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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
SEGMENT INFORMATION
13. SEGMENT INFORMATION
As of September 30, 2022, the Company owns and manages properties within five segments: (1) Philadelphia Central Business District ("Philadelphia CBD"), (2) Pennsylvania Suburbs, (3) Austin, Texas (4) Metropolitan Washington, D.C. and (5) 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 Metropolitan Washington, D.C. segment includes properties in the District of Columbia, Northern Virginia and Southern Maryland. The Other segment includes properties located in Camden County, New Jersey and New Castle County, Delaware. In addition to the five 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 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, 2022December 31, 2021
Philadelphia CBD$1,515,324 $1,460,510 
Pennsylvania Suburbs852,658 866,223 
Austin, Texas843,213 778,145 
Metropolitan Washington, D.C.289,904 280,921 
Other85,984 86,803 
$3,587,083 $3,472,602 
Assets held for sale (a)21,050 — 
Operating Properties$3,608,133 $3,472,602 
Corporate
Right of use asset - operating leases, net$19,826 $20,313 
Construction-in-progress$227,231 $277,237 
Land held for development$74,272 $114,604 
Prepaid leasehold interests in land held for development, net$35,576 $27,762 
Net operating income:
Three Months Ended September 30,
20222021
Total revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating income
Philadelphia CBD$56,105 $(20,080)$36,025 $51,587 $(18,823)$32,764 
Pennsylvania Suburbs32,709 (11,022)21,687 31,327 (10,154)21,173 
Austin, Texas22,509 (8,597)13,912 24,813 (9,580)15,233 
Metropolitan Washington, D.C.5,360 (3,030)2,330 5,224 (3,806)1,418 
Other3,514 (2,059)1,455 3,638 (2,534)1,104 
Corporate5,372 (2,698)2,674 3,829 (2,155)1,674 
Operating properties$125,569 $(47,486)$78,083 $120,418 $(47,052)$73,366 
Nine Months Ended September 30,
20222021
Total revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating income
Philadelphia CBD$165,002 $(60,361)$104,641 $154,259 $(54,493)99,766 
Pennsylvania Suburbs95,849 (31,438)64,411 93,361 (30,625)62,736 
Austin, Texas71,345 (29,328)42,017 76,501 (29,262)47,239 
Metropolitan Washington, D.C.16,041 (9,574)6,467 14,711 (11,907)2,804 
Other11,037 (6,411)4,626 10,513 (7,344)3,169 
Corporate17,842 (7,941)9,901 11,944 (7,522)4,422 
Operating properties$377,116 $(145,053)$232,063 $361,289 $(141,153)$220,136 
Includes property operating expenses, real estate taxes and third party management expense.
Unconsolidated real estate ventures:
Investment in real estate venturesEquity in income (loss) of real estate venture
As ofThree Months Ended September 30,Nine Months Ended September 30,
September 30, 2022December 31, 20212022202120222021
Philadelphia CBD$397,973 $317,959 $(3,452)$(3,602)$(8,798)$(12,542)
Metropolitan Washington, D.C.85,206 85,867 (706)(1,173)(1,273)(2,368)
Mid-Atlantic Office JV31,229 31,680 (83)310 234 634 
MAP Venture(32,522)(24,396)(2,019)(2,169)(5,967)(6,522)
Austin, Texas65,049 — — — — — 
Total$546,935 $411,110 $(6,260)$(6,634)$(15,804)$(20,798)
Net operating income (“NOI”) is a non-GAAP financial measure, which we define as total 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 September 30,Nine Months Ended September 30,
2022202120222021
Net income$13,478 $974 $24,230 $7,763 
Plus:
Interest expense17,061 15,190 49,144 46,973 
Interest expense - amortization of deferred financing costs745 709 2,259 2,127 
Depreciation and amortization45,134 48,175 132,875 131,303 
General and administrative expenses7,564 7,076 25,892 22,016 
Equity in loss of unconsolidated real estate ventures6,260 6,634 15,804 20,798 
Less:
Interest and investment income498 4,494 1,387 7,845 
Income tax (provision) benefit9 (12)(66)(46)
Net gain on disposition of real estate8,669 — 8,813 142 
Net gain on sale of undepreciated real estate2,983 910 8,007 2,903 
Consolidated net operating income$78,083 $73,366 $232,063 $220,136