v3.25.1
Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 11 – SEGMENT REPORTING

 

The Company operates in two operating and reportable segments which consist of (1) the operations, leasing and management of its leased commercial properties, herein known as the “Property Investment Portfolio” segment, and (2) advisory and brokerage services related to commercial properties, herein known as the “Real Estate Services” segment. The Company has determined that these reportable segments were strategic business units that offer different products. Currently, these reportable segments are being managed separately based on the fundamental differences in their operations.

The Company’s Property Investment Portfolio segment generates revenues from its operating leases with its tenants. Rental income is accounted for pursuant to ASC Topic 842 “Leases” and includes base rents that each tenant pays in accordance with the terms of its respective lease and is reported on a straight-line basis over the non-cancellable term of the lease, which includes the effects of rent abatements under the leases.

 

The Company’s Real Estate Services segment generates revenues which includes brokerage revenues consisting of real estate sales commissions and assignment fees, and revenues from advisory services for services performed pursuant to its consulting agreements with clients.

 

Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to “Corporate & Unallocated.”

 

The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. The decisions concerning the allocation of the Company’s resources are made by the CODM with oversight by the Board of Directors. The CODM evaluates the performance of each segment and makes decisions concerning the allocation of resources based upon segment operating profit (loss), generally defined as income or loss before interest expense and income taxes. The CODM assesses segment performance by using each segments’ operating income (loss) and considers budget-to-actual variances on a periodic basis (at least quarterly) when making decisions about operational planning, including whether to invest resources into the segments or into other parts of the Company. Segment assets are reviewed by the Company’s CODM and are disclosed below. The accounting policies of the Property investment portfolio and Real estate services segment are the same as those described in Note 2 of the Notes to Consolidated Financial Statements.

 

Three Months Ended March 31, 2025

 

   Property Investment Portfolio   Real Estate Services   Corporate and Unallocated   Consolidated 
Net revenues  $760,892   $213,660   $
-
   $974,552 
                     
Operating expenses (excluding depreciation and amortization)   188,101    19,667    249,505    457,273 
Depreciation and amortization   87,811    
-
    697    88,508 
Income (loss) from operations   484,980    193,993    (250,202)   428,771 
Interest expense   (164,541)   
-
    (30,000)   (194,541)
Other income   
-
    
-
    18    18 
Loss from derivative – interest rate swap   (88,390)   
-
    
-
    (88,390)
Income (loss) before provision for income taxes   232,049    193,993    (280,184)   145,858 
Provision for income taxes   
-
    
-
    
-
    
-
 
Net income (loss)  $232,049   $193,993   $(280,184)  $145,858 

 

Three Months Ended March 31, 2024

 

   Property Investment Portfolio   Real Estate Services   Corporate and Unallocated   Consolidated 
Net revenues  $ 691,292   $ 145,760   $
-
   $ 837,052 
                 
Operating expenses (excluding depreciation and amortization)   191,945    169,366    257,185    618,496 
Depreciation and amortization   88,086    
-
    1,561    89,647 
Income (loss) from operations   411,261    (23,606)   (258,746)   128,909 
Interest expense   (128,039)   
-
    (30,000)   (158,039)
Income from derivative – interest rate swap   125,603    
-
    
-
    125,603 
Income (loss) before provision for income taxes   408,825    (23,606)   (288,746)   96,473 
Provision for income taxes   
-
    
-
    
-
    
-
 
Net income (loss)  $408,825   $(23,606)  $(288,746)  $96,473 

 

   March 31,
2025		   December 31,
2024		 
Total assets by segment on March 31, 2025 and December 31, 2024 was as follows:        
Property investment portfolio  $15,509,896   $15,546,075 
Real estate services   71,211    121,139 
Corporate and unallocated   1,035,242    514,925 
   $16,616,349   $16,182,139 

All assets are located in the United States.