Segment Reporting |
Segment ReportingThe Company’s reporting segments are based on the Company’s method of internal reporting, which classifies its operations into two reportable segments: (i) office properties and related operations and (ii) studio properties and related operations. The Company evaluates performance based upon net operating income of the segment operations. General and administrative expenses and interest expense are not included in segment profit as the Company’s internal reporting addresses these items on a corporate level. Asset information by segment is not reported because the Company does not use this measure to assess performance or make decisions to allocate resources; therefore, depreciation and amortization expense is not allocated among segments.
The table below presents the operating activity of the Company’s reportable segments: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2023 | | 2022 | | 2023 | | 2022 | Office segment | | | | | | | | Office revenues | $ | 203,587 | | | $ | 213,491 | | | $ | 617,511 | | | $ | 641,135 | | Office expenses | (80,521) | | | (78,340) | | | (231,342) | | | (230,529) | | Office segment profit | 123,066 | | | 135,151 | | | 386,169 | | | 410,606 | | Studio segment | | | | | | | | Studio revenues | 27,856 | | | 46,863 | | | 111,363 | | | 115,162 | | Studio expenses | (31,655) | | | (26,688) | | | (103,578) | | | (66,357) | | Studio segment (loss) profit | (3,799) | | | 20,175 | | | 7,785 | | | 48,805 | | TOTAL SEGMENT PROFIT | $ | 119,267 | | | $ | 155,326 | | | $ | 393,954 | | | $ | 459,411 | | | | | | | | | | Segment revenues | $ | 231,443 | | | $ | 260,354 | | | $ | 728,874 | | | $ | 756,297 | | Segment expenses | (112,176) | | | (105,028) | | | (334,920) | | | (296,886) | | TOTAL SEGMENT PROFIT | $ | 119,267 | | | $ | 155,326 | | | $ | 393,954 | | | $ | 459,411 | |
The table below is a reconciliation of the total profit from all segments to net (loss) income: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2023 | | 2022 | | 2023 | | 2022 | NET LOSS | $ | (35,752) | | | $ | (6,792) | | | $ | (82,046) | | | $ | (10,861) | | General and administrative | 17,512 | | | 19,795 | | | 55,177 | | | 62,178 | | Depreciation and amortization | 98,580 | | | 93,070 | | | 294,654 | | | 276,701 | | Loss (income) from unconsolidated real estate entities | 759 | | | 352 | | | 2,219 | | | (1,731) | | Fee income | (340) | | | (911) | | | (5,026) | | | (3,122) | | Interest expense | 53,581 | | | 37,261 | | | 162,036 | | | 101,816 | | Interest income | (800) | | | (196) | | | (1,407) | | | (2,026) | | Management services reimbursement income—unconsolidated real estate entities | (1,015) | | | (983) | | | (3,138) | | | (3,159) | | Management services expense—unconsolidated real estate entities | 1,015 | | | 983 | | | 3,138 | | | 3,159 | | Transaction-related expenses | — | | | 9,331 | | | (1,344) | | | 10,713 | | Unrealized loss on non-real estate investments | 2,265 | | | 894 | | | 2,269 | | | 1,062 | | | | | | | | | | (Gain) loss on sale of real estate | (16,108) | | | 180 | | | (23,154) | | | 180 | | Impairment loss | — | | | 4,795 | | | — | | | 28,548 | | Gain on extinguishment of debt | — | | | — | | | (10,000) | | | — | | Other income | (5) | | | (1,147) | | | (139) | | | (1,138) | | Income tax (benefit) provision | (425) | | | (1,306) | | | 715 | | | (2,909) | | TOTAL PROFIT FROM ALL SEGMENTS | $ | 119,267 | | | $ | 155,326 | | | $ | 393,954 | | | $ | 459,411 | |
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