v3.26.1
SEGMENT REPORTING
3 Months Ended
Mar. 31, 2026
SEGMENT REPORTING  
SEGMENT REPORTING

NOTE 3 – segment reporting

Segment information is presented in accordance with a “management approach,” which designates the internal reporting used by the Company's CODM for making decisions and assessing performance as the source of the Company’s reportable segments. The Company’s segments are organized in a manner consistent with which discrete financial information is available and evaluated regularly by the CODM in deciding how to allocate resources and assess performance.

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenue and incur expenses, and about which separate financial information is regularly evaluated by the CODM. The CODM is the Company’s chief executive officer.

Each of the operating segments are directly responsible for revenue and expenses related to their operations, including direct segment general and administrative expenses. The CODM assesses the performance of each operating segment using information about operating income (loss) as the primary measure of performance but does not evaluate segments using discrete asset information. There were no material inter-segment transactions during the three months ended March 31, 2026 and 2025, and the Company does not allocate depreciation and amortization, interest, administration of REIT, loss on impairment of property or other income (loss) to the operating segments. The accounting policies for segment reporting are the same as for the Company as a whole.

We report our results in two reportable segments: residential and commercial properties. Our residential properties include multifamily properties. Our commercial properties include retail, office, industrial, and medical properties. We assess and measure operating results based on net operating income (“NOI”), which we define as total real estate revenues less real estate expenses (which consist of real estate taxes, property management fees, utilities, repairs and maintenance, insurance and direct administrative costs). We believe NOI is an important measure of operating performance even though it should not be considered an alternative to net income or cash flow from operating activities.

Segment Revenues and Net Operating Income

The revenues and net operating income for the reportable segments (residential and commercial) are summarized as follows for the three months ended March 31, 2026 and 2025, along with reconciliations to the consolidated financial statements. Segment assets are also reconciled to Total Assets as reported in the consolidated financial statements.

Three months ended March 31, 2026

Three months ended March 31, 2025

  ​ ​ ​

Residential

  ​ ​ ​

Commercial

  ​ ​ ​

Total

  ​ ​ ​

Residential

  ​ ​ ​

Commercial

  ​ ​ ​

Total

(in thousands)

(in thousands)

Income from rental operations

$

39,299

$

4,848

$

44,147

$

37,191

$

4,989

$

42,180

Real Estate Expenses

Real Estate Taxes

4,053

459

4,512

3,394

466

3,860

Property Management

5,165

229

5,394

4,915

235

5,150

Utilities

4,111

274

4,385

3,721

282

4,003

Repairs and Maintenance

7,161

423

7,584

6,599

524

7,123

Insurance

1,444

36

1,480

1,527

33

1,560

Expenses from rental operations

21,934

1,421

23,355

20,156

1,540

21,696

Net operating income

$

17,365

$

3,427

$

20,792

$

17,035

$

3,449

$

20,484

Depreciation and amortization 1

7,755

7,025

Interest 1

7,083

6,270

Administration of REIT 1

1,601

1,500

Other income (expense) 1

(1,417)

782

Net income

$

5,770

$

4,907

1The financial information provided to the CODM for these expense categories are not reflected by segment to evaluate performance of our reportable segments.

Segment Assets and Accumulated Depreciation

As of March 31, 2026

  ​ ​ ​

Residential

  ​ ​ ​

Commercial

  ​ ​ ​

Total

(in thousands)

Real estate investments

$

1,023,021

$

166,386

$

1,189,407

Accumulated depreciation

(207,896)

(53,227)

(261,123)

Total real estate investments, net

$

815,125

$

113,159

$

928,284

Lease intangible assets, less accumulated amortization

238

1,505

1,743

Cash and cash equivalents

5,337

Restricted deposits

10,323

Investment in unconsolidated affiliates

29,854

Notes receivable

1,500

Notes receivable, affiliates

2,315

Assets held for sale

4,552

Other assets, net

19,403

Total Assets

$

1,003,311

As of December 31, 2025

  ​ ​ ​

Residential

  ​ ​ ​

Commercial

  ​ ​ ​

Total

(in thousands)

Real estate investments

$

989,224

$

170,115

$

1,159,339

Accumulated depreciation

(202,714)

(54,237)

(256,951)

Total real estate investments, net

$

786,510

$

115,878

$

902,388

Lease intangible assets, less accumulated amortization

365

1,633

1,998

Cash and cash equivalents

7,764

Restricted deposits

9,812

Investment in unconsolidated affiliates

29,791

Notes receivable

1,500

Notes receivable, affiliates

2,315

Assets held for sale

2,832

Other assets, net

20,228

Total Assets

$

978,628