SEGMENT DISCLOSURE

12 Months Ended

Dec. 31, 2013

SEGMENT DISCLOSURE

SEGMENT DISCLOSURE

11. SEGMENT DISCLOSURE

        In accordance with ASC Topic 280, Segment Reporting, the Partnership's reportable segments consist of three types of commercial real estate properties, namely, office properties, hotel properties, and multifamily properties. Management internally evaluates the operating performance and financial results of the segments based on net operating income. The Partnership also has certain general and administrative level activities, including legal, accounting, tax preparation, and partner servicing costs that are not considered separate operating segments. The reportable segments are accounted for on the same basis of accounting as described in Note 3.

        The Partnership evaluates the performance of its segments based on net operating income, defined as rental and other property income and tenant reimbursements, less property and related expenses, and excludes other nonproperty income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, and acquisition costs. The net operating income of our reportable segments for the years ended December 31, 2013, 2012 and 2011, is as follows (in thousands):

	Years Ended December 31
	2013		2012		2011
Office Properties
Revenues	$	175,144	$	172,583	$	158,321
Property expenses:
Operating		67,906		66,230		63,964
General and administrative		1,078		1,122		683
Total property expenses		68,984		67,352		64,647
Segment net operating income—Office		106,160		105,231		93,674
Hotel Properties
Revenues		40,680		41,086		39,505
Property expenses:
Operating		28,825		25,951		25,111
General and administrative		250		184		142
Total property expenses		29,075		26,135		25,253
Segment net operating income—Hotel		11,605		14,951		14,252
Multifamily Properties
Revenues		19,989		18,844		15,467
Property expenses:
Operating		8,432		7,407		6,011
General and administrative		114		344		219
Total property expenses		8,546		7,751		6,230
Segment net operating income—Multifamily		11,443		11,093		9,237
Total segments' net operating income	$	129,208	$	131,275	$	117,163

        A reconciliation of segment net operating income to net income attributable to partners for the years ended December 31, 2013, 2012 and 2011, is as follows (in thousands):

	Years Ended December 31
	2013			2012			2011
Total segments' net operating income	$	129,208		$	131,275		$	117,163
Interest expense		(17,929	)		(18,856	)		(18,128	)
General and administrative		(1,126	)		(1,123	)		(1,022	)
Asset management fees to related party		(21,767	)		(20,924	)		(19,326	)
Acquisition-related costs		(5,063	)		(632	)		(3,574	)
Depreciation and amortization		(68,644	)		(69,943	)		(68,804	)
Net income		14,679			19,797			6,309
Net income attributable to noncontrolling interests		(213	)		(208	)		(187	)
Net income attributable to partners	$	14,466		$	19,589		$	6,122

        The condensed assets for each of the segments, along with their capital expenditures for each year, are as follows (in thousands):

	December 31
	2013		2012
Condensed assets:
Office properties	$	1,481,757	$	1,505,046
Hotel properties		174,263		178,356
Multifamily properties		173,985		175,361
Nonsegment assets		4,472		11,949
Total assets	$	1,834,477	$	1,870,712

	December 31
	2013		2012		2011
Capital expenditures(1):
Office properties	$	20,523	$	23,154	$	49,228
Hotel properties		1,001		598		1,774
Multifamily properties		1,982		1,718		1,173
Total capital expenditures	$	23,506	$	25,470	$	52,175

(1)

This table presents additions and improvements to real estate investments, excluding acquisitions.