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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION
14. SEGMENT INFORMATION
As of March 31, 2022, 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, 2022December 31, 2021
Philadelphia CBD$1,494,819 $1,460,510 
Pennsylvania Suburbs859,470 866,223 
Austin, Texas791,600 778,145 
Metropolitan Washington, D.C.285,386 280,921 
Other86,720 86,803 
Operating Properties$3,517,995 $3,472,602 
Corporate
Right of use asset - operating leases, net$20,150 $20,313 
Construction-in-progress$283,323 $277,237 
Land held for development$94,411 $114,604 
Prepaid leasehold interests in land held for development, net$27,762 $27,762 
Net operating income:
Three Months Ended March 31,
20222021
Total revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating income
Philadelphia CBD$53,471 $(19,743)$33,728 $51,227 $(17,411)$33,816 
Pennsylvania Suburbs31,807 (10,158)21,649 31,740 (10,694)21,046 
Austin, Texas24,915 (10,293)14,622 26,175 (9,720)16,455 
Metropolitan Washington, D.C.5,195 (3,428)1,767 4,675 (4,199)476 
Other3,604 (2,010)1,594 3,213 (2,282)931 
Corporate8,513 (2,286)6,227 3,739 (2,368)1,371 
Operating properties$127,505 $(47,918)$79,587 $120,769 $(46,674)$74,095 
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, 2022December 31, 202120222021
Philadelphia CBD$343,502 $317,959 $(2,772)$(4,279)
Metropolitan Washington, D.C.85,976 85,867 (186)(417)
Mid-Atlantic Office JV31,911 31,680 418 207 
MAP Venture(26,834)(24,396)(2,023)(2,435)
Total$434,555 $411,110 $(4,563)$(6,924)
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 (loss), as defined by GAAP, to consolidated NOI, (in thousands):
Three Months Ended March 31,
20222021
Net income$6,101 $6,964 
Plus:
Interest expense15,742 16,293 
Interest expense - amortization of deferred financing costs709 709 
Depreciation and amortization43,782 40,343 
General and administrative expenses10,000 6,584 
Equity in loss of unconsolidated real estate ventures4,563 6,924 
Less:
Interest and investment income440 1,674 
Income tax provision(27)(19)
Net gain on disposition of real estate— 74 
Net gain on sale of undepreciated real estate897 1,993 
Consolidated net operating income$79,587 $74,095