Segment Information

The Company's segment disclosures present the measure used by the chief operating decision makers for purposes of assessing each segment's performance. Essex's chief operating decision makers are comprised of several members of its executive management team who use net operating income (“NOI”) to assess the performance of the business for the Company's reportable operating segments. NOI represents total property revenue less direct property operating expenses.

The executive management team evaluates the Company's operating performance geographically. The Company defines its reportable operating segments as the three geographical regions in which its communities are located: Southern California, Northern California, and Seattle Metro.

Excluded from segment revenues and NOI are management and other fees from affiliates and interest and other income. Non-segment revenues and NOI included in the following schedule also consist of revenue generated from commercial properties and properties that have been sold. Other non-segment assets include items such as real estate under development, co-investments, real estate held for sale, net, cash and cash equivalents, marketable securities, notes and other receivables, and prepaid expenses and other assets.

The revenues and NOI for each of the reportable operating segments are summarized as follows for the three months ended March 31, 2018 and 2017 ($ in thousands):



	Three Months Ended March 31,
	2018			2017
Revenues:
Southern California	$	152,060		$	147,099
Northern California	128,622			123,308
Seattle Metro	58,713			56,192
Other real estate assets	5,552			6,569
Total property revenues	$	344,947		$	333,168
Net operating income:
Southern California	$	107,932		$	104,501
Northern California	94,717			89,743
Seattle Metro	42,012			40,388
Other real estate assets	5,323			6,532
Total net operating income	249,984			241,164
Management and other fees from affiliates	2,308			2,236
Corporate-level property management expenses	(7,770		)	(7,509		)
Depreciation and amortization	(119,105		)	(115,503		)
General and administrative	(14,813		)	(10,601		)
Expensed acquisition and investment related costs	(57		)	(556		)
Interest expense	(54,861		)	(54,583		)
Total return swap income	2,270			2,584
Interest and other income	5,909			6,764
Equity income from co-investments	32,774			10,899
Gain on sale of real estate and land	—			26,174
Gain on remeasurement of co-investment	—			86,482
Net income	$	96,639		$	187,551

Total assets for each of the reportable operating segments are summarized as follows as of March 31, 2018 and December 31, 2017 ($ in thousands):



	March 31, 2018		December 31, 2017
Assets:
Southern California	$	4,744,730	$	4,788,225
Northern California	4,182,261		4,215,449
Seattle Metro	1,506,405		1,520,372
Other real estate assets	55,209		55,488
Net reportable operating segment - real estate assets	10,488,605		10,579,534
Real estate under development	395,710		355,735
Co-investments	1,290,957		1,155,984
Cash and cash equivalents, including restricted cash	139,078		61,126
Marketable securities	197,745		190,004
Notes and other receivables	70,525		100,926
Prepaid expenses and other assets	60,047		52,397
Total assets	$	12,642,667	$	12,495,706