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SEGMENT DISCLOSURE
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
SEGMENT DISCLOSURE 16. SEGMENT DISCLOSURE
The Company’s reportable segments during the three and nine months ended September 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 nine months ended September 30, 2022 and 2021 is as follows (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Office: 
Revenues$14,043 $12,998 $42,225 $39,881 
Property expenses:    
Operating7,249 5,362 19,772 16,704 
General and administrative71 123 196 291 
Total property expenses7,320 5,485 19,968 16,995 
(Loss) income from unconsolidated entity(204)— 176 
Segment net operating income—office6,519 7,513 22,433 22,886 
Hotel:    
Revenues8,456 5,478 25,825 10,833 
Property expenses:    
Operating6,052 4,596 17,728 10,659 
General and administrative27 5 79 106 
Total property expenses6,079 4,601 17,807 10,765 
Segment net operating income—hotel2,377 877 8,018 68 
Lending:
Revenues2,353 5,773 7,987 15,086 
Lending expenses:  
Interest expense134 105 360 478 
Expense reimbursements to related parties—lending segment539 55 1,612 1,219 
General and administrative489 744 1,387 1,367 
Total lending expenses1,162 904 3,359 3,064 
Segment net operating income—lending1,191 4,869 4,628 12,022 
Total segment net operating income$10,087 $13,259 $35,079 $34,976 
A reconciliation of segment net operating income to net income attributable to the Company for the three and nine months ended September 30, 2022 and 2021 is as follows (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
 2022202120222021
Total segment net operating income$10,087 $13,259 $35,079 $34,976 
Interest and other income1 — 1 1 
Asset management and other fees to related parties(916)(2,262)(2,757)(6,781)
Expense reimbursements to related parties—corporate(511)(533)(1,459)(1,592)
Interest expense(2,059)(2,080)(6,406)(7,012)
General and administrative(1,353)(753)(3,370)(3,629)
Transaction costs(201)— (201)— 
Depreciation and amortization(5,093)(5,061)(15,071)(15,167)
(Loss) income before provision for income taxes(45)2,570 5,816 796 
Provision for income taxes(187)(946)(815)(2,316)
Net (loss) income(232)1,624 5,001 (1,520)
Net (income) loss attributable to noncontrolling interests(5)— (19)4 
Net (loss) income attributable to the Company$(237)$1,624 $4,982 $(1,516)
The condensed assets for each of the segments as of September 30, 2022 and December 31, 2021, along with capital expenditures and loan originations for the nine months ended September 30, 2022 and 2021, are as follows (in thousands):
 September 30, 2022December 31, 2021
Condensed assets:  
Office$472,706 $449,843 
Hotel99,432 101,308 
Lending81,603 96,729 
Non-segment assets(1)
11,856 12,986 
Total assets$665,597 $660,866 
 Nine Months Ended September 30,
 20222021
Capital expenditures(2) and loan originations:
  
Office$7,008 $2,488 
Hotel197 144 
Total capital expenditures7,205 2,632 
Loan originations35,956 119,479 
Total capital expenditures and loan originations$43,161 $122,111 
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(1)Includes investments in real estate of $9.4 million representing three 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.