Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

Piedmont's President and Chief Executive Officer has been identified as Piedmont's chief operating decision maker ("CODM"), as defined by GAAP. The CODM evaluates Piedmont's portfolio and assesses the ongoing operations and performance of its properties utilizing the following geographic segments: Dallas, Atlanta, Boston, Washington, D.C., Minneapolis, Orlando, and New York. These operating segments are also Piedmont’s reportable segments. As of March 31, 2022, Piedmont also owned two properties in Houston that do not meet the definition of an operating or reportable segment as the CODM does not regularly review these properties for purposes of allocating resources or assessing performance. Further, Piedmont does not maintain a significant presence or anticipate further investment in this market. These two properties are the primary contributors to accrual-based net operating income ("NOI") included in "Other" below. During the periods presented, there have been no material inter segment transactions. The accounting policies of the reportable segments are the same as Piedmont's accounting policies.

NOI by geographic segment is the primary performance measure reviewed by Piedmont's CODM to assess operating performance and consists only of revenues and expenses directly related to real estate rental operations. NOI is calculated by deducting property operating costs from lease revenues and other property related income. NOI reflects property acquisitions and dispositions, occupancy levels, rental rate increases or decreases, and the recoverability of operating expenses. Piedmont's calculation of NOI may not be directly comparable to similarly titled measures calculated by other REITs.

Asset value information and capital expenditures by segment are not reported because the CODM does not use these measures to assess performance.

The following table presents accrual-based lease revenue and other property related income included in NOI by geographic reportable segment (in thousands):

	Three Months Ended
	March 31, 2022		March 31, 2021
Dallas	$	27,085	$	27,494
Atlanta	29,268		22,705
Boston	15,365		15,509
Washington, D.C.	15,606		14,313
Minneapolis	15,109		15,265
Orlando	13,906		15,477
New York	13,875		13,188
Total reportable segments	130,214		123,951
Other	5,935		5,306
Total Revenues	$	136,149	$	129,257

The following table presents NOI by geographic reportable segment (in thousands):

	Three Months Ended
	March 31, 2022		March 31, 2021
Dallas	$	16,099	$	16,877
Atlanta	18,555		14,996
Boston	10,473		10,824
Washington, D.C.	10,047		8,573
Minneapolis	7,914		8,155
Orlando	8,499		10,350
New York	7,757		7,296
Total reportable segments	79,344		77,071
Other	3,037		587
Total NOI	$	82,381	$	77,658

A reconciliation of Net income applicable to Piedmont to NOI is presented below (in thousands):

	Three Months Ended
	March 31, 2022		March 31, 2021
Net income applicable to Piedmont	$	59,964	$	9,344
Management fee revenue (1)	(362)		(390)
Depreciation and amortization	53,767		51,015
General and administrative expenses	7,595		7,251
Interest expense	13,898		12,580
Other income	(1,808)		(2,141)
Gain on sale of real estate assets	(50,673)		—
Net loss applicable to noncontrolling interests	—		(1)
NOI	$	82,381	$	77,658

(1)Presented net of related operating expenses incurred to earn such management fee revenue. Such operating expenses are a component of property operating costs in the accompanying consolidated statements of income.