Segments Disclosure

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segments Disclosure

17. Segments Disclosure

The Company

Upon completion of the Offering and Formation Transactions, we acquired substantially all of the assets of our Predecessor and substantially all of the assets of the Property Funds that it controlled. Our business, following the Formation Transactions, is comprised of one reportable segment. We have determined that our properties have similar economic characteristics to be aggregated into one reportable segment (operating, leasing and managing office properties). Our determination was based, in part, on our method of internal reporting.

The following tables provide selected results for each reportable segment for the three and six months ended June 30, 2015 and 2014.

	For the Three Months Ended June 30, 2015
	Owned
(Amounts in thousands)	Properties			Other			Total
Income Statement Data:
Revenues
Rental income	$	145,349		$	568		$	145,917
Tenant reimbursement income		12,063			-			12,063
Fee and other income		3,168			1,780			4,948
Total revenues		160,580			2,348			162,928
Total expenses		138,001			16,542			154,543
Operating income (loss)		22,579			(14,194	)		8,385
Income from real estate fund investments		-			14,072			14,072
Income from unconsolidated joint ventures		1,985			26			2,011
Unrealized gains on interest rate swaps		21,747			-			21,747
Interest and other income, net		91			421			512
Interest and debt expense		(39,741	)		(2,495	)		(42,236	)
Net income (loss) before income taxes		6,661			(2,170	)		4,491
Income tax benefit (expense)		467			(1,810	)		(1,343	)
Net income (loss)		7,128			(3,980	)		3,148
Add:
Depreciation and amortization		79,119			302			79,421
General and administrative		(42	)		9,175			9,133
Interest and debt expense		39,741			2,495			42,236
Transfer taxes due in connection with the sale of shares
by a former joint venture partner		-			5,872			5,872
Acquisition and transaction related costs		-			2,336			2,336
Income tax (benefit) expense		(467	)		1,810			1,343
Net Operating Income from unconsolidated joint ventures		4,138			140			4,278
Less:
Income from real estate fund investments		-			(14,072	)		(14,072	)
Income from unconsolidated joint ventures		(1,985	)		(26	)		(2,011	)
Fee income		-			(1,780	)		(1,780	)
Unrealized gains on interest rate swaps		(21,747	)		-			(21,747	)
Interest and other income, net		(91	)		(421	)		(512	)
Net Operating Income (1)	$	105,794		$	1,851		$	107,645

	For the Six Months Ended June 30, 2015
	Owned
(Amounts in thousands)	Properties			Other			Total
Income Statement Data:
Revenues
Rental income	$	287,826		$	1,334		$	289,160
Tenant reimbursement income		25,551			-			25,551
Fee and other income		6,123			3,320			9,443
Total revenues		319,500			4,654			324,154
Total expenses		273,652			30,110			303,762
Operating income (loss)		45,848			(25,456	)		20,392
Income from real estate fund investments		-			19,293			19,293
Income from unconsolidated joint ventures		2,925			61			2,986
Unrealized gains on interest rate swaps		33,725			-			33,725
Interest and other income, net		185			1,181			1,366
Interest and debt expense		(78,873	)		(5,251	)		(84,124	)
Net (loss) income before income taxes		3,810			(10,172	)		(6,362	)
Income tax benefit (expense)		7			(1,924	)		(1,917	)
Net (loss) income		3,817			(12,096	)		(8,279	)
Add:
Depreciation and amortization		152,456			548			153,004
General and administrative		-			21,746			21,746
Interest and debt expense		78,873			5,251			84,124
Transfer taxes due in connection with the sale of shares
by a former joint venture partner		-			5,872			5,872
Acquisition and transaction related costs		-			3,475			3,475
Income tax (benefit) expense		(7	)		1,924			1,917
Net Operating Income from unconsolidated joint ventures		7,874			185			8,059
Less:
Income from real estate fund investments		-			(19,293	)		(19,293	)
Income from unconsolidated joint ventures		(2,925	)		(61	)		(2,986	)
Fee income		-			(3,315	)		(3,315	)
Unrealized gains on interest rate swaps		(33,725	)		-			(33,725	)
Interest and other income, net		(185	)		(1,181	)		(1,366	)
Net Operating Income (1)	$	206,178		$	3,055		$	209,233

⁽¹⁾  Net Operating Income (“NOI”) is a metric we use to measure the operating performance of our properties, and consists of property-related revenue (which includes rental revenue, tenant reimbursement income and certain other income) less operating expenses (which includes building expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI, and accordingly, our presentation of NOI may not be comparable to other real estate companies.

The Predecessor

Our Predecessor historically operated an integrated business that consisted of three reportable segments, (i) Owned Properties, (ii) Managed Funds and (iii) a Management Company. The Owned Properties segment consisted of properties in which our Predecessor had a direct or indirect ownership interest, other than properties that it owned through its private equity real estate funds. The Managed Funds segment consisted of the private equity real estate funds. In addition, our Predecessor included a Management Company that performed property management and asset management services and certain general and administrative level functions, including legal and accounting, as a separate reportable segment.   

	For the Three Months Ended June 30, 2014
	Owned			Managed			Management
(Amounts in thousands)	Properties			Funds			Company			Eliminations			Total
Income Statement Data:
Revenues
Rental income	$	7,813		$	686		$	-		$	-		$	8,499
Tenant reimbursement income		441			-			-			-			441
Distributions from real estate fund investments		-			4,744			-			-			4,744
Realized and unrealized gains, net		-			33,750			-			-			33,750
Fee and other income		-			-			14,137			(7,737	)		6,400
Total revenues		8,254			39,180			14,137			(7,737	)		53,834
Total expenses		6,677			6,475			12,133			(7,737	)		17,548
Operating income		1,577			32,705			2,004			-			36,286
Income from unconsolidated joint ventures		903			-			11,568			(11,568	)		903
Unrealized loss on interest rate swaps		-			(354	)		-			-			(354	)
Interest and other income, net		684			310			3			-			997
Interest and debt expense		(3,880	)		(4,069	)		(39	)		-			(7,988	)
Net income (loss) before income taxes		(716	)		28,592			13,536			(11,568	)		29,844
Income tax expense		-			-			(3,842	)		-			(3,842	)
Net income (loss)		(716	)		28,592			9,694			(11,568	)		26,002
Net income attributable to noncontrolling interests		-			(25,823	)		-			-			(25,823	)
Net income (loss) attributable to the Predecessor	$	(716	)	$	2,769		$	9,694		$	(11,568	)	$	179

	For the Six Months Ended June 30, 2014
	Owned			Managed			Management
(Amounts in thousands)	Properties			Funds			Company			Eliminations			Total
Income Statement Data:
Revenues
Rental income	$	15,464		$	848		$	-		$	-		$	16,312
Tenant reimbursement income		896			-			-			-			896
Distributions from real estate fund investments		-			11,247			-			-			11,247
Realized and unrealized gains, net		-			79,917			-			-			79,917
Fee and other income		-			-			27,910			(16,328	)		11,582
Total revenues		16,360			92,012			27,910			(16,328	)		119,954
Total expenses		13,502			17,001			23,725			(16,328	)		37,900
Operating income		2,858			75,011			4,185			-			82,054
Income from unconsolidated joint ventures		2,035			-			25,858			(25,858	)		2,035
Unrealized loss on interest rate swaps		-			(196	)		-			-			(196	)
Interest and other income, net		1,347			356			3			-			1,706
Interest and debt expense		(7,665	)		(8,083	)		(39	)		-			(15,787	)
Net income (loss) before income taxes		(1,425	)		67,088			30,007			(25,858	)		69,812
Income tax expense		-			-			(7,105	)		-			(7,105	)
Net income (loss)		(1,425	)		67,088			22,902			(25,858	)		62,707
Net income attributable to noncontrolling interests		-			(53,133	)		-			-			(53,133	)
Net income (loss) attributable to the Predecessor	$	(1,425	)	$	13,955		$	22,902		$	(25,858	)	$	9,574