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Partners Equity of The Operating Partnership
9 Months Ended
Sep. 30, 2011
Beneficiaries Equity of The Parent Company and Partners Equity of The Operating [Abstract] 
PARTNERS' EQUITY OF THE OPERATING PARTNERSHIP
13. PARTNERS’ EQUITY OF THE OPERATING PARTNERSHIP
Earnings per Common Partnership Unit
The following table details the number of units and net income used to calculate basic and diluted earnings per common partnership unit (in thousands, except unit and per unit amounts; results may not add due to rounding):
                                 
    Three-month periods ended September 30,  
    2011     2010  
    Basic     Diluted     Basic     Diluted  
 
                               
Numerator
                               
Income (loss) from continuing operations
  $ 6,581     $ 6,581     $ (6,998 )   $ (6,998 )
 
                               
Amount allocable to unvested restricted unitholders
    (121 )     (121 )     (128 )     (128 )
Preferred unit dividends
    (1,998 )     (1,998 )     (1,998 )     (1,998 )
 
                       
Income (loss) from continuing operations available to common unitholders
    4,462       4,462       (9,124 )     (9,124 )
 
                               
Discontinued operations attributable to common unitholders
    30       30       382       382  
 
                       
Net income (loss) attributable to common unitholders
  $ 4,492     $ 4,492     $ (8,742 )   $ (8,742 )
 
                       
 
                               
Denominator
                               
Weighted-average units outstanding
    145,372,247       145,372,247       139,423,151       139,423,151  
Contingent securities/Share based compensation
    —       1,278,964       —       —  
 
                       
Total weighted-average units outstanding
    145,372,247       146,651,211       139,423,151       139,423,151  
 
                       
 
                               
Earnings per Common Partnership Unit:
                               
Income (loss) from continuing operations attributable to common unitholders
  $ 0.03     $ 0.03     $ (0.06 )   $ (0.06 )
Discontinued operations attributable to common unitholders
    —       —       —       —  
 
                       
Net income (loss) attributable to common unitholders
  $ 0.03     $ 0.03     $ (0.06 )   $ (0.06 )
 
                       
                                 
    Nine-month periods ended September 30,  
    2011     2010  
    Basic     Diluted     Basic     Diluted  
 
                               
Numerator
                               
Loss from continuing operations
  $ (4,042 )   $ (4,042 )   $ (20,021 )   $ (20,021 )
 
                               
Amount allocable to unvested restricted unitholders
    (384 )     (384 )     (384 )     (384 )
Preferred unit dividends
    (5,994 )     (5,994 )     (5,994 )     (5,994 )
 
                       
Loss from continuing operations available to common unitholders
    (10,420 )     (10,420 )     (26,399 )     (26,399 )
 
                               
Discontinued operations attributable to common unitholders
    3,929       3,929       7,406       7,406  
 
                       
Loss attributable to common unitholders
  $ (6,491 )   $ (6,491 )   $ (18,993 )   $ (18,993 )
 
                       
 
                               
Denominator
                               
Weighted-average units outstanding
    145,027,662       145,027,662       135,135,380       135,135,380  
 
                               
Earnings per Common Partnership Unit:
                               
Income (loss) from continuing operations attributable to common unitholders
  $ (0.07 )   $ (0.07 )   $ (0.19 )   $ (0.19 )
Discontinued operations attributable to common unitholders
    0.03       0.03       0.05       0.05  
 
                       
Net income (loss) attributable to common unitholders
  $ (0.04 )   $ (0.04 )   $ (0.14 )   $ (0.14 )
 
                       
Unvested restricted units are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per share. For the nine-months ended September 30, 2011 and 2010, earnings representing nonforfeitable dividends as noted in the table above were allocated to the unvested restricted units.
Common Partnership Unit and Preferred Mirror Units
On September 13, 2011, the Operating Partnership declared a distribution of $0.15 per common partnership unit, totaling $20.5 million, which was paid on October 19, 2011 to unitholders of record as of October 5, 2011.
On September 13, 2011, the Operating Partnership declared distributions on its Series D Preferred Mirror Units and Series E Preferred Mirror Units to holders of record as of September 30, 2011. These units are entitled to a preferential return of 7.50% and 7.375%, respectively. Distributions paid on October 17, 2011 to holders of Series D Preferred Mirror Units and Series E Preferred Mirror Units totaled $0.9 million and $1.1 million, respectively.
During the nine-month period ended September 30, 2011, the Parent Company contributed net proceeds amounting to $8.0 million from the sale of 679,285 common shares under its Offering Program to the Operating Partnership in exchange for the issuance of 679,285 common partnership units to the Parent Company. The Operating Partnership used the net proceeds from the sales to repay balances on its unsecured revolving Credit Facility and for general corporate purposes.
The Operating Partnership issued 7,111,112 Class F (2010) Units on August 5, 2010 in connection with its acquisition of Three Logan Square. The Class F (2010) Units were valued based on the closing market price of the Parent Company’s common shares on the acquisition date ($11.54) less $0.60 to reflect that these units do not begin to accrue a dividend prior to the first anniversary of their issuance. The Class F (2010) Units are subject to redemption at the option of the holders after the first anniversary of the acquisition. The Operating Partnership may, at its option, satisfy the redemption either for an amount, per unit, of cash equal to the market price of one of the Parent Company’s common share (based on the five-day trading average ending on the date of the exchange) or for one of the Parent Company’s common shares. The redemption value of these Class F (2010) Units and the other redeemable limited partnership units are presented in the mezzanine section of the Operating Partnership’s balance sheet because they can be redeemed in cash or with Parent Company common shares.
Common Unit Repurchases
The Parent Company did not purchase any shares during the nine months ended September 30, 2011 and accordingly, during the nine months ended September 30, 2011, the Operating Partnership did not repurchase any units in connection with the Parent Company’s share repurchase program.