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Segments (Tables)
 6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Net operating income of reportable segments
Net operating income of the Company’s reportable segments for the three and six months ended June 30, 2019 and 2018 was as follows (in thousands): 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(Unaudited)
Office real estate
 
 
 
 
 
 
 
 
Rental revenues
 
$
7,382

 
$
5,288

 
$
12,938

 
$
10,388

Rental expenses
 
1,853

 
1,430

 
3,339

 
2,876

Real estate taxes
 
653

 
502

 
1,179

 
1,004

Segment net operating income
 
4,876

 
3,356

 
8,420

 
6,508

Retail real estate
 
 
 
 
 
 
 
 
Rental revenues
 
19,235

 
16,608

 
36,492

 
33,319

Rental expenses
 
2,893

 
2,563

 
5,493

 
5,220

Real estate taxes
 
1,893

 
1,656

 
3,704

 
3,339

Segment net operating income
 
14,449

 
12,389

 
27,295

 
24,760

Multifamily residential real estate
 
 
 
 
 
 
 
 
Rental revenues
 
9,761

 
6,702

 
17,857

 
13,590

Rental expenses
 
3,281

 
2,529

 
5,920

 
4,850

Real estate taxes
 
905

 
577

 
1,696

 
1,205

Segment net operating income
 
5,575

 
3,596

 
10,241

 
7,535

General contracting and real estate services
 
 
 
 
 
 
 
 
Segment revenues
 
21,444

 
20,654

 
38,480

 
43,704

Segment expenses
 
20,123

 
20,087

 
36,409

 
42,501

Segment gross profit
 
1,321

 
567

 
2,071

 
1,203

Net operating income
 
$
26,221

 
$
19,908

 
$
48,027

 
$
40,006
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 and six months ended June 30, 2019 and 2018 (in thousands): 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
(Unaudited)
Net operating income
 
$
26,221

 
$
19,908

 
$
48,027

 
$
40,006

Depreciation and amortization
 
(13,478
)
 
(9,179
)
 
(23,382
)
 
(18,457
)
General and administrative expenses
 
(2,951
)
 
(2,764
)
 
(6,352
)
 
(5,725
)
Acquisition, development, and other pursuit costs
 
(57
)
 
(9
)
 
(457
)
 
(93
)
Impairment charges
 
—

 
(98
)
 
—

 
(98
)
Interest income
 
5,593

 
2,375

 
10,912

 
4,607

Interest expense
 
(7,603
)
 
(4,497
)
 
(13,489
)
 
(8,870
)
Equity in income of unconsolidated real estate entities
 
—

 
—

 
273

 
—

Change in fair value of interest rate derivatives
 
(1,933
)
 
(11
)
 
(3,396
)
 
958

Other income
 
4

 
54

 
64

 
168

Income tax benefit
 
30

 
166

 
140

 
432

Net income
 
$
5,826

 
$
5,945

 
$
12,340

 
$
12,928