v3.25.4
Note 11 - Segment Reporting
 12 Months Ended
Dec. 31, 2025
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

NOTE 11: 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. Individual operating results for each of our multifamily properties is reviewed and discrete financial information is available. Our multifamily properties have similar long-term economic characteristics and provide similar products and services to a similar class of residents. All operations are within the United States and no individual multifamily property comprises more than 10% of consolidated revenues or assets. 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.

 

 

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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. As a group, our executive officers, including the CEO, President and CFO, CAO, and EVP of Operations act as the CODM. The CODM manages and reviews our operations on both a property-by-property basis and same-store and non same-store basis and 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, net gains on sale of assets and restructuring costs.

 

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 years ended December 31, 2025, 2024 and 2023, and reconciles NOI to Net income (loss) on the consolidated statements of operations. The segments are classified as same-store or non same-store based on the individual property’s status as of December 31, 2025 for the years ended  December 31, 2025 and 2024 and at December 31, 2024 for the year ended December 31, 2023.

 

   For the Year Ended December 31, 
  

2025

  

2024

  

2023

 

Revenue:

            

Same-store(1) rental and other property revenue

 $595,601  $585,431  $585,277 

Non same-store(1) rental and other property revenue

  60,880   53,482   74,564 

Total reportable segments revenue

  656,481   638,913   659,841 

Other income

  1,215   1,122   1,142 

Total consolidated revenue

 $657,696  $640,035  $660,983 

Operating Expenses:

            

Same-store

            

Real estate taxes

  67,926   68,534   72,518 

Property insurance

  13,323   15,174   14,618 

Personnel expenses

  47,460   48,068   45,592 

Utilities

  29,720   28,923   28,296 

Repairs and maintenance

  18,836   18,872   20,122 

Contract services

  22,927   21,276   21,584 

Advertising expenses

  9,079   7,380   6,342 

Other property operating expenses (2)

  6,279   6,209   6,625 

Total same-store operating expenses

  215,550   214,436   215,697 

Non same-store

            

Total non same-store operating expenses

  23,607   21,152   28,633 

Total reportable segments operating expenses

  239,157   235,588   244,330 

Net Operating Income:

            

Same-store NOI

  380,051   370,995   369,580 

Non same-store NOI

  37,273   32,330   45,931 

Total reportable segments NOI

  417,324   403,325   415,511 

Adjustments:

            

Other revenue

  1,215   1,122   1,142 

Property management expenses

  (30,107)  (29,923)  (27,081)

General and administrative expenses

  (23,966)  (24,245)  (22,766)

Depreciation and amortization

  (243,241)  (220,854)  (218,968)

Casualty losses

  (1,314)  (3,935)  (925)

Interest expense

  (78,998)  (76,141)  (89,921)

Gain on sale (loss on impairment) of real estate assets, net

  6,147   (9,862)  (66,547)

(Loss) gain on extinguishment of debt

  (67)  200   (124)

Other loss

  (352)  (1)  (427)

Income (loss) from investments in unconsolidated real estate entities

  11,066   347   (4,488)

Restructuring costs

  —   —   (3,213)

Net income (loss)

 $57,707  $40,033  $(17,807)

 

 

(1)

Same-store portfolio consists of 105 properties, which represent 30,502 units. Non same-store portfolio consists of 9 properties, which represent 2,960 units.

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