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| Information About Net Operating Income (NOI) NOI represents total revenues less total operating expenses, as reconciled to net income above. The Company considers NOI to be a meaningful non-GAAP financial measure for making decisions and assessing unlevered performance of its property types and markets, as it relates to total return on assets, as opposed to levered return on equity. As properties are considered for sale and acquisition based on NOI estimates and projections, the Company utilizes this measure to make investment decisions, as well as compare the performance of its assets to those of its peers. NOI should not be considered a substitute for net income, and the Company’s use of NOI may not be comparable to similarly titled measures used by other companies. The Company calculates NOI before any allocations to noncontrolling interests, as those interests do not affect the overall performance of the individual assets being measured and assessed. Definition of Net Operating Income (NOI) Reconciliation of Net Income (Loss) to Net Operating Income (NOI) $ in thousands (unaudited) 18 Q3 2021 Q2 2021 Office / Corp Multifamily Total Office / Corp Multifamily Total Net Income (loss) ($7,342) ($18,450) ($25,792) ($50,891) ($23,140) ($74,031) Deduct: Real estate services income –(2,628) (2,628) (4) (2,589) (2,593) Interest and other investment loss (income) 4,732 (1) 4,731 (95) –(95) Equity in (earnings) loss of unconsolidated joint ventures (21) 1,745 1,724 14 (363) (349) General & Administrative - property level –(1,722) (1,722) –(1,501) (1,501) Realized and unrealized (gains) losses on disposition 3,000 – 3,000 (5,601) –(5,601) (Gain) loss on disposition of developable land –––(111) –(111) (Gain) loss on sale of investment in unconsolidated joint venture 1,886 – 1,886 ––– (Gain) loss from early extinguishment of debt, net ––– 46,735 – 46,735 Add: Real estate services expenses 32 3,275 3,307 50 3,163 3,213 General and administrative 8,550 2,742 11,292 9,476 8,593 18,069 Dead deal and transaction-related costs 580 3,091 3,671 1,495 1,250 2,745 Depreciation and amortization 12,913 16,431 29,344 13,429 15,717 29,146 Interest expense 4,296 10,904 15,200 7,192 9,639 16,831 Property impairments ––– 6,041 – 6,041 Land impairments (3,380) 6,781 3,401 – 7,519 7,519 Net operating income (NOI) $25,246 $22,168 $47,414 $27,730 $18,288 $46,018 |