Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.7.0.1
Segment Information
3 Months Ended
Mar. 31, 2017
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
Segment Information
SEGMENT INFORMATION

We have three reportable segments: office, multifamily and retail. Office properties provide office space for various types of businesses and professions. Multifamily properties provide rental housing for individuals and families throughout the greater Washington metro region. Retail properties are typically grocery store-anchored neighborhood centers that include other small shop tenants or regional power centers with several junior box tenants.

We evaluate performance based upon net operating income from the combined properties in each segment. Our reportable operating segments are consolidations of similar properties. GAAP requires that segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing segments’ performance. Net operating income is a key measurement of our segment profit and loss. Net operating income is defined as segment real estate rental revenue less segment real estate expenses.

The following tables present revenues, net operating income, capital expenditures and total assets for the three months ended March 31, 2017 and 2016 from these segments, and reconcile net operating income of reportable segments to net income attributable to the controlling interests as reported (in thousands):
 
Three Months Ended March 31, 2017
 
Office
 
Retail
 
Multifamily
 
Corporate and Other
 
Consolidated
Real estate rental revenue
$
38,027

 
$
15,705

 
$
23,769

 
$

 
$
77,501

Real estate expenses
14,414

 
3,863

 
9,586

 

 
27,863

Net operating income
$
23,613

 
$
11,842

 
$
14,183

 
$

 
$
49,638

Depreciation and amortization
 
 
 
 
 
 
 
 
(26,069
)
General and administrative
 
 
 
 
 
 
 
 
(5,626
)
Interest expense
 
 
 
 
 
 
 
 
(11,405
)
Other income
 
 
 
 
 
 
 
 
77

Net income
 
 
 
 
 
 
 
 
6,615

Less: Net loss attributable to noncontrolling interests in subsidiaries
 
 
 
 
 
 
 
 
19

Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
$
6,634

Capital expenditures
$
4,955

 
$
184

 
$
6,297

 
$
575

 
$
12,011

Total assets
$
1,097,256

 
$
348,221

 
$
764,732

 
$
43,900

 
$
2,254,109

 
Three Months Ended March 31, 2016
 
Office
 
Retail
 
Multifamily
 
Corporate
and Other
 
Consolidated
Real estate rental revenue
$
43,818

 
$
15,380

 
$
17,939

 
$

 
$
77,137

Real estate expenses
17,075

 
4,406

 
7,253

 

 
28,734

Net operating income
$
26,743

 
$
10,974

 
$
10,686

 
$

 
$
48,403

Depreciation and amortization
 
 
 
 
 
 
 
 
(26,038
)
Acquisition costs
 
 
 
 
 
 
 
 
(154
)
General and administrative
 
 
 
 
 
 
 
 
(5,511
)
Interest expense
 
 
 
 
 
 
 
 
(14,360
)
Other income
 
 
 
 
 
 
 
 
39

Net income
 
 
 
 
 
 
 
 
2,379

Less: Net loss attributable to noncontrolling interests in subsidiaries
 
 
 
 
 
 
 
 
5

Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
$
2,384

Capital expenditures
$
2,171

 
$
543

 
$
2,002

 
$
13

 
$
4,729

Total assets
$
1,254,906

 
$
351,616

 
$
524,856

 
$
53,925

 
$
2,185,303