Segments (Tables)

3 Months Ended

Mar. 31, 2020

Net operating income of reportable segments

Net operating income of the Company’s reportable segments for the three months ended March 31, 2020 and 2019 was as follows (in thousands):



	Three Months Ended March 31,
	2020		2019
Office real estate
Rental revenues	$	10,192	$	5,556
Rental expenses	2,546		1,486
Real estate taxes	1,146		526
Segment net operating income	6,500		3,544
Retail real estate
Rental revenues	20,411		17,257
Rental expenses	3,020		2,600
Real estate taxes	2,166		1,811
Segment net operating income	15,225		12,846
Multifamily residential real estate
Rental revenues	11,686		8,096
Rental expenses	3,809		2,639
Real estate taxes	1,021		791
Segment net operating income	6,856		4,666
General contracting and real estate services
Segment revenues	47,268		17,036
Segment expenses	45,550		16,286
Segment gross profit	1,718		750
Net operating income	$	30,299	$	21,806

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, 2020 and 2019 (in thousands):



	Three Months Ended March 31,
	2020			2019
Net operating income	$	30,299		$	21,806
Depreciation and amortization	(14,279		)	(9,904		)
Amortization of right-of-use assets - finance leases	(147		)	—
General and administrative expenses	(3,793		)	(3,401		)
Acquisition, development and other pursuit costs	(27		)	(400		)
Impairment charges	(158		)	—
Interest income	7,226			5,319
Interest expense on indebtedness	(7,959		)	(5,886		)
Interest expense on finance leases	(229		)	—
Equity in income of unconsolidated real estate entities	—			273
Change in fair value of interest rate derivatives	(1,736		)	(1,463		)
Provision for unrealized credit losses	(377		)	—
Other income (expense), net	58			60
Income tax benefit	257			110
Net income	$	9,135		$	6,514