XML 30 R19.htm IDEA: XBRL DOCUMENT v3.23.3
Segment Information
 9 Months Ended
Sep. 30, 2023
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: Atlanta, Dallas, Orlando, Washington, D.C./Northern Virginia, Minneapolis, New York, and Boston. These operating segments are also Piedmont’s reportable segments. As of September 30, 2023, 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.

Accrual-based net operating income ("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 EndedNine Months Ended
September 30, 2023September 30, 2022September 30, 2023September 30, 2022
Atlanta$40,433 $34,026 $119,860 $92,558 
Dallas28,619 28,379 84,680 81,881 
Orlando15,234 15,131 46,112 43,513 
Washington, D.C./Northern Virginia15,251 15,608 45,029 46,980 
Minneapolis16,700 15,470 47,125 45,987 
New York13,940 14,525 40,674 42,461 
Boston10,875 14,735 31,642 44,797 
Total reportable segments141,052 137,874 415,122 398,177 
Other5,934 6,226 17,303 18,381 
Total Revenues$146,986 $144,100 $432,425 $416,558 
The following table presents NOI by geographic reportable segment (in thousands):

Three Months EndedNine Months Ended
September 30, 2023September 30, 2022September 30, 2023September 30, 2022
Atlanta$25,965 $21,627 $77,247 $58,354 
Dallas16,334 15,325 47,313 47,189 
Orlando8,895 8,865 27,446 26,206 
Washington, D.C./Northern Virginia9,183 9,712 27,156 29,851 
Minneapolis9,166 8,072 25,622 23,950 
New York7,565 7,959 22,286 23,901 
Boston6,422 9,646 19,213 29,922 
Total reportable segments83,530 81,206 246,283 239,373 
Other3,544 3,893 9,956 10,794 
Total NOI$87,074 $85,099 $256,239 $250,167 

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

Three Months EndedNine Months Ended
September 30, 2023September 30, 2022September 30, 2023September 30, 2022
Net income/(loss) applicable to Piedmont$(17,002)$3,331 $(20,357)$71,261 
Management fee revenue (1)
(210)(177)(756)(743)
Depreciation and amortization58,311 58,230 173,946 165,850 
Goodwill impairment charge10,957 — 10,957 — 
General and administrative expenses7,043 6,590 22,013 21,212 
Interest expense27,361 17,244 72,827 44,917 
Other income(207)(119)(3,218)(1,655)
Loss on early extinguishment of debt820 — 820 — 
Gain on sale of real estate assets— — — (50,674)
Net income/(loss) applicable to noncontrolling interest1 — 7 (1)
NOI$87,074 $85,099 $256,239 $250,167 

(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 operations.