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Segment Information
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment Information
Segment Information

We review operating and financial data for each property on an individual basis; therefore, each of our individual properties is a separate operating segment. As a result of the Formation Transaction, 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 ("CODM"), makes key operating decisions, evaluates financial results, allocates resources and manages our business. Accordingly, we aggregate our operating segments into three reportable segments (office, multifamily, and third-party real estate services) based on the economic characteristics and nature of our assets and services. In connection therewith, we have reclassified the prior period segment financial data to conform to the current period presentation.

The CODM measures and evaluates the performance of our operating segments, with the exception of the third-party real estate services business, based on the net operating income ("NOI") of properties within each segment. NOI includes property rental revenues and tenant reimbursements and deducts property operating expenses and real estate taxes.

With respect to the third-party real estate services business, the CODM reviews revenues streams generated by this segment ("Third-party real estate services, including reimbursements"), as well as the expenses attributable to the segment ("General and administrative: third-party real estate services"), which are disclosed separately in the statements of operations. Management company assets primarily consist of management and leasing contracts with a net book value of $42.1 million and $45.7 million and classified in "Other assets, net" in the balance sheets as of June 30, 2018 and December 31, 2017. Consistent with internal reporting presented to our CODM and our definition of NOI, the third-party real estate services operating results are excluded from the NOI data below.

The following table reflects the reconciliation of net income attributable to common shareholders to consolidated NOI:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2018
 
2017
 
2018
 
2017
 
(In thousands)
Net income attributable to common shareholders
$
20,574

 
$
11,341

 
$
16,384

 
$
17,659

Add:
 
 
 
 
 
 
 
Depreciation and amortization expense
48,117

 
31,993

 
97,277

 
65,775

General and administrative expense:
 
 
 
 
 
 
 
Corporate and other
12,651

 
11,552

 
25,362

 
24,944

Third-party real estate services
21,189

 
4,486

 
43,798

 
9,184

Share-based compensation related to Formation Transaction
9,097

 

 
18,525

 

Transaction and other costs
3,787

 
5,237

 
8,008

 
11,078

Interest expense
18,027

 
14,586

 
37,284

 
28,504

Loss on extinguishment of debt
4,457

 

 
4,457

 

Reduction of gain on bargain purchase
7,606

 

 
7,606

 

Income tax expense (benefit)
313

 
363

 
(595
)
 
717

Net income attributable to redeemable noncontrolling interests
3,574

 

 
2,980

 

Less:
 
 
 
 
 
 
 
Third-party real estate services, including reimbursements
24,160

 
6,794

 
48,490

 
13,919

Other income
2,080

 
1,532

 
3,196

 
3,114

Income from unconsolidated real estate ventures, net
3,836

 
105

 
1,934

 
314

Interest and other income, net
513

 
970

 
1,086

 
1,745

Gain on sale of real estate
33,396

 

 
33,851

 

Net loss attributable to noncontrolling interests
125

 

 
127

 

Consolidated NOI
$
85,282

 
$
70,157

 
$
172,402

 
$
138,769



Below is a summary of NOI by segment:

 
Three Months Ended June 30, 2018
 
Office
 
Multifamily
 
Other
 
Elimination of Intersegment Activity
 
Total
 
(In thousands)
Rental revenue:
 
 
 
 
 
 
 
 
 
Property rentals
$
97,485

 
$
25,410

 
$
2,604

 
$
(259
)
 
$
125,240

Tenant reimbursements
6,370

 
1,491

 
106

 

 
7,967

Total rental revenue
103,855

 
26,901

 
2,710

 
(259
)
 
133,207

Rental expense:
 
 
 
 
 

 
 
 
Property operating
26,414

 
7,588

 
1,887

 
(5,473
)
 
30,416

Real estate taxes
12,201

 
3,557

 
1,751

 

 
17,509

Total rental expense
38,615

 
11,145

 
3,638

 
(5,473
)
 
47,925

Consolidated NOI
$
65,240

 
$
15,756

 
$
(928
)
 
$
5,214

 
$
85,282


 
Three Months Ended June 30, 2017
 
Office
 
Multifamily
 
Other
 
Elimination of Intersegment Activity
 
Total
 
(In thousands)
Rental revenue:
 
 
 
 
 
 
 
 
 
Property rentals
$
78,624

 
$
19,974

 
$
2,975

 
$
(826
)
 
$
100,747

Tenant reimbursements
7,562

 
1,133

 
252

 

 
8,947

Total rental revenue
86,186

 
21,107

 
3,227

 
(826
)
 
109,694

Rental expense:
 
 
 
 
 
 
 
 
 
Property operating
22,022

 
4,868

 
482

 
(3,417
)
 
23,955

Real estate taxes
12,273

 
2,528

 
781

 

 
15,582

Total rental expense
34,295

 
7,396

 
1,263

 
(3,417
)
 
39,537

Consolidated NOI
$
51,891

 
$
13,711

 
$
1,964

 
$
2,591

 
$
70,157


 
Six Months Ended June 30, 2018
 
Office
 
Multifamily
 
Other
 
Elimination of Intersegment Activity
 
Total
 
(In thousands)
Rental revenue:
 
 
 
 
 
 
 
 
 
Property rentals
$
198,800

 
$
49,477

 
$
4,112

 
$
(498
)
 
$
251,891

Tenant reimbursements
15,444

 
3,215

 
248

 

 
18,907

Total rental revenue
214,244

 
52,692

 
4,360

 
(498
)
 
270,798

Rental expense:
 
 
 
 
 

 
 
 
Property operating
54,580

 
14,682

 
2,743

 
(10,728
)
 
61,277

Real estate taxes
26,966

 
7,055

 
3,098

 

 
37,119

Total rental expense
81,546

 
21,737

 
5,841

 
(10,728
)
 
98,396

Consolidated NOI
$
132,698

 
$
30,955

 
$
(1,481
)
 
$
10,230

 
$
172,402


 
Six Months Ended June 30, 2017
 
Office
 
Multifamily
 
Other
 
Elimination of Intersegment Activity
 
Total
 
(In thousands)
Rental revenue:
 
 
 
 
 
 
 
 
 
Property rentals
$
157,920

 
$
38,633

 
$
4,880

 
$
(1,662
)
 
$
199,771

Tenant reimbursements
14,821

 
2,223

 
444

 

 
17,488

Total rental revenue
172,741

 
40,856

 
5,324

 
(1,662
)
 
217,259

Rental expense:
 
 
 
 
 

 
 
 
Property operating
43,409

 
9,921

 
1,150

 
(6,744
)
 
47,736

Real estate taxes
24,120

 
5,021

 
1,613

 

 
30,754

Total rental expense
67,529

 
14,942

 
2,763

 
(6,744
)
 
78,490

Consolidated NOI
$
105,212

 
$
25,914

 
$
2,561

 
$
5,082

 
$
138,769


The following is a summary of certain balance sheet data by segment:
 
Office
 
Multifamily
 
Other
 
Elimination of Intersegment Activity
 
Total
June 30, 2018
(In thousands)
Real estate, at cost
$
3,657,696

 
$
1,548,770

 
$
665,482

 
$

 
$
5,871,948

Investments in and advances to
   unconsolidated real estate ventures
221,077

 
101,105

 
46,126

 

 
368,308

Total assets
3,533,869

 
1,435,384

 
1,138,597

 
(192,901
)
 
5,914,949

December 31, 2017
 
 
 
 
 
 
 
 
 
Real estate, at cost
$
3,953,314

 
$
1,476,423

 
$
587,767

 
$

 
$
6,017,504

Investments in and advances to
unconsolidated real estate ventures
124,659

 
98,835

 
38,317

 

 
261,811

Total assets
3,542,977

 
1,434,999

 
1,299,085

 
(205,254
)
 
6,071,807