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SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION
13. SEGMENT INFORMATION
As of September 30, 2024, 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 the District of Columbia, 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/redevelopment 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 the Company's operations by geographic area. 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, 2024December 31, 2023
Philadelphia CBD$1,535,263 $1,534,893 
Pennsylvania Suburbs803,267 900,230 
Austin, Texas790,435 801,973 
Total Core Segments3,128,965 3,237,096 
Other280,640 305,136 
Operating properties
$3,409,605 $3,542,232 
Corporate
Right of use asset - operating leases, net$18,565 $19,031 
Construction-in-progress$166,278 $135,529 
Land held for development$78,259 $82,510 
Prepaid leasehold interests in land held for development, net$27,762 $27,762 
Net operating income:
Three Months Ended September 30,
20242023
Total revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating income
Philadelphia CBD$56,448 $(19,959)$36,489 $56,367 $(18,609)$37,758 
Pennsylvania Suburbs31,681 (10,081)21,600 32,611 (9,770)22,841 
Austin, Texas21,951 (8,429)13,522 24,457 (10,044)14,413 
Other10,430 (5,076)5,354 10,295 (5,526)4,769 
Corporate11,272 (2,734)8,538 5,642 (2,450)3,192 
Operating properties$131,782 $(46,279)$85,503 $129,372 $(46,399)$82,973 

Nine Months Ended September 30,
20242023
Total revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating income
Philadelphia CBD$169,159 $(58,912)$110,247 $169,265 $(59,452)$109,813 
Pennsylvania Suburbs95,366 (29,337)66,029 97,484 (29,633)67,851 
Austin, Texas67,360 (26,276)41,084 73,475 (30,021)43,454 
Other31,706 (15,670)16,036 28,572 (15,788)12,784 
Corporate20,021 (9,812)10,209 15,685 (8,359)7,326 
Operating properties$383,612 $(140,007)$243,605 $384,481 $(143,253)$241,228 
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 ventures
As ofThree Months Ended September 30,Nine Months Ended September 30,
September 30, 2024December 31, 20232024202320242023
Philadelphia CBD$419,700 $450,136 $(125,593)$(6,537)$(145,429)$(14,208)
Metropolitan Washington, D.C.86,666 71,931 (6,915)(1,306)(8,608)(3,896)
Mid-Atlantic Office JV10,925 — 7,222 182 7,222 595 
MAP Venture— (48,733)10 (3,078)(6,552)(6,995)
Austin, Texas85,409 79,160 (586)— (590)— 
Total$602,700 $552,494 $(125,862)$(10,739)$(153,957)$(24,504)
Net operating income (“NOI”) is a non-GAAP financial measure, which we define as total property 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,
2024202320242023
Net loss$(165,720)$(21,636)$(151,867)$(39,649)
Plus:
Interest expense30,561 24,355 85,104 70,677 
Interest expense - amortization of deferred financing costs1,247 1,110 3,753 3,251 
Depreciation and amortization44,301 48,966 133,530 141,645 
General and administrative expenses12,681 8,069 32,726 26,911 
Equity in loss of unconsolidated real estate ventures125,862 10,739 153,957 24,504 
Provision for impairment37,980 11,666 44,407 16,134 
Gain on early extinguishment of debt— — (941)— 
Less:
Interest and investment income639 293 2,572 1,318 
Income tax benefit (provision)— 3 (11)(35)
Net gain on sale of undepreciated real estate— — — 781 
Net gain on real estate venture transactions770 — 54,503 181 
Consolidated net operating income$85,503 $82,973 $243,605 $241,228