Segment Information

3 Months Ended

Mar. 31, 2023

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 three months ended March 31, 2023 and 2022 ($ in thousands):

	Three Months Ended March 31,
	2023		2022
Revenues:
Southern California	$	166,877	$	153,339
Northern California	163,624		152,745
Seattle Metro	70,038		64,203
Other real estate assets	9,117		8,929
Total property revenues	$	409,656	$	379,216
Net operating income:
Southern California	$	116,942	$	107,802
Northern California	114,451		105,140
Seattle Metro	49,894		43,296
Other real estate assets	7,957		6,878
Total net operating income	289,244		263,116
Management and other fees from affiliates	2,765		2,689
Corporate-level property management expenses	(11,432)		(10,172)
Depreciation and amortization	(136,347)		(133,533)
General and administrative	(15,311)		(12,242)
Expensed acquisition and investment related costs	(339)		(8)
Casualty loss	(433)		—
Gain on sale of real estate and land	59,238		—
Interest expense	(51,045)		(50,377)
Total return swap income	1,033		2,544
Interest and other income (loss)	12,450		(7,567)
Equity income from co-investments	10,871		21,171
Deferred tax benefit on unconsolidated co-investments	900		2,754
Net income	$	161,594	$	78,375

Total assets for each of the reportable operating segments are summarized as follows as of March 31, 2023 and December 31, 2022 ($ in thousands):

	March 31, 2023		December 31, 2022
Assets:
Southern California	$	3,859,639	$	3,892,003
Northern California	5,366,386		5,414,467
Seattle Metro	1,364,364		1,374,379
Other real estate assets	96,644		133,245
Net reportable operating segment - real estate assets	10,687,033		10,814,094
Real estate under development	21,909		24,857
Co-investments	1,131,183		1,127,491
Cash and cash equivalents, including restricted cash	77,158		42,681
Marketable securities	107,002		112,743
Notes and other receivables	120,586		103,045
Operating lease right-of-use assets	66,373		67,239
Prepaid expenses and other assets	68,530		80,755
Total assets	$	12,279,774	$	12,372,905