Segment Information
Our principal business is the operation, acquisition and development of rental office properties. We evaluate our business by geographic location, which is why our primary geographic locations are included as reportable segments below. The operating results by geographic grouping are regularly reviewed by our chief operating decision maker for assessing performance and other purposes. Our chief executive officer is our chief operating decision maker. There are no material inter-segment transactions.
Our accounting policies of the segments are the same as those used in our Consolidated Financial Statements. All operations are within the United States.
The following tables summarize rental and other revenues, rental property and other expenses, net operating income and total assets for each of our reportable segments. Net operating income is the primary industry property-level performance metric used by our chief operating decision maker and is defined as rental and other revenues less rental property and other expenses. Our chief operating decision maker uses net operating income to help assess segment performance and decide how to allocate resources accordingly.
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| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Rental and other revenues: | | | | | |
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| Atlanta | $ | 144,957 | | | $ | 146,168 | | | $ | 143,741 | |
| Charlotte | 93,392 | | | 88,003 | | | 85,984 | |
| Nashville | 156,603 | | | 169,158 | | | 171,797 | |
| Orlando | 57,131 | | | 58,442 | | | 58,002 | |
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| Raleigh | 180,735 | | | 173,156 | | | 181,964 | |
| Richmond | 36,192 | | | 35,265 | | | 35,918 | |
| Tampa | 88,038 | | | 98,887 | | | 99,421 | |
| Rental and other revenues for reportable segments | 757,048 | | | 769,079 | | | 776,827 | |
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| Other | 49,064 | | | 56,783 | | | 57,170 | |
| Total rental and other revenues | 806,112 | | | 825,862 | | | 833,997 | |
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| Rental property and other expenses: | | | | | |
| Atlanta | 56,982 | | | 57,453 | | | 54,041 | |
| Charlotte | 25,866 | | | 24,419 | | | 22,063 | |
| Nashville | 44,818 | | | 45,143 | | | 46,380 | |
| Orlando | 21,706 | | | 23,094 | | | 22,840 | |
| Raleigh | 46,867 | | | 47,046 | | | 49,702 | |
| Richmond | 11,654 | | | 11,140 | | | 11,162 | |
| Tampa | 33,651 | | | 37,603 | | | 37,039 | |
| Rental property and other expenses for reportable segments | 241,544 | | | 245,898 | | | 243,227 | |
| Other | 19,829 | | | 26,275 | | | 25,555 | |
| Total rental property and other expenses | 261,373 | | | 272,173 | | | 268,782 | |
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| Net operating income: | | | | | |
| Atlanta | 87,975 | | | 88,715 | | | 89,700 | |
| Charlotte | 67,526 | | | 63,584 | | | 63,921 | |
| Nashville | 111,785 | | | 124,015 | | | 125,417 | |
| Orlando | 35,425 | | | 35,348 | | | 35,162 | |
| Raleigh | 133,868 | | | 126,110 | | | 132,262 | |
| Richmond | 24,538 | | | 24,125 | | | 24,756 | |
| Tampa | 54,387 | | | 61,284 | | | 62,382 | |
| Net operating income for reportable segments | 515,504 | | | 523,181 | | | 533,600 | |
| Other | 29,235 | | | 30,508 | | | 31,615 | |
| Total net operating income | $ | 544,739 | | | $ | 553,689 | | | $ | 565,215 | |
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| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
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| Reconciliation to net income: | | | | | |
| Depreciation and amortization | $ | (294,954) | | | $ | (299,046) | | | $ | (299,411) | |
| Impairments of real estate assets | (8,800) | | | (24,600) | | | — | |
| General and administrative expenses | (40,307) | | | (41,903) | | | (42,857) | |
| Interest expense | (152,433) | | | (147,198) | | | (136,710) | |
| Other income | 9,587 | | | 12,337 | | | 4,435 | |
| Gains on disposition of property | 107,149 | | | 46,817 | | | 47,773 | |
| Gain on deconsolidation of affiliate | — | | | — | | | 11,778 | |
| Loss on disposition of investment in unconsolidated affiliate | (4,700) | | | — | | | — | |
| Equity in earnings of unconsolidated affiliates | 2,369 | | | 4,158 | | | 1,107 | |
| Net income | $ | 162,650 | | | $ | 104,254 | | | $ | 151,330 | |
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| December 31, |
| 2025 | | 2024 |
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| Total assets: | | | |
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| Atlanta | $ | 928,924 | | | $ | 958,101 | |
| Charlotte | 1,225,852 | | | 950,068 | |
| Nashville | 1,214,010 | | | 1,231,940 | |
| Orlando | 267,110 | | | 276,070 | |
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| Raleigh | 1,308,827 | | | 1,182,217 | |
| Richmond | 147,118 | | | 157,431 | |
| Tampa | 400,801 | | | 463,884 | |
| Total assets for reportable segments | 5,492,642 | | | 5,219,711 | |
| Other | 781,196 | | | 809,644 | |
| Total assets | $ | 6,273,838 | | | $ | 6,029,355 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.