REAL ESTATE PROPERTIES (Tables)

12 Months Ended

Dec. 31, 2013

The Company’s real estate properties and development at December 31, 2013 and 2012 were as follows:



	December 31,
	2013			2012
	(In thousands)
Real estate properties:
Land	$	265,871		244,199
Buildings and building improvements	1,210,318			1,102,597
Tenant and other improvements	302,370			272,981
Development	148,767			148,255
	1,927,326			1,768,032
Less accumulated depreciation	(550,113		)	(496,247	)
	$	1,377,213		1,271,785

Gain on Sales of Real Estate

A summary of gain on sales of real estate for the years ended December 31, 2013, 2012 and 2011 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)
2013
Tampa West Distribution Center V	Tampa, FL	12,000	12/20/2013	$	609	442	167
Tampa West Distribution Center VII	Tampa, FL	6,000	12/20/2013	422		417	5
Tampa East Distribution Center II	Tampa, FL	31,000	12/30/2013	1,929		1,303	626
Total for 2013				$	2,960	2,162	798
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

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 2013, 2012 and 2011.



DISCONTINUED OPERATIONS	Years Ended December 31,
DISCONTINUED OPERATIONS	2013			2012		2011
	(In thousands)
Income from real estate operations	$	306		1,737		1,475
Expenses from real estate operations	(87		)	(448	)	(499	)
Property net operating income from discontinued operations	219			1,289		976
Other income	—			—		5
Depreciation and amortization	(130		)	(929	)	(712	)
Income from real estate operations	89			360		269
Gain on sales of nondepreciable real estate investments, net of tax ⁽¹⁾	—			167		—
Gain on sales of real estate investments	798			6,343		—
Income from discontinued operations	$	887		6,870		269


(1)	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 2013 ⁽¹⁾			For the Year Ended 12/31/13		Cumulative as of 12/31/13	Estimated Total Costs ⁽²⁾	Building Completion Date
		(In thousands)
	(Unaudited)							(Unaudited)	(Unaudited)
LEASE-UP	Building Size (Square feet)
Thousand Oaks 3, San Antonio, TX	66,000	$	1,232		3,068		4,300	5,000	07/13
Ten West Crossing 2, Houston, TX	46,000	908			3,181		4,089	5,300	09/13
Ten West Crossing 3, Houston, TX	68,000	693			3,676		4,369	5,300	09/13
World Houston 37, Houston, TX	101,000	—			3,705		5,379	7,100	09/13
Chandler Freeways, Phoenix, AZ	126,000	1,811			6,047		7,858	8,900	11/13
Total Lease-Up	407,000	4,644			19,677		25,995	31,600
UNDER CONSTRUCTION									Anticipated Building Completion Date
Horizon I, Orlando, FL	109,000	2,178			3,123		5,301	7,700	02/14
Steele Creek I, Charlotte, NC	71,000	895			3,372		4,267	5,300	02/14
Steele Creek II, Charlotte, NC	71,000	894			2,447		3,341	5,300	02/14
Ten West Crossing 4, Houston, TX	68,000	927			2,534		3,461	4,800	02/14
World Houston 39, Houston, TX	94,000	922			714		1,636	5,700	05/14
Rampart IV, Denver, CO	84,000	977			741		1,718	8,300	06/14
Ten West Crossing 5, Houston, TX	101,000	1,113			299		1,412	7,000	08/14
World Houston 40, Houston, TX	202,000	1,354			676		2,030	11,700	09/14
Total Under Construction	800,000	9,260			13,906		23,166	55,800
PROSPECTIVE DEVELOPMENT (PRIMARILY LAND)	Estimated Building Size (Square feet)
Phoenix, AZ	406,000	(1,811		)	487		4,373	30,800
Tucson, AZ	70,000	—			—		417	4,900
Denver, CO	—	(977		)	266		—	—
Fort Myers, FL	663,000	—			212		17,858	50,000
Orlando, FL	1,267,000	(4,157		)	2,231		24,674	91,200
Tampa, FL	519,000	—			677		6,822	31,100
Jackson, MS	28,000	—			—		706	2,000
Charlotte, NC	418,000	(1,789		)	7,808		7,354	29,800
Dallas, TX	120,000	—			14		1,249	7,800
El Paso, TX	251,000	—			—		2,444	11,300
Houston, TX	1,889,000	(5,917		)	5,643		28,159	126,400
San Antonio, TX	478,000	(1,232		)	1,318		5,550	32,200
Total Prospective Development	6,109,000	(15,883		)	18,656		99,606	417,500
	7,316,000	$	(1,979	)	52,239		148,767	504,900
DEVELOPMENTS COMPLETED AND TRANSFERRED TO REAL ESTATE PROPERTIES DURING 2013	Building Size (Square feet)								Building Completion Date
Southridge IX, Orlando, FL	76,000	$	—		18		6,318		03/12
Southridge XI, Orlando, FL	88,000	—			37		5,502		09/12
World Houston 33, Houston, TX	160,000	—			(169	)	8,915		02/13
World Houston 31B, Houston, TX	35,000	—			75		3,026		04/12
Ten West Crossing 1, Houston, TX	30,000	—			1,402		3,144		04/13
Thousand Oaks 1, San Antonio, TX	36,000	—			454		3,993		05/12
Thousand Oaks 2, San Antonio, TX	73,000	—			513		5,322		05/12
Beltway Crossing X, Houston, TX	79,000	—			380		4,196		06/12
World Houston 34, Houston, TX	57,000	—			1,058		3,733		04/13
World Houston 35, Houston, TX	45,000	—			578		2,691		04/13
World Houston 36, Houston, TX	60,000	—			3,872		5,309		09/13
Southridge X, Orlando, FL	71,000	1,979			3,202		5,181		09/13
World Houston 38, Houston, TX	128,000	—			5,613		7,830		10/13
Beltway Crossing XI, Houston, TX	87,000	—			1,183		4,783		02/13
Total Transferred to Real Estate Properties	1,025,000	$	1,979		18,216		69,943	⁽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 $19.8 million and tenant improvement obligations of $6.6 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, 2013:

Future Minimum Rental Receipts Under Non-Cancelable Leases



Years Ending December 31,	(In thousands)
2014	$	155,016
2015	126,497
2016	91,403
2017	64,542
2018	43,663
Thereafter	82,068
Total minimum receipts	$	563,189

Future Minimum Ground Lease Payments

The following schedule indicates approximate future minimum ground lease payments for these properties by year as of December 31, 2013:

Future Minimum Ground Lease Payments



Years Ending December 31,	(In thousands)
2014	$	739
2015	739
2016	739
2017	739
2018	739
Thereafter	12,417
Total minimum payments	$	16,112

- 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.

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