v3.25.1
Note 17 - Segment Reporting
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 17 – Segment Reporting

The Company operates as a single reporting segment that derives revenues primarily from rental income. The accounting policies are consistent with those described above in the 2024 Form 10-K. The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer. Net operating income (“NOI”) is the measure used by the Company’s CODM to assess the operating segment’s performance. The Company defines NOI as rental income less property operating expenses, including real estate taxes. The Company also excludes the impact of straight-line rent revenue, net amortization of above and below market leases, depreciation, interest, impairments and gains or losses of real estate assets and other significant infrequent items that create volatility in the Company’s results and make it difficult to determine the results of the Company’s core ongoing business. NOI is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, NOI should not be considered as an alternative to cash flows or as a measure of liquidity. Not all companies calculate NOI in the same manner. The Company considers NOI to be an appropriate supplemental measure to net income because it provides additional information to allow management, investors and the Company’s current and potential creditors to evaluate and compare the Company’s core operating results.

The table below compares NOI of the Company’s reportable segment for the three months ended March 31, 2025 and 2024 and the reconciliation of segment NOI to net loss:

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Rental income (1)

 

$

10,070

 

 

$

9,240

 

Property operating expenses

 

 

 

 

 

 

Property taxes

 

 

1,041

 

 

 

1,046

 

Contract maintenance

 

 

933

 

 

 

737

 

Utilities

 

 

370

 

 

 

484

 

Repairs

 

 

229

 

 

 

232

 

Other segment items (2)

 

 

532

 

 

 

507

 

Total property operating expenses

 

 

3,105

 

 

 

3,006

 

Segment net operating income

 

 

6,965

 

 

 

6,234

 

 

 

 

 

 

 

Reconciliation of segment net operating income to net loss

 

 

 

 

 

 

Commissions

 

 

707

 

 

 

502

 

Management and other income

 

 

57

 

 

 

58

 

Straight-line rent revenue

 

 

(143

)

 

 

352

 

Amortization of above and below market lease, net

 

 

(85

)

 

 

(81

)

Cost of services

 

 

(576

)

 

 

(421

)

Depreciation and amortization

 

 

(3,580

)

 

 

(3,819

)

Impairment of real estate assets

 

 

(43

)

 

 

(110

)

Bad debt recovery (expense)

 

 

71

 

 

 

(142

)

General and administrative

 

 

(3,579

)

 

 

(3,480

)

Net interest and other income

 

 

165

 

 

 

217

 

Derivative fair value adjustment

 

 

(582

)

 

 

889

 

Net (loss) gain on fair value change on debt held under the fair value option

 

 

(240

)

 

 

2,343

 

Interest expense

 

 

(4,765

)

 

 

(4,333

)

Loss on extinguishment of debt

 

 

—

 

 

 

(7

)

Other expense

 

 

(1

)

 

 

(6

)

Income tax expense, net

 

 

—

 

 

 

(134

)

Net loss

 

$

(5,629

)

 

$

(1,938

)

 

 

(1)
Excludes straight-line revenue and net amortization of above and below market leases.
(2)
Other segment items include expenses relating to insurance, administrative expenses, payroll and related items and management expenses.