Reportable Segments

6 Months Ended

Jun. 30, 2019

The Company's segments are based on its method of internal reporting, which classifies operations by property type and geographical area. The segments by property type are: Office and Mixed-Use. The segments by geographical region are: Atlanta, Austin, Charlotte, Dallas, Phoenix, Tampa, and Other. These reportable segments represent an aggregation of operating segments reported to the Chief Operating Decision Maker based on similar economic characteristics that include the type of property and the geographical location. Each segment includes both consolidated operations and the Company's share of unconsolidated joint venture operations.

Company management evaluates the performance of its reportable segments in part based on net operating income (“NOI”). NOI represents rental property revenues, less termination fees, less rental property operating expenses. NOI is not a measure of cash flows or operating results as measured by GAAP, is not indicative of cash available to fund cash needs, and should not be considered an alternative to cash flows as a measure of liquidity. All companies may not calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental measure to net income as it helps both management and investors understand the core operations of the Company's operating assets. NOI excludes corporate general and administrative expenses, interest expense, depreciation and amortization, impairments, gains/loss on sales of real estate, and other non-operating items.

Segment net income, amount of capital expenditures, and total assets are not presented in the following tables because management does not utilize these measures when analyzing its segments or when making resource allocation decisions. Information on the Company's segments along with a reconciliation of NOI to net income for the three and six months ended June 30, 2019 and 2018 are as follows (in thousands):



Three Months Ended June 30, 2019	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	39,368	$	—	$	39,368
Austin	18,577		—		18,577
Charlotte	18,050		—		18,050
Dallas	669		—		669
Phoenix	9,290		—		9,290
Tampa	8,573		—		8,573
Other	2,182		708		2,890
Total Net Operating Income	$	96,709	$	708	$	97,417



Three Months Ended June 30, 2018	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	32,178	$	—	$	32,178
Austin	15,431		—		15,431
Charlotte	15,088		—		15,088
Phoenix	8,880		—		8,880
Tampa	7,642		—		7,642
Other	433		543		976
Total Net Operating Income	$	79,652	$	543	$	80,195



Six Months Ended June 30, 2019	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	76,766	$	—	$	76,766
Austin	34,525		—		34,525
Charlotte	33,859		—		33,859
Dallas	670		—		670
Phoenix	18,781		—		18,781
Tampa	16,560		—		16,560
Other	2,411		1,576		3,987
Total Net Operating Income	$	183,572	$	1,576	$	185,148



Six Months Ended June 30, 2018	Office		Mixed-Use		Total
Net Operating Income:
Atlanta	$	64,343	$	—	$	64,343
Austin	31,273		—		31,273
Charlotte	30,029		—		30,029
Phoenix	17,854		—		17,854
Tampa	15,370		—		15,370
Other	873		1,031		1,904
Total Net Operating Income	$	159,742	$	1,031	$	160,773

The following reconciles Net Operating Income to Net Income for each of the periods presented (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net Operating Income	$	97,417		$	80,195		$	185,148		$	160,773
Net operating income from unconsolidated joint ventures	(9,379		)	(7,228		)	(17,252		)	(14,649		)
Fee income	7,076			1,798			15,804			4,692
Termination fee income	190			639			710			999
Other income	11			493			151			1,093
Reimbursed expenses	(1,047		)	(860		)	(1,979		)	(1,802		)
General and administrative expenses	(8,374		)	(8,071		)	(19,834		)	(14,880		)
Interest expense	(12,059		)	(9,714		)	(22,879		)	(19,492		)
Depreciation and amortization	(50,904		)	(45,675		)	(96,765		)	(90,768		)
Acquisition and transaction costs	(49,827		)	(137		)	(49,830		)	(228		)
Other expenses	(624		)	(44		)	(804		)	(364		)
Income from unconsolidated joint ventures	3,634			5,036			6,538			7,921
Gain on sale of investment properties	1,304			5,317			14,415			4,945
Loss on extinguishment of debt	—			—			—			(85		)
Net Income (Loss)	$	(22,582	)	$	21,749		$	13,423		$	38,155

Revenues by reportable segment, including a reconciliation to total rental property revenues on the condensed consolidated statements of operations, for three and six months ended June 30, 2019 and 2018 are as follows (in thousands):



Three Months Ended June 30, 2019	Office			Mixed-Use			Total
Revenues:
Atlanta	$	59,499		$	—		$	59,499
Austin	31,815			—			31,815
Charlotte	27,110			—			27,110
Dallas	804			—			804
Phoenix	12,805			—			12,805
Tampa	13,471			—			13,471
Other	3,581			1,093			4,674
Total segment revenues	149,085			1,093			150,178
Less Company's share of rental property revenues from unconsolidated joint ventures	(14,152		)	(1,093		)	(15,245		)
Total rental property revenues	$	134,933		$	—		$	134,933



Three Months Ended June 30, 2018	Office			Mixed-Use			Total
Revenues:
Atlanta	$	50,521		$	—		$	50,521
Austin	26,407			—			26,407
Charlotte	23,053			—			23,053
Tampa	12,251			—			12,251
Phoenix	12,710			—			12,710
Other	549			834			1,383
Total segment revenues	125,491			834			126,325
Less Company's share of rental property revenues from unconsolidated joint ventures	(11,154		)	(834		)	(11,988		)
Total rental property revenues	$	114,337		$	—		$	114,337



Six Months Ended June 30, 2019	Office			Mixed-Use			Total
Revenues:
Atlanta	$	116,969		$	—		$	116,969
Austin	59,907			—			59,907
Charlotte	50,496			—			50,496
Dallas	804			—			804
Phoenix	25,808			—			25,808
Tampa	26,441			—			26,441
Other	4,126			2,277			6,403
Total segment revenues	284,551			2,277			286,828
Less Company's share of rental property revenues from unconsolidated joint ventures	(25,753		)	(2,277		)	(28,030		)
Total rental property revenues	$	258,798		$	—		$	258,798



Six Months Ended June 30, 2018	Office			Mixed-Use			Total
Revenues:
Atlanta	$	100,229		$	—		$	100,229
Austin	53,167			—			53,167
Charlotte	46,040			—			46,040
Tampa	24,796			—			24,796
Phoenix	24,822			—			24,822
Other	1,078			1,624			2,702
Total segment revenues	250,132			1,624			251,756
Less Company's share of rental property revenues from unconsolidated joint ventures	(22,087		)	(1,624		)	(23,711		)
Total rental property revenues	$	228,045		$	—		$	228,045