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SEGMENT INFORMATION | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
SEGMENT INFORMATION | 13. SEGMENT INFORMATION As of September 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: |  |  |
| September 30, 2025 |  | December 31, 2024
Philadelphia CBD | $ | 1,585,703 |  |  | $ | 1,556,696 |
Pennsylvania Suburbs | 885,079 |  |  | 869,179 |
Austin, Texas | 513,661 |  |  | 671,150 |
Total Core Segments | 2,984,443 |  |  | 3,097,025 |
Other | 280,967 |  |  | 277,755 |
Operating properties | $ | 3,265,410 |  |  | $ | 3,374,780 |
Total | $ | 3,265,410 |  |  | $ | 3,374,780 |
Corporate |  |  |
Right of use asset - operating leases, net | $ | 17,957 |  |  | $ | 18,412 |
Construction-in-progress | $ | 94,635 |  |  | $ | 94,628 |
Land held for development | $ | 73,395 |  |  | $ | 81,318 |
Prepaid leasehold interests in land held for development, net | $ | 27,762 |  |  | $ | 27,762 |
Net operating income:
| Three Months Ended September 30,
| 2025 |  | 2024
| Total revenue |  | Operating expenses (a) |  | Net operating income |  | Total revenue |  | Operating expenses (a) |  | Net operating income
Philadelphia CBD | $ | 58,250 |  |  | $ | (21,975) |  |  | $ | 36,275 |  |  | $ | 56,448 |  |  | $ | (19,959) |  |  | $ | 36,489 |
Pennsylvania Suburbs | 31,563 |  |  | (9,518) |  |  | 22,045 |  |  | 31,681 |  |  | (10,081) |  |  | 21,600 |
Austin, Texas | 16,837 |  |  | (6,542) |  |  | 10,295 |  |  | 21,951 |  |  | (8,429) |  |  | 13,522 |
Other | 10,091 |  |  | (4,257) |  |  | 5,834 |  |  | 10,430 |  |  | (5,076) |  |  | 5,354 |
Corporate | 4,676 |  |  | (3,117) |  |  | 1,559 |  |  | 11,272 |  |  | (2,734) |  |  | 8,538 |
Operating properties | $ | 121,417 |  |  | $ | (45,409) |  |  | $ | 76,008 |  |  | $ | 131,782 |  |  | $ | (46,279) |  |  | $ | 85,503 |
| Nine Months Ended September 30,
| 2025 |  | 2024
| Total revenue |  | Operating expenses (a) |  | Net operating income |  | Total revenue |  | Operating expenses (a) |  | Net operating income
Philadelphia CBD | $ | 170,321 |  |  | $ | (62,978) |  |  | $ | 107,343 |  |  | $ | 169,159 |  |  | $ | (58,912) |  |  | $ | 110,247 |
Pennsylvania Suburbs | 94,804 |  |  | (29,536) |  |  | 65,268 |  |  | 95,366 |  |  | (29,337) |  |  | 66,029 |
Austin, Texas | 53,487 |  |  | (22,094) |  |  | 31,393 |  |  | 67,360 |  |  | (26,276) |  |  | 41,084 |
Other | 30,609 |  |  | (13,861) |  |  | 16,748 |  |  | 31,706 |  |  | (15,670) |  |  | 16,036 |
Corporate | 14,283 |  |  | (9,887) |  |  | 4,396 |  |  | 20,021 |  |  | (9,812) |  |  | 10,209 |
Operating properties | $ | 363,504 |  |  | $ | (138,356) |  |  | $ | 225,148 |  |  | $ | 383,612 |  |  | $ | (140,007) |  |  | $ | 243,605 |
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 of |  | Three Months Ended September 30, |  | Nine Months Ended September 30,
| September 30, 2025 |  | December 31, 2024 |  | 2025 |  | 2024 |  | 2025 |  | 2024
Philadelphia CBD | $ | 492,224 |  |  | $ | 452,334 |  |  | $ | (10,325) |  |  | $ | (125,593) |  |  | $ | (22,184) |  |  | $ | (145,429) |
Mid-Atlantic Office JV | 10,951 |  |  | 10,844 |  |  | (168) |  |  | 7,222 |  |  | 107 |  |  | 7,222 |
MAP Venture | — |  |  | — |  |  | — |  |  | 10 |  |  | — |  |  | (6,552) |
Austin, Texas | 74,101 |  |  | 90,495 |  |  | (7,510) |  |  | (586) |  |  | (20,908) |  |  | (590) |
Other | 16,927 |  |  | 16,782 |  |  | (180) |  |  | (6,915) |  |  | (541) |  |  | (8,608) |
Total | $ | 594,203 |  |  | $ | 570,455 |  |  | $ | (18,183) |  |  | $ | (125,862) |  |  | $ | (43,526) |  |  | $ | (153,957) |
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 September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Net loss | $ | (25,998) |  |  | $ | (165,720) |  |  | $ | (141,990) |  |  | $ | (151,867) |
Plus: |  |  |  |  |  |  |
Interest expense | 32,914 |  |  | 30,561 |  |  | 97,104 |  |  | 85,104 |
Interest expense - amortization of deferred financing costs | 1,336 |  |  | 1,247 |  |  | 3,763 |  |  | 3,753 |
Depreciation and amortization | 43,005 |  |  | 44,301 |  |  | 131,120 |  |  | 133,530 |
General and administrative expenses | 7,841 |  |  | 12,681 |  |  | 34,636 |  |  | 32,726 |
Equity in loss of unconsolidated real estate ventures | 18,183 |  |  | 125,862 |  |  | 43,526 |  |  | 153,957 |
Provision for impairment | — |  |  | 37,980 |  |  | 63,369 |  |  | 44,407 |
Gain on early extinguishment of debt | — |  |  | — |  |  | — |  |  | (941) |
Less: |  |  |  |  |  |  |
Interest and investment income | 1,238 |  |  | 639 |  |  | 3,274 |  |  | 2,572 |
Income tax provision | — |  |  | — |  |  | (85) |  |  | (11) |
Net gain on disposition of real estate | 35 |  |  | — |  |  | 3,008 |  |  | — |
Net gain on real estate venture transactions | — |  |  | 770 |  |  | 183 |  |  | 54,503 |
Consolidated net operating income | $ | 76,008 |  |  | $ | 85,503 |  |  | $ | 225,148 |  |  | $ | 243,605 |

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- Definition The entire disclosure for reporting segments including data and tables. 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