Note 19 - Segment Reporting

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Reporting

Note 19 - Segment Reporting

The Company operates as a single reporting segment that derives revenues primarily from rental income. The accounting policies are consistent with those described above in Note 2. The Company’s CODM is the Chief Executive Officer. Net operating income (“NOI”) is the measure used by the Company’s CODM to assess the operating segment’s performance. The Company defines NOI as rental income less property operating expenses, including real estate taxes. The Company also excludes the impact of straight-line rent revenue, net amortization of above and below market leases, depreciation, interest, impairments and gains or losses of real estate assets and other significant infrequent items that create volatility in our earning and make it difficult to determine the earnings generated by our core ongoing business. 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 as an alternative to cash flows or 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 provides additional information to allow management, investors and our current and potential creditors to evaluate and compare our core operating results.

The CODM does not evaluate the operating segment or make decisions regarding the operating segment based on assets. Consequently, we do not disclose total assets.

The table below compares NOI of the Company’s reportable segment for the year ended December 31, 2024 and 2023 and the reconciliation of segment NOI to net loss:

	For the Year Ended December 31,
	2024			2023
Rental income (1)	$	38,228		$	38,172
Property operating expenses
Property taxes		4,021			3,884
Contract maintenance		2,304			2,297
Utilities		1,759			1,888
Repairs		1,565			1,310
Other segment items (2)		2,014			2,274
Total property operating expenses		11,663			11,653
Segment net operating income		26,565			26,519
Reconciliation of net operating income to net loss
Commissions		2,329			2,897
Management and other income		206			282
Straight-line rent revenue		862			1,137
Amortization of above and below market lease, net		(280	)		(319	)
Cost of services		(2,103	)		(2,493	)
Depreciation and amortization		(14,930	)		(18,778	)
Impairment of real estate assets		(560	)		(973	)
Impairment of real estate held for sale		—			(2,353	)
Bad debt expense		(268	)		(134	)
General and administrative		(12,113	)		(11,891	)
Gain on disposal of properties		—			11,486
Net interest and other income		1,084			938
Derivative fair value adjustment		589			(692	)
Net gain on fair value change on debt held under the fair value option		2,318			2,344
Interest expense		(18,381	)		(18,504	)
Loss on extinguishment of debt		(7	)		(43	)
Other expense		(31	)		(68	)
Income tax (expense) benefit, net		(78	)		3,628
Net loss	$	(14,798	)	$	(7,017	)

(1)Excludes straight-line revenue and net amortization of above and below market lease.

(2)Other segment items include expenses relating to insurance, administrative, payroll and related items and management fees.