Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.3.0.814
Segment Reporting
 9 Months Ended
Sep. 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 nine months ended September 30, 2015 and 2014.  The Company had no long lived assets in foreign locations as of September 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 nine months ended September 30, 2015 and 2014 and selected asset information as of September 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

$
131,910 

 

$
6,964 

 

$
8,409 

(e)

 

$
(1,125)

 

$
146,158 

September 30, 2014

 
141,659 

 

 
6,711 

 

 
8,300 

(f)

 

 
(1,181)

 

 
155,489 

Nine months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

 
406,128 

 

 
20,541 

 

 
24,910 

(g)

 

 
(3,139)

 

 
448,440 

September 30, 2014

 
446,036 

 

 
19,801 

 

 
22,650 

(h)

 

 
(3,102)

 

 
485,385 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  interest expenses (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

$
59,810 

 

$
4,233 

 

$
9,598 

 

 

$
28,236 

 

$
101,877 

September 30, 2014

 
68,537 

 

 
3,529 

 

 
10,249 

 

 

 
28,102 

 

 
110,417 

Nine months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

 
199,178 

 

 
12,775 

 

 
28,304 

 

 

 
79,804 

 

 
320,061 

September 30, 2014

 
228,571 

 

 
10,276 

 

 
28,790 

 

 

 
97,053 

 

 
364,690 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings (loss) of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

$
5,181 

 

$
(2,793)

 

$
747 

 

 

$

 -

 

$
3,135 

September 30, 2014

 
328 

 

 
(2,088)

 

 
492 

 

 

 

 -

 

 
(1,268)

Nine months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

 
4,611 

 

 
(8,290)

 

 
956 

 

 

 

 -

 

 
(2,723)

September 30, 2014

 
3,145 

 

 
(6,566)

 

 
1,361 

 

 

 

 -

 

 
(2,060)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income (loss) (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

$
77,281 

 

$
(62)

 

$
(442)

 

 

$
(29,361)

 

$
47,416 

September 30, 2014

 
73,450 

 

 
1,094 

 

 
(1,457)

 

 

 
(29,283)

 

 
43,804 

Nine months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

 
211,561 

 

 
(524)

 

 
(2,438)

 

 

 
(82,943)

 

 
125,656 

September 30, 2014

 
220,610 

 

 
2,959 

 

 
(4,779)

 

 

 
(100,155)

 

 
118,635 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

$
3,197,838 

 

$
747,039 

 

$
9,850 

 

 

$
47,175 

 

$
4,001,902 

December 31, 2014

 
3,473,176 

 

 
662,208 

 

 
11,158 

 

 

 
45,705 

 

 
4,192,247 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total long-lived assets (c):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

$
2,914,461 

 

$
508,212 

 

$
3,717 

 

 

$
(1,865)

 

$
3,424,525 

December 31, 2014

 
3,181,225 

 

 
486,243 

 

 
3,858 

 

 

 
(622)

 

 
3,670,704 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investments in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2015

$
76,715 

 

$
221,717 

 

$
1,054 

 

 

$

 -

 

$
299,486 

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.  The Company recorded an impairment charge of $164.2 million on assets included in the commercial and other real estate business segment for the three and nine months ended September 30, 2015.  See Note 3: Recent Transactions – Impairments on Properties Held and Used.  

(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 $1,621 of fees earned for this period from the multi-family real estate segment, which are eliminated in consolidation.

(f)Includes $1,199 of fees earned for this period from the multi-family real estate segment, which are eliminated in consolidation. 

(g)Includes $4,452 of fees earned for this period from the multi-family real estate segment, which are eliminated in consolidation.

(h)Includes $2,962 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

 

 

           Nine Months Ended

 

 

 

September 30,

 

 

 

September 30,

 

 
2015 

 

 
2014 

 

 
2015 

 

 
2014 

Net operating income

$
47,416 

 

$
43,804 

 

$
125,656 

 

$
118,635 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 
(44,099)

 

 
(41,983)

 

 
(127,266)

 

 
(131,679)

Realized gains on disposition of

 

 

 

 

 

 

 

 

 

 

 

  rental property, net

 
18,718 

 

 
264 

 

 
53,261 

 

 
54,848 

Gain on sale of investment in unconsolidated joint venture

 

 -

 

 

 -

 

 
6,448 

 

 

 -

Impairments

 
(164,176)

 

 

 -

 

 
(164,176)

 

 

 -

Net income (loss)

 
(142,141)

 

 
2,085 

 

 
(106,077)

 

 
41,804 

Noncontrolling interest in consolidated joint ventures

 
(281)

 

 
145 

 

 
582 

 

 
757 

Noncontrolling interest in Operating Partnership

 
15,530 

 

 
(248)

 

 
11,461 

 

 
(4,754)

Net income (loss) available to common shareholders

$
(126,892)

 

$
1,982 

 

$
(94,034)

 

$
37,807