SEGMENT REPORTING

6 Months Ended

Oct. 31, 2017

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 5 • SEGMENT REPORTING

We report our results in two reportable segments, which are aggregations of similar properties: multifamily and healthcare. We measure the performance of our segments based on net operating income (“NOI”), which we define as total real estate revenues less real estate expenses (which consist of utilities, maintenance, real estate taxes, insurance, property management expenses and other property expenses). 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, 2017 and 2016, 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, 2017	Multifamily		Healthcare		All Other		Amounts Not Allocated To Segments(1)		Total
Real estate revenue	$	39,734	$	11,449	$	2,738	$	—	$	53,921
Real estate expenses		18,888		4,373		698		1,338		25,297
Net operating income (loss)	$	20,846	$	7,076	$	2,040	$	(1,338)	$	28,624
Depreciation and amortization										(20,694)
General and administrative expenses										(3,118)
Interest expense										(9,666)
Loss on debt extinguishment										(334)
Interest and other income										256
Loss before gain on sale of real estate and other investments and income from discontinued operations										(4,932)
Gain on sale of real estate and other investments										5,324
Income from continuing operations										392
Income from discontinued operations										12,747
Net income									$	13,139

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

	(in thousands)
Three Months Ended October 31, 2016	Multifamily		Healthcare		All Other		Amounts Not Allocated To Segments(1)			Total
Real estate revenue	$	36,187	$	11,661	$	2,761	$	—	$	50,609
Real estate expenses		15,566		4,151		730		1,126		21,573
Net operating income (loss)	$	20,621	$	7,510	$	2,031	$	(1,126)		29,036
Depreciation and amortization										(13,531)
General and administrative expenses										(3,522)
Interest expense										(10,626)
Interest and other income										93
Gain before loss on sale of real estate and other investments and income from discontinued operations										1,450
Loss on sale of real estate and other investments										(103)
Income from continuing operations										1,347
Income from discontinued operations										10,943
Net income									$	12,290

	(in thousands)
Six Months Ended October 31, 2017	Multifamily		Healthcare		All Other		Amounts Not Allocated To Segments(1)		Total
Real estate revenue	$	78,164	$	22,827	$	5,665		—	$	106,656
Real estate expenses		36,353		8,658		1,491		3,045		49,547
Net operating income (loss)	$	41,811	$	14,169	$	4,174		(3,045)		57,109
Depreciation and amortization										(49,621)
Impairment of real estate investments										(256)
General and administrative expenses										(7,120)
Interest expense										(18,961)
Loss on debt extinguishment										(533)
Interest and other income										487
Loss before gain on sale of real estate and other investments and income from discontinued operations										(18,895)
Gain on sale of real estate and other investments										5,448
Loss from continuing operations										(13,447)
Income from discontinued operations										13,307
Net loss									$	(140)

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

	(in thousands)
Six Months Ended October 31, 2016	Multifamily		Healthcare		All Other		Amounts Not Allocated To Segments(1)			Total
Real estate revenue	$	71,229	$	23,202	$	5,789	$	—	$	100,220
Real estate expenses		30,445		8,343		1,456		2,963		43,207
Net operating income (loss)	$	40,784	$	14,859	$	4,333	$	(2,963)		57,013
Depreciation and amortization										(27,798)
Impairment of real estate investments										(54,153)
General and administrative expenses										(7,023)
Interest expense										(20,990)
Interest and other income										281
Loss before gain on sale of real estate and other investments										(52,670)
Gain on sale of real estate and other investments										8,855
Loss from continuing operations										(43,815)
Income from discontinued operations										15,511
Net loss									$	(28,304)

(1) Consists of offsite costs for 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, 2017, and April 30, 2017, along with reconciliations to the condensed consolidated financial statements:

	(in thousands)
As of October 31, 2017	Multifamily		Healthcare		All Other		Total
Segment assets
Property owned	$	1,409,598	$	321,863	$	99,720	$	1,831,181
Less accumulated depreciation		(269,976)		(91,948)		(22,478)		(384,402)
Total property owned	$	1,139,622	$	229,915	$	77,242	$	1,446,779
Cash and cash equivalents								42,464
Mortgage loans receivable								10,329
Receivables and other assets								36,239
Unimproved land								15,216
Total Assets							$	1,551,027

	(in thousands)
As of April 30, 2017	Multifamily		Healthcare		All Other		Total
Segment assets
Property owned	$	1,251,716	$	323,148	$	102,617	$	1,677,481
Less accumulated depreciation		(232,183)		(86,139)		(22,095)		(340,417)
Total property owned	$	1,019,533	$	237,009	$	80,522	$	1,337,064
Assets held for sale and assets from discontinued operations								37,708
Cash and cash equivalents								28,819
Receivables and other assets								52,468
Unimproved land								18,455
Total Assets							$	1,474,514