SEGMENT REPORTING

9 Months Ended

Sep. 30, 2019

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.

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, including real estate taxes. We believe that NOI is an important supplemental measure of operating performance for real estate because it provides a measure of operations that is unaffected by depreciation, amortization, financing, property management overhead, casualty losses, and general and administrative expense. NOI does not represent cash generated by operating activities in accordance with 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 following tables present NOI for the three and nine months ended September 30, 2019 and 2018, respectively, along with reconciliations to net income in 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 September 30, 2019	Multifamily		All Other		Total
Revenue	$	43,916	$	3,520	$	47,436
Property operating expenses, including real estate taxes	18,455		1,455		19,910
Net operating income	$	25,461	$	2,065	$	27,526
Property management					(1,553		)
Casualty gain (loss)					(178		)
Depreciation and amortization					(18,751		)
General and administrative expenses					(3,448		)
Interest expense					(7,694		)
Loss on debt extinguishment					(1,087		)
Interest and other income					498
Income (loss) before gain (loss) on sale of real estate and other investments and gain (loss) on litigation settlement					(4,687		)
Gain (loss) on sale of real estate and other investments					39,105
Gain (loss) on litigation settlement					300
Net income (loss)					$	34,718



	(in thousands)
Three Months Ended September 30, 2018	Multifamily		All Other		Total
Revenue	$	40,885	$	4,521	$	45,406
Property operating expenses, including real estate taxes	17,491		1,996		19,487
Net operating income	$	23,394	$	2,525	$	25,919
Property management					(1,269		)
Casualty gain (loss)					(225		)
Depreciation and amortization					(19,164		)
General and administrative expenses					(3,147		)
Interest expense					(8,193		)
Loss on debt extinguishment					(540		)
Interest and other income					395
Income (loss) before gain (loss) on sale of real estate and other investments and income (loss) from discontinued operations					(6,224		)
Gain (loss) on sale of real estate and other investments					9,095
Income (loss) from continuing operations					2,871
Income (loss) from discontinued operations					570
Net income (loss)					$	3,441



	(in thousands)
Nine Months Ended September 30, 2019	Multifamily		All Other		Total
Real estate revenue	$	129,457	$	10,521	$	139,978
Real estate expenses	54,888		4,574		59,462
Net operating income	$	74,569	$	5,947	$	80,516
Property management expenses					(4,552		)
Casualty gain (loss)					(911		)
Depreciation and amortization					(55,299		)
General and administrative expenses					(10,803		)
Interest expense					(23,180		)
Loss on debt extinguishment					(1,496		)
Interest and other income					1,390
Income (loss) before gain (loss) on sale of real estate and other investments and gain (loss) on litigation settlement					(14,335		)
Gain (loss) on sale of real estate and other investments					39,774
Gain (loss) on litigation settlement					6,586
Net income (loss)					$	32,025



	(in thousands)
Nine Months Ended September 30, 2018	Multifamily		All Other		Total
Real estate revenue	$	119,069	$	15,569	$	134,638
Real estate expenses	51,342		6,349		57,691
Net operating income	$	67,727	$	9,220	$	76,947
Property management expenses					(4,090		)
Casualty gain (loss)					(275		)
Depreciation and amortization					(58,812		)
Impairment of real estate investments					(17,809		)
General and administrative expenses					(11,114		)
Interest expense					(25,051		)
Loss on debt extinguishment					(673		)
Interest and other income					1,544
Income (loss) before gain (loss) on sale of real estate and other investments and income (loss) from discontinued operations					(39,333		)
Gain (loss) on sale of real estate and other investments					11,399
Income (loss) from continuing operations					(27,934		)
Income (loss) from discontinued operations					14,690
Net income (loss)					$	(13,244	)

Segment Assets and Accumulated Depreciation

Segment assets are summarized as follows as of September 30, 2019, and December 31, 2018, respectively, along with reconciliations to the condensed consolidated financial statements:



	(in thousands)
As of September 30, 2019	Multifamily			All Other			Total
Segment assets
Property owned	$	1,684,943		$	35,409		$	1,720,352
Less accumulated depreciation	(360,955		)	(9,537		)	(370,492		)
Total property owned	$	1,323,988		$	25,872		$	1,349,860
Cash and cash equivalents							8,500
Restricted cash							3,339
Other assets							30,589
Unimproved land							1,376
Mortgage loans receivable							10,140
Total Assets							$	1,403,804



	(in thousands)
As of December 31, 2018	Multifamily			All Other			Total
Segment assets
Property owned	$	1,582,917		$	44,719		$	1,627,636
Less accumulated depreciation	(340,081		)	(13,790		)	(353,871		)
Total property owned	$	1,242,836		$	30,929		$	1,273,765
Cash and cash equivalents							13,792
Restricted cash							5,464
Other assets							27,265
Unimproved land							5,301
Mortgage loans receivable							10,410
Total Assets							$	1,335,997