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 nine months ended September 30, 2018 and 2017 ($ in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenues:
Southern California	$	151,847		$	148,150		$	452,047		$	438,654
Northern California	131,538			127,673			389,750			377,531
Seattle Metro	59,231			58,285			176,740			171,564
Other real estate assets	5,994			7,866			21,546			24,159
Total property revenues	$	348,610		$	341,974		$	1,040,083		$	1,011,908
Net operating income:
Southern California	$	106,853		$	104,378		$	321,477		$	311,017
Northern California	97,306			93,212			289,081			277,635
Seattle Metro	41,040			41,137			123,547			121,121
Other real estate assets	5,636			6,683			19,094			22,824
Total net operating income	250,835			245,410			753,199			732,597
Management and other fees from affiliates	2,307			2,395			6,812			6,927
Corporate-level property management expenses	(7,761		)	(7,573		)	(23,313		)	(22,604		)
Depreciation and amortization	(120,852		)	(117,451		)	(359,287		)	(350,893		)
General and administrative	(10,601		)	(9,788		)	(36,539		)	(30,726		)
Expensed acquisition and investment related costs	(31		)	(324		)	(156		)	(1,154		)
Interest expense	(55,196		)	(55,938		)	(166,335		)	(167,333		)
Total return swap income	2,184			2,538			6,682			7,653
Interest and other income	8,437			5,790			21,241			17,916
Equity income from co-investments	16,788			19,727			64,611			40,934
Gain on sale of real estate and land	—			249			22,244			26,423
Gain on remeasurement of co-investment	—			—			—			88,641
Net income	$	86,110		$	85,035		$	289,159		$	348,381

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



	September 30, 2018		December 31, 2017
Assets:
Southern California	$	4,566,713	$	4,687,277
Northern California	4,229,777		4,220,551
Seattle Metro	1,484,544		1,522,452
Other real estate assets	60,560		162,496
Net reportable operating segment - real estate assets	10,341,594		10,592,776
Real estate under development	403,644		355,735
Co-investments	1,267,593		1,155,984
Cash and cash equivalents, including restricted cash	174,626		61,126
Marketable securities	210,596		190,004
Notes and other receivables	69,166		100,926
Prepaid expenses and other assets	50,924		39,155
Total assets	$	12,518,143	$	12,495,706