Segment Information

9 Months Ended

Sep. 30, 2011

Segment Reporting Information [Line Items]

Segment Information

Segment Information

The Company operates its portfolio of properties primarily throughout the Mid-Atlantic, Southeastern, Midwestern and Southwestern United States. Additionally, the Company owns certain assets in the United Kingdom. The Company reviews the performance of the portfolio on a geographical basis. During the nine months ended September 30, 2011, the Company realigned the reportable segments due to changes in internal reporting responsibilities. As such, the following are considered the Company’s reportable segments:

REGIONS	MARKETS
Northeast	Southeastern PA; Lehigh/Central PA; New Jersey; Maryland
Central	Minnesota; Chicago/Milwaukee; Houston; Arizona
South	Richmond; Virginia Beach; Carolinas; Jacksonville; Orlando; South Florida; Tampa
Metro	Philadelphia; Metro Washington, D.C.
United Kingdom	County of Kent; West Midlands

The following lists the Company’s reportable segments as characterized in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010:

REGIONS (BEFORE 2011 CHANGES)	MARKETS (BEFORE 2011 CHANGES)
Northeast	Southeastern PA; Lehigh/Central PA; New Jersey
Midwest	Minnesota; Milwaukee; Chicago
Mid-Atlantic	Maryland; Carolinas; Richmond; Virginia Beach
South	Jacksonville; Orlando; South Florida; Tampa; Texas; Arizona
Philadelphia/D.C.	Philadelphia; Metro Washington, D.C.
United Kingdom	County of Kent; West Midlands

As required by FASB ASC 280, “Segment Reporting,” consolidated financial statements issued by the Company in the future will reflect modifications to the Company’s reportable segments resulting from the change described above, including reclassification of all comparative prior period reportable segment information.

Gross investment in operating real estate decreased by $117.3 million for the Lehigh/Central PA reportable segment and decreased by $147.0 million for the South reportable segment from December 31, 2010 (as reported in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010) as compared to September 30, 2011 due to properties having been sold prior to September 30, 2011 (see note 3 below).

The Company evaluates performance of the reportable segments based on property level operating income, which is calculated as rental revenue and operating expense reimbursement less rental property expenses and real estate taxes. The accounting policies of the reportable segments are the same as those for the Company on a consolidated basis.

The operating information by reportable segment is as follows (in thousands):

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011

	NORTHEAST
	SOUTHEASTERN PA		LEHIGH/ CENTRAL  PA		NORTHEAST - OTHER		CENTRAL		SOUTH		METRO		UNITED KINGDOM		TOTAL
Operating revenue	$	42,673	$	22,523	$	17,312	$	31,055	$	53,469	$	7,039	$	1,108	$	175,179
Rental property expenses and real estate taxes	14,232		5,132		6,673		11,179		17,562		1,718		106		56,602
Property level operating income	$	28,441	$	17,391	$	10,639	$	19,876	$	35,907	$	5,321	$	1,002	118,577
Interest and other income															2,019
Interest expense															(31,188		)
General and administrative															(13,625		)
Depreciation and amortization															(41,414		)
Income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and discontinued operations															34,369
Gain on property dispositions															1,898
Income taxes															(356		)
Equity in earnings of unconsolidated joint ventures															827
Discontinued operations															4,943
Net income															$	41,681

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2010

	NORTHEAST
	SOUTHEASTERN PA		LEHIGH/ CENTRAL PA		NORTHEAST - OTHER		CENTRAL		SOUTH		METRO		UNITED KINGDOM		TOTAL
Operating revenue	$	45,475	$	21,388	$	18,335	$	28,856	$	53,107	$	7,214	$	1,081	$	175,456
Rental property expenses and real estate taxes	14,528		4,752		6,889		10,001		18,010		1,680		236		56,096
Property level operating income	$	30,947	$	16,636	$	11,446	$	18,855	$	35,097	$	5,534	$	845	119,360
Interest and other income															2,400
Interest expense															(32,410		)
General and administrative															(12,608		)
Depreciation and amortization															(39,996		)
Income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and discontinued operations															36,746
Gain on property dispositions															691
Income taxes															(475		)
Equity in earnings of unconsolidated joint ventures															385
Discontinued operations															3,659
Net income															$	41,006

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011

	NORTHEAST
	SOUTHEASTERN PA		LEHIGH/ CENTRAL PA		NORTHEAST - OTHER		CENTRAL		SOUTH		METRO		UNITED KINGDOM		TOTAL
Operating revenue	$	130,766	$	67,829	$	52,630	$	89,186	$	159,088	$	21,146	$	3,321	$	523,966
Rental property expenses and real estate taxes	44,400		15,489		19,520		31,293		49,140		4,105		594		164,541
Property level operating income	$	86,366	$	52,340	$	33,110	$	57,893	$	109,948	$	17,041	$	2,727	359,425
Interest and other income															7,011
Interest expense															(96,354		)
General and administrative															(42,848		)
Depreciation and amortization															(123,840		)
Income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and discontinued operations															103,394
Gain on property dispositions															3,361
Income taxes															(969		)
Equity in earnings of unconsolidated joint ventures															2,470
Discontinued operations															61,209
Net income															$	169,465

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010

	NORTHEAST
	SOUTHEASTERN PA		LEHIGH/ CENTRAL PA		NORTHEAST - OTHER		CENTRAL		SOUTH		METRO		UNITED KINGDOM		TOTAL
Operating revenue	$	135,523	$	61,510	$	55,295	$	86,047	$	158,316	$	21,442	$	3,126	$	521,259
Rental property expenses and real estate taxes	44,056		14,100		20,307		30,236		51,936		4,584		687		165,906
Property level operating income	$	91,467	$	47,410	$	34,988	$	55,811	$	106,380	$	16,858	$	2,439	355,353
Interest and other income															7,748
Interest expense															(103,922		)
General and administrative															(40,023		)
Depreciation and amortization															(119,091		)
Income before property dispositions, income taxes, equity in earnings of unconsolidated joint ventures and discontinued operations															100,065
Gain on property dispositions															3,701
Income taxes															(1,430		)
Equity in earnings of unconsolidated joint ventures															1,562
Discontinued operations															12,944
Net income															$	116,842