Reportable Segments

3 Months Ended

Mar. 31, 2020

The Company's segments are based on its 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, Dallas, Phoenix, Tampa, and Other. Included in Other is a property in Cherry Hill, New Jersey that was sold in February 2020 and properties located in Chapel Hill, Fort Worth, and Houston. 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 termination fees, 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 months ended March 31, 2020 and 2019 are as follows (in thousands):



Three Months Ended March 31, 2020	Office		Mixed-Use			Total
Net Operating Income:
Atlanta	$	44,855	$	(60	)	$	44,795
Austin	29,294		—			29,294
Charlotte	22,113		—			22,113
Dallas	3,639		—			3,639
Phoenix	9,793		—			9,793
Tampa	8,144		—			8,144
Other	9,128		876			10,004
Total Net Operating Income	$	126,966	$	816		$	127,782



Three Months Ended March 31, 2019	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	37,399	$	—	$	37,399
Austin	15,948		—		15,948
Charlotte	15,808		—		15,808
Phoenix	9,491		—		9,491
Tampa	7,988		—		7,988
Other	230		867		1,097
Total Net Operating Income	$	86,864	$	867	$	87,731

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



	Three Months Ended March 31,
	2020			2019
Net Operating Income	$	127,782		$	87,731
Net operating income from unconsolidated joint ventures	(6,035		)	(7,873		)
Fee income	4,732			8,728
Termination fee income	2,844			520
Other income	37			140
Reimbursed expenses	(521		)	(932		)
General and administrative expenses	(5,652		)	(11,460		)
Interest expense	(15,904		)	(10,820		)
Depreciation and amortization	(71,614		)	(45,861		)
Transaction costs	(365		)	(3		)
Other expenses	(566		)	(180		)
Income from unconsolidated joint ventures	3,425			2,904
Gain on sales of investments in unconsolidated joint ventures	46,230			—
Gain on investment property transactions	90,916			13,111
Net Income	$	175,309		$	36,005

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, 2020 and 2019 are as follows (in thousands):



Three Months Ended March 31, 2020	Office			Mixed-Use			Total
Revenues:
Atlanta	$	65,877		$	35		$	65,912
Austin	48,747			—			48,747
Charlotte	34,537			—			34,537
Dallas	4,471			—			4,471
Phoenix	13,159			—			13,159
Tampa	14,112			—			14,112
Other	16,494			1,262			17,756
Total segment revenues	197,397			1,297			198,694
Less Company's share of rental property revenues from unconsolidated joint ventures	(8,268		)	(1,297		)	(9,565		)
Total rental property revenues	$	189,129		$	—		$	189,129



Three Months Ended March 31, 2019	Office			Mixed-Use			Total
Revenues:
Atlanta	$	57,468		$	—		$	57,468
Austin	28,092			—			28,092
Charlotte	23,386			—			23,386
Tampa	12,971			—			12,971
Phoenix	13,003			—			13,003
Other	546			1,181			1,727
Total segment revenues	135,466			1,181			136,647
Less Company's share of rental property revenues from unconsolidated joint ventures	(11,601		)	(1,181		)	(12,782		)
Total rental property revenues	$	123,865		$	—		$	123,865