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Segments
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segments Segments
 
Net operating income (segment revenues minus segment expenses) is the measure used by the Company’s chief operating decision-maker to assess segment performance. Net operating income is not a measure of operating income or cash flows from operating activities as measured by GAAP and is not indicative of cash available to fund cash needs. As a result, net operating income should not be considered as an alternative to cash flows as a measure of liquidity. Not all companies calculate net operating income in the same manner. The Company considers net operating income to be an appropriate supplemental measure to net income because it assists both investors and management in understanding the core operations of the Company’s real estate and construction businesses. 
 
Net operating income of the Company’s reportable segments for the years ended December 31, 2023, 2022, and 2021 was as follows (in thousands):
 Years Ended December 31, 
 202320222021
Retail real estate
Rental revenues$97,762 $86,344 $78,572 
Rental expenses16,170 13,769 12,512 
Real estate taxes8,806 8,873 8,416 
Segment net operating income72,786 63,702 57,644 
Office real estate            
Rental revenues82,517 74,036 47,363 
Rental expenses22,477 18,710 12,412 
Real estate taxes8,742 7,625 6,112 
Segment net operating income51,298 47,701 28,839 
Multifamily residential real estate   
Rental revenues58,645 58,914 66,205 
Rental expenses17,772 18,263 21,570 
Real estate taxes4,894 5,559 7,324 
Segment net operating income35,979 35,092 37,311 
General contracting and real estate services   
Segment revenues413,131 234,859 91,936 
Segment expenses399,713 227,158 88,100 
Segment gross profit13,418 7,701 3,836 
Real estate financing
Interest income
14,176 16,461 18,026 
Interest expense(a)
3,667 3,497 2,833 
Segment gross profit
10,509 12,964 15,193 
Net operating income$183,990 $167,160 $142,823 
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(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 amended credit facility, the M&T term loan facility, and the TD term loan facility, each as defined in Note 8.
 
The following table reconciles net operating income to net income for the years ended December 31, 2023, 2022, and 2021 (in thousands): 
 Years Ended December 31, 
 202320222021
Net operating income$183,990 $167,160 $142,823 
Interest income(a)
927 517 431 
Depreciation and amortization(96,078)(72,974)(68,853)
Amortization of right-of-use assets - finance leases(1,349)(1,110)(1,022)
General and administrative expenses(18,122)(15,691)(14,610)
Acquisition, development, and other pursuit costs(84)(37)(112)
Impairment charges(102)(416)(21,378)
Gain on real estate dispositions, net738 53,466 19,040 
Interest expense(b)
(54,143)(36,183)(31,072)
Loss on extinguishment of debt— (3,374)(3,810)
Change in fair value of derivatives and other(6,242)8,698 2,182 
Unrealized credit loss (provision) release(574)(626)792 
Other income (expense), net31 378 302 
Income tax (provision) benefit(1,329)145 742 
Net income$7,663 $99,953 $25,455 
________________________________________
(a) Excludes real estate financing segment interest income of $14.2 million, $16.5 million, and $18.0 million for the years ended 2023, 2022, and 2021, respectively.
(b) Excludes real estate financing segment interest expense of $3.7 million, $3.5 million, and $2.8 million for the years ended 2023, 2022, and 2021, respectively.

Rental expenses represent costs directly associated with the operation and management of the Company’s real estate properties. Rental expenses include asset management fees, property management fees, repairs and maintenance, insurance, and utilities.

General contracting and real estate services revenues for the years ended December 31, 2023, 2022, and 2021 exclude revenues related to intercompany construction contracts of $53.1 million, $58.1 million, and $27.8 million, respectively, which are eliminated in consolidation. General contracting and real estate services expenses for the years ended December 31, 2023, 2022, and 2021 exclude expenses related to intercompany construction contracts of $52.5 million, $57.5 million, and $27.6 million, respectively, which are eliminated in consolidation.

Depreciation and amortization expense for the year ended December 31, 2023 was $34.3 million, $44.3 million, and $16.9 million for the retail, office, and multifamily real estate segments, respectively. Depreciation and amortization expense for the year ended December 31, 2022 was $28.3 million, $27.0 million, and $17.3 million for the retail, office, and multifamily real estate segments, respectively. Depreciation and amortization expense for the year ended December 31, 2021 was $26.9 million, $17.8 million, and $23.8 million for the retail, office, and multifamily real estate segments, respectively.

General and administrative expenses represent costs not directly associated with the operation and management of the Company’s real estate properties and general contracting and real estate services businesses. General and administrative expenses include corporate office personnel salaries and benefits, bank fees, accounting fees, legal fees, and other corporate office expenses.

Interest expense on secured property debt for the year ended December 31, 2023 was $9.2 million $10.2 million, and $12.1 million for the retail, office, and multifamily real estate segments, respectively. Interest expense on secured property debt for the year ended December 31, 2022 was $8.4 million, $11.6 million, and $13.0 million for the retail, office, and multifamily real estate segments, respectively. Interest expense on secured property debt for the year ended December 31, 2021 was $7.9 million, $5.1 million, and $14.0 million for the retail, office, and multifamily real estate segments, respectively.