Segment Information

12 Months Ended

Dec. 31, 2015

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 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.

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, 2015, 2014, and 2013, and selected asset information as of December 31, 2015 and 2014, 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, 2015	$	1,481,701		$	181,128	$	1,662,829
December 31, 2014	1,341,163			178,815		1,519,978
December 31, 2013	1,177,222			193,843		1,371,065
Income from continuing operations before equity in net gain on sale of interest in unconsolidated joint venture/real estate, purchase price fair value adjustment, gain on sale of real estate and depreciable real estate reserves
Years ended:
December 31, 2015	$	(63,345	)	$	153,585	$	90,240
December 31, 2014	22,178			150,852		173,030
December 31, 2013	(49,793		)	159,193		109,400
Total assets
As of:
December 31, 2015	$	18,175,665		$	1,682,276	$	19,857,941
December 31, 2014	15,671,662			1,424,925		17,096,587

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 2012 revolving credit facility and corporate 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 $94.9 million, $92.5 million, and $86.2 million for the years ended December 31, 2015, 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 years ended December 31, 2015, 2014, and 2013 (in thousands):

	Year ended December 31,
	2015			2014		2013
Income from continuing operations before equity in net gain on sale of interest in unconsolidated joint venture/real estate, purchase price fair value adjustment, gain on sale of real estate and depreciable real estate reserves	$	90,240		$	173,030	$	109,400
Equity in net gain on sale of interest in unconsolidated joint venture/real estate	15,844			123,253		3,601
Purchase price fair value adjustment	40,078			67,446		(2,305		)
Gain on sale of real estate	175,974			—		—
Depreciable real estate reserves	(19,226		)	—		—
Income from continuing operations	302,910			363,729		110,696
Net income from discontinued operations	427			19,075		25,687
Gain on sale of discontinued operations	14,122			163,059		14,900
Net income	$	317,459		$	545,863	$	151,283