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Reportable Segments
12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS
REPORTABLE SEGMENTS
The Company's segments are based on the 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, Charlotte, Austin, Phoenix, Tampa, Orlando, Houston, and Other. In 2016, the Company disposed of its Houston properties as part of the Spin-Off. In 2017, the Company sold its Orlando Properties. 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 product and the geographical location. Each segment includes both consolidated operations and the Company's share of 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):
Year ended December 31, 2018
 
Office
 
Mixed-Use
 
Total
Net Operating Income:
 
 
 
 
 
 
Atlanta
 
$
131,564

 
$

 
$
131,564

Charlotte
 
62,812

 

 
62,812

Austin
 
60,474

 

 
60,474

Phoenix
 
36,875

 

 
36,875

Tampa
 
30,514

 

 
30,514

Other
 
1,581

 
2,243

 
3,824

Total Net Operating Income
 
$
323,820

 
$
2,243

 
$
326,063


Year ended December 31, 2017
 
Office
 
Mixed-Use
 
Total
Net Operating Income:
 
 
 
 
 
 
Atlanta
 
$
109,706

 
$
3,278

 
$
112,984

Charlotte
 
62,708

 

 
62,708

Austin
 
58,648

 

 
58,648

Phoenix
 
34,074

 

 
34,074

Tampa
 
29,426

 

 
29,426

Orlando
 
13,029

 

 
13,029

Other
 
1,632

 
705

 
2,337

Total Net Operating Income
 
$
309,223

 
$
3,983

 
$
313,206

Year ended December 31, 2016
 
Office
 
Mixed-Use
 
Total
Net Operating Income:
 
 
 
 
 
 
Atlanta
 
$
98,032

 
$
7,411

 
$
105,443

Houston
 
78,590

 

 
78,590

Austin
 
29,865

 

 
29,865

Charlotte
 
28,418

 

 
28,418

Tampa
 
7,130

 

 
7,130

Phoenix
 
6,067

 

 
6,067

Orlando
 
3,265

 

 
3,265

Other
 
1,504

 

 
1,504

Total Net Operating Income
 
$
252,871

 
$
7,411

 
$
260,282

The following reconciles Net Income to Net Operating Income for each of the periods presented (in thousands):
 
Year Ended December 31,
 
2018
 
2017
 
2016
Net income
$
80,765

 
$
219,959

 
$
80,104

Net operating income from unconsolidated joint ventures
28,888

 
31,053

 
28,785

Net operating income from discontinued operations

 

 
78,591

Fee income
(10,089
)
 
(8,632
)
 
(8,347
)
Other income
(3,270
)
 
(11,518
)
 
(1,050
)
Reimbursed expenses
3,782

 
3,527

 
3,259

General and administrative expenses
22,040

 
27,523

 
25,592

Interest expense
39,430

 
33,524

 
26,650

Depreciation and amortization
181,382

 
196,745

 
97,948

Acquisition and transaction costs
248

 
1,661

 
24,521

Other expenses
556

 
1,796

 
5,888

(Gain) loss on extinguishment of debt
(8
)
 
(2,258
)
 
5,180

Income from unconsolidated joint ventures
(12,224
)
 
(47,115
)
 
(10,562
)
Gain on sale of investment properties
(5,437
)
 
(133,059
)
 
(77,114
)
Income from discontinued operations

 

 
(19,163
)
Net Operating Income
$
326,063

 
$
313,206

 
$
260,282


Revenues by reportable segment, including a reconciliation to total revenues on the consolidated statements of operations for years ended December 31, 2018, 2017, and 2016 are as follows (in thousands):
Year ended December 31, 2018
 
Office
 
Mixed-Use
 
Total
Revenues:
 

 

 

Atlanta
 
$
206,129

 
$

 
$
206,129

Austin
 
104,329

 

 
104,329

Charlotte
 
92,454

 

 
92,454

Phoenix
 
50,696

 

 
50,696

Tampa
 
49,812

 

 
49,812

Other
 
2,206

 
3,724

 
5,930

Total segment revenues
 
505,626

 
3,724

 
509,350

Less: Company's share of rental property revenues from unconsolidated joint ventures
 
(43,773
)
 
(3,724
)
 
(47,497
)
Total rental property revenues
 
$
461,853

 
$

 
$
461,853

Year ended December 31, 2017
 
Office
 
Mixed-Use
 
Total
Revenues:
 
 
 
 
 
 
Atlanta
 
$
176,190

 
$
5,237

 
$
181,427

Austin
 
100,939

 

 
100,939

Charlotte
 
91,434

 

 
91,434

Tampa
 
47,402

 

 
47,402

Phoenix
 
46,186

 

 
46,186

Orlando
 
24,862

 

 
24,862

Other
 
3,021

 
999

 
4,020

Total segment revenues
 
490,034

 
6,236

 
496,270

Less: Company's share of rental property revenues from unconsolidated joint ventures
 
(43,999
)
 
(6,236
)
 
(50,235
)
Total rental property revenues
 
$
446,035

 
$

 
$
446,035

Year ended December 31, 2016
 
 Office
 
 Mixed-Use
 
 Total
Revenues:
 
 
 
 
 
 
Atlanta
 
$
160,540

 
$
13,043

 
$
173,583

Houston
 
136,926

 

 
136,926

Austin
 
52,769

 

 
52,769

Charlotte
 
39,448

 

 
39,448

Tampa
 
10,994

 

 
10,994

Phoenix
 
8,902

 

 
8,902

Orlando
 
5,896

 

 
5,896

Other
 
2,443

 

 
2,443

Total segment revenues
 
417,918

 
13,043

 
430,961

Less: Company's share of rental property revenues from unconsolidated joint ventures
 
(31,177
)
 
(13,043
)
 
(44,220
)
Less: Revenues included in discontinued operations
 
(136,927
)
 

 
(136,927
)
Total rental property revenues
 
$
249,814

 
$

 
$
249,814