| 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. 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. |