v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 12 – Segment Reporting

 

We identify our operating segments based on the way we organize and evaluate our business, which consists of:

 

●Commercial Segment — which includes properties such as office, retail centers, and warehouses (the “Commercial Segment”). For reporting purposes, we aggregate these asset types into the Commercial Segment given their similar characteristics in property management and leasing.
   
●Mixed-use Segment — which includes properties that have both residential and retail spaces within a single real estate asset (the “Mixed-use Segment”).

 

Our CODM reviews financial information presented on an operating segment basis for purposes of allocating resources, making decisions and assessing financial performance.

 

We believe that analyzing net operating income (loss) by segment (“Segment NOI”) provides a useful measure of our performance of our business, as it reflects the core rental operations of our operating real estate. Segment NOI is calculated as total revenues, less property expenses, excluding corporate level items, such as management fees incurred to our Manager (see Note 4 – Related Party Arrangements), depreciation and amortization, general and administrative expenses, interest expense, and other non-operating items.

 

 

The following table details the unaudited results of Segment NOI, reconciled to Net loss as reported on our consolidated statements of operations for the three months ended June 30, 2026 and 2025 (amounts in thousands):

 

   Commercial
Segment		   Mixed-use
Segment		   Total   Commercial
Segment		   Mixed-use
Segment		   Total 
   Three Months Ended June 30, 
   2026   2025 
   Commercial
Segment		   Mixed-use
Segment		   Total   Commercial
Segment		   Mixed-use
Segment		   Total 
Segment NOI:                              
Rental revenue  $292   $5,075   $5,367   $216   $1,786   $2,002 
Property expenses   (493)   (3,608)   (4,101)   (676)   (2,468)   (3,144)
Total Segment NOI  $(201)  $1,467   $1,266   $(460)  $(682)  $(1,142)
Non-segment items:                              
Management fees, included in Property expenses             (852)             (827)
General and administrative             (1,201)             (1,179)
Interest expense             (5,575)             (2,868)
Depreciation and amortization             (3,090)             (1,862)
Interest income             191              251 
Other income (expense)             5              (6)
Net loss            $(9,256)            $(7,633)

 

The following table details the unaudited significant expense categories by segment for the three months ended June 30, 2026 and 2025 (amounts in thousands):

 

   Commercial
Segment		   Mixed-use
Segment		   Total   Commercial
Segment		   Mixed-use
Segment		   Total 
   Three Months Ended June 30, 
   2026   2025 
   Commercial
Segment		   Mixed-use
Segment		   Total   Commercial
Segment		   Mixed-use
Segment		   Total 
Property expenses:                              
Real estate taxes  $361   $1,208   $1,569   $558   $989   $1,547 
Management fees (1)   14    733    747    10    303    313 
Repairs & maintenance   36    641    677    28    430    458 
Insurance   72    448    520    73    335    408 
Utilities   10    355    365    7    195    202 
Other property expenses   —    223    223    —    216    216 
Total property expenses (1)  $493   $3,608   $4,101   $676   $2,468   $3,144 

 

 

(1)Excludes management fees incurred to our Manager (see Note 4 – Related Party Arrangements).

 

 

The following table details the unaudited results of Segment NOI, reconciled to our consolidated statements of operations for the six months ended June 30, 2026 and 2025 (amounts in thousands):

 

   Commercial
Segment		   Mixed-use
Segment		   Total   Commercial
Segment		   Mixed-use
Segment		   Total 
   Six Months Ended June 30, 
   2026   2025 
   Commercial
Segment		   Mixed-use
Segment		   Total   Commercial
Segment		   Mixed-use
Segment		   Total 
Segment NOI:                              
Rental revenue  $517   $9,085   $9,602   $514   $3,227   $3,741 
Property expenses   (982)   (7,272)   (8,254)   (1,033)   (3,990)   (5,023)
Total Segment NOI  $(465)  $1,813   $1,348   $(519)  $(763)  $(1,282)
Non-segment items:                              
Management fees, included in Property expenses             (1,701)             (1,652)
General and administrative             (2,996)             (2,795)
Interest expense             (10,860)             (7,226)
Depreciation and amortization             (6,167)             (3,779)
Interest income             401              499 
Other income (expense)             46              (21)
Net loss            $(19,929)            $(16,256)

 

The following table details the unaudited significant expense categories by segment for the six months ended June 30, 2026 and 2025 (amounts in thousands):

 

   Commercial
Segment		   Mixed-use
Segment		   Total   Commercial
Segment		   Mixed-use
Segment		   Total 
   Six Months Ended June 30, 
   2026   2025 
   Commercial
Segment		   Mixed-use
Segment		   Total   Commercial
Segment		   Mixed-use
Segment		   Total 
Property expenses:                              
Real estate taxes  $723   $2,415   $3,138   $728   $1,134   $1,862 
Management fees (1)   27    1,388    1,415    20    593    613 
Repairs & maintenance   71    1,148    1,219    127    725    852 
Insurance   143    939    1,082    145    678    823 
Utilities   18    721    739    13    390    403 
Other property expenses   —    661    661    —    470    470 
Total property expenses (1)  $982   $7,272   $8,254   $1,033   $3,990   $5,023 

 

 

(1)Excludes management fees incurred to our Manager (see Note 4 – Related Party Arrangements).

 

The following table details our total assets by segment as of June 30, 2026, and December 31, 2025 (amounts in thousands):

 

   June 30, 2026   December 31, 2025 
   (unaudited)     
Commercial Segment  $95,516   $97,038 
Mixed-use Segment   442,144    443,301 
Other non-segment assets (1)   24,110    23,857 
Total assets  $561,770   $564,196 

 

 

(1)Other non-segment assets primarily consist of cash and cash equivalents not attributable to specific reportable segments, and our convertible loan receivable from affiliate as of June 30, 2026 (see Note 4 – Related Party Arrangements).