Segments (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of Net Operating Income of Reportable Segments

The following table presents NOI for the Company's five reportable segments for the three and six months ended June 30, 2024 and 2023 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Retail real estate
Rental revenues	$	26,094	$	25,288	$	51,745	$	48,247
Rental expenses	4,394		4,073		8,605		7,717
Real estate taxes	2,420		2,340		4,835		4,608
Segment net operating income	19,280		18,875		38,305		35,922
Office real estate
Rental revenues	22,870		20,629		44,748		40,286
Rental expenses	5,956		5,332		12,079		10,491
Real estate taxes	2,135		2,157		4,350		4,242
Segment net operating income	14,779		13,140		28,319		25,553
Multifamily real estate
Rental revenues	14,301		14,034		28,653		27,636
Rental expenses	4,737		4,271		9,008		8,428
Real estate taxes	1,331		1,134		2,626		2,193
Segment net operating income	8,233		8,629		17,019		17,015
General contracting and real estate services
General contracting and real estate services revenues	116,839		102,574		243,814		186,812
General contracting and real estate services expenses	112,500		99,071		235,398		180,241
Segment gross profit	4,339		3,503		8,416		6,571
Real estate financing
Interest income	3,966		3,225		7,966		6,761
Interest expense(a)	1,767		809		3,099		1,906
Segment gross profit	2,199		2,416		4,867		4,855
Net operating income	$	48,830	$	46,563	$	96,926	$	89,916

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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 rates on the credit facility, the M&T term loan facility, and the TD term loan facility, each as defined in Note 9.

Schedule of Reconciliation of Net Income

The following table reconciles NOI to net income, the most directly comparable GAAP measure, for the three and six months ended June 30, 2024 and 2023 (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net operating income	$	48,830	$	46,563	$	96,926	$	89,916
Interest income(a)	666		189		1,292		372
Depreciation and amortization	(20,789)		(19,878)		(41,224)		(38,346)
Amortization of right-of-use assets - finance leases	(394)		(347)		(789)		(624)
General and administrative expenses	(4,503)		(4,052)		(10,377)		(9,500)
Acquisition, development, and other pursuit costs	(5,528)		(18)		(5,528)		(18)
Impairment charges	(1,494)		—		(1,494)		(102)
Gain on real estate dispositions, net	—		511		—		511
Interest expense(b)	(19,460)		(12,820)		(36,103)		(24,025)


Change in fair value of derivatives and other	4,398		5,005		17,286		2,558
Unrealized credit loss release (provision)	228		(100)		145		(177)
Other income, net	79		168		158		261
Income tax benefit (provision)	1,246		(336)		712		(524)
Net income	$	3,279	$	14,885	$	21,004	$	20,302

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(a) Excludes real estate financing segment interest income of $4.0 million and $3.2 million for the three months ended June 30, 2024 and 2023, respectively, and $8.0 million and $6.8 million for the six months ended June 30, 2024 and 2023, respectively.

(b) Excludes real estate financing segment interest expense of $1.8 million and $0.8 million for the three months ended June 30, 2024 and 2023, respectively, and $3.1 million and $1.9 million for the six months ended June 30, 2024 and 2023, respectively.