XML 36 R11.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segments Segments
 
The Company operates its business in five reportable segments: (i) retail real estate, (ii) office real estate, (iii) multifamily real estate, (iv) general contracting and real estate services, and (v) real estate financing. Refer to Note 1 for the composition of properties within each property segment.
Net operating income ("NOI") is the primary measure used by the Company’s CODM to assess segment performance. NOI is calculated as segment revenues less segment expenses. Segment revenues include rental revenues for the property segments, general contracting and real estate services revenues for the general contracting and real estate services segment, and interest income for the real estate financing segment. Segment expenses include rental expenses and real estate taxes for the property segments, general contracting and real estate services expenses for the general contracting and real estate services segment, and interest expense for the real estate financing segment. Segment NOI for the general contracting and real estate services and real estate financing segments is also referred to as segment gross profit as illustrated in the table below. NOI 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, NOI should not be considered an alternative to cash flows as a measure of liquidity. Not all companies calculate NOI in the same manner. The Company considers NOI 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, construction, and real estate financing businesses. 

Since the Company's Annual Report on Form 10-K for the year ended December 31, 2023, the Company retrospectively reclassified certain components of mixed-use properties between the retail, office, and multifamily real estate segments in order to align the components of those properties with their tenant composition. As a result, (i) NOI for the year ended December 31, 2023 increased $1.6 million and $0.2 million for the retail and office real estate segments, respectively, and decreased $1.7 million for the multifamily real estate segment, and (ii) NOI for the year ended December 31, 2022 increased $1.0 million and $0.6 million for the retail and office real estate segments, respectively, and decreased $1.6 million for the multifamily real estate segment. These reclassifications had no effect on total property NOI as previously reported. These reclassifications also had no impact on the Company's general contracting and real estate services or real estate financing segments. Additionally, beginning in 2024 annual reporting period, we adopted ASU 2023-07 retrospectively.
The following tables set forth financial information by segment for the years ended December 31, 2024, 2023, and 2022 (in thousands) and includes a reconciliation of the primary measure of segment profit (NOI) to Net Income:

For the Year Ended December 31, 2024
Retail Real EstateOffice Real EstateMultifamily Real EstateGeneral Contracting and Real Estate ServicesReal Estate Financing
Other (a)
Total
Revenues
Rental revenues
$103,435 $95,007 $58,255 $— $— $— $256,697 
General contracting and real estate services revenues (b)
— — — 433,177 — — 433,177 
Interest income (real estate financing segment)— — — — 16,077 2,519 18,596 
Total revenues103,435 95,007 58,255 433,177 16,077 2,519 708,470 
Expenses
Rental expenses (c)
18,221 25,048 19,141 — — — 62,410 
Real estate taxes9,421 8,731 5,156 — — — 23,308 
General contracting and real estate services expenses (b)
— — — 419,302 — — 419,302 
Interest expense (real estate financing segment) (d)
— — — — 6,588 — 6,588 
Total segment operating expenses
27,642 33,779 24,297 419,302 6,588 — 511,608 
Segment net operating income
75,793 61,228 33,958 13,875 9,489 2,519 $196,862 
Interest income (excluding real estate financing segment)84 11 120 — — (215)— 
Depreciation and amortization(38,224)(35,819)(16,314)— — (605)(90,962)
General and administrative expenses— — — — — (20,225)(20,225)
Acquisition, development and other pursuit costs— (5,528)— — — (3)(5,531)
Impairment charges— (1,494)— — — — (1,494)
Gain on real estate dispositions, net21,305 — — — — — 21,305 
Interest expense (excluding real estate financing segment)(27,931)(26,887)(17,559)— — — (72,377)
Equity in income of unconsolidated real estate entities2 238 5 — — — 245 
Loss on extinguishment of debt(192)— (55)— — — (247)
Change in fair value of derivatives and other5,004 4,056 1,886 — 1,991 1,314 14,251 
Unrealized credit loss (provision) release— — — — (166)10 (156)
Other (expense) income, net73 139 (64)— — 61 209 
Income tax benefit (provision)— 1,634 — (1,020)— — 614 
Net income (loss)$35,914 $(2,422)$1,977 $12,855 $11,314 $(17,144)$42,494 
For the Year Ended December 31, 2023
Retail Real EstateOffice Real EstateMultifamily Real EstateGeneral Contracting and Real Estate ServicesReal Estate Financing
Other (a)
Total
Revenues
Rental revenues
$99,924 $82,855 $56,145 $— $— $— $238,924 
General contracting and real estate services revenues (b)
— — — 413,131 — — 413,131 
Interest income (real estate financing segment)
— — — — 14,176 927 15,103 
Total revenues99,924 82,855 56,145 413,131 14,176 927 667,158 
Expenses
Rental expenses (c)
16,470 22,708 17,241 — — — 56,419 
Real estate taxes9,102 8,682 4,658 — — — 22,442 
General contracting and real estate services expenses (b)
— — — 399,713 — — 399,713 
Interest expense (real estate financing segment) (d)
— — — — 3,667 — 3,667 
Total segment operating expenses
25,572 31,390 21,899 399,713 3,667 — 482,241 
Segment net operating income
74,352 51,465 34,246 13,418 10,509 927 184,917 
Interest income (excluding real estate financing segment)
4 — 43 — — (47)— 
Depreciation and amortization(39,149)(44,805)(12,977)— — (496)(97,427)
General and administrative expenses— — — — — (18,122)(18,122)
Acquisition, development and other pursuit costs— — — — — (84)(84)
Impairment charges(102)— — — — — (102)
Gain on real estate dispositions738 — — — — — 738 
Interest expense (excluding real estate financing segment)(21,561)(18,810)(13,772)— — — (54,143)
Change in fair value of derivatives and other(1,826)(1,481)(340)— (561)(2,034)(6,242)
Unrealized credit loss release (provision)— — — — (573)(1)(574)
Other income (expense), net(123)(51)76 — — 129 31 
Income tax benefit (provision)— — — (1,329)— — (1,329)
Net income (loss)$12,333 $(13,682)$7,276 $12,089 $9,375 $(19,728)$7,663 
For the Year Ended December 31, 2022
Retail Real EstateOffice Real EstateMultifamily Real EstateGeneral Contracting and Real Estate ServicesReal Estate Financing
Other (a)
Total
Revenues
Rental revenues
$87,788 $74,970 $56,536 $— $— $— $219,294 
General contracting and real estate services revenues (b)
— — — 234,859 — — 234,859 
Interest income (real estate financing segment)
— — — — 16,461 517 16,978 
Total revenues87,788 74,970 56,536 234,859 16,461 517 471,131 
Less
Rental expenses (c)
13,980 19,003 17,759 — — — 50,742 
Real estate taxes9,122 7,617 5,318 — — — 22,057 
General contracting and real estate services expenses (b)
— — — 227,158 — — 227,158 
Interest expense (Real estate financing segment) (d)
— — — — 3,497 — 3,497 
Total segment operating expenses
23,102 26,620 23,077 227,158 3,497 — 303,454 
Segment net operating income
64,686 48,350 33,459 7,701 12,964 517 167,677 
Interest income (excluding Real estate financing segment)
— — 9 — — (9)— 
Depreciation and amortization(32,683)(27,476)(13,586)— — (339)(74,084)
General and administrative expenses— — — — — (15,691)(15,691)
Acquisition, development and other pursuit costs— — — — — (37)(37)
Impairment charges(416)— — — — — (416)
Gain on real estate dispositions23,306 — 30,160 — — — 53,466 
Interest expense (excluding Real estate financing segment)
(10,685)(13,178)(12,320)— — — (36,183)
Equity in income of unconsolidated real estate entities
— — — — — — — 
Loss on extinguishment of debt(2,529)(532)(313)— — — (3,374)
Change in fair value of derivatives and other2,376 1,023 6 — 3,814 1,479 8,698 
Unrealized credit loss release (provision)— — — — (386)(240)(626)
Other income (expense), net170 (33)150 — — 91 378 
Income tax benefit (provision)— — — 145 — — 145 
Net income (loss)$44,225 $8,154 $37,565 $7,846 $16,392 $(14,229)$99,953 
________________________________________
(a) Other includes items not directly associated with the operation and management of the Company’s real estate properties, general contracting and real estate services, and real estate financing businesses. General and administrative expenses include corporate office personnel salaries and benefits, bank fees, accounting fees, legal fees, and other corporate office expenses.
(b) General contracting and real estate services revenues for the years ended December 31, 2024, 2023, and 2022 exclude revenues related to intercompany construction contracts of $18.1 million, $53.1 million, and $58.1 million, respectively, which are eliminated in consolidation. General contracting and real estate services expenses for the years ended December 31, 2024, 2023, and 2022 exclude expenses related to intercompany construction contracts of $17.9 million, $52.5 million, and $57.5 million, respectively, which are eliminated in consolidation.

(c) 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.
(d) 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, the M&T term loan facility, and the TD term loan facility, each as defined in Note 9.

 
The following table summarizes key balance sheet data by segment (in thousands):

Retail real estate
Office real estate
Multifamily real estate
General contracting and real estate services
Real estate financing
Other
Total
December 31, 2024
Real estate investments, at cost
$836,740 $812,679 $547,566 $— $— $— $2,196,985 
Notes receivable, net
— — — — 132,565— 132,565 
Equity method investments
7,630 62,288 88,233 — — — 158,151 
December 31, 2023
Real estate investments, at cost
$878,498 $798,857 $529,932 $— $— $— $2,207,287 
Notes receivable, net
— — — — 94,172— 94,172 
Equity method investments6,508 62,442 73,081 — — — 142,031