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Note 12 - Segments
 3 Months Ended
Mar. 31, 2021
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

12. SEGMENTS

 

The Company’s reportable segments consist of three types of 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.  There is no material 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 regarding allocation of resources.

 

The following tables reconcile the Company’s segment activity to its results of operations and financial position as of and for the three months ended March 31, 2021 and March 31, 2020:

 

  

For the Three Months Ended March 31,

 
  

2021

  

2020

 

Office/Industrial Properties:

        

Rental, fees and other income

 $3,942,805  $4,984,942 

Property and related expenses

  (1,854,272)  (2,015,624)

Net operating income, as defined

  2,088,533   2,969,318 

Model Home Properties:

        

Rental, fees and other income

  943,777   1,116,730 

Property and related expenses

  (50,285)  (46,260)

Net operating income, as defined

  893,492   1,070,470 

Retail Properties:

        

Rental, fees and other income

  782,172   927,479 

Property and related expenses

  (234,366)  (319,208)

Net operating (loss) income, as defined

  547,806   608,271 

Reconciliation to net loss:

        

Total net operating income, as defined, for reportable segments

  3,529,831   4,648,059 

General and administrative expenses

  (1,537,265)  (1,351,345)

Depreciation and amortization

  (1,428,934)  (1,574,526)

Interest expense

  (1,584,394)  (2,553,846)

Gain on extinguishment of government debt

  10,000   — 

Other income (expense), net

  (32,785)  (6,995)

Income tax expense

  (50,199)  (83,631)

Gain (loss) on sale of real estate

  (1,161,328)  (9,835)

Net loss

 $(2,255,074) $(932,119)

 

 

 

  

March 31,

  

December 31,

 

Assets by Reportable Segment:

 

2021

  

2020

 

Office/Industrial Properties:

        

Land, buildings and improvements, net (1)

 $86,427,084  $99,120,649 

Total assets (2)

 $85,861,760  $100,046,782 

Model Home Properties:

        

Land, buildings and improvements, net (1)

 $37,888,865  $42,509,596 

Total assets (2)

 $35,987,702  $42,246,022 

Retail Properties:

        

Land, buildings and improvements, net (1)

 $20,970,712  $24,555,371 

Total assets (2)

 $22,190,105  $26,108,109 

Reconciliation to Total Assets:

        

Total assets for reportable segments

 $144,039,567  $168,400,913 

Other unallocated assets:

        

Cash, cash equivalents and restricted cash

  229,700   2,149,088 

Other assets, net

  14,872,739   15,018,615 

Total Assets

 $159,142,006  $185,568,616 

 

(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.

 

  

For the Three Months Ended March 31,

 

Capital Expenditures by Reportable Segment

 

2021

  

2020

 

Office/Industrial Properties:

        

Capital expenditures and tenant improvements

 $100,765  $881,497 

Model Home Properties:

        

Acquisition of operating properties

  —   3,573,743 

Retail Properties:

        

Capital expenditures and tenant improvements

  —   8,176 

Totals:

        

Acquisition of operating properties, net

  —   3,573,743 

Capital expenditures and tenant improvements

  100,765   889,673 

Total real estate investments

 $100,765  $4,463,416