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SEGMENT INFORMATION
 9 Months Ended
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, 2025December 31, 2024
Philadelphia CBD$1,585,703 $1,556,696 
Pennsylvania Suburbs885,079 869,179 
Austin, Texas513,661 671,150 
Total Core Segments2,984,443 3,097,025 
Other280,967 277,755 
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,
20252024
Total revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating income
Philadelphia CBD$58,250 $(21,975)$36,275 $56,448 $(19,959)$36,489 
Pennsylvania Suburbs31,563 (9,518)22,045 31,681 (10,081)21,600 
Austin, Texas16,837 (6,542)10,295 21,951 (8,429)13,522 
Other10,091 (4,257)5,834 10,430 (5,076)5,354 
Corporate4,676 (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,
20252024
Total revenueOperating expenses (a)Net operating incomeTotal revenueOperating expenses (a)Net operating income
Philadelphia CBD$170,321 $(62,978)$107,343 $169,159 $(58,912)$110,247 
Pennsylvania Suburbs94,804 (29,536)65,268 95,366 (29,337)66,029 
Austin, Texas53,487 (22,094)31,393 67,360 (26,276)41,084 
Other30,609 (13,861)16,748 31,706 (15,670)16,036 
Corporate14,283 (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 ofThree Months Ended September 30,Nine Months Ended September 30,
September 30, 2025December 31, 20242025202420252024
Philadelphia CBD$492,224 $452,334 $(10,325)$(125,593)$(22,184)$(145,429)
Mid-Atlantic Office JV10,951 10,844 (168)7,222 107 7,222 
MAP Venture— — — 10 — (6,552)
Austin, Texas74,101 90,495 (7,510)(586)(20,908)(590)
Other16,927 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,
2025202420252024
Net loss$(25,998)$(165,720)$(141,990)$(151,867)
Plus:
Interest expense32,914 30,561 97,104 85,104 
Interest expense - amortization of deferred financing costs1,336 1,247 3,763 3,753 
Depreciation and amortization43,005 44,301 131,120 133,530 
General and administrative expenses7,841 12,681 34,636 32,726 
Equity in loss of unconsolidated real estate ventures18,183 125,862 43,526 153,957 
Provision for impairment— 37,980 63,369 44,407 
Gain on early extinguishment of debt— — — (941)
Less:
Interest and investment income1,238 639 3,274 2,572 
Income tax provision— — (85)(11)
Net gain on disposition of real estate35 — 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