Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

We are a REIT primarily engaged in owning, managing, leasing, acquiring and repositioning commercial properties in the New York Metropolitan area and have two reportable segments, real estate and debt and preferred equity. We evaluate real estate performance and allocate resources based on earnings contribution to income from continuing operations.

Our real estate portfolio is primarily located in the geographical markets of the New York Metropolitan area. The primary sources of revenue are generated from tenant rents and escalations and reimbursement revenue. Real estate property operating expenses consist primarily of security, maintenance, utility costs, real estate taxes and ground rent expense (at certain applicable properties). See Note 5, "Debt and Preferred Equity Investments," for additional details on our debt and preferred equity investments.

Selected results of operations for the years ended December 31, 2013, 2012 and 2011, and selected asset information as of December 31, 2013 and 2012, regarding our operating segments are as follows (in thousands):

	Real Estate Segment			Debt and Preferred Equity Segment		Total Company
Total revenues
Years ended:
December 31, 2013	$	1,275,234		$	193,843	$	1,469,077
December 31, 2012	1,263,574			119,155		1,382,729
December 31, 2011	1,126,441			120,418		1,246,859
Income from continuing operations before equity in net gain on sale of interest in unconsolidated joint venture/real estate and purchase price fair value adjustment
Years ended:
December 31, 2013	$	(27,024	)	$	160,386	$	133,362
December 31, 2012	60,455			92,946		153,401
December 31, 2011	20,327			101,037		121,364
Total assets
As of:
December 31, 2013	$	13,641,727		$	1,317,274	$	14,959,001
December 31, 2012	13,028,406			1,357,890		14,386,296

Income from continuing operations represents total revenues less total expenses for the real estate segment and total investment income less allocated interest expense for the debt and preferred equity segment. Interest costs for the debt and preferred equity segment are imputed assuming 100% leverage at our 2012 revolving credit facility borrowing cost. We also allocate loan loss reserves, net of recoveries, to the debt and preferred equity segment. We do not allocate marketing, general and administrative expenses and transaction related costs (totaling approximately $90.2 million, $88.5 million and $85.7 million for the years ended December 31, 2013, 2012 and 2011, respectively) to the debt and preferred equity segment since we base performance on the individual segments prior to allocating marketing, general and administrative expenses. All other expenses, except interest, relate entirely to the real estate assets.

There were no transactions between the above two segments.

The table below reconciles income from continuing operations to net income for the years ended December 31, 2013, 2012 and 2011 (in thousands):

	Years ended December 31,
	2013			2012		2011
Income from continuing operations before equity in net gain on sale of interest in unconsolidated joint venture/real estate and purchase price fair value adjustment	$	133,362		$	153,401	$	121,364
Equity in net gain on sale of interest in unconsolidated joint venture/real estate	3,601			37,053		2,918
Purchase price fair value adjustment	(2,305		)	—		498,195
Income from continuing operations	134,658			190,454		622,477
Net income from discontinued operations	1,725			12,619		8,560
Gain on sale of discontinued operations	14,900			6,627		46,085
Net income	$	151,283		$	209,700	$	677,122