XML 29 R19.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Note 13 - Segments
 6 Months Ended
Jun. 30, 2024
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

13. 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) 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 compare 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, 2024, and June 30, 2023:

 

  Three Months Ended June 30,  Six Months Ended June 30, 
  

2024

  

2023

  

2024

  

2023

 

Office/Industrial Properties:

                

Rental, fees and other income

 $2,955,272  $3,020,066  $5,922,992  $5,882,064 

Property and related expenses

  (1,294,149)  (1,202,243)  (2,676,542)  (2,662,932)

Net operating income, as defined

  1,661,123   1,817,823   3,246,450   3,219,132 

Model Home Properties:

                

Rental, fees and other income

  1,155,416   1,022,041   2,424,369   1,877,161 

Property and related expenses

  (142,951)  (46,801)  (279,728)  (77,797)

Net operating income, as defined

  1,012,465   975,240   2,144,641   1,799,364 

Retail Properties:

                

Rental, fees and other income

  475,853   480,001   1,029,241   938,868 

Property and related expenses

  (156,640)  (128,351)  (296,594)  (266,149)

Net operating income, as defined

  319,213   351,650   732,647   672,719 

Reconciliation to net income:

                

Total net operating income, as defined, for reportable segments

  2,992,801   3,144,713   6,123,738   5,691,215 

General and administrative expenses

  (2,202,916)  (1,813,184)  (4,287,366)  (3,777,804)

Depreciation and amortization

  (1,351,370)  (1,368,829)  (2,702,388)  (2,702,403)

Interest expense

  (1,525,845)  (1,336,415)  (3,041,051)  (2,204,182)

Loss on Conduit Pharmaceuticals marketable securities

  (10,027,433)  —   (13,888,667)  — 

Other income, net

  5,206   398,085   9,852   1,140,201 

Income tax expense

  (81,021)  (349,074)  (160,586)  (497,527)

Gain on sale of real estate

  811,903   1,119,952   2,829,998   1,537,289 

Net loss

 $(11,378,675) $(204,752) $(15,116,470) $(813,211)

 

 

  

June 30,

  

December 31,

 

Assets by Reportable Segment:

 

2024

  

2023

 

Office/Industrial Properties:

        

Land, buildings and improvements, net (1)

 $76,768,551  $77,472,724 

Total assets (2)

 $77,076,636  $78,140,372 

Model Home Properties:

        

Land, buildings and improvements, net (1)

 $38,253,777  $50,790,147 

Total assets (2)

 $39,538,041  $51,456,292 

Retail Properties:

        

Land, buildings and improvements, net (1)

 $15,863,447  $15,877,190 

Total assets (2)

 $16,541,354  $16,539,399 

Reconciliation to Total Assets:

        

Total assets for reportable segments

 $133,156,031  $146,136,063 

Other unallocated assets:

        

Cash, cash equivalents and restricted cash

  2,469,278   277,143 

Other assets, net

  14,912,974   29,549,432 

Total Assets

 $150,538,283  $175,962,638 

 

(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 Six Months Ended June 30,

 

Capital Expenditures by Reportable Segment

 

2024

  

2023

 

Office/Industrial Properties:

        

Capital expenditures and tenant improvements, office

 $1,010,815  $905,132 

Model Home Properties:

        

Acquisition of operating properties, model home

  5,740,918   12,932,128 

Retail Properties:

        

Capital expenditures and tenant improvements, retail

  203,121   96,704 

Totals:

        

Acquisition of operating properties, net

  5,740,918   12,932,128 

Capital expenditures and tenant improvements

  1,213,936   1,001,836 

Total real estate investments

 $6,954,854  $13,933,964