Real Estate Investments (Tables)

9 Months Ended

Sep. 30, 2015

Real Estate [Abstract]

Gross Carrying Value Of Company's Properties

As of September 30, 2015 and December 31, 2014, the gross carrying value of the Company’s Properties was as follows (in thousands):

	September 30, 2015		December 31, 2014
Land	$	658,280	$	669,635
Building and improvements	3,438,563		3,409,303
Tenant improvements	532,380		524,754
	4,629,223		4,603,692
Assets held for sale - real estate investments (a)	74,706		27,436
Total	$	4,703,929	$	4,631,128

(a) Real estate investments related to assets held for sale above represents gross real estate assets and does not include accumulated depreciation or other assets on the balance sheets of the properties held for sale.

Schedule of Purchase Price Allocation

The purchase price has been allocated as follows (in thousands):

	June 22, 2015
Building, land and improvements	$	163,271
Land inventory	6,045
Intangible assets acquired (a)	50,637
Below market lease liabilities assumed (b)	(8,600		)
	$	211,353
Return of existing equity method investment	(67,261		)
Net working capital assumed	(271		)
Total cash payment at settlement	$	143,821

(a) Weighted average amortization period of 4.0 years.

(b) Weighted average amortization period of 1.5 years.

Schedule of Pro Forma Information

The supplemental pro forma operating data is not necessarily indicative of what the actual results of operations would have been assuming the transaction had been completed as set forth above, nor do they purport to represent the Company’s results of operations for future periods (in thousands except for per share amounts).

	Three-month periods ended				Nine-month periods ended
	September 30,				September 30,
	2015		2014		2015		2014
Pro forma revenue	$	152,585	$	149,951	$	455,141	$	459,722
Pro forma income from continuing operations	20,308		11,525		35,954		15,914
Pro forma net income available to common shareholders	18,346		9,607		30,305		11,332
Earnings per common share from continuing operations:
Basic -- as reported	$	0.11	$	0.05	$	0.18	$	0.05
Basic -- as pro forma	$	0.11	$	0.07	$	0.20	$	0.10
Diluted -- as reported	$	0.11	$	0.05	$	0.18	$	0.05
Diluted -- as pro forma	$	0.11	$	0.07	$	0.20	$	0.10
Earnings per common share:
Basic -- as reported	$	0.10	$	0.04	$	0.15	$	0.02
Basic -- as pro forma	$	0.10	$	0.06	$	0.17	$	0.07
Diluted -- as reported	$	0.10	$	0.04	$	0.15	$	0.02
Diluted -- as pro forma	$	0.10	$	0.06	$	0.17	$	0.07

Dispositions

The Company sold the following office properties during the nine-month period ended September 30, 2015 (dollars in thousands).

Disposition Date	Property/Portfolio Name	Location	Number of Properties	Rentable Square Feet	Sale Price		Gain/(Loss) On Sale (a)
September 29, 2015	1000 Howard Boulevard	Mt. Laurel, NJ	1	105,312	$	16,500	$	4,823
August 13, 2015	Bay Colony	Wayne, PA	4	247,294	37,500		288
August 11, 2015	741 First Avenue	King of Prussia, PA	1	77,184	4,900		372
June 10, 2015	100 Gateway Centre Parkway	Richmond, VA	1	74,991	4,100		—		(b)
April 24, 2015	Christina / Delaware Corporate Centers	Newark, DE / Wilmington, DE	5	485,182	50,125		1,797
April 9, 2015	Lake Merritt Tower	Oakland, CA	1	204,336	65,000		—		(c)
January 8, 2015	Atrium I / Libertyview	Mt. Laurel, NJ / Cherry Hill, NJ	2	221,405	28,300		9,040
Total Dispositions			15	1,415,704	$	206,425	$	16,320	(d)

(a) Gain/(Loss) on Sale is net of closing and other transaction related costs.

(b) The Company recorded an impairment loss of $0.8 million for 100 Gateway Centre Parkway during the second quarter of 2015. As such, there was no gain/(loss) at disposition for this property.

(c) The Company recorded an impairment loss of $1.7 million for Lake Merritt Tower at March 31, 2015. As such, there was no gain/(loss) at disposition for this property. Sales proceeds were deposited in escrow under Section 1031 of the Internal Revenue Code and applied to purchase the Broadmoor Austin portfolio. Refer to Broadmoor Austin Associates acquisition summary, above, for further details.

(d) Total gain/(loss) on sale does not include a deferred gain of $0.5 million related to a prior sale and $0.1 million in losses associated with prior sales.

The Company sold the following land parcels during the nine-month period ended September 30, 2015 (dollars in thousands).

Disposition Date	Property/Portfolio Name	Location	Number of Parcels	Acres	Sale Price		Gain/(Loss) on Sale
September 1, 2015	7000 Midlantic	Mt. Laurel, NJ	1	3.5	$	2,200	$	(169	)
August 31, 2015	Four Points	Austin, TX	1	8.6	2,500		71
August 25, 2015	Two Kaiser Plaza	Oakland, CA	1	1.0	11,100		3,117
Total Dispositions			3	13.1	$	15,800	$	3,019