Reportable Segments

12 Months Ended

Dec. 31, 2016

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Segment Reporting Disclosure [Text Block]

17. Reportable Segments

Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses and about which discrete financial information is available that is evaluated regularly by the chief operating decision maker. The chief operating decision maker decides how resources are allocated and assesses performance on a recurring basis at least quarterly.

The Company’s primary business is the acquisition, development and management of multifamily residential properties, which includes the generation of rental and other related income through the leasing of apartment units to residents. The chief operating decision maker evaluates the Company's operating performance geographically by market and both on a same store and non-same store basis. The Company’s same store operating segments located in its coastal markets represent its reportable segments. As of January 1, 2016, the Company has revised the presentation of Southern California to show separate results for Los Angeles, San Diego and Orange County, along with a subtotal of the three markets combined, for both the current and comparable periods. The Company's operating segments located in its other markets (Phoenix) that are not material have been included in the tables presented below. See also Note 4 for further discussion of the Starwood Transaction and the operating segments/locations in which properties were sold.

The Company’s fee and asset management and development activities are other business activities that do not constitute an operating segment and as such, have been aggregated in the "Other" category in the tables presented below.

All revenues are from external customers and there is no customer who contributed 10% or more of the Company’s total revenues during the three years ended December 31, 2016, 2015 or 2014.

The primary financial measure for the Company’s rental real estate segment is net operating income (“NOI”), which represents rental income less: 1) property and maintenance expense and 2) real estate taxes and insurance expense (all as reflected in the accompanying consolidated statements of operations and comprehensive income). As of January 1, 2016, NOI no longer includes an allocation of property management expenses either in the current or comparable periods. The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company’s apartment properties.

The following table presents a reconciliation of NOI from our rental real estate specific to continuing operations for the years ended December 31, 2016, 2015 and 2014, respectively (amounts in thousands):

	Year Ended December 31,
	2016			2015			2014
Rental income	$	2,422,233		$	2,736,578		$	2,605,311
Property and maintenance expense	(406,823		)	(479,160		)	(473,098		)
Real estate taxes and insurance expense	(317,387		)	(339,802		)	(325,401		)
Total operating expenses	(724,210		)	(818,962		)	(798,499		)
Net operating income	$	1,698,023		$	1,917,616		$	1,806,812

The following tables present NOI for each segment from our rental real estate specific to continuing operations for the years ended December 31, 2016, 2015 and 2014, respectively, as well as total assets and capital expenditures at December 31, 2016 and 2015, respectively (amounts in thousands):

	Year Ended December 31, 2016						Year Ended December 31, 2015						Year Ended December 31, 2014
	Rental Income		Operating Expenses		NOI		Rental Income		Operating Expenses		NOI		Rental Income		Operating Expenses		NOI
Same store (1)
Los Angeles	$	368,734	$	107,138	$	261,596	$	349,285	$	104,614	$	244,671	$	259,437	$	81,972	$	177,465
San Diego	88,049		23,489		64,560		83,491		22,938		60,553		79,217		22,605		56,612
Orange County	79,602		18,931		60,671		75,068		18,550		56,518		71,440		18,211		53,229
Subtotal - Southern California	536,385		149,558		386,827		507,844		146,102		361,742		410,094		122,788		287,306
New York	457,882		160,772		297,110		450,460		152,682		297,778		455,598		156,881		298,717
Washington D.C.	424,055		126,154		297,901		417,985		123,450		294,535		451,973		131,964		320,009
San Francisco	365,019		88,141		276,878		343,089		84,603		258,486		340,252		96,217		244,035
Boston	237,683		66,283		171,400		232,462		67,252		165,210		244,612		70,070		174,542
Seattle	154,482		42,644		111,838		145,646		39,307		106,339		153,197		45,781		107,416
Other Markets	1,798		568		1,230		1,680		528		1,152		385,664		120,395		265,269
Total same store	2,177,304		634,120		1,543,184		2,099,166		613,924		1,485,242		2,441,390		744,096		1,697,294
Non-same store/other (2) (3)
Non-same store	163,768		56,403		107,365		72,123		27,078		45,045		83,715		28,992		54,723
Other (3)	81,161		33,687		47,474		565,289		177,960		387,329		80,206		25,411		54,795
Total non-same store/other	244,929		90,090		154,839		637,412		205,038		432,374		163,921		54,403		109,518
Totals	$	2,422,233	$	724,210	$	1,698,023	$	2,736,578	$	818,962	$	1,917,616	$	2,605,311	$	798,499	$	1,806,812

(1) For the years ended December 31, 2016 and 2015, same store primarily includes all properties acquired or completed that are stabilized prior to January 1, 2015, less properties subsequently sold, which represented 69,879 apartment units. For the year ended December 31, 2014, same store primarily includes all properties acquired or completed that are stabilized prior to January 1, 2014, less properties subsequently sold, which represented 96,286 apartment units.

(2) For the years ended December 31, 2016 and 2015, non-same store primarily includes properties acquired after January 1, 2015, plus any properties in lease-up and not stabilized as of January 1, 2015. For the year ended December 31, 2014, non-same store primarily includes properties acquired after January 1, 2014, plus any properties in lease-up and not stabilized as of January 1, 2014.

(3) Other includes development, other corporate operations and operations prior to sale for properties sold in 2014 through 2016 that do not meet the new discontinued operations criteria.

	Year Ended December 31, 2016				Year Ended December 31, 2015
	Total Assets		Capital Expenditures		Total Assets		Capital Expenditures
Same store (1)
Los Angeles	$	2,513,979	$	26,195	$	2,586,859	$	22,015
San Diego	471,937		5,172		488,260		4,608
Orange County	260,918		6,747		268,479		7,336
Subtotal - Southern California	3,246,834		38,114		3,343,598		33,959
New York	4,275,930		25,329		4,383,354		18,170
Washington D.C.	3,916,264		33,867		4,023,474		33,455
San Francisco	2,441,256		24,411		2,506,004		25,104
Boston	1,723,942		20,936		1,774,181		17,355
Seattle	1,031,764		13,464		1,061,351		9,106
Other Markets	12,902		67		13,162		182
Total same store	16,648,892		156,188		17,105,124		137,331
Non-same store/other (2) (3)
Non-same store	2,864,250		12,179		2,441,637		6,341
Other (3)	1,191,006		3,810		3,563,435		38,441
Total non-same store/other	4,055,256		15,989		6,005,072		44,782
Totals	$	20,704,148	$	172,177	$	23,110,196	$	182,113

(1) Same store primarily includes all properties acquired or completed that are stabilized prior to January 1, 2015, less properties subsequently sold, which represented 69,879 apartment units.

(2) Non-same store primarily includes properties acquired after January 1, 2015, plus any properties in lease-up and not stabilized as of January 1, 2015.

(3) Other includes development, other corporate operations and capital expenditures for properties sold.