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SEGMENT DISCLOSURE | 6 Months Ended
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Jun. 30, 2022
Segment Reporting [Abstract] |
SEGMENT DISCLOSURE | 16. SEGMENT DISCLOSURE The Company’s reportable segments during the three and six months ended June 30, 2022 and 2021 consist of two types of commercial real estate properties, namely, office and hotel, as well as a segment for the Company’s lending business. Management internally evaluates the operating performance and financial results of the segments based on net operating income. The Company also has certain general and administrative level activities, including public company expenses, legal, accounting, and tax preparation that are not considered separate operating segments. The reportable segments are accounted for on the same basis of accounting as described in the notes to the Company’s audited consolidated financial statements for the year ended December 31, 2021 included in the 2021 Form 10-K. For the Company’s real estate segments, the Company defines net operating income (loss) as rental and other property income and expense reimbursements less property related expenses, and excludes non-property income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, gain (loss) on sale of real estate, gain (loss) on early extinguishment of debt, impairment of real estate, transaction costs, and provision (benefit) for income taxes. For the Company’s lending segment, the Company defines net operating income as interest income net of interest expense and general overhead expenses. The net operating income (loss) of the Company’s segments for the three and six months ended June 30, 2022 and 2021 is as follows (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Office: |  |  |  |  |  |  |  |
Revenues |  | $ | 14,077 |  |  | $ | 13,356 |  |  | $ | 28,182 |  |  | $ | 26,883 |
Property expenses: |  |  |  |  |  |  |  |
Operating |  | 6,402 |  |  | 5,687 |  |  | 12,523 |  |  | 11,342 |
General and administrative |  | 35 |  |  | 83 |  |  | 125 |  |  | 168 |
Total property expenses |  | 6,437 |  |  | 5,770 |  |  | 12,648 |  |  | 11,510 |
Income from unconsolidated entity |  | 260 |  |  | — |  |  | 380 |  |  |
Segment net operating income—office |  | 7,900 |  |  | 7,586 |  |  | 15,914 |  |  | 15,373 |
Hotel: |  |  |  |  |  |  |  |
Revenues |  | 9,576 |  |  | 3,477 |  |  | 17,369 |  |  | 5,355 |
Property expenses: |  |  |  |  |  |  |  |
Operating |  | 6,305 |  |  | 3,428 |  |  | 11,676 |  |  | 6,063 |
General and administrative |  | 24 |  |  | 51 |  |  | 52 |  |  | 101 |
Total property expenses |  | 6,329 |  |  | 3,479 |  |  | 11,728 |  |  | 6,164 |
Segment net operating income (loss)—hotel |  | 3,247 |  |  | (2) |  |  | 5,641 |  |  | (809) |
Lending: |  |  |  |  |  |  |  |
Revenues |  | 2,750 |  |  | 5,839 |  |  | 5,634 |  |  | 9,313 |
Lending expenses: |  |  |  |  |  |  |  |
Interest expense |  | 119 |  |  | 182 |  |  | 226 |  |  | 373 |
Expense reimbursements to related parties—lending segment |  | 604 |  |  | 433 |  |  | 1,073 |  |  | 1,164 |
General and administrative |  | 338 |  |  | 177 |  |  | 898 |  |  | 623 |
Total lending expenses |  | 1,061 |  |  | 792 |  |  | 2,197 |  |  | 2,160 |
Segment net operating income—lending |  | 1,689 |  |  | 5,047 |  |  | 3,437 |  |  | 7,153 |
Total segment net operating income |  | $ | 12,836 |  |  | $ | 12,631 |  |  | $ | 24,992 |  |  | $ | 21,717 |
A reconciliation of segment net operating income to net income attributable to the Company for the three and six months ended June 30, 2022 and 2021 is as follows (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Total segment net operating income |  | $ | 12,836 |  |  | $ | 12,631 |  |  | $ | 24,992 |  |  | $ | 21,717 |
Interest and other income |  | — |  |  | 1 |  |  | — |  |  | 1 |
Asset management and other fees to related parties |  | (920) |  |  | (2,260) |  |  | (1,841) |  |  | (4,519) |
Expense reimbursements to related parties—corporate |  | (526) |  |  | (454) |  |  | (948) |  |  | (1,059) |
Interest expense |  | (2,284) |  |  | (2,491) |  |  | (4,347) |  |  | (4,932) |
General and administrative |  | (880) |  |  | (835) |  |  | (2,017) |  |  | (2,876) |
Depreciation and amortization |  | (4,974) |  |  | (5,069) |  |  | (9,978) |  |  | (10,106) |
Income (loss) before provision for income taxes |  | 3,252 |  |  | 1,523 |  |  | 5,861 |  |  | (1,774) |
Provision for income taxes |  | (321) |  |  | (996) |  |  | (628) |  |  | (1,370) |
Net income (loss) |  | 2,931 |  |  | 527 |  |  | 5,233 |  |  | (3,144) |
Net (income) loss attributable to noncontrolling interests |  | (9) |  |  | 3 |  |  | (14) |  |  | 4 |
Net income (loss) attributable to the Company |  | $ | 2,922 |  |  | $ | 530 |  |  | $ | 5,219 |  |  | $ | (3,140) |
The condensed assets for each of the segments as of June 30, 2022 and December 31, 2021, along with capital expenditures and loan originations for the six months ended June 30, 2022 and 2021, are as follows (in thousands):
|  | June 30, 2022 |  | December 31, 2021
Condensed assets: |  |  |  |
Office |  | $ | 470,779 |  |  | $ | 449,843 |
Hotel |  | 99,211 |  |  | 101,308 |
Lending |  | 83,033 |  |  | 96,729 |
Non-segment assets(1) |  | 24,722 |  |  | 12,986 |
Total assets |  | $ | 677,745 |  |  | $ | 660,866 |
|  | Six Months Ended June 30,
|  | 2022 |  | 2021
Capital expenditures(2) and loan originations: |  |  |  |
Office |  | $ | 4,304 |  |  | $ | 818 |
Hotel |  | 963 |  |  | 128 |
Total capital expenditures |  | 5,267 |  |  | 946 |
Loan originations |  | 30,682 |  |  | 65,210 |
Total capital expenditures and loan originations |  | $ | 35,949 |  |  | $ | 66,156 |
______________________ (1)Includes investments in real estate of $8.3 million representing two development sites which the Company intends to develop into multifamily assets. (2)Represents additions and improvements to real estate investments, excluding acquisitions. Includes the activity for dispositions through their respective disposition dates.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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