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Reportable Segments
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Reportable Segments
12.
Reportable Segments

Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses and about which discrete financial information is available that is evaluated regularly by the chief operating decision maker. The chief operating decision maker decides how resources are allocated and assesses performance on a recurring basis at least quarterly.

The Company’s primary business is the acquisition, development and management of multifamily residential properties, which includes the generation of rental and other related income through the leasing of apartment units to residents. The chief operating decision maker evaluates the Company’s operating performance geographically by market for same store properties and on a portfolio basis for non-same store properties. While the Company does maintain a non-residential presence, it accounts for less than 4.0% of total revenues for the nine months ended September 30, 2024 and is designed as an amenity for our residential residents. The chief operating decision maker evaluates the performance of each property on a consolidated residential and non-residential basis. The Company’s geographic consolidated same store operating segments represent its reportable segments.

The Company’s development activities are other business activities that do not constitute an operating segment and as such, have been aggregated in the “Other” category in the tables presented below.

All revenues are from external customers and there is no customer who contributed 10% or more of the Company’s total revenues during the nine months and quarters ended September 30, 2024 and 2023, respectively.

The primary financial measure for the Company’s rental real estate segment is net operating income (“NOI”), which represents rental income less: 1) property and maintenance expense and 2) real estate taxes and insurance expense (all as reflected in the accompanying consolidated statements of operations and comprehensive income). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company’s apartment properties. Revenues for all leases are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods.

The following table presents a reconciliation of net income per the consolidated statements of operations to NOI for the nine months and quarters ended September 30, 2024 and 2023, respectively (amounts in thousands):

 

 

 

 

Nine Months Ended September 30,

 

 

Quarter Ended September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net income

 

$

637,104

 

 

$

546,219

 

 

$

148,517

 

 

$

181,286

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Property management

 

 

100,381

 

 

 

90,314

 

 

 

31,412

 

 

 

28,169

 

General and administrative

 

 

48,902

 

 

 

49,135

 

 

 

14,551

 

 

 

14,094

 

Depreciation

 

 

688,041

 

 

 

661,921

 

 

 

237,948

 

 

 

224,736

 

Net (gain) loss on sales of real estate properties

 

 

(227,829

)

 

 

(127,034

)

 

 

165

 

 

 

(26,912

)

Interest and other income

 

 

(26,501

)

 

 

(11,296

)

 

 

(15,844

)

 

 

(7,627

)

Other expenses

 

 

59,094

 

 

 

20,517

 

 

 

13,971

 

 

 

4,958

 

Interest:

 

 

 

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

205,762

 

 

 

200,882

 

 

 

72,722

 

 

 

68,891

 

Amortization of deferred financing costs

 

 

5,784

 

 

 

7,023

 

 

 

1,948

 

 

 

3,027

 

Income and other tax expense (benefit)

 

 

925

 

 

 

892

 

 

 

290

 

 

 

258

 

(Income) loss from investments in
   unconsolidated entities

 

 

4,865

 

 

 

3,847

 

 

 

1,493

 

 

 

1,242

 

Total NOI

 

$

1,496,528

 

 

$

1,442,420

 

 

$

507,173

 

 

$

492,122

 

 

The following tables present NOI from our rental real estate for each segment for the nine months and quarters ended September 30, 2024 and 2023, respectively, as well as total assets and capital expenditures at September 30, 2024 (amounts in thousands):

 

 

 

 

Nine Months Ended September 30, 2024

 

 

Nine Months Ended September 30, 2023

 

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

Same store (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

$

359,597

 

 

$

111,273

 

 

$

248,324

 

 

$

348,595

 

 

$

108,917

 

 

$

239,678

 

Orange County

 

 

93,760

 

 

 

21,113

 

 

 

72,647

 

 

 

90,080

 

 

 

20,188

 

 

 

69,892

 

San Diego

 

 

77,784

 

 

 

17,731

 

 

 

60,053

 

 

 

74,183

 

 

 

17,371

 

 

 

56,812

 

Subtotal - Southern California

 

 

531,141

 

 

 

150,117

 

 

 

381,024

 

 

 

512,858

 

 

 

146,476

 

 

 

366,382

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington, D.C.

 

 

347,229

 

 

 

110,104

 

 

 

237,125

 

 

 

331,425

 

 

 

107,050

 

 

 

224,375

 

San Francisco

 

 

325,999

 

 

 

99,012

 

 

 

226,987

 

 

 

321,310

 

 

 

98,504

 

 

 

222,806

 

New York

 

 

369,642

 

 

 

151,331

 

 

 

218,311

 

 

 

356,157

 

 

 

145,192

 

 

 

210,965

 

Boston

 

 

244,474

 

 

 

69,882

 

 

 

174,592

 

 

 

234,291

 

 

 

69,072

 

 

 

165,219

 

Seattle

 

 

223,656

 

 

 

65,197

 

 

 

158,459

 

 

 

218,574

 

 

 

62,055

 

 

 

156,519

 

Denver

 

 

53,522

 

 

 

16,190

 

 

 

37,332

 

 

 

53,324

 

 

 

16,161

 

 

 

37,163

 

Other Expansion Markets

 

 

55,612

 

 

 

22,509

 

 

 

33,103

 

 

 

55,768

 

 

 

24,123

 

 

 

31,645

 

Total same store

 

 

2,151,275

 

 

 

684,342

 

 

 

1,466,933

 

 

 

2,083,707

 

 

 

668,633

 

 

 

1,415,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-same store/other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-same store (2)

 

 

54,874

 

 

 

22,230

 

 

 

32,644

 

 

 

22,406

 

 

 

10,893

 

 

 

11,513

 

Other (3)

 

 

7,180

 

 

 

10,229

 

 

 

(3,049

)

 

 

40,351

 

 

 

24,518

 

 

 

15,833

 

Total non-same store/other

 

 

62,054

 

 

 

32,459

 

 

 

29,595

 

 

 

62,757

 

 

 

35,411

 

 

 

27,346

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals

 

$

2,213,329

 

 

$

716,801

 

 

$

1,496,528

 

 

$

2,146,464

 

 

$

704,044

 

 

$

1,442,420

 

 

(1)
For the nine months ended September 30, 2024 and 2023, same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2023, less properties subsequently sold, which represented 76,916 apartment units.
(2)
For the nine months ended September 30, 2024 and 2023, non-same store primarily includes properties acquired after January 1, 2023, plus any properties in lease-up and not stabilized as of January 1, 2023, and any properties undergoing major renovations.
(3)
Other includes development, other corporate operations and operations prior to disposition for properties sold.

 

 

 

Quarter Ended September 30, 2024

 

 

Quarter Ended September 30, 2023

 

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

Same store (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

$

120,211

 

 

$

37,670

 

 

$

82,541

 

 

$

118,812

 

 

$

36,343

 

 

$

82,469

 

Orange County

 

 

31,488

 

 

 

7,248

 

 

 

24,240

 

 

 

30,663

 

 

 

6,792

 

 

 

23,871

 

San Diego

 

 

25,969

 

 

 

6,071

 

 

 

19,898

 

 

 

25,258

 

 

 

5,820

 

 

 

19,438

 

Subtotal - Southern California

 

 

177,668

 

 

 

50,989

 

 

 

126,679

 

 

 

174,733

 

 

 

48,955

 

 

 

125,778

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington, D.C.

 

 

117,306

 

 

 

38,351

 

 

 

78,955

 

 

 

112,681

 

 

 

35,616

 

 

 

77,065

 

San Francisco

 

 

108,957

 

 

 

33,313

 

 

 

75,644

 

 

 

107,808

 

 

 

32,769

 

 

 

75,039

 

New York

 

 

123,506

 

 

 

50,011

 

 

 

73,495

 

 

 

118,327

 

 

 

48,055

 

 

 

70,272

 

Boston

 

 

81,941

 

 

 

23,156

 

 

 

58,785

 

 

 

78,562

 

 

 

22,875

 

 

 

55,687

 

Seattle

 

 

75,032

 

 

 

21,907

 

 

 

53,125

 

 

 

72,778

 

 

 

20,883

 

 

 

51,895

 

Denver

 

 

19,649

 

 

 

6,062

 

 

 

13,587

 

 

 

19,802

 

 

 

5,937

 

 

 

13,865

 

Other Expansion Markets

 

 

18,249

 

 

 

6,309

 

 

 

11,940

 

 

 

18,679

 

 

 

7,957

 

 

 

10,722

 

Total same store

 

 

722,308

 

 

 

230,098

 

 

 

492,210

 

 

 

703,370

 

 

 

223,047

 

 

 

480,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-same store/other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-same store (2)

 

 

25,391

 

 

 

9,371

 

 

 

16,020

 

 

 

8,059

 

 

 

4,099

 

 

 

3,960

 

Other (3)

 

 

649

 

 

 

1,706

 

 

 

(1,057

)

 

 

12,638

 

 

 

4,799

 

 

 

7,839

 

Total non-same store/other

 

 

26,040

 

 

 

11,077

 

 

 

14,963

 

 

 

20,697

 

 

 

8,898

 

 

 

11,799

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals

 

$

748,348

 

 

$

241,175

 

 

$

507,173

 

 

$

724,067

 

 

$

231,945

 

 

$

492,122

 

 

(1)
For the quarters ended September 30, 2024 and 2023, same store primarily includes all properties acquired or completed that were stabilized prior to July 1, 2023, less properties subsequently sold, which represented 77,203 apartment units.
(2)
For the quarters ended September 30, 2024 and 2023, non-same store primarily includes properties acquired after July 1, 2023, plus any properties in lease-up and not stabilized as of July 1, 2023, and any properties undergoing major renovations.
(3)
Other includes development, other corporate operations and operations prior to disposition for properties sold.

 

 

 

Nine Months Ended September 30, 2024

 

 

 

Total Assets

 

 

Capital Expenditures

 

Same store (1)

 

 

 

 

 

 

Los Angeles

 

$

2,441,079

 

 

$

39,778

 

Orange County

 

 

334,057

 

 

 

12,059

 

San Diego

 

 

335,471

 

 

 

12,061

 

Subtotal - Southern California

 

 

3,110,607

 

 

 

63,898

 

 

 

 

 

 

 

 

Washington, D.C.

 

 

2,980,055

 

 

 

35,160

 

San Francisco

 

 

2,996,799

 

 

 

42,555

 

New York

 

 

3,241,250

 

 

 

19,683

 

Boston

 

 

2,028,747

 

 

 

21,954

 

Seattle

 

 

2,023,139

 

 

 

22,405

 

Denver

 

 

799,928

 

 

 

3,036

 

Other Expansion Markets

 

 

872,501

 

 

 

5,154

 

Total same store

 

 

18,053,026

 

 

 

213,845

 

 

 

 

 

 

 

 

Non-same store/other

 

 

 

 

 

 

Non-same store (2)

 

 

1,998,651

 

 

 

15,724

 

Other (3)

 

 

874,144

 

 

 

538

 

Total non-same store/other

 

 

2,872,795

 

 

 

16,262

 

 

 

 

 

 

 

 

Totals

 

$

20,925,821

 

 

$

230,107

 

 

(1)
Same store primarily includes all properties acquired or completed that were stabilized prior to January 1, 2023, less properties subsequently sold, which represented 76,916 apartment units.
(2)
Non-same store primarily includes properties acquired after January 1, 2023, plus any properties in lease-up and not stabilized as of January 1, 2023, and any properties undergoing major renovations.
(3)
Other includes development, other corporate operations and capital expenditures for properties sold.