Segment Reporting
Segment information is prepared on the same basis that our chief operating decision maker (CODM) reviews information to assess performance and make resource allocation decisions. Our CODM is our CEO. We operate in two business segments: (i) the acquisition, development, ownership and management of office real estate and (ii) the acquisition, development, ownership and management of multifamily real estate. The services for our office segment primarily include rental of office space and other tenant services, including parking and storage space rental. The services for our multifamily segment include rental of apartments and other tenant services, including parking and storage space rental. Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources. Therefore, depreciation and amortization expense is not allocated among segments. General and administrative expenses and interest expense are not included in segment profit as our internal reporting addresses these items on a corporate level. The table below presents the operating activity of our reportable segments:
| | | | | | | | | | | | | | | | | |
| (In thousands) | Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Office Segment | | | | | |
| Total office revenues | $ | 805,516 | | | $ | 796,404 | | | $ | 829,945 | |
| Office expenses | (301,276) | | | (285,352) | | | (294,310) | |
| Office segment profit | $ | 504,240 | | | $ | 511,052 | | | $ | 535,635 | |
| | | | | |
| Multifamily Segment | | | | | |
| Total multifamily revenues | $ | 198,466 | | | $ | 190,074 | | | $ | 190,543 | |
| Multifamily expenses | (66,661) | | | (64,906) | | | (67,323) | |
| Multifamily segment profit | $ | 131,805 | | | $ | 125,168 | | | $ | 123,220 | |
| | | | | |
| Total profit from all segments | $ | 636,045 | | | $ | 636,220 | | | $ | 658,855 | |
The table below presents a reconciliation of the net income (loss) attributable to common stockholders to the total profit from all segments:
| | | | | | | | | | | | | | | | | |
| (In thousands) | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| | | | | |
| Net income (loss) attributable to common stockholders | $ | 16,267 | | | $ | 23,517 | | | $ | (42,706) | |
| Net loss attributable to noncontrolling interests | (27,697) | | | (15,929) | | | (33,134) | |
| Net (loss) income | (11,430) | | | 7,588 | | | (75,840) | |
| General and administrative expenses | 46,664 | | | 45,356 | | | 49,236 | |
| Depreciation and amortization | 398,932 | | | 384,048 | | | 459,949 | |
| Other income | (18,021) | | | (28,019) | | | (19,633) | |
| Other expenses | 437 | | | 398 | | | 1,032 | |
| (Income) loss from unconsolidated Fund | — | | | (2,593) | | | 34,643 | |
| Interest expense | 266,675 | | | 229,442 | | | 209,468 | |
| | | | | |
| | | | | |
| Gain from consolidation of JV | (47,212) | | | — | | | — | |
| Total profit from all segments | $ | 636,045 | | | $ | 636,220 | | | $ | 658,855 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.