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SEGMENT DISCLOSURE | 6 Months Ended
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Jun. 30, 2025
Segment Reporting [Abstract] |
SEGMENT DISCLOSURE | 17. SEGMENT DISCLOSURE The Company’s reportable segments during the three and six months ended June 30, 2025 and 2024 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, 2024 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. 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 Company’s chief operating decision maker (“CODM”) is the Company’s executive management team, comprised of the Chief Executive Officer, Chief Investment Officer, Chief Financial Officer, and the 1st Vice President for portfolio oversight of CIM. The CODM evaluates performance and allocates resources based on segment net operating income (loss). All expense categories on the statement of operations are significant and there are no other significant segment expenses that would require disclosure. The CODM uses net operating income (loss) to make key operating decisions, such as identifying attractive investment opportunities, evaluating underwriting standards, determining the appropriate level of leverage to enhance returns on equity and deciding on the sources of financing. The net operating income (loss) of the Company’s segments for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Office (1): |  |  |  |  |  |  |  |
Revenues |  | $ | 11,877 |  |  | $ | 14,101 |  |  | $ | 24,931 |  |  | $ | 28,712 |
Property expenses: |  |  |  |  |  |  |  |
Operating |  | 6,444 |  |  | 6,331 |  |  | 12,080 |  |  | 13,190 |
General and administrative |  | 89 |  |  | 66 |  |  | 377 |  |  | 70 |
Total property expenses |  | 6,533 |  |  | 6,397 |  |  | 12,457 |  |  | 13,260 |
Income from unconsolidated entities |  | 175 |  |  | 1,204 |  |  | 146 |  |  | 1,321 |
Segment net operating income—office |  | 5,519 |  |  | 8,908 |  |  | 12,620 |  |  | 16,773 |
Hotel: |  |  |  |  |  |  |  |
Revenues |  | 11,635 |  |  | 12,155 |  |  | 24,316 |  |  | 24,009 |
Property expenses: |  |  |  |  |  |  |  |
Operating |  | 7,470 |  |  | 7,831 |  |  | 15,456 |  |  | 15,616 |
General and administrative |  | 7 |  |  | 4 |  |  | 18 |  |  | 11 |
Total property expenses |  | 7,477 |  |  | 7,835 |  |  | 15,474 |  |  | 15,627 |
Segment net operating income—hotel |  | 4,158 |  |  | 4,320 |  |  | 8,842 |  |  | 8,382 |
Multifamily (1): |  |  |  |  |  |  |  |
Revenues |  | 3,944 |  |  | 5,449 |  |  | 8,035 |  |  | 10,198 |
Property expenses: |  |  |  |  |  |  |  |
Operating |  | 3,060 |  |  | 3,034 |  |  | 6,563 |  |  | 6,371 |
General and administrative |  | 83 |  |  | 82 |  |  | 169 |  |  | 134 |
Total property expenses |  | 3,143 |  |  | 3,116 |  |  | 6,732 |  |  | 6,505 |
Loss from unconsolidated entity |  | (612) |  |  | (81) |  |  | (1,734) |  |  | (524) |
Segment net operating income (loss)—multifamily |  | 189 |  |  | 2,252 |  |  | (431) |  |  | 3,169 |
Lending: |  |  |  |  |  |  |  |
Revenues |  | 2,090 |  |  | 2,564 |  |  | 4,468 |  |  | 5,204 |
Lending expenses: |  |  |  |  |  |  |  |
Interest expense |  | 549 |  |  | 880 |  |  | 1,123 |  |  | 1,800 |
Expense reimbursements to related parties—lending segment |  | 678 |  |  | 673 |  |  | 1,337 |  |  | 1,236 |
General and administrative |  | 910 |  |  | 268 |  |  | 1,465 |  |  | 636 |
Total lending expenses |  | 2,137 |  |  | 1,821 |  |  | 3,925 |  |  | 3,672 |
Segment net operating (loss) income—lending |  | (47) |  |  | 743 |  |  | 543 |  |  | 1,532 |
Total segment net operating income |  | $ | 9,819 |  |  | $ | 16,223 |  |  | $ | 21,574 |  |  | $ | 29,856 |
(1)Beginning in the quarter ended December 31, 2024, the Company reclassified its investment in the 4750 Wilshire JV to include income from the investment in the multifamily segment from its previous classification in the office segment. This change corresponded with the 4750 Wilshire JV’s substantial completion of the 4750 Wilshire Project. In the above table, the Company’s income earned from its investment in the 4750 Wilshire JV prior to October 1, 2024 is included within the office segment and its income earned from its investment in the 4750 Wilshire JV subsequent to October 1, 2024 is included within the multifamily segment. In addition, beginning in the quarter ended December 31, 2024, the Company reclassified its consolidated property located at 4750 Wilshire Boulevard (Backlot) in Los Angeles, California to include the property in the multifamily segment, from its previous classification in the office segment. In the above table, activity related to 4750 Wilshire Boulevard (Backlot) occurring prior to October 1, 2024 is included within the office segment and such activity subsequent to October 1, 2024 is included within the multifamily segment. In the above table, activity related to both the 1910 Sunset JV and 1015 N Mansfield JV are included within the office segment, while activity related to the 1902 Park JV is included in the multifamily segment. A reconciliation of segment net operating income to net income attributable to the Company for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Total segment net operating income |  | $ | 9,819 |  |  | $ | 16,223 |  |  | $ | 21,574 |  |  | $ | 29,856 |
Interest and other income |  | 143 |  |  | 170 |  |  | 234 |  |  | 314 |
Asset management and other fees to related parties |  | (349) |  |  | (425) |  |  | (709) |  |  | (819) |
Expense reimbursements to related parties—corporate |  | (891) |  |  | (612) |  |  | (1,517) |  |  | (1,217) |
Interest expense |  | (9,627) |  |  | (8,346) |  |  | (18,811) |  |  | (16,403) |
General and administrative |  | (712) |  |  | (983) |  |  | (1,953) |  |  | (2,171) |
Transaction-related costs |  | (803) |  |  | (135) |  |  | (829) |  |  | (825) |
Depreciation and amortization |  | (6,264) |  |  | (6,456) |  |  | (12,824) |  |  | (12,934) |
Loss on early extinguishment of debt |  | (88) |  |  | — |  |  | (88) |  |  | — |
Impairment of real estate |  | (221) |  |  | — |  |  | (221) |  |  | — |
Loss before benefit (provision) for income taxes |  | (8,993) |  |  | (564) |  |  | (15,144) |  |  | (4,199) |
Provision for income taxes |  | (158) |  |  | (288) |  |  | (279) |  |  | (558) |
Net loss |  | (9,151) |  |  | (852) |  |  | (15,423) |  |  | (4,757) |
Net loss attributable to non-controlling interests |  | 152 |  |  | 56 |  |  | 310 |  |  | 231 |
Net loss attributable to the Company |  | $ | (8,999) |  |  | $ | (796) |  |  | $ | (15,113) |  |  | $ | (4,526) |
The condensed assets for each of the segments as of June 30, 2025 and December 31, 2024 are as follows (in thousands):
|  | June 30, 2025 |  | December 31, 2024
Condensed assets: |  |  |  |
Office (1) |  | $ | 422,106 |  |  | $ | 421,438 |
Hotel |  | 113,590 |  |  | 108,963 |
Multifamily (1) |  | 274,307 |  |  | 279,308 |
Lending |  | 70,849 |  |  | 71,192 |
Non-segment assets |  | 4,172 |  |  | 8,654 |
Total assets |  | $ | 885,024 |  |  | $ | 889,555 |
(1)Beginning in the quarter ended December 31, 2024, the Company reclassified its consolidated property located at 4750 Wilshire Boulevard (Backlot) in Los Angeles, California to include the property in the multifamily segment, from its previous classification in the office segment. In the above table, the assets related to 4750 Wilshire Boulevard (Backlot) as of June 30, 2025 and December 31, 2024 are included in with Multifamily.

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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 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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