Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.4.0.3
Segment Reporting
 3 Months Ended
Mar. 31, 2016
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 three months ended March 31, 2016 and 2015.  The Company had no long lived assets in foreign locations as of March 31, 2016 and December 31, 2015.  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 months ended March 31, 2016 and 2015 and selected asset information as of March 31, 2016 and December 31, 2015 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2016

$

 136,952 

 

$

 8,986 

 

$

 8,727 

(e)

 

$

 (1,742)

 

$

 152,923 

March 31, 2015

 

 139,759 

 

 

 6,584 

 

 

 8,232 

(f)

 

 

 (860)

 

 

 153,715 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   interest expenses (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2016

$

 65,955 

 

$

 5,415 

 

$

 10,820 

(g)

 

$

 26,103 

 

$

 108,293 

March 31, 2015

 

 72,198 

 

 

 3,321 

 

 

 9,655 

(h)

 

 

 27,679 

 

 

 112,853 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings (loss) of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2016

$

 (1,926)

 

$

 (1,231)

 

$

 1,603 

 

 

$

 -

 

$

 (1,554)

March 31, 2015

 

 (1,368)

 

 

 (2,161)

 

 

 -

 

 

 

 -

 

 

 (3,529)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income (loss) (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2016

$

 69,071 

 

$

 2,340 

 

$

 (490)

 

 

$

 (27,845)

 

$

 43,076 

March 31, 2015

 

 66,193 

 

 

 1,102 

 

 

 (1,423)

 

 

 

 (28,539)

 

 

 37,333 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2016

$

 3,136,311 

 

$

 955,980 

 

$

 11,039 

 

 

$

 125,120 

 

$

 4,228,450 

December 31, 2015

 

 3,166,577 

 

 

 836,020 

 

 

 9,831 

 

 

 

 41,535 

 

 

 4,053,963 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total long-lived assets (c):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2016

$

 2,848,674 

 

$

 703,605 

 

$

 3,623 

 

 

$

 (2,649)

 

$

 3,553,253 

December 31, 2015

 

 2,886,583 

 

 

 577,705 

 

 

 3,670 

 

 

 

 (1,531)

 

 

 3,466,427 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investments in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2016

$

 78,052 

 

$

 224,631 

 

$

 964 

 

 

$

 -

 

$

 303,647 

December 31, 2015

 

 76,140 

 

 

 225,850 

 

 

 1,467 

 

 

 

 -

 

 

 303,457 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



(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 $2.7 million of fees and salary reimbursements earned for this period from the multi-family real estate segment, which are eliminated in consolidation.

(f)Includes $1.2 million of fees and salary reimbursements earned for this period from the multi-family real estate segment, which are eliminated in consolidation. 

(g)Includes $1.4 million of management fees and salary reimbursement expenses for this period from the multi-family real estate segment, which are eliminated in consolidation.

(h)Includes $0.9 million of management fees and salary reimbursement expenses 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



 

March 31,



 

2016

 

 

2015

Net operating income

$

 43,076 

 

$

 37,333 

Add (deduct):

 

 

 

 

 

Depreciation and amortization

 

 (43,063)

 

 

 (40,802)

Gain on change of control of interests

 

 10,156 

 

 

 -

Realized gains on disposition of

 

 

 

 

 

   rental property, net

 

 58,600 

 

 

 144 

Net income (loss)

 

 68,769 

 

 

 (3,325)

Noncontrolling interest in consolidated joint ventures

 

 706 

 

 

 490 

Noncontrolling interest in Operating Partnership

 

 (7,284)

 

 

 314 

Net income (loss) available to common shareholders

$

 62,191 

 

$

 (2,521)