Segment Information

3 Months Ended

Mar. 31, 2024

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 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 statements of operations.

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

	Three Months Ended March 31,
	2024		2023
	(In thousands)
Property management fees	$	4,271	$	4,952
Asset management fees		924		1,103
Development fees		238		1,986
Leasing fees		1,135		1,356
Construction management fees		383		340
Other service revenue		1,054		1,224
Third-party real estate services revenue, excluding reimbursements		8,005		10,961
Reimbursement revenue (1)		9,863		11,823
Third-party real estate services revenue, including reimbursements		17,868		22,784
Third-party real estate services expenses		22,327		23,823
Third-party real estate services revenue less expenses	$	(4,459)	$	(1,039)

(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 $6.7 million and $8.1 million as of March 31, 2024 and December 31, 2023, which were included in "Intangible 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:

c
	Three Months Ended March 31,
	2024		2023
	(In thousands)
Net income (loss) attributable to common shareholders	$	(32,276)	$	21,171
Add:
Depreciation and amortization expense		56,855		53,431
General and administrative expense:
Corporate and other		14,973		16,123
Third-party real estate services		22,327		23,823
Share-based compensation related to Formation Transaction and special equity awards		—		351
Transaction and other costs		1,514		2,472
Interest expense		30,160		26,842
Impairment loss		17,211		—
Income tax benefit		(1,468)		(16)
Net income (loss) attributable to redeemable noncontrolling interests		(4,534)		3,363
Net loss attributable to noncontrolling interests		(5,380)		(224)
Less:
Third-party real estate services, including reimbursements revenue		17,868		22,784
Other revenue		11,263		1,726
Income from unconsolidated real estate ventures, net		975		433
Interest and other income, net		2,100		4,077
Gain on the sale of real estate, net		197		40,700
Consolidated NOI	$	66,979	$	77,616

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.

	Three Months Ended March 31, 2024
	Multifamily		Commercial		Other		Total
	(In thousands)
Property rental revenue (1)	$	51,446	$	57,579	$	3,279	$	112,304
Parking revenue		181		3,600		(32)		3,749
Total property revenue		51,627		61,179		3,247		116,053
Property expense:
Property operating		17,406		17,077		796		35,279
Real estate taxes		5,957		7,401		437		13,795
Total property expense		23,363		24,478		1,233		49,074
Consolidated NOI	$	28,264	$	36,701	$	2,014	$	66,979
	Three Months Ended March 31, 2023
	Multifamily		Commercial		Other		Total
	(In thousands)
Property rental revenue	$	49,910	$	71,917	$	2,206	$	124,033
Parking revenue		224		4,138		57		4,419
Total property revenue		50,134		76,055		2,263		128,452
Property expense:
Property operating		17,455		19,371		(1,214)		35,612
Real estate taxes		5,608		9,001		615		15,224
Total property expense		23,063		28,372		(599)		50,836
Consolidated NOI	$	27,071	$	47,683	$	2,862	$	77,616

	Multifamily		Commercial		Other		Total
	(In thousands)
March 31, 2024
Real estate, at cost	$	3,178,316	$	2,325,479	$	395,303	$	5,899,098
Investments in unconsolidated real estate ventures		—		12,436		92,346		104,782
Total assets		2,572,311		2,529,171		303,868		5,405,350
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

(1) Property rental revenue excludes $10.3 million of lease termination revenue.