Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.20.2
Segment Information
6 Months Ended
Jun. 30, 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 and 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 and six months ended June 30, 2020 and 2019 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 June 30, 2020
  Office Multifamily Corporate and Other Consolidated
Real estate rental revenue $ 32,914    $ 36,038    $ 3,918    $ 72,870   
Real estate expenses 11,517    14,110    1,258    26,885   
Net operating income $ 21,397    $ 21,928    $ 2,660    $ 45,985   
Depreciation and amortization (29,599)  
General and administrative expenses (5,296)  
Interest expense (8,751)  
Loss on sale of real estate (7,539)  
Loss on extinguishment of debt (206)  
Net loss (5,406)  
Less: Net income attributable to noncontrolling interests in subsidiaries —   
Net loss attributable to the controlling interests $ (5,406)  
Capital expenditures $ 7,831    $ 5,488    $ 1,287    $ 14,606   
Total assets $ 1,063,283    $ 1,337,731    $ 141,708    $ 2,542,722   
  Three Months Ended June 30, 2019
  Office Multifamily
Corporate and Other (1)
Consolidated
Real estate rental revenue $ 42,061    $ 29,887    $ 4,872    $ 76,820   
Real estate expenses 15,565    11,226    1,343    28,134   
Net operating income $ 26,496    $ 18,661    $ 3,529    $ 48,686   
Depreciation and amortization (33,044)  
General and administrative expenses (5,535)  
Interest expense (15,252)  
Loss on sale of real estate (1,046)  
Income from operations of properties sold or held for sale 7,178   
Net income 987   
Less: Net income attributable to noncontrolling interests in subsidiaries —   
Net income attributable to the controlling interests $ 987   
Capital expenditures $ 5,385    $ 5,296    $ 726    $ 11,407   
Total assets $ 1,196,703    $ 1,260,847    $ 360,547    $ 2,818,097   
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(1)  Total assets and capital expenditures include all retail properties, including those classified as discontinued operations.
Six Months Ended June 30, 2020
Office Multifamily Corporate and Other Consolidated
Real estate rental revenue $ 68,584    $ 72,616    $ 8,462    $ 149,662   
Real estate expenses 24,834    28,095    2,595    55,524   
Net operating income $ 43,750    $ 44,521    $ 5,867    $ 94,138   
Depreciation and amortization (59,319)  
General and administrative (11,633)  
Interest expense (19,596)  
Loss on sale of real estate (7,539)  
Gain on extinguishment of debt 262   
Net loss (3,687)  
Less: Net income attributable to noncontrolling interests in subsidiaries —   
Net loss attributable to the controlling interests $ (3,687)  
Capital expenditures $ 14,919    $ 8,957    $ 1,700    $ 25,576   
Six Months Ended June 30, 2019
Office Multifamily
Corporate and Other (1)
Consolidated
Real estate rental revenue $ 84,354    $ 54,222    $ 9,678    $ 148,254   
Real estate expenses 30,789    20,696    2,792    54,277   
Net operating income $ 53,565    $ 33,526    $ 6,886    $ 93,977   
Depreciation and amortization (60,101)  
General and administrative (13,342)  
Interest expense (27,748)  
Loss on sale of real estate (1,046)  
Real estate impairment (8,374)  
Discontinued operations:
Income from operations of properties sold or held for sale 13,216   
Net loss (3,418)  
Less: Net income attributable to noncontrolling interests in subsidiaries —   
Net loss attributable to the controlling interests $ (3,418)  
Capital expenditures $ 10,308    $ 7,099    $ 1,348    $ 18,755   
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(1)  Total assets and capital expenditures include all retail properties, including those classified as discontinued operations.