SEGMENT DISCLOSURE (Tables)

6 Months Ended

Jun. 30, 2014

SEGMENT DISCLOSURE

Schedule of net operating income of reportable segments

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014(1)		2013
	(in thousands)
Office properties:
Revenues	$	45,181	$	44,137	$	88,455	$	87,597
Property expenses:
Operating		17,933		16,192		35,586		32,494
General and administrative		76		254		392		354
Total property expenses		18,009		16,446		35,978		32,848
Segment net operating income—office		27,172		27,691		52,477		54,749
Hotel properties:
Revenues		14,798		10,624		29,137		20,571
Property expenses:
Operating		9,923		7,125		19,769		13,653
General and administrative		36		83		73		162
Total property expenses		9,959		7,208		19,842		13,815
Segment net operating income—hotel		4,839		3,416		9,295		6,756
Multifamily properties:
Revenues		5,208		5,077		10,192		9,978
Property expenses:
Operating		2,583		1,915		4,670		3,806
General and administrative		54		35		79		42
Total property expenses		2,637		1,950		4,749		3,848
Segment net operating income—multifamily		2,571		3,127		5,443		6,130
Lending:
Revenues		6,271		—		7,797		—
Lending expenses:
Interest expense		635		—		897		—
General and administrative		1,253		—		1,658		—
Total lending expenses		1,888		—		2,555		—
Segment net operating income—lending		4,383		—		5,242		—
Total segment net operating income	$	38,965	$	34,234	$	72,457	$	67,635

(1)

The lending segment operations are included for the period from the Acquisition Date to June 30, 2014.

Schedule of reconciliation of segment net operating income to net income attributable to stockholders

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(in thousands)
Total segment net operating income	$	38,965		$	34,234		$	72,457		$	67,635
Interest		(4,304	)		(4,725	)		(8,259	)		(9,402	)
General and administrative		(2,191	)		(343	)		(2,587	)		(699	)
Asset management fees and other fees to related parties		(6,338	)		(5,431	)		(12,075	)		(10,840	)
Transaction costs		(32	)		(1,394	)		(500	)		(1,394	)
Depreciation and amortization		(17,286	)		(17,533	)		(33,915	)		(34,670	)
		8,814			4,808			15,121			10,630
Bargain purchase gain		—			—			4,918			—
Income before provision for income taxes		8,814			4,808			20,039			10,630
Provision for income taxes		(300	)		—			(308	)		—
Net income		8,514			4,808			19,731			10,630
Net income attributable to noncontrolling interests		(115	)		(113	)		(113	)		(109	)
Net income attributable to stockholders	$	8,399		$	4,695		$	19,618		$	10,521

Schedule of reconciliation of condensed assets of segments to consolidated total assets

	June 30, 2014		December 31, 2013
	(in thousands)
Condensed assets:
Office properties	$	1,518,743	$	1,481,757
Hotel properties		174,898		174,263
Multifamily properties		171,283		173,985
Lending		204,933		—
Non-segment assets		2,841		4,472
Total assets	$	2,072,698	$	1,834,477

Schedule of capital expenditures and originations

	Six Months Ended June 30,
	2014		2013
	(in thousands)
Capital expenditures(1):
Office properties	$	11,428	$	6,830
Hotel properties		721		1,504
Multifamily properties		429		827
Total capital expenditures		12,578		9,161
Originations		25,191		—
Total capital expenditures and originations	$	37,769	$	9,161

(1)

Represents additions and improvements to real estate investments, excluding acquisitions.