| BUSINESS SEGMENT DATA |
NOTE 21. BUSINESS SEGMENT DATA The Company operates in two primary business segments: income properties and commercial loans and investments. Our income property operations consist of lease income from income producing properties and our business plan is focused on investing in additional income-producing properties. Our income property operations accounted for 65% and 71% of our identifiable assets as of June 30, 2026 and December 31, 2025, respectively, and 66% and 82% of our consolidated revenues for the six months ended June 30, 2026 and 2025, respectively. Our commercial loans and investment operations accounted for 34% and 25% of our identifiable assets as of June 30, 2026 and December 31, 2025, respectively, and 34% and 17% of our consolidated revenues for the six months ended June 30, 2026 and 2025, respectively. As of June 30, 2026, our portfolio of commercial loans and investments consisted of 18 commercial loan investments, of which one is a sales-type lease and four are related to properties acquired through sale-leaseback transactions whereby the tenants have future repurchase rights. The Company’s CODM evaluates segment performance based on total revenues less direct costs of revenues when making decisions about allocating capital to the segments. The Company’s reportable segments are strategic business units that offer different products. They are managed separately because each segment requires different management techniques, knowledge, and skill. Information about the Company’s operations in different segments for the three months ended June 30, 2026, is as follows (in thousands): | | | | | | | | | | Income Properties | | Commercial Loans and Investments | | Total | Revenues: | | | | | | | | | Lease Income | $ | 12,637 | | $ | — | | $ | 12,637 | Interest Income from Commercial Loans and Investments | | — | | | 7,331 | | | 7,331 | Total Revenues for Reportable Segments | | 12,637 | | | 7,331 | | | 19,968 | | | | | | | | | | Reconciliation to Consolidated Revenues | | | | | | | | | Other Revenues | | | | | | | | 34 | Total Consolidated Revenues | | | | | | | $ | 20,002 | | | | | | | | | | Operating Expenses: | | | | | | | | | Real Estate Expenses | | 2,085 | | | — | | | 2,085 | Total Revenues Less Direct Costs of Revenues | | 10,552 | | | 7,331 | | | 17,883 | Provision for Impairment | | 161 | | | 216 | | | 377 | Depreciation and Amortization | | 6,805 | | | — | | | 6,805 | Net Income From Operations for Reportable Segments | | 3,586 | | | 7,115 | | | 10,701 | | | | | | | | | | Reconciliation to Consolidated Net Income | | | | | | | | | Other Revenues | | | | | | | | 34 | General and Administrative Expenses | | | | | | | | (2,028) | Investment and Other Income | | | | | | | | 364 | Interest Expense | | | | | | | | (4,579) | Consolidated Net Income | | | | | | | $ | 4,492 |
Information about the Company’s operations in different segments for the three months ended June 30, 2025 is as follows (in thousands): | | | | | | | | | | Income Properties | | Commercial Loans and Investments | | Total | Revenues: | | | | | | | | | Lease Income | $ | 12,022 | | $ | — | | $ | 12,022 | Interest Income from Commercial Loans and Investments | | — | | | 2,737 | | | 2,737 | Total Revenues for Reportable Segments | | 12,022 | | | 2,737 | | | 14,759 | | | | | | | | | | Reconciliation to Consolidated Revenues | | | | | | | | | Other Revenues | | | | | | | | 104 | Total Consolidated Revenues | | | | | | | $ | 14,863 | | | | | | | | | | Operating Expenses: | | | | | | | | | Real Estate Expenses | | 2,105 | | | — | | | 2,105 | Total Revenues Less Direct Costs of Revenues | | 9,917 | | | 2,737 | | | 12,654 | Provision for Impairment | | 2,816 | | | (13) | | | 2,803 | Depreciation and Amortization | | 6,705 | | | — | | | 6,705 | Total Revenues Less Operating Expenses for Reportable Segments | | 396 | | | 2,750 | | | 3,146 | Gain on Disposition of Assets | | 938 | | | — | | | 938 | Net Income From Operations for Reportable Segments | | 1,334 | | | 2,750 | | | 4,084 | | | | | | | | | | Reconciliation to Consolidated Net Loss | | | | | | | | | Other Revenues | | | | | | | | 104 | General and Administrative Expenses | | | | | | | | (1,697) | Investment and Other Income | | | | | | | | 47 | Interest Expense | | | | | | | | (4,320) | Consolidated Net Loss | | | | | | | $ | (1,782) |
Information about the Company’s operations in different segments for the six months ended June 30, 2026, is as follows (in thousands): | | | | | | | | | | Income Properties | | Commercial Loans and Investments | | Total | Revenues: | | | | | | | | | Lease Income | $ | 25,239 | | $ | — | | $ | 25,239 | Interest Income from Commercial Loans and Investments | | — | | | 13,089 | | | 13,089 | Total Revenues for Reportable Segments | | 25,239 | | | 13,089 | | | 38,328 | | | | | | | | | | Reconciliation to Consolidated Revenues | | | | | | | | | Other Revenues | | | | | | | | 80 | Total Consolidated Revenues | | | | | | | $ | 38,408 | | | | | | | | | | Operating Expenses: | | | | | | | | | Real Estate Expenses | | 4,387 | | | — | | | 4,387 | Total Revenues Less Direct Costs of Revenues | | 20,852 | | | 13,089 | | | 33,941 | Provision for Impairment | | 161 | | | 724 | | | 885 | Depreciation and Amortization | | 14,020 | | | — | | | 14,020 | Total Revenues Less Operating Expenses for Reportable Segments | | 6,671 | | | 12,365 | | | 19,036 | Gain on Disposition of Assets | | 97 | | | — | | | 97 | Net Income From Operations for Reportable Segments | | 6,768 | | | 12,365 | | | 19,133 | | | | | | | | | | Reconciliation to Consolidated Net Income | | | | | | | | | Other Revenues | | | | | | | | 80 | General and Administrative Expenses | | | | | | | | (3,887) | Investment and Other Income | | | | | | | | 455 | Interest Expense | | | | | | | | (8,932) | Consolidated Net Income | | | | | | | $ | 6,849 |
Information about the Company’s operations in different segments for the six months ended June 30, 2025, is as follows (in thousands): | | | | | | | | | | Income Properties | | Commercial Loans and Investments | | Total | Revenues: | | | | | | | | | Lease Income | $ | 23,848 | | $ | — | | $ | 23,848 | Interest Income from Commercial Loans and Investments | | — | | | 5,038 | | | 5,038 | Total Revenues for Reportable Segments | | 23,848 | | | 5,038 | | | 28,886 | | | | | | | | | | Reconciliation to Consolidated Revenues | | | | | | | | | Other Revenues | | | | | | | | 183 | Total Consolidated Revenues | | | | | | | $ | 29,069 | | | | | | | | | | Operating Expenses: | | | | | | | | | Real Estate Expenses | | 4,139 | | | — | | | 4,139 | Total Revenues Less Direct Costs of Revenues | | 19,709 | | | 5,038 | | | 24,747 | Provision for Impairment | | 4,640 | | | 194 | | | 4,834 | Depreciation and Amortization | | 14,012 | | | — | | | 14,012 | Total Revenues Less Operating Expenses for Reportable Segments | | 1,057 | | | 4,844 | | | 5,901 | Gain on Disposition of Assets | | 2,089 | | | — | | | 2,089 | Net Income From Operations for Reportable Segments | | 3,146 | | | 4,844 | | | 7,990 | | | | | | | | | | Reconciliation to Consolidated Net Loss | | | | | | | | | Other Revenues | | | | | | | | 183 | General and Administrative Expenses | | | | | | | | (3,413) | Investment and Other Income | | | | | | | | 92 | Interest Expense | | | | | | | | (7,912) | Consolidated Net Loss | | | | | | | $ | (3,060) |
Capital expenditures of each segment for the three and six months ended June 30, 2026 and 2025 are as follows (in thousands): | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 30, 2026 | | June 30, 2025 | | June 30, 2026 | | June 30, 2025 | Capital Expenditures: | | | | | | | | | | | | Income Properties | $ | 20,851 | | $ | 351 | | $ | 20,851 | | $ | 40,339 | Commercial Loans and Investments | | 29,713 | | | 11,715 | | | 87,242 | | | 33,098 | Total Capital Expenditures | $ | 50,564 | | $ | 12,066 | | $ | 108,093 | | $ | 73,437 |
Identifiable assets of each segment as of June 30, 2026 and December 31, 2025 are as follows (in thousands): | | | | | | | | | As of | | | June 30, 2026 | | December 31, 2025 | Identifiable Assets: | | | | | | | Income Properties | | $ | 507,923 | | $ | 505,273 | Commercial Loans and Investments | | | 263,391 | | | 182,397 | Other Revenue | | | — | | | 47 | Corporate and Other | | | 10,199 | | | 28,157 | Total Assets | | $ | 781,513 | | $ | 715,874 |
Identifiable assets by segment are those assets that are used in the Company’s operations in each segment. Corporate and other assets consist primarily of cash and restricted cash as well as the interest rate swaps.
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