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Note 12 - Segments
 6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Notes to Financial Statements    
Segment Reporting Disclosure [Text Block]
1
2
. SEGMENTS
 
The Company's reportable segments consist of
three
types of commercial real estate properties for which the Company's decision-makers internally evaluate operating performance and financial results: Office/Industrial Properties, Model Home Properties and Retail 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
inter segment 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). 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
three
and
six
months ended
June 30, 2020:
 
   
For the Three Months Ended June 30,
    
For the Six Months Ended June 30,
  
   
2020
    
2019
    
2020
    
2019
  
Office/Industrial Properties:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Rental, fees and other income
   $
4,198,849
     $
5,496,096
     $
9,183,790
     $
10,950,249
  
Property and related expenses
    
(1,657,836
 )    
(2,299,126
 )    
(3,673,459
 )    
(4,803,914
 )
Net operating income, as defined
    
2,541,013
      
3,196,970
      
5,510,331
      
6,146,335
  
Model Home Properties:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Rental, fees and other income
    
1,093,015
      
1,001,918
      
2,209,745
      
2,083,602
  
Property and related expenses
    
(55,531
 )    
(48,187
 )    
(101,791
 )    
(98,609
 )
Net operating income, as defined
    
1,037,484
      
953,731
      
2,107,954
      
1,984,993
  
Retail Properties:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Rental, fees and other income
    
829,540
      
622,973
      
1,757,020
      
1,266,400
  
Property and related expenses
    
(1,132,142
 )    
(178,689
 )    
(1,451,350
 )    
(387,029
 )
Net operating (loss) income, as defined
    
(302,602
 )    
444,284
      
305,670
      
879,371
  
Reconciliation to net loss:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total net operating income, as defined, for reportable segments
    
3,275,895
      
4,594,985
      
7,923,955
      
9,010,699
  
General and administrative expenses
    
(1,278,971
 )    
(1,419,668
 )    
(2,630,316
 )    
(3,180,371
 )
Depreciation and amortization
    
(1,622,230
 )    
(1,749,113
 )    
(3,196,756
 )    
(3,959,194
 )
Interest expense
    
(2,273,355
 )    
(2,491,870
 )    
(4,827,202
 )    
(5,037,073
 )
Other income (expense), net
    
8,400
      
4,409
      
1,405
      
9,933
  
Income tax expense
    
(51,369
 )    
(191,809
 )    
(135,000
 )    
(273,239
 )
Gain on sale of real estate
    
334,096
      
176,392
      
324,261
      
1,390,634
  
Net loss
   $
(1,607,534
 )   $
(1,076,674
 )   $
(2,539,653
 )   $
(2,038,611
 )
 
Assets by Reportable Segment:
  
June 30,

2020
    
December 31,

2019
  
Office/Industrial Properties:
  
 
 
 
  
 
 
 
Land, buildings and improvements, net
(1)
   $
103,838,473
     $
126,421,648
  
Total assets
(2)
   $
103,584,934
     $
131,180,612
  
Model Home Properties:
  
 
 
 
  
 
 
 
Land, buildings and improvements, net
(1)
   $
47,369,007
     $
48,466,371
  
Total assets
(2)
   $
50,721,230
     $
51,389,400
  
Retail Properties:
  
 
 
 
  
 
 
 
Land, buildings and improvements, net
(1)
   $
25,226,109
     $
25,318,601
  
Total assets
(2)
   $
26,493,119
     $
26,588,254
  
Reconciliation to Total Assets:
  
 
 
 
  
 
 
 
Total assets for reportable segments
   $
180,799,283
     $
209,158,266
  
Other unallocated assets:
                
Cash, cash equivalents and restricted cash
    
2,023,182
      
1,591,041
  
Other assets, net
    
11,398,663
      
10,035,101
  
Total Assets
   $
194,221,128
     $
220,784,408
  
 
(
1
)
Includes lease intangibles and the land purchase option related to property acquisitions.
(
2
)
Includes land, buildings and improvements, cash, cash equivalents, and restricted cash, 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
  
For the Six Months Ended June 30,
  
Office/Industrial Properties:
  
 
 
 
  
 
 
 
Capital expenditures and tenant improvements
   $
2,374,260
     $
4,645,667
  
Model Home Properties:
  
 
 
 
  
 
 
 
Acquisition of operating properties
    
6,292,383
      
6,116,035
  
Retail Properties:
  
 
 
 
  
 
 
 
Capital expenditures and tenant improvements
    
8,176
      
15,250
  
Totals:
  
 
 
 
  
 
 
 
Acquisition of operating properties, net
    
6,292,383
      
6,116,035
  
Capital expenditures and tenant improvements
    
2,382,436
      
4,660,917
  
Total real estate investments
   $
8,674,819
     $
10,776,952
  
 
14.
 SEGMENTS
 
The Company's reportable segments consist of the
three
types of commercial real estate properties for which the Company's decision-makers internally evaluate operating performance and financial results: Office/Industrial Properties, Model Homes and Retail 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
significant 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) excluding 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,
2019
and
2018,
respectively.
 
   
For the Year Ended

December 31,
  
   
2019
    
2018
 
Office/Industrial Properties:
  
 
 
 
  
 
 
 
Rental income
   $
21,490,215
     $
24,037,363
  
Property and related expenses
    
(9,317,720
)
    
(9,494,885
)
Net operating income, as defined
    
12,172,495
      
14,542,478
  
Model Home Properties:
  
 
 
 
  
 
 
 
Rental income
    
4,194,489
      
4,642,159
  
Property and related expenses
    
(193,367
)
    
(174,238
)
Net operating income, as defined
    
4,001,122
      
4,467,921
  
Retail Properties:
  
 
 
 
  
 
 
 
Rental income
    
2,956,407
      
3,664,491
  
Property and related expenses
    
(899,487
)
    
(1,217,596
)
Net operating income, as defined
    
2,056,920
      
2,446,895
  
Reconciliation to net income:
  
 
 
 
  
 
 
 
Total net operating income, as defined, for reportable segments
    
18,230,537
      
21,457,294
  
General and administrative expenses
    
(5,268,315
)
    
(4,532,703
)
Depreciation and amortization
    
(7,364,688
)
    
(9,101,605
)
Interest expense
    
(10,649,646
)
    
(13,041,016
)
Interest income
    
141,306
      
55,909
  
Gain on sale of real estate
    
6,319,272
      
12,200,138
  
Deferred offering cost
    
—
      
(1,507,599
)
Impairment of real estate
    
—
      
(532,951
)
Acquisition costs
    
(24,269
)
    
(26,177
)
Income tax expense
    
(611,263
)
    
(518,567
)
Net income
   $
772,934
     $
4,452,723
  
 
Assets by Reportable Segment:
  
December 31,

2019
    
December 31,

2018
  
Office/Industrial Properties:
  
 
 
 
  
 
 
 
Land, buildings and improvements, net (1)
   $
126,421,648
     $
138,694,773
  
Total assets (2)
   $
131,180,612
     $
143,620,315
  
Model Home Properties:
  
 
 
 
  
 
 
 
Land, buildings and improvements, net (1)
   $
48,466,371
     $
48,762,869
  
Total assets (2)
   $
51,389,400
     $
48,864,060
  
Retail Properties:
  
 
 
 
  
 
 
 
Land, buildings and improvements, net (1)
   $
25,318,601
     $
23,650,423
  
Total assets (2)
   $
26,588,254
     $
27,702,384
  
Reconciliation to Total Assets:
  
 
 
 
  
 
 
 
Total assets for reportable segments
   $
209,158,266
     $
220,186,759
  
Other unallocated assets:
                
Cash and cash equivalents
    
10,391,275
      
9,776,215
  
Other assets, net
    
1,234,867
      
3,087,066
  
Total Assets
   $
220,784,408
     $
233,050,040
  
 
(
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
 
   
For the Year Ended
December 31,
  
    2019     2018  
Office/Industrial Properties:
  
 
 
 
  
 
 
 
Capital expenditures and tenant improvements
   $
6,373,464
     $
3,340,023
  
Model Home Properties:
  
 
 
 
  
 
 
 
Acquisition of operating properties
    
13,037,562
      
17,326,915
  
Retail Properties:
  
 
 
 
  
 
 
 
Capital expenditures and tenant improvements
    
20,247
      
19,260
  
Totals:
  
 
 
 
  
 
 
 
Acquisition of operating properties, net
    
13,037,562
      
17,326,915
  
Capital expenditures and tenant improvements
    
6,393,711
      
3,359,283
  
Total real estate investments
   $
19,431,273
     $
20,686,198