Segments Disclosure

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segments Disclosure

26. Segments Disclosure

The Company

Our determination of segments is primarily based on our method of internal reporting. On January 1, 2016, as a result of certain organizational and operational changes, we redefined our reportable segments to be aligned with our method of internal reporting and the way our Chief Executive Officer, who is also our Chief Operating Decision Maker, makes key operating decisions, evaluates financial results and manages our business. Accordingly, our reportable segments were separated by region based on the three regions in which we conduct our business: New York, Washington, D.C. and San Francisco. In connection therewith, we have reclassified the prior period segment financial data to conform to the current period presentation.

The following tables provide NOI for each reportable segment for years ended December 31, 2016 and 2015 and for the period from November 24, 2014 to December 31, 2014.

	For the Year Ended December 31, 2016
(Amounts in thousands)	Total			New York			Washington, D.C.			San Francisco			Other
Property-related revenues	$	666,410		$	449,794		$	86,389		$	127,813		$	2,414
Property-related operating expenses		(250,040	)		(176,445	)		(32,721	)		(30,889	)		(9,985	)
NOI from unconsolidated joint ventures		17,195			16,874			-			-			321
NOI (1)	$	433,565		$	290,223		$	53,668		$	96,924		$	(7,250	)
	For the Year Ended December 31, 2015
(Amounts in thousands)	Total			New York			Washington, D.C.			San Francisco			Other
Property-related revenues	$	652,160		$	452,842		$	82,366		$	114,472		$	2,480
Property-related operating expenses		(244,754	)		(174,273	)		(32,482	)		(29,277	)		(8,722	)
NOI from unconsolidated joint ventures		16,580			16,210			-			-			370
NOI (1)	$	423,986		$	294,779		$	49,884		$	85,195		$	(5,872	)
	Period from November 24, 2014 to December 31, 2014
(Amounts in thousands)	Total			New York			Washington, D.C.			San Francisco			Other
Property-related revenues	$	66,371		$	47,460		$	7,225		$	9,978		$	1,708
Property-related operating expenses		(26,011	)		(18,679	)		(3,307	)		(3,269	)		(756	)
NOI from unconsolidated joint ventures		1,680			1,680			-			-			-
NOI (1)	$	42,040		$	30,461		$	3,918		$	6,709		$	952

⁽¹⁾ Net Operating Income (“NOI”) is used to measure the operating performance of a property. NOI consists of property-related revenue (which includes rental income, tenant reimbursement income and certain other income) less operating expenses (which includes building expenses such as cleaning, security, repairs and maintenance, utilities, property administration and real estate taxes). We use NOI internally as a performance measure and believe it provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Other real estate companies may use different methodologies for calculating NOI, and accordingly, our presentation of NOI may not be comparable to other real estate companies.

The following table provides a reconciliation of NOI to net (loss) income attributable to common stockholders for the years ended December 31, 2016 and 2015 and for the period from November 24, 2014 to December 31, 2014.

	The Company
							Period from
	For the Year Ended December 31,						November 24, 2014
(Amounts in thousands)	2016			2015			to December 31, 2014
NOI	$	433,565		$	423,986		$	42,040
Add (subtract) adjustments to arrive to net (loss) income:
Fee income		16,931			10,248			1,176
Depreciation and amortization expense		(269,450	)		(294,624	)		(34,481	)
General and administrative expenses		(53,510	)		(42,056	)		(2,207	)
Transaction related costs		(2,404	)		(4,483	)		-
Formation related costs		-			-			(143,437	)
Transfer taxes due in connection with the sale of shares    by a former joint venture partner		-			(5,872	)		-
NOI from unconsolidated joint ventures		(17,195	)		(16,580	)		(1,680	)
Income from unconsolidated joint ventures		7,413			6,850			938
Income from real estate fund investments		-			37,975			-
Loss from unconsolidated real estate funds		(498	)		-			-
Interest and other income (loss), net		6,934			871			(179	)
Interest and debt expense		(157,746	)		(168,366	)		(43,743	)
Unrealized gain on interest rate swaps		39,814			75,760			15,084
Gain on consolidation of an unconsolidated joint venture		-			-			239,716
Net income before income taxes		3,854			23,709			73,227
Income tax expense		(1,785	)		(2,566	)		(505	)
Net income		2,069			21,143			72,722
Less: net (income) loss attributable to    noncontrolling interests in:
Consolidated real estate funds		1,316			(21,173	)		(135	)
Consolidated joint ventures		(15,423	)		(5,459	)		(1,353	)
Operating Partnership		2,104			1,070			(13,926	)
Net (loss) income attributable to common stockholders	$	(9,934	)	$	(4,419	)	$	57,308

(Amounts in thousands)	As of December 31, 2016
Balance Sheet Data:	Total		New York		Washington, D.C.		San Francisco		Other
Total assets	$	8,867,168	$	5,617,344	$	1,075,350	$	1,913,747	$	260,727
Total liabilities		3,981,221		2,444,101		204,020		980,460		352,640
Total equity		4,885,947		3,173,243		871,330		933,287		(91,913	)

The Predecessor

Our Predecessor historically operated an integrated business that consisted of three reportable segments, (i) Owned Properties, (ii) Managed Funds and (iii) a Management Company. The Owned Properties segment consisted of properties in which our Predecessor had a direct or indirect ownership interest, other than properties that it owned through its private equity real estate funds. The Managed Funds segment consisted of the private equity real estate funds. In addition, our Predecessor included a Management Company that performed property management and asset management services and certain general and administrative level functions, including legal and accounting, as a separate reportable segment.   

The following tables provide selected results for each reportable segment for the period from January 1, 2014 to November 23, 2014.

	Period from January 1, 2014 to November 23, 2014
	Owned			Managed			Management
(Amounts in thousands)	Properties			Funds			Company			Eliminations			Total
Income Statement data:
Revenues
Rental income	$	27,774		$	2,434		$	-		$	-		$	30,208
Tenant reimbursement income		1,646			-			-			-			1,646
Distributions from real estate fund investments		-			17,083			-			-			17,083
Realized and unrealized gains, net		-			129,354			-			-			129,354
Fee and other income		-			-			74,686			(25,588	)		49,098
Total revenues		29,420			148,871			74,686			(25,588	)		227,389
Total expenses		20,553			27,995			54,032			(25,588	)		76,992
Operating income		8,867			120,876			20,654			-			150,397
Income from unconsolidated joint ventures		4,241			-			48,683			(48,683	)		4,241
Unrealized loss on interest rate swaps		-			(673	)		-			-			(673	)
Interest and other income, net		2,004			388			87			-			2,479
Interest and debt expense		(11,157	)		(17,323	)		(105	)		-			(28,585	)
Net income before income taxes		3,955			103,268			69,319			(48,683	)		127,859
Income tax expense		-			-			(18,461	)		-			(18,461	)
Net income		3,955			103,268			50,858			(48,683	)		109,398
Net income attributable to noncontrolling interests		-			(87,888	)		-			-			(87,888	)
Net income attributable to the Predecessor	$	3,955		$	15,380		$	50,858		$	(48,683	)	$	21,510