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Segment Information
 6 Months Ended
Jun. 30, 2018
Segment Reporting [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. At June 30, 2018, the Company's reportable segments were based on the Company's method of internal reporting and were 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.
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 rental 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
 
Six Months Ended
 
 
 
June 30, 2018
 
June 30, 2017
 
June 30, 2018
 
June 30, 2017
Operating revenue
 
 
 
 
 
 
 
 
 
Carolinas/Richmond
 
$
19,513

 
$
18,225

 
$
39,306

 
$
36,282

 
Chicago/Minneapolis
 
16,622

 
15,767

 
33,139

 
31,642

 
Florida
 
15,862

 
14,482

 
31,270

 
28,730

 
Houston
 
16,091

 
14,779

 
31,954

 
29,553

 
Lehigh/Central PA
 
38,525

 
39,815

 
76,610

 
81,350

 
Philadelphia
 
10,717

 
10,928

 
23,061

 
22,363

 
Southeastern PA
 
6,694

 
15,127

 
16,876

 
29,742

 
United Kingdom
 
3,783

 
3,262

 
8,056

 
6,431

 
Other
 
41,676

 
32,166

 
81,301

 
62,538

Segment-level operating revenue
 
169,483

 
164,551

 
341,573

 
328,631

 
 
 
 
 
 
 
 
 
 
 Reconciliation to total operating revenues
 
 
 
 
 
 
 
 
 
 Development service fee income
 
19,824

 
18,259

 
46,176

 
29,744

 
 Discontinued operations
 
(12,412
)
 
(19,672
)
 
(28,162
)
 
(38,214
)
 
 Other
 
(291
)
 
320

 
(389
)
 
121

 Total operating revenue
 
$
176,604

 
$
163,458

 
$
359,198

 
$
320,282

 
 
 
 
 
 
 
 
 
 
SNOI
 
 
 
 
 
 
 
 
 
 
Carolinas/Richmond
 
$
14,271

 
$
13,094

 
$
28,318

 
$
26,077

 
Chicago/Minneapolis
 
10,223

 
10,011

 
20,125

 
19,360

 
Florida
 
10,768

 
10,003

 
21,586

 
19,510

 
Houston
 
9,114

 
7,761

 
18,711

 
14,562

 
Lehigh/Central PA
 
28,348

 
29,083

 
56,115

 
58,661

 
Philadelphia
 
8,566

 
8,475

 
18,720

 
17,244

 
Southeastern PA
 
4,516

 
8,507

 
11,405

 
16,619

 
United Kingdom
 
1,577

 
1,649

 
4,006

 
3,506

 
Other
 
28,533

 
21,935

 
55,082

 
42,191

SNOI
 
115,916

 
110,518

 
234,068

 
217,730

 
 
 
 
 
 
 
 
 
 
 Reconciliation to income from continuing operations
 
 
 
 
 
 
 
 
 
Interest expense (1)
 
(23,202
)
 
(21,942
)
 
(46,661
)
 
(44,285
)
 
Development service fee income
 
19,824

 
18,259

 
46,176

 
29,744

 
Development service fee expense
 
(79,808
)
 
(17,828
)
 
(107,875
)
 
(28,832
)
 
Depreciation/amortization expense (1) (2)
 
(31,932
)
 
(33,115
)
 
(65,340
)
 
(66,308
)
 
Impairment charges - real estate assets
 
(26,000
)
 
—

 
(26,000
)
 
—

 
Gain on property dispositions
 
48,582

 
5,895

 
52,703

 
6,702

 
Equity in earnings of unconsolidated joint ventures
 
7,428

 
3,990

 
14,192

 
9,721

 
General and administrative expense (1) (2)
 
(7,036
)
 
(10,879
)
 
(21,722
)
 
(23,101
)
 
Expensed pursuit costs
 
(59
)
 
(153
)
 
(383
)
 
(185
)
 
Systems implementation expense
 
(1,469
)
 
(15
)
 
(2,175
)
 
(15
)
 
Discontinued operations excluding (loss) gain on property dispositions
 
(7,908
)
 
(7,516
)
 
(15,484
)
 
(13,872
)
 
Income taxes (2)
 
(6
)
 
104

 
(18
)
 
(176
)
 
Other
 
(1,110
)
 
(2,016
)
 
(2,161
)
 
(3,933
)
Income from continuing operations
 
$
13,220

 
$
45,302

 
$
59,320

 
$
83,190



(1)
Includes activity on discontinued operations.
(2)
Excludes costs that are included in determining SNOI.


The Company's total assets by reportable segment as of June 30, 2018 and December 31, 2017 is as follows (in thousands):

 
June 30, 2018
 
December 31, 2017
Carolinas/Richmond
$
523,878

 
$
543,922

Chicago/Minnesota
602,024

 
615,186

Florida
541,623

 
533,861

Houston
513,394

 
498,584

Lehigh/Central PA
1,218,460

 
1,210,746

Philadelphia
629,190

 
665,843

Southeastern PA
142,322

 
241,128

United Kingdom
248,703

 
251,824

Other
2,048,328

 
1,807,653

Segment-level total assets
6,467,922

 
6,368,747

Corporate Other
82,951

 
71,010

Total assets
$
6,550,873

 
$
6,439,757