Segment Information

12 Months Ended

Dec. 31, 2022

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, 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, 2022, 2021, and 2020 ($ in thousands):

	Years Ended December 31,
	2022		2021		2020
Revenues:
Southern California	$	652,742	$	580,305	$	558,839
Northern California	639,138		584,034		604,348
Seattle Metro	271,248		239,839		243,900
Other real estate assets	32,547		27,240		79,063
Total property revenues	$	1,595,675	$	1,431,418	$	1,486,150
Net operating income:
Southern California	$	464,023	$	402,608	$	385,766
Northern California	445,763		401,870		431,047
Seattle Metro	191,476		160,959		166,806
Other real estate assets	27,144		20,745		61,919
Total net operating income	1,128,406		986,182		1,045,538
Management and other fees from affiliates	11,139		9,138		9,598
Corporate-level property management expenses	(40,704)		(36,211)		(34,361)
Depreciation and amortization	(539,319)		(520,066)		(525,497)
General and administrative	(56,577)		(51,838)		(65,388)
Expensed acquisition and investment related costs	(2,132)		(203)		(1,591)
Impairment loss	—		—		(1,825)
Gain on sale of real estate and land	94,416		142,993		64,967
Interest expense	(204,798)		(203,125)		(220,633)
Total return swap income	7,907		10,774		10,733
Interest and other (loss) income	(19,040)		98,744		40,999
Equity income from co-investments	26,030		111,721		66,512
Deferred tax benefit (expense) on unconsolidated co-investments	10,236		(15,668)		(1,531)
Loss on early retirement of debt, net	(2)		(19,010)		(22,883)
Gain on remeasurement of co-investment	17,423		2,260		234,694
Net income	$	432,985	$	515,691	$	599,332

Total assets for each of the reportable operating segments are summarized as follows as of December 31, 2022 and 2021 ($ in thousands):

	As of December 31,
	2022		2021
Assets:
Southern California	$	3,925,251	$	3,956,814
Northern California	5,414,467		5,460,701
Seattle Metro	1,374,379		1,407,033
Other real estate assets	99,997		158,525
Net reportable operating segments - real estate assets	10,814,094		10,983,073
Real estate under development	24,857		111,562
Co-investments	1,127,491		1,177,802
Cash and cash equivalents, including restricted cash	42,681		58,638
Marketable securities	112,743		191,829
Notes and other receivables	103,045		341,033
Operating lease right-of-use assets	67,239		68,972
Prepaid expenses and other assets	80,755		64,964
Total assets	$	12,372,905	$	12,997,873