v3.25.2
Reportable Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
REPORTABLE SEGMENTS REPORTABLE SEGMENTS
The Company's segments are based on the method of internal reporting with operating segments being each of the operating office properties. These operating segments are aggregated for reporting by geographical area, with these geographical regions being: Austin, Atlanta, Charlotte, Dallas, Phoenix, Tampa, and other markets. Included in other markets for the periods presented are properties located in Houston and Nashville.
Company management evaluates the performance of its operating segments in part based on Net Operating Income ("NOI"). Office Property NOI is regularly reported to the Chief Operating Decision Maker ("CODM") by operating segment. The CODM is the Company's President and Chief Executive Officer. Each segment includes both consolidated operations and the Company's share of unconsolidated joint venture operations.
Segment net income, individually significant components of rental property operating expenses, amount of capital expenditures, and total assets are not presented in this note because the CODM does not utilize these measures when analyzing segments or when making resource allocation decisions. The below presentation has been recast for all years presented to comply with updates to ASC 280 required by Accounting Standards Update 2023-07 "ASU 2023-07," "Segment Reporting" issued by the Financial Accounting Standards Board in November 2023. Information on the Company's segments along with a reconciliation of NOI to net income for the three and six months ended June 30, 2025 and 2024 are as follows ($ in thousands):
Three Months Ended June 30, 2025Rental Property RevenuesRental Property Operating ExpensesNOI
Austin$86,828 $26,116 $60,712 
Atlanta79,128 27,077 52,051 
Charlotte22,691 5,759 16,932 
Tampa20,037 6,828 13,209 
Phoenix16,212 4,302 11,910 
Dallas4,609 968 3,641 
Other10,442 3,958 6,484 
Segment Totals$239,947 $75,008 $164,939 
Other Non - Office Properties3,432 1,670 1,762 
Portfolio Totals$243,379 $76,678 $166,701 
Less: Company's share from unconsolidated joint ventures$(5,664)$(2,499)
Consolidated Totals$237,715 $74,179 
Three Months Ended June 30, 2024Rental Property RevenuesRental Property Operating ExpensesNOI
Atlanta$75,904 $26,189 $49,715 
Austin73,602 25,568 48,034 
Tampa19,560 7,223 12,337 
Phoenix14,832 3,958 10,874 
Charlotte13,819 4,036 9,783 
Dallas4,330 920 3,410 
Other8,400 2,714 5,686 
Segment Totals$210,447 $70,608 $139,839 
Other Non - Office Properties$2,268 $792 $1,476 
Portfolio Totals$212,715 $71,400 $141,315 
Less: Company's share from unconsolidated joint ventures$(2,327)$(766)
Termination Fees1,086 — 
Consolidated Totals$211,474 $70,634 

Six Months Ended June 30, 2025Rental Property RevenuesRental Property Operating ExpensesNOI
Austin$173,965 $53,415 $120,550 
Atlanta160,738 56,617 104,121 
Charlotte45,109 11,345 33,764 
Tampa40,596 14,211 26,385 
Phoenix32,237 8,235 24,002 
Dallas9,165 1,906 7,259 
Other19,866 7,179 12,687 
Segment Totals$481,676 $152,908 $328,768 
Other Non - Office Properties6,398 3,237 3,161 
Portfolio Totals$488,074 $156,145 $331,929 
Less: Company's share from unconsolidated joint ventures$(10,198)$(4,810)
Termination Fees2,866 — 
Consolidated Totals$480,742 $151,335 
Six Months Ended June 30, 2024Rental Property RevenuesRental Property Operating ExpensesNOI
Atlanta$152,343 $53,470 $98,873 
Austin144,608 50,804 93,804 
Tampa38,890 14,608 24,282 
Phoenix29,434 7,449 21,985 
Charlotte28,202 8,053 20,149 
Dallas8,769 1,900 6,869 
Other16,694 5,512 11,182 
Segment Totals$418,940 $141,796 $277,144 
Other Non - Office Properties$4,392 $1,596 $2,796 
Portfolio Totals$423,332 $143,392 $279,940 
Less: Company's share from unconsolidated joint ventures$(4,596)$(1,683)
Termination Fees1,556 — 
Consolidated Totals$420,292 $141,709 

The following reconciles Net Operating Income from net income for each of the periods presented ($ in thousands):
Three Months Ended June 30,Six Months Ended June 30,
 2025202420252024
Net Income$14,658 $7,961 $35,751 $21,412 
Fee income(494)(406)(990)(785)
Termination fee income— (1,086)(2,866)(1,556)
Other income(1,919)(1,098)(8,724)(1,142)
General and administrative expenses9,738 8,907 20,447 18,121 
Interest expense38,514 29,743 75,288 58,651 
Depreciation and amortization100,890 95,415 203,004 181,645 
Reimbursed expenses119 151 296 291 
Other expenses443 603 865 1,275 
Loss (income) from unconsolidated joint ventures1,587 (439)3,470 (787)
Net operating income from unconsolidated joint ventures3,165 1,561 5,388 2,913 
Gain (loss) on investment property transactions— 3 — (98)
Net Operating Income$166,701 $141,315 $331,929 $279,940