Segment Information

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has three reportable segments, real estate, debt and preferred equity investments, and SUMMIT. In the fourth quarter of 2023, due to quantitative thresholds, SUMMIT was identified as a reportable segment. As such, prior period segment data has been restated to reflect SUMMIT as a reportable segment for comparative purposes.

We evaluate real estate performance and allocate resources based on earnings contributions.

The primary sources of revenue are generated from tenant rents, escalations and reimbursement revenue. Real estate property operating expenses consist primarily of security, maintenance, utility costs, insurance, real estate taxes and, at certain properties, ground rent expense. See Note 5, "Debt and Preferred Equity Investments," for additional details on our debt and preferred equity investments. SUMMIT currently operates one location at One Vanderbilt Avenue in midtown Manhattan with the primary source of revenue generated from ticket sales.

Selected consolidated results of operations for the three and nine months ended September 30, 2024 and 2023, and selected asset information as of September 30, 2024 and December 31, 2023, regarding our operating segments are as follows (in thousands):

	Real Estate Segment		SUMMIT Segment		Debt and Preferred Equity Segment		Total Company
Total revenues
Three months ended:
September 30, 2024	$	183,139	$	36,437	$	10,115	$	229,691
September 30, 2023	$	165,428	$	35,069	$	9,689	$	210,186
Nine months ended:
September 30, 2024	$	522,041	$	94,643	$	23,709	$	640,393
September 30, 2023	$	591,117	$	83,020	$	27,849	$	701,986
Net income (loss)
Three months ended:
September 30, 2024	$	(18,326)	$	(362)	$	9,424	$	(9,264)
September 30, 2023	$	(20,385)	$	(1,897)	$	588	$	(21,694)
Nine months ended:
September 30, 2024	$	(11,745)	$	11,202	$	11,627	$	11,084
September 30, 2023	$	(444,904)	$	(1,101)	$	6,726	$	(439,279)
Total assets
As of:
September 30, 2024	$	8,707,930	$	478,288	$	1,029,854	$	10,216,072
December 31, 2023	$	8,707,147	$	464,799	$	359,235	$	9,531,181

    

We allocate loan loss reserves, net of recoveries, and transaction related costs to the debt and preferred equity segment. We do not allocate marketing, general and administrative expenses to the debt and preferred equity segment because that segment does not have dedicated personnel and the use of personnel and resources is dependent on transaction volume between the three segments, which varies between periods. In addition, we base performance on the individual segments prior to allocating marketing, general and administrative expenses. SUMMIT segment incurs its own marketing, general and administrative expenses for its dedicated personnel, which are included in SUMMIT Operator expenses in the consolidated statement of operations. For the three and nine months ended September 30, 2024, marketing, general and administrative expenses totaled $21.0 million and $62.4 million, respectively. For the three and nine months ended September 30, 2023, marketing, general and administrative expenses totaled $22.9 million and $69.1 million, respectively. All other expenses, except interest and SUMMIT operator expenses, relate entirely to the real estate assets.

There were no transactions between the above three segments other than the SUMMIT lease with our One Vanderbilt Avenue joint venture, which is part of the real estate segment. See Note 10, "Related Party Transactions."