Discontinued Operations

12 Months Ended

Dec. 31, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

3. Discontinued Operations

Beginning in 2018 and through 2020, we sold all of the assets in our Washington, D.C. portfolio, thereby exiting the Washington, D.C. office market. These dispositions represented a strategic shift in our operations and met the criteria for classifying our Washington, D.C. segment as “discontinued operations,” in accordance with ASC Topic 205, Presentation of Financial Statements. Accordingly, effective March 31, 2020, we reclassified the results of operations of our Washington, D.C. segment as discontinued operations.

On December 24, 2020, we completed the sale of 1899 Pennsylvania Avenue, a 191,000 square foot trophy office building located in Washington, D.C., for $103,000,000. We realized net proceeds of $89,206,000 from the sale after transaction costs and recognized a loss of $12,766,000, which is included as a component of “loss from discontinued operations, net” on our consolidated statement of income for the year ended December 31, 2020. The tables below provide the details of the results of operations and the details of the cash flows related to discontinued operations for the periods set forth below.

(Amounts in thousands)	For the Year Ended
Income Statements: (1)	December 31, 2020
Revenues:
Rental revenue	$	13,967
Other income		276
Total revenues		14,243
Expenses:
Operating		5,853
Depreciation and amortization		690
Total expenses		6,543
Income before gain or loss on sale of real estate		7,700
Loss on sale of real estate		(12,766	)
Loss before income taxes		(5,066	)
Income tax expense		(9	)
Loss from discontinued operations, net	$	(5,075	)

	For the Year Ended
Statements of Cash Flows: (1)	December 31, 2020
Cash provided by operating activities	$	5,522
Cash provided by investing activities (2)	$	89,206
Cash used in financing activities	$	(96,896	)
Additional Cash Flow Information:
Depreciation and amortization	$	690

(1)Represents revenues, expenses, net income, and cash flow information of 1899 Pennsylvania Avenue.

(2)Represents net proceeds from the sale of 1899 Pennsylvania Avenue.