v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
The Company’s reporting segments are based on the Company’s method of internal reporting, which classifies its operations into two reportable segments: (i) office properties and related operations and (ii) studio properties and related operations. The Company evaluates performance based upon net operating income of the segment operations. General and administrative expenses and interest expense are not included in segment profit as the Company’s internal reporting addresses these items on a corporate level.

The President, Chief Financial Officer and Chief Operating Officer, collectively, are the Company’s Chief Operating Decision-Maker, or CODM. They evaluate performance and allocate resources based on net operating income because it provides relevant and useful information by reflecting only income and operating expense items that are incurred at the segment level and presenting it on an unlevered basis.

Asset information by segment is not reported because the Company does not use this measure to assess performance or make decisions to allocate resources; therefore, depreciation and amortization expense is not allocated among segments. Segment assets consist of investment in real estate, non-real estate property, plant and equipment, net, accounts receivable, net, straight-line rents receivables, net, deferred leasing costs and intangible assets, net, operating lease ROU assets and goodwill. Non-segment assets consist of assets in the Company’s corporate non-segment assets, including cash and cash equivalents, restricted cash, prepaid expenses and other assets, net, investment in unconsolidated real estate entities and assets associated with real estate held for sale. Reportable segment asset information is not provided to the CODM as the CODM do not use segment asset information to evaluate the business and allocate resources.
The table below presents the operating activity of the Company’s reportable segments:
Three Months Ended March 31,
20252024
Office segment
Core office revenues$162,168 $171,967 
Core office expenses
Utilities(6,065)(6,071)
Taxes(16,973)(18,575)
Administrative(7,590)(7,267)
Insurance(6,664)(6,426)
Other segment expenses(1)
(31,942)(31,500)
Total core office expenses(69,234)(69,839)
Office net operating income92,934 102,128 
Studio segment
Studio revenues33,248 38,948 
Studio expenses
Rent expense & real estate taxes(13,761)(8,369)
Cost of goods sold(4,804)(7,762)
Other segment expenses(2)
(22,416)(20,978)
Total studio expenses(40,981)(37,109)
Studio net operating income(7,733)1,839 
TOTAL SEGMENT PROFIT$85,201 $103,967 
_________________
1.Includes ground lease rent, cleaning, parking, engineering, security, mechanical, electrical & plumbing and repairs & maintenance expenses.
2.Includes administrative, utilities, security, cleaning, engineering and repairs & maintenance expenses.

The table below presents the reconciliation of segment revenue to consolidated revenue:
Three Months Ended March 31,
20252024
Office segment
Core office revenues$162,168 $171,967 
Chargebacks3,043 3,108 
Total office revenues165,211 175,075 
Studio segment
Total studio revenues33,248 38,948 
Total revenues$198,459 $214,023 
The table below reconciles net loss to total profit from all segments:
Three Months Ended March 31,
20252024
NET LOSS$(80,278)$(53,355)
General and administrative18,483 19,710 
Depreciation and amortization93,085 91,854 
Loss from unconsolidated real estate entities1,254 743 
Fee income(1,359)(1,125)
Interest expense43,505 44,089 
Interest income(435)(854)
Management services reimbursement income—unconsolidated real estate entities(975)(1,156)
Management services expense—unconsolidated real estate entities975 1,156 
Transaction-related expenses— 2,150 
Unrealized loss on non-real estate investments449 898 
Gain on sale of real estate, net(10,023)— 
Impairment loss18,476 — 
Loss on extinguishment of debt1,858 — 
Other income(8)(143)
Income tax provision194 — 
TOTAL PROFIT FROM ALL SEGMENTS$85,201 $103,967