SEGMENT DISCLOSURE (Tables)

6 Months Ended

Jun. 30, 2018

The net operating income of our segments for the three and six months ended June 30, 2018 and 2017 is as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
	(in thousands)
Office:
Revenues	$	37,904	$	43,914		$	72,820	$	93,007
Property expenses:
Operating	13,943		17,804			25,430		31,557
General and administrative	98		394			979		682
Total property expenses	14,041		18,198			26,409		32,239
Segment net operating income—office	23,863		25,716			46,411		60,768
Hotel:
Revenues	10,947		10,604			21,438		21,122
Property expenses:
Operating	6,837		6,586			13,370		13,025
General and administrative	—		35			18		39
Total property expenses	6,837		6,621			13,388		13,064
Segment net operating income—hotel	4,110		3,983			8,050		8,058
Multifamily:
Revenues	—		4,714			—		9,717
Property expenses:
Operating	—		2,859			—		5,627
General and administrative	—		113			—		342
Total property expenses	—		2,972			—		5,969
Segment net operating income—multifamily	—		1,742			—		3,748
Lending:
Revenues	2,708		2,067			5,699		4,402
Lending expenses:
Interest expense	300		(55		)	484		87
Fees to related party	639		784			1,240		1,628
General and administrative	390		310			859		677
Total lending expenses	1,329		1,039			2,583		2,392
Segment net operating income—lending	1,379		1,028			3,116		2,010
Total segment net operating income	$	29,352	$	32,469		$	57,577	$	74,584

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, 2018 and 2017 is as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
	(in thousands)
Total segment net operating income	$	29,352		$	32,469		$	57,577		$	74,584
Asset management and other fees to related parties	(5,504		)	(7,079		)	(11,114		)	(14,935		)
Interest expense	(6,511		)	(9,568		)	(12,960		)	(19,199		)
General and administrative	(1,427		)	(795		)	(3,435		)	(1,586		)
Transaction costs	(344		)	(11,615		)	(344		)	(11,628		)
Depreciation and amortization	(13,325		)	(14,761		)	(26,473		)	(31,992		)
Impairment of real estate	—			(13,100		)	—			(13,100		)
Gain on sale of real estate	—			116,283			—			304,017
Income before provision for income taxes	2,241			91,834			3,251			286,161
Provision for income taxes	(292		)	(462		)	(680		)	(854		)
Net income	1,949			91,372			2,571			285,307
Net income attributable to noncontrolling interests	(12		)	(9		)	(16		)	(14		)
Net income attributable to the Company	$	1,937		$	91,363		$	2,555		$	285,293

Segment Condensed Assets

The condensed assets for each of the segments as of June 30, 2018 and December 31, 2017, along with capital expenditures and loan originations for the six months ended June 30, 2018 and 2017, are as follows:



	June 30, 2018		December 31, 2017
	(in thousands)
Condensed assets:
Office	$	1,131,926	$	997,808
Hotel	109,774		107,790
Lending	95,175		92,919
Multifamily	—		815
Non-segment assets	51,486		137,056
Total assets	$	1,388,361	$	1,336,388

Segment Capital Expenditures



	Six Months Ended June 30,
	2018		2017
	(in thousands)
Capital expenditures (1):
Office	$	10,040	$	11,973
Hotel	824		74
Multifamily	—		224
Total capital expenditures	10,864		12,271
Loan originations	28,460		23,875
Total capital expenditures and loan originations	$	39,324	$	36,146


(1)	Represents additions and improvements to real estate investments, excluding acquisitions. Includes the activity for dispositions through their respective disposition dates.