Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.3.1.900
Segment Reporting
12 Months Ended
Dec. 31, 2015
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 phased out this line of business in 2014.  The Company had no revenues from foreign countries recorded for the years ended December 31, 2015,  2014 and 2013.  The Company had no long lived assets in foreign locations as of December 31, 2015 and 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 years ended December 31, 2015,  2014 and 2013, and selected asset information as of December 31, 2015 and 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

$

538,323 

 

$

27,787 

 

$

33,112 

(e)

 

$

(4,339)

 

$

594,883 

2014

 

585,491 

 

 

24,971 

 

 

30,533 

(f)

 

 

(4,196)

 

 

636,799 

2013

 

621,352 

 

 

12,792 

 

 

25,710 

(g)

 

 

7,177 

 

 

667,031 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  interest expenses (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

$

264,967 

 

$

17,642 

 

$

37,090 

(h)

 

$

105,452 

 

$

425,151 

2014

 

295,416 

 

 

12,235 

 

 

38,377 

(i)

 

 

138,733 

 

 

484,761 

2013

 

285,755 

 

 

6,482 

 

 

32,415 

(j)

 

 

135,963 

 

 

460,615 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings (loss) of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

$

5,104 

 

$

(9,879)

 

$

1,603 

 

 

$

 -

 

$

(3,172)

2014

 

4,236 

 

 

(8,790)

 

 

2,131 

 

 

 

 -

 

 

(2,423)

2013

 

6,280 

 

 

(10,615)

 

 

2,008 

 

 

 

 -

 

 

(2,327)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income (loss) (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

$

278,460 

 

$

266 

 

$

(2,375)

 

 

$

(109,791)

 

$

166,560 

2014

 

294,311 

 

 

3,946 

 

 

(5,713)

 

 

 

(142,929)

 

 

149,615 

2013

 

341,877 

 

 

(4,305)

 

 

(4,697)

 

 

 

(128,786)

 

 

204,089 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

$

3,167,408 

 

$

838,874 

 

$

9,831 

 

 

$

47,377 

 

$

4,063,490 

2014

 

3,636,126 

 

 

492,362 

 

 

11,158 

 

 

 

52,601 

 

 

4,192,247 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total long-lived assets (c):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

$

2,886,583 

 

$

577,705 

 

$

3,670 

 

 

$

(1,531)

 

$

3,466,427 

2014

 

3,344,840 

 

 

318,524 

 

 

3,858 

 

 

 

3,482 

 

 

3,670,704 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investments in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

$

76,140 

 

$

225,850 

 

$

1,467 

 

 

$

 -

 

$

303,457 

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 $197.9 million on assets included in the commercial and other real estate business segment for the year ended December 31, 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 $6.6 million of fees and salary reimbursements earned for this period from the multi-family real estate segment, which are eliminated in consolidation.

(f)Includes $2.3 million of fees and salary reimbursements earned for this period from the multi-family real estate segment, which are eliminated in consolidation. 

(g)Includes $2.2 million of fees and salary reimbursements earned for this period from the multi-family real estate segment, which are eliminated in consolidation.

(h)Includes $3.9 million of management fees and salary reimbursement expenses for this period for the multi-family real estate segment, which are eliminated in consolidation.

(i)Includes $2.9 million of management fees and salary reimbursement expenses for this period for the multi-family real estate segment, which are eliminated in consolidation.

(j)Includes $1.3 million of management fees and salary reimbursement expenses for this period for 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) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

             Year Ended December 31,

 

 

2015 

 

 

2014 

 

 

2013 

Net operating income

$

166,560 

 

$

149,615 

 

$

204,089 

Add (deduct):

 

 

 

 

 

 

 

 

Depreciation and amortization

 

(170,402)

 

 

(172,490)

 

 

(182,766)

Realized gains on disposition of

 

 

 

 

 

 

 

 

  rental property, net

 

53,261 

 

 

54,848 

 

 

 -

Gain on sale of investment in unconsolidated joint venture

 

6,448 

 

 

 -

 

 

 -

Loss from early extinguishment of debt

 

 -

 

 

(582)

 

 

(156)

Impairments

 

(197,919)

 

 

 -

 

 

(110,853)

Income (loss) from continuing operations

 

(142,052)

 

 

31,391 

 

 

(89,686)

Discontinued operations

 

 

 

 

 

 

 

 

Income from discontinued operations

 

 -

 

 

 -

 

 

11,811 

Loss from early extinguishment of debt

 

 -

 

 

 -

 

 

(703)

Realized gains (losses) and unrealized losses on

 

 

 

 

 

 

 

 

  disposition of rental property and impairments, net

 

 -

 

 

 -

 

 

59,520 

Total discontinued operations, net

 

 -

 

 

 -

 

 

70,628 

Net income (loss)

 

(142,052)

 

 

31,391 

 

 

(19,058)

Noncontrolling interest in consolidated joint ventures

 

1,044 

 

 

778 

 

 

2,199 

Noncontrolling interest in Operating Partnership

 

15,256 

 

 

(3,602)

 

 

10,459 

Noncontrolling interest in discontinued operations

 

 -

 

 

 -

 

 

(8,509)

Net income (loss) available to common shareholders

$

(125,752)

 

$

28,567 

 

$

(14,909)