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Segment Information
 6 Months Ended
Jun. 30, 2013
Segment Reporting, Measurement Disclosures [Abstract]  
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. 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/Hampton Roads; Carolinas; Jacksonville; Orlando; South Florida; Tampa
Metro
Philadelphia; Metro Washington, D.C.
United Kingdom
County of Kent; West Midlands; Cambridge

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
 
For the Six Months Ended
 
 
 
June 30,
 
June 30,
 
 
 
2013
 
2012
 
2013
 
2012
Operating revenue
 
 
 
 
 
 
 
 
 
 Northeast - Southeastern PA
 
$
40,389

 
$
41,690

 
$
81,443

 
$
83,885

 
 Northeast - Lehigh / Central PA
 
24,681

 
23,913

 
49,358

 
47,991

 
 Northeast - Other
 
14,660

 
14,454

 
30,054

 
31,854

 
 Central
 
34,129

 
28,827

 
66,529

 
60,971

 
 South
 
53,768

 
51,746

 
107,330

 
105,758

 
 Metro
 
9,824

 
8,236

 
19,587

 
16,424

 
 United Kingdom
 
1,120

 
1,104

 
2,220

 
2,265

Segment-level operating revenue
 
178,571

 
169,970

 
356,521

 
349,148

 
 
 
 
 
 
 
 
 
 
 Reconciliation to total operating revenue
 
 
 
 
 
 
 
 
 
 Discontinued operations
 
(436
)
 
(5,281
)
 
(3,955
)
 
(19,663
)
 
 Other
 
(31
)
 
(195
)
 
226

 
(27
)
 Total operating revenue
 
$
178,104

 
$
164,494

 
$
352,792

 
$
329,458

 
 
 
 
 
 
 
 
 
 
 Net operating income
 
 
 
 
 
 
 
 
 
 Northeast - Southeastern PA
 
$
22,255

 
$
24,814

 
$
44,868

 
$
49,984

 
 Northeast - Lehigh / Central PA
 
16,550

 
16,558

 
33,218

 
32,753

 
 Northeast - Other
 
7,845

 
7,628

 
16,167

 
16,733

 
 Central
 
18,384

 
15,544

 
37,307

 
33,291

 
 South
 
33,341

 
31,316

 
66,658

 
63,971

 
 Metro
 
4,728

 
5,986

 
11,525

 
11,615

 
 United Kingdom
 
(321
)
 
(121
)
 
(455
)
 
(349
)
Segment-level net operating income
 
102,782

 
101,725

 
209,288

 
207,998

 
 
 
 
 
 
 
 
 
 
 Reconciliation to income from continuing operations
 
 
 
 
 
 
 
 
 
 Interest expense (1)
 
(32,138
)
 
(30,911
)
 
(64,220
)
 
(61,815
)
 
 Depreciation/amortization expense (2)
 
(29,061
)
 
(25,812
)
 
(58,368
)
 
(51,464
)
 
 Gain on property dispositions
 
3,071

 
335

 
4,871

 
858

 
 Equity in earnings of unconsolidated joint ventures
 
1,566

 
769

 
3,323

 
1,685

 
 General and administrative expense (2)
 
(8,945
)
 
(8,936
)
 
(22,821
)
 
(20,486
)
 
 Discontinued operations excluding gain on property dispositions
 
672

 
(1,829
)
 
(740
)
 
(6,704
)
 
 Income taxes (2)
 
(645
)
 
(109
)
 
(1,136
)
 
(195
)
 
 Other
 
(1,012
)
 
(2,362
)
 
(2,376
)
 
(3,344
)
Income from continuing operations
 
$
36,290

 
$
32,870

 
$
67,821

 
$
66,533


(1)
Includes interest on discontinued operations.
(2)
Excludes costs which are included in determining segment-level net operating income.

During the six months ended June 30, 2013, the Company realized proceeds of $126.0 million from the sale of seven operating properties. The Company's total assets by reportable segment as of June 30, 2013 and December 31, 2012 were as follows (in thousands):

 
 
June 30, 2013
 
December 31, 2012
Total assets
 
 
 
 
 Northeast - Southeastern PA
$
803,432

 
$
816,437

 
 Northeast - Lehigh / Central PA
779,078

 
780,182

 
 Northeast - Other
382,070

 
388,446

 
 Central
1,102,707

 
1,073,631

 
 South
1,435,576

 
1,455,805

 
 Metro
567,987

 
478,835

 
 United Kingdom
120,343

 
138,025

 
 Other
56,599

 
42,818

Total assets
$
5,247,792

 
$
5,174,179