Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

We are engaged in acquiring, owning, managing and leasing commercial properties in Manhattan, Brooklyn, Westchester County, Connecticut and New Jersey and have two reportable segments, real estate and debt and preferred equity investments. We evaluate real estate performance and allocate resources based on earnings contribution to income from continuing operations.

The primary sources of revenue are generated from tenant rents and escalations and reimbursement revenue. Real estate property operating expenses consist primarily of security, maintenance, utility costs, real estate taxes and ground rent expense (at certain applicable properties). See Note 5, "Debt, Preferred Equity and Other Investments," for additional details on our debt and preferred equity investments.

Selected results of operations for the years ended December 31, 2015, 2014 and 2013 and selected asset information as of December 31, 2015 and 2014, regarding our operating segments are as follows (in thousands):

	Real Estate Segment		Debt and Preferred Equity Segment		Total Company
Total revenues:
Years ended:
December 31, 2015	$	742,585	$	182,648	$	925,233
December 31, 2014, as adjusted	670,621		176,901		847,522
December 31, 2013, as adjusted	$	627,210	$	194,612	$	821,822
Income from continuing operations before equity in net gain on sale of interest in unconsolidated joint venture/real estate, gain on sale of real estate and depreciable real estate reserves
Years ended:
December 31, 2015	$	112,564	$	160,008	$	272,572
December 31, 2014, as adjusted	52,431		145,673		198,104
December 31, 2013, as adjusted	25,038		165,858		190,896
Total assets
As of:
December 31, 2015	$	6,816,711	$	2,042,036	$	8,858,747
December 31, 2014, as adjusted	6,671,984		1,631,789		8,303,773

Income from continuing operations represents total revenues less total expenses for the real estate segment and total investment income and equity in net income from unconsolidated joint venture less allocated interest expense and provision for loan losses for the debt and preferred equity segment. Interest costs for the debt and preferred equity segment are imputed assuming the portfolio is 100% leveraged by our 2012 revolving credit facility borrowing cost and corporate borrowing cost. We also allocate loan loss reserves, net of recoveries and transaction related costs to the debt and preferred equity segment. We do not allocate marketing, general and administrative expenses to the debt and preferred equity segment, since we base performance on the individual segments prior to allocating marketing, general and administrative expenses. All other expenses, except interest, relate entirely to the real estate assets. There were no transactions between the above two segments.

The table below reconciles income from continuing operations to net income for the years ended December 31, 2015, 2014 and 2013 (in thousands):

	Year ended December 31,
	2015			2014		2013
				(as adjusted)		(as adjusted)
Income from continuing operations before equity in net gain on sale of interest in unconsolidated joint venture/real estate, gain on sale of real estate and depreciable real estate reserves	$	272,572		$	198,104	$	190,896
Equity in net gain on sale of interest in unconsolidated joint venture/real estate	—			85,559		2,056
Gain on sale of real estate	100,190			—		—
Depreciable real estate reserves	(9,998		)	—		—
Income from continuing operations	362,764			283,663		192,952
Net income from discontinued operations	—			1,996		5,907
Gain on sale of discontinued operations	—			117,579		13,756
Net income	$	362,764		$	403,238	$	212,615