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

NOTE 11 – SEGMENT REPORTING

 

The Company operates in two operating and reportable segments which consist of (1) the operations, leasing and management of its leased commercial properties, herein known as the “Property Investment Portfolio” segment, and (2) advisory and brokerage services related to commercial properties, herein known as the “Real Estate Services” segment. The Company has determined that these reportable segments were strategic business units that offer different products. Currently, these reportable segments are being managed separately based on the fundamental differences in their operations.

 

The Company’s Property Investment Portfolio segment generates revenues from its operating leases with its tenants. Rental income is accounted for pursuant to ASC Topic 842 “Leases” and includes base rents that each tenant pays in accordance with the terms of its respective lease and is reported on a straight-line basis over the non-cancellable term of the lease, which includes the effects of rent abatements under the leases.

 

The Company’s Real Estate Services segment generates revenues which includes brokerage revenues consisting of real estate sales commissions and assignment fees, and revenues from advisory services for services performed pursuant to its consulting agreements with clients.

 

Corporate and unallocated amounts that do not relate to a reportable segment have been allocated to “Corporate & Unallocated.”

 

The Company’s CODM is its Chief Executive Officer. The decisions concerning the allocation of the Company’s resources are made by the CODM with oversight by the Board. The CODM evaluates the performance of each segment and makes decisions concerning the allocation of resources based upon segment operating profit (loss), generally defined as income or loss before interest expense and income taxes. The CODM assesses segment performance by using each segment’s operating income (loss) and considers budget-to-actual variances on a periodic basis (at least quarterly) when making decisions about operational planning, including whether to invest resources into the segments or into other parts of the Company. Segment assets are reviewed by the Company’s CODM and are disclosed below. The accounting policies of the Property Investment Portfolio segment and the Real Estate Services segment are the same as those described in Note 2 of the Notes to Consolidated Financial Statements.

 

Information with respect to these reportable business segments for the three and six months ended June 30, 2026 and 2025 was as follows:

 

Three Months Ended June 30, 2026

 

   Property
Investment
Portfolio		   Real Estate
Services		   Corporate and
Unallocated		   Consolidated 
Net revenues  $656,370   $117,607   $
-
   $773,977 
                     
Operating expenses (excluding depreciation and amortization)   179,565    (120,159)   686,180    745,586 
Depreciation and amortization   73,929    
-
    698    74,627 
Income (loss) from operations   402,876    237,766    (686,878)   (46,236)
Interest expense   (141,053)   
-
    (31,139)   (172,192)
Other income   2,000    
-
    
-
    2,000 
Gain on sale of rental properties, net   237,815    -    -    237,815 
Income from derivative – interest rate swap   52,400    
-
    
-
    52,400 
Income (loss) before provision for income taxes   554,038    237,766    (718,017)   73,787 
Provision for income taxes   
-
    
-
    
-
    
-
 
Net income (loss)  $554,038   $237,766   $(718,017)  $73,787 

Three Months Ended June 30, 2025

 

   Property
Investment
Portfolio		   Real Estate
Services		   Corporate and
Unallocated		   Consolidated 
Net revenues  $757,626   $180,148   $
-
   $937,774 
                     
Operating expenses (excluding depreciation and amortization)   53,026    338,755    185,621    577,402 
Depreciation and amortization   87,486    
-
    698    88,184 
Income (loss) from operations   773,284    (314,777)   (186,319)   272,188 
Interest expense   (166,968)   
-
    (30,000)   (196,968)
Other income   
-
    
-
    25    25 
Loss from derivative – interest rate swap   (48,919)   
-
    
-
    (48,919)
Income (loss) before provision for income taxes   557,397    (314,777)   (216,294)   26,326 
Provision for income taxes   
-
    
-
    
-
    
-
 
Net income (loss)  $557,397   $(314,777)  $(216,294)  $26,326 

 

Six Months Ended June 30, 2026

 

   Property
Investment
Portfolio		   Real Estate
Services		   Corporate and
Unallocated		   Consolidated 
Net revenues  $1,412,100   $534,313   $
-
   $1,946,413 
                     
Operating expenses (excluding depreciation and amortization)   421,429    432,788    863,402    1,717,619 
Depreciation and amortization   147,067    
-
    1,395    148,462 
Income (loss) from operations   843,604    101,525    (864,797)   80,332 
Interest expense   (319,753)   
-
    (63,022)   (382,775)
Other income   4,500    
-
    
-
    4,500 
Gain on sale of rental properties, net   237,815    
-
    
-
    237,815 
Loss from derivative – interest rate swap   79,255    
-
    
-
    79,255 
Income (loss) before provision for income taxes   845,421    101,525    (927,819)   19,127 
Provision for income taxes   -    -    -    - 
Net income (loss)  $845,421   $101,525   $(927,819)  $19,127 

 

Six Months Ended June 30, 2025

 

   Property
Investment
Portfolio		   Real Estate
Services		   Corporate and
Unallocated		   Consolidated 
Net revenues  $1,518,518   $393,808   $
-
   $1,912,326 
                     
Operating expenses (excluding depreciation and amortization)   84,957    514,592    435,126    1,034,675 
Depreciation and amortization   175,297    -    1,395    176,692 
Income (loss) from operations   1,258,264    (120,784)   (436,521)   700,959 
Interest expense   (331,509)   
-
    (60,000)   (391,509)
Other income   
-
    
-
    43    43 
Loss from derivative – interest rate swap   (137,309)   
-
    -    (137,309)
Income (loss) before provision for income taxes   789,446    (120,784)   (496,478)   172,184 
Provision for income taxes   -    -    -    - 
Net income (loss)  $789,446   $(120,784)  $(496,478)  $172,184 

Total assets by segment on June 30, 2026 and December 31, 2025 were as follows:

 

   June 30,
2026		   December 31,
2025		 
         
Property investment portfolio  $9,842,142   $13,160,412 
Real estate services   116,750    50,262 
Corporate and unallocated   3,517,472    721,802 
   $13,476,364   $13,932,476 

 

All assets are located in the United States.