Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company is a REIT engaged in all aspects of property ownership and management including investment, leasing, operations, capital improvements, development, financing, construction and maintenance 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, 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 4, "Debt and Preferred Equity Investments," for additional details on our debt and preferred equity investments.

Selected results of operations for the three months ended March 31, 2014 and 2013, and selected asset information as of March 31, 2014 and December 31, 2013, regarding our operating segments are as follows (in thousands):

	Real Estate Segment			Debt and Preferred Equity Segment		Total Company
Total revenues
Three months ended:
March 31, 2014	$	327,044		$	54,084	$	381,128
March 31, 2013	307,245			52,708		359,953
Income from continuing operations before equity in net gain on sale of interest in unconsolidated joint venture/real estate
Three months ended:
March 31, 2014	$	5,683		$	45,583	$	51,266
March 31, 2013	(14,922		)	43,350		28,428
Total assets
As of:
March 31, 2014	$	13,855,420		$	1,507,869	$	15,363,289
December 31, 2013	13,641,727			1,317,274		14,959,001

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 MRA facility and 2012 credit facility borrowing cost. We also allocate loan loss reserves, net of recoveries, and transaction related costs to the debt and preferred equity segment. We do not allocate marketing, general and administrative expenses (totaling $23.3 million and $21.1 million for the three months ended March 31, 2014 and 2013, 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 three months ended March 31, 2014 and 2013 (in thousands):

	Three Months Ended March 31,
	2014		2013
Income from continuing operations before equity in net gain on sale of interest in unconsolidated joint venture/real estate	$	51,266	$	28,428
Equity in net gain on sale of interest in unconsolidated joint venture/real estate	104,640		—
Income from continuing operations	155,906		28,428
Net income from discontinued operations	706		796
Gain on sale of discontinued operations	—		1,113
Net income	$	156,612	$	30,337