XML 12 R25.htm IDEA: XBRL DOCUMENT v3.19.3
Segments (Tables)
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Net operating income of reportable segments
Net operating income of the Company’s reportable segments for the three and nine months ended September 30, 2019 and 2018 was as follows (in thousands): 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
Office real estate
 
 
 
 
 
 
 
 
Rental revenues
 
$
10,283

 
$
5,149

 
$
23,220

 
$
15,537

Rental expenses
 
2,753

 
1,551

 
6,097

 
4,435

Real estate taxes
 
1,141

 
515

 
2,319

 
1,519

Segment net operating income
 
6,389

 
3,083

 
14,804

 
9,583

Retail real estate
 
 
 
 
 
 
 
 
Rental revenues
 
20,780

 
16,932

 
57,273

 
50,251

Rental expenses
 
3,116

 
2,761

 
8,583

 
7,974

Real estate taxes
 
2,219

 
1,703

 
5,923

 
5,041

Segment net operating income
 
15,445

 
12,468

 
42,767

 
37,236

Multifamily residential real estate
 
 
 
 
 
 
 
 
Rental revenues
 
11,157

 
6,849

 
29,014

 
20,439

Rental expenses
 
4,055

 
2,791

 
9,935

 
7,640

Real estate taxes
 
820

 
622

 
2,517

 
1,828

Segment net operating income
 
6,282

 
3,436

 
16,562

 
10,971

General contracting and real estate services
 
 
 
 
 
 
 
 
Segment revenues
 
27,638

 
19,950

 
66,118

 
63,654

Segment expenses
 
26,446

 
18,973

 
62,855

 
61,474

Segment gross profit
 
1,192

 
977

 
3,263

 
2,180

Net operating income
 
$
29,308

 
$
19,964

 
$
77,396

 
$
59,970
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 nine months ended September 30, 2019 and 2018 (in thousands): 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
Net operating income
 
$
29,308

 
$
19,964

 
$
77,396

 
$
59,970

Depreciation and amortization
 
(15,452
)
 
(10,196
)
 
(38,834
)
 
(28,653
)
Amortization of right-of-use assets - finance leases
 
(107
)
 
—

 
(168
)
 
—

General and administrative expenses
 
(2,977
)
 
(2,367
)
 
(9,329
)
 
(8,092
)
Acquisition, development and other pursuit costs
 
(93
)
 
(69
)
 
(550
)
 
(162
)
Impairment charges
 
—

 
(3
)
 
—

 
(101
)
Gain on real estate dispositions
 
4,699

 
—

 
4,699

 
—

Interest income
 
5,710

 
2,545

 
16,622

 
7,152

Interest expense on indebtedness
 
(8,828
)
 
(4,677
)
 
(22,205
)
 
(13,547
)
Interest expense on finance leases
 
(228
)
 
—

 
(340
)
 
—

Equity in income of unconsolidated real estate entities
 
—

 
—

 
273

 
—

Loss on extinguishment of debt
 
—

 
(11
)
 
—

 
(11
)
Change in fair value of interest rate derivatives
 
(530
)
 
298

 
(3,926
)
 
1,256

Other income
 
362

 
65

 
426

 
233

Income tax benefit
 
199

 
120

 
339

 
552

Net income
 
$
12,063

 
$
5,669

 
$
24,403

 
$
18,597