Segments (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting

Net Operating Income of Reportable Segments

Net operating income of the Company’s reportable segments for each of the three years ended December 31, 2015 was as follows (in thousands):

	Years Ended December 31,
	2015		2014		2013
Office real estate
Rental revenues	$	31,534	$	27,827	$	25,794
Rental expenses		6,938		6,395		5,721
Real estate taxes		2,950		2,315		2,171
Segment net operating income		21,646		19,117		17,902
Retail real estate
Rental revenues		32,064		23,956		21,755
Rental expenses		5,915		5,011		4,808
Real estate taxes		2,928		2,097		1,971
Segment net operating income		23,221		16,848		14,976
Multifamily residential real estate
Rental revenues		17,574		12,963		9,971
Rental expenses		6,351		5,261		3,496
Real estate taxes		1,904		1,331		982
Segment net operating income		9,319		6,371		5,493
General contracting and real estate services
Segment revenues		171,268		103,321		82,516
Segment expenses		165,344		98,754		78,813
Segment gross profit		5,924		4,567		3,703
Net operating income	$	60,110	$	46,903	$	42,074

Reconciliation of Net Operating Income to Net Income

The following table reconciles net operating income to net income for each of the three years ended December 31, 2015 (in thousands):

	Years Ended December 31,
	2015		2014		2013
Net operating income	$	60,110	$	46,903	$	42,074
Depreciation and amortization		(23,153)		(17,569)		(14,898)
General and administrative expenses		(8,397)		(7,711)		(6,937)
Acquisition, development and other pursuit costs		(1,935)		(229)		—
Impairment charges		(41)		(15)		(580)
Interest income		126		—		—
Interest expense		(13,333)		(10,648)		(12,303)
Loss on extinguishment of debt		(512)		—		(2,387)
Gain on real estate dispositions and acquisitions		18,394		2,211		9,460
Other (expense) income		(110)		(113)		297
Income tax benefit (provision)		34		(70)		(273)
Net income	$	31,183	$	12,759	$	14,453