v3.26.3
SEGMENT INFORMATION
 12 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION

NOTE 14 – SEGMENT INFORMATION

 

The Company operates in three reportable segments: (i) Hotel Operations (the Hilton San Francisco 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). Corporate expenses and other amounts that are not allocated to the reportable segments are in “Other.”

 

The Company’s chief operating decision maker (“CODM”) is a group of senior executives. The CODM uses segment income (loss) as the primary measure for assessing segment performance and making resource-allocation decisions. For Hotel Operations, segment income represents Hotel revenue less Hotel operating expenses before depreciation and amortization and financing-related interest expense. For Investment Transactions, segment loss includes gains and losses on marketable securities, dividend and interest income, and trading and margin interest expense. There are no intersegment revenues. “Other” consists primarily of unallocated corporate general and administrative costs and income taxes.

 

Hotel Operations includes the operations of the Hotel and its five-level parking garage. The following tables present the Company’s reportable segment information for the years ended June 30, 2026 and 2025.

 

As of and for the year ended  Hotel   Real Estate   Investment         
June 30, 2026  Operations   Operations   Transactions   Other   Total 
Revenues  $55,797,000   $18,154,000   $-   $-   $73,951,000 
Operating expenses   (38,265,000)   (4,267,000)   -    -    (42,532,000)
Utilities   (1,900,000)   (1,354,000)   -    -    (3,254,000)
Real estate taxes   (2,159,000)   (2,167,000)   -    -    (4,326,000)
Insurance   (949,000)   (1,513,000)   -    -    (2,462,000)
General and administrative   -    -    -    (2,718,000)   (2,718,000)
Segment income (loss) from operations   12,524,000    8,853,000    -    (2,718,000)   18,659,000 
Interest expense - mortgages   (9,686,000)   (2,980,000)   -    -    (12,666,000)
Gain on insurance recovery   -    124,000    -    -    124,000 
Gain on sale of real estate   -    3,508,000    -    -    3,508,000 
                          
Depreciation and amortization expense   (3,740,000)   (3,053,000)   -    -    (6,793,000)
Loss from investments   -    -    (213,000)   -    (213,000)
Income tax expense   -    -    -    (2,283,000)   (2,283,000)
Net (loss) income  $(902,000)  $6,452,000   $(213,000)  $(5,001,000)  $336,000 
Total assets  $52,183,000   $42,835,000   $4,394,000   $5,206,000   $104,618,000 

 

 

As of and for the year ended  Hotel   Real Estate   Investment         
June 30, 2025  Operations   Operations   Transactions   Other   Total 
Revenues  $46,363,000   $18,015,000   $-   $-   $64,378,000 
Operating expenses   (31,593,000)   (4,158,000)   -    -    (35,751,000)
Utilities   (3,210,000)   (1,339,000)   -    -    (4,549,000)
Real estate taxes   (1,912,000)   (2,241,000)   -    -    (4,153,000)
Insurance   (916,000)   (1,812,000)   -    -    (2,728,000)
General and administrative   -    -    -    (2,930,000)   (2,930,000)
Segment income (loss) from operations   8,732,000    8,465,000    -    (2,930,000)   14,267,000 
Interest expense - mortgages   (10,680,000)   (2,876,000)   -    -    (13,556,000)
Gain on extinguishment of debt   1,416,000    -    -    -    1,416,000 
Depreciation and amortization expense   (3,634,000)   (2,990,000)   -    -    (6,624,000)
Loss from investments   -    -    (2,502,000)   -    (2,502,000)
Income tax benefit   -    -    -    (548,000)   (548,000)
Net (loss) income  $(4,166,000)  $2,599,000   $(2,502,000)  $(3,478,000)  $(7,547,000)
Total assets  $52,357,000   $45,253,000   $969,000   $5,522,000   $104,101,000 

 

As of June 30, 2026 Note 4 reports Hotel depreciation and amortization of $3.741 million, while Note 14 reports $3.740 million. The $1,000 difference is due solely to rounding and does not represent an underlying accounting difference.