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Note 10 - Segment Reporting
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 10: Segment Reporting

 

Each of our multifamily properties is considered an operating segment that earns revenues through the leasing of apartment homes and incurs associated expenses. We aggregate our multifamily properties on a same-store and non same-store basis, and as a result, have identified two reportable segments.

 

 

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Same-Store includes properties that were owned and not a development property as of January 1, 2024, and that have not been sold or identified as held for sale.

 

 

•

Non Same-Store includes properties that did not meet the definition of a same-store property as of January 1, 2024.

 

GAAP guidance requires that segment disclosures present the measures used by the Chief Operating Decision Maker (“CODM”) to decide how to allocate resources and for purposes of assessing segment performance. The CODM uses net operating income (“NOI”) as the primary financial measure to evaluate operating results of our multifamily properties, including analyses compared to prior periods and budgeted operating results. NOI is defined as total property revenues less total property operating expenses, excluding interest expenses, depreciation and amortization, casualty related costs and gains, property management expenses, general and administrative expense and net gains on sale of assets.

 

Segment assets consist of real estate held for investment, real estate held for sale and investments in real estate under development. Non-segment assets consist of assets in the Company’s other non-reportable segments and corporate non-segment assets, which are comprised of cash and cash equivalents, restricted cash, investments in unconsolidated real estate entities, other assets, derivative assets and intangible assets. Reportable segment asset information is not provided to the CODM as the CODM does not use segment asset information to evaluate the business and allocate resources.

 

The following table details NOI for our two reportable segments for the three months ended March 31, 2025 and 2024, and reconciles NOI to net income (loss) on the condensed consolidated statements of operations. The segments are classified as same-store or non same-store based on the individual property’s status as of March 31, 2025.

 

  

For the Three Months Ended March 31,

 
  

2025

  

2024

 

Revenue:

        

Same store rental and other property revenue

 $151,724  $148,326 

Non-same store rental and other property revenue

  9,181   12,005 

Total reportable segments revenue

  160,905   160,331 

Operating Expenses:

        

Same store

        

Real estate taxes

  18,834   18,678 

Property insurance

  3,870   4,096 

Personnel expenses

  11,887   11,998 

Utilities

  7,851   7,423 

Repairs and maintenance

  4,421   4,747 

Contract services

  5,697   5,061 

Advertising expenses

  1,906   1,588 

Other property operating expenses (1)

  1,663   1,673 

Total same store operating expenses

  56,129   55,264 

Non-same store

        

Total non-same store operating expenses

  3,134   4,707 

Total reportable segments operating expenses

  59,263   59,971 

Net Operating Income:

        

Same store NOI

  95,595   93,062 

Non-same store NOI

  6,047   7,298 

Total reportable segments NOI

  101,642   100,360 

Adjustments:

        

Other revenue

  338   203 

Property management expenses

  (7,826)  (7,499)

General and administrative expenses

  (8,406)  (8,381)

Depreciation and amortization

  (58,725)  (53,721)

Casualty gains (losses), net

  115   (2,301)

Interest expense

  (19,348)  (20,603)

(Loss on impairment) gain on sale of real estate assets, net

  1,496   10,530 

Gain (loss) on extinguishment of debt

  (67)  203 

Other (loss) income

  (103)  (1)

Gain (loss) from investments in unconsolidated real estate entities

  (590)  (829)

Net income (loss)

 $8,526  $17,961 

 

 

(1)

Other property operating expenses includes property office, administrative and legal costs.