Reportable Segments

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Reportable Segments

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. While the Company does maintain a non-residential presence, it accounts for approximately 3.8% of total revenues for the six months ended June 30, 2023 and is designed as an amenity for our residential residents. The chief operating decision maker evaluates the performance of each property on a consolidated residential and non-residential basis. The Company’s geographic consolidated same store operating segments represent its reportable segments.

The Company’s 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 six months and quarters ended June 30, 2023 and 2022, 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). 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. Revenues for all leases are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods.

The following table presents a reconciliation of NOI from our rental real estate for the six months and quarters ended June 30, 2023 and 2022, respectively (amounts in thousands):

	Six Months Ended June 30,						Quarter Ended June 30,
	2023			2022			2023			2022
Rental income	$	1,422,397		$	1,340,378		$	717,309		$	687,030
Property and maintenance expense		(262,350	)		(241,229	)		(124,771	)		(116,355	)
Real estate taxes and insurance expense		(209,749	)		(202,538	)		(103,080	)		(101,850	)
Total operating expenses		(472,099	)		(443,767	)		(227,851	)		(218,205	)
Net operating income	$	950,298		$	896,611		$	489,458		$	468,825

The following tables present NOI from our rental real estate for each segment for the six months and quarters ended June 30, 2023 and 2022, respectively, as well as total assets and capital expenditures at June 30, 2023 (amounts in thousands):

	Six Months Ended June 30, 2023							Six Months Ended June 30, 2022
	Rental Income		Operating Expenses		NOI			Rental Income		Operating Expenses		NOI
Same store (1)
Los Angeles	$	234,243	$	73,597	$	160,646		$	227,809	$	67,243	$	160,566
Orange County		63,904		14,372		49,532			60,018		13,013		47,005
San Diego		45,452		10,348		35,104			42,410		9,605		32,805
Subtotal - Southern California		343,599		98,317		245,282			330,237		89,861		240,376
San Francisco		216,121		66,067		150,054			206,019		61,753		144,266
Washington, D.C.		217,282		71,075		146,207			203,973		68,523		135,450
New York		237,830		97,859		139,971			206,162		93,941		112,221
Seattle		149,291		41,726		107,565			140,114		40,195		99,919
Boston		143,127		43,383		99,744			131,779		41,074		90,705
Denver		35,469		10,500		24,969			33,065		9,331		23,734
Other Expansion Markets		32,359		15,324		17,035			30,598		13,008		17,590
Total same store		1,375,078		444,251		930,827			1,281,947		417,686		864,261
Non-same store/other
Non-same store (2)		44,677		17,236		27,441			33,690		15,357		18,333
Other (3)		2,642		10,612		(7,970	)		24,741		10,724		14,017
Total non-same store/other		47,319		27,848		19,471			58,431		26,081		32,350
Totals	$	1,422,397	$	472,099	$	950,298		$	1,340,378	$	443,767	$	896,611

(1)For the six months ended June 30, 2023 and 2022, same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2022, less properties subsequently sold, which represented 76,952 apartment units.

(2)For the six months ended June 30, 2023 and 2022, non-same store primarily includes properties acquired after January 1, 2022, plus any properties in lease-up and not stabilized as of January 1, 2022, and any properties undergoing major renovations.

(3)Other includes development, other corporate operations and operations prior to disposition for properties sold.

	Quarter Ended June 30, 2023							Quarter Ended June 30, 2022
	Rental Income		Operating Expenses		NOI			Rental Income		Operating Expenses		NOI
Same store (1)
Los Angeles	$	118,562	$	35,795	$	82,767		$	118,840	$	33,060	$	85,780
Orange County		32,316		7,186		25,130			31,252		6,482		24,770
San Diego		24,691		5,747		18,944			23,067		5,220		17,847
Subtotal - Southern California		175,569		48,728		126,841			173,159		44,762		128,397
San Francisco		108,641		32,062		76,579			105,403		30,081		75,322
Washington, D.C.		109,660		34,807		74,853			103,268		34,311		68,957
New York		119,785		48,088		71,697			106,332		46,067		60,265
Seattle		74,729		21,246		53,483			71,577		20,269		51,308
Boston		72,469		20,747		51,722			67,117		20,016		47,101
Denver		17,873		5,010		12,863			16,833		4,697		12,136
Other Expansion Markets		18,718		8,346		10,372			17,685		7,375		10,310
Total same store		697,444		219,034		478,410			661,374		207,578		453,796
Non-same store/other
Non-same store (2)		19,664		7,219		12,445			14,848		6,064		8,784
Other (3)		201		1,598		(1,397	)		10,808		4,563		6,245
Total non-same store/other		19,865		8,817		11,048			25,656		10,627		15,029
Totals	$	717,309	$	227,851	$	489,458		$	687,030	$	218,205	$	468,825

(1)For the quarters ended June 30, 2023 and 2022, same store primarily includes all properties acquired or completed that were stabilized prior to April 1, 2022, less properties subsequently sold, which represented 77,545 apartment units.

(2)For the quarters ended June 30, 2023 and 2022, non-same store primarily includes properties acquired after April 1, 2022, plus any properties in lease-up and not stabilized as of April 1, 2022, and any properties undergoing major renovations.

(3)Other includes development, other corporate operations and operations prior to disposition for properties sold.

	Six Months Ended June 30, 2023
	Total Assets		Capital Expenditures
Same store (1)
Los Angeles	$	2,522,130	$	23,582
Orange County		349,363		4,230
San Diego		229,569		7,907
Subtotal - Southern California		3,101,062		35,719
San Francisco		3,023,790		19,750
Washington, D.C.		3,039,410		23,142
New York		3,375,622		10,072
Seattle		2,141,765		14,237
Boston		1,773,166		11,998
Denver		840,581		1,773
Other Expansion Markets		796,218		1,805
Total same store		18,091,614		118,496
Non-same store/other
Non-same store (2)		1,321,994		16,682
Other (3)		732,121		69
Total non-same store/other		2,054,115		16,751
Totals	$	20,145,729	$	135,247

(1)Same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2022, less properties subsequently sold, which represented 76,952 apartment units.

(2)Non-same store primarily includes properties acquired after January 1, 2022, plus any properties in lease-up and not stabilized as of January 1, 2022, and any properties undergoing major renovations.

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