The following tables provide selected asset information and results of operations of the Company's reportable segments (in thousands):

Real estate investments, at cost:
	September 30, 2016		December 31, 2015
Philadelphia CBD (a)	$	1,321,079	$	1,157,667
Pennsylvania Suburbs		1,011,490		1,019,280
Metropolitan Washington, D.C. (b)		999,549		1,129,206
Austin, Texas (c)		146,794		164,518
Other (d), (e)		207,427		222,329
	$	3,686,339	$	3,693,000
Assets held for sale (f), (g)		16,916		794,588
Operating Properties	$	3,703,255	$	4,487,588

Corporate
Construction-in-progress	$	249,183	$	268,983
Land held for development	$	155,297	$	130,479

(a)	The increase primarily relates to the office component of the FMC Tower at Cira Centre South being placed into service during the second quarter of 2016. See Note 3, "Real Estate Investments," for further information.

(b)	The decrease primarily relates to the sale of Herndon Metro Plaza I & II. See Note 3, "Real Estate Investments," for further information.

(c)	The decrease primarily relates to a building from the Broadmoor Austin portfolio being placed into redevelopment during the three-month period ended June 30, 2016.

(d)	The decrease primarily relates to the sale of the office property at 1120 Executive Boulevard in Mount Laurel, New Jersey and the held for sale classification of Oakland Lot B in Oakland, California. See Note 3, "Real Estate Investments," for further information.

(e)

As a result of the Och-Ziff Sale that occurred on February 4, 2016, the Company narrowed its segments to five segments: (1) Pennsylvania Suburbs, (2) Philadelphia Central Business District (“CBD”), (3) Metropolitan Washington, D.C. and (4) Austin, Texas and (5) Other. The Och-Ziff Sale disposed of the entire Richmond, Virginia segment. Subsequent to the Och-Ziff Sale, the segments previously defined as New Jersey/Delaware and California are now being managed as a consolidated segment entitled “Other,” as these geographies no longer provide a significant revenue contribution. Accordingly, the chief operating decision maker revised the management structure, reallocated resources, and is assessing business operations of the five segments as of January 1, 2016.

(f)

As of December 31, 2015, the office property located at 2970 Market Street in Philadelphia, Pennsylvania commonly known as 30^th Street Main Post Office (“Cira Square”) was classified as held for sale on the consolidated balance sheets. The Company disposed of its interests in the property on February 5, 2016. See Note 3, "Real Estate Investments," for further information.

(g)

As of December 31, 2015, the 58 properties associated with the series of related transactions with Och-Ziff Real Estate were classified as held for sale on the consolidated balance sheets. On February 4, 2016, the Company completed a series of transactions, resulting in the disposition of the properties. See Note 3, “Real Estate Investments,” for further information regarding the disposition. Additionally, as of September 30, 2016, the Company categorized three office properties located on Allendale Road in King of Prussia, Pennsylvania and one property located in Oakland, California known as Oakland Lot B as held for sale in accordance with applicable accounting standards for long lived assets. See Note 3, “Real Estate Investments,” for further information.

None of the above aforementioned sales or properties classified as held for sale are considered significant dispositions under the accounting guidance for discontinued operations.

Net operating income (in thousands):

	Three-month periods ended
	September 30,
	2016								2015
	Total revenue		Operating expenses (a)			Net operating income (loss)			Total revenue		Operating expenses (a)			Net operating income
Philadelphia CBD	$	50,744	$	(19,071	)	$	31,673		$	52,203	$	(18,750	)	$	33,453
Pennsylvania Suburbs		35,763		(11,247	)		24,516			39,507		(14,004	)		25,503
Metropolitan Washington, D.C.		24,251		(9,900	)		14,351			27,587		(10,792	)		16,795
Austin, Texas (b)		8,726		(3,523	)		5,203			8,533		(2,625	)		5,908
Other (c)		8,526		(4,837	)		3,689			24,275		(12,061	)		12,214
Corporate (d)		1,684		(2,739	)		(1,055	)		480		(386	)		94
Operating Properties	$	129,694	$	(51,317	)	$	78,377		$	152,585	$	(58,618	)	$	93,967

	Nine-month periods ended
	September 30,
	2016							2015
	Total revenue		Operating expenses (a)			Net operating income		Total revenue		Operating expenses (a)			Net operating income
Philadelphia CBD	$	148,496	$	(58,102	)	$	90,394	$	157,595	$	(56,587	)	$	101,008
Pennsylvania Suburbs		107,971		(36,982	)		70,989		118,407		(41,286	)		77,121
Metropolitan Washington, D.C.		76,881		(29,567	)		47,314		81,947		(33,197	)		48,750
Austin, Texas (b)		25,123		(9,689	)		15,434		11,999		(4,993	)		7,006
Other (c)		30,328		(17,513	)		12,815		76,129		(38,238	)		37,891
Corporate (d)		4,578		(4,460	)		118		2,562		(1,364	)		1,198
Operating Properties	$	393,377	$	(156,313	)	$	237,064	$	448,639	$	(175,665	)	$	272,974

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

(b)

On June 22, 2015 the Company acquired the remaining 50.0% interest in Broadmoor Austin Associates. As such, the Company has seven wholly owned properties in its Austin, Texas business segment at June 30, 2016. In addition, net operating income for the three and nine months ended September 30, 2016 and 2015 includes management fees and related expenses for services provided by the Company to the Austin Venture.

(c)	See footnote (e) to the “Real estate investments, at cost” table above for further information regarding this segment.

(d)	Increase in revenue and operating expenses primarily relates to the third party management operations of the Subaru Headquarters Development and third party management of the MAP Venture.

Unconsolidated real estate ventures (in thousands):
	Investment in real estate ventures, at equity				Equity in income (loss) of real estate ventures
	As of				Three-month periods ended September 30,						Nine-month periods ended September 30,
	September 30, 2016		December 31, 2015		2016			2015			2016			2015
Philadelphia CBD (a)	$	48,904	$	44,089	$	(453	)	$	(186	)	$	(473	)	$	(636	)
Pennsylvania Suburbs		15,025		16,408		(170	)		(120	)		410			(142	)
Metropolitan Washington, D.C. (b)		140,219		118,422		(5,287	)		(343	)		(6,068	)		(572	)
MAP Venture (c)		22,503		-		(1,010	)		-			(2,608	)		-
Other (d)		1,554		1,657		227			173			715			669
Austin, Texas (e)		53,957		60,428		(561	)		(617	)		(1,299	)		(1,154	)
Total	$	282,162	$	241,004	$	(7,254	)	$	(1,093	)	$	(9,323	)	$	(1,835	)

(a)	Net increase of investment of $4.8 million primary relates to the evo at Cira real estate venture. See Note 4, “Investment in Unconsolidated Real Estate Ventures,” for further information.

(b)

On August 31, 2016, the Company terminated its lease for the regional management and leasing office at 3141 Fairview Park Drive, located in Falls Church, Virginia. Accordingly, the Company no longer has any continuing involvement with 3141 Fairview Park Drive and recorded the partial sale under the full accrual method of accounting. As a result, the Company deconsolidated net assets of $45.6 million, a mortgage loan of $20.6 million and a financing liability of $12.4 million related to the property from its consolidated balance sheet and recorded a $12.6 million equity method investment to the Company’s Brandywine - AI Venture LLC, in which the Company owns a 50% interest. See Note 4, “Investment in Unconsolidated Real Estate Ventures,” for details.

(c)

The MAP Venture represents a joint venture formed between the Company and MAP Ground Lease Holdings LLC, an affiliate of Och-Ziff Capital Management Group, LLC, on February 4, 2016. See Note 4 “Investment in Unconsolidated Real Estate Ventures,” to our consolidated financial statements for further information. The MAP Venture’s business operations, including properties in Richmond, Virginia; Metropolitan Washington, D.C.; New Jersey/Delaware and Pennsylvania Suburbs, are centrally managed with the results reported to management of the Company on a consolidated basis. As a result, the investment in the MAP Venture is separately presented. All other unconsolidated real estate ventures are managed consistently with the Company’s regional segments.

(d)	See footnote (e) to the “Real estate investments, at cost” table above for further information regarding this segment.

(e)

Investment in real estate ventures does not include the $1.1 million negative investment balance in one real estate venture as of December 31, 2015, which is included in other liabilities. The Company disposed of its interest in this venture during the three-month period ended March 31, 2016. See Note 4, "Investment in Unconsolidated Real Estate Ventures," for further information. The decrease to our investment balance primarily relates to distributions from the G&I VII Austin Office LLC real estate venture.

The following is a reconciliation of consolidated NOI to consolidated net income, as defined by GAAP (in thousands):

	Three-month periods ended September 30,						Nine-month periods ended September 30,
	2016			2015			2016			2015

Consolidated net operating income	$	78,377		$	93,967		$	237,064		$	272,974
Less:
Interest expense		(20,814	)		(27,900	)		(64,334	)		(83,971	)
Interest expense - amortization of deferred financing costs		(645	)		(1,010	)		(2,063	)		(3,377	)
Interest expense - financing obligation		(156	)		(296	)		(679	)		(906	)
Depreciation and amortization		(46,956	)		(58,314	)		(142,736	)		(160,355	)
General and administrative expenses		(5,515	)		(6,127	)		(20,711	)		(21,554	)
Equity in loss of real estate ventures		(7,254	)		(1,093	)		(9,323	)		(1,835	)
Provision for impairment		-			-			(13,069	)		(2,508	)
Loss on early extinguishment of debt		-			-			(66,590	)		-
Plus:
Interest income		291			126			970			1,189
Tax credit transaction income		-			11,853			-			11,853
Net gain (loss) on disposition of real estate		(104	)		6,083			114,625			16,673
Net gain on sale of undepreciated real estate		188			3,019			188			3,019
Net gain from remeasurement of investment in a real estate venture		-			-			-			758
Net gain on Real Estate Venture transactions		10,472			-			19,529			-
Net income	$	7,884		$	20,308		$	52,871		$	31,960