Segment Information

12 Months Ended

Dec. 31, 2021

Segment Information

Segment Information

18.          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 consolidated statements of operations. The following represents the components of revenue from our third-party asset management and real estate services business:

	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Property management fees	$	19,427	$	20,178	$	22,437
Asset management fees		8,468		9,791		14,045
Development fees (1)		25,493		11,496		15,655
Leasing fees		5,833		5,594		7,377
Construction management fees		512		2,966		1,669
Other service revenue		6,146		7,255		4,269
Third-party real estate services revenue, excluding reimbursements		65,879		57,280		65,452
Reimbursement revenue (2)		48,124		56,659		55,434
Third-party real estate services revenue, including reimbursements		114,003		113,939		120,886
Third-party real estate services expenses		107,159		114,829		113,495
Third-party real estate services revenue less expenses	$	6,844	$	(890)	$	7,391

(1) As of December 31, 2021, we had estimated unrecognized development fee revenue totaling $48.6 million, of which $13.8 million, $12.0 million and $6.3 million is expected to be recognized in 2022, 2023 and 2024, and $16.5 million is expected to be recognized thereafter through 2027 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 $19.6 million and $25.5 million as of December 31, 2021 and 2020, which are classified in "Other assets, net" in our consolidated 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:

	Year Ended December 31,
	2021		2020		2019
	(In thousands)
Net income (loss) attributable to common shareholders	$	(79,257)	$	(62,303)	$	65,571
Add:
Depreciation and amortization expense		236,303		221,756		191,580
General and administrative expense:
Corporate and other		53,819		46,634		46,822
Third-party real estate services		107,159		114,829		113,495
Share-based compensation related to Formation Transaction and special equity awards		16,325		31,678		42,162
Transaction and other costs		10,429		8,670		23,235
Interest expense		67,961		62,321		52,695
Loss on extinguishment of debt		—		62		5,805
Impairment loss		25,144		10,232		—
Income tax expense (benefit)		3,541		(4,265)		(1,302)
Net income (loss) attributable to redeemable noncontrolling interests		(8,728)		(4,958)		8,573
Net loss attributable to noncontrolling interests		(1,740)		—		—
Less:
Third-party real estate services, including reimbursements revenue		114,003		113,939		120,886
Other revenue		7,671		15,372		7,638
Loss from unconsolidated real estate ventures, net		(2,070)		(20,336)		(1,395)
Interest and other income (loss), net		8,835		(625)		5,385
Gain on sale of real estate		11,290		59,477		104,991
Consolidated NOI	$	291,227	$	256,829	$	311,131

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

	Year Ended December 31, 2021
	Commercial		Multifamily		Other		Total
	(In thousands)
Property rental revenue	$	365,869	$	139,918	$	(6,201)	$	499,586
Parking revenue		12,441		415		246		13,102
Total property revenue		378,310		140,333		(5,955)		512,688
Property expense:
Property operating		103,022		52,527		(4,911)		150,638
Real estate taxes		45,701		20,207		4,915		70,823
Total property expense		148,723		72,734		4		221,461
Consolidated NOI	$	229,587	$	67,599	$	(5,959)	$	291,227
	Year Ended December 31, 2020
	Commercial		Multifamily		Other		Total
	(In thousands)
Property rental revenue	$	345,403	$	121,559	$	(8,004)	$	458,958
Parking revenue		13,888		327		239		14,454
Total property revenue		359,291		121,886		(7,765)		473,412
Property expense:
Property operating		105,489		47,508		(7,372)		145,625
Real estate taxes		47,607		19,233		4,118		70,958
Total property expense		153,096		66,741		(3,254)		216,583
Consolidated NOI	$	206,195	$	55,145	$	(4,511)	$	256,829

	Year Ended December 31, 2019
	Commercial		Multifamily		Other		Total
	(In thousands)
Property rental revenue	$	383,311	$	116,330	$	(6,368)	$	493,273
Parking revenue		25,593		380		—		25,973
Total property revenue		408,904		116,710		(6,368)		519,246
Property expense:
Property operating		113,177		35,236		(10,791)		137,622
Real estate taxes		50,115		15,021		5,357		70,493
Total property expense		163,292		50,257		(5,434)		208,115
Consolidated NOI	$	245,612	$	66,453	$	(934)	$	311,131

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

	Commercial		Multifamily		Other		Total
	(In thousands)
December 31, 2021
Real estate, at cost	$	3,477,260	$	2,367,712	$	391,504	$	6,236,476
Investments in unconsolidated real estate ventures		281,515		103,389		77,981		462,885
Total assets		3,739,902		1,797,807		848,497		6,386,206
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		3,430,509		1,787,718		861,320		6,079,547