Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v2.4.0.8
Segment Reporting
 12 Months Ended
Dec. 31, 2013
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 significantly reduced its operations.  The Company had no revenues from foreign countries recorded for the years ended December 31, 2013, 2012 and 2011.  The Company had no long lived assets in foreign locations as of December 31, 2013,  2012 and 2011.  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, 2013,  2012 and 2011 and selected asset information as of December 31, 2013 and 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

 

 

 

 

 

Multi-family

 

 

 

Corporate

 

 

Total

 

 

& Other

 

 

Multi-family

 

 

Services

 

 

 

& Other (d)

 

 

Company

Total revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

$
621,352 

 

$
12,792 

 

$
25,710 

(e)

 

$
7,177 

 

$
667,031 

2012

 
634,369 

 

 

 -

 

 
4,465 

(f)

 

 
11,798 

 

 
650,632 

2011

 
639,114 

 

 

 -

 

 

 -

 

 

 
13,121 

 

 
652,235 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  interest expenses (a):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

$
285,755 

 

$
6,482 

 

$
32,415 

 

 

$
135,963 

 

$
460,615 

2012

 
276,706 

 

 

 -

 

 
5,195 

 

 

 
146,116 

 

 
428,017 

2011

 
279,056 

 

 

 -

 

 

 -

 

 

 
140,531 

 

 
419,587 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings (loss) of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

$
6,280 

 

$
(10,615)

 

$
2,008 

 

 

$

 -

 

$
(2,327)

2012

 
5,564 

 

 
(1,475)

 

 

 -

 

 

 

 -

 

 
4,089 

2011

 
2,022 

 

 

 -

 

 

 -

 

 

 

 -

 

 
2,022 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating income (loss) (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

$
341,877 

 

$
(4,305)

 

$
(4,697)

 

 

$
(128,786)

 

$
204,089 

2012

 
363,227 

 

 
(1,475)

 

 
(730)

 

 

 
(134,318)

 

 
226,704 

2011

 
362,080 

 

 

 -

 

 

 -

 

 

 
(127,410)

 

 
234,670 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

$
3,886,574 

 

$
377,237 

 

$
10,488 

 

 

$
241,029 

 

$
4,515,328 

2012

 
4,386,486 

 

 
65,723 

 

 
15,018 

 

 

 
58,818 

 

 
4,526,045 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total long-lived assets (c):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

$
3,620,494 

 

$
240,501 

 

$
3,468 

 

 

$
3,730 

 

$
3,868,193 

2012

 
4,097,049 

 

 

 -

 

 
2,945 

 

 

 
5,019 

 

 
4,105,013 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total investments in unconsolidated joint ventures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

$
53,160 

 

$
127,276 

 

$
693 

 

 

$

 -

 

$
181,129 

2012

 
69,814 

 

 
62,525 

 

 

 -

 

 

 

 -

 

 
132,339 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 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 $2,160 of fees earned for this period from the multi-family real estate segment, which are eliminated in consolidation.

(f)Includes $230 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,

 

 
2013 

 

 
2012 

 

 
2011 

Net operating income

$
204,089 

 

$
226,704 

 

$
234,670 

Less:

 

 

 

 

 

 

 

 

Depreciation and amortization

 
(182,766)

 

 
(174,333)

 

 
(175,171)

Loss from early extinguishment of debt

 
(156)

 

 
(4,960)

 

 

 -

Impairments

 
(110,853)

 

 
(9,845)

 

 

 -

Income (loss) from continuing operations

 
(89,686)

 

 
37,566 

 

 
59,499 

Discontinued operations:

 

 

 

 

 

 

 

 

Income from discontinued operations

 
11,811 

 

 
21,878 

 

 
21,888 

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 

 

 
21,888 

Net income (loss)

 
(19,058)

 

 
46,269 

 

 
81,387 

Noncontrolling interest in consolidated joint ventures

 
2,199 

 

 
330 

 

 
402 

Noncontrolling interest in Operating Partnership

 
10,459 

 

 
(4,619)

 

 
(7,532)

Noncontrolling interest in discontinued operations

 
(8,509)

 

 
(1,058)

 

 
(2,837)

Preferred Stock Dividends

 

 -

 

 

 -

 

 
(1,736)

Net income (loss) available to common shareholders

$
(14,909)

 

$
40,922 

 

$
69,684