Segment Information

9 Months Ended

Sep. 30, 2022

Segment Information

Segment Information

10.      Segment Information

The Company establishes operating segments at the property level and aggregates individual properties into reportable segments based on product types in which the Company has investments. As of September 30, 2022, the Company had the following reportable segments:  retail center properties, flex center properties and hotel properties. During the periods presented, there have been no material intersegment transactions.

Although the Company’s flex center property has tenants that are similar to tenants in its retail center properties, the Company considers its flex center properties as a separate reportable segment. Flex properties are considered by the real estate industry as a distinct subset of the industrial market segment. Flex properties contain a mix of industrial/warehouse and office spaces. Warehouse space that is not air conditioned can be used flexibly by building office or showroom space that is air conditioned, depending on tenants’ needs.

Net operating income ("NOI") is a non-GAAP financial measure and is not considered a measure of operating results or cash flows from operations under GAAP. NOI is the primary performance measure reviewed by management to assess operating performance of properties and is calculated by deducting operating expenses from operating revenues. Operating revenues include rental income, tenant reimbursements, hotel income, and other property income; and operating expenses include retail center property and hotel operating costs. The NOI performance metric consists of only revenues and expenses directly related to real estate rental operations. NOI reflects property acquisitions and dispositions, occupancy levels, rental rate increases or decreases, and the recoverability of operating expenses. NOI, as the Company calculates it, may not be directly comparable to similarly titled, but differently calculated, measures for other REITs.

Asset information and capital expenditures by segment are not reported because the Company does not use these measures to assess performance. Depreciation and amortization expense, along with other expense and income items, are not allocated among segments.

The following table presents property operating revenues, expenses and NOI by product type:

	For the three months ended September 30,
	Hotel properties				Retail center properties					Flex center property			Total
	2022		2021		2022		2021		2022		2021		2022		2021
Revenues	$	379,309	$	1,280,338	$	1,850,797	$	1,494,219	$	610,967	$	263,586	$	2,841,073	$	3,038,143
Operating expenses		589,311		960,994		491,889		397,250		189,720		78,045		1,270,920		1,436,289
Bad debt expense		—		—		—		22,140		—		678		—		22,818
Net operating (loss) income	$	(210,002)	$	319,344	$	1,358,908	$	1,074,829	$	421,247	$	184,863	$	1,570,153	$	1,579,036

For the nine months ended September 30,
Hotel properties	Retail center properties	Flex center property	Total

	2022		2021		2022		2021		2022		2021		2022		2021
Revenues	$	1,507,649	$	4,009,041	$	4,999,089	$	4,049,209	$	1,834,200	$	630,007	$	8,340,938	$	8,688,257
Operating expenses		1,302,114		2,733,578		1,384,061		1,079,014		511,771		196,849		3,197,946		4,009,441
Bad debt expense		—		—		7,954		25,336		4,992		678		12,946		26,014
Net operating income	$	205,535	$	1,275,463	$	3,607,074	$	2,944,859	$	1,317,437	$	432,480	$	5,130,046	$	4,652,802