Segment Information

12 Months Ended

Dec. 31, 2023

Segment Information

Segment Information

20.          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 CODM, makes key operating decisions, evaluates financial results, allocates resources and manages our business. Accordingly, we aggregate our operating segments into three reportable segments (multifamily, commercial 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,
	2023		2022		2021
	(In thousands)
Property management fees	$	19,930	$	19,589	$	19,427
Asset management fees		5,030		6,191		8,468
Development fees		10,253		8,325		25,493
Leasing fees		5,592		6,017		5,833
Construction management fees		1,383		522		512
Other service revenue		5,316		5,706		6,146
Third-party real estate services revenue, excluding reimbursements		47,504		46,350		65,879
Reimbursement revenue (1)		44,547		42,672		48,124
Third-party real estate services revenue, including reimbursements		92,051		89,022		114,003
Third-party real estate services expenses		88,948		94,529		107,159
Third-party real estate services revenue less expenses	$	3,103	$	(5,507)	$	6,844

(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 $8.1 million and $13.7 million as of December 31, 2023 and 2022, which are classified in "Intangible 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,
	2023		2022		2021
	(In thousands)
Net income (loss) attributable to common shareholders	$	(79,978)	$	85,371	$	(79,257)
Add:
Depreciation and amortization expense		210,195		213,771		236,303
General and administrative expense:
Corporate and other		54,838		58,280		53,819
Third-party real estate services		88,948		94,529		107,159
Share-based compensation related to Formation Transaction and special equity awards		549		5,391		16,325
Transaction and other costs		8,737		5,511		10,429
Interest expense		108,660		75,930		67,961
Loss on the extinguishment of debt		450		3,073		—
Impairment loss		90,226		—		25,144
Income tax expense (benefit)		(296)		1,264		3,541
Net income (loss) attributable to redeemable noncontrolling interests		(10,596)		13,244		(8,728)
Net income (loss) attributable to noncontrolling interests		(1,135)		371		(1,740)
Less:
Third-party real estate services, including reimbursements revenue		92,051		89,022		114,003
Other revenue		10,902		7,421		7,671
Loss from unconsolidated real estate ventures, net		(26,999)		(17,429)		(2,070)
Interest and other income, net		15,781		18,617		8,835
Gain on the sale of real estate, net		79,335		161,894		11,290
Consolidated NOI	$	299,528	$	297,210	$	291,227

The following is a summary of NOI and certain balance sheet data by segment. Items classified in the Other column include development assets, corporate entities, land assets for which we are the ground lessor and the elimination of inter-segment activity.

	Year Ended December 31, 2023
	Multifamily		Commercial		Other		Total
	(In thousands)
Property rental revenue	$	206,705	$	262,826	$	13,628	$	483,159
Parking revenue		1,047		16,844		195		18,086
Total property revenue		207,752		279,670		13,823		501,245
Property expense:
Property operating		72,264		75,254		(3,469)		144,049
Real estate taxes		21,961		33,546		2,161		57,668
Total property expense		94,225		108,800		(1,308)		201,717
Consolidated NOI	$	113,527	$	170,870	$	15,131	$	299,528
	Year Ended December 31, 2022
	Multifamily		Commercial		Other		Total
	(In thousands)
Property rental revenue	$	180,068	$	301,955	$	9,715	$	491,738
Parking revenue		857		16,530		256		17,643
Total property revenue		180,925		318,485		9,971		509,381
Property expense:
Property operating		62,017		86,223		1,764		150,004
Real estate taxes		20,580		37,950		3,637		62,167
Total property expense		82,597		124,173		5,401		212,171
Consolidated NOI	$	98,328	$	194,312	$	4,570	$	297,210

	Year Ended December 31, 2021
	Multifamily		Commercial		Other		Total
	(In thousands)
Property rental revenue	$	139,918	$	352,180	$	7,488	$	499,586
Parking revenue		415		12,441		246		13,102
Total property revenue		140,333		364,621		7,734		512,688
Property expense:
Property operating		52,527		102,967		(4,856)		150,638
Real estate taxes		20,207		45,701		4,915		70,823
Total property expense		72,734		148,668		59		221,461
Consolidated NOI	$	67,599	$	215,953	$	7,675	$	291,227

	Multifamily		Commercial		Other		Total
	(In thousands)
December 31, 2023
Real estate, at cost	$	3,154,116	$	2,357,713	$	363,333	$	5,875,162
Investments in unconsolidated real estate ventures		—		176,786		87,495		264,281
Total assets		2,559,395		2,683,947		275,173		5,518,515
December 31, 2022
Real estate, at cost	$	2,986,907	$	2,754,832	$	416,343	$	6,158,082
Investments in unconsolidated real estate ventures		304		218,723		80,854		299,881
Total assets		2,483,902		2,829,576		589,960		5,903,438