14. 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: Office/Industrial Properties, Retail Properties; and Self-Storage Properties. During the year ended December 31, 2015, the Company sold all of its 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 accounting policies of the reportable segments are the same as those described in Note 2. There is no intersegment activity.

The Company evaluates the performance of its segments based upon net operating income (“NOI”), which is a non-GAAP supplemental financial measure. The Company defines NOI for its segments as operating revenues (rental income, tenant reimbursements and other operating income) less property and related expenses (property operating expenses, real estate taxes, insurance, asset management fees, impairments and provision for bad debt) less interest expense. NOI excludes certain items that are not considered to be controllable in connection with the management of an asset such as non-property income and expenses, depreciation and amortization, real estate acquisition fees and expenses and corporate general and administrative expenses. The Company uses NOI to evaluate the operating performance of the Company’s real estate investments and to make decisions about resource allocations.

The following tables reconcile the Company’s segment activity to its results of operations and financial position as of and for the years ended December 31, 2015 and 2014, respectively.

	Year Ended December 31,
	2015			2014
Office/ Industrial Properties:
Rental income	$	18,497,621		$	11,800,836
Property and related expenses		(7,170,550	)		(4,769,577	)
Asset impairment		—			(950,000	)
Net operating income, as defined		11,327,071			6,081,259

Residential Properties:
Rental income		1,521,148			2,065,327
Property and related expenses		(63,875	)		(102,082	)
Net operating income, as defined		1,457,273			1,963,245

Retail Properties:
Rental income		3,960,076			2,607,744
Property and related expenses		(1,280,726	)		(877,620	)
Net operating income, as defined		2,679,350			1,730,124

Self-Storage Properties:
Rental income		1,052,266			3,428,503
Property and related expenses		(1,183,641	)		(3,266,145	)
Net operating income, as defined		(131,375	)		162,358

Reconciliation to net loss:
Total net operating income, as defined, for reportable segments		15,332,319			9,936,986
Unallocated other income (expense):
General and administrative expenses		(5,193,888	)		(5,555,449	)
Depreciation and amortization		(7,784,917	)		(5,383,266	)
Interest expense		(10,774,660	)		(5,595,329	)
Interest income		150,008			85,806
Gain on sales of real estate, net		6,243,640			5,120,699
Gain on extinguishment of debt		—			536,952
Net loss	$	(2,027,498	)	$	(853,601	)

Assets by Reportable Segment:	As of December 31,
	2015		2014

Office/ Industrial Properties:
Land, buildings and improvements, net (1)	$	178,776,776	$	122,351,316
Total assets (2)	$	190,857,259	$	130,184,998

Residential Properties:
Land, buildings and improvements, net (1)	$	16,888,267	$	13,133,827
Total assets (2)	$	14,395,904	$	13,588,922

Retail Properties:
Land, buildings and improvements, net (1)	$	35,395,235	$	33,141,294
Total assets (2)	$	36,747,069	$	34,712,223

Self-Storage Properties:
Land, buildings and improvements, net (1)	$	—	$	29,107,675
Total assets (2)	$	—	$	30,003,506

Reconciliation to total assets:
Total assets for reportable segments	$	242,000,232	$	208,489,649
Other unallocated assets:
Cash and cash equivalents		6,626,423		5,636,002
Other assets, net		9,306,036		6,499,287
Total assets	$	257,932,691	$	220,624,938

(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.

Capital expenditures by Reportable Segment:(1)	Year Ended December 31,
	2015		2014

Office/Industrial Properties:
Acquisition of operating properties	$	59,223,876	$	42,125,000
Capital expenditures and tenant improvements	$	2,793,850	$	2,123,438

Residential Properties:
Acquisition of operating properties	$	5,720,540	$	5,726,700

Retail Properties:
Acquisition of operating properties	$	2,908,176	$	11,211,669
Capital expenditures and tenant improvements	$	54,839	$	359,473

Self Storage Properties:
Capital expenditures and tenant improvements	$	6,250	$	84,116

Totals:
Acquisition of operating properties, net	$	67,852,592	$	59,063,369
Capital expenditures and tenant improvements		2,854,939		2,567,027
Total real estate investments	$	70,707,531	$	61,630,396

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