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SEGMENT DISCLOSURE | 3 Months Ended
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Mar. 31, 2024
Segment Reporting [Abstract] |
SEGMENT DISCLOSURE | 17. SEGMENT DISCLOSURE The Company’s reportable segments during the three months ended March 31, 2024 and March 31, 2023 consist of three types of commercial real estate properties, namely, office, hotel and multifamily, 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, 2023 included in the 2023 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 months ended March 31, 2024 and 2023 is as follows (in thousands):
|  | Three Months Ended March 31, |  |
|  | 2024 |  | 2023 |  |  |  |
Office: |  |  |  |  |  |  |  |
Revenues |  | $ | 14,611 |  |  | $ | 13,487 |  |  |  |  |
Property expenses: |  |  |  |  |  |  |  |
Operating |  | 6,859 |  |  | 6,523 |  |  |  |  |
General and administrative |  | 4 |  |  | 100 |  |  |  |  |
Total property expenses |  | 6,863 |  |  | 6,623 |  |  |  |  |
Income (loss) from unconsolidated entities |  | 117 |  |  | (64) |  |  |  |  |
Segment net operating income—office |  | 7,865 |  |  | 6,800 |  |  |  |  |
Hotel: |  |  |  |  |  |  |  |
Revenues |  | 11,854 |  |  | 11,492 |  |  |  |  |
Property expenses: |  |  |  |  |  |  |  |
Operating |  | 7,785 |  |  | 7,339 |  |  |  |  |
General and administrative |  | 7 |  |  | 8 |  |  |  |  |
Total property expenses |  | 7,792 |  |  | 7,347 |  |  |  |  |
Segment net operating income—hotel |  | 4,062 |  |  | 4,145 |  |  |  |  |
Multifamily: |  |  |  |  |  |  |  |
Revenues |  | 4,749 |  |  | 1,223 |  |  |  |  |
Property expenses: |  |  |  |  |  |  |  |
Operating |  | 3,337 |  |  | 1,363 |  |  |  |  |
General and administrative |  | 52 |  |  | 17 |  |  |  |  |
Total property expenses |  | 3,389 |  |  | 1,380 |  |  |  |  |
(Loss) income from unconsolidated entity |  | (443) |  |  | 832 |  |  |  |  |
Segment net operating income—multifamily |  | 917 |  |  | 675 |  |  |  |  |
Lending: |  |  |  |  |  |  |  |
Revenues |  | 2,640 |  |  | 2,710 |  |  |  |  |
Lending expenses: |  |  |  |  |  |  |  |
Interest expense |  | 920 |  |  | 245 |  |  |  |  |
Expense reimbursements to related parties—lending segment |  | 563 |  |  | 608 |  |  |  |  |
General and administrative |  | 368 |  |  | 499 |  |  |  |  |
Total lending expenses |  | 1,851 |  |  | 1,352 |  |  |  |  |
Segment net operating income—lending |  | 789 |  |  | 1,358 |  |  |  |  |
Total segment net operating income |  | $ | 13,633 |  |  | $ | 12,978 |  |  |  |  |
A reconciliation of segment net operating income to net income attributable to the Company for the three months ended March 31, 2024 and 2023 is as follows (in thousands):
|  | Three Months Ended March 31, |  |
|  | 2024 |  | 2023 |  |  |  |
Total segment net operating income |  | $ | 13,633 |  |  | $ | 12,978 |  |  |  |  |
Interest and other income |  | 144 |  |  | — |  |  |  |  |
Asset management and other fees to related parties |  | (394) |  |  | (720) |  |  |  |  |
Expense reimbursements to related parties—corporate |  | (605) |  |  | (528) |  |  |  |  |
Interest expense |  | (8,057) |  |  | (5,991) |  |  |  |  |
General and administrative |  | (1,188) |  |  | (1,301) |  |  |  |  |
Transaction-related costs |  | (690) |  |  | (3,360) |  |  |  |  |
Depreciation and amortization |  | (6,478) |  |  | (9,502) |  |  |  |  |
Gain on sale of real estate |  | — |  |  | 1,104 |  |  |  |  |
Loss before provision for income taxes |  | (3,635) |  |  | (7,320) |  |  |  |  |
Provision for income taxes |  | (270) |  |  | (256) |  |  |  |  |
Net loss |  | (3,905) |  |  | (7,576) |  |  |  |  |
Net loss attributable to non-controlling interests |  | 175 |  |  | 625 |  |  |  |  |
Net loss attributable to the Company |  | $ | (3,730) |  |  | $ | (6,951) |  |  |  |  |
The condensed assets for each of the segments as of March 31, 2024 and December 31, 2023, along with capital expenditures and loan originations for the three months ended March 31, 2024 and 2023, are as follows (in thousands):
|  | March 31, 2024 |  | December 31, 2023
Condensed assets: |  |  |  |
Office |  | $ | 420,628 |  |  | $ | 419,443 |
Hotel |  | 98,023 |  |  | 95,998 |
Multifamily |  | 277,516 |  |  | 278,492 |
Lending |  | 73,954 |  |  | 76,374 |
Non-segment assets |  | 17,382 |  |  | 20,893 |
Total assets |  | $ | 887,503 |  |  | $ | 891,200 |
|  | Three Months Ended March 31,
|  | 2024 |  | 2023
Capital expenditures(1) and loan originations: |  |  |  |
Office |  | $ | 8,582 |  |  | $ | 2,156 |
Hotel |  | 2,360 |  |  | 1,629 |
Multifamily |  | 2,598 |  |  | 5,327 |
Total capital expenditures |  | 13,540 |  |  | 9,112 |
Loan originations |  | 7,733 |  |  | 10,781 |
Total capital expenditures and loan originations |  | $ | 21,273 |  |  | $ | 19,893 |
______________________ (1)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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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