Segment Information

The Company owns and operates industrial properties nationally and owns and operates office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. During the three months ended March 31, 2019, the Company realigned its reportable segments as follows:


•	Carolinas/Richmond;


•	Chicago/Minneapolis;


•	Cincinnati/Columbus/Indianapolis;


•	Dallas


•	Florida;


•	Houston;


•	Lehigh/Central PA;


•	Philadelphia;


•	Southern California; and


•	United Kingdom.

Certain other segments are aggregated into an "Other" category which includes the reportable segments: Arizona; Atlanta; DC Metro; New Jersey; and Southeastern Pennsylvania.

Comparative prior periods have been restated to reflect current segment disclosures.

The Company evaluates the performance of its reportable segments based on net operating income. Net operating income includes operating revenue from external customers, real estate taxes, amortization of lease transaction costs and other operating expenses which relate directly to the management and operation of the assets within each reportable segment.

The Company's accounting policies for the segments are the same as those used in the Company's consolidated financial statements. There are no material inter-segment transactions.

The operating information by reportable segment is as follows (in thousands):



		Three Months Ended
		March 31, 2019			March 31, 2018
Revenue
	Carolinas/Richmond	$	20,086		$	19,793
	Chicago/Minneapolis	17,415			16,517
	Cincinnati/Columbus/Indianapolis	4,341			4,822
	Dallas	5,517			4,085
	Florida	16,283			15,408
	Houston	16,091			15,862
	Lehigh/Central PA	40,208			38,085
	Philadelphia	11,338			12,345
	Southern California	9,551			6,795
	United Kingdom	5,998			4,273
	Other	23,552			34,103
Segment-level revenue		170,380			172,088

Reconciliation to total revenue
	Development service fee income	864			26,352
	Discontinued operations	(13,264		)	(25,631		)
	Other	(230		)	(96		)
Total revenue		$	157,750		$	172,713

Net operating income
	Carolinas/Richmond	$	14,332		$	14,047
	Chicago/Minneapolis	10,335			9,901
	Cincinnati/Columbus/Indianapolis	2,770			3,268
	Dallas	3,390			2,473
	Florida	11,436			10,819
	Houston	8,865			9,597
	Lehigh/Central PA	28,427			27,767
	Philadelphia	8,075			10,154
	Southern California	7,447			5,228
	United Kingdom	2,981			2,429
	Other	14,214			22,471
Net operating income		112,272			118,154

Reconciliation to income from continuing operations
	Interest expense ⁽¹⁾	(26,205		)	(23,459		)
	Depreciation/amortization expense ^{(1) (2)}	(33,585		)	(33,408		)
	Gain on property dispositions	741			4,158
	Equity in earnings of unconsolidated joint ventures	7,009			6,764
	General and administrative expense ^{(1) (2)}	(13,158		)	(10,725		)
	Leasing cost	(3,208		)	(2,812		)
	Other operating expenses⁽²⁾	(2,268		)	(2,502		)
	Discontinued operations excluding gain and impairment on property dispositions	(6,119		)	(12,995		)
	Income taxes^{(1) (2)}	(242		)	(12		)
	Other	5,725			(2,445		)
Income from continuing operations		$	40,962		$	40,718


(1)	Includes activity in discontinued operations.


(2)	Excludes costs that are included in determining net operating income.

The Company's total assets by reportable segment as of March 31, 2019 and December 31, 2018 is as follows (in thousands):



	March 31, 2019		December 31, 2018
Carolinas/Richmond	$	526,631	$	525,041
Chicago/Minnesota	588,169		591,792
Cincinnati/Columbus/Indianapolis	132,501		131,400
Dallas	305,929		261,538
Florida	543,304		547,232
Houston	586,409		568,756
Lehigh/Central PA	1,208,754		1,210,220
Philadelphia	609,011		624,373
Southern California	703,117		660,688
United Kingdom	409,821		463,162
Other	1,152,581		1,153,518
Segment-level total assets	6,766,227		6,737,720
Corporate Other	172,352		196,672
Total assets	$	6,938,579	$	6,934,392