Segment Information

12 Months Ended

Dec. 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 and redevelopment, financing, construction and maintenance in the New York City 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.

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, 2014, 2013 and 2012, and selected asset information as of December 31, 2014 and 2013, 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, 2014	$	1,341,163		$	178,815	$	1,519,978
December 31, 2013	1,177,222			193,843		1,371,065
December 31, 2012	1,170,897			119,155		1,290,052
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, 2014	$	22,178		$	150,852	$	173,030
December 31, 2013	(49,793		)	159,193		109,400
December 31, 2012	41,366			92,414		133,780
Total assets
As of:
December 31, 2014	$	15,671,662		$	1,424,925	$	17,096,587
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 the portfolio is 100% leveraged by our MRA facility and 2012 revolving 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 $92.5 million, $86.2 million and $82.8 million for the years ended December 31, 2014, 2013 and 2012, 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, 2014, 2013 and 2012 (in thousands):

	Year ended December 31,
	2014		2013			2012
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	$	173,030	$	109,400		$	133,780
Equity in net gain on sale of interest in unconsolidated joint venture/real estate	123,253		3,601			37,053
Purchase price fair value adjustment	67,446		(2,305		)	—
Income from continuing operations	363,729		110,696			170,833
Net income from discontinued operations	19,075		25,687			32,240
Gain on sale of discontinued operations	163,059		14,900			6,627
Net income	$	545,863	$	151,283		$	209,700