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Segment Information
 9 Months Ended
Sep. 30, 2024
Segment Information  
Segment Information

16.Segment Information

We review operating and financial data for each property on an individual basis; therefore, each of our individual properties is a separate operating segment. We define our reportable segments to be aligned with our method of internal reporting and the way our Chief Executive Officer, who is also our CODM makes key operating decisions, evaluates financial results, allocates resources and manages our business. Accordingly, we aggregate our operating segments into three reportable segments (multifamily, commercial, and third-party asset management and real estate services) based on the economic characteristics and nature of our assets and services.

The CODM measures and evaluates the performance of our operating segments, with the exception of the third-party asset management and real estate services business, based on the net operating income ("NOI") of properties within each segment. NOI includes property rental revenue and parking revenue and deducts property operating expenses and real estate taxes.

With respect to the third-party asset management and real estate services business, the CODM reviews revenue streams generated by this segment ("Third-party real estate services, including reimbursements"), as well as the expenses attributable to the segment ("General and administrative: third-party real estate services"), which are both disclosed separately in our statements of operations.

The following represents the components of revenue from our third-party asset management and real estate services business:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 

​

Nine Months Ended September 30, 

​

    

2024

    

2023

X

2024

    

2023

​

 

(In thousands)

Property management fees

​

$

4,065

​

$

4,910

​

$

12,312

​

$

14,879

Asset management fees

​

 

1,139

​

 

1,155

​

 

3,305

​

 

3,513

Development fees

​

 

324

​

 

4,296

​

 

981

​

 

9,038

Leasing fees

​

 

1,001

​

 

1,036

​

 

3,326

​

 

3,648

Construction management fees

​

 

343

​

 

266

​

 

903

​

 

909

Other service revenue

​

 

1,601

​

 

1,399

​

 

3,966

​

 

4,045

Third-party real estate services revenue, excluding reimbursements

​

 

8,473

​

 

13,062

​

 

24,793

​

 

36,032

Reimbursement revenue (1)

​

 

8,588

​

 

10,880

​

 

27,533

​

 

33,556

Third-party real estate services revenue, including reimbursements

​

​

17,061

​

​

23,942

​

​

52,326

​

​

69,588

Third-party real estate services expenses

​

​

16,088

​

​

21,405

​

​

57,065

​

​

67,333

Third-party real estate services revenue less expenses

​

$

973

​

$

2,537

​

$

(4,739)

​

$

2,255

​

(1)Represents reimbursement of expenses incurred by us on behalf of third parties, including allocated payroll costs and amounts paid to third-party contractors for construction management projects.

Management company assets primarily consist of management and leasing contracts with a net book value of $4.0 million and $8.1 million as of September 30, 2024 and December 31, 2023, which were included in "Intangible assets, net" in our balance sheets. Consistent with internal reporting presented to our CODM and our definition of NOI, the third-party asset management and real estate services operating results are excluded from the NOI data below.

The following is the reconciliation of net loss attributable to common shareholders to consolidated NOI:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 

​

Nine Months Ended September 30, 

​

    

2024

    

2023

X

2024

    

2023

​

 

(In thousands)

Net loss attributable to common shareholders

​

$

(26,980)

​

$

(58,007)

​

$

(83,629)

​

$

(47,381)

Net loss attributable to redeemable noncontrolling interests

​

 

(4,365)

​

 

(7,926)

​

 

(12,353)

​

 

(5,961)

Net income (loss) attributable to noncontrolling interests

​

​

36

​

​

(168)

​

​

(10,931)

​

​

(703)

Net loss

​

​

(31,309)

​

​

(66,101)

​

​

(106,913)

​

​

(54,045)

Add:

​

 

  

​

 

  

​

 

  

​

 

  

Depreciation and amortization expense

​

 

50,050

​

 

50,265

​

 

158,211

​

 

152,914

General and administrative expense:

​

 

  

​

 

  

​

 

  

​

 

  

Corporate and other

​

 

11,881

​

 

11,246

​

 

43,855

​

 

42,462

Third-party real estate services

​

 

16,088

​

 

21,405

​

 

57,065

​

 

67,333

Share-based compensation related to Formation Transaction and special equity awards

​

 

—

​

 

46

​

 

—

​

 

397

Transaction and other costs

​

 

667

​

 

1,830

​

 

3,005

​

 

7,794

Interest expense

​

 

35,267

​

 

27,903

​

 

97,400

​

 

80,580

(Gain) loss on the extinguishment of debt

​

 

(43)

​

 

—

​

 

(43)

​

 

450

Impairment loss

​

​

—

​

 

59,307

​

​

18,236

​

​

59,307

Income tax expense (benefit)

​

 

831

​

 

77

​

 

(40)

​

 

672

Less:

​

 

  

​

 

  

​

 

  

​

 

  

Third-party real estate services, including reimbursements revenue

​

 

17,061

​

 

23,942

​

 

52,326

​

 

69,588

Other revenue

​

 

2,827

​

 

2,704

​

 

16,216

​

 

8,276

Income (loss) from unconsolidated real estate ventures, net

​

 

(745)

​

 

(2,263)

​

 

4

​

 

(1,320)

Interest and other income, net

​

 

4,573

​

 

7,774

​

 

10,105

​

 

14,132

Gain (loss) on the sale of real estate, net

​

 

(5,352)

​

 

906

​

 

(5,066)

​

 

41,606

Consolidated NOI

​

$

65,068

​

$

72,915

​

$

197,191

​

$

225,582

​

The following is a summary of NOI and certain balance sheet data by segment. Items classified in the Other column include development assets, corporate entities, land assets for which we are the ground lessor and the elimination of inter-segment activity.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended September 30, 2024

​

    

Multifamily

    

Commercial

    

Other

    

Total

​

 

(In thousands)

Property rental revenue (1)

​

$

54,617

​

$

54,142

​

$

3,403

​

$

112,162

Parking revenue

​

 

278

​

 

3,698

​

 

—

​

 

3,976

Total property revenue

​

 

54,895

​

 

57,840

​

 

3,403

​

 

116,138

Property expense:

​

 

​

​

 

​

​

 

​

​

 

  

Property operating

​

 

20,450

​

 

18,558

​

 

250

​

 

39,258

Real estate taxes

​

 

5,861

​

 

4,740

​

 

1,211

​

 

11,812

Total property expense

​

 

26,311

​

 

23,298

​

 

1,461

​

 

51,070

Consolidated NOI

​

$

28,584

​

$

34,542

​

$

1,942

​

$

65,068

​

​

Three Months Ended September 30, 2023

​

    

Multifamily

    

Commercial

    

Other

    

Total

​

 

(In thousands)

Property rental revenue

​

$

52,461

​

$

63,940

​

$

3,893

​

$

120,294

Parking revenue

​

 

248

​

 

4,310

​

 

64

​

 

4,622

Total property revenue

​

 

52,709

​

 

68,250

​

 

3,957

​

 

124,916

Property expense:

​

 

​

​

 

  

​

 

  

​

 

  

Property operating

​

 

19,379

​

 

18,866

​

 

(657)

​

 

37,588

Real estate taxes

​

 

5,581

​

 

8,210

​

 

622

​

 

14,413

Total property expense

​

 

24,960

​

 

27,076

​

 

(35)

​

 

52,001

Consolidated NOI

​

$

27,749

​

$

41,174

​

$

3,992

​

$

72,915

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Nine Months Ended September 30, 2024

​

    

Multifamily

    

Commercial

    

Other

    

Total

​

 

(In thousands)

Property rental revenue (1)

​

$

159,287

​

$

167,377

​

$

9,600

​

$

336,264

Parking revenue

​

 

657

​

 

11,130

​

 

(63)

​

 

11,724

Total property revenue

​

 

159,944

​

 

178,507

​

 

9,537

​

 

347,988

Property expense:

​

 

​

​

 

  

​

 

  

​

 

  

Property operating

​

 

56,769

​

 

53,188

​

 

834

​

 

110,791

Real estate taxes

​

 

18,137

​

 

19,517

​

 

2,352

​

 

40,006

Total property expense

​

 

74,906

​

 

72,705

​

 

3,186

​

 

150,797

Consolidated NOI

​

$

85,038

​

$

105,802

​

$

6,351

​

$

197,191

​

​

Nine Months Ended September 30, 2023

​

    

Multifamily

    

Commercial

    

Other

    

Total

​

​

(In thousands)

Property rental revenue

​

$

154,814

​

$

200,178

​

$

9,927

​

$

364,919

Parking revenue

​

 

767

​

 

12,874

​

 

195

​

 

13,836

Total property revenue

​

 

155,581

​

 

213,052

​

 

10,122

​

 

378,755

Property expense:

​

 

  

​

 

  

​

 

  

​

 

  

Property operating

​

 

55,228

​

 

56,489

​

 

(2,605)

​

 

109,112

Real estate taxes

​

 

16,837

​

 

25,406

​

 

1,818

​

 

44,061

Total property expense

​

 

72,065

​

 

81,895

​

 

(787)

​

 

153,173

Consolidated NOI

​

$

83,516

​

$

131,157

​

$

10,909

​

$

225,582

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Multifamily

    

Commercial

    

Other

    

Total

​

​

(In thousands)

September 30, 2024

​

​

​

​

​

​

​

​

​

​

​

​

Real estate, at cost

​

$

3,131,377

​

$

2,308,486

​

$

419,193

​

$

5,859,056

Investments in unconsolidated real estate ventures

​

 

—

​

 

11,524

​

 

89,158

​

 

100,682

Total assets

​

 

2,349,905

​

 

2,402,577

​

 

429,995

​

 

5,182,477

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2023

​

 

  

​

 

  

​

 

  

​

 

  

Real estate, at cost

​

$

3,154,116

​

$

2,357,713

​

$

363,333

​

$

5,875,162

Investments in unconsolidated real estate ventures

​

 

—

​

 

176,786

​

 

87,495

​

 

264,281

Total assets

​

 

2,559,395

​

 

2,683,947

​

 

275,173

​

 

5,518,515

​

​

​

​

​

​

(1)Property rental revenue excludes $1.2 million and $12.3 million of other revenue including lease termination revenue for the three and nine months ended September 30, 2024.