REAL ESTATE PROPERTIES (Tables)

12 Months Ended

Dec. 31, 2012

The Company’s real estate properties and development at December 31, 2012 and 2011 were as follows:



	December 31,
	2012			2011
	(In thousands)
Real estate properties:
Land	$	244,199		235,394
Buildings and building improvements	1,102,597			1,056,783
Tenant and other improvements	272,981			258,267
Development	148,255			112,149
	1,768,032			1,662,593
Less accumulated depreciation	(496,247		)	(451,805	)
	$	1,271,785		1,210,788

Gain on Sales of Real Estate

A summary of gain on sales of real estate for the years ended December 31, 2012, 2011 and 2010 follows:

Gain on Sales of Real Estate



Real Estate Properties	Location	Size (in Square Feet)	Date Sold	Net Sales Price		Basis	Recognized Gain
				(In thousands)
2012
Tampa East Distribution Center III and Tampa West Distribution Center VIII	Tampa, FL	10,500	02/15/2012	$	538	371	167
Estrella Distribution Center	Phoenix, AZ	174,000	06/13/2012	6,861		4,992	1,869
Braniff Distribution Center	Tulsa, OK	259,000	12/27/2012	9,688		5,214	4,474
Total for 2012				$	17,087	10,577	6,510
2011
Deferred gain recognized from previous sales				$	—	—	36
2010
Deferred gain recognized from previous sales				$	—	—	37

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

The following table presents the components of revenues and expenses for the properties sold or held for sale during 2012, 2011 and 2010.



DISCONTINUED OPERATIONS	Years Ended December 31,
DISCONTINUED OPERATIONS	2012			2011		2010
	(In thousands)
Income from real estate operations	$	1,403		1,463		1,115
Expenses from real estate operations	(346		)	(498	)	(463	)
Property net operating income from discontinued operations	1,057			965		652
Other income	—			5		42
Depreciation and amortization	(578		)	(694	)	(544	)
Income from real estate operations	479			276		150
Gain on sales of nondepreciable real estate investments, net of tax ⁽¹⁾	167			—		—
Gain on sales of real estate investments	6,343			—		—
Income from discontinued operations	$	6,989		276		150


(1)	Gains on sales of nondepreciable real estate investments are subject to federal and state taxes. The Company recognized taxes of $6,000 on the gains related to the sales of Tampa East Distribution Center III and Tampa West Distribution Center VIII during 2012.

Development



DEVELOPMENT		Costs Incurred
DEVELOPMENT		Costs Transferred in 2012 ⁽¹⁾			For the Year Ended 12/31/12	Cumulative as of 12/31/12	Estimated Total Costs ⁽²⁾	Building Completion Date
		(In thousands)
	(Unaudited)						(Unaudited)	(Unaudited)
LEASE-UP	Building Size (Square feet)
Southridge IX, Orlando, FL	76,000	$	—		938	6,300	7,100	03/12
World Houston 31B, Houston, TX	35,000	—			1,591	2,951	3,900	04/12
Thousand Oaks 1, San Antonio, TX	36,000	—			1,130	3,539	4,700	05/12
Thousand Oaks 2, San Antonio, TX	73,000	—			1,645	4,809	5,600	05/12
Beltway Crossing X, Houston, TX	78,000	—			1,810	3,816	4,300	06/12
Southridge XI, Orlando, FL	88,000	2,298			3,167	5,465	6,200	09/12
Total Lease-Up	386,000	2,298			10,281	26,880	31,800
UNDER CONSTRUCTION								Anticipated Building Completion Date
Beltway Crossing XI, Houston, TX	87,000	1,184			2,416	3,600	4,900	02/13
World Houston 33, Houston, TX	160,000	1,338			7,746	9,084	10,900	02/13
World Houston 34, Houston, TX	57,000	1,039			1,636	2,675	3,600	03/13
World Houston 35, Houston, TX	45,000	806			1,307	2,113	2,800	03/13
Ten West Crossing 1, Houston, TX	30,000	423			1,319	1,742	3,800	05/13
World Houston 36, Houston, TX	60,000	986			451	1,437	6,100	08/13
World Houston 37, Houston, TX	101,000	1,233			441	1,674	7,100	08/13
World Houston 38, Houston, TX	129,000	1,523			694	2,217	9,400	09/13
Total Under Construction	669,000	8,532			16,010	24,542	48,600
PROSPECTIVE DEVELOPMENT (PRIMARILY LAND)	Estimated Building Size (Square feet)
Phoenix, AZ	528,000	—			2,236	5,697	40,100
Tucson, AZ	70,000	—			—	417	4,900
Denver, CO	84,000	—			711	711	7,700
Fort Myers, FL	663,000	—			443	17,646	48,100
Orlando, FL	1,426,000	(2,298		)	4,301	26,600	93,100
Tampa, FL	519,000	—			1,659	6,145	30,800
Jackson, MS	28,000	—			—	706	2,000
Charlotte, NC	95,000	—			89	1,335	6,800
Dallas, TX	120,000	—			471	1,235	7,800
El Paso, TX	251,000	—			—	2,444	11,300
Houston, TX	2,341,000	(8,532		)	15,850	28,433	157,400
San Antonio, TX	478,000	—			448	5,464	31,800
Total Prospective Development	6,603,000	(10,830		)	26,208	96,833	441,800
	7,658,000	$	—		52,499	148,255	522,200
DEVELOPMENTS COMPLETED AND TRANSFERRED TO REAL ESTATE PROPERTIES DURING 2012	Building Size (Square feet)							Building Completion Date
Beltway Crossing VIII, Houston, TX	88,000	$	—		43	5,242		09/11
World Houston 32, Houston, TX	96,000	—			66	6,276		01/12
World Houston 31A, Houston, TX	44,000	—			243	4,086		06/11
Beltway Crossing IX, Houston, TX	45,000	—			1,215	2,356		06/12
Total Transferred to Real Estate Properties	273,000	$	—		1,567	17,960	⁽³⁾


(1)	Represents costs transferred from Prospective Development (primarily land) to Under Construction during the period.


(2)	Included in these costs are development obligations of $20.4 million and tenant improvement obligations of $6.1 million on properties under development.


(3)	Represents cumulative costs at the date of transfer.

Future Minimum Rental Receipts Under Non-cancelable Leases

The following schedule indicates approximate future minimum rental receipts under non-cancelable leases for real estate properties by year as of December 31, 2012:

Future Minimum Rental Receipts Under Non-Cancelable Leases



Years Ending December 31,	(In thousands)
2013	$	137,081
2014	110,073
2015	81,752
2016	55,304
2017	36,811
Thereafter	55,985
Total minimum receipts	$	477,006

Future Minimum Ground Lease Payments

The following schedule indicates approximate future minimum ground lease payments for these properties by year as of December 31, 2012:

Future Minimum Ground Lease Payments



Years Ending December 31,	(In thousands)
2013	$	731
2014	731
2015	731
2016	731
2017	731
Thereafter	13,009
Total minimum payments	$	16,664

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References+ Details