Basis of Presentation (Tables)

9 Months Ended

Sep. 30, 2018

Summary of Revenue Earned by Reportable Segments

The following is a summary of revenue earned by the Company’s reportable segments (see Note 12, “Segment Information,” for further information) during the three- and nine-month periods ended September 30, 2018 (in thousands):

	Three-month period ended
	September 30, 2018
	Philadelphia CBD		Pennsylvania Suburbs		Metropolitan Washington, D.C.			Austin, Texas			Other		Corporate (a)			Total
Base rent	$	42,289	$	29,116	$	20,635		$	5,008		$	2,035	$	(492	)	$	98,591
Straight-line rent		1,912		1,202		(492	)		(43	)		65		(110	)		2,534
Point of sale		5,905		73		287			134			56		-			6,455
Total rents		50,106		30,391		20,430			5,099			2,156		(602	)		107,580
Tenant reimbursements		13,087		3,704		902			2,286			698		(120	)		20,557
Termination fees		37		461		-			-			-		-			498
Third party management fees, labor reimbursement and leasing		203		6		1,279			1,223			846		1,387			4,944
Other income		919		183		143			33			7		134			1,419
Total revenue	$	64,352	$	34,745	$	22,754		$	8,641		$	3,707	$	799		$	134,998

	Nine-month period ended
	September 30, 2018
	Philadelphia CBD		Pennsylvania Suburbs		Metropolitan Washington, D.C.			Austin, Texas		Other		Corporate (a)			Total
Base rent	$	121,940	$	88,929	$	61,575		$	14,442	$	6,340	$	(1,464	)	$	291,762
Straight-line rent		9,194		2,208		(645	)		164		189		(345	)		10,765
Point of sale		17,526		201		783			385		175		-			19,070
Total rents		148,660		91,338		61,713			14,991		6,704		(1,809	)		321,597
Tenant reimbursements		37,585		10,795		2,687			6,258		2,124		(355	)		59,094
Termination fees		192		1,300		138			-		-		-			1,630
Third party management fees, labor reimbursement and leasing		632		18		4,130			4,155		4,345		4,251			17,531
Other income		3,409		509		344			70		14		944			5,290
Total revenue	$	190,478	$	103,960	$	69,012		$	25,474	$	13,187	$	3,031		$	405,142

(a) Corporate includes intercompany eliminations necessary to reconcile to consolidated Company totals.

Summary of Gain on Sale for Each Land Parcel

The Company sold the following office property during the nine-month period ended September 30, 2018 (dollars in thousands):

Disposition Date	Property/Portfolio Name	Location	Type	Number of Properties	Rentable Square Feet		Sales Price		Net Proceeds on Sale		Loss on Sale
June 21, 2018	20 East Clementon Road	Gibbsboro, NJ	Office	1		38,260	$	2,000	$	1,850	$	(35	)
Total Dispositions				1		38,260	$	2,000	$	1,850	$	(35	)

The Company sold the following land parcels during the nine-month period ended September 30, 2018 (dollars in thousands):

Disposition Date	Property/Portfolio Name	Location	Number of Parcels		Acres		Sales Price		Net Proceeds on Sale		Gain on Sale
March 16, 2018	Garza Ranch - Office	Austin, TX		1		6.6	$	14,571	$	14,509	$	1,424	(a)
January 10, 2018	Westpark Land	Durham, NC		1		13.1		485		412		22
Total Dispositions				2		19.7	$	15,056	$	14,921	$	1,446

(a) As of March 31, 2018, the Company had not transferred control to the buyer of this land parcel, or two other parcels at this site which were sold during 2017, because of a completion guarantee which required the Company, as developer, to complete certain infrastructure improvements on behalf of the buyers of the land parcels. The cash received at settlement was recorded as “Deferred income, gains and rent” on the Company’s consolidated balance sheets. During the three months ended June 30, 2018, the infrastructure improvements were substantially completed, at which time the Company transferred control of the land parcels. As a result, the Company then recognized the sale. See Note 2, “Basis of Presentation,” for further discussion of the infrastructure improvements and related revenue recognition.

Land and Sale [Member]

Summary of Gain on Sale for Each Land Parcel

There was no activity or gain recognized during the three-month period ended September 30, 2018. The following table details the gain on sale for each land parcel, as of September 30, 2018 (dollars, in thousands):

Disposition Date	Property/Portfolio Name	Location	Number of Parcels		Acres		Sales Price		Net Proceeds on Sale		Gain on Sale
March 16, 2018	Garza Ranch - Office	Austin, TX		1		6.6	$	14,571	$	14,509	$	1,424
April 28, 2017	Garza Ranch - Multifamily	Austin, TX		1		8.4		11,800		11,560		1,233
January 30, 2017	Garza Ranch - Hotel	Austin, TX		1		1.7		3,500		3,277		180
Total Dispositions				3		16.7	$	29,871	$	29,346	$	2,837