Segment Information

9 Months Ended

Sep. 30, 2019

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 contributions.

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, 2019 and 2018, and selected asset information as of September 30, 2019 and December 31, 2018, 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, 2019	$	262,115	$	51,519	$	313,634
September 30, 2018	258,568		48,977		307,545
Nine months ended:
September 30, 2019	777,745		153,168		930,913
September 30, 2018	766,816		143,540		910,356
Net income
Three months ended:
September 30, 2019	$	6,133	$	34,589	$	40,722
September 30, 2018	62,199		37,255		99,454
Nine months ended:
September 30, 2019	168,639		98,593		267,232
September 30, 2018	224,246		104,930		329,176
Total assets
As of:
September 30, 2019	$	11,216,682	$	2,078,302	$	13,294,984
December 31, 2018	10,481,594		2,269,764		12,751,358

Interest costs for the debt and preferred equity segment include actual costs incurred for borrowings on the 2017 MRA. Interest is imputed on the investments that do not collateralize the 2017 MRA using our weighted average 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, 2019 marketing, general and administrative expenses totaled $23.8 million and $75.3 million, respectively. For the three and nine months ended September 30, 2018 marketing, general and administrative expenses totaled $20.6 million and $66.6 million, respectively. All other expenses, except interest, relate entirely to the real estate assets.

There were no transactions between the above two segments.