Segment Information

3 Months Ended

Mar. 31, 2017

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. During the three months ended March 31, 2017, the Company realigned its reportable segments as follows:

• Carolinas/Richmond;

• Chicago/Minneapolis;

• Florida;

• Houston;

• Lehigh/Central PA;

• Philadelphia;

• Southeastern PA; and

• United Kingdom.

Certain other segments are aggregated into an "Other" category which includes the reportable segments: Arizona; Atlanta; Cincinnati/Columbus/Indianapolis; Dallas; DC Metro; New Jersey; and Southern California.

Comparative prior periods have been restated to reflect current segment disclosures.

The Company evaluates the performance of its reportable segments based on segment net operating income (“SNOI”). SNOI is defined as net operating income (rental revenue and operating expense reimbursements less property and real estate tax expenses) less 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):

		Three Months
		Ended March 31,
		2017			2016
Operating revenue
	Carolinas/Richmond	$	18,056		$	15,760
	Chicago/Minneapolis	15,875			21,539
	Florida	14,248			29,318
	Houston	14,774			14,766
	Lehigh/Central PA	41,535			34,243
	Philadelphia	11,436			10,355
	Southeastern PA	14,615			25,883
	United Kingdom	3,168			3,552
	Other	30,372			34,998
Segment-level operating revenue		164,079			190,414
Reconciliation to total operating revenues
	Development service fee income	11,485			—
	Other	(198		)	(274		)
Total operating revenue		$	175,366		$	190,140
SNOI
	Carolinas/Richmond	$	12,982		$	10,840
	Chicago/Minneapolis	9,349			11,371
	Florida	9,511			18,047
	Houston	6,801			8,833
	Lehigh/Central PA	29,578			24,202
	Philadelphia	8,759			7,097
	Southeastern PA	8,113			13,751
	United Kingdom	1,858			2,405
	Other	20,256			22,825
SNOI		107,207			119,371
Reconciliation to net income
	Interest expense	(22,343		)	(31,412		)
	Depreciation/amortization expense (1)	(33,193		)	(39,798		)
	Gain on property dispositions	807			20,521
	Equity in earnings of unconsolidated joint ventures	5,731			4,914
	General and administrative expense (1)	(12,254		)	(14,539		)
	Income taxes (1)	(280		)	(570		)
	Other	(1,431		)	576
Net income		$	44,244		$	59,063

(1) Excludes costs which are included in determining SNOI.

The Company's total assets by reportable segment as of March 31, 2017 and December 31, 2016 is as follows (in thousands):

	March 31, 2017		December 31, 2016
Carolinas/Richmond	$	510,910	$	503,920
Chicago/Minnesota	613,095		616,298
Florida	515,539		514,431
Houston	528,071		530,438
Lehigh/Central PA	1,340,842		1,311,815
Philadelphia	585,797		557,510
Southeastern PA	265,353		262,155
United Kingdom	210,761		189,766
Other	1,428,459		1,403,431
Segment-level total assets	5,998,827		5,889,764
Corporate Other	85,074		103,049
Total assets	$	6,083,901	$	5,992,813