Organization, Basis of Presentation, and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of reconciliation of income from book basis to tax basis

The following reconciles net income attributable to common stockholders to taxable net income for the years ended December 31, 2019, 2018 and 2017 (unaudited, dollars in thousands):



	2019 Estimate			2018 Actual			2017 Actual
Net income attributable to common stockholders	$	785,974		$	974,525		$	876,921
GAAP gain on sale of communities in excess of tax gain	(108,962		)	(192,722		)	(86,661		)
Depreciation/amortization timing differences on real estate	(5,619		)	(15,590		)	(3,642		)
Amortization of debt/mark to market interest	(594		)	(2,276		)	(18,096		)
Tax compensation expense less than GAAP	4,738			13,126			20,243
Other adjustments	22,637			19,617			(392		)
Taxable net income	$	698,174		$	796,680		$	788,373

Schedule of new accounting pronouncements and changes in accounting principles

The following table provides details of the Company’s revenue streams disaggregated by the Company’s reportable operating segments, further discussed in Note 8, “Segment Reporting,” for the years ended December 31, 2019, 2018 and 2017. The segments are classified based on the individual community's status at January 1, 2019 for the years ended December 31, 2019 and 2018, and at January 1, 2018 for the year ended December 31, 2017. Segment information for total revenue has been adjusted to exclude the real estate assets that were sold from January 1, 2017 through December 31, 2019, or otherwise qualify as held for sale as of December 31, 2019, as described in Note 6, "Real Estate Disposition Activities." Additionally, as discussed below, the Company changed its presentation of charges for uncollectible lease revenue for the year ended December 31, 2019, including it as an adjustment to revenue and not as a component of operating expenses, as it is presented for prior periods on the accompanying Consolidated Statement of Comprehensive Income. In order to provide comparability between periods presented in the Company's segment reporting, the Company has included charges for uncollectible lease revenue for its segment results as a component of revenue for all periods presented. See Note 8, "Segment Reporting," for further discussion (dollars in thousands):



	Established Communities		Other Stabilized Communities		Development/ Redevelopment Communities		Non- allocated (1)		Total
For the year ended December 31, 2019
Management, development and other fees	$	—	$	—	$	—	$	4,960	$	4,960
Rental and non-rental related income (2)	6,113		1,941		803		—		8,857
Total non-lease revenue (3)	6,113		1,941		803		4,960		13,817

Lease income (4)	1,829,748		295,511		162,668		—		2,287,927
Business interruption insurance proceeds	478		963		—		—		1,441

Total revenue	$	1,836,339	$	298,415	$	163,471	$	4,960	$	2,303,185

For the year ended December 31, 2018
Management, development and other fees	$	—	$	—	$	—	$	3,572	$	3,572
Rental and non-rental related income (2)	4,245		1,732		269		—		6,246
Total non-lease revenue (3)	4,245		1,732		269		3,572		9,818

Lease income (4)	1,778,841		236,852		120,553		—		2,136,246
Business interruption insurance proceeds	26		—		—		—		26

Total revenue	$	1,783,112	$	238,584	$	120,822	$	3,572	$	2,146,090

For the year ended December 31, 2017
Management, development and other fees	$	—	$	—	$	—	$	4,147	$	4,147
Rental and non-rental related income (2)	3,845		1,294		740		—		5,879
Total non-lease revenue (3)	3,845		1,294		740		4,147		10,026

Lease income (4)	1,570,262		173,639		231,031		—		1,974,932
Business interruption insurance proceeds (5)	3		—		3,495		—		3,498

Total revenue	$	1,574,110	$	174,933	$	235,266	$	4,147	$	1,988,456

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(1)	Revenue represents third-party management, asset management and developer fees and miscellaneous income which are not allocated to a reportable segment.


(2)	Amounts include revenue streams related to leasing activities that are not considered components of a lease, including but not limited to, apartment hold fees and application fees, as well as revenue streams not related to leasing activities, including but not limited to, vendor revenue sharing, building advertising, vending and dry cleaning revenue.


(3)	Represents all revenue accounted for under ASC 2014-09.


(4)	Amounts include all revenue streams derived from residential and retail rental income and other lease income, which are accounted for under ASU 2016-02.


(5)	Amount for 2017 is primarily business interruption insurance proceeds related to the Maplewood casualty loss as discussed above in "Casualty Gains and Losses."

Schedule of tax components of the entity's common dividends declared

The following summarizes the tax components of the Company's common dividends declared for the years ended December 31, 2019, 2018 and 2017 (unaudited):



	2019		2018		2017
Ordinary income	96	%	76	%	75	%
20% capital gain	3	%	11	%	18	%
Unrecaptured §1250 gain	1	%	13	%	7	%

Schedule of earnings per common share

The Company's earnings per common share are determined as follows (dollars in thousands, except per share data):



	For the year ended
	12/31/19			12/31/18			12/31/17
Basic and diluted shares outstanding
Weighted average common shares—basic	139,054,191			137,844,755			137,523,771
Weighted average DownREIT units outstanding	7,500			7,500			7,500
Effect of dilutive securities	509,859			436,986			535,415
Weighted average common shares—diluted	139,571,550			138,289,241			138,066,686

Calculation of Earnings per Share—basic
Net income attributable to common stockholders	$	785,974		$	974,525		$	876,921
Net income allocated to unvested restricted shares	(2,063		)	(2,839		)	(2,463		)
Net income attributable to common stockholders, adjusted	$	783,911		$	971,686		$	874,458

Weighted average common shares—basic	139,054,191			137,844,755			137,523,771

Earnings per common share—basic	$	5.64		$	7.05		$	6.36

Calculation of Earnings per Share—diluted
Net income attributable to common stockholders	$	785,974		$	974,525		$	876,921
Add: noncontrolling interests of DownREIT unitholders in consolidated partnerships, including discontinued operations	46			44			42
Adjusted net income attributable to common stockholders	$	786,020		$	974,569		$	876,963

Weighted average common shares—diluted	139,571,550			138,289,241			138,066,686

Earnings per common share—diluted	$	5.63		$	7.05		$	6.35