SEGMENT REPORTING

We operate in a single reportable segment, which includes the ownership, management, development, redevelopment, and acquisition of apartment communities. 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 apartment communities have similar long-term economic characteristics and provide similar products and services to our residents. No apartment community comprises more than 10% of consolidated revenues, profits, or assets. Accordingly, our apartment communities 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 therefore is included in “all other” with other non-multifamily properties. As of July 31, 2018, we no longer own any healthcare 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 property operating expenses and real estate tax expense combined (referred to as "real estate 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 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-month periods ended July 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 July 31, 2018	Multifamily		All Other		Total
Real estate revenue	$	43,089	$	2,857	$	45,946
Real estate expenses	18,486		1,043		19,529
Net operating income	$	24,603	$	1,814	$	26,417
Property management expenses					(1,367		)
Casualty loss					(225		)
Depreciation and amortization					(18,612		)
General and administrative expenses					(3,870		)
Interest expense					(8,385		)
Loss on debt extinguishment					(552		)
Interest and other income					516
Loss before gain on sale of real estate and other investments and income from discontinued operations					(6,078		)
Gain on sale of real estate and other investments					9,224
Income (loss) from continuing operations					3,146
Income (loss) from discontinued operations					570
Net income (loss)					$	3,716



	(in thousands)
Three Months Ended July 31, 2017	Multifamily		All Other		Total
Real estate revenue	$	35,999	$	4,979	$	40,978
Real estate expenses	15,734		1,793		17,527
Net operating income	$	20,265	$	3,186	$	23,451
Property management expenses					(1,356		)
Casualty loss					(485		)
Depreciation and amortization					(25,338		)
Loss on impairment					(256		)
General and administrative expenses					(4,002		)
Interest expense					(8,131		)
Loss on debt extinguishment					(199		)
Interest and other income					228
Loss before gain on sale of real estate and other investments and income from discontinued operations					(16,088		)
Gain on sale of real estate and other investments					124
Income (loss) from continuing operations					(15,964		)
Income (loss) from discontinued operations					2,685
Net income (loss)					$	(13,279	)

Segment Assets and Accumulated Depreciation

Segment assets are summarized as follows as of July 31, 2018, and April 30, 2018, respectively, along with reconciliations to the condensed consolidated financial statements:



	(in thousands)
As of July 31, 2018	Multifamily			All Other			Total
Segment assets
Property owned	$	1,576,345		$	59,888		$	1,636,233
Less accumulated depreciation	(309,862		)	(16,910		)	(326,772		)
Total property owned	$	1,266,483		$	42,978		$	1,309,461
Cash and cash equivalents							16,261
Restricted cash							4,103
Other assets							27,885
Unimproved land							7,926
Mortgage loans receivable							10,530
Total Assets							$	1,376,166



	(in thousands)
As of April 30, 2018	Multifamily			All Other			Total
Segment assets
Property owned	$	1,606,421		$	63,343		$	1,669,764
Less accumulated depreciation	(294,477		)	(16,847		)	(311,324		)
Total property owned	$	1,311,944		$	46,496		$	1,358,440
Cash and cash equivalents							11,891
Restricted cash							4,225
Other assets							30,297
Unimproved land							11,476
Mortgage loans receivable							10,329
Total Assets							$	1,426,658