Segment Information

As a result of the spin-off of our Washington, DC segment (see Note 7 - Dispositions), effective July 1, 2017, the Washington, DC segment has been reclassified to the Other segment. We have also reclassified the prior period segment financial results to conform to the current period presentation.

Below is a summary of net (loss) income and a reconciliation of net (loss) income to EBITDA⁽¹⁾and NOI⁽¹⁾ by segment for the three months ended September 30, 2017.



(Amounts in thousands)	For the Three Months Ended September 30, 2017
	Total			New York				Other
Total revenues	$	528,755		$	453,609			$	75,146
Total expenses	366,520			284,976				81,544
Operating income (loss)	162,235			168,633				(6,398		)
(Loss) income from partially owned entities	(41,801		)	1,411				(43,212		)
Loss from real estate fund investments	(6,308		)	—				(6,308		)
Interest and other investment income, net	9,306			1,413				7,893
Interest and debt expense	(85,068		)	(61,529		)		(23,539		)
Income (loss) before income taxes	38,364			109,928				(71,564		)
Income tax expense	(1,188		)	(1,087		)		(101		)
Income (loss) from continuing operations	37,176			108,841				(71,665		)
Loss from discontinued operations	(47,930		)	—				(47,930		)
Net (loss) income	(10,754		)	108,841				(119,595		)
Less net income attributable to noncontrolling interests in consolidated subsidiaries	(4,022		)	(2,552		)		(1,470		)
Net (loss) income attributable to the Operating Partnership	(14,776		)	106,289				(121,065		)
Interest and debt expense⁽²⁾	113,438			84,907				28,531
Depreciation and amortization⁽²⁾	136,621			104,799				31,822
Income tax expense ⁽²⁾	1,462			1,182				280
EBITDA⁽¹⁾	236,745			297,177			⁽³⁾	(60,432		)	⁽⁴⁾
Acquisition and transaction related costs, including $53,581 for the spin-off of JBGS	53,642			—				53,642
Impairment loss on investment in PREIT	44,465			—				44,465
General and administrative expenses less $1,975 mark-to-market of our deferred compensation plan	35,495			9,479				26,016
Non-cash adjustments for straight-line rental income and expense and amortization of acquired below and above market leases, net⁽²⁾	(23,304		)	(21,435		)		(1,869		)
Our share of net realized/unrealized losses from our real estate fund investments	10,394			—				10,394
Net gain resulting from UE operating partnership unit issuances	(5,200		)	—				(5,200		)
Real estate impairment losses⁽²⁾	4,354			—				4,354
Net gains on sale of real estate and other⁽²⁾	(1,547		)	—				(1,547		)
Our share of Alexander's EBITDA (excluding management, leasing and development fees)	(12,207		)	(12,207		)		—
Dividends received from Alexander's	7,030			7,030				—
Our share of PREIT EBITDA	(3,731		)	—				(3,731		)
Distributions received from PREIT	1,361			—				1,361
Our share of UE EBITDA (excluding management fees)	(2,513		)	—				(2,513		)
Distributions received from UE	1,257			—				1,257
NOI⁽¹⁾	$	346,241		$	280,044		⁽³⁾	$	66,197		⁽⁴⁾

____________________

See notes on pages 46 through 48.


20.	Segment Information - continued

Below is a summary of net income and a reconciliation of net income to EBITDA⁽¹⁾and NOI⁽¹⁾ by segment for the three months ended September 30, 2016.



(Amounts in thousands)	For the Three Months Ended September 30, 2016
	Total			New York				Other
Total revenues	$	502,753		$	432,869			$	69,884
Total expenses	354,292			280,689				73,603
Operating income (loss)	148,461			152,180				(3,719		)
Income (loss) from partially owned entities	3,811			(579		)		4,390
Income from real estate fund investments	1,077			—				1,077
Interest and other investment income, net	6,459			1,355				5,104
Interest and debt expense	(79,721		)	(51,212		)		(28,509		)
Income (loss) before income taxes	80,087			101,744				(21,657		)
Income tax expense	(4,563		)	(2,356		)		(2,207		)
Income (loss) from continuing operations	75,524			99,388				(23,864		)
Income from discontinued operations	25,080			—				25,080
Net income	100,604			99,388				1,216
Less net income attributable to noncontrolling interests in consolidated subsidiaries	(3,658		)	(2,985		)		(673		)
Net income attributable to the Operating Partnership	96,946			96,403				543
Interest and debt expense⁽²⁾	122,979			66,314				56,665
Depreciation and amortization⁽²⁾	172,980			111,731				61,249
Income tax expense⁽²⁾	5,102			2,445				2,657
EBITDA⁽¹⁾	398,007			276,893			⁽³⁾	121,114			⁽⁴⁾
Non-cash adjustments for straight-line rental income and expense and amortization of acquired below and above market leases, net⁽²⁾	(46,500		)	(35,199		)		(11,301		)
General and administrative expenses less $204 mark-to-market of our deferred compensation plan	40,238			9,783				30,455
Net gains on sale of real estate and other⁽²⁾	(5,386		)	—				(5,386		)
Acquisition and transaction related costs, including $2,739 for the spin-off of JBGS	3,808			—				3,808
Real estate impairment losses⁽²⁾	1,599			—				1,599
Our share of net realized/unrealized losses from our real estate fund investments	99			—				99
Our share of Alexander's EBITDA (excluding management, leasing and development fees)	(11,506		)	(11,506		)		—
Dividends received from Alexander's	6,617			6,617				—
Our share of PREIT EBITDA	(3,070		)	—				(3,070		)
Distributions received from PREIT	1,342			—				1,342
Our share of UE EBITDA (excluding management fees)	(2,514		)	—				(2,514		)
Distributions received from UE	1,143			—				1,143
NOI⁽¹⁾	$	383,877		$	246,588		⁽³⁾	$	137,289		⁽⁴⁾

____________________

See notes on pages 46 through 48.


20.	Segment Information - continued

Below is a summary of net income (loss) and a reconciliation of net income (loss) to EBITDA⁽¹⁾and NOI⁽¹⁾ by segment for the nine months ended September 30, 2017.



(Amounts in thousands)	For the Nine Months Ended September 30, 2017
	Total			New York				Other
Total revenues	$	1,547,900		$	1,316,710			$	231,190
Total expenses	1,100,042			845,632				254,410
Operating income (loss)	447,858			471,078				(23,220		)
Income (loss) from partially owned entities	5,578			(954		)		6,532
Loss from real estate fund investments	(1,649		)	—				(1,649		)
Interest and other investment income, net	27,800			4,384				23,416
Interest and debt expense	(252,581		)	(179,851		)		(72,730		)
Net gain on disposition of wholly owned and partially owned assets	501			—				501
Income (loss) before income taxes	227,507			294,657				(67,150		)
Income tax expense	(2,429		)	(324		)		(2,105		)
Income (loss) from continuing operations	225,078			294,333				(69,255		)
Loss from discontinued operations	(14,501		)	—				(14,501		)
Net income (loss)	210,577			294,333				(83,756		)
Less net income attributable to noncontrolling interests in consolidated subsidiaries	(18,436		)	(8,041		)		(10,395		)
Net income (loss) attributable to the Operating Partnership	192,141			286,292				(94,151		)
Interest and debt expense⁽²⁾	348,350			239,032				109,318
Depreciation and amortization⁽²⁾	476,406			328,058				148,348
Income tax expense⁽²⁾	4,180			540				3,640
EBITDA⁽¹⁾	1,021,077			853,922			⁽³⁾	167,155			⁽⁴⁾
General and administrative expenses less $5,233 mark-to-market of our deferred compensation plan	131,365			31,630				99,735
Non-cash adjustments for straight-line rental income and expense and amortization of acquired below and above market leases, net⁽²⁾	(73,125		)	(58,797		)		(14,328		)
Acquisition and transaction related costs, including $67,045 for the spin-off of JBGS	68,118			—				68,118
Impairment loss on investment in PREIT	44,465			—				44,465
Net gains on sale of real estate and other⁽²⁾	(21,507		)	—				(21,507		)
Net gains resulting from UE operating partnership unit issuances	(21,100		)	—				(21,100		)
Our share of net realized/unrealized losses from our real estate fund investments	18,802			—				18,802
Net gain on repayment of our Suffolk Downs JV debt investments	(11,373		)	—				(11,373		)
Real estate impairment losses⁽²⁾	7,572			—				7,572
Our share of Alexander's EBITDA (excluding management, leasing and development fees)	(35,511		)	(35,511		)		—
Dividends received from Alexander's	21,090			21,090				—
Our share of PREIT EBITDA	(15,439		)	—				(15,439		)
Distributions received from PREIT	3,929			—				3,929
Our share of UE EBITDA (excluding management fees)	(9,694		)	—				(9,694		)
Distributions received from UE	3,773			—				3,773
NOI⁽¹⁾	$	1,132,442		$	812,334		⁽³⁾	$	320,108		⁽⁴⁾

____________________

See notes on pages 46 through 48.


20.	Segment Information - continued

Below is a summary of net income (loss) and a reconciliation of net income (loss) to EBITDA⁽¹⁾and NOI⁽¹⁾ by segment for the nine months ended September 30, 2016.



(Amounts in thousands)	For the Nine Months Ended September 30, 2016
	Total			New York				Other
Total revenues	$	1,489,768		$	1,269,464			$	220,304
Total expenses	1,062,219			818,419				243,800
Operating income (loss)	427,549			451,045				(23,496		)
Income (loss) from partially owned entities	3,892			(5,143		)		9,035
Income from real estate fund investments	28,750			—				28,750
Interest and other investment income, net	20,121			3,684				16,437
Interest and debt expense	(250,034		)	(162,193		)		(87,841		)
Net gains on disposition of wholly owned and partially owned assets	160,225			159,511				714
Income (loss) before income taxes	390,503			446,904				(56,401		)
Income tax expense	(8,921		)	(4,131		)		(4,790		)
Income (loss) from continuing operations	381,582			442,773				(61,191		)
Loss from discontinued operations	(104,204		)	—				(104,204		)
Net income (loss)	277,378			442,773				(165,395		)
Less net income attributable to noncontrolling interests in consolidated subsidiaries	(26,361		)	(9,811		)		(16,550		)
Net income (loss) attributable to the Operating Partnership	251,017			432,962				(181,945		)
Interest and debt expense⁽²⁾	376,898			208,683				168,215
Depreciation and amortization⁽²⁾	521,143			331,448				189,695
Income tax expense⁽²⁾	13,067			4,424				8,643
EBITDA⁽¹⁾	1,162,125			977,517			⁽³⁾	184,608			⁽⁴⁾
Net gains on sale of real estate and other⁽²⁾	(168,140		)	(159,511		)		(8,629		)
Real estate impairment losses⁽²⁾	166,701			—				166,701
Non-cash adjustments for straight-line rental income and expense and amortization of acquired below and above market leases, net⁽²⁾	(152,023		)	(114,217		)		(37,806		)
General and administrative expenses less $2,625 mark-to-market of our deferred compensation plan	132,085			27,557				104,528
Acquisition and transaction related costs, including $4,597 for the spin-off of JBGS	11,319			—				11,319
Our share of net realized/unrealized gains from our real estate fund investments	(8,741		)	—				(8,741		)
Our share of Alexander's EBITDA (excluding management, leasing and development fees)	(34,880		)	(34,880		)		—
Dividends received from Alexander's	19,849			19,849				—
Our share of PREIT EBITDA	(8,537		)	—				(8,537		)
Distributions received from PREIT	3,906			—				3,906
Our share of UE EBITDA (excluding management fees)	(7,539		)	—				(7,539		)
Distributions received from UE	3,430			—				3,430
NOI⁽¹⁾	$	1,119,555		$	716,315		⁽³⁾	$	403,240		⁽⁴⁾

____________________

See notes on the following pages.


20.	Segment Information - continued

Notes to preceding tabular information:

(1)

EBITDA represents "Earnings Before Interest, Taxes, Depreciation and Amortization." NOI represents "Net Operating Income" on a cash basis. We calculate EBITDA and NOI on an Operating Partnership basis which is before allocation to the noncontrolling interest of the Operating Partnership. We consider EBITDA the primary non-GAAP financial measure for making decisions and assessing the unlevered performance of our segments as it relates to the total return on assets as opposed to the levered return on equity. We also consider NOI a key non-GAAP financial measure. NOI is before general and administrative expenses, straight-line rental income and expense, amortization of acquired below and above market leases, net, acquisition and transaction related costs, our share of net realized and unrealized gains or losses from our real estate fund investments, impairment losses and gains on disposal of assets. As properties are bought and sold based on a multiple of NOI, we utilize this measure to make investment decisions as well as to compare the performance of our assets to those of our peers. EBITDA and NOI should not be considered substitutes for net income. EBITDA and NOI may not be comparable to similarly titled measures employed by other companies.

Our 7.5% interest in Fashion Centre Mall/Washington Tower and our interest in Rosslyn Plaza (ranging from 43.7% to 50.4%) were not included in the spin-off of our Washington, DC segment and have been reclassified to Other. The prior year's presentation has been conformed to the current year. In addition, on January 1, 2017, we reclassified our investment in 85 Tenth Avenue from Other to the New York segment as a result of the December 1, 2016 repayment of our loans receivable and the receipt of a 49.9% ownership interest in the property.


(2)	Adjustments include our proportionate share of partially owned entities and give effect to noncontrolling interest's share of consolidated subsidiaries.


20.	Segment Information - continued

Notes to preceding tabular information - continued:


(3)	The elements of "New York" EBITDA are summarized below.



(Amounts in thousands)	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2017		2016			2017		2016
Office	$	183,162	$	164,150	^(a)	$	522,566	$	484,735	^(a)
Retail	90,316		91,061		^(a)	269,762		272,083		^(a)
Residential	5,981		6,214			18,450		18,901
Alexander's	12,207		11,506			35,511		34,880
Hotel Pennsylvania	5,511		3,962			7,633		4,287
Total New York EBITDA, as adjusted	297,177		276,893			853,922		814,886
Certain items that impact EBITDA:
Net gain on sale of 47% ownership interest in 7 West 34th Street	—		—			—		159,511
EBITDA from sold properties	—		—			—		3,120
Total of certain items that impact EBITDA	—		—			—		162,631
Total New York EBITDA	$	297,177	$	276,893		$	853,922	$	977,517

The elements of "New York" NOI are summarized below.



(Amounts in thousands)	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2017		2016			2017		2016
Office	$	179,505	$	157,643	^(a)	$	523,531	$	459,509	^(a)
Retail	81,839		72,178		^(a)	241,667		211,611		^(a)
Residential	5,418		5,525			16,300		16,724
Alexander's	7,030		6,617			21,090		19,849
Hotel Pennsylvania	6,252		4,625			9,746		6,390
Total New York NOI, as adjusted	280,044		246,588			812,334		714,083
NOI from sold properties	—		—			—		2,232
Total New York NOI	$	280,044	$	246,588		$	812,334	$	716,315

_____________________


(a)	Beginning in January 2017 for office buildings with retail at the base, we have adjusted the allocation of real estate taxes between the retail and office elements above. This has no effect on our consolidated financial statements but resulted in a reallocation of $4,213 and $12,058 of income from retail to office for the three and nine months ended September 30, 2016, respectively.


20.	Segment Information - continued

Notes to preceding tabular information - continued:


(4)	The elements of "Other" EBITDA are summarized below.



(Amounts in thousands)	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
theMART (including trade shows)	$	24,165		$	21,696		$	72,471		$	70,689
555 California Street	11,643			11,405			35,870			35,137
Other investments	11,379			20,388			36,318			57,092
Corporate general and administrative expenses^(a)	(22,730		)	(21,519		)	(78,952		)	(76,364		)
Investment income and other, net^(a)	5,910			6,871			24,079			19,317
Other EBITDA, as adjusted	30,367			38,841			89,786			105,871
Certain items that impact EBITDA:
JBGS which is treated as a discontinued operation:
Transaction costs	(53,581		)	(2,739		)	(67,045		)	(4,597		)
Operating results through July 17, 2017 spin-off	13,038			75,307			153,449			214,604
	(40,543		)	72,568			86,404			210,007
Impairment loss on investment in PREIT	(44,465		)	—			(44,465		)	—
(Loss) income from real estate fund investments, net	(7,794		)	807			(11,333		)	13,662
Net gain resulting from UE operating partnership unit issuances	5,200			—			21,100			—
Our share of net gain on sale of Suffolk Downs	—			—			15,314			—
Net gain on repayment of Suffolk Downs JV debt investments	—			—			11,373			—
Skyline properties impairment loss	—			—			—			(160,700		)
Other	(3,197		)	8,898			(1,024		)	15,768
Total of certain items that impact EBITDA	(90,799		)	82,273			77,369			78,737
Other EBITDA	$	(60,432	)	$	121,114		$	167,155		$	184,608

The elements of "Other" NOI are summarized below.



(Amounts in thousands)	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2017		2016		2017		2016
theMART (including trade shows)	$	25,422	$	21,758	$	74,859	$	70,914
555 California Street	11,013		9,899		33,647		24,010
Other investments	7,589		21,381		15,138		44,482
Investment income and other, net^(a)	5,910		6,871		24,079		19,317
Other NOI, as adjusted	49,934		59,909		147,723		158,723
Certain items that impact NOI:
JBGS operating results through July 17, 2017 spin-off	12,971		72,919		160,634		233,310
Our share of real estate fund investments	2,600		2,555		7,469		6,313
Other	692		1,906		4,282		4,894
Total of certain items that impact NOI	16,263		77,380		172,385		244,517
Other NOI	$	66,197	$	137,289	$	320,108	$	403,240

_____________________


(a)	The amounts in these captions (for this table only) exclude the results of the mark-to-market of our deferred compensation plan of $1,975 and $204 of income for the three months ended September 30, 2017 and 2016, respectively, and $5,233 and $2,625 of income for the nine months ended September 30, 2017 and 2016, respectively.