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Segment Information (Tables) | 6 Months Ended
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Jun. 30, 2020
Segment Reporting [Abstract] |
Real Estate Investments, Net Operating Income and Unconsolidated Real Estate Ventures of Reportable Segments | The following tables provide selected asset information and results of operations of the Company's reportable segments (in thousands):
Real estate investments, at cost: |  |  |
| June 30, 2020 |  | December 31, 2019
Philadelphia CBD (a) | $ | 1,384,550 |  |  | $ | 1,726,299 |
Pennsylvania Suburbs | 987,069 |  |  | 1,003,890 |
Austin, Texas | 722,710 |  |  | 721,255 |
Metropolitan Washington, D.C. | 469,091 |  |  | 468,035 |
Other | 87,101 |  |  | 86,980 |
| $ | 3,650,521 |  |  | $ | 4,006,459 |
Assets held for sale (a) | 327,286 |  |  | — |
Operating Properties | $ | 3,977,807 |  |  | $ | 4,006,459 |
Right of use asset - operating leases, net | $ | 21,315 |  |  | $ | 21,656 |
Corporate |  |  |
Construction-in-progress | $ | 235,475 |  |  | $ | 180,718 |
Land held for development (b) | $ | 112,420 |  |  | $ | 96,124 |
Prepaid leasehold interests in land held for development, net (c) | $ | 39,389 |  |  | $ | 39,592 |
(a) | As of June 30, 2020, two properties in the Philadelphia CBD segment were classified as held for sale. See Note 3, “Real Estate Investments,” for further information.
(b) | Does not include 35.2 acres of land classified as held for sale as of June 30, 2020 and December 31, 2019.
(c) | Includes leasehold interests in prepaid 99-year ground leases at 3025 and 3001-3003 JFK Boulevard, in Philadelphia, Pennsylvania as of June 30, 2020 and December 31, 2019.
Net operating income:
| Three Months Ended June 30,
| 2020 |  | 2019
| Total revenue |  | Operating expenses (a) |  | Net operating income (loss) |  | Total revenue |  | Operating expenses (a) |  | Net operating income
Philadelphia CBD | $ | 62,648 |  |  | $ | (22,895 | ) |  | $ | 39,753 |  |  | $ | 64,956 |  |  | $ | (25,353 | ) |  | $ | 39,603 |
Pennsylvania Suburbs | 34,683 |  |  | (11,161 | ) |  | 23,522 |  |  | 34,299 |  |  | (11,808 | ) |  | 22,491 |
Austin, Texas | 25,012 |  |  | (9,943 | ) |  | 15,069 |  |  | 26,188 |  |  | (9,804 | ) |  | 16,384 |
Metropolitan Washington, D.C. | 10,091 |  |  | (4,930 | ) |  | 5,161 |  |  | 13,673 |  |  | (6,339 | ) |  | 7,334 |
Other | 3,381 |  |  | (2,367 | ) |  | 1,014 |  |  | 3,464 |  |  | (2,390 | ) |  | 1,074 |
Corporate | 1,022 |  |  | (1,186 | ) |  | (164 | ) |  | 1,571 |  |  | (1,528 | ) |  | 43 |
Operating properties | $ | 136,837 |  |  | $ | (52,482 | ) |  | $ | 84,355 |  |  | $ | 144,151 |  |  | $ | (57,222 | ) |  | $ | 86,929 |
| Six Months Ended June 30,
| 2020 |  | 2019
| Total revenue |  | Operating expenses (a) |  | Net operating income (loss) |  | Total revenue |  | Operating expenses (a) |  | Net operating income (loss)
Philadelphia CBD | $ | 128,563 |  |  | $ | (47,093 | ) |  | $ | 81,470 |  |  | $ | 130,754 |  |  | $ | (50,538 | ) |  | 80,216 |
Pennsylvania Suburbs | 71,920 |  |  | (23,839 | ) |  | 48,081 |  |  | 69,926 |  |  | (24,799 | ) |  | 45,127 |
Austin, Texas | 51,593 |  |  | (20,088 | ) |  | 31,505 |  |  | 50,954 |  |  | (18,880 | ) |  | 32,074 |
Metropolitan Washington, D.C. | 20,845 |  |  | (10,442 | ) |  | 10,403 |  |  | 27,193 |  |  | (12,543 | ) |  | 14,650 |
Other | 7,033 |  |  | (5,060 | ) |  | 1,973 |  |  | 6,646 |  |  | (4,535 | ) |  | 2,111 |
Corporate | 1,971 |  |  | (2,870 | ) |  | (899 | ) |  | 2,574 |  |  | (3,327 | ) |  | (753 | )
Operating properties | $ | 281,925 |  |  | $ | (109,392 | ) |  | $ | 172,533 |  |  | $ | 288,047 |  |  | $ | (114,622 | ) |  | $ | 173,425 |
(a) | 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 venture
| As of |  | Three Months Ended June 30, |  | Six Months Ended June 30,
| June 30, 2020 |  | December 31, 2019 |  | 2020 |  | 2019 |  | 2020 |  | 2019
Philadelphia CBD | $ | 16,611 |  |  | $ | 17,524 |  |  | $ | 83 |  |  | $ | 84 |  |  | $ | 161 |  |  | $ | 162 |
Metropolitan Washington, D.C. | 101,947 |  |  | 102,840 |  |  | (647 | ) |  | (260 | ) |  | (1,096 | ) |  | (435 | )
MAP Venture (a) | (5,503 | ) |  | (70 | ) |  | (1,639 | ) |  | (1,445 | ) |  | (3,159 | ) |  | (2,812 | )
Other | — |  |  | — |  |  | — |  |  | 130 |  |  | — |  |  | 236 |
Total | $ | 113,055 |  |  | $ | 120,294 |  |  | $ | (2,203 | ) |  | $ | (1,491 | ) |  | $ | (4,094 | ) |  | $ | (2,849 | )
(a) Included in Other liabilities on the consolidated balance sheets.
Reconciliation of Consolidated Net Income to Consolidated NOI | The following is a reconciliation of consolidated net income, as defined by GAAP, to consolidated NOI, (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Net income | $ | 4,020 |  |  | $ | 6,252 |  |  | $ | 12,107 |  |  | $ | 10,835 |
Plus: |  |  |  |  |  |  |
Interest expense | 20,191 |  |  | 20,516 |  |  | 40,200 |  |  | 40,873 |
Interest expense - amortization of deferred financing costs | 731 |  |  | 666 |  |  | 1,480 |  |  | 1,332 |
Depreciation and amortization | 49,743 |  |  | 51,667 |  |  | 101,781 |  |  | 103,111 |
General and administrative expenses | 8,343 |  |  | 8,399 |  |  | 16,904 |  |  | 18,243 |
Equity in loss of Real Estate Ventures | 2,203 |  |  | 1,491 |  |  | 4,094 |  |  | 2,849 |
Less: |  |  |  |  |  |  |
Interest income | 445 |  |  | 553 |  |  | 1,020 |  |  | 1,078 |
Income tax (provision) benefit | 230 |  |  | (17 | ) |  | 226 |  |  | (46 | )
Net gain on disposition of real estate | — |  |  | — |  |  | 2,586 |  |  | — |
Net gain on sale of undepreciated real estate | 201 |  |  | 250 |  |  | 201 |  |  | 1,251 |
Net gain on real estate venture transactions | — |  |  | 1,276 |  |  | — |  |  | 1,535 |
Consolidated net operating income | $ | 84,355 |  |  | $ | 86,929 |  |  | $ | 172,533 |  |  | $ | 173,425 |

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- Definition Tabular disclosure of the reconciliation of profit (loss) from reportable segments to the consolidated income (loss) before income tax expense (benefit) and discontinued operations. Includes, but is not limited to, reconciliation after income tax if income tax is allocated to the reportable segment. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599 + Details
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