v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
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 (“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 rent 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 June 30,Six Months Ended June 30,
2026202520262025
Office segment
Core office revenues$149,887 $152,696 $295,750 $314,865 
Core office expenses
Utilities(6,435)(5,973)(12,521)(12,038)
Taxes(14,195)(16,244)(29,802)(33,217)
Administrative(7,263)(7,310)(14,665)(14,900)
Insurance(4,157)(5,548)(9,370)(12,212)
Other segment expenses(1)
(34,251)(33,289)(66,954)(65,232)
Total core office expenses(66,301)(68,364)(133,312)(137,599)
Office net operating income83,586 84,332 162,438 177,266 
Studio segment
Studio revenues35,177 34,169 68,355 67,417 
Studio expenses
Rent expense & real estate taxes(6,874)(8,699)(14,057)(22,460)
Cost of goods sold(7,443)(5,101)(13,448)(9,905)
Other segment expenses(2)
(19,822)(22,752)(38,343)(45,168)
Total studio expenses(34,139)(36,552)(65,848)(77,533)
Studio net operating income1,038 (2,383)2,507 (10,116)
TOTAL SEGMENT PROFIT$84,624 $81,949 $164,945 $167,150 
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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 June 30,Six Months Ended June 30,
2026202520262025
Office segment
Core office revenues$149,887 $152,696 $295,750 $314,865 
Chargebacks3,234 3,137 6,045 6,179 
Total office revenues153,121 155,833 301,795 321,044 
Studio segment
Total studio revenues35,177 34,169 68,355 67,417 
Total revenues$188,298 $190,002 $370,150 $388,461 
The table below reconciles net loss to total profit from all segments:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
NET LOSS$(104,688)$(87,760)$(155,592)$(168,038)
General and administrative12,002 27,776 24,577 46,259 
Depreciation and amortization82,133 94,751 162,855 187,836 
Loss from unconsolidated real estate entities959 205 1,396 1,459 
Fee income(964)(1,476)(2,071)(2,835)
Interest expense38,476 48,137 76,470 91,642 
Interest income(566)(2,123)(2,215)(2,558)
Management services reimbursement income—unconsolidated real estate entities(1,098)(1,123)(2,222)(2,098)
Management services expense—unconsolidated real estate entities1,098 1,123 2,222 2,098 
Transaction-related expenses682 451 783 451 
Unrealized loss (gain) on non-real estate investments840 (212)2,802 237 
Loss (gain) on sale of real estate, net— 16 — (10,007)
Impairment loss50,440 — 50,440 18,476 
Loss on extinguishment of debt— 1,637 — 3,495 
Loss on lease terminations and other4,916 93 4,758 85 
Income tax provision394 454 742 648 
TOTAL PROFIT FROM ALL SEGMENTS$84,624 $81,949 $164,945 $167,150