8. SEGMENTS

The Company's reportable segments consist of the four types of commercial real estate properties for which the Company's decision-makers internally evaluate operating performance and financial results: Residential Properties, Industrial and Office Properties, Retail Properties and Self-Storage Properties; The Company also has certain corporate level activities including accounting, finance, legal administration and management information systems which are not considered separate operating segments.

The Company's chief operating decision maker evaluates the performance of its segments based upon net operating income. Net operating income is defined as operating revenues (rental income, tenant reimbursements and other property income) less property and related expenses (property expenses, real estate taxes, ground leases and provisions for bad debts) and excludes other non-property income and expenses, interest expense, depreciation and amortization, and general and administrative expenses. The accounting policies of the reportable segments are the same as those described in the Company's significant accounting policies. There is no intersegment activity.

The following tables reconcile the Company's segment activity to its results of operations and financial position as of September 30, 2014 and December 31, 2013 and for the three and nine months ended September 30, 2014 and 2013, respectively.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Industrial/Office Properties:
Rental income	$	3,122,423	$	2,638,194	$	8,368,703	$	7,848,551
Property and related expenses		1,277,080		963,919		3,418,279		2,764,489
Net operating income, as defined		1,845,343		1,674,275		4,950,424		5,084,062

Residential Properties:
Rental income		479,400		696,922		1,723,462		2,327,340
Property and related expenses		18,212		25,722		63,055		178,556
Net operating income, as defined		461,188		671,200		1,660,407		2,148,784

Retail Properties:
Rental income		649,649		614,979		1,921,338		2,255,351
Property and related expenses		228,010		234,942		657,814		622,246
Net operating income, as defined		421,639		380,037		1,263,524		1,633,105

Self-Storage Properties:
Rental income		833,648		839,272		2,543,326		2,383,990
Property and related expenses		461,503		466,697		1,255,798		1,276,518
Net operating income, as defined		372,145		372,575		1,287,528		1,107,472

Reconciliation to Net Loss Available to Common Shareholders:
Total net operating income, as defined, for reportable segments	$	3,100,318		$	3,098,087		$	9,161,883		$	9,973,423
Unallocated other income:
Interest and other income		15,418			16,609			75,577			108,304
Gain on sale of real estate		1,221,680			169,460			2,426,004			1,026,371
Gain on dissolution of partnership assets		-			-			302,831			-
General and administrative expenses		1,200,536			1,166,374			3,889,185			3,606,963
Interest expense - mortgage notes payable		1,344,698			1,247,604			3,985,783			3,800,959
Interest and amortization of issuance costs - Series B preferred stock		353,014			-			353,014			-
Depreciation and amortization		1,614,503			1,353,612			4,387,175			3,994,350
Asset impairments		950,000			1,500,000			950,000			1,500,000
Net loss before noncontrolling interests		(1,125,335	)		(1,983,434	)		(1,598,862	)		(1,794,174	)
Income attributable to noncontrolling interests		726,222			327,550			1,709,127			875,264
Net loss	$	(1,851,557	)	$	(2,310,984	)	$	(3,307,989	)	$	(2,669,438	)

	September 30, 2014		December 31, 2013
Assets:
Industrial/Office Properties:
Land, buildings and improvements, net (1)	$	96,745,749	$	84,458,209
Total assets (2)		102,289,988		89,813,764

Residential Properties:
Land, buildings and improvements, net (1)		14,480,114		23,093,296
Total assets (2)		21,400,286		25,434,100

Retail Properties:
Land, buildings and improvements, net (1)		21,785,362		21,931,330
Total assets (2)		23,046,831		23,354,122

Self-Storage Properties:
Land, buildings and improvements, net (1)		29,267,682		29,972,327
Total assets (2)		30,040,789		31,028,008

Reconciliation to Total Assets:
Total assets for reportable segments		176,777,894		169,629,994
Other unallocated assets:
Cash and cash equivalents		11,893,187		10,207,001
Other assets, net		9,673,214		1,408,387
Total Assets	$	198,344,295	$	181,245,382

____________

(1) Includes lease intangibles and the land purchase option related to property acquisitions.

(2) Includes land, buildings and improvements, current receivables, deferred rent receivables and deferred leasing costs and other related intangible assets, all shown on a net basis.

	Nine Months Ended September 30,
	2014		2013
Capital Expenditures:(1)
Industrial/Office Properties:
Acquisition of operating property	$	14,763,625	$	-
Capital expenditures and tenant improvements		1,506,010		2,219,666

Residential Property:
Acquisition of operating properties		2,745,900		1,671,059

Retail Properties:
Capital expenditures and tenant improvements		402,799		45,000

Self-Storage Properties:
Acquisition of operating properties		-		3,650,000
Capital expenditures and tenant improvements		69,560		22,141

Acquisition of operating properties		17,509,525		5,321,059
Capital expenditures and tenant improvements		1,978,375		2,286,807
Total real estate investments	$	19,487,900	$	7,607,866

____________

(1)	Total consolidated capital expenditures are equal to the same amounts disclosed for total reportable segments.