Segment Information

12 Months Ended

Dec. 31, 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 generally 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 years ended December 31, 2019, 2018, and 2017 ($ in thousands):



	Years Ended December 31,
	2019			2018			2017
Revenues:
Southern California	$	610,240		$	592,281		$	574,552
Northern California	569,556			522,561			505,313
Seattle Metro	245,476			236,525			229,871
Other real estate assets	25,356			39,503			44,589
Total property revenues	$	1,450,628		$	1,390,870		$	1,354,325
Net operating income:
Southern California	$	434,267		$	421,274		$	407,771
Northern California	420,320			385,483			371,597
Seattle Metro	173,875			165,244			162,111
Other real estate assets	24,471			33,535			37,460
Total net operating income	1,052,933			1,005,536			978,939
Management and other fees from affiliates	9,527			9,183			9,574
Corporate-level property management expenses	(32,899		)	(31,062		)	(30,156		)
Depreciation and amortization	(483,750		)	(479,884		)	(468,881		)
General and administrative	(54,262		)	(53,451		)	(41,385		)
Expensed acquisition and investment related costs	(168		)	(194		)	(1,569		)
Impairment loss	(7,105		)	—			—
Gain (loss) on sale of real estate and land	(3,164		)	61,861			26,423
Interest expense	(217,339		)	(220,492		)	(222,894		)
Total return swap income	8,446			8,707			10,098
Interest and other income	46,298			23,010			24,604
Equity income from co-investments	112,136			89,132			86,445
Deferred tax expense on unrealized gain on unconsolidated co-investment	(1,457		)	—			—
Gain (loss) on early retirement of debt, net	3,717			—			(1,796		)
Gain on remeasurement of co-investment	31,535			1,253			88,641
Net income	$	464,448		$	413,599		$	458,043

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



	As of December 31,
	2019		2018
Assets:
Southern California	$	4,233,110	$	4,368,882
Northern California	4,622,268		4,289,232
Seattle Metro	1,481,061		1,485,040
Other real estate assets	12,221		13,399
Net reportable operating segments - real estate assets	10,348,660		10,156,553
Real estate under development	546,075		454,629
Co-investments	1,335,339		1,300,140
Cash and cash equivalents, including restricted cash	81,094		151,395
Marketable securities	144,193		209,545
Notes and other receivables	134,365		71,895
Operating lease right-of-use assets	74,744		—
Prepaid expenses and other assets	40,935		39,439
Total assets	$	12,705,405	$	12,383,596