SEGMENT DISCLOSURE (Tables)

12 Months Ended

Dec. 31, 2016

Schedule of net operating income of reportable segments

The net operating income of our segments included in continuing operations for the years ended December 31, 2016, 2015 and 2014 is as follows:



	Year Ended December 31,
	2016		2015		2014
	(in thousands)
Office:
Revenues	$	187,435	$	188,270	$	179,338
Property expenses:
Operating	81,217		80,014		73,666
General and administrative	1,234		771		981
Total property expenses	82,451		80,785		74,647
Segment net operating income—office	104,984		107,485		104,691
Hotel:
Revenues	48,379		61,436		56,096
Property expenses:
Operating	32,177		41,585		39,544
General and administrative	282		389		150
Total property expenses	32,459		41,974		39,694
Segment net operating income—hotel	15,920		19,462		16,402
Multifamily:
Revenues	20,303		18,721		20,719
Property expenses:
Operating	11,309		11,579		13,664
General and administrative	1,048		589		738
Total property expenses	12,357		12,168		14,402
Segment net operating income—multifamily	7,946		6,553		6,317
Lending:
Revenues	9,814		8,521		6,674
Lending expenses:
Interest expense	537		845		1,177
Fees to related party	3,555		3,850		—
General and administrative (1)	1,166		1,032		3,710
Total lending expenses	5,258		5,727		4,887
Segment net operating income—lending	4,556		2,794		1,787
Total segment net operating income	$	133,406	$	136,294	$	129,197


(1)	Salaries and related benefits of $2,866,000 were included in general and administrative expense for the period from the Acquisition Date through December 31, 2014 while, as a result of the transfer of substantially all our lending segment employees to an affiliate (Note 16), such expenses were included in fees to related party for the years ended December 31, 2016 and 2015.

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 attributable to the Company for the years ended December 31, 2016, 2015 and 2014 is as follows:



	Year Ended December 31,
	2016			2015			2014
	(in thousands)
Total segment net operating income	$	133,406		$	136,294		$	129,197
Asset management and other fees to related parties	(30,327		)	(29,319		)	(25,222		)
Interest expense	(33,848		)	(22,785		)	(19,073		)
General and administrative	(4,231		)	(6,621		)	(5,463		)
Transaction costs	(340		)	(1,382		)	(1,563		)
Depreciation and amortization	(71,968		)	(72,361		)	(69,047		)
Bargain purchase gain	—			—			4,918
Gain on sale of real estate	39,666			3,092			—
Income from continuing operations before provision for income taxes	32,358			6,918			13,747
Provision for income taxes	(1,646		)	(806		)	(604		)
Net income from continuing operations	30,712			6,112			13,143
Discontinued operations:
Income from operations of assets held for sale	3,853			13,140			11,455
Gain on disposition of assets held for sale	—			5,151			—
Net income from discontinued operations	3,853			18,291			11,455
Net income	34,565			24,403			24,598
Net income attributable to noncontrolling interests	(18		)	(11		)	(220		)
Net income attributable to the Company	$	34,547		$	24,392		$	24,378

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

The condensed assets for each of the segments as of December 31, 2016 and 2015, along with capital expenditures and loan originations for the years ended December 31, 2016, 2015, and 2014 are as follows:



	December 31,
	2016		2015
	(in thousands)
Condensed assets:
Office	$	1,568,702	$	1,520,339
Hotel	115,955		176,735
Multifamily	170,159		171,429
Lending assets	91,191		128,992
Non-segment assets	76,877		94,565
Total assets	$	2,022,884	$	2,092,060



	Year Ended December 31,
	2016		2015		2014
	(in thousands)
Capital expenditures (1):
Office	$	30,563	$	27,686	$	26,157
Hotel	733		1,158		1,481
Multifamily	548		2,498		1,241
Total capital expenditures	31,844		31,342		28,879
Loan originations (2)	105,201		59,467		50,971
Total capital expenditures and loan originations	$	137,045	$	90,809	$	79,850


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


(2)	For the year ended December 31, 2016, loan originations includes $966,000 of non cash additions to commercial real estate loans for capitalized interest.