Segments (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Net operating income of reportable segments

Net operating income of the Company’s reportable segments for the three months ended March 31, 2019 and 2018 was as follows (in thousands): 

	Three Months Ended March 31,
	2019		2018
	(Unaudited)
Office real estate
Rental revenues	$	5,556	$	5,100
Rental expenses	1,486		1,446
Real estate taxes	526		502
Segment net operating income	3,544		3,152
Retail real estate
Rental revenues	17,257		16,711
Rental expenses	2,600		2,657
Real estate taxes	1,811		1,683
Segment net operating income	12,846		12,371
Multifamily residential real estate
Rental revenues	8,096		6,888
Rental expenses	2,639		2,321
Real estate taxes	791		628
Segment net operating income	4,666		3,939
General contracting and real estate services
Segment revenues	17,036		23,050
Segment expenses	16,286		22,414
Segment gross profit	750		636
Net operating income	$	21,806	$	20,098

Reconciliation of net operating income to net income

The following table reconciles net operating income to net income, the most directly comparable GAAP measure, for the three months ended March 31, 2019 and 2018 (in thousands): 

	Three Months Ended March 31,
	2019			2018
	(Unaudited)
Net operating income	$	21,806		$	20,098
Depreciation and amortization	(9,904		)	(9,278		)
General and administrative expenses	(3,401		)	(2,961		)
Acquisition, development, and other pursuit costs	(400		)	(84		)
Interest income	5,319			2,232
Interest expense	(5,886		)	(4,373		)
Equity in income of unconsolidated real estate entities	273			—
Change in fair value of interest rate derivatives	(1,463		)	969
Other income	60			114
Income tax benefit	110			266
Net income	$	6,514		$	6,983