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Segment Reporting | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
Segment Reporting | Segment Reporting The Company's reportable operating segments include Same Store, Other Stabilized and Development/Redevelopment. 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. 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 ("CODM") for assessing each segment's performance. The Company's CODM is comprised of several members of its executive management team who use net operating income ("NOI") as the primary financial measure for Same Store 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, loss on extinguishment of debt, net, general and administrative expense, income from investments in unconsolidated entities, depreciation expense, income tax expense, casualty and impairment loss, gain on sale of communities, gain on other real estate transactions, net, net for-sale condominium activity and net operating income from real estate assets sold or held for sale. The CODM evaluates the Company's financial performance on a consolidated residential and commercial basis. The commercial results attributable to the non-apartment components of the Company's mixed-use communities and other nonresidential operations represent 2.5% and 1.8% of total NOI for the three months ended September 30, 2022 and 2021, respectively, and 2.1% and 1.6% for the nine months ended September 30, 2022 and 2021, respectively. 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 the three and nine months ended September 30, 2022 and 2021 is as follows (dollars in thousands):
| For the three months ended |  | For the nine months ended
| 9/30/2022 |  | 9/30/2021 |  | 9/30/2022 |  | 9/30/2021
Net income | $ | 494,632 |  |  | $ | 78,847 |  |  | $ | 895,274 |  |  | $ | 669,058 |
Property management and other indirect operating expenses, net of corporate income | 29,374 |  |  | 25,322 |  |  | 88,119 |  |  | 74,110 |
Expensed transaction, development and other pursuit costs, net of recoveries | 6,514 |  |  | 417 |  |  | 9,865 |  |  | 1,900 |
Interest expense, net | 57,290 |  |  | 55,987 |  |  | 172,613 |  |  | 164,704 |
Loss on extinguishment of debt, net | 1,646 |  |  | 17,890 |  |  | 1,646 |  |  | 17,768 |
General and administrative expense | 14,611 |  |  | 17,313 |  |  | 53,323 |  |  | 53,130 |
Income from investments in unconsolidated entities | (43,777) |  |  | (6,867) |  |  | (46,574) |  |  | (32,959) |
Depreciation expense | 206,658 |  |  | 193,791 |  |  | 607,746 |  |  | 561,560 |
Income tax expense | 5,651 |  |  | 2,179 |  |  | 7,963 |  |  | 1,434 |
Casualty and impairment loss | — |  |  | 1,940 |  |  | — |  |  | 3,117 |
Gain on sale of communities | (318,289) |  |  | (58) |  |  | (467,493) |  |  | (388,354) |
Gain on other real estate transactions, net | (15) |  |  | (1,543) |  |  | (95) |  |  | (2,002) |
Net for-sale condominium activity | (304) |  |  | (158) |  |  | (469) |  |  | 1,402 |
Net operating income from real estate assets sold or held for sale | (4,839) |  |  | (13,147) |  |  | (21,847) |  |  | (48,913) |
Net operating income | $ | 449,152 |  |  | $ | 371,913 |  |  | $ | 1,300,071 |  |  | $ | 1,075,955 |
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 three months ended |  | For the nine months ended
| 9/30/2022 |  | 9/30/2021 |  | 9/30/2022 |  | 9/30/2021
Rental income from real estate assets sold or held for sale | $ | 7,315 |  |  | $ | 21,636 |  |  | $ | 34,110 |  |  | $ | 79,989 |
Operating expenses from real estate assets sold or held for sale | (2,476) |  |  | (8,489) |  |  | (12,263) |  |  | (31,076) |
Net operating income from real estate assets sold or held for sale | $ | 4,839 |  |  | $ | 13,147 |  |  | $ | 21,847 |  |  | $ | 48,913 |
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 details 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, 2022. Segment information for the three and nine months ended September 30, 2022 and 2021 has been adjusted to exclude the real estate assets that were sold from January 1, 2021 through September 30, 2022, or otherwise qualify as held for sale as of September 30, 2022, as described in Note 6, "Real Estate Disposition Activities."
| For the three months ended |  | For the nine months ended |  |
| Total revenue |  | NOI |  | Total revenue |  | NOI |  | Gross real estate (1)
For the period ended September 30, 2022 |  |  |  |  |  |
Same Store |  |  |  |  |  |  |  |  |
New England | $ | 89,107 |  |  | $ | 59,271 |  |  | $ | 254,661 |  |  | $ | 168,041 |  |  | $ | 2,874,594 |
Metro NY/NJ | 120,111 |  |  | 81,824 |  |  | 344,785 |  |  | 237,804 |  |  | 4,108,778 |
Mid-Atlantic | 85,255 |  |  | 56,583 |  |  | 247,977 |  |  | 167,338 |  |  | 3,196,309 |
Southeast Florida | 9,661 |  |  | 6,374 |  |  | 28,171 |  |  | 18,522 |  |  | 398,306 |
Denver, CO | 6,891 |  |  | 4,905 |  |  | 19,869 |  |  | 14,531 |  |  | 321,354 |
Pacific Northwest | 37,379 |  |  | 26,273 |  |  | 107,987 |  |  | 76,596 |  |  | 1,295,468 |
Northern California | 102,955 |  |  | 73,498 |  |  | 300,171 |  |  | 214,269 |  |  | 3,674,996 |
Southern California | 123,423 |  |  | 85,311 |  |  | 368,299 |  |  | 258,552 |  |  | 4,304,711 |
Total Same Store | 574,782 |  |  | 394,039 |  |  | 1,671,920 |  |  | 1,155,653 |  |  | 20,174,516 |
Other Stabilized | 56,888 |  |  | 38,364 |  |  | 151,198 |  |  | 101,175 |  |  | 2,890,645 |
Development / Redevelopment | 24,904 |  |  | 16,749 |  |  | 63,493 |  |  | 43,243 |  |  | 2,177,648 |
Land Held for Development | N/A |  | N/A |  | N/A |  | N/A |  | 167,277 |
Non-allocated (2) | 1,399 |  |  | N/A |  | 3,054 |  |  | N/A |  | 154,266 |
Total | $ | 657,973 |  |  | $ | 449,152 |  |  | $ | 1,889,665 |  |  | $ | 1,300,071 |  |  | $ | 25,564,352 |
For the period ended September 30, 2021 |  |  |  |  |  |
Same Store |  |  |  |  |  |  |  |  |
New England | $ | 77,754 |  |  | $ | 48,696 |  |  | $ | 226,516 |  |  | $ | 144,116 |  |  | $ | 2,840,108 |
Metro NY/NJ | 104,940 |  |  | 70,459 |  |  | 308,252 |  |  | 209,265 |  |  | 4,079,405 |
Mid-Atlantic | 78,284 |  |  | 51,391 |  |  | 231,341 |  |  | 154,252 |  |  | 3,167,632 |
Southeast Florida | 8,152 |  |  | 5,026 |  |  | 23,099 |  |  | 13,772 |  |  | 395,594 |
Denver, CO | 6,070 |  |  | 4,011 |  |  | 17,576 |  |  | 11,965 |  |  | 320,214 |
Pacific Northwest | 32,344 |  |  | 22,079 |  |  | 93,911 |  |  | 63,493 |  |  | 1,286,674 |
Northern California | 92,636 |  |  | 64,562 |  |  | 277,571 |  |  | 195,136 |  |  | 3,629,269 |
Southern California | 113,601 |  |  | 77,831 |  |  | 324,487 |  |  | 220,527 |  |  | 4,250,958 |
Total Same Store | 513,781 |  |  | 344,055 |  |  | 1,502,753 |  |  | 1,012,526 |  |  | 19,969,854 |
Other Stabilized | 32,601 |  |  | 20,612 |  |  | 80,447 |  |  | 47,909 |  |  | 2,092,971 |
Development / Redevelopment | 12,061 |  |  | 7,246 |  |  | 28,084 |  |  | 15,520 |  |  | 1,411,995 |
Land Held for Development | N/A |  | N/A |  | N/A |  | N/A |  | 66,769 |
Non-allocated (2) | 695 |  |  | N/A |  | 2,380 |  |  | N/A |  | 278,779 |
Total | $ | 559,138 |  |  | $ | 371,913 |  |  | $ | 1,613,664 |  |  | $ | 1,075,955 |  |  | $ | 23,820,368 |
__________________________________ (1)Does not include gross real estate assets held for sale of $78,662 as of September 30, 2022 and gross real estate either sold or classified as held for sale subsequent to September 30, 2021 of $555,942. (2)Revenue represents third-party property management, developer fees and miscellaneous income and other ancillary items 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."

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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