XML 42 R26.htm IDEA: XBRL DOCUMENT v3.25.4
SEGMENT FINANCIAL INFORMATION
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
SEGMENT FINANCIAL INFORMATION SEGMENT FINANCIAL INFORMATION
Our seven reportable segments are residential properties, industrial properties, retail properties, office properties, data center properties, other properties and investments in real estate debt and securities. Factors used to determine our reportable segments include the physical and economic characteristics of our properties and/or investments and the related operating activities. Our chief operating decision maker (“CODM”) is Jay W. Glaubach, Partner and Co-President.
Our CODM relies on net operating income, among other factors, to make decisions about allocating resources and assessing segment performance. Net operating income is the key performance metric that captures the unique operating characteristics of each segment. Net investment in real estate properties, investments in real estate debt and securities, restricted cash, tenant receivables, straight-line rent receivables and other assets directly assignable to a property or investment are allocated to the segment groupings. Corporate items that are not directly assignable to a property, such as investments in unconsolidated joint venture partnerships and DST Program Loans, are not allocated to segment groupings, but are reflected as reconciling items.
The following table reflects our total consolidated assets by segment as of December 31, 2025 and 2024:
As of
(in thousands)December 31, 2025December 31, 2024 (1)
Assets:
Residential properties$2,317,415 $2,126,453 
Industrial properties2,297,995 1,664,506 
Retail properties485,687 497,184 
Office properties325,218 367,025 
Data center properties688,390 — 
Other properties (2)169,768 149,847 
Investments in real estate debt and securities303,232 353,258 
Total segment assets6,587,705 5,158,273 
Corporate680,819 572,976 
Total assets$7,268,524 $5,731,249 
____________________________________________________
(1)As of December 31, 2024, our debt-related investments classified as held for sale are included in the corporate grouping.
(2)Includes self-storage properties.
We consider net operating income, a non-GAAP financial measure, to be an appropriate supplemental performance measure and believe net operating income provides useful information regarding our financial condition and results of operations because net operating income reflects the operating performance of our investments and excludes certain items that are not considered to be controllable in connection with the management of the investments, such as real estate-related depreciation and amortization, general and administrative expenses, advisory fees, impairment charges, interest expense,
gains on sale of properties, other income and expenses, gains and losses on the extinguishment of debt and noncontrolling interests. However, net operating income should not be viewed as an alternative measure of our financial performance since it excludes such items, which could materially impact our results of operations. Further, our net operating income may not be comparable to that of other real estate companies, as they may use different methodologies for calculating net operating income. Therefore, we believe net income, as defined by GAAP, to be the most appropriate measure to evaluate our overall financial performance.
The following table is a reconciliation of our reported net income (loss) attributable to common stockholders to our net operating income for the years ended December 31, 2025, 2024 and 2023.
For the Year Ended December 31,
(in thousands)202520242023
Net loss attributable to common stockholders$(68,004)$(37,135)$(62,427)
Real estate-related depreciation and amortization196,808 152,777 149,985 
General and administrative expenses13,662 12,808 11,824 
Advisory fees51,296 40,786 38,645 
Performance participation allocation16,544 — — 
Acquisition costs and reimbursements6,868 7,034 7,034 
Valuation allowance on debt-related investment— — (1,799)
(Income) loss from unconsolidated joint venture partnerships(48,568)(14,531)3,578 
Interest expense251,369 188,318 148,517 
Gain on sale of real estate property(57,200)(12,913)(36,884)
(Gain) loss on financial assets(407)17 — 
Loss (gain) on financing obligations54,776 2,034 (932)
(Gain) loss on extinguishment of debt and financing obligations, net(32,741)(41,050)700 
Loss (gain) on derivative instruments7 (402)(126)
Provision for current expected credit losses(464)(1,533)1,997 
Other income and expenses(11,134)(6,583)(4,950)
Income tax expense17,953 11,842 — 
Net loss attributable to redeemable noncontrolling interests(431)(273)(597)
Net loss attributable to noncontrolling interests(58,751)(19,935)(20,189)
Net operating income$331,583 $281,261 $234,376 
The following table sets forth consolidated financial results by segment for the years ended December 31, 2025, 2024 and 2023:
(in thousands)ResidentialIndustrialRetailOfficeData CenterOther
Properties		Debt and
Securities		Consolidated
2025
Rental revenues$177,232 $150,831 $60,405 $48,660 $2,039 $13,437 $— $452,604 
Debt-related income— — — — — — 46,231 46,231 
Rental expenses(86,490)(36,061)(16,030)(22,932)(108)(5,631)— (167,252)
Net operating income$90,742 $114,770 $44,375 $25,728 $1,931 $7,806 $46,231 $331,583 
2024
Rental revenues$140,014 $112,376 $61,206 $50,103 $— $7,152 $— $370,851 
Debt-related income— — — — — — 46,642 46,642 
Rental expenses(66,268)(27,817)(15,880)(23,422)— (2,845)— (136,232)
Net operating income$73,746 $84,559 $45,326 $26,681 $— $4,307 $46,642 $281,261 
2023
Rental revenues$120,706 $91,145 $58,916 $51,096 $— $132 $— $321,995 
Debt-related income— — — — — — 31,175 31,175 
Rental expenses(57,923)(20,083)(15,575)(25,165)— (48)— (118,794)
Net operating income$62,783 $71,062 $43,341 $25,931 $— $84 $31,175 $234,376