Segment Disclosures

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Disclosures

Note 8. Segment Disclosures

We historically operated in two reportable business segments: (i) student housing and (ii) senior housing. Our student housing operations consisted of our wholly-owned student housing properties, primarily consisting of month-to-month rental revenue that these student properties produced. Our senior housing operations consist of our wholly-owned senior housing properties, primarily consisting of month-to-month rental revenue and related ancillary revenue that these senior housing properties produce. The reportable segments offer different products and services to different customers and are therefore managed separately. On June 7, 2024, the Company executed an agreement of purchase and sale with an unaffiliated third party for the sale of our sole remaining student housing property located in Fayetteville, Arkansas (“Fayetteville property”). In June 2024, we concluded that the Fayetteville property sale qualified as discontinued operations as the property met the criteria of held for sale, and the disposal represents a strategic shift in our business as we will no longer own or operate student housing properties. Please see Note 3 - Discontinued Operations for additional details. On July 31, 2024, the Fayetteville property was sold. Subsequent to the sale, the Company only operates in a single segment.

The chief operating decision maker (“CODM”) is our chief executive officer. Our CODM and other management regularly evaluate performance based upon net income (loss) from continuing operations. Our CODM uses net income (loss) from continuing operations when making decisions about allocating capital and personnel. On a monthly and quarterly basis, our CODM considers budget-to-actual and period-to-period variances when evaluating company and property performance.

Reportable segment asset information is not provided to the CODM as the CODM does not use segment asset information to evaluate the business and allocate resources. For all periods presented, substantially all of the Company's real estate assets, intangible assets, other assets, accounts payable and accrued liabilities, and debt related to continuing operations are associated with the senior housing.

The following table summarizes information for the reportable segment for the years ended December 31, 2024, 2023, and 2022:

	Years ended December 31,
	2024			2023			2022
Leasing and leasing related revenues	$	34,927,831		$	32,592,265		$	30,055,980
Property operating expenses:
Payroll		(15,650,084	)		(14,387,880	)		(13,627,343	)
Food and related items		(2,059,485	)		(1,861,485	)		(1,662,315	)
Utilities		(1,786,813	)		(1,579,789	)		(1,346,487	)
Third-party property management fees		(1,702,174	)		(1,555,284	)		(1,342,763	)
Repairs and maintenance		(1,195,341	)		(1,235,142	)		(929,487	)
Property taxes		(963,015	)		(993,298	)		(977,643	)
Other direct property costs		(2,215,029	)		(1,937,857	)		(1,757,562	)
Total property operating expenses		(25,571,941	)		(23,550,735	)		(21,643,600	)
Property operating expenses - affiliates		2,018,569			1,984,186			1,943,352
General and administrative		2,240,127			2,441,031			1,718,876
Depreciation		5,359,748			5,671,415			5,584,240
Interest expense		5,297,133			5,368,710			5,439,744
Interest expense – debt issuance costs		142,102			142,105			142,103
Loss on extinguishment of debt (1)		—			—			1,985,602
Gain on sale of real estate, net (2)		—			—			(12,101,937	)
Other (income) loss		(50,236	)		(147,631	)		(606,608	)
Net (loss) income from continuing operations	$	(5,651,553	)	$	(6,418,286	)	$	4,307,008

(1)Relates to yield maintenance fees and the write-off of unamortized debt issuance costs related to the Tallahassee Nationwide mortgage loan, paid off in connection with the sale of the Tallahassee property on January 6, 2022.

(2)Relates to the net gain on the sale of the Tallahassee property, which was sold on January 6, 2022.