Segments (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2024 and 2023 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Retail real estate
Rental revenues	$	26,161	$	26,502	$	77,905	$	74,749
Rental expenses	5,104		4,227		14,099		11,944
Real estate taxes	2,466		2,384		7,300		6,992
Segment net operating income	18,591		19,891		56,506		55,813
Office real estate
Rental revenues	27,784		22,052		72,532		62,338
Rental expenses	6,307		5,950		17,793		16,441
Real estate taxes	2,360		2,252		6,710		6,494
Segment net operating income	19,117		13,850		48,029		39,403
Multifamily real estate
Rental revenues	14,653		14,359		43,307		41,995
Rental expenses	5,241		4,579		14,452		13,007
Real estate taxes	1,358		1,231		3,985		3,424
Segment net operating income	8,054		8,549		24,870		25,564
General contracting and real estate services
General contracting and real estate services revenues	114,353		99,408		358,167		286,220
General contracting and real estate services expenses	110,987		96,095		346,385		276,336
Segment gross profit	3,366		3,313		11,782		9,884
Real estate financing
Interest income	4,072		3,496		12,038		10,257
Interest expense(a)	1,724		728		4,823		2,634
Segment gross profit	2,348		2,768		7,215		7,623
Net operating income	$	51,476	$	48,371	$	148,402	$	138,287

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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 (Loss) Income

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net operating income	$	51,476	$	48,371	$	148,402	$	138,287
Interest income(a)	629		194		1,921		566
Depreciation and amortization	(23,289)		(22,462)		(64,513)		(60,808)
Amortization of right-of-use assets - finance leases	(395)		(425)		(1,184)		(1,049)
General and administrative expenses	(5,187)		(4,286)		(15,564)		(13,786)
Acquisition, development, and other pursuit costs	(2)		—		(5,530)		(18)
Impairment charges	—		(5)		(1,494)		(107)
Gain on real estate dispositions, net	—		227		—		738
Interest expense(b)	(19,663)		(14,716)		(55,766)		(38,741)

Loss on extinguishment of debt	(113)		—		(113)		—
Change in fair value of derivatives and other	(10,308)		2,466		6,978		5,024
Unrealized credit loss provision	(198)		(694)		(53)		(871)
Other income (expense), net	96		63		254		324
Income tax (provision) benefit	(592)		(310)		120		(834)
Net (loss) income	$	(7,546)	$	8,423	$	13,458	$	28,725

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(a) Excludes real estate financing segment interest income of $4.1 million and $3.5 million for the three months ended September 30, 2024 and 2023, respectively, and $12.0 million and $10.3 million for the nine months ended September 30, 2024 and 2023, respectively.

(b) Excludes real estate financing segment interest expense of $1.7 million and $0.7 million for the three months ended September 30, 2024 and 2023, respectively, and $4.8 million and $2.6 million for the nine months ended September 30, 2024 and 2023, respectively.