Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.5.0.2
Segment Reporting
 6 Months Ended
Jun. 30, 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 six months ended June 30, 2016 and 2015.  The Company had no long lived assets in foreign locations as of June 30, 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 and six months ended June 30, 2016 and 2015 and selected asset information as of June 30, 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2016

$

 133,768 

 

$

 9,219 

 

$

 9,421 

(e)

 

$

 (3,181)

 

$

 149,227 

June 30, 2015

 

 134,613 

 

 

 6,842 

 

 

 8,269 

(f)

 

 

 (1,157)

 

 

 148,567 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2016

 

 270,721 

 

 

 18,205 

 

 

 18,148 

(e)

 

 

 (4,924)

 

 

 302,150 

June 30, 2015

 

 274,217 

 

 

 13,579 

 

 

 16,501 

(f)

 

 

 (2,015)

 

 

 302,282 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   interest expenses (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2016

$

 64,368 

 

$

 5,920 

 

$

 9,425 

(g)

 

$

 21,473 

 

$

 101,186 

June 30, 2015

 

 64,158 

 

 

 4,872 

 

 

 9,051 

(h)

 

 

 27,250 

 

 

 105,331 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2016

 

 133,378 

 

 

 11,335 

 

 

 20,245 

(g)

 

 

 44,521 

 

 

 209,479 

June 30, 2015

 

 136,008 

 

 

 8,541 

 

 

 18,706 

(h)

 

 

 54,929 

 

 

 218,184 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings (loss) of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2016

$

 1,405 

 

$

 (2,100)

 

$

 81 

 

 

$

 -

 

$

 (614)

June 30, 2015

 

 798 

 

 

 (3,336)

 

 

 209 

 

 

 

 -

 

 

 (2,329)

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2016

 

 1,082 

 

 

 (3,331)

 

 

 81 

 

 

 

 -

 

 

 (2,168)

June 30, 2015

 

 (570)

 

 

 (5,497)

 

 

 209 

 

 

 

 -

 

 

 (5,858)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income (loss) (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2016

$

 70,805 

 

$

 1,199 

 

$

 77 

 

 

$

 (24,654)

 

$

 47,427 

June 30, 2015

 

 71,253 

 

 

 (1,366)

 

 

 (573)

 

 

 

 (28,407)

 

 

 40,907 

Six months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2016

 

 138,425 

 

 

 3,539 

 

 

 (2,016)

 

 

 

 (49,445)

 

 

 90,503 

June 30, 2015

 

 137,639 

 

 

 (459)

 

 

 (1,996)

 

 

 

 (56,944)

 

 

 78,240 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2016

$

 3,165,791 

 

$

 972,292 

 

$

 12,656 

 

 

$

 62,801 

 

$

 4,213,540 

December 31, 2015

 

 3,166,577 

 

 

 836,020 

 

 

 9,831 

 

 

 

 41,535 

 

 

 4,053,963 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total long-lived assets (c):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2016

$

 2,898,185 

 

$

 679,374 

 

$

 3,923 

 

 

$

 (3,571)

 

$

 3,577,911 

December 31, 2015

 

 2,886,583 

 

 

 577,705 

 

 

 3,670 

 

 

 

 (1,531)

 

 

 3,466,427 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investments in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2016

$

 78,185 

 

$

 236,383 

 

$

 632 

 

 

$

 -

 

$

 315,200 

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 $3.6 million and $6.3 million of fees and salary reimbursements earned for the three and six months ended June 30, 2016, respectively, from the multi-family real estate segment, which are eliminated in consolidation.

(f)Includes $1.6 million and $2.8 million of fees and salary reimbursements earned for the three and six months ended June 30, 2015, respectively, from the multi-family real estate segment, which are eliminated in consolidation. 

(g)Includes $1.7 million and $3.1 million of management fees and salary reimbursement expenses for the three and six months ended June 30, 2016, respectively, from the multi-family real estate segment, which are eliminated in consolidation.

(h)Includes $954,000 and $1.9 million of management fees and salary reimbursement expenses for the three and six months ended June 30, 2015, respectively, 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,



 

2016

 

 

2015

 

 

2016

 

 

2015

Net operating income

$

 47,427 

 

$

 40,907 

 

$

 90,503 

 

$

 78,240 

Add (deduct):

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 (43,459)

 

 

 (42,365)

 

 

 (86,522)

 

 

 (83,167)

Gain on change of control of interests

 

 5,191 

 

 

 -

 

 

 15,347 

 

 

 -

Realized gains (losses) and unrealized losses on disposition of

 

 

 

 

 

 

 

 

 

 

 

   rental property, net

 

 27,117 

 

 

 34,399 

 

 

 85,717 

 

 

 34,543 

Gain on sale of investment in unconsolidated joint venture

 

 5,670 

 

 

 6,448 

 

 

 5,670 

 

 

 6,448 

Gain from extinguishment of debt

 

 12,420 

 

 

 -

 

 

 12,420 

 

 

 -

Net income

 

 54,366 

 

 

 39,389 

 

 

 123,135 

 

 

 36,064 

Noncontrolling interest in consolidated joint ventures

 

 (311)

 

 

 373 

 

 

 395 

 

 

 863 

Noncontrolling interest in Operating Partnership

 

 (5,662)

 

 

 (4,383)

 

 

 (12,946)

 

 

 (4,069)

Net income available to common shareholders

$

 48,393 

 

$

 35,379 

 

$

 110,584 

 

$

 32,858