SEGMENT DISCLOSURE (Tables)

6 Months Ended

Jun. 30, 2017

Segment Net Operating Income Included in Continuing Operations

The net operating income of our segments included in continuing operations for the three and six months ended June 30, 2017 and 2016 is as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017		2016
	(in thousands)
Office:
Revenues	$	43,914		$	45,770		$	93,007	$	91,819
Property expenses:
Operating	17,804			19,930			31,557		38,417
General and administrative	394			91			682		445
Total property expenses	18,198			20,021			32,239		38,862
Segment net operating income—office	25,716			25,749			60,768		52,957
Hotel:
Revenues	10,604			14,496			21,122		29,779
Property expenses:
Operating	6,586			9,431			13,025		19,386
General and administrative	35			306			39		393
Total property expenses	6,621			9,737			13,064		19,779
Segment net operating income—hotel	3,983			4,759			8,058		10,000
Multifamily:
Revenues	4,714			5,172			9,717		10,230
Property expenses:
Operating	2,859			2,938			5,627		5,774
General and administrative	113			97			342		355
Total property expenses	2,972			3,035			5,969		6,129
Segment net operating income—multifamily	1,742			2,137			3,748		4,101
Lending:
Revenues	2,067			2,922			4,402		5,149
Lending expenses:
Interest expense	(55		)	(7		)	87		182
Fees to related party	784			884			1,628		1,814
General and administrative	310			419			677		598
Total lending expenses	1,039			1,296			2,392		2,594
Segment net operating income—lending	1,028			1,626			2,010		2,555
Total segment net operating income	$	32,469		$	34,271		$	74,584	$	69,613

Reconciliation of Segment Net Operating Income to Net Income Attributable to the Company

A reconciliation of our segment net operating income to net income attributable to the Company for the three and six months ended June 30, 2017 and 2016 is as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(in thousands)
Total segment net operating income	$	32,469		$	34,271		$	74,584		$	69,613
Asset management and other fees to related parties	(7,079		)	(7,492		)	(14,935		)	(15,193		)
Interest expense	(9,568		)	(7,302		)	(19,199		)	(13,928		)
General and administrative	(795		)	(1,218		)	(1,586		)	(2,282		)
Transaction costs	(11,615		)	(118		)	(11,628		)	(267		)
Depreciation and amortization	(14,761		)	(18,480		)	(31,992		)	(36,538		)
Impairment of real estate	(13,100		)	—			(13,100		)	—
Gain on sale of real estate	116,283			—			304,017			24,739
Income (loss) from continuing operations before provision for income taxes	91,834			(339		)	286,161			26,144
Provision for income taxes	(462		)	(471		)	(854		)	(661		)
Net income (loss) from continuing operations	91,372			(810		)	285,307			25,483
Discontinued operations:
Income from operations of assets held for sale	—			1,668			—			2,358
Net income from discontinued operations	—			1,668			—			2,358
Net income	91,372			858			285,307			27,841
Net income attributable to noncontrolling interests	(9		)	(9		)	(14		)	(12		)
Net income attributable to the Company	$	91,363		$	849		$	285,293		$	27,829

Segment Condensed Assets

The condensed assets for each of the segments as of June 30, 2017 and December 31, 2016, along with capital expenditures and loan originations for the six months ended June 30, 2017 and 2016, are as follows:



	June 30, 2017		December 31, 2016
	(in thousands)
Condensed assets:
Office (1)	$	1,235,540	$	1,568,702
Hotel	110,655		115,955
Multifamily (2)	107,412		170,159
Lending assets	86,307		91,191
Non-segment assets	98,041		76,877
Total assets	$	1,637,955	$	2,022,884

Segment Capital Expenditures



	Six Months Ended June 30,
	2017		2016
	(in thousands)
Capital expenditures (3):
Office	$	11,973	$	18,839
Hotel	74		336
Multifamily	224		241
Total capital expenditures	12,271		19,416
Loan originations	23,875		49,976
Total capital expenditures and loan originations (4)	$	36,146	$	69,392

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(1)	Includes the assets of 7083 Hollywood Boulevard, which are classified as held for sale on our consolidated balance sheet at June 30, 2017 (Note 3).


(2)	Includes the assets of 4200 Scotland Street and 47 E 34th Street, both of which are classified as held for sale on our consolidated balance sheet at June 30, 2017 (Note 3).


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


(4)	Includes the activity for dispositions through their respective disposition dates.