SEGMENT DISCLOSURE (Tables)

9 Months Ended

Sep. 30, 2018

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



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(in thousands)
Office:
Revenues	$	36,473	$	41,427	$	109,293	$	134,434
Property expenses:
Operating	14,492		18,761		39,922		50,318
General and administrative	83		106		1,062		788
Total property expenses	14,575		18,867		40,984		51,106
Segment net operating income—office	21,898		22,560		68,309		83,328
Hotel:
Revenues	8,542		8,406		29,980		29,528
Property expenses:
Operating	5,946		5,943		19,316		18,968
General and administrative	—		30		18		69
Total property expenses	5,946		5,973		19,334		19,037
Segment net operating income—hotel	2,596		2,433		10,646		10,491
Multifamily:
Revenues	—		2,683		—		12,400
Property expenses:
Operating	—		1,354		—		6,981
General and administrative	—		36		—		378
Total property expenses	—		1,390		—		7,359
Segment net operating income—multifamily	—		1,293		—		5,041
Lending:
Revenues	2,625		2,868		8,324		7,270
Lending expenses:
Interest expense	633		116		1,117		203
Fees to related party	740		845		1,980		2,473
General and administrative	414		294		1,273		971
Total lending expenses	1,787		1,255		4,370		3,647
Segment net operating income—lending	838		1,613		3,954		3,623
Total segment net operating income	$	25,332	$	27,899	$	82,909	$	102,483

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

A reconciliation of our segment net operating income to net (loss) income attributable to the Company for the three and nine months ended September 30, 2018 and 2017 is as follows:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(in thousands)
Total segment net operating income	$	25,332		$	27,899		$	82,909		$	102,483
Asset management and other fees to related parties	(5,381		)	(6,051		)	(16,495		)	(20,986		)
Interest expense	(6,332		)	(9,243		)	(19,292		)	(28,442		)
General and administrative	(708		)	(876		)	(4,143		)	(2,462		)
Transaction costs	(15		)	(242		)	(359		)	(11,870		)
Depreciation and amortization	(13,310		)	(13,472		)	(39,783		)	(45,464		)
Impairment of real estate	—			—			—			(13,100		)
Gain on sale of real estate	—			74,715			—			378,732
(Loss) income before provision for income taxes	(414		)	72,730			2,837			358,891
Provision for income taxes	(115		)	(339		)	(795		)	(1,193		)
Net (loss) income	(529		)	72,391			2,042			357,698
Net loss (income) attributable to noncontrolling interests	1			4			(15		)	(10		)
Net (loss) income attributable to the Company	$	(528	)	$	72,395		$	2,027		$	357,688

Segment Condensed Assets

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



	September 30, 2018		December 31, 2017
	(in thousands)
Condensed assets:
Office	$	1,109,090	$	997,808
Hotel	108,884		107,790
Lending	94,454		92,919
Multifamily	—		815
Non-segment assets	79,287		137,056
Total assets	$	1,391,715	$	1,336,388

Segment Capital Expenditures



	Nine Months Ended September 30,
	2018		2017
	(in thousands)
Capital expenditures (1):
Office	$	11,462	$	22,632
Hotel	1,343		267
Multifamily	—		338
Total capital expenditures	12,805		23,237
Loan originations	53,320		49,532
Total capital expenditures and loan originations	$	66,125	$	72,769


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