Reportable Segments

6 Months Ended

Jun. 30, 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 Other. Included in the Other property type are apartments, apartment retail, and the College Street Garage. The segments by geographical region are Atlanta, Austin, Charlotte, Dallas, Phoenix, Tampa, and Other. Included in the Other geographical region are properties located in Chapel Hill, Houston, Fort Worth (sold in April 2021), and Cherry Hill, New Jersey (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 three and six months ended June 30, 2021 and 2020 are as follows (in thousands):

Three Months Ended June 30, 2021	Office		Other		Total
Revenues:
Atlanta	$	65,626	$	396	$	66,022
Austin	59,677		—		59,677
Charlotte	21,884		591		22,475
Dallas	4,531		—		4,531
Phoenix	12,482		—		12,482
Tampa	14,165		—		14,165
Other	9,026		1,530		10,556
Total segment revenues	187,391		2,517		189,908
Less: Company's share of rental property revenues from unconsolidated joint ventures	(6,216)		(1,926)		(8,142)
Total rental property revenues	$	181,175	$	591	$	181,766

Three Months Ended June 30, 2020	Office		Other		Total
Revenues:
Atlanta	$	62,497	$	89	$	62,586
Austin	52,455		—		52,455
Charlotte	19,954		551		20,505
Dallas	4,487		—		4,487
Phoenix	12,084		—		12,084
Tampa	12,912		—		12,912
Other	15,043		1,176		16,219
Total segment revenues	179,432		1,816		181,248
Less: Company's share of rental property revenues from unconsolidated joint ventures	(4,884)		(1,265)		(6,149)
Total rental property revenues	$	174,548	$	551	$	175,099

Six Months Ended June 30, 2021	Office		Other		Total
Revenues
Atlanta	$	130,502	$	670	$	131,172
Austin	117,710		—		117,710
Charlotte	43,051		1,152		44,203
Dallas	9,014		—		9,014
Phoenix	25,220		—		25,220
Tampa	28,736		—		28,736
Other	23,123		2,775		25,898
Total segment revenues	377,356		4,597		381,953
Less: Company's share of rental property revenues from unconsolidated joint ventures	(11,935)		(3,445)		(15,380)
Total rental property revenues	$	365,421	$	1,152	$	366,573

Six Months Ended June 30, 2020	Office		Other		Total
Revenues
Atlanta	$	128,375	$	124	$	128,499
Austin	101,202		—		101,202
Charlotte	54,490		551		55,041
Dallas	8,958		—		8,958
Phoenix	25,243		—		25,243
Tampa	27,024		—		27,024
Other	31,538		2,438		33,976
Total segment revenues	376,830		3,113		379,943
Less: Company's share of rental property revenues from unconsolidated joint ventures	(13,153)		(2,562)		(15,715)
Total rental property revenues	$	363,677	$	551	$	364,228

NOI by reportable segment for the three and six months ended June 30, 2021 and 2020 are as follows (in thousands):

Three Months Ended June 30, 2021	Office		Other		Total
Net Operating Income:
Atlanta	$	43,115	$	159	$	43,274
Austin	35,955		—		35,955
Charlotte	15,688		175		15,863
Dallas	3,571		—		3,571
Phoenix	8,928		—		8,928
Tampa	8,919		—		8,919
Other	5,254		941		6,195
Total Net Operating Income	$	121,430	$	1,275	$	122,705

Three Months Ended June 30, 2020	Office		Other		Total
Net Operating Income:
Atlanta	$	41,738	$	(42)	$	41,696
Austin	31,229		—		31,229
Charlotte	14,103		377		14,480
Dallas	3,580		—		3,580
Phoenix	8,922		—		8,922
Tampa	7,998		—		7,998
Other	8,397		830		9,227
Total Net Operating Income	$	115,967	$	1,165	$	117,132

Six Months Ended June 30, 2021	Office		Other		Total
Net Operating Income:
Atlanta	$	86,218	$	253	$	86,471
Austin	70,232		—		70,232
Charlotte	30,685		435		31,120
Dallas	7,122		—		7,122
Phoenix	17,953		—		17,953
Tampa	18,321		—		18,321
Other	12,795		1,815		14,610
Total Net Operating Income	$	243,326	$	2,503	$	245,829

Six Months Ended June 30, 2020	Office		Other		Total
Net Operating Income:
Atlanta	$	86,593	$	(102)	$	86,491
Austin	60,523		—		60,523
Charlotte	36,216		377		36,593
Dallas	7,219		—		7,219
Phoenix	18,715		—		18,715
Tampa	16,142		—		16,142
Other	17,525		1,706		19,231
Total Net Operating Income	$	242,933	$	1,981	$	244,914

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net Operating Income	$	122,705	$	117,132	$	245,829	$	244,914
Net operating income from unconsolidated joint ventures	(5,437)		(4,193)		(10,191)		(10,228)
Fee income	4,803		4,690		9,332		9,422
Termination fee income	782		539		824		3,383
Other income	68		126		282		163
Reimbursed expenses	(398)		(322)		(766)		(843)
General and administrative expenses	(7,313)		(8,543)		(14,046)		(14,195)
Interest expense	(16,656)		(13,993)		(33,864)		(29,897)
Depreciation and amortization	(71,456)		(72,868)		(142,326)		(144,482)
Transaction costs	—		(63)		—		(428)
Other expenses	(824)		(552)		(1,414)		(1,118)
Income from unconsolidated joint ventures	1,795		1,715		3,698		5,140
Gain (loss) on sales of investments in unconsolidated joint ventures	—		(231)		39		45,999
Gain (loss) on investment property transactions	(9)		(201)		(26)		90,715
Net income	$	28,060	$	23,236	$	57,371	$	198,545