Segment Information

3 Months Ended

Mar. 31, 2020

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 months ended March 31, 2020 and 2019, and selected asset information as of March 31, 2020 and December 31, 2019, regarding our operating segments are as follows (in thousands):



	Real Estate Segment		Debt and Preferred Equity Segment		Total Company
Total revenues
Three months ended:
March 31, 2020	$	275,770	$	38,533	$	314,303
March 31, 2019	254,224		50,031		304,255
Net income
Three months ended:
March 31, 2020	$	111,233	$	15,881	$	127,114
March 31, 2019	21,572		31,197		52,769
Total assets
As of:
March 31, 2020	$	11,345,239	$	1,875,368	$	13,220,607
December 31, 2019	11,063,155		1,703,165		12,766,320

Interest costs for the debt and preferred equity segment include actual costs incurred for borrowings on the 2017 MRA and the FHLB Facility. Interest is imputed on the investments that do not collateralize the 2017 MRA and the FHLB Facility 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 because 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 months ended March 31, 2020 and 2019, marketing, general and administrative expenses totaled $19.6 million and $26.0 million, respectively. All other expenses, except interest, relate entirely to the real estate assets.

There were no transactions between the above two segments.