| NOI represents total revenues less total operating expenses, as reconciled to net income above. The Company considers NOI to be a meaningful non-GAAP financial measure for making decisions and assessing unlevered performance of its property types and markets, as it relates to total return on assets, as opposed to levered return on equity. As properties are considered for sale and acquisition based on NOI estimates and projections, the Company utilizes this measure to make investment decisions, as well as compare the performance of its assets to those of its peers. NOI should not be considered a substitute for net income, and the Company’s use of NOI may not be comparable to similarly titled measures used by other companies. The Company calculates NOI before any allocations to noncontrolling interests, as those interests do not affect the overall performance of the individual assets being measured and assessed. DEFINITION OF NET OPERATING INCOME (NOI) $ in thousands (unaudited) Information About Net Operating Income (NOI) RECONCILIATION OF NET INCOME (LOSS) TO NET OPERATING INCOME (NOI) 15 Corporate Presentation Q 2 2 0 2 2 Q 1 2 0 2 2 Multifamily Office / Corp Total Multifamily Office / Corp Total NET INCOME (LOSS) $44,677 ($8,027) $36,650 ($11,354) $6,827 ($4,527) DEDUCT: Real estate services income (896) –(896) (910) –(910) Interest and other investment loss (income) 59 130 189 1 157 158 Equity in (earnings) loss of unconsolidated joint ventures (2,638) –(2,638) 487 – 487 General & Administrative - property level (1,137) –(1,137) (688) –(688) Realized and unrealized (gains) losses on disposition –––––– (Gain) loss on disposition of developable land (55,125) –(55,125) –(2,623) (2,623) (Gain) loss on sale of investment in unconsolidated joint venture –––––– (Gain) loss from early extinguishment of debt, net 129 – 129 – 6,289 6,289 ADD: Real estate services expenses 2,873 47 2,920 2,328 35 2,363 General and administrative 1,819 9,201 11,020 1,416 17,765 19,181 Dead deal and transaction-related costs –––––– Depreciation and amortization 20,149 7,881 28,030 17,403 9,110 26,513 Interest expense 15,622 2,085 17,707 12,263 2,762 15,025 Property impairments –––––– Land impairments 3,900 – 3,900 2,932 – 2,932 NET OPERATING INCOME (NOI) $29,432 $11,317 $40,749 $23,878 $40,322 $64,200 |