| Segment Reporting |
Note 17 - Segment Reporting The Company operates in two segments, Real Estate and Real Estate Debt, both of which are reportable segments. The Real Estate segment includes all of the Company's activities related to investments in properties and the Real Estate Debt segment includes all of the Company's activities related to investments in commercial mortgage and mezzanine loans and real estate-related securities. Other Corporate includes cash and cash equivalents, general and administrative expenses, management fee, performance participation allocation, interest expense and other income. Segment information is utilized by the Company’s chief operating decision maker (the “CODM”) to assess performance and to allocate resources. The CODM is the Company's senior executive committee, comprised of its chief executive officer, chief operating officer and chief financial officer. Segment net operating income ("Segment NOI") is the key performance measure used by the CODM in evaluating the performance of each reportable segment. The CODM uses Segment NOI to make key operating decisions, such as identifying attractive investment opportunities and/or dispositions of existing investments, determining the sources and suitable level of leverage used to finance the Company's investments and deciding the appropriate amount and timing of the Company’s distributions. Segment NOI for the Real Estate segment is calculated as revenue less rental operating expenses. Segment NOI for the Real Estate Debt segment is equal to income from investments in real estate debt. Segment NOI excludes corporate level transactions. The following table sets forth the total assets by segment as of December 31, 2025 and December 31, 2024 ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
Real Estate |
|
$ |
756,943 |
|
|
$ |
282,996 |
|
Real Estate Debt |
|
|
1,262,813 |
|
|
|
892,203 |
|
Other Corporate |
|
|
61,395 |
|
|
|
82,405 |
|
Total Assets |
|
$ |
2,081,151 |
|
|
$ |
1,257,604 |
|
The following table sets forth the financial results by segment for the year ended December 31, 2025 ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
|
|
Real Estate Debt |
|
|
Other Corporate |
|
|
Total |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Rental revenue |
|
$ |
37,003 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
37,003 |
|
Total revenues |
|
|
37,003 |
|
|
|
— |
|
|
|
— |
|
|
|
37,003 |
|
Segment Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Rental property operating |
|
|
(8,527 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8,527 |
) |
Total segment expenses |
|
|
(8,527 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8,527 |
) |
Income from investments in real estate debt |
|
|
— |
|
|
|
91,406 |
|
|
|
— |
|
|
|
91,406 |
|
Segment net operating income |
|
$ |
28,476 |
|
|
$ |
91,406 |
|
|
$ |
— |
|
|
$ |
119,882 |
|
Other income and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Other income |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,900 |
|
|
$ |
3,900 |
|
Interest expense, net |
|
|
— |
|
|
|
— |
|
|
|
(20,083 |
) |
|
|
(20,083 |
) |
Depreciation and amortization |
|
|
(16,594 |
) |
|
|
— |
|
|
|
— |
|
|
|
(16,594 |
) |
General and administrative |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,054 |
) |
Management fee |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,212 |
) |
Performance participation allocation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(389 |
) |
Total other income and expenses |
|
|
(16,594 |
) |
|
|
— |
|
|
|
(16,183 |
) |
|
|
(52,432 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
$ |
67,450 |
|
Net income attributable to non-controlling interests in the Operating Partnership |
|
|
|
|
|
|
|
|
|
|
$ |
6,166 |
|
Net income (loss) attributable to preferred stockholders |
|
|
|
|
|
|
|
|
|
|
$ |
15 |
|
Net income attributable to ARIS stockholders |
|
|
|
|
|
|
|
|
|
|
$ |
61,269 |
|
The following table sets forth the financial results by segment for the year ended December 31, 2024 ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
|
|
Real Estate Debt |
|
|
Other Corporate |
|
|
Total |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Rental revenue |
|
$ |
21,657 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
21,657 |
|
Total revenues |
|
|
21,657 |
|
|
|
— |
|
|
|
— |
|
|
|
21,657 |
|
Segment Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Rental property operating |
|
|
(4,960 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4,960 |
) |
Total segment expenses |
|
|
(4,960 |
) |
|
|
— |
|
|
|
— |
|
|
|
(4,960 |
) |
Income from investments in real estate debt |
|
|
— |
|
|
|
62,094 |
|
|
|
— |
|
|
|
62,094 |
|
Segment net operating income |
|
$ |
16,697 |
|
|
$ |
62,094 |
|
|
$ |
— |
|
|
$ |
78,791 |
|
Other income and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Other income |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,558 |
|
|
$ |
5,558 |
|
Interest expense, net |
|
|
— |
|
|
|
— |
|
|
|
(10,372 |
) |
|
|
(10,372 |
) |
Depreciation and amortization |
|
|
(8,996 |
) |
|
|
— |
|
|
|
— |
|
|
|
(8,996 |
) |
General and administrative |
|
|
— |
|
|
|
— |
|
|
|
(6,197 |
) |
|
|
(6,197 |
) |
Management fee |
|
|
— |
|
|
|
— |
|
|
|
(7,832 |
) |
|
|
(7,832 |
) |
Performance participation allocation |
|
|
— |
|
|
|
— |
|
|
|
(443 |
) |
|
|
(443 |
) |
Total other income and expenses |
|
|
(8,996 |
) |
|
|
— |
|
|
|
(19,286 |
) |
|
|
(28,282 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
$ |
50,509 |
|
Net income attributable to non-controlling interests in the Operating Partnership |
|
|
|
|
|
|
|
|
|
|
$ |
6,928 |
|
Net income (loss) attributable to preferred stockholders |
|
|
|
|
|
|
|
|
|
|
$ |
14 |
|
Net income attributable to ARIS stockholders |
|
|
|
|
|
|
|
|
|
|
$ |
43,567 |
|
The following table sets forth the financial results by segment for the year ended December 31, 2023 ($ in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate |
|
|
Real Estate Debt |
|
|
Other Corporate |
|
|
Total |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
— |
|
Rental revenue |
|
$ |
6,912 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,912 |
|
Total revenues |
|
|
6,912 |
|
|
|
— |
|
|
|
— |
|
|
|
6,912 |
|
Segment Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Rental property operating |
|
|
(834 |
) |
|
|
— |
|
|
|
— |
|
|
|
(834 |
) |
Total segment expenses |
|
|
(834 |
) |
|
|
— |
|
|
|
— |
|
|
|
(834 |
) |
Income from investments in real estate debt |
|
|
— |
|
|
|
17,490 |
|
|
|
— |
|
|
|
17,490 |
|
Segment net operating income |
|
$ |
6,078 |
|
|
$ |
17,490 |
|
|
$ |
— |
|
|
$ |
23,568 |
|
Other income and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Other income |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
6,241 |
|
|
$ |
6,241 |
|
Interest expense, net |
|
|
— |
|
|
|
— |
|
|
|
(554 |
) |
|
|
(554 |
) |
Depreciation and amortization |
|
|
(2,544 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,544 |
) |
General and administrative |
|
|
— |
|
|
|
— |
|
|
|
(5,380 |
) |
|
|
(5,380 |
) |
Management fee |
|
|
— |
|
|
|
|
|
|
(3,440 |
) |
|
|
(3,440 |
) |
Performance participation allocation |
|
|
— |
|
|
|
|
|
|
(562 |
) |
|
|
(562 |
) |
Total other income and expenses |
|
|
(2,544 |
) |
|
|
— |
|
|
|
(3,695 |
) |
|
|
(6,239 |
) |
Net income |
|
|
|
|
|
|
|
|
|
|
$ |
17,329 |
|
Net income attributable to non-controlling interests in the Operating Partnership |
|
|
|
|
|
|
|
|
|
|
$ |
4,570 |
|
Net income (loss) attributable to preferred stockholders |
|
|
|
|
|
|
|
|
|
|
$ |
— |
|
Net income attributable to ARIS stockholders |
|
|
|
|
|
|
|
|
|
|
$ |
12,759 |
|
|