Segment Information

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Information

Segment Information

We operate in the following reportable segments, New York and Other, which is based on how we manage our business.

Net Operating Income (“NOI”) represents total revenues less operating expenses. We consider NOI to be 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. As properties are bought and sold based on NOI, we utilize this measure to make investment decisions as well as to compare the performance of our assets to that of our peers. NOI should not be considered a substitute for net income. NOI may not be comparable to similarly titled measures employed by other companies.

Below is a summary of NOI at share and NOI at share - cash basis by segment for the three and nine months ended September 30, 2019 and 2018.

(Amounts in thousands)	For the Three Months Ended September 30, 2019
	Total			New York			Other
Total revenues	$	465,961		$	380,568		$	85,393
Operating expenses	226,359			188,159			38,200
NOI - consolidated	239,602			192,409			47,193
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries	(18,096		)	(9,574		)	(8,522		)
Add: NOI from partially owned entities	86,024			82,649			3,375
NOI at share	307,530			265,484			42,046
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other	(4,037		)	(5,560		)	1,523
NOI at share - cash basis	$	303,493		$	259,924		$	43,569

(Amounts in thousands)	For the Three Months Ended September 30, 2018
	Total			New York			Other
Total revenues	$	542,048		$	462,446		$	79,602
Operating expenses	235,575			200,949			34,626
NOI - consolidated	306,473			261,497			44,976
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries	(16,943		)	(11,348		)	(5,595		)
Add: NOI from partially owned entities	60,094			47,179			12,915
NOI at share	349,624			297,328			52,296
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net, and other	(8,743		)	(9,125		)	382
NOI at share - cash basis	$	340,881		$	288,203		$	52,678

(Amounts in thousands)	For the Nine Months Ended September 30, 2019
	Total			New York			Other
Total revenues	$	1,463,732		$	1,200,234		$	263,498
Operating expenses	694,006			574,073			119,933
NOI - consolidated	769,726			626,161			143,565
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries	(51,915		)	(31,011		)	(20,904		)
Add: NOI from partially owned entities	236,400			211,394			25,006
NOI at share	954,211			806,544			147,667
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other	530			(3,741		)	4,271
NOI at share - cash basis	$	954,741		$	802,803		$	151,938

(Amounts in thousands)	For the Nine Months Ended September 30, 2018
	Total			New York			Other
Total revenues	$	1,620,303		$	1,369,482		$	250,821
Operating expenses	709,158			599,768			109,390
NOI - consolidated	911,145			769,714			141,431
Deduct: NOI attributable to noncontrolling interests in consolidated subsidiaries	(51,415		)	(34,653		)	(16,762		)
Add: NOI from partially owned entities	193,359			146,730			46,629
NOI at share	1,053,089			881,791			171,298
Non-cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other	(39,172		)	(39,161		)	(11		)
NOI at share - cash basis	$	1,013,917		$	842,630		$	171,287

23. Segment Information - continued

Below is a reconciliation of net income, the most directly comparable GAAP financial measure, to NOI at share and NOI at share - cash basis for the three and nine months ended September 30, 2019 and 2018.

(Amounts in thousands)	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2019			2018			2019			2018
Net income	$	363,849		$	219,162		$	3,173,586		$	324,782
Depreciation and amortization expense	96,437			113,169			326,181			333,701
General and administrative expense	33,237			31,977			130,129			108,937
Transaction related costs, impairment losses and other	1,576			2,510			103,315			16,683
Income from partially owned entities	(25,946		)	(7,206		)	(56,139		)	(6,059		)
(Income) loss from real estate fund investments	(2,190		)	190			13,780			37,973
Interest and other investment income, net	(3,045		)	(2,893		)	(15,930		)	(9,401		)
Interest and debt expense	61,448			88,951			226,940			264,774
Net gain on transfer to Fifth Avenue and Times Square JV	—			—			(2,571,099		)	—
Net gains on disposition of wholly owned and partially owned assets	(309,657		)	(141,269		)	(641,664		)	(164,828		)
Income tax expense	23,885			1,943			80,542			4,964
Loss (income) from discontinued operations	8			(61		)	85			(381		)
NOI from partially owned entities	86,024			60,094			236,400			193,359
NOI attributable to noncontrolling interests in consolidated subsidiaries	(18,096		)	(16,943		)	(51,915		)	(51,415		)
NOI at share	307,530			349,624			954,211			1,053,089
Non cash adjustments for straight-line rents, amortization of acquired below-market leases, net and other	(4,037		)	(8,743		)	530			(39,172		)
NOI at share - cash basis	$	303,493		$	340,881		$	954,741		$	1,013,917