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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION
19. SEGMENT INFORMATION
As of December 31, 2023, the Company owns and manages properties within four segments: (1) Philadelphia Central Business District (“Philadelphia CBD”), (2) Pennsylvania Suburbs, (3) Austin, Texas and (4) 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 Other segment includes properties located in Washington, D.C., Northern Virginia, Southern Maryland, Camden County, New Jersey and New Castle County, Delaware. In addition to the four 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 Company’s segments are based on the Company’s method of internal reporting which classifies its operations by geographic area. Beginning on January 1, 2023, the properties that were historically part of the Company's Metropolitan Washington, D.C. segment are reflected in the Company's Other reportable segment. The operations for the former Metropolitan Washington, D.C. segment for the twelve months ended December 31, 2022 and December 31, 2021 and real estate investments as of December 31, 2023 and December 31, 2022 as detailed below, have been included in the Other reportable segment. The following tables provide selected asset information and results of operations of the Company’s reportable segments (in thousands):
Real estate investments, at cost:
December 31, 2023December 31, 2022
Philadelphia CBD$1,534,893 $1,517,801 
Pennsylvania Suburbs900,230 878,546 
Austin, Texas801,973 851,835 
Total Core Segments3,237,096 3,248,182 
Other305,136 369,058 
Operating Properties$3,542,232 $3,617,240 
Corporate
Right of use asset - operating leases, net$19,031 $19,664 
Construction-in-progress$135,529 $218,869 
Land held for development$82,510 $76,499 
Prepaid leasehold interests in land held for development, net$27,762 $35,576 
.
Net operating income:
Year Ended December 31,
202320222021
Total revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating income
Philadelphia CBD$230,933 $(79,579)$151,354 $220,876 $(79,827)$141,049 $207,858 $(73,695)$134,163 
Pennsylvania Suburbs129,300 (39,584)89,716 128,940 (41,814)87,126 124,566 (40,011)84,555 
Austin, Texas95,505 (38,453)57,052 96,328 (41,141)55,187 101,680 (39,374)62,306 
Other39,306 (21,134)18,172 36,610 (21,165)15,445 33,880 (25,226)8,654 
Corporate19,607 (11,197)8,410 23,346 (10,454)12,892 18,835 (10,005)8,830 
Operating properties
$514,651 $(189,947)$324,704 $506,100 $(194,401)$311,699 $486,819 $(188,311)$298,508 
(a)Includes property operating expense, real estate taxes and third party management expense.
Unconsolidated real estate ventures:
Investment in real estate ventures, at equityEquity in income (loss) of real estate venture
As ofYear ended December 31,
December 31, 2023December 31, 2022202320222021
Philadelphia CBD$450,136 $387,301 $(25,793)$(11,764)$(15,191)
Mid-Atlantic Office JV— 31,005 (26,448)412 932 
MAP Venture(48,733)(35,411)(10,581)(8,340)(8,683)
Austin, Texas79,160 65,426 — — — 
Other
$71,931 $83,903 $(15,093)$(2,324)$(3,755)
Total$552,494 $532,224 $(77,915)$(22,016)$(26,697)

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):
Year Ended December 31,
202320222021
Net income (loss)$(197,403)$53,992 $12,366 
Plus:
Interest expense95,456 68,764 62,617 
Interest expense - amortization of deferred financing costs4,369 3,091 2,836 
Depreciation and amortization188,797 177,984 178,105 
General and administrative expenses34,862 35,006 30,153 
Equity in loss of unconsolidated real estate ventures77,915 22,016 26,697 
Provision for impairment131,573 4,663 — 
Gain (loss) on early extinguishment of debt(138)435 — 
Less:
Interest and investment income1,671 1,905 8,295 
Income tax provision(72)(55)(47)
Net gain on disposition of real estate7,736 17,677 142 
Net gain on sale of undepreciated real estate1,211 8,007 2,903 
Net gain on real estate venture transactions181 26,718 2,973 
Consolidated net operating income$324,704 $311,699 $298,508