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Note 10 - Segment Reporting
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [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, 2025, 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, 2025.

 

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, 2026 and 2025, and reconciles NOI to Net income 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, 2026.

 

 

 

For the Three Months Ended June 30,

 

 

For the Six Months Ended June 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue:

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Same-store (1) rental and other property revenue

 

 $

157,076

 

 

 $

155,612

 

 

 $

313,171

 

 

 $

309,616

 

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

 

 

10,050

 

 

 

6,279

 

 

 

19,168

 

 

 

13,180

 

Total reportable segments revenue

 

 

167,126

 

 

 

161,891

 

 

 

332,339

 

 

 

322,796

 

Other income

 

 

115

 

 

 

297

 

 

 

224

 

 

 

635

 

Total consolidated revenue

 

 

167,241

 

 

 

162,188

 

 

 

332,563

 

 

 

323,431

 

Operating Expenses:

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Same-store

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Real estate taxes

 

 

18,444

 

 

 

18,691

 

 

 

38,193

 

 

 

38,069

 

Property insurance

 

 

3,010

 

 

 

3,548

 

 

 

6,289

 

 

 

7,448

 

Personnel expenses

 

 

12,854

 

 

 

12,376

 

 

 

25,662

 

 

 

24,325

 

Utilities

 

 

7,615

 

 

 

7,407

 

 

 

15,830

 

 

 

15,194

 

Repairs and maintenance

 

 

5,883

 

 

 

5,822

 

 

 

10,059

 

 

 

10,167

 

Contract services

 

 

6,578

 

 

 

6,139

 

 

 

12,739

 

 

 

11,929

 

Advertising expenses

 

 

2,600

 

 

 

2,686

 

 

 

4,462

 

 

 

4,620

 

Other property operating expenses (2)

 

 

1,659

 

 

 

1,690

 

 

 

3,248

 

 

 

3,314

 

Total same-store operating expenses

 

 

58,643

 

 

 

58,359

 

 

 

116,482

 

 

 

115,066

 

Non same-store

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Total non same-store operating expenses

 

 

4,732

 

 

 

2,576

 

 

 

9,017

 

 

 

5,132

 

Total reportable segments operating expenses

 

 

63,375

 

 

 

60,935

 

 

 

125,499

 

 

 

120,198

 

Net Operating Income:

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Same-store NOI

 

 

98,433

 

 

 

97,253

 

 

 

196,689

 

 

 

194,550

 

Non same-store NOI

 

 

5,318

 

 

 

3,703

 

 

 

10,151

 

 

 

8,048

 

Total reportable segments NOI

 

 

103,751

 

 

 

100,956

 

 

 

206,840

 

 

 

202,598

 

Adjustments:

 

 

 

​

 

 

 

​

 

 

 

​

 

 

 

​

Other revenue

 

 

115

 

 

 

297

 

 

 

224

 

 

 

635

 

Property management expenses

 

 

(7,931

)

 

 

(7,715

)

 

 

(16,168

)

 

 

(15,541

)

General and administrative expenses

 

 

(5,685

)

 

 

(5,982

)

 

 

(14,199

)

 

 

(14,388

)

Depreciation and amortization

 

 

(64,861

)

 

 

(59,794

)

 

 

(129,494

)

 

 

(118,521

)

Casualty gains (losses), net

 

 

553

 

 

 

(255

)

 

 

476

 

 

 

(139

)

Interest expense

 

 

(21,583

)

 

 

(18,773

)

 

 

(42,315

)

 

 

(38,121

)

Gain on sale of real estate assets, net

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,496

 

Loss on extinguishment of debt

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(67

)

Other loss

 

 

(105

)

 

 

—

 

 

 

(191

)

 

 

(103

)

Loss from investments in unconsolidated real estate entities

 

 

(836

)

 

 

(562

)

 

 

(1,883

)

 

 

(1,151

)

Net income

 

 $

3,418

 

 

 $

8,172

 

 

 $

3,290

 

 

 $

16,698

 

 

 

 (1) Same-store portfolio consists of 109 properties, which represent 31,735 units. Non same-store portfolio consists of 7 properties, which represent 2,163 units.

 

(2)

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