SEGMENT REPORTING

9 Months Ended

Sep. 30, 2013

SEGMENT REPORTING

SEGMENT REPORTING

6. SEGMENT REPORTING

FASB ASC Topic 280-10, Segment Reporting — Overall, established standards for reporting financial and descriptive information about operating segments in annual financial statements.  Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.  Roberts Realty’s chief operating decision maker is Mr. Roberts, its Chief Executive Officer.

Roberts Realty develops, constructs, owns, and manages multifamily apartment communities; owns land; and owns and manages retail centers and one office building.  (Roberts Realty does not currently own any operating multifamily apartment communities and did not own any operating multifamily apartment communities in 2013 or 2012.)  All of Roberts Realty’s properties are located in metropolitan Atlanta, Georgia.  Roberts Realty has the following three reportable operating segments:

1. the retail/office segment, which consists of operating retail centers and an office building;

2. the land segment, which consists of various tracts of land; and

3. the corporate segment, which consists primarily of operating cash, cash equivalents, and miscellaneous other assets.

The following tables summarize the operating results of Roberts Realty’s reportable segments for the three and nine months ended September 30, 2013 and 2012.  The retail/office segment is composed of the Bassett and Spectrum retail centers, along with the Northridge Office Building.  As Roberts Realty has previously stated in its annual and quarterly reports, its objective is to exit the office and retail business to focus exclusively on developing, constructing, and managing multifamily apartment communities.  Given that objective, on January 31, 2013, Roberts Realty listed the Northridge Office Building for sale and classified it as a real estate asset held for sale.  On August 6, 2013, Roberts Realty completed the transfer of the Spectrum retail center to the lender, in satisfaction of the $4,691,528 in debt secured by the property.  Accordingly, the operations of the Northridge Office Building and Spectrum retail center have been accounted for as discontinued operations.  See Note 11 — Subsequent Events.  The land segment is composed of two tracts of land totaling 60 acres that are in various phases of development and construction.  The land segment also includes three tracts of land totaling 22 acres that are classified as real estate assets held for sale in the condensed consolidated balance sheets.  The corporate segment consists primarily of cash and cash equivalents, miscellaneous other assets, and general and administrative expenses.

Three Months Ended September 30, 2013

	Retail/Office			Land			Corporate			Total
Rental operations	$	67,543		$	—		$	—		$	67,543
Other operating income	22,429			25,000			—			47,429
Total operating revenues from consolidated entities	89,972			25,000			—			114,972
Operating expenses	27,775			126,947			333,013			487,735
Depreciation and amortization expense	8,698			—			177			8,875
Total operating expenses from consolidated entities	36,473			126,947			333,190			496,610
Other (expense) income	(80,332		)	(288,854		)	297			(368,889		)
Consolidated loss from continuing operations	(26,833		)	(390,801		)	(332,893		)	(750,527		)
Consolidated loss from discontinued operations (Note 3)	(306,203		)	—			—			(306,203		)
Consolidated net loss	(333,036		)	(390,801		)	(332,893		)	(1,056,730		)
Consolidated loss attributable to noncontrolling interest	(59,147		)	(69,406		)	(59,122		)	(187,675		)
Consolidated loss available for common shareholders	$	(273,889	)	$	(321,395	)	$	(273,771	)	$	(869,055	)
Total assets at September 30, 2013	$	5,986,580		$	24,057,872		$	2,612,966		$	32,657,418

Three Months Ended September 30, 2012

	Retail/Office			Land			Corporate			Total
Rental operations	$	85,900		$	3,169		$	—		$	89,069
Other operating income	152,895			—			110			153,005
Total operating revenues from consolidated entities	238,795			3,169			110			242,074
Operating expenses	806,038			3,252,230			386,713			4,444,981
Depreciation and amortization expense	29,123			—			77			29,200
Total operating expenses from consolidated entities	835,161			3,252,230			386,790			4,474,181
Other (expense) income	(53,897		)	121,829			867			68,799
Consolidated loss from continuing operations	(650,263		)	(3,127,232		)	(385,813		)	(4,163,308		)
Consolidated loss from discontinued operations (Note 3)	(1,812,088		)	—			—			(1,812,088		)
Consolidated net loss	(2,462,351		)	(3,127,232		)	(385,813		)	(5,975,396		)
Consolidated loss attributable to noncontrolling interest	(423,278		)	(537,571		)	(66,322		)	(1,027,171		)
Consolidated loss available for common shareholders	$	(2,039,073	)	$	(2,589,661	)	$	(319,491	)	$	(4,948,225	)
Total assets at September 30, 2012	$	11,357,923		$	30,595,936		$	1,357,917		$	43,311,776

Nine Months Ended September 30, 2013

	Retail/Office			Land		Corporate			Total
Rental operations	$	220,986		$	3,587	$	—		$	224,573
Other operating income	66,688			25,000		19			91,707
Total operating revenues from consolidated entities	287,674			28,587		19			316,280
Operating expenses	62,972			299,131		1,123,208			1,485,311
Depreciation and amortization expense	37,316			—		445			37,761
Total operating expenses from consolidated entities	100,288			299,131		1,123,653			1,523,072
Other (expense) income	(186,584		)	601,182		562			415,160
Consolidated income (loss) from continuing operations	802			330,638		(1,123,072		)	(791,632		)
Consolidated (loss) from discontinued operations (Note 3)	(487,095		)	—		—			(487,095		)
Consolidated net (loss) income	(486,293		)	330,638		(1,123,072		)	(1,278,727		)
Consolidated (loss) income attributable to noncontrolling interest	(78,682		)	53,497		(181,713		)	(206,898		)
Consolidated (loss) income available for common shareholders	$	(407,611	)	$	277,141	$	(941,359	)	$	(1,071,829	)
Total assets at September 30, 2013	$	5,986,580		$	24,057,872	$	2,612,966		$	32,657,418

Nine Months Ended September 30, 2012

	Retail/Office			Land			Corporate			Total
Rental operations	$	260,100		$	9,506		$	—		$	269,606
Other operating income	200,343			—			128			200,471
Total operating revenues from consolidated entities	460,443			9,506			128			470,077
Operating expenses	847,226			3,633,699			1,117,349			5,598,274
Depreciation and amortization expense	87,366			—			95			87,461
Total operating expenses from consolidated entities	934,592			3,633,699			1,117,444			5,685,735
Other (expense) income	(161,344		)	(377,304		)	3,276			(535,372		)
Consolidated loss from continuing operations	(635,493		)	(4,001,497		)	(1,114,040		)	(5,751,030		)
Consolidated loss from discontinued operations (Note 3)	(1,872,606		)	—			—			(1,872,606		)
Consolidated net loss	(2,508,099		)	(4,001,497		)	(1,114,040		)	(7,623,636		)
Consolidated loss attributable to noncontrolling interest	(431,895		)	(689,058		)	(191,837		)	(1,312,790		)
Consolidated loss available for common shareholders	$	(2,076,204	)	$	(3,312,439	)	$	(922,203	)	$	(6,310,846	)
Total assets at September 30, 2012	$	11,357,923		$	30,595,936		$	1,357,917		$	43,311,776