SEGMENT DISCLOSURE (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of net operating income of reportable segments

The net operating income of our segments included in continuing operations for the three and nine months ended September 30, 2016 and 2015 is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
	(in thousands)
Office:
Revenues	$	47,584	$	46,427	$	139,403	$	140,126
Property expenses:
Operating	22,351		19,832		60,768		59,283
General and administrative	344		226		789		652
Total property expenses	22,695		20,058		61,557		59,935
Segment net operating income—office	24,889		26,369		77,846		80,191
Hotel:
Revenues	9,139		15,350		38,918		46,891
Property expenses:
Operating	6,479		10,623		25,865		31,287
General and administrative	229		205		622		284
Total property expenses	6,708		10,828		26,487		31,571
Segment net operating income—hotel	2,431		4,522		12,431		15,320
Multifamily:
Revenues	5,068		4,618		15,298		13,536
Property expenses:
Operating	2,893		2,906		8,667		8,485
General and administrative	485		145		840		318
Total property expenses	3,378		3,051		9,507		8,803
Segment net operating income—multifamily	1,690		1,567		5,791		4,733
Lending:
Revenues	2,541		2,065		7,690		6,393
Lending expenses:
Interest expense	124		230		306		651
Fees to related party	865		1,109		2,679		2,821
General and administrative	283		179		881		853
Total lending expenses	1,272		1,518		3,866		4,325
Segment net operating income—lending	1,269		547		3,824		2,068
Total segment net operating income	$	30,279	$	33,005	$	99,892	$	102,312

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

A reconciliation of our segment net operating income to net income for the three and nine months ended September 30, 2016 and 2015 is as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(in thousands)
Total segment net operating income	$	30,279		$	33,005		$	99,892		$	102,312
Asset management and other fees to related parties	(7,631		)	(7,290		)	(22,824		)	(21,955		)
Interest expense	(10,152		)	(5,551		)	(24,080		)	(16,540		)
General and administrative	(885		)	(1,274		)	(3,167		)	(5,143		)
Transaction costs	(53		)	(237		)	(320		)	(1,038		)
Depreciation and amortization	(17,724		)	(17,873		)	(54,262		)	(54,567		)
Gain on sale of real estate	14,927			—			39,666			—
Income from continuing operations before provision for income taxes	8,761			780			34,905			3,069
Provision for income taxes	(379		)	(179		)	(1,040		)	(654		)
Net income from continuing operations	8,382			601			33,865			2,415
Discontinued operations
Income from operations of assets held for sale	703			4,640			3,061			10,540
Net income from discontinued operations	703			4,640			3,061			10,540
Net income	9,085			5,241			36,926			12,955
Net loss (income) attributable to noncontrolling interests	3			1			(9		)	(5		)
Net income attributable to stockholders	$	9,088		$	5,242		$	36,917		$	12,950

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

The condensed assets for each of the segments as of September 30, 2016 and December 31, 2015, along with capital expenditures and loan originations for the nine months ended September 30, 2016 and 2015, are as follows:



	September 30, 2016		December 31, 2015
	(in thousands)
Condensed assets:
Office	$	1,556,263	$	1,520,339
Hotel	114,032		176,735
Multifamily	169,419		171,429
Lending assets	137,219		128,992
Non-segment assets	79,128		94,565
Total assets	$	2,056,061	$	2,092,060

Schedule of capital expenditures and loan originations



	Nine Months Ended September 30,
	2016		2015
	(in thousands)
Capital expenditures(1):
Office	$	24,115	$	19,216
Hotel	619		1,001
Multifamily	449		1,486
Total capital expenditures	25,183		21,703
Loan originations	78,809		49,319
Total capital expenditures and loan originations	$	103,992	$	71,022

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