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Reportable Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Reportable Segments
16.
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, who is the Company’s chief executive officer, 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 of our apartment communities geographically by market on a same store basis and in total on a non-same store basis, which represent our operating segments.

The Company has aggregated its geographic same store operating segments into one reportable segment called same store. Management believes the properties in the same store reportable segment have similar economic characteristics, facilities, services and residents, which is in alignment with the required aggregation criteria. The following reflects the two reportable segments for the Company:

•
Same store primarily includes all properties acquired or completed that were stabilized (defined as having achieved 90% physical occupancy for three consecutive months) for all of the current and comparable periods presented.
•
Non-same store primarily includes all properties acquired during the current and prior year, any properties in lease-up and not stabilized for all of the current and comparable periods presented and any properties undergoing major renovations.

The Company has non-residential activities included in each of its reportable segments, which account for less than 4.0% of total revenues for the year ended December 31, 2024 and serve as an amenity for our residential residents. All revenues are from external customers and there is no customer who contributed 10% or more of the Company’s total revenues during the years ended December 31, 2024, 2023 and 2022, respectively.

The primary financial measure for the Company’s reportable segments 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 years ended December 31, 2024, 2023 and 2022, respectively (amounts in thousands):

 

 

December 31, 2024

 

 

December 31, 2023

 

 

December 31, 2022

 

Net income

 

$

1,070,975

 

 

$

868,488

 

 

$

806,995

 

Adjustments:

 

 

 

 

 

 

 

 

 

Property management

 

 

132,739

 

 

 

119,804

 

 

 

110,304

 

General and administrative

 

 

61,653

 

 

 

60,716

 

 

 

58,710

 

Depreciation

 

 

952,191

 

 

 

888,709

 

 

 

882,168

 

Net (gain) loss on sales of real estate properties

 

 

(546,797

)

 

 

(282,539

)

 

 

(304,325

)

Interest and other income

 

 

(30,329

)

 

 

(22,345

)

 

 

(2,193

)

Other expenses

 

 

74,051

 

 

 

29,419

 

 

 

13,664

 

Interest:

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

285,735

 

 

 

269,556

 

 

 

282,920

 

Amortization of deferred financing costs

 

 

7,834

 

 

 

8,941

 

 

 

8,729

 

Income and other tax expense (benefit)

 

 

1,256

 

 

 

1,148

 

 

 

900

 

(Income) loss from investments in
   unconsolidated entities

 

 

8,974

 

 

 

5,378

 

 

 

5,031

 

Total NOI

 

$

2,018,282

 

 

$

1,947,275

 

 

$

1,862,903

 

 

The following table presents NOI from our rental real estate for the years ended December 31, 2024, 2023 and 2022, respectively (amounts in thousands):

 

 

December 31, 2024

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

Same store (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

$

479,711

 

 

$

148,030

 

 

$

331,681

 

 

$

466,980

 

 

$

143,983

 

 

$

322,997

 

 

$

450,635

 

 

$

132,858

 

 

$

317,777

 

Orange County

 

 

125,214

 

 

 

28,208

 

 

 

97,006

 

 

 

121,113

 

 

 

26,759

 

 

 

94,354

 

 

 

122,660

 

 

 

26,511

 

 

 

96,149

 

San Diego

 

 

96,969

 

 

 

21,127

 

 

 

75,842

 

 

 

92,847

 

 

 

20,794

 

 

 

72,053

 

 

 

86,728

 

 

 

19,506

 

 

 

67,222

 

Subtotal - Southern California

 

 

701,894

 

 

 

197,365

 

 

 

504,529

 

 

 

680,940

 

 

 

191,536

 

 

 

489,404

 

 

 

660,023

 

 

 

178,875

 

 

 

481,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

431,323

 

 

 

129,084

 

 

 

302,239

 

 

 

424,547

 

 

 

128,742

 

 

 

295,805

 

 

 

415,173

 

 

 

124,192

 

 

 

290,981

 

Washington, D.C.

 

 

438,914

 

 

 

137,786

 

 

 

301,128

 

 

 

419,628

 

 

 

132,610

 

 

 

287,018

 

 

 

417,210

 

 

 

138,570

 

 

 

278,640

 

New York

 

 

494,060

 

 

 

201,857

 

 

 

292,203

 

 

 

476,319

 

 

 

193,311

 

 

 

283,008

 

 

 

434,820

 

 

 

187,218

 

 

 

247,602

 

Boston

 

 

327,134

 

 

 

94,576

 

 

 

232,558

 

 

 

314,929

 

 

 

91,977

 

 

 

222,952

 

 

 

270,899

 

 

 

82,523

 

 

 

188,376

 

Seattle

 

 

285,539

 

 

 

81,843

 

 

 

203,696

 

 

 

278,170

 

 

 

78,418

 

 

 

199,752

 

 

 

281,959

 

 

 

79,037

 

 

 

202,922

 

Denver

 

 

71,061

 

 

 

21,600

 

 

 

49,461

 

 

 

71,067

 

 

 

21,328

 

 

 

49,739

 

 

 

67,785

 

 

 

19,569

 

 

 

48,216

 

Other Expansion Markets

 

 

73,493

 

 

 

30,366

 

 

 

43,127

 

 

 

74,593

 

 

 

31,713

 

 

 

42,880

 

 

 

61,897

 

 

 

27,618

 

 

 

34,279

 

Total same store

 

 

2,823,418

 

 

 

894,477

 

 

 

1,928,941

 

 

 

2,740,193

 

 

 

869,635

 

 

 

1,870,558

 

 

 

2,609,766

 

 

 

837,602

 

 

 

1,772,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-same store

 

 

100,419

 

 

 

36,350

 

 

 

64,069

 

 

 

35,474

 

 

 

15,117

 

 

 

20,357

 

 

 

74,379

 

 

 

29,758

 

 

 

44,621

 

Total reportable segments

 

 

2,923,837

 

 

 

930,827

 

 

 

1,993,010

 

 

 

2,775,667

 

 

 

884,752

 

 

 

1,890,915

 

 

 

2,684,145

 

 

 

867,360

 

 

 

1,816,785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (2)

 

 

56,271

 

 

 

30,999

 

 

 

25,272

 

 

 

98,297

 

 

 

41,937

 

 

 

56,360

 

 

 

51,035

 

 

 

4,917

 

 

 

46,118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals

 

$

2,980,108

 

 

$

961,826

 

 

$

2,018,282

 

 

$

2,873,964

 

 

$

926,689

 

 

$

1,947,275

 

 

$

2,735,180

 

 

$

872,277

 

 

$

1,862,903

 

(1)
For the years ended December 31, 2024 and 2023, same store represented 75,299 apartment units. For the year ended December 31, 2022, same store represented 76,297 apartment units.
(2)
Other includes development, other corporate operations and operations prior to disposition for properties sold.

 

The following table presents a reconciliation of operating expenses for each reportable segment for the years ended December 31, 2024, 2023 and 2022, respectively (amounts in thousands):

 

 

 

December 31, 2024

 

 

December 31, 2023

 

 

December 31, 2022

 

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Total

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Total

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Total

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate taxes

 

$

368,087

 

 

$

12,050

 

 

$

380,137

 

 

$

356,847

 

 

$

3,929

 

 

$

360,776

 

 

$

350,928

 

 

$

9,822

 

 

$

360,750

 

On-site payroll

 

 

168,006

 

 

 

7,335

 

 

 

175,341

 

 

 

167,486

 

 

 

3,189

 

 

 

170,675

 

 

 

161,297

 

 

 

5,156

 

 

 

166,453

 

Utilities

 

 

139,116

 

 

 

5,860

 

 

 

144,976

 

 

 

135,721

 

 

 

2,664

 

 

 

138,385

 

 

 

133,579

 

 

 

5,443

 

 

 

139,022

 

Repairs and maintenance

 

 

118,829

 

 

 

5,583

 

 

 

124,412

 

 

 

116,529

 

 

 

1,961

 

 

 

118,490

 

 

 

107,702

 

 

 

3,538

 

 

 

111,240

 

Other (2)

 

 

100,439

 

 

 

5,522

 

 

 

105,961

 

 

 

93,052

 

 

 

3,374

 

 

 

96,426

 

 

 

84,096

 

 

 

5,799

 

 

 

89,895

 

Total

 

$

894,477

 

 

$

36,350

 

 

$

930,827

 

 

$

869,635

 

 

$

15,117

 

 

$

884,752

 

 

$

837,602

 

 

$

29,758

 

 

$

867,360

 

 

(1)
For the years ended December 31, 2024 and 2023, same store represented 75,299 apartment units. For the year ended December 31, 2022, same store represented 76,297 apartment units.
(2)
Other operating expenses for each reportable segment includes insurance, leasing and advertising and other on-site operating expenses.

 

The following table presents a reconciliation of total assets and capital expenditures as of and for the years ended December 31, 2024 and 2023, respectively (amounts in thousands):

 

 

December 31, 2024

 

 

December 31, 2023

 

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Other (2)

 

 

Total

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Other (2)

 

 

Total

 

Total assets

 

$

17,638,845

 

 

$

2,322,642

 

 

$

872,689

 

 

$

20,834,176

 

 

$

18,190,640

 

 

$

782,516

 

 

$

1,061,408

 

 

$

20,034,564

 

Capital expenditures

 

$

273,997

 

 

$

22,028

 

 

$

5,409

 

 

$

301,434

 

 

$

278,149

 

 

$

32,023

 

 

$

9,170

 

 

$

319,342

 

(1)
For the years ended December 31, 2024 and 2023, same store represented 75,299 apartment units.
(2)
Other includes development, other corporate operations and capital expenditures for properties sold.