Reportable Segments

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

REPORTABLE SEGMENTS

REPORTABLE SEGMENTS

The Company's segments are based on the Company's method of internal reporting which classifies operations by property type and geographical area. The segments by property type are: Office, Mixed-Use, and Other. The segments by geographical region are: Atlanta, Austin, Charlotte, Orlando, Phoenix, Tampa, and Other. These reportable segments represent an aggregation of operating segments reported to the Chief Operating Decision Maker based on similar economic characteristics that include the type of property and the geographical location. Each segment includes both consolidated operations and the Company's share of unconsolidated joint venture operations.

Company management evaluates the performance of its reportable segments in part based on net operating income (“NOI”). NOI represents rental property revenues less rental property operating expenses. NOI is not a measure of cash flows or operating results as measured by GAAP, 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. All companies may not calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental measure to net income as it helps both management and investors understand the core operations of the Company's operating assets. NOI excludes corporate general and administrative expenses, interest expense, depreciation and amortization, impairments, gains/loss on sales of real estate, and other non-operating items.

Segment net income, amount of capital expenditures, and total assets are not presented in the following tables because management does not utilize these measures when analyzing its segments or when making resource allocation decisions. Information on the Company's segments along with a reconciliation of NOI to net income available to common stockholders is as follows (in thousands):

Three Months Ended March 31, 2017	Office		Mixed-Use		Other		Total
Net Operating Income:
Atlanta	$	29,972	$	2,272	$	—	$	32,244
Charlotte	15,426		—		—		15,426
Austin	14,187		—		—		14,187
Phoenix	7,217		—		—		7,217
Tampa	6,837		—		—		6,837
Orlando	3,790		—		—		3,790
Other	466		—		—		466
Total Net Operating Income	$	77,895	$	2,272	$	—	$	80,167

Three Months Ended March 31, 2016	Office		Mixed-Use		Other		Total
Net Operating Income:
Houston	$	25,318	$	—	$	—	$	25,318
Atlanta	22,598		1,601		—		24,199
Austin	5,192		—		—		5,192
Charlotte	4,774		—		—		4,774
Other	30		—		—		30
Total Net Operating Income	$	57,912	$	1,601	$	—	$	59,513

The following reconciles Net Operating Income to Net Income for each of the periods presented (in thousands):

	Three Months Ended March 31,
	2017			2016
Net Operating Income	$	80,167		$	59,513
Net operating income from unconsolidated joint ventures	(9,176		)	(6,646		)
Net operating income from discontinued operations	—			(25,318		)
Fee income	1,936			2,199
Other income	5,426			390
Reimbursed expenses	(865		)	(870		)
General and administrative expenses	(6,182		)	(8,243		)
Interest expense	(9,741		)	(5,439		)
Depreciation and amortization	(54,884		)	(16,541		)
Acquisition and transaction costs	(1,930		)	(19		)
Other expenses	(404		)	(355		)
Income from unconsolidated joint ventures	581			1,834
Gain (loss) on sale of investment properties	(70		)	14,190
Income from discontinued operations	—			8,101
Net Income	$	4,858		$	22,796

Revenues by reportable segment, including a reconciliation to total rental property revenues on the condensed consolidated statements of operations for three months ended March 31, 2017 and 2016 are as follows (in thousands):

Three Months Ended March 31, 2017	Office			Mixed-Use			Other		Total
Revenues:
Atlanta	$	47,521		$	3,691		$	—	$	51,212
Austin	24,534			—			—		24,534
Charlotte	22,743			—			—		22,743
Orlando	6,641			—			—		6,641
Tampa	11,303			—			—		11,303
Phoenix	10,117			—			—		10,117
Other	817			—			—		817
Total segment revenues	123,676			3,691			—		127,367
Less Company's share of rental property revenues from unconsolidated joint ventures	(11,159		)	(3,691		)	—		(14,850		)
Total rental property revenues	$	112,517		$	—		$	—	$	112,517

Three Months Ended March 31, 2016	Office			Mixed-Use			Other		Total
Revenues:
Houston	$	43,123		$	—		$	—	$	43,123
Atlanta	37,217			2,977			—		40,194
Austin	8,938			—			—		8,938
Charlotte	6,345			—			—		6,345
Other	141			—			—		141
Total segment revenues	95,764			2,977			—		98,741
Less Discontinued Operations	(43,123		)	—			—		(43,123		)
Less Company's share of rental property revenues from unconsolidated joint ventures	(7,288		)	(2,977		)	—		(10,265		)
Total rental property revenues	$	45,353		$	—		$	—	$	45,353