Segment Information

3 Months Ended

Mar. 31, 2021

Segment Information

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 define 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 parking 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,
	2021		2020
	(In thousands)
Property management fees	$	4,942	$	6,024
Asset management fees		2,228		2,724
Development fees (1)		14,250		2,812
Leasing fees		860		1,747
Construction management fees		172		1,013
Other service revenue		1,698		1,635
Third-party real estate services revenue, excluding reimbursements		24,150		15,955
Reimbursement revenue (2)		13,957		13,761
Third-party real estate services revenue, including reimbursements		38,107		29,716
Third-party real estate services expenses		28,936		28,814
Third-party real estate services revenue less expenses	$	9,171	$	902

(1) Estimated development fee revenue totaling $55.9 million as of March 31, 2021 is expected to be recognized over the next six years as unsatisfied performance obligations are completed.

(2) 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 $24.0 million and $25.5 million as of March 31, 2021 and December 31, 2020, which are classified in "Other assets, net" in our balance sheets. 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 (loss) attributable to common shareholders to consolidated NOI:

	Three Months Ended March 31,
	2021		2020
	(In thousands)
Net income (loss) attributable to common shareholders	$	(20,731)	$	42,925
Add:
Depreciation and amortization expense		64,726		48,489
General and administrative expense:
Corporate and other		12,475		13,176
Third-party real estate services		28,936		28,814
Share-based compensation related to Formation Transaction and special equity awards		4,945		9,441
Transaction and other costs		3,690		5,309
Interest expense		16,296		12,005
Loss on extinguishment of debt		—		33
Income tax expense (benefit)		4,315		(2,345)
Net income (loss) attributable to redeemable noncontrolling interests		(2,230)		5,250
Net loss attributable to noncontrolling interests		(1,108)		—
Less:
Third-party real estate services, including reimbursements revenue		38,107		29,716
Other revenue		2,186		1,630
Loss from unconsolidated real estate ventures, net		(943)		(2,692)
Interest and other income, net		9		907
Gain on sale of real estate		—		59,477
Consolidated NOI	$	71,955	$	74,059

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, 2021
	Commercial		Multifamily		Other		Total
	(In thousands)
Property rental revenue	$	90,603	$	32,586	$	(948)	$	122,241
Parking revenue		2,690		65		—		2,755
Total property revenue		93,293		32,651		(948)		124,996
Property expense:
Property operating		23,975		12,195		(1,439)		34,731
Real estate taxes		11,772		5,245		1,293		18,310
Total property expense		35,747		17,440		(146)		53,041
Consolidated NOI	$	57,546	$	15,211	$	(802)	$	71,955
	Three Months Ended March 31, 2020
	Commercial		Multifamily		Other		Total
	(In thousands)
Property rental revenue	$	91,198	$	32,803	$	(3,621)	$	120,380
Parking 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

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

	Commercial		Multifamily		Other		Total
	(In thousands)
March 31, 2021
Real estate, at cost	$	3,457,426	$	2,114,399	$	407,144	$	5,978,969
Investments in unconsolidated real estate ventures		321,741		108,877		24,858		455,476
Total assets (1)		3,416,231		1,827,316		775,770		6,019,317
December 31, 2020
Real estate, at cost	$	3,459,171	$	2,036,131	$	505,329	$	6,000,631
Investments in unconsolidated real estate ventures		327,798		108,593		24,978		461,369
Total assets (1)		3,430,509		1,787,718		861,320		6,079,547

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