Business Segments

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Business Segments

Business Segments

We have two reportable segments: conventional real estate operations and affordable real estate operations. Our conventional real estate operations consist of market-rate apartment communities with rents paid by the residents and included 141 apartment communities with 42,566 apartment homes at March 31, 2015. Our affordable real estate operations consisted of 57 apartment communities with 8,769 apartment homes at March 31, 2015, with rents that are generally paid, in whole or part, by a government agency.

Due to the diversity of our economic ownership interests in our apartment communities, our chief executive officer, who is our chief operating decision maker, uses proportionate property net operating income to assess the operating performance of our apartment communities. Proportionate property net operating income reflects our share of rental and other property revenues less direct property operating expenses, including real estate taxes, for the consolidated and unconsolidated apartment communities that we own.

The following tables present the revenues, net operating income (loss) and income (loss) from continuing operations of our conventional and affordable real estate operations segments on a proportionate basis (excluding amounts related to apartment communities sold or classified as held for sale) for the three months ended March 31, 2015 and 2014 (in thousands):

	Conventional Real Estate Operations		Affordable Real Estate Operations		Proportionate Adjustments (1)		Corporate and Amounts Not Allocated to Segments (2)			Consolidated
Three Months Ended March 31, 2015:
Rental and other property revenues (3)	$	201,853	$	24,232	$	8,732	$	3,472		$	238,289
Tax credit and asset management revenues	—		—		—		5,976			5,976
Total revenues	201,853		24,232		8,732		9,448			244,265
Property operating expenses (3)	69,743		10,230		3,603		11,916			95,492
Investment management expenses	—		—		—		1,603			1,603
Depreciation and amortization (3)	—		—		—		74,432			74,432
General and administrative expenses	—		—		—		10,652			10,652
Other expenses, net	—		—		—		1,019			1,019
Total operating expenses	69,743		10,230		3,603		99,622			183,198
Net operating income (loss)	132,110		14,002		5,129		(90,174		)	61,067
Other items included in continuing operations	—		—		—		(42,610		)	(42,610		)
Income (loss) from continuing operations	$	132,110	$	14,002	$	5,129	$	(132,784	)	$	18,457

	Conventional Real Estate Operations		Affordable Real Estate Operations		Proportionate Adjustments (1)		Corporate and Amounts Not Allocated to Segments (2)			Consolidated
Three Months Ended March 31, 2014:
Rental and other property revenues (3)	$	183,696	$	23,381	$	7,131	$	25,928		$	240,136
Tax credit and asset management revenues	—		—		—		8,788			8,788
Total revenues	183,696		23,381		7,131		34,716			248,924
Property operating expenses (3)	64,899		10,268		2,451		21,650			99,268
Investment management expenses	—		—		—		1,252			1,252
Depreciation and amortization (3)	—		—		—		70,307			70,307
General and administrative expenses	—		—		—		10,527			10,527
Other expenses, net	—		—		—		2,296			2,296
Total operating expenses	64,899		10,268		2,451		106,032			183,650
Net operating income (loss)	118,797		13,113		4,680		(71,316		)	65,274
Other items included in continuing operations	—		—		—		(53,234		)	(53,234		)
Income (loss) from continuing operations	$	118,797	$	13,113	$	4,680	$	(124,550	)	$	12,040

(1) Represents adjustments for the noncontrolling interests in consolidated real estate partnerships’ share of the results of our consolidated apartment communities and the results of consolidated apartment communities that we do not manage, which are excluded from our measurement of segment performance but included in the related consolidated amounts, and our share of the results of operations of our unconsolidated real estate partnerships that we manage, which are included in our measurement of segment performance but excluded from the related consolidated amounts.

(2) Our basis for assessing segment performance excludes the results of apartment communities sold or classified as held for sale. In the segment presentation above, the current year and prior year operating results for apartment communities sold or classified as held for sale during 2015 or 2014 are presented within the Corporate and Amounts Not Allocated to Segments column.

(3) Proportionate property net operating income, our key measurement of segment profit or loss excludes property management revenues (which are included in rental and other property revenues), property management expenses and casualty gains and losses (which are included in property operating expenses) and depreciation and amortization. Accordingly, we do not allocate these amounts to our segments.

For the three months ended March 31, 2015 and 2014, proportionate capital additions related to our conventional segment totaled $61.3 million and $86.6 million, respectively, and capital additions related to our affordable segment totaled $2.6 million and $1.7 million, respectively.