v3.25.2
Segment Disclosures
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Disclosures

Note 8. Segment Disclosures

We historically operated in two reportable business segments: (i) student housing and (ii) senior housing. Our student housing operations consisted of our wholly-owned student housing properties, primarily consisting of month-to-month rental revenue that these student properties produced. Our senior housing operations consist of our wholly-owned senior housing properties, primarily consisting of month-to-month rental revenue and related ancillary revenue that these senior housing properties produce. The reportable segments offer different products and services to different customers and are therefore managed separately. On June 7, 2024, the Company executed an agreement of purchase and sale with an unaffiliated third

party for the sale of the Fayetteville Property, our sole remaining student housing property. In June 2024, we concluded that the Fayetteville Property sale qualified as discontinued operations as the property met the criteria of held for sale, and the disposal represents a strategic shift in our business as we will no longer own or operate student housing properties. Please see Note 3 - Discontinued Operations for additional details. On July 31, 2024, the Fayetteville Property was sold. Subsequent to the sale, the Company only operates in a single segment.

The chief operating decision maker (“CODM”) is our chief executive officer. Our CODM and other management regularly evaluate performance based upon net loss from continuing operations. Our CODM uses net loss from continuing operations when making decisions about allocating capital and personnel. On a monthly and quarterly basis, our CODM considers budget-to-actual and period-to-period variances when evaluating company and property performance.

Reportable segment asset information is not provided to the CODM as the CODM does not use segment asset information to evaluate the business and allocate resources. For all periods presented, substantially all of the Company's real estate assets, intangible assets, other assets, accounts payable and accrued liabilities, and debt related to continuing operations are associated with the senior housing.

The following table summarizes information for the reportable segment for the three and six months ended June 30, 2025 and 2024:

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Leasing and related revenues

$

9,324,977

 

 

$

8,615,846

 

 

$

18,365,157

 

 

$

16,991,857

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

 

 

 

 

 

 

 

 

 

 

Payroll and administrative

 

4,057,430

 

 

 

3,791,306

 

 

 

7,881,791

 

 

 

7,433,053

 

Food and related items

 

514,111

 

 

 

544,914

 

 

 

1,007,011

 

 

 

1,065,606

 

Third-party property management fees

 

455,166

 

 

 

420,523

 

 

 

896,465

 

 

 

829,139

 

Utilities

 

387,477

 

 

 

437,878

 

 

 

839,846

 

 

 

874,335

 

Repairs and maintenance

 

240,606

 

 

 

290,925

 

 

 

500,519

 

 

 

617,640

 

Property taxes

 

256,533

 

 

 

246,374

 

 

 

513,062

 

 

 

473,665

 

Other direct property costs (1)

 

523,842

 

 

 

648,941

 

 

 

1,126,020

 

 

 

1,344,823

 

Total property operating expenses

 

6,435,165

 

 

 

6,380,861

 

 

 

12,764,714

 

 

 

12,638,261

 

Other operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses – affiliates

 

513,609

 

 

 

502,928

 

 

 

1,023,306

 

 

 

1,002,320

 

General and administrative

 

541,728

 

 

 

713,064

 

 

 

1,067,116

 

 

 

1,145,987

 

Depreciation

 

1,379,295

 

 

 

1,335,039

 

 

 

2,742,229

 

 

 

2,657,048

 

Total other operating expenses

 

2,434,632

 

 

 

2,551,031

 

 

 

4,832,651

 

 

 

4,805,355

 

Income (loss) from operations

 

455,180

 

 

 

(316,046

)

 

 

767,792

 

 

 

(451,759

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(1,297,330

)

 

 

(1,319,794

)

 

 

(2,586,221

)

 

 

(2,645,077

)

Interest expense – debt issuance costs

 

(35,526

)

 

 

(35,525

)

 

 

(71,050

)

 

 

(71,050

)

Other income (expense)

 

135,686

 

 

 

(36,413

)

 

 

105,397

 

 

 

(71,270

)

Net loss from continuing operations

$

(741,990

)

 

$

(1,707,778

)

 

$

(1,784,082

)

 

$

(3,239,156

)
(1)
Primarily includes property insurance, advertising expense, and other miscellaneous direct property costs.