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SEGMENT REPORTING
 9 Months Ended
Jan. 31, 2017
SEGMENT REPORTING [Abstract]  
SEGMENT REPORTING

NOTE 5 • SEGMENT REPORTING 

We report our results in two reportable segments, which are aggregations of similar properties: multifamily and healthcare, excluding our senior housing properties, which are classified as held for sale and discontinued operations at January 31, 2017.   

We measure the performance of our segments based on net operating income (“NOI”), which we define as total real estate revenues less real estate expenses (which consist of utilities, maintenance, real estate taxes, insurance, property management expenses and other property expenses). During the first quarter of fiscal year 2017, we removed offsite costs associated with property management and casualty-related amounts from our assessment of segment performance as a result of our announced strategic shift to focus solely on our multifamily segment. These expenses were removed from the operating results reviewed by our chief operating decision maker to allow for the assessment of direct property costs in NOI, excluding allocated costs. We believe that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of core operations that is unaffected by depreciation, amortization, financing and general and administrative expense. NOI does not represent cash generated by operating activities in accordance with US GAAP and should not be considered an alternative to net income, net income available for common shareholders or cash flow from operating activities as a measure of financial performance.

The revenues and NOI for these reportable segments are summarized as follows for the three and nine month periods ended January 31, 2017 and 2016, along with reconciliations to the condensed consolidated financial statements. Segment assets are also reconciled to total assets as reported in the condensed consolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

Three Months Ended January 31, 2017

    

Multifamily

    

Healthcare

All Other

    

Amounts Not
Allocated To
Segments(1)

    

Total

 

Real estate revenue

 

$
36,269

 

$
12,099

$
2,806

 

$

 —

 

$
51,174

 

Real estate expenses

 

 
16,336

 

 
4,216

 
838

 

 
1,403

 

 
22,793

 

Net operating income (loss)

 

$
19,933

 

$
7,883

$
1,968

 

$
(1,403)

 

$
28,381

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 
(13,475)

 

General and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 
(3,130)

 

Acquisition and investment related costs

 

 

 

 

 

 

 

 

 

 

 

 

 
(5)

 

Other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 
(1,037)

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 
(10,680)

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

 

 
(1,907)

 

Interest and other income

 

 

 

 

 

 

 

 

 

 

 

 

 
974

 

Loss before gain on sale of real estate and other investments and income from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 
(879)

 

Gain on sale of real estate and other investments

 

 

 

 

 

 

 

 

 

 

 

 

 
2,437

 

Income from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 
1,558

 

Income from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 
23,631

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$
25,189

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

Nine Months Ended January 31, 2017

    

Multifamily

    

Healthcare

All Other

    

Amounts Not
Allocated To
Segments(1)

    

Total

 

Real estate revenue

 

$
107,559

 

$
35,301

$
8,534

 

 

 —

 

$
151,394

 

Real estate expenses

 

 
46,781

 

 
12,560

 
2,294

 

 
4,365

 

 
66,000

 

Net operating income (loss)

 

$
60,778

 

$
22,741

$
6,240

 

 
(4,365)

 

 
85,394

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 
(41,273)

 

Impairment of real estate investments

 

 

 

 

 

 

 

 

 

 

 

 

 
(54,153)

 

General and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 
(8,438)

 

Acquisition and investment related costs

 

 

 

 

 

 

 

 

 

 

 

 

 
(52)

 

Other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 
(2,705)

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 
(31,670)

 

Interest and other income

 

 

 

 

 

 

 

 

 

 

 

 

 
2,656

 

Loss before gain on sale of real estate and other investments and income from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 
(52,148)

 

Gain on sale of real estate and other investments

 

 

 

 

 

 

 

 

 

 

 

 

 
11,292

 

Loss from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 
(40,856)

 

Income from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 
37,741

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

$
(3,115)

 

(1)

Consists of offsite costs associated with property management and casualty-related amounts, which are excluded in our assessment of segment performance.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

Three Months Ended January 31, 2016

    

Multifamily

    

Healthcare

All Other

    

Amounts Not
Allocated To
Segments(1)

    

 

Total

 

Real estate revenue

 

$
33,425

 

$
11,859

$
3,122

 

$

 —

 

$
48,406

 

Real estate expenses

 

 
14,564

 

 
3,971

 
634

 

 
1,152

 

 
20,321

 

Net operating income (loss)

 

$
18,861

 

$
7,888

$
2,488

 

$
(1,152)

 

 
28,085

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 
(12,693)

 

Impairment of real estate investments

 

 

 

 

 

 

 

 

 

 

 

 

 
(162)

 

General and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 
(2,929)

 

Acquisition and investment related costs

 

 

 

 

 

 

 

 

 

 

 

 

 
(35)

 

Other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 
(51)

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 
(9,151)

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

 

 
0

 

Interest and other income

 

 

 

 

 

 

 

 

 

 

 

 

 
701

 

Income before gain on sale of real estate and other investments

 

 

 

 

 

 

 

 

 

 

 

 

 
3,765

 

Gain on sale of real estate and other investments

 

 

 

 

 

 

 

 

 

 

 

 

 
1,446

 

Income from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 
5,211

 

Income from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 
38,232

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$
43,443

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

Nine Months Ended January 31, 2016

    

Multifamily

    

Healthcare

All Other

    

Amounts Not
Allocated To
Segments(1)

    

 

Total

 

Real estate revenue

 

$
97,034

 

$
33,989

$
8,774

 

$

 —

 

$
139,797

 

Real estate expenses

 

 
42,194

 

 
11,287

 
1,863

 

 
3,232

 

 
58,576

 

Net operating income (loss)

 

$
54,840

 

$
22,702

$
6,911

 

$
(3,232)

 

 
81,221

 

Depreciation and amortization

 

 

 

 

 

 

 

 

 

 

 

 

 
(36,315)

 

Impairment of real estate investments

 

 

 

 

 

 

 

 

 

 

 

 

 
(3,320)

 

General and administrative expenses

 

 

 

 

 

 

 

 

 

 

 

 

 
(8,316)

 

Acquisition and investment related costs

 

 

 

 

 

 

 

 

 

 

 

 

 
(433)

 

Other expenses

 

 

 

 

 

 

 

 

 

 

 

 

 
(1,281)

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 
(25,706)

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

 

 
(106)

 

Interest and other income

 

 

 

 

 

 

 

 

 

 

 

 

 
1,973

 

Income before gain on sale of real estate and other investments

 

 

 

 

 

 

 

 

 

 

 

 

 
7,717

 

Gain on sale of real estate and other investments

 

 

 

 

 

 

 

 

 

 

 

 

 
1,271

 

Income from continuing operations

 

 

 

 

 

 

 

 

 

 

 

 

 
8,988

 

Income from discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 
55,859

 

Net income

 

 

 

 

 

 

 

 

 

 

 

 

$
64,847

 

(1)

Consists of offsite costs associated with property management and casualty-related amounts, which are excluded in our assessment of segment performance.

Segment Assets and Accumulated Depreciation

 

Segment assets are summarized as follows as of January 31, 2017, and April 30, 2016, along with reconciliations to the condensed consolidated financial statements:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

As of January 31, 2017

    

Multifamily

    

Healthcare

    

All Other

    

Total

 

Segment assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Property owned

 

$
1,245,033

 

$
343,814

 

$
96,976

 

$
1,685,823

 

Less accumulated depreciation

 

 
(222,568)

 

 
(91,287)

 

 
(21,020)

 

 
(334,875)

 

Total property owned

 

$
1,022,465

 

$
252,527

 

$
75,956

 

$
1,350,948

 

Assets held for sale and assets from discontinued operations

 

 

 

 

 

 

 

 

 

 

 
140,226

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 
56,999

 

Receivables and other assets

 

 

 

 

 

 

 

 

 

 

 
30,309

 

Development in progress

 

 

 

 

 

 

 

 

 

 

 
11,531

 

Unimproved land

 

 

 

 

 

 

 

 

 

 

 
19,076

 

Total Assets

 

 

 

 

 

 

 

 

 

 

$
1,609,089

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

As of April 30, 2016

    

Multifamily

    

Healthcare

    

All Other

    

Total

 

Segment assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Property owned

 

$
1,243,909

 

$
337,920

 

$
99,642

 

$
1,681,471

 

Less accumulated depreciation

 

 
(209,156)

 

 
(83,558)

 

 
(20,175)

 

 
(312,889)

 

Total property owned

 

$
1,034,753

 

$
254,362

 

$
79,467

 

$
1,368,582

 

Assets held for sale and assets from discontinued operations

 

 

 

 

 

 

 

 

 

 

 
220,537

 

Cash and cash equivalents

 

 

 

 

 

 

 

 

 

 

 
66,698

 

Other investments

 

 

 

 

 

 

 

 

 

 

 
50

 

Receivables and other assets

 

 

 

 

 

 

 

 

 

 

 
26,535

 

Development in progress

 

 

 

 

 

 

 

 

 

 

 
51,681

 

Unimproved land

 

 

 

 

 

 

 

 

 

 

 
20,939

 

Total Assets

 

 

 

 

 

 

 

 

 

 

$
1,755,022