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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION
14. SEGMENT INFORMATION
As of March 31, 2024, the Company owns and manages properties within four segments: (1) Philadelphia Central Business District (“Philadelphia CBD”), (2) Pennsylvania Suburbs, (3) Austin, Texas and (4) 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 Other segment includes properties located in the District of Columbia, Northern Virginia, Southern Maryland, Camden County, New Jersey and New Castle County, Delaware. In addition to the four 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 Company’s segments are based on the Company’s method of internal reporting, which classifies the Company's operations by geographic area. 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, 2024December 31, 2023
Philadelphia CBD$1,535,852 $1,534,893 
Pennsylvania Suburbs901,577 900,230 
Austin, Texas803,756 801,973 
Total Core Segments3,241,185 3,237,096 
Other308,489 305,136 
Operating properties
$3,549,674 $3,542,232 
Corporate
Right of use asset - operating leases, net$18,875 $19,031 
Construction-in-progress$146,194 $135,529 
Land held for development$81,616 $82,510 
Prepaid leasehold interests in land held for development, net$27,762 $27,762 
Net operating income:
Three Months Ended March 31,
20242023
Total revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating income
Philadelphia CBD$55,988 $(19,882)$36,106 $56,227 $(20,586)$35,641 
Pennsylvania Suburbs32,019 (9,359)22,660 32,771 (9,779)22,992 
Austin, Texas23,255 (9,013)14,242 25,237 (11,294)13,943 
Other10,968 (5,462)5,506 9,389 (5,412)3,977 
Corporate4,254 (3,698)556 5,603 (3,764)1,839 
Operating properties$126,484 $(47,414)$79,070 $129,227 $(50,835)$78,392 
Includes property operating expenses, real estate taxes and third-party management expense.
Unconsolidated real estate ventures:
Investment in real estate ventures
Equity in income (loss) of real estate ventures
As ofThree Months Ended March 31,
March 31, 2024December 31, 202320242023
Philadelphia CBD$468,642 $450,136 $(9,613)$(3,259)
Metropolitan Washington, D.C.69,288 71,931 (752)(1,176)
Mid-Atlantic Office JV— — — 190 
MAP Venture(52,200)(48,733)(3,223)(1,922)
Austin, Texas80,112 79,160 — — 
Total$565,842 $552,494 $(13,588)$(6,167)
Net operating income (“NOI”) is a non-GAAP financial measure, which we define as total property 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,
20242023
Net loss$(16,414)$(5,276)
Plus:
Interest expense25,049 22,653 
Interest expense - amortization of deferred financing costs1,091 1,027 
Depreciation and amortization45,042 45,600 
General and administrative expenses11,104 9,482 
Equity in loss of unconsolidated real estate ventures13,588 6,167 
Less:
Interest and investment income421 505 
Income tax provision(2)(25)
Net gain on sale of undepreciated real estate— 781 
Net loss on real estate venture transactions(29)— 
Consolidated net operating income$79,070 $78,392