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Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Information
NOTE 14: SEGMENT INFORMATION

We operate in a single reportable segment which includes the ownership, development, redevelopment and acquisition of apartment communities. Within the residential segment, we do not distinguish or group our consolidated operations based on size (only one community, Riverside Apartments, comprises more than 10% of consolidated revenues), type (all assets in the segment are residential) or geography (all but six communities are within the Washington, DC metro region). Further, our apartment communities have similar long-term economic characteristics and provide similar products and services to our residents. As a result, our operating properties are aggregated into a single reportable segment: residential.

Prior to the end of the second quarter of 2021, we had two reportable segments: office and residential. During the third quarter of 2021, we closed on the sales of the Office Portfolio and the Retail Portfolio (see note 3), and following such sales, we have one remaining office property, Watergate 600, which does not meet the criteria for a reportable segment and has been classified within “Other” on our segment disclosure tables.

We evaluate performance based upon net operating income ("NOI") of the combined properties in the segment. Our reportable operating segment consolidates 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. NOI is a key measurement of our segment profit and loss and is defined as real estate rental revenue less real estate expenses.

Real estate rental revenue as a percentage of the total for each of the reportable operating segments for the three years ended December 31, 2023 was as follows:
 Year Ended December 31,
 202320222021
Multifamily92 %91 %89 %
Other8 %9 %11 %

The percentage of income producing real estate assets classified as held and used, at cost, for each of the reportable operating segments as of December 31, 2023 and 2022 was as follows:
 
 20232022
Multifamily96 %92 %
Other4 %8 %

The following tables present revenues, net operating income, capital expenditures and total assets for the three years ended December 31, 2023 from these segments, and reconciles net operating income of reportable segments to net (loss) income as reported (in thousands):
 Twelve Months Ended December 31, 2023
 Residential
Other (1)
Consolidated
Real estate rental revenue$209,311 $18,600 $227,911 
Real estate expenses74,535 5,295 79,830 
Net operating income$134,776 $13,305 $148,081 
Property management expenses(8,108)
General and administrative expenses(25,887)
Transformation costs(6,339)
Depreciation and amortization(88,950)
Interest expense(30,429)
Loss on extinguishment of debt(54)
Other income569 
Real estate impairment(41,860)
Net loss$(52,977)
Capital expenditures$37,782 $844 $38,626 
Total assets$1,768,426 $131,602 $1,900,028 
 Twelve Months Ended December 31, 2022
 Residential
Other (1)
Consolidated
Real estate rental revenue$190,500 18,880 $209,380 
Real estate expenses68,735 5,266 74,001 
Net operating income$121,765 $13,614 $135,379 
Property management expenses(7,436)
General and administrative expenses(28,258)
Transformation costs(9,686)
Depreciation and amortization(91,722)
Interest expense(24,940)
Loss on extinguishment of debt(4,917)
Other income712 
Net loss$(30,868)
Capital expenditures$35,081 $3,175 $38,256 
Total assets$1,691,176 $181,430 $1,872,606 
 Twelve Months Ended December 31, 2021
 Residential
Other (1), (2)
Consolidated
Real estate rental revenue$150,965$18,186 $169,151 
Real estate expenses55,5275,255 60,782 
Net operating income$95,438 $12,931 $108,369 
Property management expenses(6,133)
General and administrative expenses(27,538)
Transformation costs(6,635)
Depreciation and amortization(72,656)
Interest expense(34,063)
Loss on interest rate derivatives(5,866)
Loss on extinguishment of debt(12,727)
Other income4,109 
Discontinued operations:
Income from properties sold or held for sale23,083 
Gain on sale of real estate46,441 
Net income$16,384 
Capital expenditures$27,953$4,506 $32,459 
Total assets$1,455,328$420,666 $1,875,994 
______________________________
(1)     Other represents Watergate 600, an office property that does not meet the qualitative or quantitative criteria for a reportable segment.
(2)    Total capital expenditures include office and retail properties classified as discontinued operations.