SEGMENT REPORTING

9 Months Ended

Jan. 31, 2018

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

We operate in a single reportable segment which includes the ownership, management, development, redevelopment, and acquisition of multifamily properties. Each of our operating properties is considered a separate operating segment because each property earns revenues, incurs expenses, and has discrete financial information. Our chief operating decision-makers evaluate each property's operating results to make decisions about resources to be allocated and to assess performance. We do not group our operations based on geography, size, or type. Our multifamily properties have similar long-term economic characteristics and provide similar products and services to our tenants. No multifamily property comprises more than 10% of consolidated revenues, profit, or assets. Accordingly, our multifamily properties are aggregated into a single reportable segment.

Prior to the third quarter of fiscal year 2018, we reported our results in two reportable segments: multifamily and healthcare. We sold substantially all of our healthcare portfolio during the third quarter of fiscal year 2018 and classified it as discontinued operations (see Note 7 for additional information). Healthcare no longer meets the quantitative thresholds for reporting as a separate reportable segment and is included in “all other” with other non-multifamily properties.

Our executive management team comprises our chief operating decision-makers. This team measures the performance of our reportable segment based on net operating income (“NOI”), which we define as total real estate revenues less direct real estate expenses (including real estate taxes). 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 operations that is unaffected by depreciation, amortization, financing, and general and administrative expenses. NOI does not represent cash generated by operating activities in accordance with U.S. 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 the multifamily reportable segment are summarized as follows for the three- and nine-month periods ended January 31, 2018 and 2017, respectively, 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 January 31, 2018	Multifamily		All Other		Amounts Not Allocated To Segments(1)			Total
Real estate revenue	$	41,279	$	1,975	—			$	43,254
Real estate expenses	18,231		549		$	1,255		20,035
Net operating income (loss)	$	23,048	$	1,426	$	(1,255	)	$	23,219
Depreciation and amortization								(18,390		)
General and administrative expenses								(3,011		)
Interest expense								(9,236		)
Loss on debt extinguishment								(285		)
Interest and other income								433
Loss before gain on sale of real estate and other investments and income from discontinued operations								(7,270		)
Gain on sale of real estate and other investments								12,387
Income from continuing operations								5,117
Income from discontinued operations								146,811
Net income								$	151,928

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

	(in thousands)
Three Months Ended January 31, 2017	Multifamily		All Other		Amounts Not Allocated To Segments(1)			Total
Real estate revenue	$	36,171	$	4,057	—			$	40,228
Real estate expenses	16,336		1,000		$	1,283		18,619
Net operating income (loss)	$	19,835	$	3,057	$	(1,283	)	$	21,609
Depreciation and amortization								(10,787		)
General and administrative expenses								(4,172		)
Interest expense								(8,832		)
Loss on debt extinguishment								(458		)
Interest and other income								427
Loss before gain on sale of real estate and other investments and income from discontinued operations								(2,213		)
Gain on sale of real estate and other investments								2,437
Income from continuing operations								224
Income from discontinued operations								24,965
Net income								$	25,189

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

	(in thousands)
Nine Months Ended January 31, 2018	Multifamily		All Other		Amounts Not Allocated To Segments(1)			Total
Real estate revenue	$	119,444	$	7,936	—			$	127,380
Real estate expenses	54,584		2,102		$	4,204		60,890
Net operating income (loss)	$	64,860	$	5,834	$	(4,204	)	$	66,490
Depreciation and amortization								(60,998		)
Impairment of real estate investments								(256		)
General and administrative expenses								(10,131		)
Interest expense								(25,876		)
Loss on debt extinguishment								(818		)
Interest and other income								916
Loss before gain on sale of real estate and other investments and income from discontinued operations								(30,673		)
Gain on sale of real estate and other investments								17,835
Loss from continuing operations								(12,838		)
Income from discontinued operations								164,626
Net income								$	151,788

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

	(in thousands)
Nine Months Ended January 31, 2017	Multifamily		All Other		Amounts Not Allocated To Segments(1)			Total
Real estate revenue	$	107,400	$	11,307	—			$	118,707
Real estate expenses	46,781		2,787		$	4,002		53,570
Net operating income (loss)	$	60,619	$	8,520	$	(4,002	)	$	65,137
Depreciation and amortization								(33,193		)
Impairment of real estate investments								(54,153		)
General and administrative expenses								(11,195		)
Interest expense								(26,033		)
Loss on debt extinguishment								(458		)
Interest and other income								685
Loss before gain on sale of real estate and other investments and income from discontinued operations								(59,210		)
Gain on sale of real estate and other investments								11,292
Loss from continuing operations								(47,918		)
Income from discontinued operations								44,803
Net loss								$	(3,115	)

(1) Consists of off-site 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 January 31, 2018, and April 30, 2017, respectively, along with reconciliations to the condensed consolidated financial statements:

	(in thousands)
As of January 31, 2018	Multifamily			All Other			Total
Segment assets
Property owned	$	1,495,944		$	72,781		$	1,568,725
Less accumulated depreciation	(285,460		)	(18,689		)	(304,149		)
Total property owned	$	1,210,484		$	54,092		$	1,264,576
Mortgage loans receivable							10,329
Cash and cash equivalents							22,666
Restricted cash							121,337
Other assets							21,664
Unimproved land							15,123
Total Assets							$	1,455,695

	(in thousands)
As of April 30, 2017	Multifamily			All Other			Total
Segment assets
Property owned	$	1,260,541		$	97,988		$	1,358,529
Less accumulated depreciation	(232,592		)	(23,007		)	(255,599		)
Total property owned	$	1,027,949		$	74,981		$	1,102,930
Assets held for sale and assets from discontinued operations							283,023
Cash and cash equivalents							28,819
Restricted cash							27,981
Other assets							13,306
Unimproved land							18,455
Total Assets							$	1,474,514