v3.26.1
Segment Information
3 Months Ended
Mar. 31, 2026
Segment Information  
Segment Information

Note 17 – Segment Information

The Company owns and operates residential real estate assets that generate rental and other property-related income through the leasing of residential units to a diverse base of tenants. The Company evaluates operating performance on an individual property investment level and based on the investments’ similar economic characteristics. The Company’s Chief Operating Decision Makers (“CODMs”) are its Chief Executive Officer, Chief Investment Officer and Chief Financial Officer. The CODMs’ primary financial measure for operating performance is NOI as it measures the core operations of property performance by excluding corporate level expenses and those other items not related to property operating performance. CODMs are provided financial reports which include an income statement with property revenues, property operating expenses, and property net income. These financial reports assist the CODMs in assessing the Company’s financial performance and in allocating resources appropriately. The Company views its residential real estate assets as two reportable segments consisting of (i) residential communities and (ii) scattered single-family homes. The CODMs do not distinguish or group operations on a geographic, tenant or other basis when assessing the financial performance of the Company’s portfolio of properties/investments.

Residential communities segment includes the acquisition, ownership, management, renovation, construction, and development of residential communities, which include both detached single-family home communities and attached unit communities such as apartments, townhouses, and duplexes. Each residential community is, generally, located on a single, contiguous land parcel and has amenities including clubhouses, gyms, pools and common areas. In addition, these residential communities typically have onsite property management.

Scattered single-family homes segment includes the ownership, management, and renovation of scattered single-family homes, which are, generally, detached homes with no onsite property management.

The following table summarizes NOI by the Company’s reportable segments for the three months ended March 31, 2026 and 2025, and reconciles NOI to net loss attributable to common stockholders on the Company’s statements of operations and comprehensive income (loss) (amounts in thousands):

  ​ ​ ​

Three Months Ended March 31, 

2026

  ​ ​ ​

2025

Rental and other property revenues

 

  ​

 

  ​

Residential communities

$

12,751

$

8,109

Scattered single-family homes

 

6,950

 

7,801

Total rental and other property revenues

 

19,701

 

15,910

Property operating expenses

 

 

Residential communities

 

5,264

 

3,502

Scattered single-family homes

 

3,817

 

4,150

Total property operating expenses

 

9,081

 

7,652

Net operating income

 

 

Residential communities

 

7,487

 

4,607

Scattered single-family homes

 

3,133

 

3,651

Total net operating income

 

10,620

 

8,258

Reconciling items:

 

 

Interest income from loan investments

 

 

503

Property management and asset management fee expenses

 

(1,571)

 

(1,325)

General and administrative expenses

 

(3,114)

 

(3,057)

Management fees to related party

 

(2,688)

 

(2,540)

Acquisition and other transaction costs

 

(43)

 

(76)

Weather-related losses, net

 

(250)

 

Impairment of real estate investments

(601)

(124)

Depreciation and amortization

 

(8,858)

 

(7,492)

Other expense, net

 

(882)

 

(59)

Income from preferred equity investments

 

1,531

 

3,110

Share of net earnings of equity method investment

 

296

 

Recovery of credit losses, net

 

 

102

Gain on sale of real estate investments, net

 

584

 

827

Loss on extinguishment of debt

 

(36)

 

(4)

Interest expense, net

 

(6,485)

 

(6,211)

Interest income

 

1,276

 

1,104

Income tax expense

 

(76)

 

(346)

Net loss

 

(10,297)

 

(7,330)

Preferred stock dividends

(2,609)

(2,010)

Preferred stock accretion

(993)

(523)

Net loss attributable to noncontrolling interests

 

10,466

 

7,334

Net loss attributable to common stockholders

$

(3,433)

$

(2,529)

The following table reconciles the Company’s total rental and other property revenues for reportable segments to total revenues on the Company’s consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2026 and 2025 (amounts in thousands):

  ​ ​ ​

Three Months Ended March 31, 

2026

  ​ ​ ​

2025

Revenues

 

  ​

 

  ​

Rental and other property revenues

 

  ​

 

  ​

Residential communities

$

12,751

$

8,109

Scattered single-family homes

 

6,950

 

7,801

Total rental and other property revenues

 

19,701

 

15,910

Interest income from loan investments

 

 

503

Total revenues

$

19,701

$

16,413

At March 31, 2026 and December 31, 2025, net real estate assets totaled $558.0 million and $556.2 million for residential communities, respectively, and $288.9 million and $311.8 million for scattered single-family homes, respectively.