Business Segments

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Business Segments

Note 13 — Business Segments

In 2019, as a result of the 2018 sale of the Asset Management business, we revised the information regularly reviewed by our chief executive officer, who is our chief operating decision maker, to assess our operating performance. We have determined we have four segments: Same Store, Redevelopment and Development, Acquisition, and Other Real Estate.

Our Same Store segment includes communities that have reached a stabilized level of operations as of the beginning of a two-year comparable period and maintained it throughout the current and comparable prior year, and are not expected to be sold

within 12 months. Our Redevelopment and Development segment includes apartment communities that are currently under construction that have not achieved a stabilized level of operations, and those that have been completed in recent years that have not achieved and maintained stabilized operations for both the current and comparable prior year. Our Acquisition segment includes communities that we have acquired since the beginning of a two-year comparable period. Our Other Real Estate segment primarily includes communities that are subject to limitations on rent increases, communities that we expect to sell within 12 months but do not yet meet the criteria to be classified as held for sale, certain retail spaces and 1001 Brickell Bay Drive.

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 is defined as our share of rental and other property revenues, excluding utility costs reimbursed by residents, less our share of property operating expenses, net of utility reimbursements, for consolidated communities. In our consolidated statements of operations, utility reimbursements are included in rental and other property revenues attributable to real estate, in accordance with GAAP.

As of December 31, 2019, our Same Store segment included 91 consolidated apartment communities with 26,649 apartment homes; our Redevelopment and Development segment included seven consolidated communities with 3,143 homes; our Acquisition segment included seven consolidated communities with 1,590 homes; and our Other Real Estate segment included 15 consolidated communities with 1,315 homes and one office building.

The following tables present the revenues, proportionate property net operating income and income before income tax benefit of our segments on a proportionate basis and excluding our proportionate share of four apartment communities with 142 apartment homes that we neither manage nor consolidate, and amounts related to communities sold as of December 31, 2019 for the years ended December 31, 2019, 2018, and 2017 (in thousands):

	Same Store		Redevelopment and Development		Acquisition		Other Real Estate		Proportionate and Other Adjustments (1)		Corporate and Amounts Not Allocated to Segments (2)			Consolidated
Year ended December 31, 2019:
Total revenues	$	691,379	$	75,522	$	42,038	$	45,105	$	33,450	$	26,800		$	914,294
Property operating expenses    attributable to real estate		181,802		27,919		11,715		17,717		31,140		40,928			311,221
Other operating expenses not allocated    to segments (3)		—		—		—		—		—		446,300			446,300
Total operating expenses		181,802		27,919		11,715		17,717		31,140		487,228			757,521
Proportionate property net operating       income		509,577		47,603		30,323		27,388		2,310		(460,428	)		156,773
Other items included in income before    income tax benefit (4)		—		—		—		—		—		348,119			348,119
Income before income tax benefit	$	509,577	$	47,603	$	30,323	$	27,388	$	2,310	$	(112,309	)	$	504,892

	Same Store		Redevelopment and Development		Acquisition		Other Real Estate		Proportionate and Other Adjustments (1)		Corporate and Amounts Not Allocated to Segments (2)			Consolidated
Year ended December 31, 2018:
Total revenues	$	665,835	$	76,687	$	27,923	$	37,647	$	31,442	$	132,876		$	972,410
Property operating expenses    attributable to real estate		177,466		27,836		7,689		14,910		29,323		50,677			307,901
Other operating expenses not allocated    to segments (3)		—		—		—		—		—		448,753			448,753
Total operating expenses		177,466		27,836		7,689		14,910		29,323		499,430			756,654
Proportionate property net operating       income		488,369		48,851		20,234		22,737		2,119		(366,554	)		215,756
Other items included in income before    income tax benefit (4)		—		—		—		—		—		487,820			487,820
Income before income tax benefit	$	488,369	$	48,851	$	20,234	$	22,737	$	2,119	$	121,266		$	703,576

	Same Store		Redevelopment and Development		Acquisition		Other Real Estate		Proportionate and Other Adjustments (1)		Corporate and Amounts Not Allocated to Segments (2)			Consolidated
Year ended December 31, 2017:
Total revenues	$	626,311	$	72,995	$	—	$	36,869	$	39,776	$	229,486		$	1,005,437
Property operating expenses attributable    to real estate		171,167		26,471		—		14,121		29,782		77,585			319,126
Other operating expenses not allocated    to segments (3)		—		—		—		—		—		492,328			492,328
Total operating expenses		171,167		26,471		—		14,121		29,782		569,913			811,454
Proportionate property net operating       income		455,144		46,524		—		22,748		9,994		(340,427	)		193,983
Other items included in income before    income tax benefit (4)		—		—		—		—		—		122,260			122,260
Income before income tax benefit	$	455,144	$	46,524	$	—	$	22,748	$	9,994	$	(218,167	)	$	316,243

(1) Represents adjustments for the noncontrolling interests in consolidated real estate partnerships’ share of the results of consolidated apartment communities in our segments, which are included in the related consolidated amounts, but excluded from proportionate property net operating income for our segment evaluation. Also includes the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results. Utility reimbursements are included in rental and other property revenues attributable to real estate in our consolidated statements of operations prepared in accordance with GAAP.

(2) Includes the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any, and the operating results of communities owned by consolidated partnerships served by our Asset Management business prior to its sale in July 2018. Corporate and Amounts Not Allocated to Segments also includes property management expenses and casualty gains and losses, which are included in consolidated property operating expenses and are not part of our segment performance measure.

(3) Other operating expenses not allocated to segments consists of property operating expenses of partnerships served by our Asset Management business prior to its sale in July 2018, depreciation and amortization, general and administrative expenses and other operating expenses including provision for real estate impairment loss, which are not included in our measure of segment performance.

(4) Other items included in income before income tax benefit primarily consists of gain on dispositions of real estate and the Asset Management business and interest expense.

The assets of our segments and the consolidated assets not allocated to our segments were as follows (in thousands):

	December 31, 2019		December 31, 2018
Same Store	$	3,982,586	$	4,068,880
Redevelopment and Development		946,390		792,126
Acquisition		623,037		507,190
Other Real Estate		647,725		327,092
Corporate and other assets (1)		629,001		494,716
Total consolidated assets	$	6,828,739	$	6,190,004

(1) Includes the assets not allocated to our segments, primarily corporate assets, assets of apartment communities which were sold or classified as held for sale as of December 31, 2019, and the Asset Management business.

For the years ended December 31, 2019, 2018, and 2017, capital additions related to our segments were as follows (in thousands):

	2019		2018		2017
Same Store	$	153,944	$	171,869	$	215,130
Redevelopment and Development		194,498		138,103		84,712
Acquisition		33,122		14,228		—
Other Real Estate		20,011		6,314		12,044
Total capital additions	$	401,575	$	330,514	$	311,886