Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v2.4.1.9
Segment Reporting
 12 Months Ended
Dec. 31, 2014
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 has phased out this line of business in 2014.  The Company had no revenues from foreign countries recorded for the years  ended December 31, 2014, 2013 and 2012.  The Company had no long lived assets in foreign locations as of December 31, 2014 and 2013. 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, 2014, 2013 and 2012, and selected asset information as of December 31, 2014 and 2013 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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

$
585,491 

 

$
24,971 

 

$
30,533 

(e)

 

$
(4,196)

 

$
636,799 

2013

 
621,352 

 

 
12,792 

 

 
25,710 

(f)

 

 
7,177 

 

 
667,031 

2012

 
635,278 

 

 

 -

 

 
4,465 

 

 

 
10,889 

 

 
650,632 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  interest expenses (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

$
295,416 

 

$
12,235 

 

$
38,377 

 

 

$
138,733 

 

$
484,761 

2013

 
285,755 

 

 
6,482 

 

 
32,415 

 

 

 
135,963 

 

 
460,615 

2012

 
276,700 

 

 

 -

 

 
5,195 

 

 

 
146,122 

 

 
428,017 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings (loss) of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

$
4,236 

 

$
(8,790)

 

$
2,131 

 

 

$

 -

 

$
(2,423)

2013

 
6,280 

 

 
(10,615)

 

 
2,008 

 

 

 

 -

 

 
(2,327)

2012

 
5,564 

 

 
(1,475)

 

 

 -

 

 

 

 -

 

 
4,089 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income (loss) (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

$
294,311 

 

$
3,946 

 

$
(5,713)

 

 

$
(142,929)

 

$
149,615 

2013

 
341,877 

 

 
(4,305)

 

 
(4,697)

 

 

 
(128,786)

 

 
204,089 

2012

 
364,142 

 

 
(1,475)

 

 
(730)

 

 

 
(135,233)

 

 
226,704 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

$
3,636,126 

 

$
492,362 

 

$
11,158 

 

 

$
52,601 

 

$
4,192,247 

2013

 
3,886,574 

 

 
377,237 

 

 
10,488 

 

 

 
241,029 

 

 
4,515,328 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total long-lived assets (c):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

$
3,344,840 

 

$
318,524 

 

$
3,858 

 

 

$
3,482 

 

$
3,670,704 

2013

 
3,620,494 

 

 
240,501 

 

 
3,468 

 

 

 
3,730 

 

 
3,868,193 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investments in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

$
81,649 

 

$
164,912 

 

$
907 

 

 

$

 -

 

$
247,468 

2013

 
53,160 

 

 
127,276 

 

 
693 

 

 

 

 -

 

 
181,129 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(f)Includes $2.2 million 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) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

        Year Ended December 31,

 

 
2014 

 

 
2013 

 

 
2012 

Net operating income

$
149,615 

 

$
204,089 

 

$
226,704 

Less:

 

 

 

 

 

 

 

 

Depreciation and amortization

 
(172,490)

 

 
(182,766)

 

 
(174,333)

Realized gains on disposition of

 

 

 

 

 

 

 

 

  rental property, net

 
54,848 

 

 

 -

 

 

 -

Loss from early extinguishment of debt

 
(582)

 

 
(156)

 

 
(4,960)

Impairments

 

 -

 

 
(110,853)

 

 
(9,845)

Income (loss) from continuing operations

 
31,391 

 

 
(89,686)

 

 
37,566 

Discontinued operations:

 

 

 

 

 

 

 

 

Income from discontinued operations

 

 -

 

 
11,811 

 

 
21,878 

Loss from early extinguishment of debt

 

 -

 

 
(703)

 

 

 -

Realized gains (losses) and unrealized losses on

 

 

 

 

 

 

 

 

  disposition of rental property and impairments, net

 

 -

 

 
59,520 

 

 
(13,175)

Total discontinued operations, net

 

 -

 

 
70,628 

 

 
8,703 

Net income (loss)

 
31,391 

 

 
(19,058)

 

 
46,269 

Noncontrolling interest in consolidated joint ventures

 
778 

 

 
2,199 

 

 
330 

Noncontrolling interest in Operating Partnership

 
(3,602)

 

 
10,459 

 

 
(4,619)

Noncontrolling interest in discontinued operations

 

 -

 

 
(8,509)

 

 
(1,058)

Net income (loss) available to common shareholders

$
28,567 

 

$
(14,909)

 

$
40,922