v3.26.1
Reportable Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Reportable Segments
12.
Reportable Segments

Operating segments are defined as components of an enterprise that engage in business activities from which they may earn revenues and incur expenses and about which discrete financial information is available that is evaluated regularly by the chief operating decision maker. The chief operating decision maker, who is the Company’s chief executive officer, decides how resources are allocated and assesses performance on a recurring basis at least quarterly.

The Company’s primary business is the acquisition, development and management of multifamily residential properties, which includes the generation of rental and other related income through the leasing of apartment units to residents. The chief operating decision maker evaluates the Company’s operating performance of our apartment communities geographically by market on a same store basis and in total on a non-same store basis, which represent our operating segments.

The Company has aggregated its geographic same store operating segments into one reportable segment called same store. Management believes the properties in the same store reportable segment have similar economic characteristics, facilities, services and residents, which is in alignment with the required aggregation criteria. The following reflects the two reportable segments for the Company:

•
Same store primarily includes all properties acquired or completed that were stabilized (defined as having achieved 90% physical occupancy for three consecutive months) for all of the current and comparable periods presented.
•
Non-same store primarily includes all properties acquired during the current and prior year, any properties in lease-up and not stabilized for all of the current and comparable periods presented and any properties undergoing major renovations.

The Company has non-residential activities included in each of its reportable segments, which account for less than 4.0% of total revenues for the six months ended June 30, 2026 and 2025, respectively, and serve as an amenity for our residential residents. All revenues are from external customers and there is no customer who contributed 10% or more of the Company’s total revenues during the six months and quarters ended June 30, 2026 and 2025, respectively.

The primary financial measure for the Company’s reportable segments is net operating income (“NOI”), which represents rental income less: 1) property and maintenance expense and 2) real estate taxes and insurance expense (all as reflected in the accompanying consolidated statements of operations and comprehensive income). The Company believes that NOI is helpful to investors as a supplemental measure of its operating performance because it is a direct measure of the actual operating results of the Company’s apartment properties. Revenues for all leases are reflected on a straight-line basis in accordance with GAAP for the current and comparable periods.

The following table presents a reconciliation of net income per the consolidated statements of operations to NOI for the six months and quarters ended June 30, 2026 and 2025, respectively (amounts in thousands):

 

 

 

Six Months Ended June 30,

 

 

Quarter Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Net income

 

$

210,841

 

 

$

463,583

 

 

$

117,740

 

 

$

198,785

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Property management

 

 

73,290

 

 

 

70,602

 

 

 

38,149

 

 

 

34,786

 

General and administrative

 

 

33,505

 

 

 

36,786

 

 

 

16,640

 

 

 

18,531

 

Depreciation

 

 

493,875

 

 

 

497,635

 

 

 

246,379

 

 

 

240,889

 

Net (gain) loss on sales of real estate properties

 

 

16,776

 

 

 

(212,432

)

 

 

16,744

 

 

 

(58,280

)

Interest and other income

 

 

(15,192

)

 

 

(3,821

)

 

 

(12,954

)

 

 

(2,129

)

Other expenses

 

 

50,792

 

 

 

8,961

 

 

 

10,004

 

 

 

4,805

 

Interest:

 

 

 

 

 

 

 

 

 

 

 

 

Expense incurred, net

 

 

159,832

 

 

 

147,431

 

 

 

82,462

 

 

 

75,317

 

Amortization of deferred financing costs

 

 

4,290

 

 

 

4,247

 

 

 

2,145

 

 

 

2,103

 

Income and other tax expense (benefit)

 

 

833

 

 

 

829

 

 

 

411

 

 

 

407

 

(Income) loss from investments in
   unconsolidated entities

 

 

4,360

 

 

 

11,407

 

 

 

2,318

 

 

 

4,996

 

Net (gain) loss on sales of land parcels

 

 

—

 

 

 

78

 

 

 

—

 

 

 

11

 

Total NOI

 

$

1,033,202

 

 

$

1,025,306

 

 

$

520,038

 

 

$

520,221

 

 

The following tables present NOI from our rental real estate for the six months and quarters ended June 30, 2026 and 2025, respectively (amounts in thousands):

 

 

 

Six Months Ended June 30, 2026

 

 

Six Months Ended June 30, 2025

 

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

Same store (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

$

232,920

 

 

$

75,760

 

 

$

157,160

 

 

$

230,831

 

 

$

72,267

 

 

$

158,564

 

Orange County

 

 

65,230

 

 

 

14,743

 

 

 

50,487

 

 

 

63,811

 

 

 

14,174

 

 

 

49,637

 

San Diego

 

 

42,953

 

 

 

9,747

 

 

 

33,206

 

 

 

42,392

 

 

 

9,275

 

 

 

33,117

 

Subtotal - Southern California

 

 

341,103

 

 

 

100,250

 

 

 

240,853

 

 

 

337,034

 

 

 

95,716

 

 

 

241,318

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

241,171

 

 

 

67,020

 

 

 

174,151

 

 

 

226,105

 

 

 

67,347

 

 

 

158,758

 

New York

 

 

255,095

 

 

 

104,994

 

 

 

150,101

 

 

 

245,386

 

 

 

101,945

 

 

 

143,441

 

Washington, D.C.

 

 

219,603

 

 

 

71,567

 

 

 

148,036

 

 

 

217,225

 

 

 

68,689

 

 

 

148,536

 

Boston

 

 

162,902

 

 

 

52,073

 

 

 

110,829

 

 

 

160,645

 

 

 

48,863

 

 

 

111,782

 

Seattle

 

 

134,186

 

 

 

40,027

 

 

 

94,159

 

 

 

132,887

 

 

 

38,026

 

 

 

94,861

 

Denver

 

 

51,406

 

 

 

17,284

 

 

 

34,122

 

 

 

54,594

 

 

 

16,963

 

 

 

37,631

 

Atlanta

 

 

47,522

 

 

 

17,019

 

 

 

30,503

 

 

 

48,535

 

 

 

16,153

 

 

 

32,382

 

Dallas/Austin

 

 

37,287

 

 

 

15,912

 

 

 

21,375

 

 

 

38,022

 

 

 

16,499

 

 

 

21,523

 

Total same store

 

 

1,490,275

 

 

 

486,146

 

 

 

1,004,129

 

 

 

1,460,433

 

 

 

470,201

 

 

 

990,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-same store

 

 

67,564

 

 

 

27,708

 

 

 

39,856

 

 

 

24,395

 

 

 

11,057

 

 

 

13,338

 

Total reportable segments

 

 

1,557,839

 

 

 

513,854

 

 

 

1,043,985

 

 

 

1,484,828

 

 

 

481,258

 

 

 

1,003,570

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (2)

 

 

7,056

 

 

 

17,839

 

 

 

(10,783

)

 

 

44,809

 

 

 

23,073

 

 

 

21,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals

 

$

1,564,895

 

 

$

531,693

 

 

$

1,033,202

 

 

$

1,529,637

 

 

$

504,331

 

 

$

1,025,306

 

 

(1)
For the six months ended June 30, 2026 and 2025, same store represented 78,385 apartment units.
(2)
Other includes development, other corporate operations and operations prior to disposition for properties sold.

 

 

 

Quarter Ended June 30, 2026

 

 

Quarter Ended June 30, 2025

 

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

 

Rental
Income

 

 

Operating
Expenses

 

 

NOI

 

Same store (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Los Angeles

 

$

116,796

 

 

$

37,427

 

 

$

79,369

 

 

$

115,731

 

 

$

35,725

 

 

$

80,006

 

Orange County

 

 

32,724

 

 

 

7,389

 

 

 

25,335

 

 

 

31,964

 

 

 

6,940

 

 

 

25,024

 

San Diego

 

 

21,576

 

 

 

4,963

 

 

 

16,613

 

 

 

21,287

 

 

 

4,605

 

 

 

16,682

 

Subtotal - Southern California

 

 

171,096

 

 

 

49,779

 

 

 

121,317

 

 

 

168,982

 

 

 

47,270

 

 

 

121,712

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Francisco

 

 

121,811

 

 

 

32,076

 

 

 

89,735

 

 

 

113,781

 

 

 

32,930

 

 

 

80,851

 

New York

 

 

127,934

 

 

 

52,167

 

 

 

75,767

 

 

 

123,589

 

 

 

50,293

 

 

 

73,296

 

Washington, D.C.

 

 

109,975

 

 

 

35,147

 

 

 

74,828

 

 

 

109,392

 

 

 

33,949

 

 

 

75,443

 

Boston

 

 

81,827

 

 

 

25,076

 

 

 

56,751

 

 

 

80,924

 

 

 

23,708

 

 

 

57,216

 

Seattle

 

 

67,134

 

 

 

20,046

 

 

 

47,088

 

 

 

66,642

 

 

 

19,263

 

 

 

47,379

 

Denver

 

 

27,215

 

 

 

9,145

 

 

 

18,070

 

 

 

29,092

 

 

 

9,072

 

 

 

20,020

 

Atlanta

 

 

23,767

 

 

 

8,482

 

 

 

15,285

 

 

 

23,989

 

 

 

8,138

 

 

 

15,851

 

Dallas/Austin

 

 

18,658

 

 

 

8,010

 

 

 

10,648

 

 

 

19,135

 

 

 

8,320

 

 

 

10,815

 

Total same store

 

 

749,417

 

 

 

239,928

 

 

 

509,489

 

 

 

735,526

 

 

 

232,943

 

 

 

502,583

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-same store

 

 

32,947

 

 

 

13,417

 

 

 

19,530

 

 

 

12,301

 

 

 

5,230

 

 

 

7,071

 

Total reportable segments

 

 

782,364

 

 

 

253,345

 

 

 

529,019

 

 

 

747,827

 

 

 

238,173

 

 

 

509,654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (2)

 

 

2,685

 

 

 

11,666

 

 

 

(8,981

)

 

 

21,000

 

 

 

10,433

 

 

 

10,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Totals

 

$

785,049

 

 

$

265,011

 

 

$

520,038

 

 

$

768,827

 

 

$

248,606

 

 

$

520,221

 

 

(1)
For the quarters ended June 30, 2026 and 2025, same store represented 78,612 apartment units.
(2)
Other includes development, other corporate operations and operations prior to disposition for properties sold.

 

The following tables present reconciliations of operating expenses for each reportable segment for the six months and quarters ended June 30, 2026 and 2025, respectively (amounts in thousands):

 

 

 

Six Months Ended June 30, 2026

 

 

Six Months Ended June 30, 2025

 

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Total

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Total

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate taxes

 

$

194,352

 

 

$

10,290

 

 

$

204,642

 

 

$

190,359

 

 

$

3,068

 

 

$

193,427

 

On-site payroll

 

 

89,279

 

 

 

5,318

 

 

 

94,597

 

 

 

87,801

 

 

 

2,112

 

 

 

89,913

 

Utilities

 

 

80,328

 

 

 

3,839

 

 

 

84,167

 

 

 

74,349

 

 

 

1,870

 

 

 

76,219

 

Repairs and maintenance

 

 

66,105

 

 

 

4,315

 

 

 

70,420

 

 

 

63,361

 

 

 

1,760

 

 

 

65,121

 

Other (2)

 

 

56,082

 

 

 

3,946

 

 

 

60,028

 

 

 

54,331

 

 

 

2,247

 

 

 

56,578

 

Total

 

$

486,146

 

 

$

27,708

 

 

$

513,854

 

 

$

470,201

 

 

$

11,057

 

 

$

481,258

 

 

(1)
For the six months ended June 30, 2026 and 2025, same store represented 78,385 apartment units.
(2)
Other operating expenses for each reportable segment includes insurance, leasing and advertising and other on-site operating expenses.

 

 

 

Quarter Ended June 30, 2026

 

 

Quarter Ended June 30, 2025

 

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Total

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Total

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate taxes

 

$

96,632

 

 

$

5,037

 

 

$

101,669

 

 

$

95,437

 

 

$

1,477

 

 

$

96,914

 

On-site payroll

 

 

45,024

 

 

 

2,579

 

 

 

47,603

 

 

 

43,655

 

 

 

953

 

 

 

44,608

 

Utilities

 

 

37,911

 

 

 

1,678

 

 

 

39,589

 

 

 

34,577

 

 

 

858

 

 

 

35,435

 

Repairs and maintenance

 

 

34,056

 

 

 

2,190

 

 

 

36,246

 

 

 

33,505

 

 

 

841

 

 

 

34,346

 

Other (2)

 

 

26,305

 

 

 

1,933

 

 

 

28,238

 

 

 

25,769

 

 

 

1,101

 

 

 

26,870

 

Total

 

$

239,928

 

 

$

13,417

 

 

$

253,345

 

 

$

232,943

 

 

$

5,230

 

 

$

238,173

 

 

(1)
For the quarters ended June 30, 2026 and 2025, same store represented 78,612 apartment units.
(2)
Other operating expenses for each reportable segment includes insurance, leasing and advertising and other on-site operating expenses.

 

The following table presents a reconciliation of total assets and capital expenditures as of and for the six months ended June 30, 2026 (amounts in thousands):

 

 

 

June 30, 2026

 

 

 

 

Same Store (1)

 

 

Non-Same Store

 

 

Other (2)

 

 

Total

 

 

Total assets

 

$

17,833,984

 

 

$

1,844,005

 

 

$

597,588

 

 

$

20,275,577

 

 

Capital expenditures

 

$

146,109

 

 

$

14,081

 

 

$

138

 

 

$

160,328

 

 

 

(1)
For the six months ended June 30, 2026, same store represented 78,385 apartment units.
(2)
Other includes development, other corporate operations and capital expenditures for properties sold.