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Segment Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
SEGMENT INFORMATION
15. SEGMENT INFORMATION
As of March 31, 2021, the Company owns and manages properties within five segments: (1) Philadelphia Central Business District ("Philadelphia CBD"), (2) Pennsylvania Suburbs, (3) Austin, Texas (4) Metropolitan Washington, D.C. and (5) Other. The Philadelphia CBD segment includes properties located in the City of Philadelphia, Pennsylvania. The Pennsylvania Suburbs segment includes properties in Chester, Delaware, and Montgomery counties in the Philadelphia suburbs. The Austin, Texas segment includes properties in the City of Austin, Texas. The Metropolitan Washington, D.C. segment includes properties in the District of Columbia, Northern Virginia and Southern Maryland. The Other segment includes properties located in Camden County, New Jersey and New Castle County, Delaware. In addition to the five segments, the corporate group is responsible for cash and investment management, development of certain real estate properties during the construction period, and certain other general support functions. Land held for development and construction in progress is transferred to operating properties by region upon completion of the associated construction or project.
The following tables provide selected asset information and results of operations of the Company's reportable segments (in thousands):
Real estate investments, at cost:
March 31, 2021December 31, 2020
Philadelphia CBD$1,429,695 $1,433,927 
Pennsylvania Suburbs870,403 871,530 
Austin, Texas728,702 728,741 
Metropolitan Washington, D.C.270,582 352,794 
Other87,177 87,117 
Operating Properties$3,386,559 $3,474,109 
Corporate
Right of use asset - operating leases, net$20,810 $20,977 
Construction-in-progress$264,529 $210,311 
Land held for development$116,902 $117,984 
Prepaid leasehold interests in land held for development, net$27,762 $39,185 
Net operating income:
Three Months Ended March 31,
20212020
Total revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating income (loss)
Philadelphia CBD$51,227 $(17,411)$33,816 $65,915 $(24,198)$41,717 
Pennsylvania Suburbs31,740 (10,694)21,046 37,237 (12,678)24,559 
Austin, Texas26,175 (9,720)16,455 26,581 (10,145)16,436 
Metropolitan Washington, D.C.4,675 (4,199)476 10,754 (5,512)5,242 
Other3,213 (2,282)931 3,652 (2,693)959 
Corporate3,739 (2,368)1,371 949 (1,684)(735)
Operating properties$120,769 $(46,674)$74,095 $145,088 $(56,910)$88,178 

(a)Includes property operating expenses, real estate taxes and third party management expense.

Unconsolidated real estate ventures:
Investment in real estate venturesEquity in income (loss) of real estate venture
As ofThree Months Ended March 31,
March 31, 2021December 31, 202020212020
Philadelphia CBD$300,694 $268,562 $(4,279)$78 
Metropolitan Washington, D.C.99,617 99,769 (417)(449)
Mid-Atlantic Office JV32,735 32,996 207 — 
MAP Venture(17,223)(11,516)(2,435)(1,520)
Total$415,823 $389,811 $(6,924)$(1,891)
Net operating income (“NOI”) is a non-GAAP financial measure, which we define as total revenue less property operating expenses, real estate taxes and third party management expenses. Property operating expenses that are included in determining NOI consist of costs that are necessary and allocable to our operating properties such as utilities, property-level salaries, repairs and maintenance, property insurance and management fees. General and administrative expenses that are not reflected in NOI primarily consist of corporate-level salaries, amortization of share awards and professional fees that are incurred as part of corporate office management. NOI presented by the Company may not be comparable to NOI reported by other companies that define NOI differently. NOI is the primary measure that is used by the Company’s management to evaluate the operating performance of the Company’s real estate assets by segment. The Company believes NOI provides useful information to investors regarding the financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. While NOI is a relevant and widely used measure of operating performance of real estate investment trusts, it does not represent cash flow from operations or net income as defined by GAAP and should not be considered as an alternative to those measures in evaluating our liquidity or operating performance. NOI does not reflect interest expenses, real estate impairment losses, depreciation and amortization costs, capital expenditures and leasing costs. The
Company believes that net income (loss), as defined by GAAP, is the most appropriate earnings measure. The following is a reconciliation of consolidated net income, as defined by GAAP, to consolidated NOI, (in thousands):
Three Months Ended March 31,
20212020
Net income$6,964 $8,087 
Plus:
Interest expense16,293 20,009 
Interest expense - amortization of deferred financing costs709 749 
Depreciation and amortization40,343 52,038 
General and administrative expenses6,584 8,561 
Equity in loss of Real Estate Ventures6,924 1,891 
Less:
Interest and investment income1,674 575 
Income tax provision(19)(4)
Net gain on disposition of real estate74 2,586 
Net gain on sale of undepreciated real estate1,993 — 
Consolidated net operating income$74,095 $88,178