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Note 10 - Segment Reporting
 9 Months Ended
Sep. 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 nine months ended September 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 September 30, 2025.

 

  

For the Three Months Ended September 30,

  

For the Nine Months Ended September 30,

 
  

2025

  

2024

  

2025

  

2024

 

Revenue:

                

Same store rental and other property revenue

 $150,573  $148,430  $445,542  $438,359 

Non-same store rental and other property revenue

  16,315   11,430   44,142   39,937 

Total reportable segments revenue

  166,888   159,860   489,684   478,296 

Operating Expenses:

                

Same store

                

Real estate taxes

  16,280   16,129   52,274   52,294 

Property insurance

  3,107   3,713   10,203   11,455 

Personnel expenses

  12,954   12,739   36,341   36,493 

Utilities

  7,635   7,607   22,155   21,529 

Repairs and maintenance

  5,393   6,023   15,238   16,632 

Contract services

  5,788   5,616   17,113   16,136 

Advertising expenses

  2,455   2,226   6,842   5,753 

Other property operating expenses (1)

  1,571   1,537   4,755   4,717 

Total same store operating expenses

  55,183   55,590   164,921   165,009 

Non-same store

                

Total non-same store operating expenses

  6,516   4,948   16,976   16,384 

Total reportable segments operating expenses

  61,699   60,538   181,897   181,393 

Net Operating Income:

                

Same store NOI

  95,390   92,840   280,621   273,350 

Non-same store NOI

  9,799   6,482   27,166   23,553 

Total reportable segments NOI

  105,189   99,322   307,787   296,903 

Adjustments:

                

Other revenue

  250   275   885   776 

Property management expenses

  (7,891)  (7,379)  (23,433)  (22,544)

General and administrative expenses

  (4,905)  (4,765)  (19,293)  (19,389)

Depreciation and amortization

  (61,735)  (55,261)  (180,256)  (163,112)

Casualty losses

  (419)  (1,249)  (559)  (4,015)

Interest expense

  (20,455)  (18,308)  (58,575)  (56,371)

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

  (12,841)  688   (11,344)  11,066 

(Loss) gain on extinguishment of debt

  —   —   (67)  203 

Other loss

  (12)  —   (115)  (1)

Income (loss) from investments in unconsolidated real estate entities

  9,814   (703)  8,663   (2,382)

Net income

 $6,995  $12,620  $23,693  $41,134 

 

 

(1)

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