Segments (Tables)

9 Months Ended

Sep. 30, 2018

The following tables reconcile the Company’s segment activity to its results of operations and financial position as of and for the three and nine months ended September 30, 2018 and 2017.

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2018			2017			2018			2017
Office/Industrial Properties:
Rental, fee and other income	$	6,118,429		$	5,924,773		$	18,333,962		$	18,703,971
Property and related expenses		(2,348,532	)		(2,413,777	)		(7,005,628	)		(6,928,015	)
Net operating income, as defined		3,769,896			3,510,996			11,328,334			11,775,956
Model Home Properties:
Rental, fee and other income		1,211,327			983,426			3,504,983			2,790,032
Property and related expenses		(44,704	)		(35,239	)		(132,055	)		(109,233	)
Net operating income, as defined		1,166,623			948,187			3,372,928			2,680,799
Retail Properties:
Rental, fee and other income		952,846			1,055,177			2,832,906			3,234,071
Property and related expenses		(325,058	)		(344,957	)		(892,746	)		(1,029,987	)
Net operating income, as defined		627,788			710,220			1,940,160			2,204,083
Reconciliation to net loss:
Total net operating income, as defined, for reportable segments		5,564,308			5,169,403			16,641,422			16,660,838
General and administrative expenses		(1,384,974	)		(1,322,631	)		(4,041,453	)		(3,960,202	)
Depreciation and amortization		(2,268,896	)		(2,399,307	)		(6,873,828	)		(7,346,640	)
Interest expense		(3,281,088	)		(3,191,152	)		(9,505,244	)		(9,818,767	)
Other expense		8,466			10,515			2,624			25,612
Deferred offering costs		-			-			(1,507,599	)		-
Income tax expense		(69,683	)		(53,566	)		(225,341	)		(154,189	)
Impairment of real estate assets		(532,951	)		-			(532,951	)		-
Gain on sale of real estate		366,032			210,372			795,521			2,237,423
Net loss	$	(1,598,787	)	$	(1,576,366	)	$	(5,246,847	)	$	(2,355,925	)

Reconciliation of Assets by Segment to Total Assets

	September 30,		December 31,
Assets by Reportable Segment:	2018		2017

Office/Industrial Properties:
Land, buildings and improvements, net (1)	$	157,324,874	$	160,422,469
Total assets (2)	$	157,667,998	$	163,041,049
Model Home Properties:
Land, buildings and improvements, net (1)	$	50,075,254	$	43,245,832
Total assets (2)	$	50,284,837	$	44,782,943
Retail Properties:
Land, buildings and improvements, net (1)	$	30,499,383	$	30,865,644
Total assets (2)	$	31,365,922	$	32,534,890
Reconciliation to Total Assets:
Total assets for reportable segments	$	239,318,757	$	240,358,882
Other unallocated assets:
Cash equivalents and restricted cash		11,841,100		8,310,575
Other assets, net		8,471,501		5,827,408
Total Assets	$	259,631,357	$	254,496,865

(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.

Reconciliation of Capital Expenditures by Segment to Total Real Estate Investments

Capital Expenditures by Reportable Segment
	For the Nine Months Ended September 30,
	2018		2017
Office/Industrial Properties:
Capital expenditures and tenant improvements	$	2,122,291	$	3,115,489

Model Home Properties:
Acquisition of operating properties		15,225,886		16,810,985

Retail Properties:
Capital expenditures and tenant improvements		19,260		41,497

Totals:
Acquisition of operating properties, net		15,225,886		16,810,985
Capital expenditures and tenant improvements		2,141,551		3,156,986
Total real estate investments	$	17,367,437	$	19,967,971