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Segment Reporting
 9 Months Ended
Sep. 30, 2017
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Reportable Segments
During the nine months ended September 30, 2017, we substantially completed the Medical Office Portfolio Disposition, which resulted in all of our in-service medical office properties being classified within discontinued operations with the exception of a property that did not meet the criteria for classification as held for sale at September 30, 2017 (see Note 10). As a result of this transaction, our medical office properties are no longer presented as a separate reportable segment at September 30, 2017, with substantially all current and prior period operating results being classified within discontinued operations. The remaining medical office property included in continuing operations no longer meets the quantitative thresholds for separate presentation, and is classified as part of our non-reportable Rental Operations. Properties that are not included in our reportable segments, because they do not by themselves meet the quantitative thresholds for separate presentation as a reportable segment, are generally referred to as non-reportable Rental Operations. Our non-reportable Rental Operations primarily include our remaining office properties and medical office property at September 30, 2017.

As of September 30, 2017, after consideration of the Medical Office Portfolio Disposition, we had two reportable operating segments, the first consisting of the ownership and rental of industrial real estate investments. All of our industrial properties across the markets in which we operate are aggregated into one reportable segment as they have similar economic characteristics and we provide similar leasing arrangements and services to similar types of, and in many cases, the same tenants. The operations of our industrial properties, as well as our non-reportable Rental Operations, are collectively referred to as "Rental Operations." Our second reportable segment consists of various real estate services such as property management, asset management, maintenance, leasing, development, general contracting and construction management to third-party property owners and joint ventures, and is collectively referred to as "Service Operations." Our reportable segments are managed separately because each segment requires different operating strategies and management expertise.

Revenues by Reportable Segment

The following table shows the revenues for each of the reportable segments, as well as a reconciliation to consolidated revenues (in thousands): 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
Revenues
 
 
 
 
 
 
 
 
Rental Operations:
 
 
 
 
 
 
 
 
Industrial
 
$
166,344

 
$
149,746

 
$
485,785

 
$
432,945

Non-reportable Rental Operations
 
2,979

 
10,892

 
20,577

 
40,851

Service Operations
 
25,217

 
19,351

 
58,192

 
68,546

Total segment revenues
 
194,540

 
179,989

 
564,554

 
542,342

Other revenue
 
288

 
1,684

 
761

 
7,023

Consolidated revenue from continuing operations
 
194,828

 
181,673

 
565,315

 
549,365

Discontinued operations
 
4,622

 
44,906

 
86,026

 
129,087

Consolidated revenue
 
$
199,450

 
$
226,579

 
$
651,341

 
$
678,452



Supplemental Performance Measure

Property-level net operating income on a cash basis ("PNOI") is the non-GAAP supplemental performance measure that we use to evaluate the performance of, and to allocate resources among, the real estate investments in the reportable and operating segments that comprise our Rental Operations. PNOI for our Rental Operations segments is comprised of rental revenues from continuing operations less rental expenses and real estate taxes from continuing operations, along with certain other adjusting items (collectively referred to as "Rental Operations revenues and expenses excluded from PNOI," as shown in the following table). Additionally, we do not allocate interest expense, depreciation expense and certain other non-property specific revenues and expenses (collectively referred to as "Non-Segment Items," as shown in the following table) to our individual operating segments.

We evaluate the performance of our Service Operations reportable segment using net income or loss, as allocated to that segment ("Earnings from Service Operations").

The following table shows a reconciliation of our segment-level measures of profitability to consolidated income from continuing operations before income taxes (in thousands and excluding discontinued operations): 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
PNOI
 
 
 
 
 
 
 
 
Industrial
 
$
121,483

 
$
108,782

 
$
357,018

 
$
312,673

Non-reportable Rental Operations
 
1,292

 
845

 
3,567

 
4,933

PNOI, excluding all sold/held-for-sale properties
 
122,775

 
109,627

 
360,585

 
317,606

PNOI from sold/held-for-sale properties included in continuing operations
 
610

 
7,346

 
4,477

 
30,285

PNOI, continuing operations
 
$
123,385

 
$
116,973

 
$
365,062

 
$
347,891

 
 
 
 
 
 
 
 
 
Earnings from Service Operations
 
1,138

 
2,169

 
4,115

 
8,216

 
 

 

 

 

Rental Operations revenues and expenses excluded from PNOI:
 
 
 
 
 
 
 
 
Straight-line rental income and expense, net
 
4,341

 
3,451

 
9,547

 
6,371

Revenues related to lease buyouts
 
491

 
1,491

 
10,348

 
1,725

Amortization of lease concessions and above and below market rents
 
(1,274
)
 
(672
)
 
(2,718
)
 
(2,285
)
Intercompany rents and other adjusting items
 
(108
)
 
(463
)
 
(478
)
 
(1,540
)
Non-Segment Items:
 
 
 
 
 
 
 
 
Equity in earnings of unconsolidated companies
 
1,841

 
12,010

 
58,523

 
37,404

Gain on dissolution of unconsolidated company
 
—

 
—

 
—

 
30,697

Promote income
 
—

 
2,212

 
20,007

 
26,299

Interest expense
 
(20,835
)
 
(27,283
)
 
(65,401
)
 
(87,255
)
Depreciation and amortization expense
 
(67,992
)
 
(61,820
)
 
(197,028
)
 
(182,489
)
Gain on sale of properties
 
21,952

 
82,698

 
93,339

 
137,589

Impairment charges
 
(3,622
)
 
(3,042
)
 
(4,481
)
 
(15,098
)
Interest and other income, net
 
6,404

 
507

 
9,197

 
3,597

General and administrative expenses
 
(10,075
)
 
(12,534
)
 
(41,165
)
 
(42,216
)
Gain on land sales
 
5,665

 
1,601

 
8,449

 
2,438

Other operating expenses
 
(770
)
 
(1,424
)
 
(2,226
)
 
(3,496
)
Loss on extinguishment of debt
 
(16,568
)
 
(6,243
)
 
(26,104
)
 
(8,673
)
Acquisition-related activity
 
—

 
(7
)
 
—

 
(82
)
Other non-segment revenues and expenses, net
 
(1,605
)
 
(1,392
)
 
(3,174
)
 
(1,715
)
Income from continuing operations before income taxes
 
$
42,368

 
$
108,232

 
$
235,812

 
$
257,378

The most comparable GAAP measure to PNOI is income from continuing operations before income taxes. PNOI excludes expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for income from continuing operations before income taxes or any other measures derived in accordance with GAAP. Furthermore, PNOI may not be comparable to other similarly titled measures of other companies.
 
Assets by Reportable Segment

The assets for each of the reportable segments were as follows (in thousands):
 
September 30,
2017
 
December 31,
2016
Assets
 
 
 
Rental Operations:
 
 
 
Industrial
$
5,803,370

 
$
4,828,984

Non-reportable Rental Operations
186,433

 
1,501,737

Service Operations
132,671

 
127,154

Total segment assets
6,122,474

 
6,457,875

Non-segment assets
1,174,997

 
314,127

Consolidated assets
$
7,297,471

 
$
6,772,002