XML 27 R18.htm IDEA: XBRL DOCUMENT
v3.24.3

Business Segments | 9 Months Ended
--- | ---
Sep. 30, 2024
Segment Reporting [Abstract] |
Business Segments | Note 8 — Business Segments We have three segments: (i) Development and Redevelopment; (ii) Operating; and (iii) Other. Our Development and Redevelopment segment consists of rental communities that are under construction or have not achieved stabilization, as well as land held for development. As of September 30, 2024, our Development and Redevelopment segment consists of 10 properties, including two of which were under construction and two substantially completed and in lease-up. Our Operating segment includes 21 residential apartment communities with 5,600 apartment homes that have achieved a stabilized level of operations as of January 1, 2023 and maintained it throughout the current year and comparable period in the prior year. We aggregate all our apartment communities that have reached stabilization into our Operating segment. During the first quarter of 2024, we revised the information regularly reviewed by our chief operating decision maker ("CODM") to assess our operating performance. As a result, we reclassified The Benson Hotel from the Development and Redevelopment segment to the Other segment. In addition, during the first quarter of 2024, we disposed of St. George Villas, which was previously reported within our Other segment. Prior period segment information has been recast based upon our current segment population, and is consistent with how our CODM evaluates the business. Our Other segment consists of properties currently owned that are not included in our Development and Redevelopment or Operating segments. Our Other segment includes 1001 Brickell Bay Drive, our only office building, and The Benson Hotel, our only hotel. Our CODM uses cash flow, construction timeline to completion, and actual versus budgeted results to evaluate our properties in our Development and Redevelopment segment. Our CODM uses proportionate property net operating income to assess the operating performance of our Operating segment. Proportionate property net operating income is defined as our share of rental and other property revenues, excluding utility reimbursements, less direct property operating expenses, net of utility reimbursements, for the consolidated communities; but • excluding the results of four apartment communities with an aggregate 142 apartment homes that we neither manage nor consolidate, our investment in IQHQ, the Mezzanine Investment, and investments in real estate technology funds; and • excluding property management costs and casualty gains or losses, reported in consolidated amounts, in our assessment of segment performance. The following tables present the results of operations of consolidated properties with our segments reported on a proportionate basis for the three months ended September 30, 2024 and 2023 (in thousands):
| Development and Redevelopment |  |  | Operating |  |  | Other |  |  | Proportionate and Other Adjustments(1) |  |  | Corporate and Amounts Not Allocated to Segments(2) |  |  | Consolidated |
Three Months Ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental and other property revenues | $ | 6,631 |  |  | $ | 39,281 |  |  | $ | 4,979 |  |  | $ | 2,267 |  |  | $ | — |  |  | $ | 53,158 |
Property operating expenses |  | 3,940 |  |  |  | 11,883 |  |  |  | 3,829 |  |  |  | 2,276 |  |  |  | 1,409 |  |  |  | 23,337 |
Other operating expenses not allocated to segments (3) |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 31,295 |  |  |  | 31,295 |
Total operating expenses |  | 3,940 |  |  |  | 11,883 |  |  |  | 3,829 |  |  |  | 2,276 |  |  |  | 32,704 |  |  |  | 54,632 |
Proportionate property net operating income (loss) |  | 2,691 |  |  |  | 27,398 |  |  |  | 1,150 |  |  |  | (9 | ) |  |  | (32,704 | ) |  |  | (1,474 | )
Other items included in income before income tax (4) |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (22,405 | ) |  |  | (22,405 | )
Income (loss) before income tax | $ | 2,691 |  |  | $ | 27,398 |  |  | $ | 1,150 |  |  | $ | (9 | ) |  | $ | (55,109 | ) |  | $ | (23,879 | )
| Development and Redevelopment |  |  | Operating |  |  | Other |  |  | Proportionate and Other Adjustments(1) |  |  | Corporate and Amounts Not Allocated to Segments(2) |  |  | Consolidated |
Three Months Ended September 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental and other property revenues | $ | 3,650 |  |  | $ | 37,722 |  |  | $ | 4,567 |  |  | $ | 1,746 |  |  | $ | 16 |  |  | $ | 47,701 |
Property operating expenses |  | 1,206 |  |  |  | 10,745 |  |  |  | 2,923 |  |  |  | 1,762 |  |  |  | 1,692 |  |  |  | 18,328 |
Other operating expenses not allocated to segments (3) |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 26,002 |  |  |  | 26,002 |
Total operating expenses |  | 1,206 |  |  |  | 10,745 |  |  |  | 2,923 |  |  |  | 1,762 |  |  |  | 27,694 |  |  |  | 44,330 |
Proportionate property net operating income (loss) |  | 2,444 |  |  |  | 26,977 |  |  |  | 1,644 |  |  |  | (16 | ) |  |  | (27,678 | ) |  |  | 3,371 |
Other items included in income before income tax (4) |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (7,907 | ) |  |  | (7,907 | )
Income (loss) before income tax | $ | 2,444 |  |  | $ | 26,977 |  |  | $ | 1,644 |  |  | $ | (16 | ) |  | $ | (35,585 | ) |  | $ | (4,536 | )
The following tables present the results of operations of consolidated properties with our segments reported on a proportionate basis for the nine months ended September 30, 2024 and 2023 (in thousands):
| Development and Redevelopment |  |  | Operating |  |  | Other |  |  | Proportionate and Other Adjustments(1) |  |  | Corporate and Amounts Not Allocated to Segments(2) |  |  | Consolidated |
Nine Months Ended September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental and other property revenues | $ | 16,799 |  |  | $ | 116,622 |  |  | $ | 14,762 |  |  | $ | 6,314 |  |  | $ | 11 |  |  | $ | 154,508 |
Property operating expenses |  | 9,689 |  |  |  | 35,538 |  |  |  | 10,087 |  |  |  | 6,416 |  |  |  | 5,363 |  |  |  | 67,093 |
Other operating expenses not allocated to segments (3) |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 88,999 |  |  |  | 88,999 |
Total operating expenses |  | 9,689 |  |  |  | 35,538 |  |  |  | 10,087 |  |  |  | 6,416 |  |  |  | 94,362 |  |  |  | 156,092 |
Proportionate property net operating income (loss) |  | 7,110 |  |  |  | 81,084 |  |  |  | 4,675 |  |  |  | (102 | ) |  |  | (94,351 | ) |  |  | (1,584 | )
Other items included in income before income tax (4) |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (95,511 | ) |  |  | (95,511 | )
Income (loss) before income tax | $ | 7,110 |  |  | $ | 81,084 |  |  | $ | 4,675 |  |  | $ | (102 | ) |  | $ | (189,862 | ) |  | $ | (97,095 | )
| Development and Redevelopment |  |  | Operating |  |  | Other |  |  | Proportionate and Other Adjustments(1) |  |  | Corporate and Amounts Not Allocated to Segments(2) |  |  | Consolidated |
Nine Months Ended September 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental and other property revenues | $ | 9,092 |  |  | $ | 111,404 |  |  | $ | 12,053 |  |  | $ | 4,958 |  |  | $ | 136 |  |  | $ | 137,643 |
Property operating expenses |  | 3,971 |  |  |  | 33,428 |  |  |  | 7,554 |  |  |  | 5,068 |  |  |  | 4,627 |  |  |  | 54,648 |
Other operating expenses not allocated to segments (3) |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 75,593 |  |  |  | 75,593 |
Total operating expenses |  | 3,971 |  |  |  | 33,428 |  |  |  | 7,554 |  |  |  | 5,068 |  |  |  | 80,220 |  |  |  | 130,241 |
Proportionate property net operating income (loss) |  | 5,121 |  |  |  | 77,976 |  |  |  | 4,499 |  |  |  | (110 | ) |  |  | (80,084 | ) |  |  | 7,402 |
Other items included in income before income tax (4) |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (22,177 | ) |  |  | (22,177 | )
Income (loss) before income tax | $ | 5,121 |  |  | $ | 77,976 |  |  | $ | 4,499 |  |  | $ | (110 | ) |  | $ | (102,261 | ) |  | $ | (14,775 | )
(1) Represents adjustments for noncontrolling interests in consolidated real estate partnerships' share of the results of consolidated communities in our segments, which are included in the related consolidated amounts, but excluded from proportionate property net operating income for our segment evaluation. Also includes the reclassification of utility reimbursements, which are included in Rental and other property revenues in our Condensed Consolidated Statements of Operations, in accordance with GAAP, from revenues to property operating expenses for the purpose of evaluating segment results. (2) Includes the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any. Also includes property management expenses and casualty gains and losses, which are included in consolidated property operating expenses and are not part of our segment performance measure. (3) Other operating expenses not allocated to segments consist of depreciation and amortization and general and administrative expenses. (4) Other items included in Income before income tax benefit (expense) consist primarily of interest income, interest expense, realized and unrealized gains (losses) on interest rate contracts, realized and unrealized gains (losses) on equity investments, and gain on dispositions of real estate. Net real estate and non-recourse property debt, net, of our segments as of September 30, 2024 and December 31, 2023, were as follows (in thousands):
| Development and Redevelopment |  |  | Operating |  |  | Other |  |  | Corporate and Amounts Not Allocated to Segments (1) |  |  | Total |
As of September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Buildings and improvements | $ | 747,797 |  |  | $ | 703,802 |  |  | $ | 240,009 |  |  | $ | — |  |  | $ | 1,691,608 |
Land |  | 206,099 |  |  |  | 262,409 |  |  |  | 151,521 |  |  |  | — |  |  |  | 620,029 |
Total real estate |  | 953,896 |  |  |  | 966,211 |  |  |  | 391,530 |  |  |  | — |  |  |  | 2,311,637 |
Accumulated depreciation |  | (31,412 | ) |  |  | (496,893 | ) |  |  | (95,608 | ) |  |  | — |  |  |  | (623,913 | )
Net real estate | $ | 922,484 |  |  | $ | 469,318 |  |  | $ | 295,922 |  |  | $ | — |  |  | $ | 1,687,724 |
Non-recourse property debt and construction loans, net | $ | 405,840 |  |  | $ | 763,728 |  |  | $ | 81,051 |  |  | $ | — |  |  | $ | 1,250,619 |
| Development and Redevelopment |  |  | Operating |  |  | Other |  |  | Corporate and Amounts Not Allocated to Segments (1) |  |  | Total |
As of December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Buildings and improvements | $ | 644,154 |  |  | $ | 709,051 |  |  | $ | 239,089 |  |  | $ | 1,508 |  |  | $ | 1,593,802 |
Land |  | 206,820 |  |  |  | 262,409 |  |  |  | 151,521 |  |  |  | 71 |  |  |  | 620,821 |
Total real estate |  | 850,974 |  |  |  | 971,460 |  |  |  | 390,610 |  |  |  | 1,579 |  |  |  | 2,214,623 |
Accumulated depreciation |  | (11,589 | ) |  |  | (489,206 | ) |  |  | (78,612 | ) |  |  | (1,395 | ) |  |  | (580,802 | )
Net real estate | $ | 839,385 |  |  | $ | 482,254 |  |  | $ | 311,998 |  |  | $ | 184 |  |  | $ | 1,633,821 |
Non-recourse property debt and construction loans, net | $ | 301,426 |  |  | $ | 765,372 |  |  | $ | 80,739 |  |  | $ | 204 |  |  | $ | 1,147,741 |
(1) During the first quarter of 2024, we disposed of St. George Villas, and therefore it is not included in our segment balance sheets at September 30, 2024. We added a column to the tables above for presentation purposes to display these assets and the associated debt as of September 30, 2024 and December 31, 2023, respectively. In addition to the amounts disclosed in the tables above, as of September 30, 2024 the Development and Redevelopment segment right-of-use lease assets and lease liabilities aggregated to $108.0 million and $121.3 million, respectively, and as of December 31, 2023, aggregated to $109.0 million and $118.7 million, respectively. As of September 30, 2024, right-of-use lease assets and lease liabilities primarily relate to our investments in Upton Place, Strathmore, and Oak Shore.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration