v3.26.1
Business Segments
 6 Months Ended
Jun. 30, 2026
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. Our Same Store operating segment includes communities that are owned and managed by us, and have reached a stabilized level of operations for at least one year. As of June 30, 2026, there are no communities that meet the classification of Other Real Estate as the previous two communities are now classified within Same Store.
The Co-Principal Executive Officers 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, 2026, our Real Estate Operations segment included 66 apartment communities with 24,353 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 benefit (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, 2026 (in thousands):
Real Estate OperationsCorporate and Other (1)Consolidated
Three Months Ended June 30, 2026:
Total revenues$186,042 $7,889 $193,931 
Property management and operating expenses 65,381 5,356 70,737 
Other operating expenses not allocated to segments (2)— 107,330 107,330 
Total operating expenses65,381 112,686 178,067 
Proportionate property net operating income (loss)120,661 (104,797)15,864 
Other items included in income (loss) before income tax benefit (expense) (3)(6,136)(49,872)(56,008)
Income (loss) before income tax benefit (expense)$114,525 $(154,669)$(40,144)
Real Estate OperationsCorporate and Other (1)Consolidated
Six Months Ended June 30, 2026:
Total revenues$373,171 $14,442 $387,613 
Property management and operating expenses 127,556 13,607 141,163 
Other operating expenses not allocated to segments (2)— 203,891 203,891 
Total operating expenses127,556 217,498 345,054 
Proportionate property net operating income (loss)245,615 (203,056)42,559 
Other items included in income (loss) before income tax benefit (expense) (3)(6,136)(105,511)(111,647)
Income (loss) before income tax benefit (expense)$239,479 $(308,567)$(69,088)
Real Estate OperationsCorporate and Other (1)Consolidated
Three Months Ended June 30, 2025:
Total revenues$182,446 $18,031 $200,477 
Property management and operating expenses 63,430 6,684 70,114 
Other operating expenses not allocated to segments (2)— 94,918 94,918 
Total operating expenses63,430 101,602 165,032 
Proportionate property net operating income (loss)119,016 (83,571)35,445 
Other items included in income (loss) before income tax benefit (expense) (3)— 44,859 44,859 
Income (loss) before income tax benefit (expense)$119,016 $(38,712)$80,304 
Real Estate OperationsCorporate and Other (1)Consolidated
Six Months Ended June 30, 2025:
Total revenues$365,376 $38,573 $403,949 
Property management and operating expenses 123,396 17,272 140,668 
Other operating expenses not allocated to segments (2)— 188,557 188,557 
Total operating expenses123,396 205,829 329,225 
Proportionate property net operating income (loss)241,980 (167,256)74,724 
Other items included in income (loss) before income tax benefit (expense) (3)— 45,762 45,762 
Income (loss) before income tax benefit (expense)$241,980 $(121,494)$120,486 
(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, loss on impairment of real estate, loss on impairment of goodwill, gain (loss) on derivative instruments, net, and income (loss) from unconsolidated real estate partnerships.
Property management and operating expenses are comprised of operating expenses, property management expenses charged to the properties, 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 Real Estate Operations 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, 2026 (in thousands):
Real Estate Operations
Three Months EndedSix Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
Operating expenses (1)$34,706 $32,875 $66,949 $62,661 
Property management expense
5,179 5,192 10,393 10,140 
Real estate taxes
18,749 18,772 37,092 37,451 
Insurance
5,045 4,910 9,718 9,781 
Ground lease expense
1,702 1,681 3,404 3,363 
Property management and operating expenses
$65,381 $63,430 $127,556 $123,396 
(1)Includes onsite payroll, repairs and maintenance, software and technology expenses, marketing, expensed turnover costs, utility expenses, and other property-related operating expenses.