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. The Company'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 and six months ended June 30, 2018 and 2017 ($ in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Revenues:
Southern California	$	150,431		$	145,600		$	300,200		$	290,504
Northern California	129,590			126,550			258,212			249,858
Seattle Metro	58,795			57,087			117,509			113,279
Other real estate assets	7,710			7,529			15,552			16,293
Total property revenues	$	346,526		$	336,766		$	691,473		$	669,934
Net operating income:
Southern California	$	108,158		$	103,522		$	214,624		$	206,639
Northern California	97,058			94,680			191,775			184,423
Seattle Metro	40,496			39,596			82,507			79,984
Other real estate assets	6,668			8,225			13,458			16,141
Total net operating income	252,380			246,023			502,364			487,187
Management and other fees from affiliates	2,197			2,296			4,505			4,532
Corporate-level property management expenses	(7,782		)	(7,522		)	(15,552		)	(15,031		)
Depreciation and amortization	(119,330		)	(117,939		)	(238,435		)	(233,442		)
General and administrative	(11,125		)	(10,337		)	(25,938		)	(20,938		)
Expensed acquisition and investment related costs	(68		)	(274		)	(125		)	(830		)
Interest expense	(56,278		)	(56,812		)	(111,139		)	(111,395		)
Total return swap income	2,228			2,531			4,498			5,115
Interest and other income	6,895			5,362			12,804			12,126
Equity income from co-investments	15,049			10,308			47,823			21,207
Gain on sale of real estate and land	22,244			—			22,244			26,174
Gain on remeasurement of co-investment	—			2,159			—			88,641
Net income	$	106,410		$	75,795		$	203,049		$	263,346

Total assets for each of the reportable operating segments are summarized as follows as of June 30, 2018 and December 31, 2017 ($ in thousands):



	June 30, 2018		December 31, 2017
Assets:
Southern California	$	4,601,755	$	4,685,358
Northern California	4,253,397		4,219,114
Seattle Metro	1,495,388		1,521,907
Other real estate assets	60,462		162,496
Net reportable operating segment - real estate assets	10,411,002		10,588,875
Real estate under development	343,841		355,735
Co-investments	1,291,320		1,155,984
Cash and cash equivalents, including restricted cash	177,576		61,126
Marketable securities	207,191		190,004
Notes and other receivables	68,386		100,926
Prepaid expenses and other assets	56,338		43,056
Total assets	$	12,555,654	$	12,495,706