Segments (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of Net Operating Income of Reportable Segments

The following table presents NOI for the Company's five reportable segments for the three months ended March 31, 2023 and 2022 (in thousands):


	Three Months Ended March 31,
	2023		2022
Office real estate
Rental revenues	$	19,574	$	17,023
Rental expenses	5,103		4,140
Real estate taxes	2,095		1,504
Segment net operating income	12,376		11,379
Retail real estate
Rental revenues	22,438		21,430
Rental expenses	3,564		3,501
Real estate taxes	2,207		2,238
Segment net operating income	16,667		15,691
Multifamily real estate
Rental revenues	14,206		16,182
Rental expenses	4,293		5,028
Real estate taxes	1,110		1,662
Segment net operating income	8,803		9,492
General contracting and real estate services
General contracting and real estate services revenues	84,238		24,650
General contracting and real estate services expenses	81,170		23,821
Segment gross profit	3,068		829
Real estate financing
Interest income	3,536		3,459
Interest expense(a)	1,097		825
Segment gross profit	2,439		2,634
Net operating income	$	43,353	$	40,025

________________________________________

(a) Interest expense within the real estate financing segment is allocated based on the average outstanding principal of notes receivable in the real estate financing portfolio, and the effective interest rate on the credit facility, as defined in Note 8.

Reconciliation of Net Income

The following table reconciles NOI to net income, the most directly comparable GAAP measure, for the three months ended March 31, 2023 and 2022 (in thousands):


	Three Months Ended March 31,
	2023		2022
Net operating income	$	43,353	$	40,025
Interest income(a)	183		109
Depreciation and amortization	(18,468)		(18,557)
Amortization of right-of-use assets - finance leases	(277)		(278)
General and administrative expenses	(5,448)		(4,708)
Acquisition, development and other pursuit costs	—		(11)
Impairment charges	(102)		(47)

Interest expense(b)	(11,205)		(8,206)

Loss on extinguishment of debt	—		(158)
Change in fair value of derivatives and other	(2,447)		4,182
Unrealized credit loss provision	(77)		(605)
Other income (expense), net	93		229
Income tax (provision) benefit	(188)		301
Net income	$	5,417	$	12,276

________________________________________

(a) Excludes real estate financing segment interest income of $3.5 million and $3.5 million for the three months ended March 31, 2023 and 2022, respectively.

(b) Excludes real estate financing segment interest expense of $1.1 million and $0.8 million for the three months ended March 31, 2023 and 2022, respectively.