v3.26.1
SEGMENT INFORMATION
 9 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 10 – SEGMENT INFORMATION

 

The Company operates in three reportable segments: (i) Hotel Operations (the Hilton San Francisco Financial District and its five-level parking garage), (ii) Real Estate Operations (the multifamily and commercial rental portfolio), and (iii) Investment Transactions (investment of cash in marketable securities and other investments). The chief operating decision maker (“CODM”) is a group of senior executives who collectively use segment results to evaluate performance and allocate resources based on the information described below.

 

Segment results are evaluated using segment income (loss), which reflects revenues from external customers less segment operating expenses, including property operating expenses, utilities, real estate taxes, insurance and certain general and administrative expenses, as presented in the table below. Segment income (loss) excludes interest expense, depreciation and amortization, gain on sale of real estate, net gains (losses) from investments, gains (losses) on extinguishment of debt, and income taxes, which are reflected below segment income (loss) as reconciling items to consolidated income (loss). There are no intersegment revenues. “Corporate” consists primarily of unallocated corporate general and administrative costs and other items not allocated to the reportable segments.

 

All long-lived assets and revenues are attributable to operations in the United States.

  

As of and for the three months ended  Hotel   Real Estate   Investment         
March 31, 2026  Operations   Operations   Transactions   Corporate   Total 
Revenues  $16,497,000   $3,875,000   $-   $-   $20,372,000 
Property operating expenses   (10,120,000)   (1,063,000)   -    -    (11,183,000)
Utilities   (496,000)   (344,000)   -    -    (840,000)
Real estate taxes   (540,000)   (579,000)   -    -    (1,119,000)
Insurance   (218,000)   (369,000)   -    -    (587,000)
General and administrative   -    -    -    (675,000)   (675,000)
Segment income (loss)   5,123,000    1,520,000    -    (675,000)   5,968,000 
Interest expense - mortgage   (2,476,000)   (717,000)   -    -    (3,193,000)
Depreciation and amortization expense   (941,000)   (767,000)   -    -    (1,708,000)
Gain on insurance recovery   -    124,000    -    -    124,000 
Loss from investments   -    -    (342,000)   -    (342,000)
Income tax expense   -    -    -    (254,000)   (254,000)
Net income (loss)  $1,706,000   $160,000   $(342,000)  $(929,000)  $595,000 
Total assets  $51,967,000   $43,507,000   $1,096,000   $6,938,000   $103,508,000 

 

As of and for the three months ended   Hotel    Real Estate    Investment           
March 31, 2025   Operations    Operations    Transactions    Corporate    Total 
Revenues  $12,210,000   $4,614,000   $-   $-   $16,824,000 
Property operating expenses   (8,587,000)   (1,029,000)   -    -    (9,616,000)
Utilities   (398,000)   (333,000)   -    -    (731,000)
Real estate taxes   (478,000)   (601,000)   -    -    (1,079,000)
Insurance   (222,000)   (468,000)   -    -    (690,000)
General and administrative   -    -    -    (707,000)   (707,000)
Segment income (loss)   2,525,000    2,183,000    -    (707,000)   4,001,000 
Interest expense - mortgage   (2,459,000)   (693,000)   -    -    (3,152,000)
Depreciation and amortization expense   (899,000)   (752,000)   -    -    (1,651,000)
Gain on extinguishment of debt   1,416,000    -    -    -    1,416,000 
Loss from investments   -    -    (1,379,000)   -    (1,379,000)
Income tax benefit   -    -    -    15,000    15,000 
Net income (loss)  $583,000   $738,000   $(1,379,000)  $(692,000)  $(750,000)
Total assets  $50,860,000   $46,635,000   $751,000   $4,995,000   $103,241,000 

 

 

For the three months ended March 31, 2026, segment income increased to $5,968,000 from $4,001,000 for the three months ended March 31, 2025, reflecting improved results in Hotel Operations and higher segment income in Real Estate Operations. Hotel Operations segment income increased to $5,123,000 from $2,525,000, while Real Estate Operations segment income decreased to $1,520,000 compared to $2,183,000. Corporate expense decreased to $675,000 from $707,000. Net income was $595,000 for the three months ended March 31, 2026, compared to a net loss of $750,000 for the three months ended March 31, 2025. The improvement was primarily attributable to lower loss from investments to $342,000 compared to $1,379,000.

 

As of and for the nine months ended  Hotel   Real Estate   Investment         
March 31, 2026  Operations   Operations   Transactions   Corporate   Total 
Revenues  $41,576,000   $14,010,000   $-   $-   $55,586,000 
Property operating expenses   (28,495,000)   (3,215,000)   -    -    (31,710,000)
Utilities   (1,439,000)   (1,020,000)   -    -    (2,459,000)
Real estate taxes   (1,620,000)   (1,732,000)   -    -    (3,352,000)
Insurance   (728,000)   (1,145,000)   -    -    (1,873,000)
General and administrative   -    -    -    (2,121,000)   (2,121,000)
Segment income (loss)   9,294,000    6,898,000    -    (2,121,000)   14,071,000 
Interest expense - mortgage   (7,354,000)   (2,253,000)   -    -    (9,607,000)
Depreciation and amortization expense   (2,780,000)   (2,284,000)   -    -    (5,064,000)
Gain from sale of real estate   -    3,508,000    -    -    3,508,000 
Gain on insurance recovery   -    124,000    -    -    124,000 
Loss from investments   -    -    (841,000)   -    (841,000)
Income tax expense   -    -    -    (1,793,000)   (1,793,000)
Net (loss) income  $(840,000)  $5,993,000   $(841,000)  $(3,914,000)  $398,000 
Total assets  $51,967,000   $43,507,000   $1,096,000   $6,938,000   $103,508,000 

 

As of and for the nine months ended   Hotel    Real Estate    Investment           
March 31, 2025   Operations    Operations    Transactions    Corporate    Total 
Revenues  $33,995,000   $14,176,000   $-   $-   $48,171,000 
Property operating expenses   (24,039,000)   (3,032,000)   -    -    (27,071,000)
Utilities   (1,415,000)   (1,012,000)   -    -    (2,427,000)
Real estate taxes   (1,434,000)   (1,709,000)   -    -    (3,143,000)
Insurance   (644,000)   (1,343,000)   -    -    (1,987,000)
General and administrative   -    -    -    (2,244,000)   (2,244,000)
Segment income (loss)   6,463,000    7,080,000    -    (2,244,000)   11,299,000 
Interest expense - mortgage   (8,128,000)   (2,068,000)   -    -    (10,196,000)
Depreciation and amortization expense   (2,731,000)   (2,236,000)   -    -    (4,967,000)
Gain on extinguishment of debt   1,416,000    -    -    -    1,416,000 
Loss from investments   -    -    (2,388,000)   -    (2,388,000)
Income tax expense   -    -    -    (463,000)   (463,000)
Net (loss) income  $(2,980,000)  $2,776,000   $(2,388,000)  $(2,707,000)  $(5,299,000)
Total assets  $50,860,000   $46,635,000   $751,000   $4,995,000   $103,241,000 

 

For the nine months ended March 31, 2026, segment income increased to $14,071,000 from $11,299,000 for the nine months ended March 31, 2025. Hotel Operations segment income increased to $9,294,000 from $6,463,000, and Real Estate Operations segment income decreased to $6,898,000 from $7,080,000. Corporate expense was $2,121,000 compared to $2,244,000. Net income was $398,000 for the nine months ended March 31, 2026, compared to net loss of $5,299,000 for the nine months ended March 31, 2025, primarily reflecting a gain on sale of real estate of $3,508,000 in 2026 (none in 2025), a decrease in loss from investments to $841,000 from $2,388,000, and a decrease in mortgage interest expense to $9,607,000 from $10,196,000, partially offset by income tax expense of $1,793,000 in 2026 compared to $463,000 in 2025. For the nine months ended March 31, 2025 the Hotel segment also benefited from lower expenses due to a management incentive fee waiver.