SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018


Gain/(loss) on the sale of real estate owned, net of tax – as previously reported	$	210,851
Tax impact of sales of real estate owned		15,348
Gain/(loss) on the sale of real estate owned – as reported herein	$	226,199

Tax (provision)/benefit, net – as previously reported	$	3,774
Tax impact of sales of real estate owned		(15,348)
Tax (provision)/benefit, net – as reported herein	$	(11,574)

Schedule of disaggregation of revenue

Rental income, as disclosed on the Consolidated Statements of Operations, is disaggregated by principal revenue stream and by reportable segment in the following tables (dollars in thousands). Joint venture management and other fees are not included in the tables as they are not allocable to a specific reportable segment or segments.


	December 31, (a)
	2018		2017		2016
Lease Revenue (b)
Same-Store Communities
West Region	$	371,366	$	355,904	$	328,693
Mid-Atlantic Region		204,733		199,207		194,367
Northeast Region		148,057		146,105		142,249
Southeast Region		109,190		104,106		99,451
Southwest Region		39,567		38,978		37,529
Non-Mature Communities/Other		82,986		65,474		75,478
Total segment and consolidated lease revenue	$	955,899	$	909,774	$	877,767

Reimbursements Revenue
Same-Store Communities
West Region	$	17,159	$	16,377	$	14,797
Mid-Atlantic Region		9,084		8,715		8,123
Northeast Region		2,721		2,775		2,434
Southeast Region		6,821		6,509		6,413
Southwest Region		2,197		2,098		1,930
Non-Mature Communities/Other		8,768		7,781		7,859
Total segment and consolidated reimbursements revenue	$	46,750	$	44,255	$	41,556

Other Revenue
Same-Store Communities
West Region	$	10,789	$	10,728	$	9,831
Mid-Atlantic Region		6,633		6,235		5,733
Northeast Region		3,241		2,856		2,890
Southeast Region		6,223		5,852		5,454
Southwest Region		1,945		1,916		1,814
Non-Mature Communities/Other		3,625		2,693		3,416
Total segment and consolidated other revenue	$	32,456	$	30,280	$	29,138

Total Revenue
Same-Store Communities
West Region	$	399,314	$	383,009	$	353,321
Mid-Atlantic Region		220,450		214,157		208,223
Northeast Region		154,019		151,736		147,573
Southeast Region		122,234		116,467		111,318
Southwest Region		43,709		42,992		41,273
Non-Mature Communities/Other		95,379		75,948		86,753
Total segment and consolidated total revenue	$	1,035,105	$	984,309	$	948,461

(a)

Same-Store Community population consisted of 37,673 apartment homes. Same-Store Community is defined in Note 15, Reportable Segments.

Lease Revenue is subject to recognition under ASC 840, Leases.

Summary of notes receivable, net

The following table summarizes our Notes receivable, net as of December 31, 2018 and 2017 (dollars in thousands):


	Interest rate at		Balance Outstanding
	December 31,		December 31,		December 31,
	2018		2018		2017
Note due March 2019 (a)	12.00	%	$	20,000	$	—
Note due February 2020 (b)	10.00	%		14,659		13,669
Note due October 2020 (c)	8.00	%		2,000		2,000
Note due August 2022 (d)	10.00	%		5,600		3,800
Total notes receivable, net			$	42,259	$	19,469

(a)

In March 2018, the Company entered into a secured note receivable with an unaffiliated third party with an aggregate commitment of $20.0 million, of which $20.0 million has been funded. Interest payments are due when the loan matures. The note matures in March 2019 and is secured by a parcel of land.

(b)

The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $16.4 million, of which $14.7 million has been funded, including $1.0 million during the year ended December 31, 2018. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $5.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the eighth anniversary of the date of the note (February 2020).

(c)

The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $2.0 million, of which $2.0 million has been funded. Interest payments are due when the loan matures. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $10.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) the fifth anniversary of the date of the note (October 2020).

(d)

The Company has a secured note receivable with an unaffiliated third party with an aggregate commitment of $10.0 million, of which $5.6 million has been funded, including $1.8 million during the year ended December 31, 2018. Interest payments are due monthly. The note matures at the earliest of the following: (a) the closing of any private or public capital raising in the amount of $25.0 million or greater; (b) an acquisition; (c) acceleration in the event of default; or (d) August 2022.

Adjustment | ASU 2016-18

New accounting pronouncements

Schedule of reclassification on the Consolidated Statements of Cash Flows

As a result of the adoption of ASU 2016-18, for the years ended December 31, 2017 and 2016, the following line items in the following amounts were reclassified on the Consolidated Statements of Cash Flows (in thousands):


	Year ended December 31,
	2017		2016
(Increase)/decrease in operating assets	$	(237)	$	(361)
Net cash provided by /(used in) operating activities	$	(237)	$	(361)

Proceeds from sales of real estate investments, net	$	-	$	(555)
Capital expenditures and other major improvements — real estate assets, net of escrow reimbursement		35		112
Net cash provided by /(used in) investing activities	$	35	$	(443)

Net increase/(decrease) in cash, cash equivalents, and restricted cash	$	(202)	$	(804)