XML 36 R24.htm IDEA: XBRL DOCUMENT v3.24.3
SEGMENT DISCLOSURE
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENT DISCLOSURE 17. SEGMENT DISCLOSURE
The Company’s reportable segments during the three and nine months ended September 30, 2024 and September 30, 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 and nine months ended September 30, 2024 and 2023 is as follows (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Office: 
Revenues$13,819 $14,049 $42,531 $41,511 
Property expenses:    
Operating7,444 6,267 20,634 19,159 
General and administrative122 75 192 232 
Total property expenses7,566 6,342 20,826 19,391 
(Loss) income from unconsolidated entities(834)1,611 487 837 
Segment net operating income—office5,419 9,318 22,192 22,957 
Hotel:    
Revenues7,142 7,948 31,151 31,108 
Property expenses:    
Operating6,147 6,030 21,763 20,912 
General and administrative22 (3)33 17 
Total property expenses6,169 6,027 21,796 20,929 
Segment net operating income—hotel973 1,921 9,355 10,179 
Multifamily:
Revenues4,773 3,331 14,971 8,632 
Property expenses:
Operating3,782 3,212 10,153 7,642 
General and administrative78 88 212 400 
Total property expenses3,860 3,300 10,365 8,042 
(Loss) income from unconsolidated entity(405)(422)(929)216 
Segment net operating income (loss)—multifamily508 (391)3,677 806 
Lending:
Revenues2,724 2,570 7,928 8,243 
Lending expenses:  
Interest expense786 1,177 2,586 2,737 
Expense reimbursements to related parties—lending segment672 648 1,908 2,166 
General and administrative578 379 1,214 1,092 
Total lending expenses2,036 2,204 5,708 5,995 
Segment net operating income—lending688 366 2,220 2,248 
Total segment net operating income$7,588 $11,214 $37,444 $36,190 
A reconciliation of segment net operating income to net income attributable to the Company for the three and nine months ended September 30, 2024 and 2023 is as follows (in thousands):
 Three Months Ended September 30,Nine Months Ended September 30,
 2024202320242023
Total segment net operating income$7,588 $11,214 $37,444 $36,190 
Interest and other income158 220 472 296 
Asset management and other fees to related parties(515)(724)(1,334)(2,071)
Expense reimbursements to related parties—corporate(592)(524)(1,809)(1,729)
Interest expense(8,830)(8,556)(25,233)(21,941)
General and administrative(1,421)(1,603)(3,592)(4,010)
Transaction-related costs(526)(38)(1,351)(3,398)
Depreciation and amortization(6,423)(16,082)(19,357)(46,056)
Gain on sale of real estate— — — 1,104 
Loss before provision for income taxes(10,561)(16,093)(14,760)(41,615)
Provision for income taxes(15)(554)(573)(969)
Net loss(10,576)(16,647)(15,333)(42,584)
Net loss attributable to non-controlling interests192 874 423 2,501 
Net loss attributable to the Company$(10,384)$(15,773)$(14,910)$(40,083)
The condensed assets for each of the segments as of September 30, 2024 and December 31, 2023 are as follows (in thousands):
 September 30, 2024December 31, 2023
Condensed assets:  
Office$418,886 $419,443 
Hotel102,621 95,998 
Multifamily270,260 278,492 
Lending75,472 76,374 
Non-segment assets810 20,893 
Total assets$868,049 $891,200