Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v2.4.0.8
Segment Reporting
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting

17.   SEGMENT REPORTING

 

The Company operates in three business segments: (i) commercial and other real estate, (ii) multi-family real estate, and (iii) multi-family services.  The Company provides leasing, property management, acquisition, development, construction and tenant-related services for its commercial and other real estate and multi-family real estate portfolio.  The Company’s multi‑family services business also provides similar services for third parties.  The Company no longer considers construction services as a reportable segment as it has significantly reduced its operations.  The Company had no revenues from foreign countries recorded for the six months ended June 30, 2014 and 2013.  The Company had no long lived assets in foreign locations as of June 30, 2014 and December 31, 2013. The accounting policies of the segments are the same as those described in Note 2: Significant Accounting Policies, excluding depreciation and amortization.

 

The Company evaluates performance based upon net operating income from the combined properties in each of its real estate segments (commercial and other, and multi-family) and from its multi-family services segment.

 

 

Selected results of operations for the three and six months ended June 30, 2014 and 2013 and selected asset information as of June 30, 2014 and December 31, 2013 regarding the Company’s operating segments are as follows.  Amounts for prior periods have been restated to conform to the current period segment reporting presentation: (dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

Multi-family

 

 

 

Corporate

 

 

Total

 

 

& Other

 

 

Multi-family

 

 

Services

 

 

 

& Other (d)

 

 

Company

Total revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

$
150,877 

 

$
6,329 

 

$
7,403 

(e)

 

$
(4,309)

 

$
160,300 

June 30, 2013

 
155,249 

 

 
3,655 

 

 
6,394 

(f)

 

 
3,048 

 

 
168,346 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

 
311,450 

 

 
12,132 

 

 
14,351 

(g)

 

 
(8,037)

 

 
329,896 

June 30, 2013

 
313,897 

 

 
4,937 

 

 
11,878 

(h)

 

 
8,547 

 

 
339,259 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  interest expenses (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

$
72,303 

 

$
3,006 

 

$
8,382 

 

 

$
29,578 

 

$
113,269 

June 30, 2013

 
65,889 

 

 
1,568 

 

 
7,657 

 

 

 
38,888 

 

 
114,002 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

 
159,236 

 

 
5,705 

 

 
18,541 

 

 

 
70,791 

 

 
254,273 

June 30, 2013

 
136,282 

 

 
2,104 

 

 
15,132 

 

 

 
78,343 

 

 
231,861 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings (loss) of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

$
1,829 

 

$
(2,255)

 

$
869 

 

 

$

 -

 

$
443 

June 30, 2013

 
2,845 

 

 
(2,925)

 

 

 -

 

 

 

 -

 

 
(80)

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

 
2,817 

 

 
(4,478)

 

 
869 

 

 

 

 -

 

 
(792)

June 30, 2013

 
3,230 

 

 
(5,060)

 

 

 -

 

 

 

 -

 

 
(1,830)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income (loss) (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

$
80,403 

 

$
1,068 

 

$
(110)

 

 

$
(33,887)

 

$
47,474 

June 30, 2013

 
92,205 

 

 
(838)

 

 
(1,263)

 

 

 
(35,840)

 

 
54,264 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

 
155,031 

 

 
1,949 

 

 
(3,321)

 

 

 
(78,828)

 

 
74,831 

June 30, 2013

 
180,845 

 

 
(2,227)

 

 
(3,254)

 

 

 
(69,796)

 

 
105,568 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

$
3,796,166 

 

$
398,190 

 

$
9,004 

 

 

$
151,412 

 

$
4,354,772 

December 31, 2013

 
3,886,574 

 

 
377,237 

 

 
10,488 

 

 

 
241,029 

 

 
4,515,328 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total long-lived assets (c):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

$
3,421,351 

 

$
277,734 

 

$
3,923 

 

 

$
3,479 

 

$
3,706,487 

December 31, 2013

 
3,620,494 

 

 
240,501 

 

 
3,468 

 

 

 
3,730 

 

 
3,868,193 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investments in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2014

$
116,829 

 

$
148,286 

 

$
751 

 

 

$

 -

 

$
265,866 

December 31, 2013

 
53,160 

 

 
127,276 

 

 
693 

 

 

 

 -

 

 
181,129 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)Total operating and interest expenses represent the sum of: real estate taxes; utilities; operating services; direct construction costs; real estate services expenses; general and administrative and interest expense (net of interest income). All interest expense, net of interest income, (including for property-level mortgages) is excluded from segment amounts and classified in Corporate & Other for all periods.

(b)Net operating income represents total revenues less total operating and interest expenses (as defined in Note “a”), plus equity in earnings (loss) of unconsolidated joint ventures, for the period.

(c)Long-lived assets are comprised of net investment in rental property, unbilled rents receivable and goodwill.

(d)Corporate & Other represents all corporate-level items (including interest and other investment income, interest expense, non-property general and administrative expense, construction services revenue and direct construction costs) as well as intercompany eliminations necessary to reconcile to consolidated Company totals.

(e)Includes $935 of fees earned for this period from the multi-family real estate segment, which are eliminated in consolidation.

(f)Includes $571 of fees earned for this period from the multi-family real estate segment, which are eliminated in consolidation. 

(g)Includes $1,800 of fees earned for this period from the multi-family real estate segment, which are eliminated in consolidation.

(h)Includes $767 of fees earned for this period from the multi-family real estate segment, which are eliminated in consolidation.  

 

The following schedule reconciles net operating income to net income available to common shareholders: (dollars in thousands) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30,

 

 

June 30,

 

 
2014 

 

 
2013 

 

 
2014 

 

 
2013 

Net operating income

$
47,474 

 

$
54,264 

 

$
74,831 

 

$
105,568 

Less:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 
(44,711)

 

 
(45,665)

 

 
(89,696)

 

 
(89,013)

Realized gains and unrealized losses on disposition of

 

 

 

 

 

 

 

 

 

 

 

  rental property, net

 
54,584 

 

 

 -

 

 
54,584 

 

 

 -

Income from continuing operations

 
57,347 

 

 
8,599 

 

 
39,719 

 

 
16,555 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations

 

 -

 

 
4,530 

 

 

 -

 

 
9,663 

Loss from early extinguishment of debt

 

 -

 

 
(703)

 

 

 -

 

 
(703)

Realized gains and unrealized losses on disposition of

 

 

 

 

 

 

 

 

 

 

 

  rental property, net

 

 -

 

 
13,758 

 

 

 -

 

 
13,758 

Total discontinued operations

 

 -

 

 
17,585 

 

 

 -

 

 
22,718 

Net income

 
57,347 

 

 
26,184 

 

 
39,719 

 

 
39,273 

Noncontrolling interest in consolidated joint ventures

 
290 

 

 
62 

 

 
612 

 

 
124 

Noncontrolling interest in Operating Partnership

 
(6,514)

 

 
(1,048)

 

 
(4,506)

 

 
(2,021)

Noncontrolling interest in discontinued operations

 

 -

 

 
(2,127)

 

 

 -

 

 
(2,749)

Net income available to common shareholders

$
51,123 

 

$
23,071 

 

$
35,825 

 

$
34,627