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SEGMENT INFORMATION
 6 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 10 – SEGMENT INFORMATION

 

The Company operates in three reportable segments: (i) Hotel Operations (the Hilton San Francisco Financial District and its five-level parking garage), (ii) Real Estate Operations (the multifamily and commercial rental portfolio), and (iii) Investment Transactions (investment of cash in marketable securities and other investments). The chief operating decision maker (“CODM”) is a group of senior executives who collectively use segment results to evaluate performance and allocate resources based on the information described below.

 

Segment results are evaluated using segment income (loss), which reflects revenues from external customers less segment operating expenses, including property operating expenses, utilities, real estate taxes, insurance and certain general and administrative expenses, as presented in the table below. Segment income (loss) excludes interest expense, depreciation and amortization, gain on sale of real estate, net gains (losses) from investments, gains (losses) on extinguishment of debt, and income taxes, which are reflected below segment income (loss) as reconciling items to consolidated income (loss). There are no intersegment revenues. “Corporate” consists primarily of unallocated corporate general and administrative costs and other items not allocated to the reportable segments.

 

All long-lived assets and revenues are attributable to operations in the United States.

  

As of and for the three months  Hotel   Real Estate   Investment         
ended December 31, 2025  Operations   Operations   Transactions   Corporate   Total 
Revenues  $12,661,000   $4,640,000   $-   $-   $17,301,000 
Property operating expenses   (9,208,000)   (1,114,000)   -    -    (10,322,000)
Utilities   (397,000)   (354,000)   -    -    (751,000)
Real estate taxes   (588,000)   (579,000)   -    -    (1,167,000)
Insurance   (234,000)   (372,000)   -    -    (606,000)
General and administrative   -    -    -    (740,000)   (740,000)
Segment income (loss)   2,234,000    2,221,000    -    (740,000)   3,715,000 
Interest expense - mortgage   (2,385,000)   (771,000)   -    -    (3,156,000)
Depreciation and amortization expense   (940,000)   (760,000)   -    -    (1,700,000)
Gain from sale of real estate        3,508,000              3,508,000 
Loss from investments   -    -    (340,000)   -    (340,000)
Income tax expense   -    -    -    (1,065,000)   (1,065,000)
Net (loss) income  $(1,091,000)  $4,198,000   $(340,000)  $(1,805,000)  $962,000 
Total assets  $48,969,000   $44,171,000   $926,000   $7,071,000   $101,137,000 

 

As of and for the three months  Hotel   Real Estate   Investment         
ended December 31, 2024  Operations   Operations   Transactions   Corporate   Total 
Revenues  $9,965,000   $4,476,000   $-   $-   $14,441,000 
Property operating expenses   (7,973,000)   (892,000)   -    -    (8,865,000)
Utilities   (432,000)   (337,000)   -    -    (769,000)
Real estate taxes   (429,000)   (565,000)   -    -    (994,000)
Insurance   (221,000)   (414,000)   -    -    (635,000)
General and administrative   -    -    -    (677,000)   (677,000)
Segment income (loss)   910,000    2,268,000    -    (677,000)   2,501,000 
Interest expense - mortgage   (2,845,000)   (685,000)   -    -    (3,530,000)
Depreciation and amortization expense   (903,000)   (745,000)   -    -    (1,648,000)
Loss from investments   -    -    (901,000)   -    (901,000)
Income tax expense   -    -    -    (119,000)   (119,000)
Net (loss) income  $(2,838,000)  $838,000   $(901,000)  $(796,000)  $(3,697,000)
Total assets  $44,777,000   $46,957,000   $5,657,000   $13,203,000   $110,594,000 

 

For the three months ended December 31, 2025, segment income increased to $3,715,000 from $2,501,000 for the three months ended December 31, 2024, reflecting improved results in Hotel Operations and relatively stable results in Real Estate Operations. Hotel Operations segment income increased to $2,234,000 from $910,000, while Real Estate Operations segment income was $2,221,000 compared to $2,268,000. Corporate expense increased to $740,000 from $677,000. Net income was $962,000 for the three months ended December 31, 2025, compared to net loss of $3,697,000 for the three months ended December 31, 2024, primarily reflecting a gain on sale of real estate of $3,508,000 in 2025 (none in 2024), a decrease in loss from investments to $340,000 from $901,000, and a decrease in mortgage interest expense to $3,156,000 from $3,530,000, partially offset by income tax expense of $1,065,000 in 2025 compared to $119,000 in 2024.

 

 

As of and for the six months  Hotel   Real Estate   Investment         
ended December 31, 2025  Operations   Operations   Transactions   Corporate   Total 
Revenues  $25,079,000   $10,135,000   $-   $-   $35,214,000 
Property operating expenses   (18,375,000)   (2,152,000)   -    -    (20,527,000)
Utilities   (943,000)   (676,000)   -    -    (1,619,000)
Real estate taxes   (1,080,000)   (1,153,000)   -    -    (2,233,000)
Insurance   (510,000)   (776,000)   -    -    (1,286,000)
General and administrative   -    -    -    (1,446,000)   (1,446,000)
Segment income (loss)   4,171,000    5,378,000    -    (1,446,000)   8,103,000 
Interest expense - mortgage   (4,878,000)   (1,536,000)   -    -    (6,414,000)
Depreciation and amortization expense   (1,839,000)   (1,517,000)   -    -    (3,356,000)
Gain from sale of real estate        3,508,000    -    -    3,508,000 
Loss from investments   -    -    (499,000)   -    (499,000)
Income tax expense   -    -    -    (1,539,000)   (1,539,000)
Net (loss) income  $(2,546,000)  $5,833,000   $(499,000)  $(2,985,000)  $(197,000)
Total assets  $48,969,000   $44,171,000   $926,000   $7,071,000   $101,137,000 

 

As of and for the six months  Hotel   Real Estate   Investment         
ended December 31, 2024  Operations   Operations   Transactions   Corporate   Total 
Revenues  $21,785,000   $9,562,000   $-   $-   $31,347,000 
Property operating expenses   (15,452,000)   (2,003,000)   -    -    (17,455,000)
Utilities   (1,017,000)   (679,000)   -    -    (1,696,000)
Real estate taxes   (956,000)   (1,108,000)   -    -    (2,064,000)
Insurance   (422,000)   (875,000)   -    -    (1,297,000)
General and administrative   -    -    -    (1,537,000)   (1,537,000)
Segment income (loss)   3,938,000    4,897,000    -    (1,537,000)   7,298,000 
Interest expense - mortgage   (5,669,000)   (1,375,000)   -    -    (7,044,000)
Depreciation and amortization expense   (1,832,000)   (1,484,000)   -    -    (3,316,000)
Loss from investments   -    -    (1,009,000)   -    (1,009,000)
Income tax expense   -    -    -    (478,000)   (478,000)
Net (loss) income  $(3,563,000)  $2,038,000   $(1,009,000)  $(2,015,000)  $(4,549,000)
Total assets  $44,777,000   $46,957,000   $5,657,000   $13,203,000   $110,594,000 

 

For the six months ended December 31, 2025, segment income increased to $8,103,000 from $7,298,000 for the six months ended December 31, 2024. Hotel Operations segment income increased to $4,171,000 from $3,938,000, and Real Estate Operations segment income increased to $5,378,000 from $4,897,000. Corporate expense was $1,446,000 compared to $1,537,000. Net loss was $197,000 for the six months ended December 31, 2025, compared to net loss of $4,549,000 for the six months ended December 31, 2024, primarily reflecting a gain on sale of real estate of $3,508,000 in 2025 (none in 2024), a decrease in loss from investments to $499,000 from $1,009,000, and a decrease in mortgage interest expense to $6,414,000 from $7,044,000, partially offset by income tax expense of $1,539,000 in 2025 compared to $478,000 in 2024.