Factors that could cause actual results to differ materially include, without limitation, the ability to renew or re-lease space under favorable terms, regulatory changes, changes in the economy, the successful and timely completion of dispositions, acquisitions and development projects, changes in interest rates, and other risks associated with the commercial real estate business, as detailed in our filings with the SEC.
I would now like to turn the call over to Roger for his formal remarks.
Thank you Michelle and good morning. 2012 is starting off well as evidenced by our better than expected quarterly results. Our FFO per share as adjusted for comparability for the first quarter was $0.53, which is $0.02 above our guidance range and $0.04 above the $0.49 we achieved in 2011. The quarter's modest outperformance was primarily driven by lower than budget property operating expenses associated with the mild winter in the Mid Atlantic state and higher than excepted development fee income.We are reaffirming our 2012 annual FFO guidance of $2.02 to $2.18 per share. The fact that existing and potential strategic tenant in the government and defense IT industries have been operating this fiscal year with a budget rather than other under a continuing resolution as modestly increased leasing activity.We are tracking over 300,000 square feet of potential development leasing activity at the National Business Park area, Patriot Ridge and Red Stone Gateway that we expect to result in further leasing during 2012. This is in addition to 86,000 square feet of development space leased in the first quarter and 60,000 square feet already started in this quarter that Steve Budorick will provide additional color.That said, we believe the potential federal budget cut in fiscal year 2013 generated by the possible application of (inaudible) cuts to the defense budget under the Budget Control Act is causing agencies and some contractors to be more deliberate about making long term large scale space commitment.
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