Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.20.1
Segment Information
3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION

We evaluate real estate performance and allocate resources by property type and have two reportable segments: office and multifamily. Office properties provide office space for various types of businesses and professions. Multifamily properties provide rental housing for individuals and families throughout the Washington metro region. We have eight retail properties that do not meet the qualitative or quantitative criteria for a reportable segment and are classified as “Corporate and other” in our segment disclosure tables.

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, 2020 and 2019 from these segments, and reconcile net operating income of reportable segments to net income (loss) attributable to the controlling interests as reported (in thousands):
 
Three Months Ended March 31, 2020
 
Office
 
Multifamily
 
Corporate and Other (1)
 
Consolidated
Real estate rental revenue
$
35,670

 
$
36,578

 
$
4,544

 
$
76,792

Real estate expenses
13,317

 
13,985

 
1,337

 
28,639

Net operating income
$
22,353

 
$
22,593

 
$
3,207

 
$
48,153

Depreciation and amortization
 
 
 
 
 
 
(29,720
)
General and administrative expenses
 
 
 
 
 
 
(6,337
)
Interest expense
 
 
 
 
 
 
(10,845
)
Gain on extinguishment of debt
 
 
 
 
 
 
468

Net income
 
 
 
 
 
 
1,719

Less: Net income attributable to noncontrolling interests in subsidiaries
 
 
 
 
 
 

Net income attributable to the controlling interests
 
 
 
 
 
 
$
1,719

Capital expenditures
$
7,088

 
$
3,469

 
$
383

 
$
10,940

Total assets
$
1,130,013

 
$
1,339,925

 
$
152,682

 
$
2,622,620

______________________________
(1)
Corporate and Other is comprised of eight retail properties that do not meet the qualitative or quantitative criteria for a reportable segment and are classified as “Corporate and other” in our segment disclosure tables.
 
Three Months Ended March 31, 2019
 
Office
 
Multifamily
 
Corporate
and Other (2)
 
Consolidated
Real estate rental revenue
$
42,293

 
$
24,335

 
$
4,806

 
$
71,434

Real estate expenses
15,224

 
9,470

 
1,449

 
26,143

Net operating income
$
27,069

 
$
14,865

 
$
3,357

 
$
45,291

Depreciation and amortization
 
 
 
 
 
 
(27,057
)
General and administrative expenses
 
 
 
 
 
 
(7,807
)
Interest expense
 
 
 
 
 
 
(12,496
)
Real estate impairment
 
 
 
 
 
 
(8,374
)
Discontinued operations:
 
 
 
 
 
 
 
Income from operations of properties sold or held for sale
 
 
 
 
 
 
6,038

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

 
$
1,803

 
$
622

 
$
7,348

Total assets
$
1,238,795

 
$
796,525

 
$
373,147

 
$
2,408,467


______________________________
(2)
Net operating income includes the retail properties not classified as discontinued operations: Takoma Park, Westminster, Concord Center, Chevy Chase Metro Plaza, 800 S. Washington Street, Randolph Shopping Center, Montrose Shopping Center and Spring Valley Village, and total assets and capital expenditures include all retail properties, including those classified as discontinued operations.