Segment Reporting

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Reporting

Note 17 - Segment Reporting

The Company operates in two reportable segments: Real Estate and Real Estate Debt. The Company allocates resources and evaluates results based off of the performance of each segment individually. The Company believes that Segment Net Operating Income is the key performance metric that captures the unique operating characteristics of each segment.

The following table sets forth the total assets by segment as of September 30, 2024 and December 31, 2023 ($ in thousands):

	September 30, 2024		December 31, 2023
Real Estate	$	285,349	$	183,492
Real Estate Debt		733,104		330,974
Other Corporate		142,281		95,205
Total Assets	$	1,160,734	$	609,671

The following table sets forth the financial results by segment for the three months ended September 30, 2024 ($ in thousands):

	Real Estate			Real Estate Debt			Other Corporate		Total
Revenue										—
Rental revenue	$	6,302		$	—		$	—	$	6,302
Total revenues		6,302			—			—		6,302
Expenses
Rental property operating		(1,474	)		—			—		(1,474	)
Interest expense, net		(566	)		(3,525	)		—		(4,091	)
Total segment expenses		(2,040	)		(3,525	)		—		(5,565	)
Income from investments in real estate debt		—			17,366			—		17,366
Segment net operating income	$	4,262		$	13,841		$	—	$	18,103
Depreciation and amortization	$	(2,793	)	$	—		$	—	$	(2,793	)
General and administrative										(1,424	)
Management fee										(2,121	)
Performance participation allocation										(75	)
Other income										1,549
Net income									$	13,239
Net income attributable to non-controlling interests in the Operating Partnership									$	1,709
Net income attributable to ARIS stockholders									$	11,530

The following table sets forth the financial results by segment for the three months ended September 30, 2023 ($ in thousands):

	Real Estate			Real Estate Debt		Other Corporate		Total
Revenue									—
Rental revenue	$	1,543		$	—	$	—	$	1,543
Total revenues		1,543			—		—		1,543
Expenses
Rental property operating		(208	)		—		—		(208	)
Interest expense, net		—			—		—		—
Total segment expenses		(208	)		—		—		(208	)
Income from investments in real estate debt		—			5,411		—		5,411
Segment net operating income	$	1,335		$	5,411	$	—	$	6,746
Depreciation and amortization	$	(572	)	$	—	$	—	$	(572	)
General and administrative									(1,786	)
Management fee									(1,041	)
Performance participation allocation									(211	)
Other income									2,153
Net income								$	5,289
Net income attributable to non-controlling interests in the Operating Partnership								$	1,378
Net income attributable to ARIS stockholders								$	3,911

The following table sets forth the financial results by segment for the nine months ended September 30, 2024 ($ in thousands):

	Real Estate			Real Estate Debt			Other Corporate		Total
Revenue										—
Rental revenue	$	15,020		$	—		$	—	$	15,020
Total revenues		15,020			—			—		15,020
Expenses
Rental property operating		(2,871	)		—			—		(2,871	)
Interest expense, net		(1,697	)		(5,048	)		—		(6,745	)
Total segment expenses		(4,568	)		(5,048	)		—		(9,616	)
Income from investments in real estate debt		—			41,931			—		41,931
Segment net operating income	$	10,452		$	36,883		$	—	$	47,335
Depreciation and amortization	$	(6,375	)	$	—		$	—	$	(6,375	)
General and administrative										(4,703	)
Management fee										(5,437	)
Performance participation allocation										(347	)
Other income										4,022
Net income									$	34,495
Net income attributable to non-controlling interests in the Operating Partnership									$	5,127
Net income (loss) attributable to preferred stockholders									$	7
Net income attributable to ARIS stockholders									$	29,361

The following table sets forth the financial results by segment for the nine months ended September 30, 2023 ($ in thousands):

	Real Estate			Real Estate Debt		Other Corporate		Total
Revenue									—
Rental revenue	$	3,590		$	—	$	—	$	3,590
Total revenues		3,590			—		—		3,590
Expenses
Rental property operating		(412	)		—		—		(412	)
Interest expense, net		—			—		—		—
Total segment expenses		(412	)		—		—		(412	)
Income from investments in real estate debt		—			9,306		—		9,306
Segment net operating income	$	3,178		$	9,306	$	—	$	12,484
Depreciation and amortization	$	(1,200	)	$	—	$	—	$	(1,200	)
General and administrative									(4,320	)
Management fee									(2,139	)
Performance participation allocation									(358	)
Other income									4,550
Net income								$	9,017
Net income attributable to non-controlling interests in the Operating Partnership								$	2,851
Net income (loss) attributable to preferred stockholders								$	—
Net income attributable to ARIS stockholders								$	6,166