Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.19.1
Segment Information
3 Months Ended
Mar. 31, 2019
Segment Reporting [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 each segment’s performance. Net operating income is a key measurement of our segment profit and loss. Net operating income is defined as real estate rental revenue less real estate expenses.

The following tables present revenues, net operating income, capital expenditures and total assets for the three months ended March 31, 2019 and 2018 from these segments, and reconcile net operating income of reportable segments to net (loss) income attributable to the controlling interests as reported (in thousands):
 
Three Months Ended March 31, 2019
 
Office
 
Retail
 
Multifamily
 
Corporate and Other
 
Consolidated
Real estate rental revenue
$
42,293

 
$
16,546

 
$
24,335

 
$

 
$
83,174

Real estate expenses
15,224

 
4,516

 
9,470

 

 
29,210

Net operating income
$
27,069

 
$
12,030

 
$
14,865

 
$

 
$
53,964

Depreciation and amortization
 
 
 
 
 
 
 
 
(29,547
)
General and administrative expenses
 
 
 
 
 
 
 
 
(7,429
)
Lease origination expenses
 
 
 
 
 
 
 
 
(378
)
Interest expense
 
 
 
 
 
 
 
 
(12,641
)
Real estate impairment
 
 
 
 
 
 
 
 
(8,374
)
Net loss
 
 
 
 
 
 
 
 
(4,405
)
Less: Net income attributable to noncontrolling interests in subsidiaries
 
 
 
 
 
 
 
 

Net loss attributable to the controlling interests
 
 
 
 
 
 
 
 
$
(4,405
)
Capital expenditures
$
4,923

 
$
555

 
$
1,803

 
$
67

 
$
7,348

Total assets
$
1,238,795

 
$
336,229

 
$
796,525

 
$
36,918

 
$
2,408,467

 
Three Months Ended March 31, 2018
 
Office
 
Retail
 
Multifamily
 
Corporate
and Other
 
Consolidated
Real estate rental revenue
$
45,547

 
$
15,671

 
$
23,663

 
$

 
$
84,881

Real estate expenses
16,302

 
4,160

 
9,439

 

 
29,901

Net operating income
$
29,245

 
$
11,511

 
$
14,224

 
$

 
$
54,980

Depreciation and amortization
 
 
 
 
 
 
 
 
(29,969
)
General and administrative expenses
 
 
 
 
 
 
 
 
(5,821
)
Interest expense
 
 
 
 
 
 
 
 
(12,827
)
Real estate impairment
 
 
 
 
 
 
 
 
(1,886
)
Loss on extinguishment of debt
 
 
 
 
 
 
 
 
(1,178
)
Net income
 
 
 
 
 
 
 
 
3,299

Less: Net income attributable to noncontrolling interests in subsidiaries
 
 
 
 
 
 
 
 

Net income attributable to the controlling interests
 
 
 
 
 
 
 
 
$
3,299

Capital expenditures
$
4,945

 
$
475

 
$
2,425

 
$
172

 
$
8,017

Total assets
$
1,361,880

 
$
344,904

 
$
769,643

 
$
41,868

 
$
2,518,295