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 and Mixed-Use. The segments by geographical region are: Atlanta, Austin, Charlotte, Orlando, Phoenix, Tampa, and Other. In conjunction with the Merger and Spin-Off completed in the fourth quarter of 2016, the Company added the Orlando, Phoenix, and Tampa segments, and removed the Houston segment. 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 for the three and nine months ended September 30, 2017 and 2016 are as follows (in thousands):



Three Months Ended September 30, 2017	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	25,247	$	—	$	25,247
Austin	15,074		—		15,074
Charlotte	15,489		—		15,489
Orlando	3,356		—		3,356
Tampa	7,412		—		7,412
Phoenix	8,667		—		8,667
Other	525		45		570
Total Net Operating Income	$	75,770	$	45	$	75,815



Three Months Ended September 30, 2016	Office			Mixed-Use		Total
Net Operating Income:
Houston	$	26,408		$	—	$	26,408
Atlanta	22,593			1,753		24,346
Austin	6,023			—		6,023
Charlotte	4,905			—		4,905
Other	(61		)	—		(61		)
Total Net Operating Income	$	59,868		$	1,753	$	61,621



Nine Months Ended September 30, 2017	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	84,437	$	3,125	$	87,562
Austin	44,113		—		44,113
Charlotte	46,117		—		46,117
Orlando	10,464		—		10,464
Tampa	21,700		—		21,700
Phoenix	24,722		—		24,722
Other	1,374		45		1,419
Total Net Operating Income	$	232,927	$	3,170	$	236,097



Nine Months Ended September 30, 2016	Office			Mixed-Use		Total
Net Operating Income:
Houston	$	76,851		$	—	$	76,851
Atlanta	66,763			5,101		71,864
Austin	16,978			—		16,978
Charlotte	14,485			—		14,485
Other	(36		)	—		(36		)
Total Net Operating Income	$	175,041		$	5,101	$	180,142

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



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net Operating Income	$	75,815		$	61,621		$	236,097		$	180,142
Net operating income from unconsolidated joint ventures	(6,934		)	(6,760		)	(23,719		)	(20,359		)
Net operating income from discontinued operations	—			(26,408		)	—			(76,852		)
Fee income	2,597			1,945			6,387			5,968
Other income	993			153			9,593			570
Reimbursed expenses	(895		)	(795		)	(2,667		)	(2,463		)
General and administrative expenses	(7,193		)	(4,368		)	(21,993		)	(17,301		)
Interest expense	(7,587		)	(5,754		)	(25,851		)	(16,562		)
Depreciation and amortization	(47,622		)	(16,622		)	(152,546		)	(49,804		)
Acquisition and transaction costs	677			(1,446		)	(1,499		)	(3,889		)
Gain on extinguishment of debt	429			—			2,258			—
Other expenses	(423		)	(173		)	(1,063		)	(681		)
Income from unconsolidated joint ventures	2,461			1,527			43,362			5,144
Gain (loss) on sale of investment properties	(33		)	—			119,729			13,944
Income from discontinued operations	—			8,737			—			24,361
Net Income	$	12,285		$	11,657		$	188,088		$	42,218

Revenues by reportable segment, including a reconciliation to total rental property revenues on the condensed consolidated statements of operations, for three and nine months ended September 30, 2017 and 2016 are as follows (in thousands):



Three Months Ended September 30, 2017	Office			Mixed-Use			Total
Revenues:
Atlanta	$	41,507		$	—		$	41,507
Austin	25,385			—			25,385
Charlotte	23,153			143			23,296
Orlando	6,408			—			6,408
Tampa	11,815			—			11,815
Phoenix	11,692			—			11,692
Other	915			—			915
Total segment revenues	120,875			143			121,018
Less Company's share of rental property revenues from unconsolidated joint ventures	(11,306		)	(143		)	(11,449		)
Total rental property revenues	$	109,569		$	—		$	109,569



Three Months Ended September 30, 2016	Office			Mixed-Use			Total
Revenues:
Houston	$	46,046		$	—		$	46,046
Atlanta	36,693			3,197			39,890
Austin	10,469			—			10,469
Charlotte	6,799			—			6,799
Other	(57		)	—			(57		)
Total segment revenues	99,950			3,197			103,147
Less discontinued operations	(46,046		)	—			(46,046		)
Less Company's share of rental property revenues from unconsolidated joint ventures	(7,329		)	(3,197		)	(10,526		)
Total rental property revenues	$	46,575		$	—		$	46,575



Nine Months Ended September 30, 2017	Office			Mixed-Use			Total
Revenues
Atlanta	$	135,319		$	5,049		$	140,368
Austin	75,348			—			75,348
Charlotte	68,495			143			68,638
Orlando	19,380			—			19,380
Tampa	34,913			—			34,913
Phoenix	33,689			—			33,689
Other	2,492			—			2,492
Total segment revenues	$	369,636		$	5,192		$	374,828
Less Company's share of rental property revenues from unconsolidated joint ventures	(33,543		)	(5,192		)	(38,735		)
Total rental property revenues	$	336,093		$	—		$	336,093



Nine Months Ended September 30, 2016	Office			Mixed-Use			Total
Revenues:
Houston	$	133,450		$	—		$	133,450
Atlanta	110,915			9,200			120,115
Austin	29,825			—			29,825
Charlotte	19,533			—			19,533
Other	(54		)	—			(54		)
Total segment revenues	293,669			9,200			302,869
Less discontinued operations	(133,450		)	—			(133,450		)
Less Company's share of rental property revenues from unconsolidated joint ventures	(21,837		)	(9,200		)	(31,037		)
Total rental property revenues	$	138,382		$	—		$	138,382