| Business Segments | Note 9 — Business Segments We have two segments: Same Store and Other Real Estate. Our Same Store segment includes communities that: (i) are owned and managed by AIR, and (ii) had reached a stabilized level of operations. Our Other Real Estate segment includes the five properties that were acquired in 2021 and four communities that we expect to sell or lease to a third party, but do not yet meet the criteria to be classified as held for sale. Our chief operating decision maker (“CODM”) uses proportionate property net operating income (“NOI”) to assess the operating performance of our communities. Proportionate property NOI reflects our share of rental and other property revenues, excluding utility reimbursements, less direct property operating expenses, net of utility reimbursements. In our condensed consolidated statements of operations, utility reimbursements are included in rental and other property revenues in accordance with GAAP. As of March 31, 2022, our Same Store segment included 64 apartment communities with 22,020 apartment homes, our Other Real Estate segment included nine apartment communities with 2,499 apartment homes, and three apartment communities with 559 apartment homes were classified as held for sale. The following tables present the total revenues, property operating expenses, proportionate property net operating income, and income before income tax benefit (expense) of our segments on a proportionate basis. To reflect how the CODM evaluates the business, prior period segment information has been recast to conform with our reportable segment composition of March 31, 2022 (in thousands):
Same Other Proportionate Corporate and Consolidated
Three months ended March 31, 2022:
Total revenues $ 138,108 $ 15,644 $ 19,781 $ 7,945 $ 181,478
Property operating expenses 37,234 6,334 10,381 9,287 63,236
Other operating expenses not allocated to segments (3) — — — 95,164 95,164
Total operating expenses 37,234 6,334 10,381 104,451 158,400
Proportionate property net operating income 100,874 9,310 9,400 ( 96,506 ) 23,078
Other items included in income before income tax benefit (4) — — — 377,727 377,727
Income before income tax benefit $ 100,874 $ 9,310 $ 9,400 $ 281,221 $ 400,805
Same Other Proportionate Corporate and Consolidated
Three months ended March 31, 2021:
Total revenues $ 133,558 $ 1,914 $ 19,308 $ 21,633 $ 176,413
Property operating expenses 37,901 1,364 9,849 15,503 64,617
Other operating expenses not allocated to segments (3) — — — 82,570 82,570
Total operating expenses 37,901 1,364 9,849 98,073 147,187
Proportionate property net operating income 95,657 550 9,459 ( 76,440 ) 29,226
Other items included in income before income tax expense (4) — — — 62,969 62,969
Income before income tax expense $ 95,657 $ 550 $ 9,459 $ ( 13,471 ) $ 92,195 (1) Represents adjustments for third-party share of unconsolidated apartment communities and the noncontrolling interests in consolidated real estate partnerships’ share of the results of communities in our segments, which are included in the related consolidated amounts but excluded from proportionate property NOI for our segment evaluation. Also includes the reclassification of utility reimbursements from revenues to property operating expenses for the purpose of evaluating segment results. Utility reimbursements are included in rental and other property revenues in our condensed consolidated statements of operations prepared in accordance with GAAP. (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 revenues, which are not part of our segment performance measure and 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) Includes depreciation and amortization, general and administrative expenses, and other expenses, net, and may also include provision for real estate impairment loss and write-offs of deferred leasing commissions, which are not included in our measure of segment performance. (4) Includes gain on derecognition of leased properties and dispositions of real estate, interest income, including interest income related to the leased properties, interest expense, and loss on extinguishment of debt. The assets of our segments and the consolidated assets not allocated to our segments were as follows (in thousands):
March 31, 2022 December 31, 2021
Same Store $ 3,974,518 $ 3,962,175
Other Real Estate 753,452 799,012
Corporate and other assets (1) 1,574,886 1,679,173
Total consolidated assets $ 6,302,856 $ 6,440,360 (1) Includes the assets not allocated to our segments including: (i) corporate assets; (ii) our note receivable from Aimco; (iii) our mezzanine loan investment; and (iv) assets of leased apartment communities, sold, or classified as held for sale as of March 31, 2022 . For the three months ended March 31, 2022 and 2021, capital additions related to our segments were as follows (in thousands):
2022 2021
Same Store $ 29,817 $ 19,417
Other Real Estate 7,286 251
Total capital additions $ 37,103 $ 19,668 |
