Reportable Segments

12 Months Ended

Dec. 31, 2020

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, Austin, Charlotte, Dallas, Phoenix, Tampa, and Other. Included in Other are properties located in Chapel Hill, Fort Worth, Houston, and a property in Cherry Hill, New Jersey, which was sold in February 2020. 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 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, reimbursed expenses, interest expense, depreciation and amortization, impairments, gains/loss on sales of real estate, gain/loss on extinguishment of debt, transaction costs 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 years ended December 31, 2020, 2019, and 2018 are as follows (in thousands):

Year Ended December 31, 2020	Office		Mixed-Use		Total
Revenues:
Atlanta	$	255,594	$	602	$	256,196
Austin	210,229		—		210,229
Charlotte	96,537		—		96,537
Dallas	18,143		—		18,143
Phoenix	50,671		—		50,671
Tampa	54,261		—		54,261
Other	59,285		4,895		64,180
Total segment revenues	744,720		5,497		750,217
Less: Company's share of rental property revenues from unconsolidated joint ventures	(22,837)		(5,497)		(28,334)
Total rental property revenues	$	721,883	$	—	$	721,883

Year Ended December 31, 2019	Office		Mixed-Use		Total
Revenues:
Atlanta	$	242,209	$	8	$	242,217
Austin	160,196		—		160,196
Charlotte	120,214		—		120,214
Dallas	9,421		—		9,421
Phoenix	51,586		—		51,586
Tampa	54,216		—		54,216
Other	38,732		4,630		43,362
Total segment revenues	676,574		4,638		681,212
Less: Company's share of rental property revenues from unconsolidated joint ventures	(47,823)		(4,638)		(52,461)
Total rental property revenues	$	628,751	$	—	$	628,751

Year Ended December 31, 2018	Office		Mixed-Use		Total
Revenues:
Atlanta	$	206,692	$	—	$	206,692
Austin	104,817		—		104,817
Charlotte	92,398		—		92,398
Phoenix	51,238		—		51,238
Tampa	49,822		—		49,822
Other	2,207		3,724		5,931
Total segment revenues	507,174		3,724		510,898
Less: Company's share of rental property revenues from unconsolidated joint ventures	(43,773)		(3,724)		(47,497)
Total rental property revenues	$	463,401	$	—	$	463,401

NOI by reportable segment for the years ended December 31, 2020, 2019, and 2018 are as follows (in thousands):

Year Ended December 31, 2020	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	172,588	$	(49)	$	172,539
Austin	125,215		—		125,215
Charlotte	65,203		—		65,203
Dallas	14,586		—		14,586
Phoenix	37,358		—		37,358
Tampa	33,440		—		33,440
Other	34,346		3,347		37,693
Total Net Operating Income	$	482,736	$	3,298	$	486,034

Year Ended December 31, 2019	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	158,093	$	(48)	$	158,045
Austin	93,311		—		93,311
Charlotte	77,082		—		77,082
Dallas	7,473		—		7,473
Phoenix	37,247		—		37,247
Tampa	33,586		—		33,586
Other	21,939		3,107		25,046
Total Net Operating Income	$	428,731	$	3,059	$	431,790

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

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

	Year Ended December 31,
	2020		2019		2018
Net income	$	238,114	$	152,683	$	80,765
Net operating income from unconsolidated joint ventures	18,836		32,413		28,888
Fee income	(18,226)		(28,518)		(10,089)
Termination fee income	(3,835)		(7,228)		(1,548)
Other income	(231)		(246)		(1,722)
Reimbursed expenses	1,580		4,004		3,782
General and administrative expenses	27,034		37,007		22,040
Interest expense	60,605		53,963		39,430
Impairment	14,829		—		—
Depreciation and amortization	288,648		257,149		181,382
Transaction costs	428		52,881		248
Other expenses	2,091		1,109		556
Gain on extinguishment of debt	—		—		(8)
Income from unconsolidated joint ventures	(7,947)		(12,666)		(12,224)
Gain on sale of investment in unconsolidated joint ventures, net	(45,767)		—		—
Gain on sale of investment properties	(90,125)		(110,761)		(5,437)
Net Operating Income	$	486,034	$	431,790	$	326,063