SEGMENT DISCLOSURE

In accordance with ASC Topic 280, Segment Reporting, our reportable segments during the year ended December 31, 2018 consist of two types of commercial real estate properties, namely, office and hotel, as well as a segment for our lending business. Our reportable segments during the years ended December 31, 2017 and 2016 consist of three types of commercial real estate properties, namely, office, hotel and multifamily, as well as a segment for our lending business that is included in our continuing operations. The lending business that was sold during the year ended December 31, 2016, which was included in assets held for sale at December 31, 2015, is not included in our reportable segments. Management internally evaluates the operating performance and financial results of the segments based on net operating income. We also have certain general and administrative level activities, including public company expenses, legal, accounting, and tax preparation that are not considered separate operating segments. The reportable segments are accounted for on the same basis of accounting as described in Note 2.

For our real estate segments, we define net operating income as rental and other property income and expense reimbursements less property related expenses, and excludes non-property income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, gain (loss) on sale of real estate, impairment of real estate, transaction costs, and provision for income taxes. For our lending segment, we define net operating income as interest income net of interest expense and general overhead expenses.

The net operating income of our segments included in continuing operations for the years ended December 31, 2018, 2017 and 2016 is as follows:



	Year Ended December 31,
	2018		2017		2016
	(in thousands)
Office:
Revenues	$	148,065	$	174,004	$	187,435
Property expenses:
Operating	54,908		68,801		81,217
General and administrative	2,350		981		1,234
Total property expenses	57,258		69,782		82,451
Segment net operating income—office	90,807		104,222		104,984
Hotel:
Revenues	38,789		38,585		48,379
Property expenses:
Operating	25,263		25,059		32,177
General and administrative	32		77		282
Total property expenses	25,295		25,136		32,459
Segment net operating income—hotel	13,494		13,449		15,920
Multifamily:
Revenues	—		13,566		20,303
Property expenses:
Operating	—		7,725		11,309
General and administrative	—		393		1,048
Total property expenses	—		8,118		12,357
Segment net operating income—multifamily	—		5,448		7,946
Lending:
Revenues	10,870		10,221		9,814
Lending expenses:
Interest expense	1,412		414		537
Fees to related party	2,445		3,464		3,555
General and administrative	1,857		1,010		1,166
Total lending expenses	5,714		4,888		5,258
Segment net operating income—lending	5,156		5,333		4,556
Total segment net operating income	$	109,457	$	128,452	$	133,406

A reconciliation of our segment net operating income to net income attributable to the Company for the years ended December 31, 2018, 2017 and 2016 is as follows:



	Year Ended December 31,
	2018			2017			2016
	(in thousands)
Total segment net operating income	$	109,457		$	128,452		$	133,406
Asset management and other fees to related parties	(22,006		)	(26,787		)	(30,327		)
Interest expense	(26,290		)	(35,924		)	(33,848		)
General and administrative	(4,928		)	(3,018		)	(4,231		)
Transaction costs	(938		)	(11,862		)	(340		)
Depreciation and amortization	(53,228		)	(58,364		)	(71,968		)
Impairment of real estate	—			(13,100		)	—
Gain on sale of real estate	—			401,737			39,666
Income from continuing operations before provision for income taxes	2,067			381,134			32,358
Provision for income taxes	(925		)	(1,376		)	(1,646		)
Net income from continuing operations	1,142			379,758			30,712
Discontinued operations:
Income from operations of assets held for sale	—			—			3,853
Gain on disposition of assets held for sale	—			—			—
Net income from discontinued operations	—			—			3,853
Net income	1,142			379,758			34,565
Net income attributable to noncontrolling interests	(21		)	(21		)	(18		)
Net income attributable to the Company	$	1,121		$	379,737		$	34,547

The condensed assets for each of the segments as of December 31, 2018 and 2017, along with capital expenditures and loan originations for the years ended December 31, 2018, 2017, and 2016 are as follows:



	December 31,
	2018		2017
	(in thousands)
Condensed assets:
Office (1)	$	1,094,269	$	997,808
Hotel	105,845		107,790
Lending	97,465		92,919
Multifamily	—		815
Non-segment assets	44,822		137,056
Total assets	$	1,342,401	$	1,336,388



	Year Ended December 31,
	2018		2017		2016
	(in thousands)
Capital expenditures (2):
Office	$	12,669	$	24,907	$	30,563
Hotel	2,237		478		733
Multifamily	—		693		548
Total capital expenditures	14,906		26,078		31,844
Loan originations (3)	74,234		76,316		105,201
Total capital expenditures and loan originations	$	89,140	$	102,394	$	137,045


(1)	Includes the assets of 260 Townsend Street, which is classified as held for sale on our consolidated balance sheet at December 31, 2018 (Note 3).


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


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