Segments (Tables)

6 Months Ended

Jun. 30, 2021

Net operating income of reportable segments

Net operating income of the Company’s reportable segments for the three and six months ended June 30, 2021 and 2020 was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Office real estate
Rental revenues	$	11,756	$	10,494	$	23,391	$	20,686
Rental expenses	2,938		2,291		5,813		4,837
Real estate taxes	1,413		1,228		2,771		2,374
Segment net operating income	7,405		6,975		14,807		13,475
Retail real estate
Rental revenues	19,204		18,714		37,459		39,125
Rental expenses	3,013		2,458		5,849		5,478
Real estate taxes	2,180		2,007		4,207		4,173
Segment net operating income	14,011		14,249		27,403		29,474
Multifamily residential real estate
Rental revenues	16,418		10,707		32,269		22,393
Rental expenses	5,341		3,560		10,462		7,369
Real estate taxes	1,872		998		3,793		2,019
Segment net operating income	9,205		6,149		18,014		13,005
General contracting and real estate services
Segment revenues	18,408		57,398		53,971		104,666
Segment expenses	18,131		55,342		52,406		100,892
Segment gross profit	277		2,056		1,565		3,774
Net operating income	$	30,898	$	29,429	$	61,789	$	59,728

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, 2021 and 2020 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net operating income	$	30,898	$	29,429	$	61,789	$	59,728
Depreciation and amortization	(17,285)		(13,777)		(35,351)		(28,056)
Amortization of right-of-use assets - finance leases	(278)		(146)		(467)		(293)
General and administrative expenses	(3,487)		(2,988)		(7,508)		(6,781)
Acquisition, development and other pursuit costs	(32)		(502)		(103)		(529)
Impairment charges	(83)		—		(3,122)		(158)
Gain on real estate dispositions	—		2,776		3,717		2,776
Interest income	6,746		4,412		10,862		11,638
Interest expense	(8,418)		(7,227)		(16,393)		(15,415)

Change in fair value of derivatives and other	314		(6)		707		(1,742)
Unrealized credit loss release (provision)	(388)		117		(333)		(260)
Other income (expense), net	7		286		186		344
Income tax benefit (provision)	461		(65)		480		192
Net income	$	8,455	$	12,309	$	14,464	$	21,444