SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Schedule of Real Estate Investments, Net Operating Income and Unconsolidated Real Estate Ventures of Reportable Segments

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, 2023		December 31, 2022
Philadelphia CBD	$	1,521,723	$	1,517,801
Pennsylvania Suburbs	915,659		878,546
Austin, Texas	798,141		851,835
Total Core Segments	3,235,523		3,248,182
Other	460,543		369,058
Operating properties	$	3,696,066	$	3,617,240
Corporate
Right of use asset - operating leases, net	$	19,188	$	19,664
Construction-in-progress	$	143,929	$	218,869
Land held for development	$	76,058	$	76,499
Prepaid leasehold interests in land held for development, net	$	27,762	$	35,576

Net operating income:

	Three Months Ended September 30,
	2023						2022
	Total revenue		Operating expenses (a)		Net operating income		Total revenue		Operating expenses (a)		Net operating income
Philadelphia CBD	$	56,367	$	(18,609)	$	37,758	$	56,105	$	(20,080)	$	36,025
Pennsylvania Suburbs	32,611		(9,770)		22,841		32,709		(11,022)		21,687
Austin, Texas	24,457		(10,044)		14,413		22,509		(8,597)		13,912
Other	10,295		(5,526)		4,769		8,874		(5,089)		3,785
Corporate	5,642		(2,450)		3,192		5,372		(2,698)		2,674
Operating properties	$	129,372	$	(46,399)	$	82,973	$	125,569	$	(47,486)	$	78,083

	Nine Months Ended September 30,
	2023						2022
	Total revenue		Operating expenses (a)		Net operating income		Total revenue		Operating expenses (a)		Net operating income
Philadelphia CBD	$	169,265	$	(59,452)	$	109,813	$	165,002	$	(60,361)	$	104,641
Pennsylvania Suburbs	97,484		(29,633)		67,851		95,849		(31,438)		64,411
Austin, Texas	73,475		(30,021)		43,454		71,345		(29,328)		42,017
Other	28,572		(15,788)		12,784		27,078		(15,985)		11,093
Corporate	15,685		(8,359)		7,326		17,842		(7,941)		9,901
Operating properties	$	384,481	$	(143,253)	$	241,228	$	377,116	$	(145,053)	$	232,063

Includes property operating expenses, real estate taxes and third-party management expense.

Unconsolidated real estate ventures:
	Investment in real estate ventures				Equity in income (loss) of real estate venture
	As of				Three Months Ended September 30,				Nine Months Ended September 30,
	September 30, 2023		December 31, 2022		2023		2022		2023		2022
Philadelphia CBD	$	453,917	$	387,301	$	(6,537)	$	(3,452)	$	(14,208)	$	(8,798)
Metropolitan Washington, D.C.	82,350		83,903		(1,306)		(706)		(3,896)		(1,273)
Mid-Atlantic Office JV	28,335		31,005		182		(83)		595		234
MAP Venture	(45,148)		(35,411)		(3,078)		(2,019)		(6,995)		(5,967)
Austin, Texas	73,494		65,426		—		—		—		—
Total	$	592,948	$	532,224	$	(10,739)	$	(6,260)	$	(24,504)	$	(15,804)

Schedule of Reconciliation of Consolidated Net Income to Consolidated NOI

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,
	2023		2022		2023		2022
Net income (loss)	$	(21,636)	$	13,478	$	(39,649)	$	24,230
Plus:
Interest expense	24,355		17,061		70,677		49,144
Interest expense - amortization of deferred financing costs	1,110		745		3,251		2,259
Depreciation and amortization	48,966		45,134		141,645		132,875
General and administrative expenses	8,069		7,564		26,911		25,892
Equity in loss of unconsolidated real estate ventures	10,739		6,260		24,504		15,804
Provision for impairment	11,666		—		16,134		—
Less:
Interest income	293		498		1,318		1,387
Income tax benefit (provision)	3		9		(35)		(66)
Net gain on disposition of real estate	—		8,669		—		8,813
Net gain on sale of undepreciated real estate	—		2,983		781		8,007
Net gain on real estate venture transactions	—		—		181		—
Consolidated net operating income	$	82,973	$	78,083	$	241,228	$	232,063