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Segment Information
3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Information

16.Segment Information

We review operating and financial data for each property on an individual basis; therefore, each of our individual properties is a separate operating segment. We defined our reportable segments to be aligned with our method of internal reporting and the way our Chief Executive Officer, who is also our Chief Operating Decision Maker ("CODM"), makes key operating decisions, evaluates financial results, allocates resources and manages our business. Accordingly, we aggregate our operating segments into three reportable segments (commercial, multifamily, and third-party asset management and real estate services) based on the economic characteristics and nature of our assets and services.

The CODM measures and evaluates the performance of our operating segments, with the exception of the third-party asset management and real estate services business, based on the net operating income ("NOI") of properties within each segment. NOI includes property rental revenue and other property revenue, and deducts property operating expenses and real estate taxes.

With respect to the third-party asset management and real estate services business, the CODM reviews revenue streams generated by this segment ("Third-party real estate services, including reimbursements"), as well as the expenses attributable to the segment ("General and administrative: third-party real estate services"), which are both disclosed separately in our statements of operations. The following represents the components of revenue from our third-party real estate services business:

Three Months Ended March 31, 

    

2020

    

2019

 

(In thousands)

Property management fees

$

6,024

$

5,428

Asset management fees

 

2,724

 

3,488

Leasing fees

 

1,747

 

2,213

Development fees

 

2,812

 

1,596

Construction management fees

 

1,013

 

629

Other service revenue

 

1,635

 

883

Third-party real estate services revenue, excluding reimbursements

 

15,955

 

14,237

Reimbursements revenue (1)

 

13,761

 

13,454

Third-party real estate services revenue, including reimbursements

29,716

27,691

Third-party real estate services expenses

28,814

28,066

Third-party real estate services revenue less expenses

$

902

$

(375)

(1)Represents reimbursement of expenses incurred by us on behalf of third parties, including allocated payroll costs and amounts paid to third-party contractors for construction management projects.

Management company assets primarily consist of management and leasing contracts with a net book value of $29.9 million and $31.5 million and are classified in "Other assets, net" in our balance sheets as of March 31, 2020 and December 31, 2019. Consistent with internal reporting presented to our CODM and our definition of NOI, the third-party asset management and real estate services operating results are excluded from the NOI data below.

The following is the reconciliation of net income attributable to common shareholders to consolidated NOI:

Three Months Ended March 31, 

    

2020

    

2019

 

(In thousands)

Net income attributable to common shareholders

$

42,925

$

24,861

Add:

 

  

 

  

Depreciation and amortization expense

 

48,489

 

48,719

General and administrative expense:

 

  

 

  

Corporate and other

 

13,176

 

12,314

Third-party real estate services

 

28,814

 

28,066

Share-based compensation related to Formation Transaction and special equity awards

 

9,441

 

11,131

Transaction and other costs

 

5,309

 

4,895

Interest expense

 

12,005

 

17,174

Loss on extinguishment of debt

 

33

 

Income tax benefit

 

(2,345)

 

(1,172)

Net income attributable to redeemable noncontrolling interests

 

5,250

 

3,387

Less:

 

  

 

  

Third-party real estate services, including reimbursements

 

29,716

 

27,691

Other revenue (1)

 

1,630

 

1,640

Income (loss) from unconsolidated real estate ventures, net

 

(2,692)

 

3,601

Interest and other income, net

 

907

 

951

Gain on sale of real estate

 

59,477

 

39,033

Consolidated NOI

$

74,059

$

76,459

(1)Excludes parking revenue of $6.4 million and $6.5 million for the three months ended March 31, 2020 and 2019.

The following is a summary of NOI by segment. Items classified in the Other column include future development assets, corporate entities and the elimination of intersegment activity.

Three Months Ended March 31, 2020

    

Commercial

    

Multifamily

    

Other

    

Total

 

(In thousands)

Property rentals revenue

$

91,198

$

32,803

$

(3,621)

$

120,380

Other property revenue

 

6,244

 

137

 

 

6,381

Total property revenue

 

97,442

 

32,940

 

(3,621)

 

126,761

Property expense:

 

 

  

 

  

 

  

Property operating

 

27,943

 

10,307

 

(3,747)

 

34,503

Real estate taxes

 

12,372

 

4,738

 

1,089

 

18,199

Total property expense

 

40,315

 

15,045

 

(2,658)

 

52,702

Consolidated NOI

$

57,127

$

17,895

$

(963)

$

74,059

Three Months Ended March 31, 2019

    

Commercial

    

Multifamily

    

Other

    

Total

(In thousands)

Property rentals revenue

$

96,247

$

28,249

$

(5,083)

$

119,413

Other property revenue

 

6,375

 

80

 

 

6,455

Total property revenue

 

102,622

 

28,329

 

(5,083)

 

125,868

Property expense:

 

  

 

  

 

  

 

  

Property operating

 

30,481

 

7,967

 

(6,274)

 

32,174

Real estate taxes

 

12,513

 

3,548

 

1,174

 

17,235

Total property expense

 

42,994

 

11,515

 

(5,100)

 

49,409

Consolidated NOI

$

59,628

$

16,814

$

17

$

76,459

The following is a summary of certain balance sheet data by segment:

    

Commercial

    

Multifamily

    

Other

    

Total

(In thousands)

March 31, 2020

Real estate, at cost

$

3,450,039

$

2,016,514

$

384,980

$

5,851,533

Investments in unconsolidated real estate ventures

 

398,849

 

107,162

 

36,972

 

542,983

Total assets (1)

 

3,570,707

 

1,697,302

 

871,804

 

6,139,813

December 31, 2019

 

  

 

  

 

  

 

  

Real estate, at cost

$

3,415,294

$

1,998,297

$

361,928

$

5,775,519

Investments in unconsolidated real estate ventures

 

396,199

 

107,882

 

38,945

 

543,026

Total assets (1)

 

3,361,122

 

1,682,872

 

942,257

 

5,986,251

(1)Includes assets held for sale. See Note 3 for additional information.