XML 52 R22.htm IDEA: XBRL DOCUMENT v3.24.0.1
Segment Reporting
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
In the fourth quarter of 2022, the Company evolved the management strategy of its real estate portfolio to focus on three different property types in order to provide clarity to the value and operations associated with the assets within each group. As a result, the Company changed to three reportable segments: Industrial, Office, and Other. The Industrial segment consists of high-quality, well-located industrial properties with modern specifications. The Office segment includes newer, high-quality office properties. The Other segment consists of vacant and non-core properties, together with other properties in the same cross-collateralized loan pools. The Company recast its segment results for all prior periods presented to show the three reportable segments.
The Company evaluates performance of each segment based on segment net operating income (“NOI”), which is defined as property revenue less property expenses. The Company excludes the following from Segment NOI because they are addressed on a corporate level: (i) the Office Joint Venture, (ii) interest expense, and (iii) general and administrative expenses. Segment NOI is not a measure of operating income or cash flows from operating activities is not indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate segment profit measures in the same manner. The Company considers segment NOI to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of our properties.
The following table presents segment NOI for the years ended December 31, 2023, 2022, and 2021 is as follows:
Year Ended December 31,
202320222021
Industrial NOI
Total Industrial revenues$57,304 $61,347 $59,320 
Industrial operating expenses(7,655)(7,870)(7,195)
Industrial NOI49,649 53,477 52,125 
Office NOI
Total Office revenues142,734 297,110 340,265 
Office operating expenses(24,295)(66,143)(80,010)
Office NOI118,439 230,967 260,255 
Other NOI
Total Other revenues54,246 58,029 60,288 
Other operating expenses(20,476)(19,252)(19,369)
Other NOI33,770 38,777 40,919 
Total NOI$201,858 $323,221 $353,299 
A reconciliation of net (loss) income to total NOI for the years ended December 31, 2023, 2022, and 2021 is as follows:
Year Ended December 31,
202320222021
Reconciliation of Net (Loss) Income to Total NOI
Net (loss) income$(605,102)$(441,382)$11,570 
General and administrative expenses42,962 38,995 39,051 
Corporate operating expenses to affiliates1,154 1,349 2,520 
Impairment provision, real estate409,512 127,577 4,242 
Impairment provision, goodwill16,031 135,270 — 
Depreciation and amortization112,204 190,745 209,638 
Interest expense65,623 84,816 85,087 
Debt breakage costs— 13,249 — 
Other loss (income), net(13,111)943 (93)
Loss (income) from investment in unconsolidated entities176,767 9,993 (8)
Loss (gain) from disposition of assets(29,164)139,280 326 
Transaction expense24,982 22,386 966 
Total NOI$201,858 $323,221 $353,299 
The following table presents the Company’s goodwill for each of the segments as of December 31, 2023 and 2022:
Year Ended December 31,
20232022
Goodwill
Industrial$68,373 $68,373 
Office— — 
Other10,274 26,305 
Total Goodwill$78,647 $94,678 
The following table presents the Company’s total real estate assets, net, which includes accumulated depreciation and amortization and excludes intangibles, for each segment as of December 31, 2023 and 2022:
Year Ended December 31,
20232022
Industrial Real Estate, net
Total real estate$741,737 $761,757 
Accumulated depreciation and amortization(152,353)(137,738)
Industrial real estate, net589,384 624,019 
Office Real Estate, net
Total real estate1,505,959 2,020,463 
Accumulated depreciation and amortization(286,136)(305,829)
Office real estate, net1,219,823 1,714,634 
Other Real Estate, net
Total real estate362,415 715,036 
Accumulated depreciation and amortization(112,063)(201,072)
Other real estate, net250,352 513,964 
Total Real Estate, net$2,059,559 $2,852,617 
Total Real Estate Held for Sale, net
Total real estate$64,289 $26,902 
Accumulated depreciation and amortization(14,636)(7,494)
Real estate held for sale, net$49,653 $19,408 
Total asset information by segment is not reported because the Company does not use this measure to assess performance or to make resource allocation decisions.