SEGMENT DISCLOSURE

12 Months Ended

Dec. 31, 2015

SEGMENT DISCLOSURE

SEGMENT DISCLOSURE

19.  SEGMENT DISCLOSURE

In accordance with ASC Topic 280, Segment Reporting, our reportable segments consist of three types of commercial real estate properties, namely, office, hotel (which included an investment in a note receivable secured by a hotel property during the period from January 1, 2013 to October 8, 2013)  and multifamily properties, as well as a segment for our lending operations, which is held for sale as of December 31, 2015 and 2014. Management internally evaluates the operating performance and financial results of the segments based on net operating income. We also have certain general and administrative level activities, including public company expenses, legal, accounting, and tax preparation that are not considered separate operating segments. The reportable segments are accounted for on the same basis of accounting as described in Note 3.

We evaluate the performance of our real estate segments based on net operating income,  which is defined as rental and other property income and expense reimbursements less property and related expenses, and excludes nonproperty income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, and transaction costs.

The net operating income of our reportable segments for the years ended December 31, 2015, 2014 and 2013 is as follows:

	Year Ended December 31,
	2015		2014		2013
	(in thousands)
Office:
Revenues	$	188,270	$	179,338	$	175,144
Property expenses:
Operating		80,014		73,666		67,906
General and administrative		771		981		1,078
Total property expenses		80,785		74,647		68,984
Segment net operating income—office		107,485		104,691		106,160
Hotel:
Revenues		61,436		56,096		40,680
Property expenses:
Operating		41,585		39,544		28,825
General and administrative		389		150		250
Total property expenses		41,974		39,694		29,075
Segment net operating income—hotel		19,462		16,402		11,605
Multifamily:
Revenues		18,721		20,719		19,989
Property expenses:
Operating		11,579		13,664		8,432
General and administrative		589		738		114
Total property expenses		12,168		14,402		8,546
Segment net operating income—multifamily		6,553		6,317		11,443
Total segment net operating income	$	133,500	$	127,410	$	129,208

A reconciliation of segment net operating income to net income for the years ended December 31, 2015, 2014 and 2013 is as follows:

	Year Ended December 31,
	2015		2014		2013
	(in thousands)
Total segment net operating income	$	133,500	$	127,410	$	129,208
Interest		(22,785)		(19,073)		(17,929)
General and administrative		(6,621)		(5,463)		(1,126)
Asset management and other fees to related parties		(29,319)		(25,222)		(21,767)
Transaction costs		(1,382)		(1,563)		(5,063)
Depreciation and amortization		(72,361)		(69,047)		(68,644)
Bargain purchase gain		—		4,918		—
Gain on sale of real estate		3,092		—		—
Income from continuing operations		4,124		11,960		14,679
Discontinued operations
Income from operations of assets held for sale		15,128		12,638		—
Gain on disposition of assets held for sale		5,151		—		—
Net income from discontinued operations		20,279		12,638		—
Net income		24,403		24,598		14,679
Net income attributable to noncontrolling interests		(11)		(220)		(213)
Net income attributable to stockholders	$	24,392	$	24,378	$	14,466

The condensed assets for each of the segments as of December 31, 2015 and 2014, along with capital expenditures and loan originations for the years ended December 31, 2015, 2014, and 2013 are as follows:

	December 31,
	2015		2014
	(in thousands)
Condensed assets:
Office	$	1,520,780	$	1,534,610
Hotel		176,735		174,679
Multifamily		171,885		171,226
Lending assets held for sale		128,992		208,799
Non-segment assets		99,781		5,368
Total assets	$	2,098,173	$	2,094,682

	Year Ended December 31,
	2015		2014		2013
	(in thousands)
Capital expenditures(1):
Office	$	27,686	$	26,157	$	20,523
Hotel		1,158		1,481		2,015
Multifamily		2,498		1,241		1,982
Total capital expenditures		31,342		28,879		24,520
Loan originations included in assets held for sale		59,467		50,971		—
Total capital expenditures and loan originations	$	90,809	$	79,850	$	24,520

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