Reportable Segments

9 Months Ended

Sep. 30, 2015

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Segment Reporting Disclosure [Text Block]

13. Reportable Segments

Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses and about which discrete financial information is available that is evaluated regularly by the chief operating decision maker. The chief operating decision maker decides how resources are allocated and assesses performance on a recurring basis at least quarterly.

The Company’s primary business is the acquisition, development and management of multifamily residential properties, which includes the generation of rental and other related income through the leasing of apartment units to residents. The chief operating decision maker evaluates the Company's operating performance geographically by market and both on a same store and non-same store basis. The Company’s operating segments located in its core markets and two of its non-core markets represent its reportable segments (with the aggregation of Los Angeles, Orange County and San Diego into the Southern California reportable segment). The Company's operating segments located in its non-core – other markets that are not material have also been aggregated in the tables presented below.

The Company’s fee and asset management and development activities are other business activities that do not constitute an operating segment and as such, have been aggregated in the "Other" category in the tables presented below.

All revenues are from external customers and there is no customer who contributed 10% or more of the Company’s total revenues during the nine months and quarters ended September 30, 2015 and 2014, respectively.

The primary financial measure for the Company’s rental real estate segment is net operating income (“NOI”), which represents rental income less: 1) property and maintenance expense; 2) real estate taxes and insurance expense; and 3) property management expense (all as reflected in the accompanying consolidated statements of operations and comprehensive income). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company’s apartment communities. Current year NOI is compared to prior year NOI and current year budgeted NOI as a measure of financial performance.

The following table presents a reconciliation of NOI from our rental real estate specific to continuing operations for the nine months and quarters ended September 30, 2015 and 2014, respectively (amounts in thousands):

	Nine Months Ended September 30,						Quarter Ended September 30,
	2015			2014			2015			2014
Rental income	$	2,035,359		$	1,942,492		$	694,245		$	662,001
Property and maintenance expense	(364,948		)	(361,087		)	(122,383		)	(120,139		)
Real estate taxes and insurance expense	(254,513		)	(245,717		)	(84,962		)	(80,568		)
Property management expense	(60,887		)	(61,080		)	(18,925		)	(18,407		)
Total operating expenses	(680,348		)	(667,884		)	(226,270		)	(219,114		)
Net operating income	$	1,355,011		$	1,274,608		$	467,975		$	442,887

The following tables present NOI for each segment from our rental real estate specific to continuing operations for the nine months and quarters ended September 30, 2015 and 2014, respectively, as well as total assets and capital expenditures at September 30, 2015 (amounts in thousands):

	Nine Months Ended September 30, 2015						Nine Months Ended September 30, 2014
	Rental Income		Operating Expenses		NOI		Rental Income		Operating Expenses		NOI
Same store (1)
Boston	$	188,091	$	61,890	$	126,201	$	182,085	$	58,769	$	123,316
New York	354,704		133,433		221,271		340,374		129,006		211,368
San Francisco	278,514		81,469		197,045		251,812		80,087		171,725
Seattle	124,623		38,724		85,899		116,327		38,706		77,621
Southern California	322,762		102,989		219,773		305,427		101,924		203,503
Washington D.C.	341,797		113,582		228,215		339,453		110,357		229,096
Non-core – South Florida	151,115		54,961		96,154		143,000		53,188		89,812
Non-core – Denver	89,716		24,246		65,470		82,392		23,246		59,146
Non-core – other	64,405		23,829		40,576		61,857		23,249		38,608
Total same store	1,915,727		635,123		1,280,604		1,822,727		618,532		1,204,195
Non-same store/other (2) (3)
Boston	6,192		1,795		4,397		2,750		633		2,117
New York	4,302		3,660		642		16		1		15
San Francisco	2,709		1,465		1,244		10		24		(14		)
Seattle	14,894		4,394		10,500		3,712		1,332		2,380
Southern California	52,833		19,377		33,456		32,949		14,068		18,881
Washington D.C.	16,370		4,855		11,515		12,610		4,683		7,927
Non-core – South Florida	5,916		2,101		3,815		3,694		2,026		1,668
Other (3)	16,416		7,578		8,838		64,024		26,585		37,439
Total non-same store/other	119,632		45,225		74,407		119,765		49,352		70,413
Total	$	2,035,359	$	680,348	$	1,355,011	$	1,942,492	$	667,884	$	1,274,608

(1) Same store primarily includes all properties acquired or completed and stabilized prior to January 1, 2014, less properties subsequently sold, which represented 96,432 apartment units.

(2) Non-same store primarily includes properties acquired after January 1, 2014, plus any properties in lease-up and not stabilized as of January 1, 2014.

(3) Other includes development, other corporate operations and operations prior to sale for properties sold in 2014 and 2015 that do not meet the new discontinued operations criteria.

	Quarter Ended September 30, 2015							Quarter Ended September 30, 2014
	Rental Income		Operating Expenses			NOI		Rental Income		Operating Expenses		NOI
Same store (1)
Boston	$	63,673	$	20,159		$	43,514	$	61,407	$	19,056	$	42,351
New York	120,149		43,578			76,571		114,968		41,961		73,007
San Francisco	96,115		27,512			68,603		86,468		27,124		59,344
Seattle	43,481		13,206			30,275		40,538		13,082		27,456
Southern California	115,657		36,979			78,678		109,054		36,639		72,415
Washington D.C.	116,935		38,714			78,221		116,449		37,793		78,656
Non-core – South Florida	51,960		18,927			33,033		48,850		18,198		30,652
Non-core – Denver	30,890		8,619			22,271		28,269		8,150		20,119
Non-core – other	21,868		7,912			13,956		20,976		7,655		13,321
Total same store	660,728		215,606			445,122		626,979		209,658		417,321
Non-same store/other (2) (3)
Boston	2,858		916			1,942		932		222		710
New York	3,079		2,258			821		6		—		6
San Francisco	2,216		899			1,317		4		12		(8		)
Seattle	4,692		1,523			3,169		1,722		505		1,217
Southern California	12,424		4,351			8,073		8,486		3,383		5,103
Washington D.C.	3,538		1,013			2,525		2,932		901		2,031
Non-core – South Florida	1,331		563			768		1,042		561		481
Other (3)	3,379		(859		)	4,238		19,898		3,872		16,026
Total non-same store/other	33,517		10,664			22,853		35,022		9,456		25,566
Total	$	694,245	$	226,270		$	467,975	$	662,001	$	219,114	$	442,887

(1) Same store primarily includes all properties acquired or completed and stabilized prior to July 1, 2014, less properties subsequently sold, which represented 97,737 apartment units.

(2) Non-same store primarily includes properties acquired after July 1, 2014, plus any properties in lease-up and not stabilized as of July 1, 2014.

(3) Other includes development, other corporate operations and operations prior to sale for properties sold in 2014 and 2015 that do not meet the new discontinued operations criteria.

	Nine Months Ended September 30, 2015
	Total Assets		Capital Expenditures
Same store (1)
Boston	$	1,854,057	$	12,948
New York	4,593,457		13,213
San Francisco	2,666,256		19,932
Seattle	1,072,287		9,608
Southern California	2,748,274		23,320
Washington D.C.	4,199,832		26,697
Non-core – South Florida	1,111,103		12,856
Non-core – Denver	506,436		5,888
Non-core – other	325,649		4,862
Total same store	19,077,351		129,324
Non-same store/other (2) (3)
Boston	173,368		308
New York	366,978		(12		)
San Francisco	261,039		3
Seattle	368,624		70
Southern California	837,998		3,713
Washington D.C.	237,900		568
Non-core – South Florida	65,193		30
Other (3)	1,620,353		434
Total non-same store/other	3,931,453		5,114
Total	$	23,008,804	$	134,438

(1) Same store primarily includes all properties acquired or completed and stabilized prior to January 1, 2014, less properties subsequently sold, which represented 96,432 apartment units.

(2) Non-same store primarily includes properties acquired after January 1, 2014, plus any properties in lease-up and not stabilized as of January 1, 2014.

(3) Other includes development, other corporate operations and capital expenditures for properties sold.

Note: Markets/Metro Areas aggregated in the above Southern California and Non-core – other segments are as follows:

(a) Southern California – Los Angeles, Orange County and San Diego.

(b) Non-core – other – Inland Empire, CA, New England (excluding Boston) and Phoenix.