Segment Information

The Company has two reportable segments, real estate and debt and preferred equity investments. 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, insurance, 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 consolidated results of operations for the three and nine months ended September 30, 2018 and 2017, and selected asset information as of September 30, 2018 and December 31, 2017, regarding our operating segments are as follows (in thousands):



	Real Estate Segment			Debt and Preferred Equity Segment		Total Company
Total revenues
Three months ended:
September 30, 2018	$	258,568		$	48,977	$	307,545
September 30, 2017	326,780			47,820		374,600
Nine months ended:
September 30, 2018	766,816			143,540		910,356
September 30, 2017	1,001,390			148,741		1,150,131
Net income
Three months ended:
September 30, 2018	$	62,587		$	36,867	$	99,454
September 30, 2017	6,073			39,722		45,795
Nine months ended:
September 30, 2018	224,609			104,567		329,176
September 30, 2017	(68,379		)	131,113		62,734
Total assets
As of:
September 30, 2018	$	11,256,296		$	2,198,708	$	13,455,004
December 31, 2017	11,631,290			2,351,614		13,982,904

Interest costs for the debt and preferred equity segment include actual costs incurred for borrowings on the 2016 MRA and 2017 MRA. Interest is imputed on the investments that do not collateralize the 2016 MRA or 2017 MRA 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 three and nine months ended September 30, 2018, marketing, general and administrative expenses totaled $20.6 million, and $66.6 million, respectively. For the three and nine months ended September 30, 2017, marketing, general and administrative expenses totaled $24.0 million, and $72.4 million, respectively. All other expenses, except interest, relate entirely to the real estate assets.

There were no transactions between the above two segments.