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Segment Reporting
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Reporting

Note 12 – Segment Reporting

 

We identify our operating segments based on the way we organize and evaluate our business. As a result of the placement of Aster & Links in service and the commencement of operations during the year ended December 31, 2024, we have revised our reportable segments to include two distinct segments as follows:

 

●Commercial Segment — which includes properties such as office, retail centers, and warehouses (the “Commercial Segment”). For reporting purposes, we aggregate these asset types into the Commercial Segment given their similar characteristics in property management and leasing.
   
●Mixed-use Segment — which includes properties that blend both residential and retail components within a single real estate asset (the “Mixed-use Segment”). For reporting purposes, we aggregate these business components into the Mixed-use Segment due to their functional integration and the fact that they are evaluated as a unified asset.

 

 

Our Chief Executive Officer is our Chief Operating Decision Maker (“CODM”). Our CODM reviews financial information presented on an operating segment basis for purposes of allocating resources, making decisions and assessing financial performance.

 

We believe segment net operating income (loss) (“Segment NOI”) provides a useful measure of our performance of our business, as it reflects the core rental operations of our operating real estate. Segment NOI is calculated as total revenues, less property expenses, excluding corporate level items, such as management fees incurred to our Manager (Note 4 – Related Party Arrangements), depreciation and amortization, general and administrative expenses, interest expense, and other non-operating items.

 

The following table details the results of Segment NOI, reconciled to our consolidated statement of operations for the years ended December 31, 2024, and 2023 (amounts in thousands):

 

   Commercial Segment   Mixed-use Segment   Total   Commercial Segment   Mixed-use Segment   Total 
   Year Ended December 31, 2024   Year Ended December 31, 2023 
   Commercial Segment   Mixed-use Segment   Total   Commercial Segment   Mixed-use Segment   Total 
Segment NOI:                              
Rental revenue  $1,099   $1,576   $2,675   $1,769   $485   $2,254 
Property expenses   (1,145)   (2,989)   (4,134)   (730)   (756)   (1,486)
Total Segment NOI  $(46)  $(1,413)  $(1,459)  $1,039   $(271)  $768 
Non-segment items:                              
Management fees, included in Property expenses             (2,705)             (2,693)
General and administrative             (5,111)             (6,335)
Interest expense             (10,006)             — 
Depreciation and amortization             (4,215)             (2,067)
Impairment of real estate             (777)             (4,060)
Interest income             646              113 
Other expense             (228)             (87)
Loss before income taxes             (23,855)             (14,361)
Provision for income taxes             (1)             (1)
Net loss             (23,856)             (14,362)
Net loss attributable to noncontrolling interests             —              11 
Net loss attributable to Belpointe PREP, LLC          $(23,856)          $(14,351)

 

The following table details the significant expense categories by segment for the years ended December 31, 2024, and 2023 (amounts in thousands):

 

   Commercial Segment   Mixed-use Segment   Total   Commercial Segment   Mixed-use Segment   Total 
   Years Ended December 31, 
   2024   2023 
   Commercial Segment   Mixed-use Segment   Total   Commercial Segment   Mixed-use Segment   Total 
Property expenses:                              
Real estate taxes  $628   $423   $1,051   $406   $252   $658 
Management fees   45    812    857    44    65    109 
Repairs & maintenance   159    512    671    103    192    295 
Insurance   266    399    665    164    154    318 
Utilities   47    394    441    12    64    76 
Other property expenses   —    449    449    1    29    30 
Total property expenses  $1,145   $2,989   $4,134   $730   $756   $1,486 

 

The following table details our total assets by segment as of December 31, 2024, and 2023 (amounts in thousands):

           
   December 31, 
   2024   2023 
Commercial Segment  $97,358   $98,711 
Mixed-use Segment   395,642    265,301 
Other non-segment assets (1)   24,591    18,105 
Total assets  $517,591   $382,117 

 

 

(1)Other non-segment assets primarily consist of cash and cash equivalents not attributable to specific reportable segments.