SEGMENT REPORTING

12 Months Ended

Dec. 31, 2012

SEGMENT REPORTING

SEGMENT REPORTING

15           SEGMENT REPORTING

The Company is engaged in the ownership and management of market rate apartment communities.  Each apartment community is considered a separate operating segment.  Each segment on a standalone basis is less than 10% of the revenues, net operating income and assets of the combined reported operating segment and meets a majority of the aggregation criteria under authoritative guidance.  There is no resident who has one or more leases which, in the aggregate, account for more than 10% of the aggregate gross revenues for the years ended December 31, 2012, 2011 or 2010.  The operating segments are aggregated as Core and Non-core properties.

Non-segment revenue to reconcile to total revenue consists of other income.  Non-segment assets to reconcile to total assets include cash and cash equivalents, cash in escrows, accounts receivable, prepaid expenses, deferred charges and other assets.

Core properties consist of apartment communities which have been owned more than one full calendar year.  Therefore, the Core properties represent communities owned as of January 1, 2011.  Non-core properties consist of apartment communities acquired, developed or redeveloped during 2011 and 2012, such that comparable operating results are not available.

The Company assesses and measures segment operating results based on a performance measure referred to as net operating income.  Net operating income is defined as total revenues less operating and maintenance expenses.  The accounting policies of the segments are the same as those described in Notes 1, 2 and 3.

The revenues and net operating income for each of the reportable segments are summarized as follows for the years ended December 31, 2012, 2011 and 2010:

	2012			2011			2010
Revenues
Apartments owned
Core properties	$	554,429		$	530,322		$	498,683
Non-core properties	89,609			31,079			—
Reconciling items	310			155			106
Total revenues	$	644,348		$	561,556		$	498,789
Net operating income
Apartments owned
Core properties	$	351,610		$	325,194		$	295,262
Non-core properties	57,388			19,138			—
Reconciling items	310			155			106
Net operating income, including reconciling items	409,308			344,487			295,368
General and administrative expenses	(34,174		)	(29,145		)	(25,138		)
Interest expense	(125,809		)	(127,618		)	(120,652		)
Depreciation and amortization	(165,642		)	(140,713		)	(122,772		)
Other expenses	(2,741		)	(3,225		)	(2,871		)
Income from continuing operations	$	80,942		$	43,786		$	23,935

The assets for each of the reportable segments are summarized as follows as of December 31, 2012 and 2011:

Assets	2012		2011
Apartments owned
Core properties	$	3,207,303	$	3,214,456
Non-core properties	1,139,083		844,109
Reconciling items	105,106		94,641
Total assets	$	4,451,492	$	4,153,206