v3.26.1
Segment Information
6 Months Ended
Jun. 30, 2026
Segment Information  
Segment Information

8.  Segment Information

The Company is a REIT focused on real estate investments primarily in the office market and currently operates in one segment: real estate operations. Each of the Company’s properties qualify as an operating segment but are aggregated together because they exhibit similar economic characteristics and operating similarities.

The chief operating decision maker (“CODM”) of the Company is the Company’s Chief Executive Officer. The CODM measures the performance and profit or loss for the Company’s reportable segment using a measure referred to as Segment Net Operating Income (“Segment NOI”). The CODM utilizes Segment NOI when considering the deployment of the Company’s capital resources on a property-by-property basis. The significant expense categories which the Company’s CODM examines when measuring the segment’s performance include real estate operating expenses and real estate taxes and insurance. Asset information by segment is not reported because the Company does not use this measure to assess performance. The total assets of the Company’s reportable segment can be found on the Company’s consolidated balance sheets.

Segment NOI is a non-GAAP financial measure that the Company defines as net income or loss (the most directly comparable GAAP financial measure) plus selling, general and administrative expenses, depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges, interest expense, less equity in earnings of nonconsolidated REITs, interest income, hedge ineffectiveness, gains or losses on the sale of assets and excludes income taxes. Segment NOI, as defined by the Company, may not be comparable to NOI reported by other REITs that define NOI differently. Segment NOI should not be considered an alternative to net income or loss as an indication of our performance or to cash flows as a measure of the Company’s liquidity or its ability to make distributions.

The calculations of Segment NOI are shown in the following table:

Three Months Ended

Six Months Ended

Three Months Ended

Six Months Ended

(in thousands)

 

 

June 30, 2026

 

June 30, 2026

 

June 30, 2025

 

June 30, 2025

Total consolidated revenues

$

26,355

$

52,580

$

26,715

$

53,822

Reconciling items:

Amortization of above/below market leases

 

(1)

(1)

 

Less:

Real estate operating expenses

10,006

20,296

10,701

20,796

Real estate taxes and insurance

4,550

8,793

4,191

9,560

Segment NOI

$

11,798

$

23,490

 

$

11,823

 

$

23,466

Three Months Ended

Six Months Ended

Three Months Ended

Six Months Ended

Reconciliation to Net loss

June 30, 2026

June 30, 2026

June 30, 2025

June 30, 2025

Net loss

 

$

(16,605)

 

$

(26,132)

 

$

(7,876)

 

$

(29,311)

Add (deduct):

Loss on extinguishment of debt

1,267

3

5

(Gain) loss on sale of properties and impairment of assets held for sale, net

 

7,691

 

7,691

 

(384)

 

12,900

Depreciation and amortization

 

10,432

 

21,012

 

10,626

 

21,450

Amortization of above/below market leases

 

(1)

 

(1)

 

 

General and administrative

 

2,401

 

5,070

 

3,281

 

6,765

Interest expense

 

7,987

 

14,799

 

6,339

 

12,030

Interest income

 

(157)

 

(320)

 

(248)

 

(507)

Tax expense

50

104

82

 

134

Segment NOI

 

$

11,798

 

$

23,490

 

$

11,823

 

$

23,466