v3.26.1
Note 9 - Segment Reporting
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

9. Segment Reporting

 

The Company is a New York City real estate investment trust that is focused on developing, redeveloping and operating properties in the commercial and residential space.

 

Our Chief Operating Decision Maker (“CODM”), represented by our Co-Chairman and Chief Executive Officer, reviews the results in which the revenue and Income from Operations is divided between the commercial and residential performance. This metric enables the CODM to evaluate how the business is growing, as revenue is the key driver of growth. Additionally, the CODM uses segment income (loss) to allocate resources in the annual budgeting and forecasting process. The CODM considers budget to actual variances when making decisions about allocating capital to each segment.

 

The Company has classified its reporting segments into commercial and residential rental properties. The commercial reporting segment includes the 141 Livingston Street property and portions of the 250 Livingston Street, Tribeca House, Dean Street and Aspen properties. The residential reporting segment includes the Flatbush Gardens property, the Clover House property, the 10 West 65th Street property, the 1010 Pacific Street property and portions of the 250 Livingston Street, Tribeca House, Dean Street and Aspen properties.

 

Presented below are reconciliations of the reportable segment total revenues to the consolidated revenues, the reportable segment total operating expenses to consolidate operating expenses, the reportable income from operations to the consolidated income from operations, the segment and consolidated income from operations to segment and consolidated net income(loss), the reportable segment assets to the consolidated assets, the reportable segment interest expense to the consolidated interest expense and the reportable segment capital expenditures to the consolidated capital expenditures.

 

Three months ended March 31, 2026

  

Commercial

    

Residential

    

Total

  

Rental income

   $ 6,211     $ 31,904     $ 38,115  

Total revenues

     6,211       31,904       38,115  

Property operating expenses

     1,209       9,121       10,330  

Real estate taxes and insurance

     3,125       4,572       7,697  

General and administrative

     867       3,240       4,107  

Depreciation and amortization

     1,575       6,404       7,979  

Total operating expenses

     6,776       23,337       30,113  

Litigation Settlement and other

     -       (3,600 )     (3,600 )

Income (Loss) from operations

   $ (565 )   $ 4,967     $ 4,402  

Interest Expense

     (4,141 )     (11,405 )     (15,546 )

Income (Loss)

   $ (4,706 )   $ (6,438 )   $ (11,144 )

 

 

Three months ended March 31, 2025

  

Commercial

    

Residential

    

Total

  

Rental income

   $ 10,208     $ 29,190     $ 39,398  

Total revenues

     10,208       29,190       39,398  

Property operating expenses

     1,360       8,751       10,111  

Real estate taxes and insurance

     2,963       4,664       7,627  

General and administrative

     694       3,131       3,825  

Depreciation and amortization

     1,527       6,109       7,636  
Impairment of Long-Lived Assets     -       33,780       33,780  

Total operating expenses

     6,544       56,435       62,979  

Income (Loss) from operations

   $ 3,664     $ (27,245 )   $ (23,581 )

Interest Expense, Net

     (2,492 )     (9,030 )     (11,522 )

Income (Loss)

   $ 1,172     $ (36,275 )   $ (35,103 )

 

The Company’s total assets by segment are as follows, as of:

 

   

Commercial

    

Residential

    

Total

  

March 31, 2026

   $ 305,040     $ 920,956     $ 1,225,996  

December 31, 2025

     307,926     $ 926,393     $ 1,234,319  

 

The Company’s capital expenditures, including acquisition by segment for the three months ended March 31, 2026 and 2025, is as follows:

 

Three months ended March 31,

  

Commercial

    

Residential

    

Total

  

2026

   $ 118     $ 2,283     $ 2,402  

2025

     634     $ 10,647     $ 11,281  

 

The Company allocates assets, expenses and capital expenditures to each reportable segment by building. For those buildings that are shared between the segment’s allocations are done based on the percentage relative square footage of the building that is used to generate revenue for the segment. All corporate costs are allocated based on the percentage of square footage of the segment.