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, Phoenix, Tampa, Orlando, and Other. In the fourth quarter of 2017, the Company sold its properties in the Orlando market as part of its ongoing investment strategy of exiting non-core markets and recycling investment capital to fund investment activity. 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 six months ended June 30, 2018 and 2017 are as follows (in thousands):



Three Months Ended June 30, 2018	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	32,178	$	—	$	32,178
Charlotte	15,431		—		15,431
Austin	15,088		—		15,088
Phoenix	8,880		—		8,880
Tampa	7,642		—		7,642
Other	433		543		976
Total Net Operating Income	$	79,652	$	543	$	80,195



Three Months Ended June 30, 2017	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	29,218	$	853	$	30,071
Charlotte	15,202		—		15,202
Austin	14,852		—		14,852
Phoenix	8,838		—		8,838
Tampa	7,451		—		7,451
Orlando	3,318		—		3,318
Other	383		—		383
Total Net Operating Income	$	79,262	$	853	$	80,115



Six Months Ended June 30, 2018	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	64,343	$	—	$	64,343
Charlotte	31,273		—		31,273
Austin	30,029		—		30,029
Phoenix	17,854		—		17,854
Tampa	15,370		—		15,370
Other	873		1,031		1,904
Total Net Operating Income	$	159,742	$	1,031	$	160,773



Six Months Ended June 30, 2017	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	59,190	$	3,126	$	62,316
Charlotte	30,627		—		30,627
Austin	29,039		—		29,039
Phoenix	16,056		—		16,056
Tampa	14,287		—		14,287
Orlando	7,108		—		7,108
Other	848		—		848
Total Net Operating Income	$	157,155	$	3,126	$	160,281

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Net Operating Income	$	80,195		$	80,115		$	160,773		$	160,281
Net operating income from unconsolidated joint ventures	(7,228		)	(7,609		)	(14,649		)	(16,783		)
Fee income	1,798			1,854			4,692			3,791
Other income	1,132			3,174			2,092			8,600
Reimbursed expenses	(860		)	(907		)	(1,802		)	(1,772		)
General and administrative expenses	(8,071		)	(8,618		)	(14,880		)	(14,828		)
Interest expense	(9,714		)	(8,523		)	(19,492		)	(18,264		)
Depreciation and amortization	(45,675		)	(50,040		)	(90,768		)	(104,924		)
Acquisition and transaction costs	(137		)	(246		)	(228		)	(2,177		)
Gain (loss) on extinguishment of debt	—			1,829			(85		)	1,829
Other expenses	(44		)	(236		)	(364		)	(612		)
Income from unconsolidated joint ventures	5,036			40,320			7,921			40,901
Gain on sale of investment properties	5,317			119,832			4,945			119,761
Net Income	$	21,749		$	170,945		$	38,155		$	175,803

Revenues by reportable segment, including a reconciliation to total rental property revenues on the condensed consolidated statements of operations, for three and six months ended June 30, 2018 and 2017 are as follows (in thousands):



Three Months Ended June 30, 2018	Office			Mixed-Use			Total
Revenues:
Atlanta	$	50,362		$	—		$	50,362
Austin	26,339			—			26,339
Charlotte	23,037			—			23,037
Tampa	12,251			—			12,251
Phoenix	12,247			—			12,247
Other	549			834			1,383
Total segment revenues	124,785			834			125,619
Less: Company's share of rental property revenues from unconsolidated joint ventures	(11,087		)	(834		)	(11,921		)
Total rental property revenues	$	113,698		$	—		$	113,698



Three Months Ended June 30, 2017	Office			Mixed-Use			Total
Revenues:
Atlanta	$	46,293		$	1,358		$	47,651
Austin	25,429			—			25,429
Charlotte	22,599			—			22,599
Phoenix	11,879			—			11,879
Tampa	11,795			—			11,795
Orlando	6,331			—			6,331
Other	758			—			758
Total segment revenues	125,084			1,358			126,442
Less: Company's share of rental property revenues from unconsolidated joint ventures	(11,077		)	(1,358		)	(12,435		)
Total rental property revenues	$	114,007		$	—		$	114,007



Six Months Ended June 30, 2018	Office			Mixed-Use			Total
Revenues:
Atlanta	$	99,828		$	—		$	99,828
Austin	52,915			—			52,915
Charlotte	46,078			—			46,078
Tampa	24,787			—			24,787
Phoenix	24,307			—			24,307
Other	1,078			1,624			2,702
Total segment revenues	248,993			1,624			250,617
Less: Company's share of rental property revenues from unconsolidated joint ventures	(21,947		)	(1,624		)	(23,571		)
Total rental property revenues	$	227,046		$	—		$	227,046



Six Months Ended June 30, 2017	Office			Mixed-Use			Total
Revenues:
Atlanta	$	93,814		$	5,049		$	98,863
Austin	49,963			—			49,963
Charlotte	45,342			—			45,342
Tampa	23,098			—			23,098
Phoenix	21,997			—			21,997
Orlando	12,972			—			12,972
Other	1,575			—			1,575
Total segment revenues	248,761			5,049			253,810
Less: Company's share of rental property revenues from unconsolidated joint ventures	(22,237		)	(5,049		)	(27,286		)
Total rental property revenues	$	226,524		$	—		$	226,524