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Segment Reporting
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
Reportable Segments
During the year ended December 31, 2017, we completed the disposition of our medical office portfolio (the "Medical Office Portfolio Disposition"), which resulted in all of our in-service medical office properties being classified within discontinued operations, with the exception of a property that did not meet the criteria for classification as held-for-sale at June 30, 2018. As a result of this transaction, beginning the second quarter of 2017, our medical office properties were no longer presented as a separate reportable segment, with substantially all such operating results being classified within discontinued operations. The remaining medical office property included in continuing operations no longer meets the quantitative thresholds for separate presentation, and is classified as part of our non-reportable Rental Operations. Properties that are not included in our reportable segments, because they do not by themselves meet the quantitative thresholds for separate presentation as a reportable segment, are generally referred to as non-reportable Rental Operations. Our non-reportable Rental Operations primarily include our remaining office properties and medical office property at June 30, 2018.

As of June 30, 2018, we had two reportable operating segments, the first consisting of the ownership and rental of industrial real estate investments. Our ongoing investments in new real estate investments are determined largely upon anticipated geographic trends in supply and demand for industrial buildings, as well as the real estate needs of our major tenants that operate on a national level. Our strategic initiatives and our allocation of resources have been historically based upon allocation among product types, which was consistent with our designation of reportable segments, and after having sold nearly all of our office and medical office properties we intend to increase our investment in industrial properties and treat them as a single operating and reportable segment. The operations of our industrial properties, as well as our non-reportable Rental Operations, are collectively referred to as "Rental Operations."

Our second reportable segment consists of various real estate services such as property management, asset management, maintenance, leasing, development, general contracting and construction management to third-party property owners and joint ventures, and is collectively referred to as "Service Operations." The Service Operations segment is identified as one single operating segment because the lowest level of financial results reviewed by our chief operating decision maker are the results for the Service Operations segment in total. Further, our reportable segments are managed separately because each segment requires different operating strategies and management expertise.

Revenues by Reportable Segment

The following table shows the revenues for each of the reportable segments, as well as a reconciliation to consolidated revenues (in thousands): 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2018
 
2017
 
2018
 
2017
Revenues
 
 
 
 
 
 
 
 
Rental Operations:
 
 
 
 
 
 
 
 
Industrial
 
$
190,629

 
$
162,559

 
$
379,944

 
$
319,441

Non-reportable Rental Operations
 
1,366

 
3,182

 
4,819

 
17,598

Service Operations
 
18,465

 
23,576

 
59,566

 
32,975

Total segment revenues
 
210,460

 
189,317

 
444,329

 
370,014

Other revenue
 
98

 
95

 
786

 
473

Consolidated revenue from continuing operations
 
210,558

 
189,412

 
445,115

 
370,487

Discontinued operations
 
27

 
35,165

 
32

 
81,404

Consolidated revenue
 
$
210,585

 
$
224,577

 
$
445,147

 
$
451,891



Supplemental Performance Measure

Property-level net operating income on a cash basis ("PNOI") is the non-GAAP supplemental performance measure that we use to evaluate the performance of, and to allocate resources among, the real estate investments in the reportable and operating segments that comprise our Rental Operations. PNOI for our Rental Operations segments is comprised of rental revenues from continuing operations less rental expenses and real estate taxes from continuing operations, along with certain other adjusting items (collectively referred to as "Rental Operations revenues and expenses excluded from PNOI," as shown in the following table). Additionally, we do not allocate interest expense, depreciation expense and certain other non-property specific revenues and expenses (collectively referred to as "Non-Segment Items," as shown in the following table) to our individual operating segments.

We evaluate the performance of our Service Operations reportable segment using net income or loss, as allocated to that segment ("Earnings from Service Operations").

The following table shows a reconciliation of our segment-level measures of profitability to consolidated income from continuing operations before income taxes (in thousands and excluding discontinued operations): 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2018
 
2017
 
2018
 
2017
PNOI
 
 
 
 
 
 
 
 
Industrial
 
$
137,394

 
$
116,466

 
$
266,627

 
$
226,937

Non-reportable Rental Operations
 
844

 
685

 
1,765

 
2,493

PNOI, excluding all sold properties
 
138,238

 
117,151

 
268,392

 
229,430

PNOI from sold properties included in continuing operations
 
2,164

 
5,439

 
7,925

 
12,629

PNOI, continuing operations
 
$
140,402

 
$
122,590

 
$
276,317

 
$
242,059

 
 
 
 
 
 
 
 
 
Earnings from Service Operations
 
3,212

 
1,202

 
3,904

 
2,977

 
 

 

 

 

Rental Operations revenues and expenses excluded from PNOI:
 
 
 
 
 
 
 
 
Straight-line rental income and expense, net
 
4,642

 
3,628

 
10,931

 
5,205

Revenues related to lease buyouts
 
—

 
72

 
23

 
9,857

Amortization of lease concessions and above and below market rents
 
461

 
(566
)
 
1,006

 
(1,450
)
Intercompany rents and other adjusting items
 
(20
)
 
(310
)
 
(6
)
 
(745
)
Non-Segment Items:
 
 
 
 
 
 
 
 
Equity in earnings of unconsolidated joint ventures
 
1,682

 
51,933

 
9,969

 
56,682

Promote income
 
—

 
20,007

 
—

 
20,007

Interest expense
 
(20,675
)
 
(21,680
)
 
(40,675
)
 
(44,566
)
Depreciation and amortization expense
 
(75,832
)
 
(67,013
)
 
(153,361
)
 
(129,036
)
Gain on sale of properties
 
149,962

 
34,341

 
194,848

 
71,387

Impairment charges
 
—

 
—

 
—

 
(859
)
Interest and other income, net
 
4,727

 
2,260

 
9,190

 
2,792

General and administrative expenses
 
(13,459
)
 
(11,858
)
 
(34,482
)
 
(31,090
)
Gain on land sales
 
357

 
1,279

 
3,306

 
2,784

Other operating expenses
 
(1,137
)
 
(718
)
 
(1,923
)
 
(1,457
)
Loss on extinguishment of debt
 
(151
)
 
(9,561
)
 
(151
)
 
(9,536
)
Other non-segment revenues and expenses, net
 
(1,357
)
 
(986
)
 
(2,229
)
 
(1,569
)
Income from continuing operations before income taxes
 
$
192,814

 
$
124,620

 
$
276,667

 
$
193,442

The most comparable GAAP measure to PNOI is income from continuing operations before income taxes. PNOI excludes expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for income from continuing operations before income taxes or any other measures derived in accordance with GAAP. Furthermore, PNOI may not be comparable to other similarly titled measures of other companies.