v3.26.3
Segment Reporting
 9 Months Ended
Sep. 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”) two 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 September 30, 2026 and 2025 (amounts in thousands):

 

   Commercial Segment   Mixed-use Segment   Total   Commercial Segment   Mixed-use Segment   Total 
   Three Months Ended September 30, 
   2026   2025 
   Commercial Segment   Mixed-use Segment   Total   Commercial Segment   Mixed-use Segment   Total 
Segment NOI:                              
Rental revenue  $258   $6,069   $6,327   $204   $2,178   $2,382 
Property expenses   (515)   (3,685)   (4,200)   (516)   (2,450)   (2,966)
Total Segment NOI  $(257)  $2,384   $2,127   $(312)  $(272)  $(584)
Non-segment items:                              
Management fees, included in Property expenses             (864)             (830)
General and administrative             (1,442)             (1,305)
Interest expense             (5,636)             (4,846)
Depreciation and amortization             (3,098)             (1,881)
Interest income             180              283 
Other income (expense)             20              (13)
Loss on extinguishment of debt             —              (2,960)
Net loss            $(8,713)            $(12,136)

 

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

 

   Commercial
Segment		   Mixed-use
Segment		   Total   Commercial
Segment		   Mixed-use
Segment		   Total 
   Three Months Ended September 30, 
   2026   2025 
   Commercial Segment   Mixed-use Segment   Total   Commercial Segment   Mixed-use Segment   Total 
Property expenses:                              
Real estate taxes  $367   $928   $1,295   $364   $894   $1,258 
Repairs & maintenance   57    793    850    55    378    433 
Management fees (1)   13    779    792    11    371    382 
Insurance   72    455    527    74    336    410 
Utilities   6    363    369    12    227    239 
Other property expenses   —    367    367    —    244    244 
Total property expenses (1)  $515   $3,685   $4,200   $516   $2,450   $2,966 

 

 

(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 nine months ended September 30, 2026 and 2025 (amounts in thousands):

 

   Commercial Segment   Mixed-use Segment   Total   Commercial Segment   Mixed-use Segment   Total 
   Nine Months Ended September 30, 
   2026   2025 
   Commercial Segment   Mixed-use Segment   Total   Commercial Segment   Mixed-use Segment   Total 
Segment NOI:                              
Rental revenue  $775   $15,154   $15,929   $718   $5,405   $6,123 
Property expenses   (1,497)   (10,956)   (12,453)   (1,549)   (6,440)   (7,989)
Total Segment NOI  $(722)  $4,198   $3,476   $(831)  $(1,035)  $(1,866)
Non-segment items:                              
Management fees, included in Property expenses             (2,566)             (2,482)
General and administrative             (4,438)             (4,100)
Interest expense             (16,496)             (12,072)
Depreciation and amortization             (9,265)             (5,660)
Interest income             581              782 
Other income (expense)             66              (34)
Loss on extinguishment of debt             —              (2,960)
Net loss            $(28,642)            $(28,392)

 

 

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

 

   Commercial
Segment		   Mixed-use
Segment		   Total   Commercial
Segment		   Mixed-use
Segment		   Total 
   Nine Months Ended September 30, 
   2026   2025 
   Commercial Segment   Mixed-use Segment   Total   Commercial Segment   Mixed-use Segment   Total 
Property expenses:                              
Real estate taxes  $1,090   $3,343   $4,433   $1,092   $2,028   $3,120 
Management fees (1)   40    2,167    2,207    31    964    995 
Repairs & maintenance   128    1,941    2,069    182    1,103    1,285 
Insurance   215    1,394    1,609    219    1,014    1,233 
Utilities   24    1,084    1,108    25    617    642 
Other property expenses   —    1,027    1,027    —    714    714 
Total property expenses (1)  $1,497   $10,956   $12,453   $1,549   $6,440   $7,989 

 

 

(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 September 30, 2026, and December 31, 2025 (amounts in thousands):

 

   September 30, 2026   December 31, 2025 
   (unaudited)     
Commercial Segment  $95,217   $97,038 
Mixed-use Segment   441,372    443,301 
Other non-segment assets (1)   25,264    23,857 
Total assets  $561,853   $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 September 30, 2026 (see Note 4 – Related Party Arrangements).