SEGMENT INFORMATION

We have three reportable segments: office, multifamily and retail. Office properties provide office space for various types of businesses and professions. Multifamily properties provide rental housing for individuals and families throughout the greater Washington metro region. Retail properties are typically grocery store-anchored neighborhood centers that include other small shop tenants or regional power centers with several junior box tenants.

We evaluate performance based upon net operating income from the combined properties in each segment. Our reportable operating segments are consolidations of similar properties. GAAP requires that segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing segments’ performance. Net operating income is a key measurement of our segment profit and loss. Net operating income is defined as segment real estate rental revenue less segment real estate expenses.

The following tables present revenues, net operating income, capital expenditures and total assets for the three and six months ended June 30, 2017 and 2016 from these segments, and reconcile net operating income of reportable segments to net income attributable to the controlling interests as reported (in thousands):



	Three Months Ended June 30, 2017
	Office		Retail		Multifamily		Corporate and Other		Consolidated
Real estate rental revenue	$	44,109	$	15,512	$	23,835	$	—	$	83,456
Real estate expenses	15,853		3,597		9,241		—		28,691
Net operating income	$	28,256	$	11,915	$	14,594	$	—	$	54,765
Depreciation and amortization									(29,261		)
General and administrative									(5,759		)
Interest expense									(12,053		)
Other income									48
Income tax benefit									107
Net income									7,847
Less: Net loss attributable to noncontrolling interests in subsidiaries									17
Net income attributable to the controlling interests									$	7,864
Capital expenditures	$	5,864	$	62	$	6,561	$	1,375	$	13,862
Total assets	$	1,241,618	$	344,523	$	766,972	$	34,999	$	2,388,112



	Three Months Ended June 30, 2016
	Office		Retail		Multifamily		Corporate and Other		Consolidated
Real estate rental revenue	$	43,737	$	15,080	$	20,588	$	—	$	79,405
Real estate expenses	16,594		3,684		7,897		—		28,175
Net operating income	$	27,143	$	11,396	$	12,691	$	—	$	51,230
Depreciation and amortization									(25,161		)
Acquisition costs									(1,024		)
General and administrative									(4,968		)
Interest expense									(13,820		)
Other income									83
Gain on sale of real estate									24,112
Income tax benefit									693
Casualty gain									676
Net income									31,821
Less: Net loss attributable to noncontrolling interests in subsidiaries									15
Net income attributable to the controlling interests									$	31,836
Capital expenditures	$	5,854	$	3,588	$	2,198	$	29	$	11,669
Total assets	$	1,151,041	$	352,094	$	769,592	$	33,724	$	2,306,451



	Six Months Ended June 30, 2017
	Office		Retail		Multifamily		Corporate and Other		Consolidated
Real estate rental revenue	$	82,136	$	31,217	$	47,604	$	—	$	160,957
Real estate expenses	30,267		7,460		18,827		—		56,554
Net operating income	$	51,869	$	23,757	$	28,777	$	—	$	104,403
Depreciation and amortization									(55,330		)
General and administrative									(11,385		)
Interest expense									(23,458		)
Other income									125
Income tax benefit									107
Net income									14,462
Less: Net loss attributable to noncontrolling interests in subsidiaries									36
Net income attributable to the controlling interests									$	14,498
Capital expenditures	$	10,819	$	246	$	12,858	$	1,950	$	25,873



	Six Months Ended June 30, 2016
	Office		Retail		Multifamily		Corporate and Other		Consolidated
Real estate rental revenue	$	87,555	30,460		$	38,527	$	—	$	156,542
Real estate expenses	33,669		8,090		15,150		—		56,909
Net operating income	53,886		$	22,370	$	23,377	$	—	$	99,633
Depreciation and amortization									(51,199		)
Acquisition costs									(1,178		)
General and administrative									(10,479		)
Interest expense									(28,180		)
Other income									122
Gain on sale of real estate									24,112
Income tax benefit									693
Casualty gain									676
Net income									34,200
Less: Net loss attributable to noncontrolling interests in subsidiaries									20
Net income attributable to the controlling interests									$	34,220
Capital expenditures	$	8,025	$	4,131	$	4,200	$	42	$	16,398