Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

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 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 three and six months ended June 30, 2020 and 2019 ($ in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Revenues:
Southern California	$	143,983		$	152,415		$	299,625		$	303,878
Northern California	153,831			136,427			313,846			271,185
Seattle Metro	60,649			60,240			123,693			119,890
Other real estate assets	9,686			10,293			20,735			18,310
Total property revenues	$	368,149		$	359,375		$	757,899		$	713,263
Net operating income:
Southern California	$	99,307		$	109,260		$	210,404		$	217,256
Northern California	110,649			101,887			228,909			201,743
Seattle Metro	40,780			43,512			85,206			84,680
Other real estate assets	7,277			9,526			16,101			16,354
Total net operating income	258,013			264,185			540,620			520,033
Management and other fees from affiliates	2,348			2,260			4,965			4,595
Corporate-level property management expenses	(8,646		)	(8,469		)	(17,405		)	(16,898		)
Depreciation and amortization	(133,609		)	(119,465		)	(265,168		)	(240,033		)
General and administrative	(14,952		)	(13,927		)	(28,934		)	(27,386		)
Expensed acquisition and investment related costs	(15		)	(24		)	(102		)	(56		)
Gain on sale of real estate and land	16,597			—			16,597			—
Interest expense	(54,447		)	(54,112		)	(109,594		)	(107,755		)
Total return swap income	2,788			1,975			4,772			4,020
Interest and other income	11,405			8,347			6,184			20,608
Equity income from co-investments	17,257			16,959			38,554			33,235
Deferred tax expense on unrealized gain on unconsolidated co-investment	(1,636		)	—			(1,636		)	—
(Loss) gain on early retirement of debt, net	(5,027		)	332			(4,706		)	1,668
Gain on remeasurement of co-investment	—			—			234,694			31,535
Net income	$	90,076		$	98,061		$	418,841		$	223,566

Total assets for each of the reportable operating segments are summarized as follows as of June 30, 2020 and December 31, 2019 ($ in thousands):

	June 30, 2020		December 31, 2019
Assets:
Southern California	$	4,160,950	$	4,233,110
Northern California	5,491,288		4,408,404
Seattle Metro	1,429,957		1,456,187
Other real estate assets	11,829		250,959
Net reportable operating segment - real estate assets	11,094,024		10,348,660
Real estate under development	467,915		546,075
Co-investments	1,008,758		1,335,339
Real estate held for sale, net	24,495		—
Cash and cash equivalents, including restricted cash	256,475		81,094
Marketable securities	154,433		144,193
Notes and other receivables	44,748		134,365
Operating lease right-of-use assets	73,669		74,744
Prepaid expenses and other assets	52,894		40,935
Total assets	$	13,177,411	$	12,705,405