Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.2.0.727
Segment Reporting
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Segment Reporting

16.   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 phased out this line of business in 2014.  The Company had no revenues from foreign countries recorded for the six months ended June 30, 2015 and 2014.  The Company had no long lived assets in foreign locations as of June 30, 2015 and December 31, 2014.  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, 2015 and 2014 and selected asset information as of June 30, 2015 and December 31, 2014 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, 2015

$
134,613 

 

$
6,842 

 

$
8,269 

(e)

 

$
(1,157)

 

$
148,567 

June 30, 2014

 
150,877 

 

 
6,329 

 

 
7,403 

(f)

 

 
(4,309)

 

 
160,300 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

 
274,217 

 

 
13,579 

 

 
16,501 

(g)

 

 
(2,015)

 

 
302,282 

June 30, 2014

 
311,450 

 

 
12,132 

 

 
14,351 

(h)

 

 
(8,037)

 

 
329,896 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  interest expenses (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

$
64,158 

 

$
4,872 

 

$
9,051 

 

 

$
27,250 

 

$
105,331 

June 30, 2014

 
72,303 

 

 
3,006 

 

 
8,382 

 

 

 
29,578 

 

 
113,269 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

 
136,008 

 

 
8,541 

 

 
18,706 

 

 

 
54,929 

 

 
218,184 

June 30, 2014

 
159,236 

 

 
5,705 

 

 
18,541 

 

 

 
70,791 

 

 
254,273 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings (loss) of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

$
798 

 

$
(3,336)

 

$
209 

 

 

$

 -

 

$
(2,329)

June 30, 2014

 
1,829 

 

 
(2,255)

 

 
869 

 

 

 

 -

 

 
443 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

 
(570)

 

 
(5,497)

 

 
209 

 

 

 

 -

 

 
(5,858)

June 30, 2014

 
2,817 

 

 
(4,478)

 

 
869 

 

 

 

 -

 

 
(792)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income (loss) (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

$
71,253 

 

$
(1,366)

 

$
(573)

 

 

$
(28,407)

 

$
40,907 

June 30, 2014

 
80,403 

 

 
1,068 

 

 
(110)

 

 

 
(33,887)

 

 
47,474 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

 
137,639 

 

 
(459)

 

 
(1,996)

 

 

 
(56,944)

 

 
78,240 

June 30, 2014

 
155,031 

 

 
1,949 

 

 
(3,321)

 

 

 
(78,828)

 

 
74,831 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

$
3,384,979 

 

$
718,470 

 

$
9,773 

 

 

$
40,243 

 

$
4,153,465 

December 31, 2014

 
3,636,126 

 

 
492,362 

 

 
11,158 

 

 

 
52,601 

 

 
4,192,247 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total long-lived assets (c):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

$
3,100,539 

 

$
497,095 

 

$
3,764 

 

 

$
(1,270)

 

$
3,600,128 

December 31, 2014

 
3,344,840 

 

 
318,524 

 

 
3,858 

 

 

 
3,482 

 

 
3,670,704 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investments in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2015

$
77,841 

 

$
206,256 

 

$
410 

 

 

$

 -

 

$
284,507 

December 31, 2014

 
81,649 

 

 
164,912 

 

 
907 

 

 

 

 -

 

 
247,468 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 and other investment 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 $1,556 of fees earned for this period from the multi-family real estate segment, which are eliminated in consolidation.

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

(g)Includes $2,831 of fees earned for this period from the multi-family real estate segment, which are eliminated in consolidation.

(h)Includes $1,800 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,

 

 
2015 

 

 
2014 

 

 
2015 

 

 
2014 

Net operating income

$
40,907 

 

$
47,474 

 

$
78,240 

 

$
74,831 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 
(42,365)

 

 
(44,711)

 

 
(83,167)

 

 
(89,696)

Realized gains on disposition of

 

 

 

 

 

 

 

 

 

 

 

  rental property, net

 
34,399 

 

 
54,584 

 

 
34,543 

 

 
54,584 

Gain on sale of investment in unconsolidated joint venture

 
6,448 

 

 

 -

 

 
6,448 

 

 

 -

Net income

 
39,389 

 

 
57,347 

 

 
36,064 

 

 
39,719 

Noncontrolling interest in consolidated joint ventures

 
373 

 

 
290 

 

 
863 

 

 
612 

Noncontrolling interest in Operating Partnership

 
(4,383)

 

 
(6,514)

 

 
(4,069)

 

 
(4,506)

Net income available to common shareholders

$
35,379 

 

$
51,123 

 

$
32,858 

 

$
35,825