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, 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, 2018 and 2017 are as follows (in thousands):



Three Months Ended September 30, 2018	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	32,296	$	—	$	32,296
Charlotte	15,924		—		15,924
Austin	15,180		—		15,180
Phoenix	9,265		—		9,265
Tampa	7,446		—		7,446
Other	310		437		747
Total Net Operating Income	$	80,421	$	437	$	80,858



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



Nine Months Ended September 30, 2018	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	96,639	$	—	$	96,639
Charlotte	47,197		—		47,197
Austin	45,209		—		45,209
Phoenix	27,119		—		27,119
Tampa	22,816		—		22,816
Other	1,183		1,468		2,651
Total Net Operating Income	$	240,163	$	1,468	$	241,631



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

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,
	2018			2017			2018			2017
Net Operating Income	$	80,858		$	75,815		$	241,631		$	236,097
Net operating income from unconsolidated joint ventures	(6,994		)	(6,934		)	(21,643		)	(23,719		)
Fee income	2,519			2,597			7,211			6,387
Other income	744			993			2,836			9,593
Reimbursed expenses	(955		)	(895		)	(2,757		)	(2,667		)
General and administrative expenses	(3,913		)	(7,193		)	(18,793		)	(21,993		)
Interest expense	(9,551		)	(7,587		)	(29,043		)	(25,851		)
Depreciation and amortization	(45,068		)	(47,622		)	(135,836		)	(152,546		)
Acquisition and transaction costs	—			677			(228		)	(1,499		)
Gain on extinguishment of debt	93			429			8			2,258
Other expenses	(93		)	(423		)	(457		)	(1,063		)
Income from unconsolidated joint ventures	2,252			2,461			10,173			43,362
Gain (loss) on sale of investment properties	(33		)	(33		)	4,912			119,729
Net Income	$	19,859		$	12,285		$	58,014		$	188,088

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, 2018 and 2017 are as follows (in thousands):



Three Months Ended September 30, 2018	Office			Mixed-Use			Total
Revenues:
Atlanta	$	51,088		$	—		$	51,088
Austin	26,415			—			26,415
Charlotte	23,263			—			23,263
Phoenix	12,830			—			12,830
Tampa	12,228			—			12,228
Other	1,104			429			1,533
Total segment revenues	126,928			429			127,357
Less: Company's share of rental property revenues from unconsolidated joint ventures	(11,485		)	(429		)	(11,914		)
Total rental property revenues	$	115,443		$	—		$	115,443



Three Months Ended September 30, 2017	Office			Mixed-Use			Total
Revenues:
Atlanta	$	41,507		$	—		$	41,507
Austin	25,385			—			25,385
Charlotte	23,153			—			23,153
Tampa	11,815			—			11,815
Phoenix	11,692			—			11,692
Orlando	6,408			—			6,408
Other	915			143			1,058
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



Nine Months Ended September 30, 2018	Office			Mixed-Use			Total
Revenues:
Atlanta	$	150,917		$	—		$	150,917
Austin	79,329			—			79,329
Charlotte	69,342			—			69,342
Tampa	37,014			—			37,014
Phoenix	37,137			—			37,137
Other	3,238			997			4,235
Total segment revenues	376,977			997			377,974
Less: Company's share of rental property revenues from unconsolidated joint ventures	(34,488		)	(997		)	(35,485		)
Total rental property revenues	$	342,489		$	—		$	342,489



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			—			68,495
Tampa	34,913			—			34,913
Phoenix	33,689			—			33,689
Orlando	19,380			—			19,380
Other	2,492			143			2,635
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