Segment Information | 16. We review operating and financial data for each property on an individual basis; therefore, each of our individual properties is a separate operating segment. We define our reportable segments to be aligned with our method of internal reporting and the way our Chief Executive Officer, who is also our Chief Operating Decision Maker ("CODM"), makes key operating decisions, evaluates financial results, allocates resources and manages our business. Accordingly, we aggregate our operating segments into three reportable segments (commercial, multifamily, and third-party asset management and real estate services) based on the economic characteristics and nature of our assets and services. To conform to the current period presentation, we have reclassified the prior period segment financial data for 1700 M Street, for which we are the ground lessor, that had been classified as part of the commercial segment to other to better align with our internal reporting. The CODM measures and evaluates the performance of our operating segments, with the exception of the third-party asset management and real estate services business, based on the net operating income ("NOI") of properties within each segment. NOI includes property rental revenue and parking revenue, and deducts property operating expenses and real estate taxes. With respect to the third-party asset management and real estate services business, the CODM reviews revenue streams generated by this segment ("Third-party real estate services, including reimbursements"), as well as the expenses attributable to the segment ("General and administrative: third-party real estate services"), which are both disclosed separately in our statements of operations. The following represents the components of revenue from our third-party asset management and real estate services business: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Property management fees $ 4,976 $ 4,776 $ 9,784 $ 9,718 Asset management fees 1,513 2,229 3,284 4,457 Development fees (1) 2,148 4,392 5,687 18,642 Leasing fees 1,038 1,424 2,877 2,284 Construction management fees 37 234 187 406 Other service revenue 1,499 1,790 2,315 3,488 Third-party real estate services revenue, excluding reimbursements 11,211 14,845 24,134 38,995 Reimbursement revenue (2) 10,946 11,900 21,993 25,857 Third-party real estate services revenue, including reimbursements 22,157 26,745 46,127 64,852 Third-party real estate services expenses 24,143 25,557 51,192 54,493 Third-party real estate services revenue less expenses $ (1,986) $ 1,188 $ (5,065) $ 10,359 (1) As of June 30, 2022, we had estimated unrecognized development fee revenue totaling $43.2 million, of which $7.1 million, $12.3 million and $6.6 million is expected to be recognized during the remainder of 2022 , 2023 and 2024 , and $17.2 million is expected to be recognized thereafter through 2027 as unsatisfied performance obligations are completed. (2) Represents reimbursement of expenses incurred by us on behalf of third parties, including allocated payroll costs and amounts paid to third-party contractors for construction management projects. Management company assets primarily consist of management and leasing contracts with a net book value of $16.7 million and $19.6 million as of June 30, 2022 and December 31, 2021, which are classified in "Intangible assets, net" in our balance sheets. Consistent with internal reporting presented to our CODM and our definition of NOI, the third-party asset management and real estate services operating results are excluded from the NOI data below. The following is the reconciliation of net income (loss) attributable to common shareholders to consolidated NOI: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 X 2022 2021 (In thousands) Net income (loss) attributable to common shareholders $ 123,275 $ (2,973) $ 123,243 $ (23,704) Add: Depreciation and amortization expense 49,479 56,678 107,541 121,404 General and administrative expense: Corporate and other 14,782 13,895 30,597 26,370 Third-party real estate services 24,143 25,557 51,192 54,493 Share-based compensation related to Formation Transaction and special equity awards 1,577 4,441 3,821 9,386 Transaction and other costs 1,987 2,270 2,886 5,960 Interest expense 16,041 16,773 32,319 33,069 Loss on the extinguishment of debt 1,038 — 1,629 — Income tax expense (benefit) 2,905 (5) 2,434 4,310 Net income (loss) attributable to redeemable noncontrolling interests 18,248 (345) 18,258 (2,575) Net loss attributable to noncontrolling interests (29) — (84) (1,108) Less: Third-party real estate services, including reimbursements revenue 22,157 26,745 46,127 64,852 Other revenue 1,798 1,904 3,994 4,090 Income (loss) from unconsolidated real estate ventures, net (2,107) 3,953 1,038 3,010 Interest and other income (loss), net 1,672 (38) 15,918 (29) Gain on the sale of real estate, net 158,767 11,290 158,631 11,290 Consolidated NOI $ 71,159 $ 72,437 $ 148,128 $ 144,392 The following is a summary of NOI by segment. Items classified in the Other column include future development assets, assets ground leased to third parties, corporate entities and the elimination of inter-segment activity. Three Months Ended June 30, 2022 Commercial Multifamily Other Total (In thousands) Property rental revenue $ 71,903 $ 42,939 $ 2,194 $ 117,036 Parking revenue 4,187 250 77 4,514 Total property revenue 76,090 43,189 2,271 121,550 Property expense: Property operating 19,624 14,870 951 35,445 Real estate taxes 9,018 5,054 874 14,946 Total property expense 28,642 19,924 1,825 50,391 Consolidated NOI $ 47,448 $ 23,265 $ 446 $ 71,159 Three Months Ended June 30, 2021 Commercial Multifamily Other Total (In thousands) Property rental revenue $ 89,189 $ 32,718 $ 912 $ 122,819 Parking revenue 2,959 110 107 3,176 Total property revenue 92,148 32,828 1,019 125,995 Property expense: Property operating 25,097 12,042 (2,139) 35,000 Real estate taxes 12,148 5,065 1,345 18,558 Total property expense 37,245 17,107 (794) 53,558 Consolidated NOI $ 54,903 $ 15,721 $ 1,813 $ 72,437 Six Months Ended June 30, 2022 Commercial Multifamily Other Total (In thousands) Property rental revenue $ 159,524 $ 85,047 $ 4,063 $ 248,634 Parking revenue 8,199 384 132 8,715 Total property revenue 167,723 85,431 4,195 257,349 Property expense: Property operating 45,826 28,625 1,638 76,089 Real estate taxes 20,795 10,275 2,062 33,132 Total property expense 66,621 38,900 3,700 109,221 Consolidated NOI $ 101,102 $ 46,531 $ 495 $ 148,128 Six Months Ended June 30, 2021 Commercial Multifamily Other Total (In thousands) Property rental revenue $ 176,370 $ 65,304 $ 3,386 $ 245,060 Parking revenue 5,649 175 107 5,931 Total property revenue 182,019 65,479 3,493 250,991 Property expense: Property operating 49,061 24,237 (3,567) 69,731 Real estate taxes 23,920 10,310 2,638 36,868 Total property expense 72,981 34,547 (929) 106,599 Consolidated NOI $ 109,038 $ 30,932 $ 4,422 $ 144,392 The following is a summary of certain balance sheet data by segment: Commercial Multifamily Other Total (In thousands) June 30, 2022 Real estate, at cost $ 2,722,907 $ 2,481,213 $ 402,467 $ 5,606,587 Investments in unconsolidated real estate ventures 233,519 96,030 84,800 414,349 Total assets 3,016,911 1,856,493 706,498 5,579,902 December 31, 2021 Real estate, at cost $ 3,422,278 $ 2,367,712 $ 446,486 $ 6,236,476 Investments in unconsolidated real estate ventures 281,515 103,389 77,981 462,885 Total assets 3,591,839 1,797,807 996,560 6,386,206 |