Segment Information

9 Months Ended

Sep. 30, 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 and nine months ended September 30, 2020 and 2019, and selected asset information as of September 30, 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:
September 30, 2020	$	226,856	$	22,988	$	249,844
September 30, 2019	262,115		51,519		313,634
Nine months ended:
September 30, 2020	$	716,382	$	101,464	817,846
September 30, 2019	777,745		153,168		930,913
Net income
Three months ended:
September 30, 2020	$	10,097	$	10,580	$	20,677
September 30, 2019	6,133		34,589		40,722
Nine months ended:
September 30, 2020	$	161,388	$	53,030	214,418
September 30, 2019	168,639		98,593		267,232
Total assets
As of:
September 30, 2020	$	11,079,252	$	1,244,787	$	12,324,039
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 and nine months ended September 30, 2020, marketing, general and administrative expenses totaled $23.6 million and $66.7 million, respectively. For the three and nine months ended September 30, 2019, marketing, general and administrative expenses totaled $23.8 million and $75.3 million, respectively. All other expenses, except interest, relate entirely to the real estate assets.

There were no transactions between the above two segments.