Segment Information

12 Months Ended

Dec. 31, 2016

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, 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, 2016, 2015, and 2014, and selected asset information as of December 31, 2016 and 2015, 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, 2016	$	1,629,919		$	234,062	$	1,863,981
December 31, 2015	1,465,881			196,948		1,662,829
December 31, 2014	1,320,777			199,201		1,519,978
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, depreciable real estate reserves, loss on early extinguishment of debt, and (loss) gain on sale of marketable securities
Years ended:
December 31, 2016	$	(203,988	)	$	211,244	$	7,256
December 31, 2015	(78,681		)	168,970		90,289
December 31, 2014	31,805			169,695		201,500
Total assets
As of:
December 31, 2016	$	13,868,085		$	1,989,702	$	15,857,787
December 31, 2015	17,765,854			1,961,792		19,727,646

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 includes actual costs incurred for investments collateralizing the MRA. Interest is imputed on the remaining investments using our 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 to the debt and preferred equity segment since the use of personnel and resources is dependent on transaction volume between the two segments and varies period over period. In addition, we base performance on the individual segments prior to allocating marketing, general and administrative expenses. For the years ended, December 31, 2016, 2015, and 2014 marketing, general and administrative expenses totaled $99.8 million, $94.9 million, and $92.5 million respectively. 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, 2016, 2015, and 2014 (in thousands):

	Year ended December 31,
	2016			2015			2014
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, depreciable real estate reserves, loss on early extinguishment of debt, and loss (gain) on sale of marketable securities	$	7,256		$	90,289		$	201,500
Equity in net gain on sale of interest in unconsolidated joint venture/real estate	44,009			15,844			123,253
Purchase price fair value adjustment	—			40,078			67,446
Gain on sale of real estate, net	238,116			175,974			—
Depreciable real estate reserves	(10,387		)	(19,226		)	—
Loss on early extinguishment of debt	—			(49		)	(32,365		)
(Loss) gain on sale of investment in marketable securities	(83		)	—			3,895
Income from continuing operations	278,911			302,910			363,729
Net income from discontinued operations	—			427			19,075
Gain on sale of discontinued operations	—			14,122			163,059
Net income	$	278,911		$	317,459		$	545,863