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 nine months ended September 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 September 30, 2017
	Office		Retail		Multifamily		Corporate and Other		Consolidated
Real estate rental revenue	$	42,982	$	15,604	$	24,233	$	—	$	82,819
Real estate expenses	16,246		3,687		9,713		—		29,646
Net operating income	$	26,736	$	11,917	$	14,520	$	—	$	53,173
Depreciation and amortization									(27,941		)
General and administrative									(5,327		)
Interest expense									(12,176		)
Other income									84
Real estate impairment									(5,000		)
Net income									2,813
Less: Net loss attributable to noncontrolling interests in subsidiaries									20
Net income attributable to the controlling interests									$	2,833
Capital expenditures	$	5,934	$	305	$	5,024	$	1,356	$	12,619
Total assets	$	1,231,576	$	346,374	$	769,873	$	36,471	$	2,384,294



	Three Months Ended September 30, 2016
	Office		Retail		Multifamily		Corporate and Other		Consolidated
Real estate rental revenue	$	40,646	$	15,404	$	23,720	$	—	$	79,770
Real estate expenses	15,839		3,570		9,755		—		29,164
Net operating income	$	24,807	$	11,834	$	13,965	$	—	$	50,606
Depreciation and amortization									(30,905		)
General and administrative									(4,539		)
Interest expense									(13,173		)
Other income									83
Gain on sale of real estate									77,592
Income tax benefit									(2		)
Net income									79,662
Less: Net loss attributable to noncontrolling interests in subsidiaries									12
Net income attributable to the controlling interests									$	79,674
Capital expenditures	$	13,919	$	2,107	$	5,837	$	236	$	22,099
Total assets	$	1,107,687	$	354,624	$	761,388	$	26,791	$	2,250,490



	Nine Months Ended September 30, 2017
	Office		Retail		Multifamily		Corporate and Other		Consolidated
Real estate rental revenue	$	125,118	$	46,821	$	71,837	$	—	$	243,776
Real estate expenses	46,513		11,147		28,540		—		86,200
Net operating income	$	78,605	$	35,674	$	43,297	$	—	$	157,576
Depreciation and amortization									(83,271		)
General and administrative									(16,712		)
Interest expense									(35,634		)
Other income									209
Real estate impairment									(5,000		)
Income tax benefit									107
Net income									17,275
Less: Net loss attributable to noncontrolling interests in subsidiaries									56
Net income attributable to the controlling interests									$	17,331
Capital expenditures	$	16,753	$	551	$	17,882	$	3,306	$	38,492



	Nine Months Ended September 30, 2016
	Office		Retail		Multifamily		Corporate and Other		Consolidated
Real estate rental revenue	$	128,201	45,864		$	62,247	$	—	$	236,312
Real estate expenses	49,508		11,660		24,905		—		86,073
Net operating income	78,693		$	34,204	$	37,342	$	—	$	150,239
Depreciation and amortization									(82,104		)
Acquisition costs									(1,178		)
General and administrative									(15,018		)
Interest expense									(41,353		)
Other income									205
Gain on sale of real estate									101,704
Income tax benefit									691
Casualty gain									676
Net income									113,862
Less: Net loss attributable to noncontrolling interests in subsidiaries									32
Net income attributable to the controlling interests									$	113,894
Capital expenditures	$	21,944	$	6,238	$	10,037	$	278	$	38,497