SEGMENT DISCLOSURE (Tables)

6 Months Ended

Jun. 30, 2019

The net operating income of our segments for the three and six months ended June 30, 2019 and 2018 is as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	(in thousands)
Office:
Revenues	$	22,050	$	37,889	$	55,495	$	72,701
Property expenses:
Operating	8,913		13,928		22,472		25,311
General and administrative	202		98		356		979
Total property expenses	9,115		14,026		22,828		26,290
Segment net operating income—office	12,935		23,863		32,667		46,411
Hotel:
Revenues	10,330		10,947		20,919		21,438
Property expenses:
Operating	6,745		6,837		13,439		13,370
General and administrative	63		—		77		18
Total property expenses	6,808		6,837		13,516		13,388
Segment net operating income—hotel	3,522		4,110		7,403		8,050
Lending:
Revenues	2,977		2,708		5,901		5,699
Lending expenses:
Interest expense	536		300		1,118		484
Fees to related party	551		639		1,188		1,240
General and administrative	335		390		838		859
Total lending expenses	1,422		1,329		3,144		2,583
Segment net operating income—lending	1,555		1,379		2,757		3,116
Total segment net operating income	$	18,012	$	29,352	$	42,827	$	57,577

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, 2019 and 2018 is as follows:



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
	(in thousands)
Total segment net operating income	$	18,012		$	29,352		$	42,827		$	57,577
Interest and other income	1,499			—			1,818			—
Asset management and other fees to related parties	(3,737		)	(5,504		)	(8,986		)	(11,114		)
Interest expense	(2,014		)	(6,511		)	(5,477		)	(12,960		)
General and administrative	(1,021		)	(1,427		)	(2,138		)	(3,435		)
Transaction costs	(216		)	(344		)	(260		)	(344		)
Depreciation and amortization	(7,185		)	(13,325		)	(16,815		)	(26,473		)
Loss on early extinguishment of debt	(4,911		)	—			(29,982		)	—
Impairment of real estate	(2,800		)	—			(69,000		)	—
Gain on sale of real estate	55,221			—			432,802			—
Income before provision for income taxes	52,848			2,241			344,789			3,251
Provision for income taxes	(281		)	(292		)	(599		)	(680		)
Net income	52,567			1,949			344,190			2,571
Net (income) loss attributable to noncontrolling interests	(1		)	(12		)	173			(16		)
Net income attributable to the Company	$	52,566		$	1,937		$	344,363		$	2,555

Segment Condensed Assets

The condensed assets for each of the segments as of June 30, 2019 and December 31, 2018, along with capital expenditures and loan originations for the six months ended June 30, 2019 and 2018, are as follows:



	June 30, 2019		December 31, 2018
	(in thousands)
Condensed assets:
Office (1)	$	643,226	$	1,094,269
Hotel	107,042		105,845
Lending	85,873		97,465
Non-segment assets	360,362		44,822
Total assets	$	1,196,503	$	1,342,401

Segment Capital Expenditures



	Six Months Ended June 30,
	2019		2018
	(in thousands)
Capital expenditures (2):
Office (1)	$	4,363	$	10,040
Hotel	1,157		824
Total capital expenditures	5,520		10,864
Loan originations	18,523		28,460
Total capital expenditures and loan originations	$	24,043	$	39,324


(1)	The June 30, 2019 balances include the assets of 899, 999 and 901 N Capitol Street, which are classified as held for sale on our consolidated balance sheet at June 30, 2019 (Note 3). The December 31, 2018 balances include the assets of 260 Townsend Street, which was 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.