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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION
14. SEGMENT INFORMATION
As of March 31, 2025, 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:
March 31, 2025December 31, 2024
Philadelphia CBD$1,578,547 $1,556,696 
Pennsylvania Suburbs875,479 869,179 
Austin, Texas668,562 671,150 
Total Core Segments3,122,588 3,097,025 
Other282,460 277,755 
Operating properties
$3,405,048 $3,374,780 
Corporate
Right of use asset - operating leases, net$18,259 $18,412 
Construction-in-progress$78,021 $94,628 
Land held for development$82,536 $81,318 
Prepaid leasehold interests in land held for development, net$27,762 $27,762 
Net operating income:
Three Months Ended March 31,
20252024
Total revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating income
Philadelphia CBD$55,388 $(20,631)$34,757 $55,988 $(19,882)$36,106 
Pennsylvania Suburbs31,931 (10,055)21,876 32,019 (9,359)22,660 
Austin, Texas18,151 (7,767)10,384 23,255 (9,013)14,242 
Other10,523 (5,224)5,299 10,968 (5,462)5,506 
Corporate5,523 (3,914)1,609 4,254 (3,698)556 
Operating properties$121,516 $(47,591)$73,925 $126,484 $(47,414)$79,070 
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 March 31,
March 31, 2025December 31, 202420252024
Philadelphia CBD$458,335 $452,334 $(4,208)$(9,613)
Mid-Atlantic Office JV10,684 10,844 (161)— 
MAP Venture— — — (3,223)
Austin, Texas84,500 90,495 (5,888)— 
Other16,851 16,782 (254)(752)
Total$570,370 $570,455 $(10,511)$(13,588)
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 March 31,
20252024
Net loss$(27,056)$(16,414)
Plus:
Interest expense31,845 25,049 
Interest expense - amortization of deferred financing costs1,230 1,091 
Depreciation and amortization44,353 45,042 
General and administrative expenses17,470 11,104 
Equity in loss of unconsolidated real estate ventures10,511 13,588 
Less:
Interest and investment income1,186 421 
Income tax provision— (2)
Net gain on disposition of real estate3,059 — 
Net gain (loss) on real estate venture transactions183 (29)
Consolidated net operating income$73,925 $79,070