|
4. Properties, net
Operating properties, net consisted of the following (in thousands):
|
|
|
March 31,
|
|
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
|
Land
|
|
$
|
471,995
|
|
$
|
472,483
|
|
|
Buildings and improvements
|
|
2,802,570
|
|
2,801,252
|
|
|
Less: accumulated depreciation
|
|
(570,242
|
)
|
(559,679
|
)
|
|
Operating properties, net
|
|
$
|
2,704,323
|
|
$
|
2,714,056
|
|
Projects we had in development or held for future development consisted of the following (in thousands):
|
|
|
March 31,
|
|
December 31,
|
|
|
|
|
2012
|
|
2011
|
|
|
Land
|
|
$
|
225,085
|
|
$
|
229,833
|
|
|
Construction in progress, excluding land
|
|
408,883
|
|
409,086
|
|
|
Projects in development or held for future development
|
|
$
|
633,968
|
|
$
|
638,919
|
|
Dispositions and Impairments
We sold the following operating properties during the three months ended March 31, 2012 (dollars in thousands):
|
|
|
|
|
|
|
Number
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
Date of
|
|
of
|
|
Rentable
|
|
|
|
Gain on
|
|
|
Project Name
|
|
Location
|
|
Sale
|
|
Buildings
|
|
Square Feet
|
|
Sale Price
|
|
Sale
|
|
|
White Marsh Portfolio (1)
|
|
White Marsh, Maryland
|
|
1/30/2012
|
|
5
|
|
163,000
|
|
$
|
19,100
|
|
$
|
2,445
|
|
|
1101 Sentry Gateway
|
|
San Antonio, Texas
|
|
1/31/2012
|
|
1
|
|
95,000
|
|
13,500
|
|
1,750
|
|
|
222 and 224 Schilling Circle
|
|
Hunt Valley, Maryland
|
|
2/10/2012
|
|
2
|
|
56,000
|
|
4,400
|
|
202
|
|
|
|
|
|
|
|
|
8
|
|
314,000
|
|
$
|
37,000
|
|
$
|
4,397
|
|
(1) Includes three properties comprising the White Marsh Professional Center, 8615 Ridgely’s Choice and 8114 Sandpiper Circle.
We also sold non-operating properties during the three months ended March 31, 2012 for aggregate sale prices totaling $25.7 million; in addition to the gain on sales reflected above, we also recognized impairment losses on certain of these sales that are disclosed below.
As discussed in our 2011 Annual Report on Form 10-K, we implemented a plan in 2011 to dispose of office properties and land that are no longer closely aligned with our strategy (the “Strategic Reallocation Plan”). During the three months ended March 31, 2012, we recognized aggregate net impairment losses in connection with the Strategic Reallocation Plan of $6.6 million (including $1.5 million classified as discontinued operations and $1.1 million in exit costs). Approximately $5.1 million of these losses related to our expected disposition of an additional property. The expected cash flows from the resulting shortened holding period for this property are not sufficient to recover its carrying value.
2012 Construction Activities
As of March 31, 2012, we had construction underway on six office properties that we estimate will total 789,000 square feet upon completion, including three in the Baltimore/Washington Corridor, one in Greater Baltimore, one in Northern Virginia and one in Huntsville, Alabama, and redevelopment underway on one office property in Greater Philadelphia that we estimate will total 113,000 square feet upon completion.
|