| Segment Information |
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 |
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