XML 58 R33.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company’s reporting segments are based on the Company’s method of internal reporting, which classifies its operations into two reportable segments: (i) office properties and related operations and (ii) studio properties and related operations. The Company evaluates performance based upon net operating income of the segment operations. General and administrative expenses and interest expense are not included in segment profit as the Company’s internal reporting addresses these items on a corporate level.

The President, Chief Financial Officer and Chief Operating Officer are the Company’s CODM. They evaluate performance and allocate resources based on net operating income because it provides relevant and useful information by reflecting only income and operating expense items that are incurred at the segment level and presenting it on an unlevered basis.

Asset information by segment is not reported because the Company does not use this measure to assess performance or make decisions to allocate resources; therefore, depreciation and amortization expense is not allocated among segments. Segment assets consist of investment in real estate, non-real estate property, plant and equipment, net, accounts receivable, net, straight-line rents receivables, net, deferred leasing costs and intangible assets, net, operating lease right-of-use assets and goodwill. Non-segment assets consist of assets in the Company’s corporate non-segment assets, including cash and cash equivalents, restricted cash, prepaid expenses and other assets, net, investment in unconsolidated real estate entities and assets associated with real estate held for sale. Reportable segment asset information is not provided to the CODM as the CODM do not use segment asset information to evaluate the business and allocate resources.

The table below presents the operating activity of the Company’s reportable segments:
Year Ended December 31,
202420232022
Office segment
Core office revenues$679,049 $798,429 $836,374 
Core office expenses
Utilities(27,780)(26,214)(24,941)
Taxes(73,862)(77,672)(82,378)
Administrative(29,511)(30,251)(29,780)
Insurance(26,846)(26,408)(19,606)
Other segment expenses(1)
(134,423)(137,527)(135,637)
Total core office expenses(292,422)(298,072)(292,342)
Office net operating income386,627 500,357 544,032 
Studio segment
Studio revenues149,806 139,922 173,524 
Studio expenses
Rent expense & real estate taxes(34,263)(30,483)(16,644)
Cost of goods sold(25,419)(20,020)(24,051)
Other segment expenses(3)
(88,748)(87,944)(64,455)
Total studio expenses(148,430)(138,447)(105,150)
Studio net operating income1,376 1,475 68,374 
TOTAL SEGMENT PROFIT$388,003 $501,832 $612,406 
_________________
1.Includes ground lease rent, cleaning, parking, engineering, security, mechanical, electrical & plumbing and repairs & maintenance expenses.
2.Includes administrative, utilities, security, cleaning, engineering and repairs & maintenance expenses.
The table below presents the reconciliation of segment revenue to consolidated revenue:
Year Ended December 31,
202420232022
Office segment
Core office revenues$679,049 $798,429 $836,374 
Chargebacks13,227 13,946 16,326 
Total office revenues692,276 812,375 852,700 
Studio segment
Total studio revenues149,806 139,922 173,524 
Total revenues$842,082 $952,297 $1,026,224 

The table below reconciles net loss to total profit from all segments:
Year Ended December 31,
202420232022
NET LOSS$(381,406)$(170,700)$(16,517)
General and administrative79,451 74,958 79,501 
Depreciation and amortization354,425 397,846 373,219 
Loss (income) from unconsolidated real estate entities7,308 3,902 (943)
Fee income(5,269)(6,181)(7,972)
Interest expense177,393 214,415 149,901 
Interest income(2,467)(2,182)(2,340)
Management services reimbursement income—unconsolidated real estate entities(4,119)(4,125)(4,163)
Management services expense—unconsolidated real estate entities4,119 4,125 4,163 
Transaction-related expenses2,499 (1,150)14,356 
Unrealized loss on non-real estate investments3,958 3,120 1,440 
Loss (gain) on sale of real estate2,453 (103,202)2,164 
Impairment loss149,664 60,158 28,548 
Gain on extinguishment of debt— (10,000)— 
Other (income) loss(1,647)6 (8,951)
Loss on sale of bonds— 34,046 — 
Income tax provision$1,641 $6,796 $— 
TOTAL SEGMENT PROFIT$388,003 $501,832 $612,406