Reportable Segments

3 Months Ended

Mar. 31, 2021

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 (our Chief Executive Officer) 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 fee income, other revenue, 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 three months ended March 31, 2021 and 2020 are as follows (in thousands):

Three Months Ended March 31, 2021	Office		Mixed-Use		Total
Revenues:
Atlanta	$	64,792	$	359	$	65,151
Austin	58,033		—		58,033
Charlotte	21,727		—		21,727
Dallas	4,484		—		4,484
Phoenix	12,738		—		12,738
Tampa	14,571		—		14,571
Other	14,095		1,245		15,340
Total segment revenues	190,440		1,604		192,044
Less: Company's share of rental property revenues from unconsolidated joint ventures	(5,633)		(1,604)		(7,237)
Total rental property revenues	$	184,807	$	—	$	184,807

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

NOI by reportable segment for the three months ended March 31, 2021 and 2020 are as follows (in thousands):

Three Months Ended March 31, 2021	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	43,045	$	151	$	43,196
Austin	34,278		—		34,278
Charlotte	15,257		—		15,257
Dallas	3,551		—		3,551
Phoenix	9,025		—		9,025
Tampa	9,402		—		9,402
Other	7,541		874		8,415
Total Net Operating Income	$	122,099	$	1,025	$	123,124

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

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

	Three Months Ended March 31,
	2021		2020
Net Operating Income	$	123,124	$	127,782
Net operating income from unconsolidated joint ventures	(4,754)		(6,035)
Fee income	4,529		4,732
Termination fee income	42		2,844
Other income	214		37
Reimbursed expenses	(368)		(521)
General and administrative expenses	(6,733)		(5,652)
Interest expense	(17,208)		(15,904)
Depreciation and amortization	(70,870)		(71,614)
Transaction costs	—		(365)
Other expenses	(590)		(566)
Income from unconsolidated joint ventures	1,903		3,425
Gain on sales of investments in unconsolidated joint ventures	39		46,230
Gain (loss) on investment property transactions	(17)		90,916
Net income	$	29,311	$	175,309