Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

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 contributions.

The primary sources of revenue are generated from tenant rents, 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 six months ended June 30, 2022 and 2021, and selected asset information as of June 30, 2022 and December 31, 2021, regarding our operating segments are as follows (in thousands):

	Real Estate Segment		Debt and Preferred Equity Segment		Total Company
Total revenues
Three months ended:
June 30, 2022	$	181,038	$	20,407	$	201,445
June 30, 2021	198,000		20,107		218,107
Six months ended:
June 30, 2022	$	349,114	$	40,295	$	389,409
June 30, 2021	404,829		39,380		444,209
Net (loss) income
Three months ended:
June 30, 2022	$	(53,408)	$	15,459	$	(37,949)
June 30, 2021	100,239		16,895		117,134
Six months ended:
June 30, 2022	$	(56,890)	$	32,426	$	(24,464)
June 30, 2021	80,212		33,067		113,279
Total assets
As of:
June 30, 2022	$	9,567,725	$	1,137,158	$	10,704,883
December 31, 2021	9,974,140		1,092,489		11,066,629

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 because the use of personnel and resources is dependent on transaction volume between the two segments and varies between periods. In addition, we base performance on the individual segments prior to allocating marketing, general and administrative expenses. For the three and six months ended June 30, 2022, marketing, general and administrative expenses totaled $23.5 million and $48.3 million. For the three and six months ended June 30, 2021, marketing, general and administrative expenses totaled $22.1 million and $44.9 million. All other expenses, except interest, relate entirely to the real estate assets.

There were no transactions between the above two segments.