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Segment Information
 6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company owns and operates industrial properties nationally and owns and operates certain non-core office properties in a focused group of office markets. Additionally, the Company owns certain assets in the United Kingdom. At June 30, 2019, the Company's reportable segments were based on the Company's method of internal reporting and were 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
 
Six Months Ended
 
 
 
June 30, 2019
 
June 30, 2018
 
June 30, 2019
 
June 30, 2018
Revenue
 
 
 
 
 
 
 
 
 
Carolinas/Richmond
 
$
20,666

 
$
19,513

 
$
40,752

 
$
39,306

 
Chicago/Minneapolis
 
17,404

 
16,622

 
34,819

 
33,139

 
Cincinnati/Columbus/Indianapolis
 
4,689

 
4,547

 
9,030

 
9,369

 
Dallas
 
5,782

 
4,678

 
11,299

 
8,763

 
Florida
 
16,064

 
15,862

 
32,347

 
31,270

 
Houston
 
16,638

 
16,091

 
32,729

 
31,954

 
Lehigh/Central PA
 
39,503

 
38,525

 
79,710

 
76,610

 
Philadelphia
 
10,925

 
10,717

 
22,263

 
23,061

 
Southern California
 
10,600

 
7,516

 
20,150

 
14,311

 
United Kingdom
 
5,959

 
3,783

 
11,957

 
8,056

 
Other
 
23,398

 
31,629

 
46,949

 
65,734

Segment-level revenue
 
171,628

 
169,483

 
342,005

 
341,573

 
 
 
 
 
 
 
 
 
 
 Reconciliation to total revenue
 
 
 
 
 
 
 
 
 
 Development service fee income
 
978

 
19,824

 
1,842

 
46,176

 
 Discontinued operations
 
(11,318
)
 
(23,085
)
 
(25,095
)
 
(49,702
)
 
 Other
 
49

 
(291
)
 
(178
)
 
(389
)
 Total revenue
 
$
161,337

 
$
165,931

 
$
318,574

 
$
337,658

 
 
 
 
 
 
 
 
 
 
Net operating income
 
 
 
 
 
 
 
 
 
 
Carolinas/Richmond
 
$
14,836

 
$
13,930

 
$
29,281

 
$
27,820

 
Chicago/Minneapolis
 
10,831

 
9,700

 
21,144

 
19,313

 
Cincinnati/Columbus/Indianapolis
 
3,052

 
3,040

 
5,819

 
6,277

 
Dallas
 
3,731

 
2,888

 
7,268

 
5,353

 
Florida
 
10,752

 
10,528

 
22,161

 
21,096

 
Houston
 
9,394

 
8,756

 
18,193

 
18,066

 
Lehigh/Central PA
 
28,278

 
27,576

 
56,818

 
54,604

 
Philadelphia
 
8,694

 
7,921

 
17,219

 
16,826

 
Southern California
 
7,248

 
5,765

 
14,680

 
10,848

 
United Kingdom
 
4,942

 
2,311

 
8,237

 
5,495

 
Other
 
15,176

 
21,267

 
29,495

 
43,559

Net operating income
 
116,934

 
113,682

 
230,315

 
229,257

 
 
 
 
 
 
 
 
 
 
 Reconciliation to income from continuing operations
 
 
 
 
 
 
 
 
 
Interest expense (1)
 
(25,872
)
 
(23,202
)
 
(52,077
)
 
(46,661
)
 
Development service fee income
 
978

 
19,824

 
1,842

 
46,176

 
Development service fee expense
 
(847
)
 
(79,808
)
 
(1,680
)
 
(107,875
)
 
Depreciation/amortization expense (1) (2)
 
(31,778
)
 
(31,932
)
 
(65,363
)
 
(65,340
)
 
Impairment charges - real estate assets
 
—

 
(26,000
)
 
(99
)
 
(26,000
)
 
Gain on property dispositions
 
5,462

 
48,584

 
5,957

 
52,742

 
Equity in earnings of unconsolidated joint ventures
 
2,181

 
7,428

 
9,190

 
14,192

 
General and administrative expense (1) (2)
 
(9,563
)
 
(8,302
)
 
(25,304
)
 
(23,054
)
 
Leasing cost
 
(3,318
)
 
(2,767
)
 
(6,526
)
 
(5,579
)
 
Other operating expenses (2)
 
(3,256
)
 
(1,577
)
 
(5,524
)
 
(4,079
)
 
Discontinued operations excluding gain and impairment on property dispositions
 
580

 
(12,952
)
 
(6,034
)
 
(25,448
)
 
Income taxes (1) (2)
 
(5
)
 
6

 
(5
)
 
18

 
Other
 
2,600

 
5,194

 
9,626

 
11,046

Income from continuing operations
 
$
54,096

 
$
8,178

 
$
94,318

 
$
49,395



(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 June 30, 2019 and December 31, 2018 is as follows (in thousands):

 
June 30, 2019
 
December 31, 2018
Carolinas/Richmond
$
524,408

 
$
525,041

Chicago/Minnesota
584,471

 
591,792

Cincinnati/Columbus/Indianapolis
133,848

 
131,400

Dallas
305,282

 
261,538

Florida
546,815

 
547,232

Houston
605,443

 
568,756

Lehigh/Central PA
1,205,634

 
1,210,220

Philadelphia
624,370

 
624,373

Southern California
713,262

 
660,688

United Kingdom
405,707

 
463,162

Other
1,165,094

 
1,153,518

Segment-level total assets
6,814,334

 
6,737,720

Corporate Other
67,925

 
196,674

Total assets
$
6,882,259

 
$
6,934,394