SEGMENT REPORTING

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

SEGMENT REPORTING

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 and do not group the properties based on geography, size, or type for this purpose. 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. “All other” includes non-multifamily components of mixed-use properties and apartment communities we have sold.

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 months ended March 31, 2021 and 2020, 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 March 31, 2021	Multifamily		All Other		Total
Revenue	$	45,983	$	665	$	46,648
Property operating expenses, including real estate taxes	18,881		360		19,241
Net operating income	$	27,102	$	305	$	27,407
Property management					(1,767)
Casualty gain (loss)					(101)
Depreciation and amortization					(19,992)
General and administrative expenses					(3,906)
Interest expense					(7,231)
Interest and other income					431
Net income (loss)					$	(5,159)

	(in thousands)
Three Months Ended March 31, 2020	Multifamily		All Other		Total
Revenue	$	41,845	$	2,561	$	44,406
Property operating expenses, including real estate taxes	17,660		1,273		18,933
Net operating income	$	24,185	$	1,288	$	25,473
Property management					(1,554)
Casualty gain (loss)					(327)
Depreciation and amortization					(18,160)
General and administrative expenses					(3,428)
Interest expense					(6,911)
Interest and other income					(2,777)
Net income (loss)					$	(7,684)

Segment Assets and Accumulated Depreciation

Segment assets are summarized as follows as of March 31, 2021, and December 31, 2020, respectively, along with reconciliations to the condensed consolidated financial statements:

	(in thousands)
As of March 31, 2021	Multifamily		All Other		Total
Segment assets
Property owned	$	1,850,310	$	33,097	$	1,883,407
Less accumulated depreciation	(396,743)		(11,271)		(408,014)
Total property owned	$	1,453,567	$	21,826	$	1,475,393
Mortgage loans receivable					30,107
Cash and cash equivalents					10,816
Restricted cash					1,610
Other assets					18,427
Total Assets					$	1,536,353

	(in thousands)
As of December 31, 2020	Multifamily		All Other		Total
Segment assets
Property owned	$	1,779,378	$	33,179	$	1,812,557
Less accumulated depreciation	(387,989)		(11,260)		(399,249)
Total property owned	$	1,391,389	$	21,919	$	1,413,308
Mortgage loans receivable					24,661
Cash and cash equivalents					392
Restricted cash					6,918
Other assets					18,904
Total Assets					$	1,464,183