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Segment Reporting
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
As of June 30, 2023, the Company concluded it operates in two reportable segments consistent with its current management internal financial reporting purposes: single-tenant properties and multi-tenant properties. The Company evaluates performance and make resource allocations based on its two business segments.
Net Operating Income
The Company evaluates the performance of the combined properties in each segment based on net operating income (“NOI”). NOI is defined as total revenues from tenants, less property operating and maintenance expense. NOI excludes all other items of expense and income included in the financial statements in calculating net (loss) income. The Company uses NOI to assess and compare property level performance and to make decisions concerning the operation of the properties. The Company believes that NOI is useful as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating expenses and acquisition activity on an unleveraged basis, providing perspective not immediately apparent from net (loss) income.
NOI excludes certain components from net (loss) income in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by the Company may not be comparable to NOI reported by other REITs that define NOI differently. The Company believes that in order to facilitate a clear understanding of the Company’s operating results, NOI should be compared with net (loss) income prepared in accordance with GAAP and as
presented in the Company’s consolidated financial statements. NOI should not be considered as an alternative to net (loss) income as an indication of the Company’s performance or to cash flows as a measure of the Company’s liquidity or ability to pay distributions.
The following tables reconcile the segment activity to consolidated net loss attributable to common stockholders for the three and six months ended June 30, 2023 and 2022:
Three Months Ended June 30, 2023Three Months Ended June 30, 2022
(In thousands)Single-Tenant PropertiesMulti-Tenant PropertiesConsolidatedSingle-Tenant PropertiesMulti-Tenant PropertiesConsolidated
Revenue from tenants$41,124 $65,576 $106,700 $55,886 $61,043 $116,929 
Property operating expense4,007 21,075 25,082 4,049 23,471 27,520 
NOI$37,117 $44,501 81,618 $51,837 $37,572 89,409 
Asset management fees to related parties(7,972)(8,296)
Impairments of real estate investments— (58,954)
Merger, transaction and other costs(4,931)(206)
Equity-based compensation(3,519)(3,523)
Settlement costs(8,800)— 
General and administrative(14,744)(8,390)
Depreciation and amortization(59,466)(46,573)
Gains on sales of real estate investments5,471 13,438 
Interest expense(35,945)(28,329)
Other income596 944 
Net loss attributable to non-controlling interests61 58 
Allocation for preferred stock(5,837)(5,837)
Net loss attributable to common stockholders$(53,468)$(56,259)

Six Months Ended June 30, 2023Six Months Ended June 30, 2022
(In thousands)Single-Tenant PropertiesMulti-Tenant PropertiesConsolidatedSingle-Tenant PropertiesMulti-Tenant PropertiesConsolidated
Revenue from tenants$87,289 $133,005 $220,294 $109,169 $102,703 $211,872 
Property operating expense8,457 43,538 51,995 7,974 38,685 46,659 
NOI$78,832 $89,467 168,299 $101,195 $64,018 165,213 
Asset management fees to related parties(15,928)(16,122)
Impairments of real estate investments— (64,896)
Merger, transaction and other costs(5,496)(485)
Settlement costs(8,800)— 
Equity-based compensation(7,086)(7,021)
General and administrative(25,236)(15,223)
Depreciation and amortization(113,648)(84,261)
Gains on sales of real estate investments17,263 67,007 
Interest expense(70,620)(52,069)
Other income623 962 
Gain on non-designated derivatives— 2,250 
Net loss (income) attributable to non-controlling interests78 (6)
Allocation for preferred stock(11,674)(11,674)
Net loss attributable to common stockholders$(72,225)$(16,325)
The following table reconciles real estate investments, net by segment to consolidated total assets as of the periods presented:

(In thousands)June 30, 2023December 31, 2022
ASSETS
Investments in real estate, net:
Single-tenant properties$1,682,118 $1,880,418 
Multi-tenant properties2,400,560 2,442,945 
Total investments in real estate, net4,082,678 4,323,363 
Cash and cash equivalents59,172 70,795 
Restricted cash23,373 17,956 
Deferred costs, net25,050 22,893 
Straight-line rent receivable59,890 66,657 
Operating lease right-of-use assets17,587 17,839 
Prepaid expenses and other assets67,510 66,551 
Total assets$4,335,260 $4,586,054 

The following table reconciles capital expenditures by reportable business segment, excluding corporate non-real estate expenditures, for the periods presented:
Three Months Ended June 30,Six Months Ended June 30,
(In thousands)
2023 (1)
2022
2023 (1)
2022
Single-tenant properties$628 $467 $668 $675 
Multi-tenant properties10,365 1,295 12,898 4,544 
Total capital expenditures$10,993 $1,762 $13,566 $5,219 
(1)Excludes $6.4 million of accrued capital expenditures as of December 31, 2022, which was paid in the six months ended June 30, 2023.