Reportable Segments

3 Months Ended

Mar. 31, 2015

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Segment Reporting Disclosure [Text Block]

13. Reportable Segments

Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses and about which discrete financial information is available that is evaluated regularly by the chief operating decision maker. The chief operating decision maker decides how resources are allocated and assesses performance on a recurring basis at least quarterly.

The Company’s primary business is the acquisition, development and management of multifamily residential properties, which includes the generation of rental and other related income through the leasing of apartment units to residents. The chief operating decision maker evaluates the Company's operating performance geographically by market and both on a same store and non-same store basis. The Company’s operating segments located in its core markets represent its reportable segments (with the aggregation of Los Angeles, Orange County and San Diego into the Southern California reportable segment). The Company's operating segments located in its non-core markets that are not material have also been aggregated in the tables presented below.

The Company’s fee and asset management and development (including its partially owned properties) activities are other business activities that do not constitute an operating segment and as such, have been aggregated in the "Other" category in the tables presented below.

All revenues are from external customers and there is no customer who contributed 10% or more of the Company’s total revenues during the quarters ended March 31, 2015 and 2014, respectively.

The primary financial measure for the Company’s rental real estate segment is net operating income (“NOI”), which represents rental income less: 1) property and maintenance expense; 2) real estate taxes and insurance expense; and 3) property management expense (all as reflected in the accompanying consolidated statements of operations and comprehensive income). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company’s apartment communities. Current year NOI is compared to prior year NOI and current year budgeted NOI as a measure of financial performance. The following tables present NOI for each segment from our rental real estate specific to continuing operations for the quarters ended March 31, 2015 and 2014, respectively, as well as total assets and capital expenditures at March 31, 2015 (amounts in thousands):

	Quarter Ended March 31, 2015							Quarter Ended March 31, 2014
	Rental Income		Operating Expenses		NOI			Rental Income		Operating Expenses		NOI
Same store (1)
Boston	$	64,033	$	22,541	$	41,492		$	61,907	$	22,129	$	39,778
Denver	28,997		7,460		21,537			26,612		7,461		19,151
New York	116,070		46,113		69,957			111,186		45,834		65,352
San Francisco	89,850		27,103		62,747			81,261		26,609		54,652
Seattle	40,390		12,667		27,723			37,621		12,734		24,887
South Florida	49,302		17,968		31,334			46,896		17,525		29,371
Southern California	105,193		34,126		71,067			99,776		33,545		66,231
Washington D.C.	112,627		38,539		74,088			111,804		37,809		73,995
Non-core	25,572		10,027		15,545			24,731		9,814		14,917
Total same store	632,034		216,544		415,490			601,794		213,460		388,334
Non-same store/other (2) (3)
Boston	922		229		693			1,028		210		818
Seattle	4,579		1,298		3,281			107		146		(39		)
South Florida	1,932		675		1,257			803		454		349
Southern California	17,777		6,528		11,249			8,905		3,690		5,215
Washington D.C.	5,408		1,653		3,755			3,507		1,441		2,066
Other (3)	1,954		5,509		(3,555		)	14,581		10,377		4,204
Total non-same store/other	32,572		15,892		16,680			28,931		16,318		12,613
Total	$	664,606	$	232,436	$	432,170		$	630,725	$	229,778	$	400,947

(1) Same store primarily includes all properties acquired or completed and stabilized prior to January 1, 2014, less properties subsequently sold, which represented 97,586 apartment units.

(2) Non-same store primarily includes properties acquired after January 1, 2014, plus any properties in lease-up and not stabilized as of January 1, 2014.

(3) Other includes development, other corporate operations and operations prior to sale for properties sold in 2014 and 2015 that do not meet the new discontinued operations criteria.

	Quarter Ended March 31, 2015
	Total Assets		Capital Expenditures
Same store (1)
Boston	$	1,908,859	$	3,505
Denver	514,958		1,120
New York	4,637,217		3,797
San Francisco	2,700,366		5,638
Seattle	1,088,728		3,524
South Florida	1,126,085		2,942
Southern California	2,787,871		6,020
Washington D.C.	4,250,738		7,113
Non-core	405,017		1,649
Total same store	19,419,839		35,308
Non-same store/other (2) (3)
Boston	47,996		34
Seattle	231,258		466
South Florida	66,906		14
Southern California	845,902		1,163
Washington D.C.	242,360		1,143
Other (3)	2,174,787		42
Total non-same store/other	3,609,209		2,862
Total	$	23,029,048	$	38,170

(1) Same store primarily includes all properties acquired or completed and stabilized prior to January 1, 2014, less properties subsequently sold, which represented 97,586 apartment units.

(2) Non-same store primarily includes properties acquired after January 1, 2014, plus any properties in lease-up and not stabilized as of January 1, 2014.

(3) Other includes development, other corporate operations and capital expenditures for properties sold.

Note: Markets/Metro Areas aggregated in the above Southern California and Non-core segments are as follows:

(a) Southern California – Los Angeles, Orange County and San Diego.

(b) Non-core – Inland Empire, CA, New England (excluding Boston), Orlando and Phoenix.

The following table presents a reconciliation of NOI from our rental real estate specific to continuing operations for the quarters ended March 31, 2015 and 2014, respectively (amounts in thousands):

	Quarter Ended March 31,
	2015			2014
Rental income	$	664,606		$	630,725
Property and maintenance expense	(124,560		)	(125,566		)
Real estate taxes and insurance expense	(86,432		)	(82,094		)
Property management expense	(21,444		)	(22,118		)
Total operating expenses	(232,436		)	(229,778		)
Net operating income	$	432,170		$	400,947