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Segment Reporting | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company's reportable operating segments include Established Communities, Other Stabilized Communities and Development/Redevelopment Communities. Annually as of January 1, the Company determines which of its communities fall into each of these categories and generally maintains that classification throughout the year for the purpose of reporting segment operations, unless disposition or redevelopment plans regarding a community change. •Established Communities (also known as Same Store Communities) are consolidated communities where the Company has a significant presence (New England, New York/New Jersey, Mid-Atlantic, Pacific Northwest, Northern and Southern California and the expansion markets of Southeast Florida and Denver, Colorado) and where a comparison of operating results from the prior year to the current year is meaningful, as these communities were owned and had stabilized occupancy as of the beginning of the prior year. The Established Communities for the year ended December 31, 2020, are communities that are consolidated for financial reporting purposes, had stabilized occupancy as of January 1, 2019, are not conducting or planning to conduct substantial redevelopment activities and are not held for sale or planned for disposition within the fiscal year. A community is considered to have stabilized occupancy at the earlier of (i) attainment of 90% physical occupancy or (ii) the one year anniversary of completion of development or redevelopment. •Other Stabilized Communities includes all other completed consolidated communities that have stabilized occupancy, as defined above, as January 1, 2020, or which were acquired during the years ended December 31, 2020 or 2019. Other Stabilized Communities excludes communities that are conducting or planning to conduct substantial redevelopment activities within the fiscal year. •Development/Redevelopment Communities consists of (i) consolidated communities that are either currently under construction, or were under construction during the fiscal year, which may be partially or fully complete and operating, (ii) consolidated communities where substantial redevelopment is in progress or is planned to begin during the fiscal year and (iii) communities under lease-up that have been complete for less than one year and have not reached stabilized occupancy, as defined above, as of January 1, 2020. In addition, the Company owns land for future development and has other corporate assets that are not allocated to an operating segment. The Company's segment disclosures present the measure(s) used by the chief operating decision maker for purposes of assessing each segment's performance. The Company's chief operating decision maker is comprised of several members of its executive management team who use net operating income (“NOI”) as the primary financial measure for Established Communities and Other Stabilized Communities. NOI is defined by the Company as total property revenue less direct property operating expenses (including property taxes), and excluding corporate-level income (including management, development and other fees), corporate-level property management and other indirect operating expenses, expensed transaction, development and other pursuit costs, net of recoveries, interest expense, net, (gain) loss on extinguishment of debt, net, general and administrative expense, equity in income of unconsolidated real estate entities, depreciation expense, corporate income tax expense, casualty and impairment (gain) loss, net, gain on sale of communities, (gain) loss on other real estate transactions, net for-sale condominium activity and net operating income from real estate assets sold or held for sale. Although the Company considers NOI a useful measure of a community's or communities' operating performance, NOI should not be considered an alternative to net income or net cash flow from operating activities, as determined in accordance with GAAP. NOI excludes a number of income and expense categories as detailed in the reconciliation of NOI to net income. A reconciliation of NOI to net income for years ended December 31, 2020, 2019 and 2018 is as follows (dollars in thousands):
| For the year ended
| 12/31/20 |  | 12/31/19 |  | 12/31/18
Net income | $ | 827,706 |  |  | $ | 786,103 |  |  | $ | 974,175 |
Indirect operating expenses, net of corporate income | 97,443 |  |  | 83,008 |  |  | 80,227 |
Expensed transaction, development and other pursuit costs, net of recoveries | 12,399 |  |  | 4,991 |  |  | 3,265 |
Interest expense, net | 214,151 |  |  | 203,585 |  |  | 220,974 |
Loss on extinguishment of debt, net | 9,333 |  |  | 602 |  |  | 17,492 |
General and administrative expense | 60,343 |  |  | 58,042 |  |  | 60,369 |
Equity in income of unconsolidated real estate entities | (6,422) |  |  | (8,652) |  |  | (15,270) |
Depreciation expense | 707,331 |  |  | 661,578 |  |  | 631,196 |
Income tax (benefit) expense | (3,247) |  |  | 13,003 |  |  | (160) |
Casualty and impairment loss, net | — |  |  | — |  |  | 215 |
Gain on sale of communities | (340,444) |  |  | (166,105) |  |  | (374,976) |
Gain on other real estate transactions, net | (440) |  |  | (439) |  |  | (345) |
Net for-sale condominium activity | (2,551) |  |  | 3,812 |  |  | 1,044 |
Net operating income from real estate assets sold or held for sale | (28,412) |  |  | (45,354) |  |  | (113,074) |
Net operating income | $ | 1,547,190 |  |  | $ | 1,594,174 |  |  | $ | 1,485,132 |
The following is a summary of NOI from real estate assets sold or held for sale for the periods presented (dollars in thousands):
| For the year ended
| 12/31/2020 |  | 12/31/2019 |  | 12/31/2018
Rental income from real estate assets sold or held for sale | $ | 44,951 |  |  | $ | 73,168 |  |  | $ | 175,915 |
Operating expenses from real estate assets sold or held for sale | (16,539) |  |  | (27,814) |  |  | (62,841) |
Net operating income from real estate assets sold or held for sale | $ | 28,412 |  |  | $ | 45,354 |  |  | $ | 113,074 |
The primary performance measure for communities under development or redevelopment depends on the stage of completion. While under development, management monitors actual construction costs against budgeted costs as well as lease-up pace and rent levels compared to budget. The following table provides details of the Company's segment information as of the dates specified (dollars in thousands). The segments are classified based on the individual community's status at January 1, 2020 for the years ended December 31, 2020 and 2019 and at January 1, 2019, for the year ended December 31, 2018. Segment information for the years ended December 31, 2020, 2019 and 2018 has been adjusted to exclude the real estate assets that were sold from January 1, 2018 through December 31, 2020, or otherwise qualify as held for sale as of December 31, 2020, as described in Note 6, “Real Estate Disposition Activities.” In addition to NOI, the Company's CODM considers total revenue in assessing each segment's performance. As discussed in Note 1, "Organization, Basis of Presentation and Significant Accounting Policies," the Company changed its presentation of charges for uncollectible lease revenue beginning with the year ended December 31, 2019, including it as an adjustment to revenue and not as a component of operating expenses, as it is presented for prior year periods on the accompanying Consolidated Statements of Comprehensive Income. Consistent with how the Company's CODM evaluates total revenue, and to provide comparability between periods presented in the Company's segment reporting, the Company has included charges for uncollectible lease revenue for its segment results as a component of revenue for the year ended December 31, 2018. Total revenue for the year ended December 31, 2018 as presented in the following table includes $14,072,000 of charges for uncollectible lease revenue.
| Total revenue |  | NOI |  | Gross real estate (1)
For the period ended December 31, 2020 |  |  |  |  |
Established |  |  |  |  |
New England | $ | 297,674 |  |  | $ | 193,053 |  |  | $ | 2,617,725 |
Metro NY/NJ | 445,939 |  |  | 305,408 |  |  | 4,235,524 |
Mid-Atlantic | 341,311 |  |  | 237,063 |  |  | 3,511,960 |
Pacific Northwest | 109,321 |  |  | 76,093 |  |  | 996,317 |
Northern California | 378,362 |  |  | 283,012 |  |  | 3,201,926 |
Southern California | 432,441 |  |  | 298,900 |  |  | 4,160,754 |
Expansion Markets | 23,269 |  |  | 13,376 |  |  | 321,252 |
Total Established (2) | 2,028,317 |  |  | 1,406,905 |  |  | 19,045,458 |
Other Stabilized | 140,173 |  |  | 92,040 |  |  | 1,596,656 |
Development / Redevelopment | 84,001 |  |  | 48,245 |  |  | 2,789,062 |
Land Held for Future Development | N/A |  | N/A |  | 110,142 |
Non-allocated (3) | 3,819 |  |  | N/A |  | 375,964 |
Total | $ | 2,256,310 |  |  | $ | 1,547,190 |  |  | $ | 23,917,282 |
For the period ended December 31, 2019 |  |  |  |  |
Established |  |  |  |  |
New England | $ | 303,816 |  |  | $ | 202,812 |  |  | $ | 2,595,907 |
Metro NY/NJ | 466,135 |  |  | 327,356 |  |  | 4,214,565 |
Mid-Atlantic | 351,680 |  |  | 250,142 |  |  | 3,484,610 |
Pacific Northwest | 113,021 |  |  | 82,186 |  |  | 990,563 |
Northern California | 397,593 |  |  | 305,450 |  |  | 3,186,075 |
Southern California | 451,640 |  |  | 321,776 |  |  | 4,131,539 |
Expansion Markets | 23,403 |  |  | 13,578 |  |  | 320,355 |
Total Established (2) | 2,107,288 |  |  | 1,503,300 |  |  | 18,923,614 |
Other Stabilized | 110,434 |  |  | 74,814 |  |  | 1,587,398 |
Development / Redevelopment | 28,776 |  |  | 16,060 |  |  | 2,086,519 |
Land Held for Future Development | N/A |  | N/A |  | — |
Non-allocated (3) | 4,960 |  |  | N/A |  | 559,777 |
Total | $ | 2,251,458 |  |  | $ | 1,594,174 |  |  | $ | 23,157,308 |
For the year ended December 31, 2018 |  |  |  |  |
Established |  |  |  |  |
New England | $ | 223,594 |  |  | $ | 148,310 |  |  | $ | 1,890,304 |
Metro NY/NJ | 379,968 |  |  | 271,767 |  |  | 3,367,198 |
Mid-Atlantic | 284,381 |  |  | 200,381 |  |  | 2,669,040 |
Pacific Northwest | 108,861 |  |  | 78,313 |  |  | 985,102 |
Northern California | 340,247 |  |  | 262,055 |  |  | 2,753,596 |
Southern California | 394,519 |  |  | 283,795 |  |  | 3,573,952 |
Expansion Markets (4) | N/A |  | N/A |  | N/A
Total Established (2) | 1,731,570 |  |  | 1,244,621 |  |  | 15,239,192 |
Other Stabilized | 238,584 |  |  | 159,745 |  |  | 3,063,670 |
Development / Redevelopment | 120,822 |  |  | 80,766 |  |  | 2,652,968 |
Land Held for Future Development | N/A |  | N/A |  | 84,712 |
Non-allocated (3) | 3,572 |  |  | N/A |  | 504,230 |
Total | $ | 2,094,548 |  |  | $ | 1,485,132 |  |  | $ | 21,544,772 |
_________________________________ (1) Does not include gross real estate assets held for sale of $44,940 as of December 31, 2020 and gross real estate either sold or classified as held for sale subsequent to December 31, 2019 and 2018 of $401,152 and $732,397, respectively. (2) Gross real estate for the Company's Established Communities includes capitalized additions of approximately $126,548, $128,324 and $78,469 in 2020, 2019 and 2018, respectively. (3) Revenue represents third-party management, accounting, and developer fees and miscellaneous income which are not allocated to a reportable segment. Gross real estate includes the for-sale residential condominiums at The Park Loggia, as discussed in Note 6, "Real Estate Disposition Activities." (4) The Company had no communities in its Established Communities Expansion Markets for the year ended December 31, 2018.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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