Segments (Tables)

3 Months Ended

Mar. 31, 2022

Net operating income of reportable segments

Net operating income of the Company’s reportable segments for the three months ended March 31, 2022 and 2021 was as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Office real estate
Rental revenues	$	17,023	$	11,635
Rental expenses	4,140		2,875
Real estate taxes	1,504		1,358
Segment net operating income	11,379		7,402
Retail real estate
Rental revenues	21,430		18,255
Rental expenses	3,501		2,836
Real estate taxes	2,238		2,027
Segment net operating income	15,691		13,392
Multifamily residential real estate
Rental revenues	16,182		15,851
Rental expenses	5,028		5,121
Real estate taxes	1,662		1,921
Segment net operating income	9,492		8,809
General contracting and real estate services
Segment revenues	24,650		35,563
Segment expenses	23,821		34,275
Segment gross profit	829		1,288
Net operating income	$	37,391	$	30,891

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, 2022 and 2021 (in thousands):


	Three Months Ended March 31,
	2022		2021
Net operating income	$	37,391	$	30,891
Depreciation and amortization	(18,557)		(18,066)
Amortization of right-of-use assets - finance leases	(278)		(189)
General and administrative expenses	(4,708)		(4,021)
Acquisition, development and other pursuit costs	(11)		(71)
Impairment charges	(47)		(3,039)
Gain on real estate dispositions, net	—		3,717
Interest income	3,568		4,116
Interest expense	(9,031)		(7,975)

Loss on extinguishment of debt	(158)		—
Change in fair value of derivatives and other	4,182		393
Unrealized credit loss (provision) release	(605)		55
Other income (expense), net	229		179
Income tax benefit	301		19
Net income	$	12,276	$	6,009