Reportable Segments

9 Months Ended

Sep. 30, 2011

Reportable Segments [Abstract]

Reportable Segments

13. Reportable Segments

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by senior management. Senior management decides how resources are allocated and assesses performance on a monthly basis.

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. Senior management evaluates the performance of each of our apartment communities individually and geographically, and both on a same store and non-same store basis; however, each of our apartment communities generally has similar economic characteristics, residents, products and services. The Company’s operating segments have been aggregated by geography in a manner identical to that which is provided to its chief operating decision maker.

The Company’s fee and asset management, development (including its partially owned properties) and condominium conversion activities are immaterial and do not individually meet the threshold requirements of a reportable segment and as such, have been aggregated in the “Other” segment 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, 2011 and 2010, 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). 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 tables present NOI for each segment from our rental real estate specific to continuing operations for the nine months and quarters ended September 30, 2011 and 2010, respectively, as well as total assets at September 30, 2011 (amounts in thousands):

	Nine Months Ended September 30, 2011
	Northeast		Northwest		Southeast		Southwest		Other (3)			Total
Rental income:
Same store (1)	$	440,444	$	255,986	$	266,938	$	320,840	$	—		$	1,284,208
Non-same store/other (2) (3)		113,008		28,544		11,283		30,069		3,286			186,190
Total rental income		553,452		284,530		278,221		350,909		3,286			1,470,398
Operating expenses:
Same store (1)		160,900		91,053		106,223		109,768		—			467,944
Non-same store/other (2) (3)		43,631		10,911		4,162		12,257		6,308			77,269
Total operating expenses		204,531		101,964		110,385		122,025		6,308			545,213
NOI:
Same store (1)		279,544		164,933		160,715		211,072		—			816,264
Non-same store/other (2) (3)		69,377		17,633		7,121		17,812		(3,022	)		108,921
Total NOI	$	348,921	$	182,566	$	167,836	$	228,884	$	(3,022	)	$	925,185
Total assets	$	6,313,643	$	2,656,529	$	2,514,066	$	3,230,549	$	1,042,030		$	15,756,817

(1) Same store primarily includes all properties acquired or completed and stabilized prior to January 1, 2010, less properties subsequently sold, which represented 102,129 apartment units.

(2) Non-same store primarily includes properties acquired after January 1, 2010, plus any properties in lease-up and not stabilized as of January 1, 2010.

(3) Other includes development, condominium conversion overhead of $0.3 million and other corporate operations.

	Nine Months Ended September 30, 2010
	Northeast		Northwest		Southeast		Southwest		Other (3)			Total
Rental income:
Same store (1)	$	417,347	$	240,767	$	256,307	$	310,950	$	—		$	1,225,371
Non-same store/other (2) (3)		64,743		10,698		6,429		7,629		(3,493	)		86,006
Total rental income		482,090		251,465		262,736		318,579		(3,493	)		1,311,377
Operating expenses:
Same store (1)		158,351		91,045		106,245		113,510		—			469,151
Non-same store/other (2) (3)		34,241		4,531		2,728		3,490		9,852			54,842
Total operating expenses		192,592		95,576		108,973		117,000		9,852			523,993
NOI:
Same store (1)		258,996		149,722		150,062		197,440		—			756,220
Non-same store/other (2) (3)		30,502		6,167		3,701		4,139		(13,345	)		31,164
Total NOI	$	289,498	$	155,889	$	153,763	$	201,579	$	(13,345	)	$	787,384

(1) Same store primarily includes all properties acquired or completed and stabilized prior to January 1, 2010, less properties subsequently sold, which represented 102,129 apartment units.

(2) Non-same store primarily includes properties acquired after January 1, 2010, plus any properties in lease-up and not stabilized as of January 1, 2010.

(3) Other includes development, condominium conversion overhead of $0.4 million and other corporate operations.

	Quarter Ended September 30, 2011
	Northeast		Northwest		Southeast		Southwest		Other (3)		Total
Rental income:
Same store (1)	$	163,887	$	91,663	$	90,979	$	110,779	$	—	$	457,308
Non-same store/other (2) (3)		27,889		6,657		3,773		10,862		2,541		51,722
Total rental income		191,776		98,320		94,752		121,641		2,541		509,030
Operating expenses:
Same store (1)		59,736		32,455		35,861		38,160		—		166,212
Non-same store/other (2) (3)		9,163		2,645		1,250		4,351		1,338		18,747
Total operating expenses		68,899		35,100		37,111		42,511		1,338		184,959
NOI:
Same store (1)		104,151		59,208		55,118		72,619		—		291,096
Non-same store/other (2) (3)		18,726		4,012		2,523		6,511		1,203		32,975
Total NOI	$	122,877	$	63,220	$	57,641	$	79,130	$	1,203	$	324,071

(1) Same store primarily includes all properties acquired or completed and stabilized prior to July 1, 2010, less properties subsequently sold, which represented 104,922 apartment units.

(2) Non-same store primarily includes properties acquired after July 1, 2010, plus any properties in lease-up and not stabilized as of July 1, 2010.

(3) Other includes development, condominium conversion overhead of $0.1 million and other corporate operations.

	Quarter Ended September 30, 2010
	Northeast		Northwest		Southeast		Southwest		Other (3)			Total
Rental income:
Same store (1)	$	155,119	$	84,969	$	86,963	$	106,457	$	—		$	433,508
Non-same store/other (2) (3)		12,963		2,158		2,002		2,537		(1,336	)		18,324
Total rental income		168,082		87,127		88,965		108,994		(1,336	)		451,832
Operating expenses:
Same store (1)		58,184		32,805		36,219		39,173		—			166,381
Non-same store/other (2) (3)		10,321		855		565		1,114		242			13,097
Total operating expenses		68,505		33,660		36,784		40,287		242			179,478
NOI:
Same store (1)		96,935		52,164		50,744		67,284		—			267,127
Non-same store/other (2) (3)		2,642		1,303		1,437		1,423		(1,578	)		5,227
Total NOI	$	99,577	$	53,467	$	52,181	$	68,707	$	(1,578	)	$	272,354

(1) Same store primarily includes all properties acquired or completed and stabilized prior to July 1, 2010, less properties subsequently sold, which represented 104,922 apartment units.

(2) Non-same store primarily includes properties acquired after July 1, 2010, plus any properties in lease-up and not stabilized as of July 1, 2010.

(3) Other includes development, condominium conversion overhead of $0.1 million and other corporate operations.

Note: Markets included in the above geographic segments are as follows:

(a) Northeast – New England (excluding Boston), Boston, New York Metro, DC Northern Virginia and Suburban Maryland.

(b) Northwest – Denver, Portland, San Francisco Bay Area and Seattle/Tacoma.

(c) Southeast – Atlanta, Jacksonville, Orlando and South Florida.

(d) Southwest – Inland Empire, Los Angeles, Orange County, Phoenix and San Diego.

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, 2011 and 2010, respectively (amounts in thousands):

	Nine Months Ended September 30,						Quarter Ended September 30,
	2011			2010			2011			2010
Rental income	$	1,470,398		$	1,311,377		$	509,030		$	451,832
Property and maintenance expense		(314,768	)		(303,916	)		(106,635	)		(104,259	)
Real estate taxes and insurance expense		(168,056	)		(160,307	)		(59,083	)		(56,205	)
Property management expense		(62,389	)		(59,770	)		(19,241	)		(19,014	)
Total operating expenses		(545,213	)		(523,993	)		(184,959	)		(179,478	)
Net operating income	$	925,185		$	787,384		$	324,071		$	272,354