Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v2.4.0.8
Segment Reporting
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
Segment Reporting

17.   SEGMENT REPORTING

 

The Company operates in three business segments: (i) commercial and other real estate, (ii) multifamily real estate, and (iii) multifamily services.  The Company provides leasing, property management, acquisition, development, construction and tenant-related services for its commercial and other real estate and multifamily real estate portfolio. The Company’s multifamily services business also provides similar services for third parties.  The Company no longer considers construction services as a reportable segment as it has significantly reduced its operations.  The Company had no revenues from foreign countries recorded for the nine months ended September 30, 2013 and 2012.  The Company had no long lived assets in foreign locations as of September 30, 2013 and December 31, 2012.  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 its real estate segments (commercial and other, and multifamily) and net operating income from its multifamily services segment.

 

 

Selected results of operations for the three and nine months ended September 30, 2013 and 2012 and selected asset information as of September 30, 2013 and December 31, 2012 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

 

 

 

 

 

Multifamily

 

 

 

Corporate

 

 

Total

 

 

& Other

 

 

Multifamily

 

 

Services

 

 

 

& Other (d)

 

 

Company

Total revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

$
153,602 

 

$
3,736 

 

$
6,867 

(e)

 

$
(1,700)

 

$
162,505 

September 30, 2012

 
155,314 

 

 

 -

 

 

 -

 

 

 
1,483 

 

 
156,797 

Nine months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

$
465,564 

 

$
8,673 

 

$
18,745 

(f)

 

$
8,782 

 

$
501,764 

September 30, 2012

 
477,345 

 

 

 -

 

 

 -

 

 

 
8,946 

 

 
486,291 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  interest expenses (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

$
72,498 

 

$
1,960 

 

$
8,214 

 

 

$
30,856 

 

$
113,528 

September 30, 2012

 
70,584 

 

 

 -

 

 

 -

 

 

 
35,312 

 

 
105,896 

Nine months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

$
210,917 

 

$
4,066 

 

$
23,345 

 

 

$
107,061 

 

$
345,389 

September 30, 2012

 
205,774 

 

 

 -

 

 

 -

 

 

 
113,115 

 

 
318,889 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings (loss) of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

$
1,919 

 

$
(2,830)

 

$
682 

 

 

 

 -

 

$
(229)

September 30, 2012

 
2,418 

 

 

 -

 

 

 -

 

 

 

 -

 

 
2,418 

Nine months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

$
5,149 

 

$
(7,890)

 

$
682 

 

 

 

 -

 

$
(2,059)

September 30, 2012

 
4,751 

 

 

 -

 

 

 -

 

 

 

 -

 

 
4,751 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income (loss) (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

$
83,023 

 

$
(1,054)

 

$
(665)

 

 

$
(32,556)

 

$
48,748 

September 30, 2012

 
87,148 

 

 

 -

 

 

 -

 

 

 
(33,829)

 

 
53,319 

Nine months ended:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

$
259,796 

 

$
(3,283)

 

$
(3,918)

 

 

$
(98,279)

 

$
154,316 

September 30, 2012

 
276,322 

 

 

 -

 

 

 -

 

 

 
(104,169)

 

 
172,153 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

$
3,997,545 

 

$
245,573 

 

$
12,297 

 

 

$
353,848 

 

$
4,609,263 

December 31, 2012

 
4,382,843 

 

 
65,723 

 

 
12,159 

 

 

 
65,320 

 

 
4,526,045 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total long-lived assets (c):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2013

$
3,720,747 

 

$
235,629 

 

$
194 

 

 

$
31,860 

 

$
3,988,430 

December 31, 2012

 
4,160,362 

 

 
62,525 

 

 

 -

 

 

 
11,521 

 

 
4,234,408 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 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, goodwill and investments in unconsolidated joint ventures.

(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 $665 of fees earned for this period from the multifamily real estate segment, which are eliminated in consolidation.

(f)Includes $1,432 of fees earned for this period from the multifamily 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,

 

 
2013 

 

 
2012 

 

 
2013 

 

 
2012 

Net operating income

$
48,748 

 

$
53,319 

 

$
154,316 

 

$
172,153 

Less:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 
(46,094)

 

 
(43,492)

 

 
(135,122)

 

 
(130,720)

Loss from early extinguishment of debt

 

 -

 

 

 -

 

 

 -

 

 
(4,415)

Impairments

 
(48,700)

 

 

 -

 

 
(48,700)

 

 

 -

Income from continuing operations

 
(46,046)

 

 
9,827 

 

 
(29,506)

 

 
37,018 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations

 
2,164 

 

 
6,337 

 

 
11,842 

 

 
17,446 

Loss from early extinguishment of debt

 

 -

 

 

 -

 

 
(703)

 

 

 -

Realized gains (losses) and unrealized losses

 

 

 

 

 

 

 

 

 

 

 

on disposition of rental property and impairments, net

 
47,321 

 

 
12 

 

 
61,079 

 

 
2,390 

Total discontinued operations, net

 
49,485 

 

 
6,349 

 

 
72,218 

 

 
19,836 

Net income

 
3,439 

 

 
16,176 

 

 
42,712 

 

 
56,854 

Noncontrolling interest in consolidated joint ventures

 
1,838 

 

 
85 

 

 
1,962 

 

 
256 

Noncontrolling interest in Operating Partnership

 
5,314 

 

 
(1,207)

 

 
3,295 

 

 
(4,543)

Noncontrolling interest in discontinued operations

 
(5,948)

 

 
(773)

 

 
(8,699)

 

 
(2,418)

Net income available to common shareholders

$
4,643 

 

$
14,281 

 

$
39,270 

 

$
50,149