Segment Information

6 Months Ended

Jun. 30, 2019

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 revenues 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 revenues 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, 2019 and 2018 ($ in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Revenues:
Southern California	$	151,966		$	147,249		$	302,990		$	293,807
Northern California	140,095			129,590			276,420			258,212
Seattle Metro	60,841			58,796			121,081			117,509
Other real estate assets	6,473			10,891			12,772			21,945
Total property revenues	$	359,375		$	346,526		$	713,263		$	691,473
Net operating income:
Southern California	$	108,693		$	105,882		$	216,122		$	210,245
Northern California	104,321			96,380			205,026			190,978
Seattle Metro	43,845			40,452			85,312			82,433
Other real estate assets	7,069			9,666			13,040			18,708
Total net operating income	263,928			252,380			519,500			502,364
Management and other fees from affiliates	2,260			2,197			4,595			4,505
Corporate-level property management expenses	(8,212		)	(7,782		)	(16,365		)	(15,552		)
Depreciation and amortization	(119,465		)	(119,330		)	(240,033		)	(238,435		)
General and administrative	(13,927		)	(11,125		)	(27,386		)	(25,938		)
Expensed acquisition and investment related costs	(24		)	(68		)	(56		)	(125		)
Gain on sale of real estate and land	—			22,244			—			22,244
Interest expense	(54,112		)	(56,278		)	(107,755		)	(111,139		)
Total return swap income	1,975			2,228			4,020			4,498
Interest and other income	8,347			6,895			20,608			12,804
Equity income from co-investments	16,959			15,049			33,235			47,823
Gain on early retirement of debt, net	332			—			1,668			—
Gain on remeasurement of co-investment	—			—			31,535			—
Net income	$	98,061		$	106,410		$	223,566		$	203,049

Total assets for each of the reportable operating segments are summarized as follows as of June 30, 2019 and December 31, 2018 ($ in thousands):



	June 30, 2019		December 31, 2018
Assets:
Southern California	$	4,275,854	$	4,350,377
Northern California	4,549,598		4,270,238
Seattle Metro	1,451,764		1,472,916
Other real estate assets	61,082		63,022
Net reportable operating segment - real estate assets	10,338,298		10,156,553
Real estate under development	542,207		454,629
Co-investments	1,324,081		1,300,140
Cash and cash equivalents, including restricted cash	54,971		151,395
Marketable securities	215,434		209,545
Notes and other receivables	74,416		71,895
Operating lease right-of-use assets	76,205		—
Prepaid expenses and other assets	45,533		39,439
Total assets	$	12,671,145	$	12,383,596