0bmr_BasisOfPresentationAndSummaryOfSignificantAccountingPoliciesTextBlockbmrfalsenadurationBasis of Presentation and Summary of Significant Accounting Policiesfalsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00<div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt; font-weight: bold;" class="_mt">2. Basis of Presentation and Summary of Significant Accounting Policies</font></div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The accompanying interim financial statements are unaudited, but have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all the disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments and eliminations, consisting of normal recurring adjustments necessary for a fair presentation of the financial statements for these interim periods have been recorded. These financial statements should be read in conjunction with the audited consolidated financial statements and notes therein included in the Company's annual report on Form 10-K for the year ended </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">December&nbsp;31, 2010</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: left; line-height: 120%; padding-left: 12px; font-size: 10pt;"><font style="font-style: italic; font-family: inherit; font-size: 10pt; font-weight: bold;" class="_mt">Principles of Consolidation</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, partnerships and limited liability companies it controls, and variable interest entities for which the Company has determined itself to be the primary beneficiary. All material intercompany transactions and balances have been eliminated. The Company consolidates entities the Company controls and records a noncontrolling interest for the portions not owned by the Company. Control is determined, where applicable, by the sufficiency of equity invested and the rights of the equity holders, and by the ownership of a majority of the voting interests, with consideration given to the existence of approval or veto rights granted to the minority stockholder. If the minority stockholder holds substantive participating rights, it overcomes the presumption of control by the majority voting interest holder. In contrast, if the minority stockholder simply holds protective rights (such as consent rights over certain actions), it does not overcome the presumption of control by the majority voting interest holder.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: left; line-height: 120%; padding-left: 12px; font-size: 10pt;"><font style="font-style: italic; font-family: inherit; font-size: 10pt; font-weight: bold;" class="_mt">Investments in Partnerships and Limited Liability Companies</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The Company evaluates its investments in limited liability companies and partnerships to determine whether such entities may be a variable interest entity, or VIE, and, if a VIE, whether the Company is the primary beneficiary. Generally, an entity is determined to be a VIE when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that entity's activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is the entity that has both (1) the power to direct matters that most significantly impact the VIE's economic performance and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The Company considers a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE's economic performance including, but not limited to, the ability to direct financing, leasing, </font><font style="font-family: inherit; font-size: 10pt;" class="_mt">construction and other operating decisions and activities. In addition, the Company considers the rights of other investors to participate in policy making decisions, to replace or remove the manager and to liquidate or sell the entity. The obligation to absorb losses and the right to receive benefits when a reporting entity is affiliated with a VIE must be based on ownership, contractual, and/or other pecuniary interests in that VIE. The Company has determined that it is the primary beneficiary in five VIEs, consisting of single-tenant properties in which the tenant has a fixed-price purchase option, which are consolidated and reflected in the accompanying consolidated financial statements.</font></div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Selected financial data of the VIEs at </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">March&nbsp;31, 2011</font><font style="font-family: inherit; font-size: 10pt;" class="_mt"> and </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">December&nbsp;31, 2010</font><font style="font-family: inherit; font-size: 10pt;" class="_mt"> consist of the following:</font></div> <div style="text-align: center; line-height: 120%; font-size: 10pt;"> <div style="line-height: normal; text-indent: 0px; padding-left: 0px; padding-top: 10px;"> <table style="text-align: left; width: 100%; border-collapse: collapse; font-family: Times New Roman; margin-left: auto; font-size: 10pt; margin-right: auto;" cellspacing="0" cellpadding="0"> <tr><td colspan="8"> </td></tr> <tr><td width="71%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">March&nbsp;31, <br />2011</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">December&nbsp;31, <br />2010</font></div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: justify; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Investment in real estate, net</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">386,297</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">375,428</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: justify; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Total assets</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">425,360</font></div></td> <td style="vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">414,993</font></div></td> <td style="vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: justify; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Total debt</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">147,000</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">147,000</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: justify; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Total liabilities</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">159,089</font></div></td> <td style="vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">161,697</font></div></td> <td style="vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr></table></div></div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">If the foregoing conditions do not apply, the Company considers whether a general partner or managing member controls a limited partnership or limited liability company. The general partner in a limited partnership or managing member in a limited liability company is presumed to control that limited partnership or limited liability company. The presumption may be overcome if the limited partners or members have either (1) the substantive ability to dissolve the limited partnership or limited liability company or otherwise remove the general partner or managing member without cause or (2) substantive participating rights, which provide the limited partners or members with the ability to effectively participate in significant decisions that would be expected to be made in the ordinary course of the limited partnership's or limited liability company's business and thereby preclude the general partner or managing member from exercising unilateral control over the partnership or company. If these criteria are met and the Company is the general partner or the managing member, as applicable, the consolidation of the partnership or limited liability company is required.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Except for investments that are consolidated, the Company accounts for investments in entities over which it exercises significant influence, but does not control, under the equity method of accounting. These investments are recorded initially at cost and subsequently adjusted for equity in earnings and cash contributions and distributions. Under the equity method of accounting, the Company's net equity in the investment is reflected in the consolidated balance sheets and its share of net income or loss is included in the Company's consolidated statements of income.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">On a periodic basis, management assesses whether there are any indicators that the carrying value of the Company's investments in unconsolidated partnerships or limited liability companies may be impaired on an other than temporary basis. An investment is impaired only if management's estimate of the fair-value of the investment is less than the carrying value of the investment on an other than temporary basis. To the extent impairment has occurred, the loss is measured as the excess of the carrying value of the investment over the fair-value of the investment. Management does not believe that the value of any of the Company's unconsolidated investments in partnerships or limited liability companies was impaired as of </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">March&nbsp;31, 2011</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: left; line-height: 120%; padding-left: 12px; font-size: 10pt;"><font style="font-style: italic; font-family: inherit; font-size: 10pt; font-weight: bold;" class="_mt">Investments in Real Estate</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Investments in real estate, net consisted of the following (in thousands): </font></div> <div style="text-align: center; line-height: 120%; font-size: 10pt;"> <div style="line-height: normal; text-indent: 0px; padding-left: 0px; padding-top: 10px;"> <table style="text-align: left; width: 100%; border-collapse: collapse; font-family: Times New Roman; margin-left: auto; font-size: 10pt; margin-right: auto;" cellspacing="0" cellpadding="0"> <tr><td colspan="8"> </td></tr> <tr><td width="71%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">March&nbsp;31, <br />2011</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">December&nbsp;31, <br />2010</font></div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Land</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">578,753</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">578,753</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Land under development</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">47,920</font></div></td> <td style="vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">47,920</font></div></td> <td style="vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Buildings and improvements</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">3,186,329</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">3,160,392</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Construction in progress</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">94,218</font></div></td> <td style="vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">91,027</font></div></td> <td style="border-bottom: #000000 1px solid; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">3,907,220</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">3,878,092</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Accumulated depreciation</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(368,660</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(341,978</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">3,538,560</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">3,536,114</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr></table></div></div> <div style="text-align: left; line-height: 120%; padding-left: 12px; font-size: 10pt;"><font style="font-style: italic; font-family: inherit; font-size: 10pt; font-weight: bold;" class="_mt">Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The Company reviews long-lived assets and certain identifiable intangibles for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The review of recoverability is based on an </font><font style="font-family: inherit; font-size: 10pt;" class="_mt">estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the long-lived asset's use and eventual disposition. These cash flows consider factors such as expected future operating income, trends and prospects, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a long-lived asset, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair-value of the property. The Company is required to make subjective assessments as to whether there are impairments in the values of its investments in long-lived assets. These assessments have a direct impact on the Company's net income because recording an impairment loss results in an immediate negative adjustment to net income. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods. Although the Company's strategy is to hold its properties over the long-term, if the Company's strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized to reduce the property to the lower of the carrying amount or fair-value, and such loss could be material. As of and through </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">March&nbsp;31, 2011</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">, no assets have been identified as impaired and no such impairment losses have been recognized.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: left; line-height: 120%; padding-left: 12px; font-size: 10pt;"><font style="font-style: italic; font-family: inherit; font-size: 10pt; font-weight: bold;" class="_mt">Deferred Leasing Costs</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Leasing commissions and other direct costs associated with obtaining new or renewal leases are recorded at cost and amortized on a straight-line basis over the terms of the respective leases, with remaining terms ranging from less than one year to approximately 21 years as of </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">March&nbsp;31, 2011</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">. Deferred leasing costs also include the net carrying value of acquired in-place leases and acquired management agreements.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Deferred leasing costs, net at </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">March&nbsp;31, 2011</font><font style="font-family: inherit; font-size: 10pt;" class="_mt"> consisted of the following (in thousands):</font></div> <div style="text-align: center; line-height: 120%; font-size: 10pt;"> <div style="line-height: normal; text-indent: 0px; padding-left: 0px; padding-top: 10px;"> <table style="text-align: left; width: 100%; border-collapse: collapse; font-family: Times New Roman; margin-left: auto; font-size: 10pt; margin-right: auto;" cellspacing="0" cellpadding="0"> <tr><td colspan="12"> </td></tr> <tr><td width="59%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">Balance at</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">March&nbsp;31, <br />2011</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="text-align: center; font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">Accumulated</font></div> <div style="text-align: center; font-size: 8pt;"><font style="text-align: center; font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">Amortization</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">Net</font></div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Acquired in-place leases</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">216,674</font></div></td> <td style="vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(132,269</font></div></td> <td style="padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">84,405</font></div></td> <td style="vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Acquired management agreements</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">18,557</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(11,514</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">7,043</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Deferred leasing and other direct costs</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">44,191</font></div></td> <td style="border-bottom: #000000 1px solid; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(13,981</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">30,210</font></div></td> <td style="border-bottom: #000000 1px solid; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">279,422</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(157,764</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-right: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">121,658</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr></table></div></div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Deferred leasing costs, net at </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">December&nbsp;31, 2010</font><font style="font-family: inherit; font-size: 10pt;" class="_mt"> consisted of the following (in thousands):</font></div> <div style="text-align: center; line-height: 120%; font-size: 10pt;"> <div style="line-height: normal; text-indent: 0px; padding-left: 0px; padding-top: 10px;"> <table style="text-align: left; width: 100%; border-collapse: collapse; font-family: Times New Roman; margin-left: auto; font-size: 10pt; margin-right: auto;" cellspacing="0" cellpadding="0"> <tr><td colspan="12"> </td></tr> <tr><td width="59%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">Balance at</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">December&nbsp;31, <br />2010</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="text-align: center; font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">Accumulated</font></div> <div style="text-align: center; font-size: 8pt;"><font style="text-align: center; font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">Amortization</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">Net</font></div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Acquired in-place leases</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">216,674</font></div></td> <td style="vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(126,484</font></div></td> <td style="padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">90,190</font></div></td> <td style="vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Acquired management agreements</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">18,557</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(11,132</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">7,425</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Deferred leasing and other direct costs</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">40,531</font></div></td> <td style="border-bottom: #000000 1px solid; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(13,086</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">27,445</font></div></td> <td style="border-bottom: #000000 1px solid; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">275,762</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(150,702</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">125,060</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr></table></div></div> <div style="text-align: left; line-height: 120%; padding-left: 12px; font-size: 10pt;"><font style="font-style: italic; font-family: inherit; font-size: 10pt; font-weight: bold;" class="_mt">Revenue Recognition</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The Company commences revenue recognition on its leases based on a number of factors. In most cases, revenue recognition under a lease begins when the lessee takes possession of or controls the physical use of the leased asset. Generally, this occurs on the lease commencement date. In determining what constitutes the leased asset, the Company evaluates whether the Company or the lessee is the owner, for accounting purposes, of the tenant improvements. If the Company is the owner, for accounting purposes, of the tenant improvements, then the leased asset is the finished space and revenue recognition begins when the lessee takes possession of the finished space, typically when the improvements are substantially complete. If the Company concludes that it is not the owner, for accounting purposes, of the tenant improvements (the lessee is the owner), then the leased asset is the unimproved space and any tenant improvement allowances funded under the lease are treated as lease incentives, which reduce revenue recognized on a straight-line basis over the remaining non-cancelable term of the respective lease. In these circumstances, the Company begins revenue recognition when the lessee takes possession of the unimproved space for the lessee to construct improvements. The determination of who is the owner, for accounting purposes, of the tenant improvements determines the nature of the leased asset and when revenue recognition under a lease begins. The Company considers a number of different factors to evaluate whether it or the lessee is the owner of the tenant improvements for accounting purposes. These factors include:</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; padding-bottom: 8px; line-height: 120%; padding-left: 18px;"><font style="text-align: justify; padding-bottom: 8px; padding-right: 30px; font-family: inherit; font-size: 10pt;" class="_mt">&bull;</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">whether the lease stipulates how and on what a tenant improvement allowance may be spent;</font></div> <div style="text-align: justify; padding-bottom: 8px; line-height: 120%; padding-left: 18px;"><font style="text-align: justify; padding-bottom: 8px; padding-right: 30px; font-family: inherit; font-size: 10pt;" class="_mt">&bull;</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">whether the tenant or landlord retain legal title to the improvements; </font></div> <div style="text-align: justify; padding-bottom: 8px; line-height: 120%; padding-left: 18px;"><font style="text-align: justify; padding-bottom: 8px; padding-right: 30px; font-family: inherit; font-size: 10pt;" class="_mt">&bull;</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">the uniqueness of the improvements; </font></div> <div style="text-align: justify; padding-bottom: 8px; line-height: 120%; padding-left: 18px;"><font style="text-align: justify; padding-bottom: 8px; padding-right: 30px; font-family: inherit; font-size: 10pt;" class="_mt">&bull;</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">the expected economic life of the tenant improvements relative to the length of the lease;</font></div> <div style="text-align: justify; padding-bottom: 8px; line-height: 120%; padding-left: 18px;"><font style="text-align: justify; padding-bottom: 8px; padding-right: 30px; font-family: inherit; font-size: 10pt;" class="_mt">&bull;</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">the responsible party for construction cost overruns; and </font></div> <div style="text-align: justify; padding-bottom: 8px; line-height: 120%; padding-left: 18px;"><font style="text-align: justify; padding-bottom: 8px; padding-right: 30px; font-family: inherit; font-size: 10pt;" class="_mt">&bull;</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">who constructs or directs the construction of the improvements. </font></div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The determination of who owns the tenant improvements, for accounting purposes, is subject to significant judgment. In making that determination, the Company considers all of the above factors. However, no one factor is determinative in reaching a conclusion.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">All leases are classified as operating leases and minimum rents are recognized on a straight-line basis over the term of the related lease. The excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in accrued straight-line rents on the accompanying consolidated balance sheets and contractually due but unpaid rents are included in accounts receivable. Existing leases at acquired properties are reviewed at the time of acquisition to determine if contractual rents are above or below current market rents for the acquired property. An identifiable lease intangible asset or liability is recorded based on the present value (using a discount rate that reflects the risks associated with the acquired leases) of the difference between (1) the contractual amounts to be paid pursuant to the in-place leases and (2) the Company's estimate of the fair market lease rates for the corresponding in-place leases at acquisition, measured over a period equal to the remaining non-cancelable term of the leases and any fixed rate renewal periods (based on the Company's assessment of the likelihood that the renewal periods will be exercised). The capitalized above-market lease values are amortized as a reduction of rental revenue on a straight-line basis over the remaining non-cancelable terms of the respective leases. The capitalized below-market lease values are amortized as an increase to rental revenue on a straight-line basis over the remaining non-cancelable terms of the respective leases and any fixed-rate renewal periods, if applicable. If a tenant vacates its space prior to the contractual termination of the lease and no rental payments are being made on the lease, any unamortized balance of the related intangible will be written off.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Acquired above-market leases, net consisted of the following (in thousands):</font></div> <div style="text-align: center; line-height: 120%; font-size: 10pt;"> <div style="line-height: normal; text-indent: 0px; padding-left: 0px; padding-top: 10px;"> <table style="text-align: left; width: 100%; border-collapse: collapse; font-family: Times New Roman; margin-left: auto; font-size: 10pt; margin-right: auto;" cellspacing="0" cellpadding="0"> <tr><td colspan="8"> </td></tr> <tr><td width="71%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">March&nbsp;31, <br />2011</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">December&nbsp;31, <br />2010</font></div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Acquired above-market leases</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">43,138</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">43,138</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Accumulated amortization</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(15,069</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(12,572</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">28,069</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">30,566</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr></table></div></div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Acquired below-market leases, net consisted of the following (in thousands):</font></div> <div style="text-align: center; line-height: 120%; font-size: 10pt;"> <div style="line-height: normal; text-indent: 0px; padding-left: 0px; padding-top: 10px;"> <table style="text-align: left; width: 100%; border-collapse: collapse; font-family: Times New Roman; margin-left: auto; font-size: 10pt; margin-right: auto;" cellspacing="0" cellpadding="0"> <tr><td colspan="8"> </td></tr> <tr><td width="71%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">March&nbsp;31, <br />2011</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">December&nbsp;31, <br />2010</font></div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Acquired below-market leases</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">40,156</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">40,156</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Accumulated amortization</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(32,591</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(32,193</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">7,565</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">7,963</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr></table></div></div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Lease incentives, net, which is included in other assets on the accompanying consolidated balance sheets, consisted of the following (in thousands):</font></div> <div style="text-align: center; line-height: 120%; font-size: 10pt;"> <div style="line-height: normal; text-indent: 0px; padding-left: 0px; padding-top: 10px;"> <table style="text-align: left; width: 100%; border-collapse: collapse; font-family: Times New Roman; margin-left: auto; font-size: 10pt; margin-right: auto;" cellspacing="0" cellpadding="0"> <tr><td colspan="8"> </td></tr> <tr><td width="71%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">March&nbsp;31, <br />2011</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">December&nbsp;31, <br />2010</font></div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Lease incentives</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">30,065</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">27,062</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Accumulated amortization</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(6,216</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(5,698</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">23,849</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">21,364</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr></table></div></div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Rental operations expenses, consisting of real estate taxes, insurance and common area maintenance costs, are subject to recovery from tenants under the terms of lease agreements. Amounts recovered are dependent on several factors, including occupancy and lease terms. Revenues are recognized in the period the expenses are incurred. The reimbursements are recorded in revenues as tenant recoveries, and the expenses are recorded in rental operations expenses, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the credit risk.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">On an ongoing basis, the Company evaluates the recoverability of tenant balances, including rents receivable, straight-line </font><font style="font-family: inherit; font-size: 10pt;" class="_mt">rents receivable, tenant improvements, deferred leasing costs and any acquisition intangibles. When it is determined that the recoverability of tenant balances is not probable, an allowance for expected losses related to tenant receivables, including straight-line rents receivable, utilizing the specific identification method, is recorded as a charge to earnings. Upon the termination of a lease, the amortization of tenant improvements, deferred leasing costs and acquisition intangible assets and liabilities is accelerated to the expected termination date as a charge to their respective line items and tenant receivables are written off as a reduction of the allowance in the period in which the balance is deemed to be no longer collectible. For financial reporting purposes, a lease is treated as terminated upon a tenant filing for bankruptcy, when a space is abandoned and a tenant ceases rent payments, or when other circumstances indicate that termination of a tenant's lease is probable (e.g., eviction). Lease termination fees are recognized in other income when the related leases are canceled, the amounts to be received are fixed and determinable and collectability is assured, and when the Company has no continuing obligation to provide services to such former tenants. The effect of lease terminations for the </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">three</font><font style="font-family: inherit; font-size: 10pt;" class="_mt"> months ended </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">March&nbsp;31, 2011</font><font style="font-family: inherit; font-size: 10pt;" class="_mt"> and </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">2010</font><font style="font-family: inherit; font-size: 10pt;" class="_mt"> was as follows (in thousands):</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: center; line-height: 120%; font-size: 10pt;"> <div style="line-height: normal; text-indent: 0px; padding-left: 0px; padding-top: 10px;"> <table style="text-align: left; width: 100%; border-collapse: collapse; font-family: Times New Roman; margin-left: auto; font-size: 10pt; margin-right: auto;" cellspacing="0" cellpadding="0"> <tr><td colspan="8"> </td></tr> <tr><td width="71%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="7"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">Three Months Ended</font></div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="7"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">March 31,</font></div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">2011</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">2010</font></div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Rental revenues</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">&#8212;</font></div></td> <td style="vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">&#8212;</font></div></td> <td style="vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Other income</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">729</font></div></td> <td style="border-bottom: #000000 1px solid; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">78</font></div></td> <td style="border-bottom: #000000 1px solid; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 20px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Total revenue</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">729</font></div></td> <td style="border-bottom: #000000 1px solid; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">78</font></div></td> <td style="border-bottom: #000000 1px solid; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Rental operations expense</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">238</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">9</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Depreciation and amortization</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">282</font></div></td> <td style="border-bottom: #000000 1px solid; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">&#8212;</font></div></td> <td style="border-bottom: #000000 1px solid; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 20px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Total expenses</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">520</font></div></td> <td style="border-bottom: #000000 1px solid; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">9</font></div></td> <td style="border-bottom: #000000 1px solid; background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Net effect of lease terminations</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">209</font></div></td> <td style="border-bottom: #000000 3px double; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">69</font></div></td> <td style="border-bottom: #000000 3px double; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr></table></div></div> <div style="text-align: left; line-height: 120%; padding-left: 12px; font-size: 10pt;"><font style="font-style: italic; font-family: inherit; font-size: 10pt; font-weight: bold;" class="_mt">Investments</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The Company, through its Operating Partnership, holds investments in equity securities in certain publicly-traded companies and privately-held companies primarily involved in the life science industry. The Company does not acquire investments for trading purposes and, as a result, all of the Company's investments in publicly-traded companies are considered "available-for-sale" and are recorded at fair-value. Changes in the fair-value of investments classified as available-for-sale are recorded in other comprehensive income. The fair-value of the Company's equity securities in publicly-traded companies is determined based upon the closing trading price of the equity security as of the balance sheet date. Investments in equity securities of privately-held companies are generally accounted for under the cost method, because the Company does not influence any operating or financial policies of the companies in which it invests. The classification of investments is determined at the time each investment is made, and such determination is reevaluated at each balance sheet date. The cost of investments sold is determined by the specific identification method, with net realized gains and losses included in other income. For all investments in equity securities, if a decline in the fair-value of an investment below its carrying value is determined to be other-than-temporary, such investment is written down to its estimated fair-value with a non-cash charge to earnings. The factors that the Company considers in making these assessments include, but are not limited to, market prices, market conditions, available financing, prospects for favorable or unfavorable clinical trial results, new product initiatives and new collaborative agreements.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Investments in equity securities, which are included in other assets on the accompanying consolidated balance sheets, consisted of the following (in thousands):</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"> <div style="line-height: normal; text-indent: 0px; padding-left: 0px; padding-top: 10px;"> <table style="text-align: left; width: 100%; border-collapse: collapse; font-family: Times New Roman; font-size: 10pt;" cellspacing="0" cellpadding="0"> <tr><td colspan="8"> </td></tr> <tr><td width="71%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">March&nbsp;31, <br />2011</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;" colspan="3"> <div style="text-align: center; font-size: 8pt;"><font style="font-family: inherit; font-size: 8pt; font-weight: bold;" class="_mt">December&nbsp;31, <br />2010</font></div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Equity securities in publicly-traded companies, initial cost basis</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">4,557</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">4,133</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Unrealized loss</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(2,391</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(73</font></div></td> <td style="border-bottom: #000000 1px solid; padding-bottom: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">)</font></div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Equity securities in publicly-traded companies, fair-value(1)</font></div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">2,166</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">4,060</font></div></td> <td style="background-color: #cceeff; vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Equity securities in privately-held companies, initial cost basis(2)</font></div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">&#8212;</font></div></td> <td style="vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; padding-left: 2px; vertical-align: bottom; padding-top: 2px;" colspan="2"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">&#8212;</font></div></td> <td style="vertical-align: bottom;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr> <tr><td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Total equity securities, fair-value(3)</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">2,166</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; padding-right: 2px; vertical-align: bottom; padding-top: 2px;"> <div style="font-size: 10pt; overflow: hidden;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; padding-left: 2px; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">$</font></div></td> <td style="border-bottom: #000000 3px double; padding-bottom: 2px; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid; padding-top: 2px;"> <div style="text-align: right; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">4,060</font></div></td> <td style="border-bottom: #000000 3px double; background-color: #cceeff; vertical-align: bottom; border-top: #000000 1px solid;"> <div style="text-align: left; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div></td></tr></table></div><font style="font-family: inherit; font-size: 10pt;" class="_mt">____________</font></div> <div style="text-align: left; padding-bottom: 6px; line-height: 120%; padding-left: 24px; font-size: 10pt; padding-top: 6px;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(1)&nbsp;&nbsp;&nbsp;&nbsp;Determination of fair-value is classified as Level 1 in the fair-value hierarchy based on the use of observable market-based inputs. </font></div> <div style="text-align: left; padding-bottom: 6px; line-height: 120%; padding-left: 24px; font-size: 10pt; padding-top: 6px;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(2)&nbsp;&nbsp;&nbsp;&nbsp;Investments in equity securities in privately-held companies are initially recorded at fair-value based on unobservable inputs, which are classified as Level 3 in the fair-value hierarchy. </font></div> <div style="text-align: left; padding-bottom: 6px; line-height: 120%; padding-left: 24px; font-size: 10pt; padding-top: 6px;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">(3)&nbsp;&nbsp;&nbsp;&nbsp;The valuation of the Company's investments in equity securities in total is classified as Level 1 of the fair-value hierarchy due to the de minimis value of the Company's investments in equity securities of privately-held companies.</font></div> <div style="text-align: left; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: left; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The Company's investments in two publicly traded securities currently have a fair market value that is less than the Company's initial cost basis in these securities due to decreases in their respective stock prices during the three months ended </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">March&nbsp;31, 2011</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">. However, management has the intent and ability to retain the investments for a period of time sufficient to allow for an anticipated recovery in market value. Management will continue to periodically evaluate whether any investments, the market value of which is less than the Company's initial cost basis, should be considered other-than-temporarily-impaired.</font></div> <div style="text-align: left; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The Company's remaining investments consisted of equity securities in privately-held companies, which were determined to have a de minimis fair-value at receipt. This was the result of substantial doubt about the ability to realize value from the sale of such investments due to an illiquid or non-existent market for the securities and the ongoing financial difficulties of the companies that issued the equity securities.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: left; line-height: 120%; padding-left: 12px; font-size: 10pt;"><font style="font-style: italic; font-family: inherit; font-size: 10pt; font-weight: bold;" class="_mt">Share-Based Payments</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">All share-based payments to employees are recognized in the income statement based on their fair-value. Through </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">March&nbsp;31, 2011</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">, the Company had only awarded restricted stock of the Parent Company and LTIP units of the Operating Partnership under its incentive award plan, which are valued based on the closing market price of the underlying common stock on the date of grant, and had not granted any stock options. The fair-value of all share-based payments is amortized to general and administrative expense and rental operations expense over the relevant service period, adjusted for anticipated forfeitures.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: left; line-height: 120%; padding-left: 12px; font-size: 10pt;"><font style="font-style: italic; font-family: inherit; font-size: 10pt; font-weight: bold;" class="_mt">Assets and Liabilities Measured at Fair-Value</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The Company measures financial instruments and other items at fair-value where required under GAAP, but has elected not to measure any additional financial instruments and other items at fair-value as permitted under fair-value option accounting guidance.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Fair-value measurement is determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair-value measurements, there is a fair-value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates, and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity's own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair-value measurement is based on inputs from different levels of the fair-value hierarchy, the level in the fair-value hierarchy within which the entire fair-value measurement falls is based on the lowest level input that is significant to the fair-value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair-value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The Company has used interest rate swaps to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair-values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair-value measurements. In adjusting the fair-value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair-value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of </font><font style="font-family: inherit; font-size: 10pt;" class="_mt">current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">March&nbsp;31, 2011</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">, the Company has determined that the impact of the credit valuation adjustments on the overall valuation of its derivative positions is not significant. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair-value hierarchy (see Note 9).</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The valuation of the Company's investments in equity securities of publicly-traded companies utilizes Level 1 inputs, based on the closing trading price of the securities as of the balance sheet date. The valuation of the Company's investments in equity securities of private companies utilizes Level 3 inputs (including any discounts applied to the valuations). However, as of </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">March&nbsp;31, 2011</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">, the Company's aggregate investment in equity securities of private companies was immaterial.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">No other assets or liabilities are measured at fair-value on a recurring basis, or have been measured at fair-value on a non-recurring basis subsequent to initial recognition, in the accompanying consolidated balance sheets as of </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">March&nbsp;31, 2011</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: left; line-height: 120%; padding-left: 12px; font-size: 10pt;"><font style="font-style: italic; font-family: inherit; font-size: 10pt; font-weight: bold;" class="_mt">Derivative Instruments</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The Company records all derivatives on the consolidated balance sheets at fair-value. In determining the fair-value of its derivatives, the Company considers the credit risk of its counterparties and the Company. These counterparties are generally larger financial institutions engaged in providing a variety of financial services. These institutions generally face similar risks regarding adverse changes in market and economic conditions, including, but not limited to, fluctuations in interest rates, exchange rates, equity and commodity prices and credit spreads. The ongoing disruptions in the financial markets have heightened the risks to these institutions. While management believes that its counterparties will meet their obligations under the derivative contracts, it is possible that defaults may occur.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The accounting for changes in the fair-value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair-value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair-value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair-value of the hedged asset or liability that are attributable to the hedged risk in a fair-value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risks, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">For derivatives designated as cash flow hedges, the effective portion of changes in the fair-value of the derivative is initially reported in accumulated other comprehensive income (outside of earnings) and subsequently reclassified to earnings in the period in which the hedged transaction affects earnings. If charges relating to the hedged transaction are being deferred pursuant to redevelopment or development activities, the effective portion of changes in the fair-value of the derivative are also deferred in other comprehensive income on the consolidated balance sheet, and are amortized to the income statement once the deferred charges from the hedged transaction begin again to affect earnings. The ineffective portion of changes in the fair-value of the derivative is recognized directly in earnings. The Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged item or transaction. For derivatives that are not classified as hedges, changes in the fair-value of the derivative are recognized directly in earnings in the period in which the change occurs.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known or expected cash amounts, the value of which are determined by interest rates. The Company's derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments principally related to the Company's investments and borrowings.</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The Company's primary objective in using derivatives is to add stability to interest expense and to manage its exposure to interest rate movements or other identified risks. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of </font><font style="font-family: inherit; font-size: 10pt;" class="_mt">variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying principal amount. During the </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">three</font><font style="font-family: inherit; font-size: 10pt;" class="_mt"> months ended </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">March&nbsp;31, 2011</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">, such derivatives were used to hedge the variable cash flows associated with the Company's unsecured line of credit. During the </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">three</font><font style="font-family: inherit; font-size: 10pt;" class="_mt"> months ended </font><font style="font-family: inherit; color: #000000; font-size: 10pt; text-decoration: none;" class="_mt">March&nbsp;31, 2010</font><font style="font-family: inherit; font-size: 10pt;" class="_mt">, such derivatives were used to hedge the variable cash flows associated with the Company's unsecured line of credit and secured term loan (see Note 9). The Company formally documents the hedging relationships for all derivative instruments, has historically accounted for its interest rate swap agreements as cash flow hedges, and does not use derivatives for trading or speculative purposes.</font></div> <div style="text-align: justify; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; padding-left: 12px; font-size: 10pt;"><font style="font-style: italic; font-family: inherit; font-size: 10pt; font-weight: bold;" class="_mt">Management's Estimates</font><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font></div> <div style="text-align: justify; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">Management has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reporting of revenue and expenses during the reporting period to prepare these consolidated financial statements in conformity with GAAP. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and reported amounts of revenue and expenses that are not readily apparent from other sources. Actual results could differ from those estimates under different assumptions or conditions.</font></div> <div style="text-align: justify; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: left; line-height: 120%; padding-left: 12px; font-size: 10pt;"><font style="font-style: italic; font-family: inherit; font-size: 10pt; font-weight: bold;" class="_mt">Segment Information</font></div> <div style="text-align: left; line-height: 120%; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt"> </font>&nbsp;</div> <div style="text-align: justify; line-height: 120%; text-indent: 18px; font-size: 10pt;"><font style="font-family: inherit; font-size: 10pt;" class="_mt">The Company's properties share the following similar economic and operating characteristics: (1) they have similar forecasted returns (measured by capitalization rate at acquisition), (2) they are generally occupied almost exclusively by life science tenants that are public companies, government agencies or their subsidiaries, (3) they are generally located near areas of high life science concentrations with similar demographics and site characteristics, (4) the majority of properties are designed specifically for life science tenants that require infrastructure improvements not generally found in standard properties, and (5) the associated leases are primarily triple-net leases, generally with a fixed rental rate and scheduled annual escalations, that provide for a recovery of close to 100% of operating expenses. Consequently, the Company's properties qualify for aggregation into one reporting segment.</font></div> </div>2. Basis of Presentation and Summary of Significant Accounting Policies &nbsp; The accompanying interim financial statements are unaudited, but have beenfalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringBasis of Presentation and Summary of Significant Accounting PoliciesNo authoritative reference available.falsefalseBasis of Presentation and Summary of Significant Accounting Policies12Basis of Presentation and Summary of Significant Accounting PoliciesUnKnownUnKnownUnKnownUnKnownfalsetrue