Business Segments (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of Information for Reportable Segments

To reflect how the CODM evaluates the business, prior period segment information has been recast to conform with our reportable segment composition as of March 31, 2025 (in thousands):


	Same Store		Other Real Estate		Proportionate and Other Adjustments (1)		Corporate and Amounts Not Allocated to Segments (2)		Consolidated
Three Months Ended March 31, 2025:
Total revenues	$	197,306	$	3,573	$	(4,701)	$	7,294	$	203,472
Property management and operating expenses	63,862		1,330		(6,900)		12,262		70,554
Other operating expenses not allocated to segments (3)	—		—		—		93,639		93,639
Total operating expenses	63,862		1,330		(6,900)		105,901		164,193
Proportionate property net operating income (loss)	133,444		2,243		2,199		(98,607)		39,279
Other items included in income (loss) before income tax expense (4)	—		—		—		903		903
Income (loss) before income tax expense	$	133,444	$	2,243	$	2,199	$	(97,704)	$	40,182


	Same Store		Other Real Estate		Proportionate and Other Adjustments (1)		Corporate and Amounts Not Allocated to Segments (2)		Consolidated
Three Months Ended March 31, 2024:
Total revenues	$	190,722	$	888	$	(2,026)	$	6,038	$	195,622
Property management and operating expenses	64,984		483		(8,958)		11,230		67,739
Other operating expenses not allocated to segments (3)	—		—		—		98,136		98,136
Total operating expenses	64,984		483		(8,958)		109,366		165,875
Proportionate property net operating income (loss)	125,738		405		6,932		(103,328)		29,747
Other items included in income (loss) before income tax expense (4)	—		—		—		(33,706)		(33,706)
Income (loss) before income tax expense	$	125,738	$	405	$	6,932	$	(137,034)	$	(3,959)

(1)Represents adjustments to: (i) exclude AIR Operating Partnership’s 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, and (iii) include non-cash adjustments and reclassify certain amounts between line items.

(2)Includes: (i) the operating results of apartment communities sold during the periods shown or held for sale at the end of the period, if any, (ii) 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 (iii) the depreciation of capitalized costs of non-real estate assets.

(3)Includes depreciation and amortization, general and administrative expenses, and other expenses, net, and may also include write-offs of deferred leasing commissions, which are not included in our measure of segment performance.

(4)Includes interest income, interest expense, loss on extinguishment of debt in conjunction with a property sale, gain on dispositions of real estate, net, loss from unconsolidated real estate partnerships, (loss) gain on derivative instruments, net, and merger-related costs.

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The following table presents total property management and operating expenses, by type, that has been allocated to 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 as of March 31, 2025 (in thousands):


	Three Months Ended March 31, 2025				Three Months Ended March 31, 2024
	Same Store		Other Real Estate		Same Store		Other Real Estate
Operating expenses (1)	$	30,859	$	725	$	30,799	$	288
Property management expense	5,345		102		7,277		28
Real estate taxes	20,927		451		20,874		143
Insurance	5,050		52		4,400		24
Ground lease expense	1,681		—		1,634		—
Property management and operating expenses	$	63,862	$	1,330	$	64,984	$	483

(1)Includes onsite payroll, repairs and maintenance, software and technology expenses, marketing, expensed turnover costs, utility expenses, and other property related operating expenses.

Schedule of Reconciliation of Assets from Segment to Consolidated

The assets of our segments and the consolidated assets not allocated to our segments were as follows (in thousands):


	March 31, 2025		December 31, 2024
Same Store	$	5,363,711	$	5,389,109
Other Real Estate	86,935		87,729
Corporate and other assets (1)	959,836		1,098,704
Total consolidated assets	$	6,410,482	$	6,575,542

(1)Includes the assets not allocated to our segments including: (i) corporate assets and (ii) properties sold or classified as held for sale.

Schedule of Capital Additions Related to Segments

For the three months ended March 31, 2025 and 2024, capital additions related to our segments were as follows (in thousands):


	2025		2024
Same Store	$	25,923	$	26,959
Other Real Estate	182		192
Total capital additions	$	26,105	$	27,151

Apartment Income REIT, L.P. 10-Q