development and redevelopment programs historically , a significant portion of our growth has come from our development and redevelopment efforts . we have a proactive planning process by which we continually evaluate the size , timing , costs and scope of our development and redevelopment programs and , as necessary , scale activity to reflect the economic conditions and the real estate fundamentals that exist in our strategic submarkets . we are currently proceeding on certain redevelopment projects , and we take a cautious and selective approach when determining if a certain development or redevelopment project will benefit our portfolio . in addition , we may be unable to lease committed development or redevelopment properties at expected rental rates or within projected timeframes or complete development or redevelopment properties on schedule or within budgeted amounts , which could adversely affect our financial condition , results of operations and cash flow . financial and operating performance our financial and operating performance is dependent upon the demand for office , industrial and other commercial space in our markets , our leasing results , our acquisition , disposition and development activity , our financing activity , our cash requirements and economic and market conditions , including prevailing interest rates . volatile economic conditions could result in a reduction of the availability of financing and potentially in higher borrowing costs . these factors , coupled with an ongoing economic recovery , have reduced the volume of real estate transactions and created credit 40 stresses on some businesses . vacancy rates may increase , and rental rates may decline , through 2013 and possibly beyond as the current economic climate may negatively impacts tenants . we expect that the impact of the current state of the economy , including high unemployment and potential volatility in the financial and credit markets , could have a dampening effect on the fundamentals of our business , including increases in past due accounts , tenant defaults , lower occupancy and reduced effective rents . these conditions would negatively affect our future net income and cash flows and could have a material adverse effect on our financial condition . we believe that the quality of our assets and our strong balance sheet will enable us to raise debt capital , if necessary , in various forms and from different sources , including traditional term or secured loans from banks , pension funds and life insurance companies . however , there can be no assurance that we will be able to borrow funds on terms that are economically attractive or at all . we seek revenue growth throughout our portfolio by increasing occupancy and rental rates . occupancy at our wholly owned properties at december 31 , 2012 was 88.3 % . the table below summarizes selected operating and leasing statistics of our wholly owned operating properties for the year ended december 31 , 2012 : year ended december 31 , 2012 leasing activity : total net rentable square feet owned ( 1 ) 24,239,296 occupancy percentage ( end of period ) 88.3 % average occupancy percentage 88.3 % new leases and expansions commenced ( square feet ) 1,801,876 leases renewed ( square feet ) 1,716,736 net absorption ( square feet ) ( 2 ) 284,870 percentage change in rental rates per square feet ( 3 ) : new and expansion rental rates 3.8 % renewal rental rates 1.2 % combined rental rates 2.0 % capital costs committed ( 4 ) : leasing commissions ( per square feet ) $ 4.79 tenant improvements ( per square feet ) $ 13.11 ( 1 ) for each period , includes all properties in the core portfolio ( i.e . not under development or redevelopment ) , including properties that were sold during these periods . ( 2 ) includes leasing related to completed developments and redevelopments , as well as sold properties . ( 3 ) rental rates include base rent plus reimbursement for operating expenses and real estate taxes . ( 4 ) calculated on an average basis . in seeking to increase revenue through our operating , financing and investment activities , we also seek to minimize operating risks , including ( i ) tenant rollover risk , ( ii ) tenant credit risk and ( iii ) development risk . tenant rollover risk : we are subject to the risks that tenant leases , upon expiration , are not renewed , that space may not be relet ; and that the terms of renewal or reletting ( including the cost of renovations ) may be less favorable to us than the current lease terms . leases accounting for approximately 8.5 % of our aggregate final annualized base rents as of december 31 , 2012 ( representing approximately 7.7 % of the net rentable square feet of the properties ) expire without penalty in 2013 . we maintain an active dialogue with our tenants in an effort to maximize lease renewals . our retention rate for leases that were scheduled to expire in 2012 was 66.2 % . if we are unable to renew leases or relet space under expiring leases , at anticipated rental rates , or if tenants terminate their leases early , our cash flow would be adversely impacted . 41 tenant credit risk : in the event of a tenant default , we may experience delays in enforcing our rights as a landlord and may incur substantial costs in protecting our investment . our management regularly evaluates our accounts receivable reserve policy in light of our tenant base and general and local economic conditions . our accounts receivable allowance was $ 16.6 million or 10.9 % of total receivables ( including accrued rent receivable ) as of december 31 , 2012 compared to $ 15.5 million or 11.2 % of total receivables ( including accrued rent receivable ) as of december 31 , 2011 . story_separator_special_tag for accrued rent receivables , we consider the results of the evaluation of specific accounts as well as other factors including assigning risk factors to different industries based on our tenants standard industrial classification . considering various factors including assigning a risk factor to different industries , these percentages are based on historical collection and write-off experience adjusted for current market conditions . deferred costs we incur direct costs related to the financing , development and leasing of our properties . management exercises judgment in determining whether such costs , particularly internal costs , meet the criteria for capitalization or must be expensed . capitalized financing fees are amortized over the related loan term on a basis that approximates the effective interest method while capitalized leasing costs are amortized over the related lease term . management re-evaluates the remaining useful lives of leasing costs as the creditworthiness of our tenants and economic and market conditions change . purchase price allocation we allocate the purchase price of properties to net tangible and identified intangible assets acquired based on fair values . above-market and below-market in-place lease values for acquired properties are recorded based on the present value ( using an interest rate which reflects the risks associated with the leases acquired ) of the difference between ( i ) the contractual amounts to be paid pursuant to the in-place leases and ( ii ) our estimate of the fair market lease rates for the corresponding in-place leases , measured over a period equal to the remaining non-cancellable term of the lease ( includes the below market fixed renewal period , if applicable ) . capitalized above-market lease values are amortized as a reduction of rental income over the remaining non-cancellable terms of the respective leases . capitalized below-market lease values are amortized as an increase of rental income over the remaining non-cancellable terms of the respective leases , including any fixed-rate renewal periods . other intangible assets also include amounts representing the value of tenant relationships and in-place leases based on our evaluation of the specific characteristics of each tenant 's lease and our overall relationship with the respective tenant . we estimate the cost to execute leases with terms similar to the remaining lease terms of the in-place leases , include leasing commissions , legal and other related expenses . this intangible asset is amortized to expense over the remaining term of the respective leases and any fixed-rate bargain renewal periods . we estimate fair value through methods similar to those used by independent appraisers or by using independent appraisals . factors that we consider in our analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases . we also consider information obtained about each property as a result of our pre-acquisition due diligence , marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired . in estimating carrying costs , we include real estate taxes , insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods , which primarily range from three to twelve months . characteristics that we consider in allocating value to our tenant relationships include the nature and extent of our business relationship with the tenant , growth prospects for developing new business with the tenant , the tenant 's credit quality and expectations of lease renewals . the value of tenant relationship intangibles is amortized over the remaining initial lease term and expected renewals , but in no event longer than the remaining depreciable life of the building . the value of in-place leases is amortized over the remaining non-cancellable term of the respective leases and any fixed-rate renewal periods . in the event that a tenant terminates its lease prior to the end of the lease term , the unamortized portion of each intangible , including market rate adjustments , in-place lease values and tenant relationship values , would be charged to expense . results of operations the following discussion is based on our consolidated financial statements for the years ended december 31 , 2012 , 2011 and 2010 . we believe that presentation of our consolidated financial information , without a breakdown by segment , will effectively present important information useful to our investors . 45 net operating income ( “ noi ” ) as presented in the comparative analysis below is defined as total revenue less property operating expenses , real estate taxes and third party management expenses . property operating expenses that are included in determining noi consist of costs that are necessary and allocable to our operating properties such as utilities , property-level salaries , repairs and maintenance , property insurance , management fees and bad debt expense . general and administrative expenses that are not reflected in noi primarily consist of corporate-level salaries , amortization of share awards and professional fees that are incurred as part of corporate office management . noi is a non-gaap financial measure that we use internally to evaluate the operating performance of our real estate assets by segment , as presented in note 18 to the consolidated financial statements , and of our business as a whole . we believe noi provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level . while noi is a relevant and widely used measure of operating performance of real estate investment trusts , it does not represent cash flow from operations or net income as defined by gaap and should not be considered as an alternative to those measures in evaluating our liquidity or operating performance . noi also does not reflect general and administrative expenses , interest expenses , real estate impairment losses , depreciation and amortization costs , capital expenditures and leasing costs . trends in development and construction

loss on early extinguishment of debt during 2012 , we repurchased ( i ) $ 150.0 million of term loan indebtedness , ( ii ) $ 99.6 million of our 6.000 % guaranteed notes due 2016 , ( iii ) $ 60.8 million of our 7.500 % guaranteed notes due 2015 , ( iv ) $ 4.3 million of our 5.400 % guaranteed notes due 2014 , and ( v ) $ 0.3 million of our 5.750 % guaranteed notes due 2012 , which resulted in a net loss on early extinguishment of debt of $ 21.9 million . in addition , we prepaid the remaining balances on two of our existing mortgages , totaling $ 58.4 million , for which we incurred associated prepayment penalties of $ 0.1 million . during 2011 , we repurchased ( i ) $ 23.7 million of our 5.750 % guaranteed notes due 2012 and ( ii ) $ 22.7 million of our 7.500 % guaranteed notes due 2015 , which resulted in a net loss on early extinguishment of debt of $ 3.3 million . the loss was offset by the write-off of the unamortized fixed-rate debt premium of $ 0.5 million related to the prepayment of two of our mortgage loans during 2011. discontinued operations during 2012 , we sold one property located in moorestown , new jersey , one property located in herndon , virginia , one property located in carlsbad , california , and 11 flex/office properties located in exton , pennsylvania . these properties had total revenues of $ 7.3 million , property operating expenses of $ 2.6 million , and $ 2.8 million of depreciation and amortization expense . in addition , we recognized a deferred gain related to two properties located in trenton , new jersey that were sold during the fourth quarter of 2009. the gain was deferred as a result of a note receivable that we held from the buyer in the amount of $ 22.5 million .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```loss on early extinguishment of debt during 2012 , we repurchased ( i ) $ 150.0 million of term loan indebtedness , ( ii ) $ 99.6 million of our 6.000 % guaranteed notes due 2016 , ( iii ) $ 60.8 million of our 7.500 % guaranteed notes due 2015 , ( iv ) $ 4.3 million of our 5.400 % guaranteed notes due 2014 , and ( v ) $ 0.3 million of our 5.750 % guaranteed notes due 2012 , which resulted in a net loss on early extinguishment of debt of $ 21.9 million . in addition , we prepaid the remaining balances on two of our existing mortgages , totaling $ 58.4 million , for which we incurred associated prepayment penalties of $ 0.1 million . during 2011 , we repurchased ( i ) $ 23.7 million of our 5.750 % guaranteed notes due 2012 and ( ii ) $ 22.7 million of our 7.500 % guaranteed notes due 2015 , which resulted in a net loss on early extinguishment of debt of $ 3.3 million . the loss was offset by the write-off of the unamortized fixed-rate debt premium of $ 0.5 million related to the prepayment of two of our mortgage loans during 2011. discontinued operations during 2012 , we sold one property located in moorestown , new jersey , one property located in herndon , virginia , one property located in carlsbad , california , and 11 flex/office properties located in exton , pennsylvania . these properties had total revenues of $ 7.3 million , property operating expenses of $ 2.6 million , and $ 2.8 million of depreciation and amortization expense . in addition , we recognized a deferred gain related to two properties located in trenton , new jersey that were sold during the fourth quarter of 2009. the gain was deferred as a result of a note receivable that we held from the buyer in the amount of $ 22.5 million .
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 Suspicious Activity Report : development and redevelopment programs historically , a significant portion of our growth has come from our development and redevelopment efforts . we have a proactive planning process by which we continually evaluate the size , timing , costs and scope of our development and redevelopment programs and , as necessary , scale activity to reflect the economic conditions and the real estate fundamentals that exist in our strategic submarkets . we are currently proceeding on certain redevelopment projects , and we take a cautious and selective approach when determining if a certain development or redevelopment project will benefit our portfolio . in addition , we may be unable to lease committed development or redevelopment properties at expected rental rates or within projected timeframes or complete development or redevelopment properties on schedule or within budgeted amounts , which could adversely affect our financial condition , results of operations and cash flow . financial and operating performance our financial and operating performance is dependent upon the demand for office , industrial and other commercial space in our markets , our leasing results , our acquisition , disposition and development activity , our financing activity , our cash requirements and economic and market conditions , including prevailing interest rates . volatile economic conditions could result in a reduction of the availability of financing and potentially in higher borrowing costs . these factors , coupled with an ongoing economic recovery , have reduced the volume of real estate transactions and created credit 40 stresses on some businesses . vacancy rates may increase , and rental rates may decline , through 2013 and possibly beyond as the current economic climate may negatively impacts tenants . we expect that the impact of the current state of the economy , including high unemployment and potential volatility in the financial and credit markets , could have a dampening effect on the fundamentals of our business , including increases in past due accounts , tenant defaults , lower occupancy and reduced effective rents . these conditions would negatively affect our future net income and cash flows and could have a material adverse effect on our financial condition . we believe that the quality of our assets and our strong balance sheet will enable us to raise debt capital , if necessary , in various forms and from different sources , including traditional term or secured loans from banks , pension funds and life insurance companies . however , there can be no assurance that we will be able to borrow funds on terms that are economically attractive or at all . we seek revenue growth throughout our portfolio by increasing occupancy and rental rates . occupancy at our wholly owned properties at december 31 , 2012 was 88.3 % . the table below summarizes selected operating and leasing statistics of our wholly owned operating properties for the year ended december 31 , 2012 : year ended december 31 , 2012 leasing activity : total net rentable square feet owned ( 1 ) 24,239,296 occupancy percentage ( end of period ) 88.3 % average occupancy percentage 88.3 % new leases and expansions commenced ( square feet ) 1,801,876 leases renewed ( square feet ) 1,716,736 net absorption ( square feet ) ( 2 ) 284,870 percentage change in rental rates per square feet ( 3 ) : new and expansion rental rates 3.8 % renewal rental rates 1.2 % combined rental rates 2.0 % capital costs committed ( 4 ) : leasing commissions ( per square feet ) $ 4.79 tenant improvements ( per square feet ) $ 13.11 ( 1 ) for each period , includes all properties in the core portfolio ( i.e . not under development or redevelopment ) , including properties that were sold during these periods . ( 2 ) includes leasing related to completed developments and redevelopments , as well as sold properties . ( 3 ) rental rates include base rent plus reimbursement for operating expenses and real estate taxes . ( 4 ) calculated on an average basis . in seeking to increase revenue through our operating , financing and investment activities , we also seek to minimize operating risks , including ( i ) tenant rollover risk , ( ii ) tenant credit risk and ( iii ) development risk . tenant rollover risk : we are subject to the risks that tenant leases , upon expiration , are not renewed , that space may not be relet ; and that the terms of renewal or reletting ( including the cost of renovations ) may be less favorable to us than the current lease terms . leases accounting for approximately 8.5 % of our aggregate final annualized base rents as of december 31 , 2012 ( representing approximately 7.7 % of the net rentable square feet of the properties ) expire without penalty in 2013 . we maintain an active dialogue with our tenants in an effort to maximize lease renewals . our retention rate for leases that were scheduled to expire in 2012 was 66.2 % . if we are unable to renew leases or relet space under expiring leases , at anticipated rental rates , or if tenants terminate their leases early , our cash flow would be adversely impacted . 41 tenant credit risk : in the event of a tenant default , we may experience delays in enforcing our rights as a landlord and may incur substantial costs in protecting our investment . our management regularly evaluates our accounts receivable reserve policy in light of our tenant base and general and local economic conditions . our accounts receivable allowance was $ 16.6 million or 10.9 % of total receivables ( including accrued rent receivable ) as of december 31 , 2012 compared to $ 15.5 million or 11.2 % of total receivables ( including accrued rent receivable ) as of december 31 , 2011 . story_separator_special_tag for accrued rent receivables , we consider the results of the evaluation of specific accounts as well as other factors including assigning risk factors to different industries based on our tenants standard industrial classification . considering various factors including assigning a risk factor to different industries , these percentages are based on historical collection and write-off experience adjusted for current market conditions . deferred costs we incur direct costs related to the financing , development and leasing of our properties . management exercises judgment in determining whether such costs , particularly internal costs , meet the criteria for capitalization or must be expensed . capitalized financing fees are amortized over the related loan term on a basis that approximates the effective interest method while capitalized leasing costs are amortized over the related lease term . management re-evaluates the remaining useful lives of leasing costs as the creditworthiness of our tenants and economic and market conditions change . purchase price allocation we allocate the purchase price of properties to net tangible and identified intangible assets acquired based on fair values . above-market and below-market in-place lease values for acquired properties are recorded based on the present value ( using an interest rate which reflects the risks associated with the leases acquired ) of the difference between ( i ) the contractual amounts to be paid pursuant to the in-place leases and ( ii ) our estimate of the fair market lease rates for the corresponding in-place leases , measured over a period equal to the remaining non-cancellable term of the lease ( includes the below market fixed renewal period , if applicable ) . capitalized above-market lease values are amortized as a reduction of rental income over the remaining non-cancellable terms of the respective leases . capitalized below-market lease values are amortized as an increase of rental income over the remaining non-cancellable terms of the respective leases , including any fixed-rate renewal periods . other intangible assets also include amounts representing the value of tenant relationships and in-place leases based on our evaluation of the specific characteristics of each tenant 's lease and our overall relationship with the respective tenant . we estimate the cost to execute leases with terms similar to the remaining lease terms of the in-place leases , include leasing commissions , legal and other related expenses . this intangible asset is amortized to expense over the remaining term of the respective leases and any fixed-rate bargain renewal periods . we estimate fair value through methods similar to those used by independent appraisers or by using independent appraisals . factors that we consider in our analysis include an estimate of the carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases . we also consider information obtained about each property as a result of our pre-acquisition due diligence , marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired . in estimating carrying costs , we include real estate taxes , insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods , which primarily range from three to twelve months . characteristics that we consider in allocating value to our tenant relationships include the nature and extent of our business relationship with the tenant , growth prospects for developing new business with the tenant , the tenant 's credit quality and expectations of lease renewals . the value of tenant relationship intangibles is amortized over the remaining initial lease term and expected renewals , but in no event longer than the remaining depreciable life of the building . the value of in-place leases is amortized over the remaining non-cancellable term of the respective leases and any fixed-rate renewal periods . in the event that a tenant terminates its lease prior to the end of the lease term , the unamortized portion of each intangible , including market rate adjustments , in-place lease values and tenant relationship values , would be charged to expense . results of operations the following discussion is based on our consolidated financial statements for the years ended december 31 , 2012 , 2011 and 2010 . we believe that presentation of our consolidated financial information , without a breakdown by segment , will effectively present important information useful to our investors . 45 net operating income ( “ noi ” ) as presented in the comparative analysis below is defined as total revenue less property operating expenses , real estate taxes and third party management expenses . property operating expenses that are included in determining noi consist of costs that are necessary and allocable to our operating properties such as utilities , property-level salaries , repairs and maintenance , property insurance , management fees and bad debt expense . general and administrative expenses that are not reflected in noi primarily consist of corporate-level salaries , amortization of share awards and professional fees that are incurred as part of corporate office management . noi is a non-gaap financial measure that we use internally to evaluate the operating performance of our real estate assets by segment , as presented in note 18 to the consolidated financial statements , and of our business as a whole . we believe noi provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level . while noi is a relevant and widely used measure of operating performance of real estate investment trusts , it does not represent cash flow from operations or net income as defined by gaap and should not be considered as an alternative to those measures in evaluating our liquidity or operating performance . noi also does not reflect general and administrative expenses , interest expenses , real estate impairment losses , depreciation and amortization costs , capital expenditures and leasing costs . trends in development and construction

