XML 34 R21.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Segment Reporting
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company reports its results in three reportable segments: Industrial, Office, and Other. The Industrial segment consists of high-quality, well-located industrial properties with modern specifications. The Office segment includes newer, high-quality office properties. The Other segment consists of vacant and non-core properties, together with other properties in the same cross-collateralized loan pools.
The Company evaluates performance of each segment based on segment net operating income (“NOI”), which is defined as property revenue less property expenses. The Company excludes the following from Segment NOI because they are addressed on a corporate level: (i) the Office Joint Venture, (ii) interest expense, and (iii) general and administrative expenses. Segment NOI is not a measure of operating income or cash flows from operating activities, is not indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate segment profit measures in the same manner. The Company considers segment NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of our properties.
The following table presents segment NOI for the three and six months ended June 30, 2024 and June 30, 2023 is as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Industrial NOI
Total Industrial revenues$14,554 $13,981 $29,387 $28,575 
Industrial operating expenses(1,700)(1,661)(4,018)(3,625)
Industrial NOI12,854 12,320 25,369 24,950 
Office NOI
Total Office revenues32,991 34,999 65,990 74,188 
Office operating expenses(5,663)(6,076)(11,147)(12,414)
Office NOI27,328 28,923 54,843 61,774 
Other NOI
Total Other revenues8,407 13,560 19,802 26,750 
Other operating expenses(3,167)(5,157)(6,964)(10,309)
Other NOI5,240 8,403 12,838 16,441 
Total NOI$45,422 $49,646 $93,050 $103,165 
A reconciliation of net loss to NOI for the three and six months ended June 30, 2024 and June 30, 2023 is as follows:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Reconciliation of Net Income (Loss) to Total NOI
Net (loss) income$(4,101)$(452,403)$1,369 $(443,384)
General and administrative expenses9,116 12,030 18,796 21,758 
Corporate operating expenses to related parties169 341 336 718 
Real estate impairment provision6,505 397,373 7,881 397,373 
Depreciation and amortization22,998 30,472 46,413 61,827 
Interest expense15,845 16,068 31,994 33,082 
Other income, net(5,167)(2,747)(9,213)(3,959)
Net loss from investment in unconsolidated entity— 17,508 — 32,169 
Loss (gain) from disposition of assets57 9,701 (9,120)(20,909)
Goodwill impairment provision— — 4,594 — 
Transaction expenses— 21,303 — 24,490 
Total NOI$45,422 $49,646 $93,050 $103,165 
The following table presents the Company’s goodwill for each of the segments as of June 30, 2024 and December 31, 2023:
June 30,December 31,
20242023
Goodwill
Industrial$68,372 $68,373 
Office— — 
Other5,680 10,274 
Total Goodwill$74,052 $78,647 
The following table presents the Company’s total real estate assets, net, which includes deductions for accumulated depreciation and amortization and excludes intangibles, for each segment as of the June 30, 2024 and December 31, 2023:
June 30,December 31,
20242023
Industrial Real Estate, net
Total real estate$741,717 $741,737 
Accumulated depreciation and amortization(164,859)(152,353)
Industrial real estate, net576,858 589,384 
Office Real Estate, net
Total real estate1,505,580 1,505,959 
Accumulated depreciation and amortization(312,491)(286,136)
Office real estate, net1,193,089 1,219,823 
Other Real Estate, net
Total real estate316,421 362,415 
Accumulated depreciation and amortization(104,071)(112,063)
Other real estate, net212,350 250,352 
Total Real Estate, net$1,982,297 $2,059,559 
Total Real Estate Held for Sale, net
Total real estate$3,283 $64,289 
Accumulated depreciation and amortization(574)(14,636)
Real estate held for sale, net$2,709 $49,653 
Total asset information by segment is not reported because the Company does not use this measure to assess performance or to make resource allocation decisions.