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 owned 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 real estate expenses. Real estate expenses consist of property operating expenses and real estate tax expense and do not include property management expense. 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 six month periods ended October 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 October 31, 2018	Multifamily		All Other		Total
Real estate revenue	$	43,874	$	1,764	$	45,638
Real estate expenses	18,768		568		19,336
Net operating income	$	25,106	$	1,196	$	26,302
Property management expenses					(1,319		)
Casualty loss					(225		)
Depreciation and amortization					(19,191		)
General and administrative expenses					(3,374		)
Interest expense					(7,997		)
Loss on debt extinguishment					(4		)
Interest and other income					429
Income (loss) before gain on sale of real estate and other investments and income (loss) from discontinued operations					(5,379		)
Gain (loss) on sale of real estate and other investments					(232		)
Income (loss) from continuing operations					(5,611		)
Income (loss) from discontinued operations					—
Net income (loss)					$	(5,611	)



	(in thousands)
Three Months Ended October 31, 2017	Multifamily		All Other		Total
Real estate revenue	$	37,457	$	4,409	$	41,866
Real estate expenses	17,201		1,517		18,718
Net operating income	$	20,256	$	2,892	$	23,148
Property management expenses					(1,372		)
Casualty loss					(115		)
Depreciation and amortization					(17,270		)
General and administrative expenses					(3,118		)
Interest expense					(8,509		)
Loss on debt extinguishment					(334		)
Interest and other income					255
Income (loss) before gain on sale of real estate and other investments and income (loss) from discontinued operations					(7,315		)
Gain (loss) on sale of real estate and other investments					5,324
Income (loss) from continuing operations					(1,991		)
Income (loss) from discontinued operations					15,130
Net income (loss)					$	13,139



	(in thousands)
Six Months Ended October 31, 2018	Multifamily		All Other		Total
Real estate revenue	$	86,963	$	4,621	$	91,584
Real estate expenses	37,254		1,611		38,865
Net operating income	$	49,709	$	3,010	$	52,719
Property management expenses					(2,686		)
Casualty loss					(450		)
Depreciation and amortization					(37,803		)
Impairment of real estate investments					—
General and administrative expenses					(7,244		)
Interest expense					(16,382		)
Loss on debt extinguishment					(556		)
Interest and other income					945
Income (loss) before gain on sale of real estate and other investments and income (loss) from discontinued operations					(11,457		)
Gain (loss) on sale of real estate and other investments					8,992
Income (loss) from continuing operations					(2,465		)
Income (loss) from discontinued operations					570
Net income (loss)					$	(1,895	)



	(in thousands)
Six Months Ended October 31, 2017	Multifamily		All Other		Total
Real estate revenue	$	73,455	$	9,389	$	82,844
Real estate expenses	32,934		3,311		36,245
Net operating income	$	40,521	$	6,078	$	46,599
Property management expenses					(2,728		)
Casualty loss					(600		)
Depreciation and amortization					(42,608		)
Impairment of real estate investments					(256		)
General and administrative expenses					(7,120		)
Interest expense					(16,640		)
Loss on debt extinguishment					(533		)
Interest and other income					483
Income (loss) before gain on sale of real estate and other investments and income (loss) from discontinued operations					(23,403		)
Gain (loss) on sale of real estate and other investments					5,448
Income (loss) from continuing operations					(17,955		)
Income (loss) from discontinued operations					17,815
Net income (loss)					$	(140	)

Segment Assets and Accumulated Depreciation

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



	(in thousands)
As of October 31, 2018	Multifamily			All Other			Total
Segment assets
Property owned	$	1,580,260		$	57,812		$	1,638,072
Less accumulated depreciation	(328,075		)	(16,940		)	(345,015		)
Total property owned	$	1,252,185		$	40,872		$	1,293,057
Cash and cash equivalents							12,777
Restricted cash							5,085
Other assets							29,769
Unimproved land							6,522
Mortgage loans receivable							10,530
Total Assets							$	1,357,740



	(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