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Note 10 - Segment Reporting
 6 Months Ended
Jun. 30, 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.

 

 

•

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 and six months ended June 30, 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 June 30, 2025.

 

  

For the Three Months Ended

  

For the Six Months Ended

 
  June 30,  June 30, 
  

2025

  

2024

  

2025

  

2024

 

Revenue:

                

Same store rental and other property revenue

 $148,113  $146,609  $294,969  $289,929 

Non-same store rental and other property revenue

  13,778   11,495   27,827   28,507 

Total reportable segments revenue

  161,891   158,104   322,796   318,436 

Operating Expenses:

                

Same store

                

Real estate taxes

  17,655   17,887   35,994   36,166 

Property insurance

  3,381   3,808   7,096   7,742 

Personnel expenses

  11,891   12,172   23,387   23,754 

Utilities

  7,063   6,843   14,520   13,922 

Repairs and maintenance

  5,659   6,065   9,845   10,609 

Contract services

  5,825   5,643   11,325   10,520 

Advertising expenses

  2,552   1,989   4,387   3,527 

Other property operating expenses (1)

  1,620   1,584   3,184   3,180 

Total same store operating expenses

  55,646   55,991   109,738   109,420 

Non-same store

                

Total non-same store operating expenses

  5,289   4,892   10,460   11,434 

Total reportable segments operating expenses

  60,935   60,883   120,198   120,854 

Net Operating Income:

                

Same store NOI

  92,467   90,618   185,231   180,509 

Non-same store NOI

  8,489   6,603   17,367   17,073 

Total reportable segments NOI

  100,956   97,221   202,598   197,582 

Adjustments:

                

Other revenue

  297   298   635   501 

Property management expenses

  (7,715)  (7,666)  (15,541)  (15,165)

General and administrative expenses

  (5,982)  (6,244)  (14,388)  (14,624)

Depreciation and amortization

  (59,794)  (54,127)  (118,521)  (107,850)

Casualty losses

  (255)  (465)  (139)  (2,767)

Interest expense

  (18,773)  (17,460)  (38,121)  (38,063)

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

  —   (152)  1,496   10,378 

(Loss) gain on extinguishment of debt

  —   —   (67)  203 

Other loss

  —   —   (103)  (1)

Loss from investments in unconsolidated real estate entities

  (562)  (850)  (1,151)  (1,679)

Net income

 $8,172  $10,555  $16,698  $28,515 

 

 

(1)

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