Reportable Segments

3 Months Ended

Mar. 31, 2016

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 coastal markets represent its reportable segments. As of March 31, 2016, the Company has revised the presentation of Southern California to show separate results for Los Angeles, San Diego and Orange County, along with a subtotal of the three markets combined, for both the current and comparable periods. The Company's operating segments located in its other markets that are not material have been included in the tables presented below. See also Note 4 for further discussion of the Starwood Transaction and the operating segments/locations in which properties were sold.

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 included 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 quarters ended March 31, 2016 and 2015, 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 and 2) real estate taxes and insurance expense (all as reflected in the accompanying consolidated statements of operations and comprehensive income). As of March 31, 2016, NOI no longer includes an allocation of property management expenses either in the current or comparable periods. 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 properties. 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 quarters ended March 31, 2016 and 2015, respectively (amounts in thousands):

	Quarter Ended March 31,
	2016			2015
Rental income	$	616,165		$	664,606
Property and maintenance expense	(109,165		)	(124,560		)
Real estate taxes and insurance expense	(80,196		)	(86,432		)
Total operating expenses	(189,361		)	(210,992		)
Net operating income	$	426,804		$	453,614

The following tables present NOI for each segment from our rental real estate specific to continuing operations for the quarters ended March 31, 2016 and 2015, respectively, as well as total assets and capital expenditures at March 31, 2016 (amounts in thousands):

	Quarter Ended March 31, 2016						Quarter Ended March 31, 2015
	Rental Income		Operating Expenses		NOI		Rental Income		Operating Expenses		NOI
Same store (1)
Los Angeles	$	90,150	$	26,359	$	63,791	$	84,654	$	26,189	$	58,465
San Diego	21,428		5,835		15,593		20,231		5,661		14,570
Orange County	19,314		4,733		14,581		18,321		4,688		13,633
Subtotal – Southern California	130,892		36,927		93,965		123,206		36,538		86,668
New York	113,204		40,141		73,063		110,123		39,507		70,616
Washington D.C.	104,268		31,425		72,843		103,340		32,037		71,303
San Francisco	90,674		22,198		68,476		82,784		21,519		61,265
Boston	62,325		17,648		44,677		60,512		19,124		41,388
Seattle	37,243		10,572		26,671		35,131		9,807		25,324
All Other Markets	9,070		3,765		5,305		8,643		4,131		4,512
Total same store	547,676		162,676		385,000		523,739		162,663		361,076
Non-same store/other (2) (3)
Los Angeles	7,264		2,573		4,691		7,339		2,384		4,955
Orange County	1,158		334		824		—		—		—
Subtotal – Southern California	8,422		2,907		5,515		7,339		2,384		4,955
New York	7,086		3,625		3,461		292		432		(140		)
Washington D.C.	959		170		789		1,047		197		850
San Francisco	4,298		1,550		2,748		83		221		(138		)
Boston	2,634		710		1,924		946		202		744
Seattle	5,679		1,259		4,420		1,941		496		1,445
Other (3)	39,411		16,464		22,947		129,219		44,397		84,822
Total non-same store/other	68,489		26,685		41,804		140,867		48,329		92,538
Total	$	616,165	$	189,361	$	426,804	$	664,606	$	210,992	$	453,614

(1) Same store primarily includes all properties acquired or completed that are stabilized prior to January 1, 2015, less properties subsequently sold, which represented 73,222 apartment units.

(2) Non-same store primarily includes properties acquired after January 1, 2015, plus any properties in lease-up and not stabilized as of January 1, 2015.

(3) Other includes development, other corporate operations and operations prior to sale for properties sold from 2014 through 2016 that do not meet the new discontinued operations criteria.

	Quarter Ended March 31, 2016
	Total Assets		Capital Expenditures
Same store (1)
Los Angeles	$	2,567,837	$	5,031
San Diego	483,643		673
Orange County	266,770		1,738
Subtotal – Southern California	3,318,250		7,442
New York	4,348,318		3,994
Washington D.C.	3,993,480		5,556
San Francisco	2,518,610		4,891
Boston	1,811,047		3,626
Seattle	1,053,316		2,345
All Other Markets	126,515		254
Total same store	17,169,536		28,108
Non-same store/other (2) (3)
Los Angeles	459,013		3,164
Orange County	77,324		12
Subtotal – Southern California	536,337		3,176
New York	440,315		19
Washington D.C.	45,975		—
San Francisco	262,882		—
Boston	170,841		294
Seattle	334,233		258
Other (3)	2,341,173		2,047
Total non-same store/other	4,131,756		5,794
Total	$	21,301,292	$	33,902

(1) Same store primarily includes all properties acquired or completed that are stabilized prior to January 1, 2015, less properties subsequently sold, which represented 73,222 apartment units.

(2) Non-same store primarily includes properties acquired after January 1, 2015, plus any properties in lease-up and not stabilized as of January 1, 2015.

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

Note: Markets/Metro Areas included in the above All Other Markets segment are as follows:

(a) New England (excluding Boston) and Phoenix.