SEGMENT REPORTING

6 Months Ended

Oct. 31, 2016

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

NOTE 5 • SEGMENT REPORTING

We report our results in two reportable segments, which are aggregations of similar properties: multifamily and healthcare, excluding our senior housing properties, which are classified as held for sale and discontinued operations at October 31, 2016.   

We measure the performance of our segments based on net operating income (“NOI”), which we define as total real estate revenues and gain on involuntary conversion less real estate expenses (which consist of utilities, maintenance, real estate taxes, insurance, property management expenses and other property expenses). During the first quarter of fiscal year 2017, we removed offsite costs associated with property management and casualty-related amounts from our assessment of segment performance as a result of our announced strategic shift to focus solely on our multifamily segment. These expenses were removed from the operating results reviewed by our chief operating decision maker to allow for the assessment of direct property costs in NOI, excluding allocated costs. We believe that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of core operations that is unaffected by depreciation, amortization, financing and general and administrative expense. NOI does not represent cash generated by operating activities in accordance with US GAAP and should not be considered an alternative to net income, net income available for common shareholders or cash flow from operating activities as a measure of financial performance.

The revenues and NOI for these reportable segments are summarized as follows for the three and six month periods ended October 31, 2016 and 2015, along with reconciliations to the condensed consolidated financial statements. Segment assets are also reconciled to total assets as reported in the condensed consolidated financial statements.

	(in thousands)
Three Months Ended October 31, 2016	Multifamily		Healthcare		All Other		Amounts Not Allocated To Segments(1)		Total
Real estate revenue	$	36,250	$	11,661	$	2,698	$	—	$	50,609
Real estate expenses		15,566		4,151		730		1,126		21,573
Net operating income (loss)	$	20,684	$	7,510	$	1,968	$	(1,126)	$	29,036
Depreciation and amortization										(13,531)
General and administrative expenses										(2,702)
Acquisition and investment related costs										(4)
Other expenses										(816)
Interest expense										(10,626)
Interest and other income										637
Income before loss on sale of real estate and other investments and income from discontinued operations										1,994
Loss on sale of real estate and other investments										(103)
Income from continuing operations										1,891
Income from discontinued operations										10,399
Net income									$	12,290

	(in thousands)
Six Months Ended October 31, 2016	Multifamily		Healthcare		All Other		Amounts Not Allocated To Segments(1)		Total
Real estate revenue	$	71,290	$	23,202	$	5,728		—	$	100,220
Real estate expenses		30,445		8,343		1,456		2,963		43,207
Net operating income (loss)	$	40,845	$	14,859	$	4,272		(2,963)		57,013
Depreciation and amortization										(27,798)
Impairment of real estate investments										(54,153)
General and administrative expenses										(5,308)
Acquisition and investment related costs										(47)
Other expenses										(1,668)
Interest expense										(20,990)
Interest and other income										1,682
Loss before gain on sale of real estate and other investments and income from discontinued operations										(51,269)
Gain on sale of real estate and other investments										8,855
Loss from continuing operations										(42,414)
Income from discontinued operations										14,110
Net loss									$	(28,304)

(1) Consists of offsite costs associated with property management and casualty-related amounts, which are excluded in our assessment of segment performance.

	(in thousands)
Three Months Ended October 31, 2015	Multifamily		Healthcare		All Other		Amounts Not Allocated To Segments(1)			Total
Real estate revenue	$	32,176	$	11,351	$	2,819	$	—	$	46,346
Real estate expenses		14,191		3,834		620		1,306		19,951
Net operating income (loss)	$	17,985	$	7,517	$	2,199	$	(1,306)		26,395
Depreciation and amortization										(12,405)
Impairment of real estate investments										(1,873)
General and administrative expenses										(2,933)
Acquisition and investment related costs										(391)
Other expenses										(813)
Interest expense										(8,741)
Loss on debt extinguishment										(106)
Interest and other income										665
Loss from continuing operations										(202)
Income from discontinued operations										16,879
Net income									$	16,677

	(in thousands)
Six Months Ended October 31, 2015	Multifamily		Healthcare		All Other		Amounts Not Allocated To Segments(1)			Total
Real estate revenue	$	63,609	$	22,130	$	5,652	$	—	$	91,391
Real estate expenses		27,631		7,316		1,228		2,080		38,255
Net operating income (loss)	$	35,978	$	14,814	$	4,424	$	(2,080)		53,136
Depreciation and amortization										(23,622)
Impairment of real estate investments										(3,158)
General and administrative expenses										(5,387)
Acquisition and investment related costs										(398)
Other expenses										(1,230)
Interest expense										(16,555)
Loss on debt extinguishment										(106)
Interest and other income										1,272
Income before gain on sale of real estate and other investments										3,952
Loss on sale of real estate and other investments										(175)
Income from continuing operations										3,777
Income from discontinued operations										17,627
Net income									$	21,404

(1) Consists of offsite costs associated with property management and casualty-related amounts, which are excluded in our assessment of segment performance.

Segment Assets and Accumulated Depreciation

Segment assets are summarized as follows as of October 31, 2016, and April 30, 2016, along with reconciliations to the condensed consolidated financial statements:

	(in thousands)
As of October 31, 2016	Multifamily		Healthcare		All Other		Total
Segment assets
Property owned	$	1,226,198	$	342,242	$	96,914	$	1,665,354
Less accumulated depreciation		(212,922)		(88,669)		(20,199)		(321,790)
Total property owned	$	1,013,276	$	253,573	$	76,715	$	1,343,564
Assets held for sale and assets from discontinued operations								191,233
Cash and cash equivalents								68,729
Receivables and other assets								35,803
Development in progress								20,921
Unimproved land								19,069
Total Assets							$	1,679,319

	(in thousands)
As of April 30, 2016	Multifamily		Healthcare		All Other		Total
Segment assets
Property owned	$	1,243,909	$	337,920	$	99,642	$	1,681,471
Less accumulated depreciation		(209,156)		(83,558)		(20,175)		(312,889)
Total property owned	$	1,034,753	$	254,362	$	79,467	$	1,368,582
Assets held for sale and assets from discontinued operations								220,537
Cash and cash equivalents								66,698
Other investments								50
Receivables and other assets								26,535
Development in progress								51,681
Unimproved land								20,939
Total Assets							$	1,755,022