Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting, Measurement Disclosures [Abstract]

Segment Information

Segment Information

The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. The Company's reportable segments are as follows.

• Carolinas;

• Chicago/Milwaukee;

• Houston;

• Lehigh/Central PA;

• Minnesota;

• Orlando;

• Philadelphia;

• Richmond/Hampton Roads;

• Southeastern PA;

• South Florida;

• Tampa;

• United Kingdom.

Certain other segments are aggregated into an "Other" category which includes the reportable segments: Arizona; Atlanta; Cincinnati/Columbus/Indianapolis; Dallas; Maryland; New Jersey; Northern Virginia; Southern California; Washington D.C. and other.

The Company evaluates the performance of its reportable segments based on net operating income. Net operating income includes operating revenue from external customers, real estate taxes, amortization of lease transaction costs and other operating expenses which relate directly to the management and operation of the assets within each reportable segment.

The Company's accounting policies for the segments are the same as those used in the Company's consolidated financial statements. There are no material inter-segment transactions.

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

		For the Three Months
		Ended March 31,
		2015			2014
Operating revenue
	Carolinas	$	9,844		$	8,316
	Chicago/Milwaukee	9,793			8,570
	Houston	12,324			11,867
	Lehigh/Central PA	33,554			29,623
	Minnesota	12,672			13,750
	Orlando	5,264			7,995
	Philadelphia	9,982			9,408
	Richmond/Hampton Roads	10,490			10,068
	South Florida	12,206			12,309
	Southeastern PA	39,238			38,437
	Tampa	13,462			13,173
	United Kingdom	3,725			4,102
	Other	34,398			35,039
Segment-level operating revenue		206,952			202,657
Reconciliation to total operating revenues
	Discontinued operations	—			(4,748		)
	Other	(51		)	(279		)
Total operating revenue		$	206,901		$	197,630
Net operating income
	Carolinas	$	6,617		$	5,742
	Chicago/Milwaukee	6,743			5,163
	Houston	7,221			7,053
	Lehigh/Central PA	22,971			19,240
	Minnesota	5,985			6,619
	Orlando	3,571			5,492
	Philadelphia	7,022			6,721
	Richmond/Hampton Roads	6,229			5,920
	South Florida	6,829			7,527
	Southeastern PA	20,988			19,600
	Tampa	8,702			8,441
	United Kingdom	2,516			2,850
	Other	22,176			21,731
Segment-level net operating income		127,570			122,099
Reconciliation to income from continuing operations
	Interest expense (1)	(34,670		)	(39,764		)
	Depreciation/amortization expense (1) (2)	(43,514		)	(44,536		)
	Impairment - real estate assets	(15,739		)	—
	Gain on property dispositions	2,271			—
	Equity in earnings of unconsolidated joint ventures	6,906			4,159
	General and administrative expense (1) (2)	(12,574		)	(12,401		)
	Discontinued operations excluding interest and gain on property dispositions	—			(2,290		)
	Income taxes (2)	(707		)	(483		)
	Other	2,319			(526		)
Income from continuing operations		$	31,862		$	26,258

(1) Includes activity on discontinued operations.

(2) Excludes costs which are included in determining segment-level net operating income.

During the three months ended March 31, 2015, the Company did not acquire any operating properties.

During the three months ended March 31, 2015, the Company realized proceeds of $42.2 million from the sale of seven properties in the Company's Southeastern PA segment and segments grouped into the Company's "Other" category.