v3.25.2
Business Segments
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Business Segments Business Segments
We have two operating segments, Same Store and Other Real Estate, which have been aggregated into one reportable segment, Real Estate Operations, as the Other Real Estate operating segment now includes only two properties, both of which were acquired in 2024. Our Same Store operating segment includes communities that are owned and managed by us, and have reached a stabilized level of operations.
The Co-Principal Executive Officers (“CPEO”) are our chief operating decision makers (“CODM”). The CODM uses proportionate property net operating income ("NOI") to assess the operating performance of our communities. Assets are not reviewed at a segment level, and are not used by the CODM to evaluate segment performance. During the quarter ended March 31, 2025, our CODM reevaluated the definition of proportionate property NOI to better align with how they view the business, and what information is deemed relevant to assess segment operating performance. These changes included updates to the classification, inclusion, or exclusion of certain revenues and expenses associated with property level reimbursements, corporate allocated expenses, and non-cash activity. Proportionate property NOI reflects our share of rental and other property revenues, less property management and operating expenses. Rental and other property revenues now include utility reimbursements, which were previously netted against utility expenses and included as a component of property management and operating expenses. Property management and operating expenses now include property management fees charged to the properties and cash ground lease expense, and excludes centralized property support services billed to the properties, but that the properties do not control.
As of June 30, 2025, our Real Estate Operations segment included 72 apartment communities with 26,420 apartment homes.
The following tables present the total revenues, property management and operating expenses, proportionate property net operating income (loss), and income (loss) before income tax expense of our segment 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 as of June 30, 2025 (in thousands):
Real Estate OperationsCorporate and Other (1)Consolidated
Three Months Ended June 30, 2025:
Total revenues$195,360 $5,117 $200,477 
Property management and operating expenses
67,688 2,426 70,114 
Other operating expenses not allocated to segments (2)— 94,918 94,918 
Total operating expenses67,688 97,344 165,032 
Proportionate property net operating income (loss)127,672 (92,227)35,445 
Other items included in income (loss) before income tax expense (3)— 44,859 44,859 
Income (loss) before income tax expense
$127,672 $(47,368)$80,304 
Real Estate OperationsCorporate and Other (1)Consolidated
Six Months Ended June 30, 2025:
Total revenues$391,263 $12,686 $403,949 
Property management and operating expenses
130,929 9,739 140,668 
Other operating expenses not allocated to segments (2)— 188,557 188,557 
Total operating expenses130,929 198,296 329,225 
Proportionate property net operating income (loss)260,334 (185,610)74,724 
Other items included in income (loss) before income tax expense (3)— 45,762 45,762 
Income (loss) before income tax expense
$260,334 $(139,848)$120,486 
Real Estate OperationsCorporate and Other (1)Consolidated
Three Months Ended June 30, 2024:
Total revenues$189,441 $10,932 $200,373 
Property management and operating expenses
64,618 2,982 67,600 
Other operating expenses not allocated to segments (2)— 98,484 98,484 
Total operating expenses64,618 101,466 166,084 
Proportionate property net operating income (loss)124,823 (90,534)34,289 
Other items included in income (loss) before income tax expense (3)— (215,955)(215,955)
Income (loss) before income tax expense
$124,823 $(306,489)$(181,666)
Real Estate OperationsCorporate and Other (1)Consolidated
Six Months Ended June 30, 2024:
Total revenues$376,148 $19,847 $395,995 
Property management and operating expenses
128,199 7,085 135,284 
Other operating expenses not allocated to segments (2)— 196,675 196,675 
Total operating expenses128,199 203,760 331,959 
Proportionate property net operating income (loss)247,949 (183,913)64,036 
Other items included in income (loss) before income tax expense (3)— (249,661)(249,661)
Income (loss) before income tax expense
$247,949 $(433,574)$(185,625)
(1)Represents adjustments to: (i) exclude our proportionate share of the results of unconsolidated apartment communities, which is excluded in the related consolidated amounts, (ii) include the noncontrolling interests in consolidated real estate partnerships’ proportionate share of the results of communities, which is included in the related consolidated amounts, (iii) include non-cash adjustments and reclassify certain amounts between line items, (iv) include the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any, (v) include property management revenues, which are not part of our segment performance measure, property management expenses and casualty gains and losses, which are included in consolidated property management and operating expenses and are not part of our segment performance measure, and (vi) include the depreciation of capitalized costs of non-real estate assets.
(2)Includes depreciation and amortization, general and administrative expenses, and other expenses, net.
(3)Includes interest income, interest expense, loss on extinguishment of debt, gain on dispositions of real estate, net, loss from unconsolidated real estate partnerships, (loss) gain on derivative instruments, net, and merger-related costs.
Property management and operating expenses are comprised of operating expenses, property management expense charged to the property, real estate taxes, insurance, and ground lease expense. The following table presents total property management and operating expenses, by type, that has been allocated to our segment 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 as of June 30, 2025 (in thousands):
Three months ended June 30, 2025:Six months ended June 30, 2025:Three months ended June 30, 2024:Six months ended June 30, 2024:
Real Estate OperationsReal Estate OperationsReal Estate OperationsReal Estate Operations
Operating expenses (1)$34,045 $64,612 $32,838 $63,047 
Property management expense
5,552 10,861 5,679 12,776 
Real estate taxes
21,342 42,021 20,046 40,369 
Insurance
5,068 10,073 4,401 8,719 
Ground lease expense
1,681 3,362 1,654 3,288 
Property management and operating expenses
$67,688 $130,929 $64,618 $128,199 
(1)Includes onsite payroll, repairs and maintenance, software and technology expenses, marketing, expensed turnover costs, utility expenses, and other property related operating expenses.