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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION
13. SEGMENT INFORMATION
As of June 30, 2025, the Company owned and managed 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:
June 30, 2025December 31, 2024
Philadelphia CBD$1,580,520 $1,556,696 
Pennsylvania Suburbs882,593 869,179 
Austin, Texas515,024 671,150 
Total Core Segments2,978,137 3,097,025 
Other282,360 277,755 
Operating properties
$3,260,497 $3,374,780 
Assets held for sale
58,801 — 
Total
$3,319,298 $3,374,780 
Corporate
Right of use asset - operating leases, net$18,108 $18,412 
Construction-in-progress$90,950 $94,628 
Land held for development$74,541 $81,318 
Prepaid leasehold interests in land held for development, net$27,762 $27,762 
Net operating income:
Three Months Ended June 30,
20252024
Total revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating income
Philadelphia CBD$56,683 $(20,372)$36,311 $56,723 $(19,071)$37,652 
Pennsylvania Suburbs31,310 (9,963)21,347 31,666 (9,897)21,769 
Austin, Texas18,499 (7,785)10,714 22,154 (8,834)13,320 
Other9,995 (4,380)5,615 10,308 (5,132)5,176 
Corporate4,084 (2,856)1,228 4,495 (3,380)1,115 
Operating properties$120,571 $(45,356)$75,215 $125,346 $(46,314)$79,032 
Six Months Ended June 30,
20252024
Total revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating income
Philadelphia CBD$112,071 $(41,003)$71,068 $112,711 $(38,953)$73,758 
Pennsylvania Suburbs63,241 (20,018)43,223 63,685 (19,256)44,429 
Austin, Texas36,650 (15,552)21,098 45,409 (17,847)27,562 
Other20,518 (9,604)10,914 21,276 (10,594)10,682 
Corporate9,607 (6,770)2,837 8,749 (7,078)1,671 
Operating properties$242,087 $(92,947)$149,140 $251,830 $(93,728)$158,102 
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 June 30,Six Months Ended June 30,
June 30, 2025December 31, 20242025202420252024
Philadelphia CBD$453,070 $452,334 $(7,651)$(10,223)$(11,859)$(19,836)
Mid-Atlantic Office JV11,119 10,844 436 — 275 (1,693)
MAP Venture— — — (3,339)— (6,562)
Austin, Texas74,605 90,495 (7,510)(4)(13,398)(4)
Other16,747 16,782 (107)(941)(361)— 
Total$555,541 $570,455 $(14,832)$(14,507)$(25,343)$(28,095)
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 June 30,Six Months Ended June 30,
2025202420252024
Net income (loss)$(88,936)$30,267 $(115,992)$13,853 
Plus:
Interest expense32,345 29,494 64,190 54,543 
Interest expense - amortization of deferred financing costs1,197 1,415 2,427 2,506 
Depreciation and amortization43,762 44,187 88,115 89,229 
General and administrative expenses9,325 8,941 26,795 20,045 
Equity in loss of unconsolidated real estate ventures14,832 14,507 25,343 28,095 
Provision for impairment63,369 6,427 63,369 6,427 
Gain on early extinguishment of debt— (941)— (941)
Less:
Interest and investment income850 1,512 2,036 1,933 
Income tax provision(85)(9)(85)(11)
Net gain (loss) on disposition of real estate(86)— 2,973 — 
Net gain on real estate venture transactions— 53,762 183 53,733 
Consolidated net operating income$75,215 $79,032 $149,140 $158,102