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Reportable Segments
 3 Months Ended
Mar. 31, 2024
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 region. The segments by property type are Office and Non-Office. The segments by geographical region are Atlanta, Austin, Charlotte, Dallas, Phoenix, Tampa, and other markets. Included in other markets are properties located in Houston and Nashville. Included in Non-Office are retail and apartments Atlanta, as well as the College Street Garage in Charlotte. 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.
On November 27, 2023 the Financial Accounting Standards Board issued Accounting Standards Update 2023-07 "ASU 2023-07", "Segment Reporting" which amends the existing standard's disclosure requirements. Among other things, ASU 2023-07 will require companies to disclose significant segment expenses by reportable segment if they are regularly provided to the Chief Operating Decision Maker ("CODM") and disclosures of the CODM's title and position as well as details of how the CODM uses the reported measures. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023 and for interim periods beginning after December 15, 2024. The adoption of ASU 2023-07 will not have any material impact on the Company's financial statements.
Company management evaluates the performance of its reportable segments based in part 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, termination fee income, other income, corporate general and administrative expenses, interest expense, depreciation and amortization, reimbursed expenses, other expenses, impairments, gains/losses on sales of real estate, gains/losses 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 the three months ended March 31, 2024 and 2023 are as follows ($ in thousands):
Three Months Ended March 31, 2024OfficeNon-OfficeTotal
Revenues:
Atlanta$76,856 $477 $77,333 
Austin71,005 — 71,005 
Charlotte14,383 1,645 16,028 
Dallas4,440 — 4,440 
Phoenix14,602 — 14,602 
Tampa19,385 — 19,385 
Other markets8,292 — 8,292 
Total segment revenues208,963 2,122 211,085 
Less: Company's share of rental property revenues from unconsolidated joint ventures(1,790)(477)(2,267)
Total rental property revenues$207,173 $1,645 $208,818 

Three Months Ended March 31, 2023OfficeNon-OfficeTotal
Revenues:
Atlanta$72,132 $457 $72,589 
Austin67,883 — 67,883 
Charlotte14,818 1,761 16,579 
Dallas4,187 — 4,187 
Phoenix15,583 — 15,583 
Tampa18,748 — 18,748 
Other markets6,623 — 6,623 
Total segment revenues199,974 2,218 202,192 
Less: Company's share of rental property revenues from unconsolidated joint ventures(1,659)(457)(2,116)
Total rental property revenues$198,315 $1,761 $200,076 


NOI by reportable segment for the three months ended March 31, 2024 and 2023 are as follows ($ in thousands):
Three Months Ended March 31, 2024OfficeNon-OfficeTotal
Net Operating Income:
Atlanta$49,158 $253 $49,411 
Austin45,770 — 45,770 
Charlotte10,366 1,068 11,434 
Dallas3,459 — 3,459 
Phoenix11,111 — 11,111 
Tampa11,945 — 11,945 
Other markets5,495 — 5,495 
Total Net Operating Income$137,304 $1,321 $138,625 
Three Months Ended March 31, 2023OfficeNon-OfficeTotal
Net Operating Income:
Atlanta$47,389 $270 $47,659 
Austin40,273 — 40,273 
Charlotte10,762 1,162 11,924 
Dallas3,225 — 3,225 
Phoenix11,773 — 11,773 
Tampa11,711 — 11,711 
Other markets3,571 — 3,571 
Total Net Operating Income$128,704 $1,432 $130,136 



The following reconciles Net Operating Income from net income for each of the periods presented ($ in thousands):
Three Months Ended March 31,
 20242023
Net Income$13,451 $22,356 
Fee income(379)(374)
Termination fee income(470)(136)
Other income(44)(2,278)
General and administrative expenses9,214 8,438 
Interest expense28,908 25,030 
Depreciation and amortization86,230 75,770 
Reimbursed expenses140 207 
Other expenses672 385 
Income from unconsolidated joint ventures(348)(673)
Net operating income from unconsolidated joint ventures1,352 1,409 
Loss on investment property transactions(101)2 
Net Operating Income$138,625 $130,136