SEGMENT REPORTING

6 Months Ended

Jun. 30, 2020

SEGMENT REPORTING

SEGMENT REPORTING

NOTE 3 – segment reporting

We report our results in two reportable segments: residential and commercial properties. Our residential properties include multifamily properties. Our commercial properties include retail, office, industrial, restaurant and medical properties. We assess and measure operating results based on net operating income (“NOI”), which we define as total real estate segment revenues less real estate expenses (which consist of real estate taxes, property management fees, utilities, repairs and maintenance, insurance and direct administrative costs). We believe NOI is an important measure of operating performance even though it should not be considered an alternative to net income or cash flow from operating activities. NOI is unaffected by financing, depreciation, amortization and certain general and administrative expenses.  The accounting policies of each segment are consistent with those described in Note 2 of this report.

Segment Revenues and Net Operating Income

The revenues and net operating income for the reportable segments (residential and commercial) are summarized as follows for the three and six months ended June 30, 2020 and 2019, along with reconciliations to the consolidated financial statements. Segment assets are also reconciled to Total Assets as reported in the consolidated financial statements.

	Three months ended June 30, 2020						Three months ended June 30, 2019
	Residential		Commercial		Total		Residential		Commercial		Total
	(in thousands)						(in thousands)
Income from rental operations	$	24,381	$	6,440	$	30,821	$	23,822	$	6,448	$	30,270
Expenses from rental operations		12,560		1,540		14,100		12,995		1,856		14,851
Net operating income	$	11,821	$	4,900	$	16,721	$	10,827	$	4,592	$	15,419
Depreciation and amortization						5,246						5,353
Interest						4,224						4,582
Administration of REIT						1,085						971
Other (income)/expense						(231)						(308)
Net income					$	6,397					$	4,821

	Six months ended June 30, 2020						Six months ended June 30, 2019
	Residential		Commercial		Total		Residential		Commercial		Total
	(in thousands)						(in thousands)
Income from rental operations	$	48,376	$	12,351	$	60,727	$	47,258	$	12,844	$	60,102
Expenses from rental operations		26,472		3,327		29,799		26,384		3,675		30,059
Net operating income	$	21,904	$	9,024	$	30,928	$	20,874	$	9,169	$	30,043
Depreciation and amortization						10,498						10,891
Interest						8,574						9,298
Administration of REIT						2,247						2,082
Other (income)/expense						(2,015)						(839)
Net income					$	11,624					$	8,611

Segment Assets and Accumulated Depreciation

As of June 30, 2020	Residential		Commercial		Total
	(in thousands)
Real estate investments	$	629,968	$	196,134	$	826,102
Accumulated depreciation		(111,432)		(43,193)		(154,625)
	$	518,536	$	152,941		671,477
Cash and cash equivalents						8,697
Restricted deposits and funded reserves						13,792
Investment in unconsolidated affiliates						8,275
Note receivable						2,063
Intangible assets, less accumulated amortization						8,032
Other assets, net						6,339
Total Assets					$	718,675

As of December 31, 2019	Residential		Commercial		Total
	(in thousands)
Real estate investments	$	605,813	$	196,215	$	802,028
Accumulated depreciation		(104,170)		(42,146)		(146,316)
	$	501,643	$	154,069		655,712
Cash and cash equivalents						9,002
Restricted deposits and funded reserves						8,380
Investment in unconsolidated affiliates						7,915
Note receivable						1,300
Intangible assets, less accumulated amortization						9,133
Other assets, net						8,244
Total Assets					$	699,686