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SEGMENT DISCLOSURE
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
SEGMENT DISCLOSURE
18. SEGMENT DISCLOSURE
The Company’s reportable segments during the years ended December 31, 2024 and 2023 consist of three types of commercial real estate properties, namely, office, hotel and multifamily, as well as a segment for the Company’s lending business. Management internally evaluates the operating performance and financial results of the segments based on net operating income. The Company also has certain general and administrative level activities, including public company expenses, legal, accounting, and tax preparation that are not considered separate operating segments. The reportable segments are accounted for on the same basis of accounting as described in Note 2.
For the Company’s real estate segments, the Company defines net operating income (loss) as rental and other property income and expense reimbursements less property related expenses, and excludes non-property income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, gain (loss) on sale of real estate, gain (loss) on early extinguishment of debt, impairment of real estate, transaction costs, and provision (benefit) for income taxes. For the Company’s lending segment, the Company defines net operating income as interest income net of interest expense and general overhead expenses.
The Company’s chief operating decision maker (“CODM”) is the Company’s executive management team, comprised of the Chief Executive Officer, Chief Investment Officer, Chief Financial Officer, and the 1st Vice President for portfolio oversight of CIM.
The CODM evaluates performance and allocates resources based on segment net operating income (loss). All expense categories on the statement of operations are significant and there are no other significant segment expenses that would require
disclosure. The CODM uses net operating income (loss) to make key operating decisions, such as identifying attractive investment opportunities, evaluating underwriting standards, determining the appropriate level of leverage to enhance returns on equity and deciding on the sources of financing.
The net operating income (loss) of the Company’s segments for the years ended December 31, 2024 and 2023 is as follows:
Year Ended December 31,
20242023
(in thousands)
Office (1):
Revenues$54,283 $55,033 
Property expenses:
Operating26,608 25,731 
General and administrative719 344 
Total property expenses27,327 26,075 
Income (loss) from unconsolidated entities
462 (582)
Segment net operating income—office27,418 28,376 
Hotel:
Revenues39,407 41,096 
Property expenses:
Operating27,807 27,959 
General and administrative148 33 
Total property expenses27,955 27,992 
Segment net operating income—hotel11,452 13,104 
Multifamily (1):
Revenues19,515 11,224 
Property expenses:
Operating13,547 8,803 
General and administrative168 661 
Total property expenses13,715 9,464 
(Loss) income from unconsolidated entities
(1,268)155 
Segment net operating income—multifamily4,532 1,915 
Lending:
Revenues10,756 11,458 
Lending expenses:
Interest expense3,283 3,692 
Expense reimbursements to related parties—lending segment2,571 2,579 
General and administrative1,702 1,628 
Total lending expenses7,556 7,899 
Segment net operating income—lending3,200 3,559 
Total segment net operating income$46,602 $46,954 
(1)Beginning in the quarter ended December 31, 2024, the Company reclassified its investment in the 4750 Wilshire JV to include income from the investment in the multifamily segment from its previous classification in the office segment. This change corresponded with the 4750 Wilshire JV’s substantial completion of the 4750 Wilshire Project. In the above table, the Company’s income earned from its investment in the 4750 Wilshire JV prior to October 1, 2024 is included within the
office segment and its income earned from its investment in the 4750 Wilshire JV subsequent to October 1, 2024 is included within the multifamily segment. In addition, beginning in the quarter ended December 31, 2024, the Company reclassified its consolidated property located at 4750 Wilshire Boulevard (Backlot) in Los Angeles, California to include the property it in the multifamily segment, from its previous classification in the office segment. In the above table, activity related to 4750 Wilshire Boulevard (Backlot) occurring prior to October 1, 2024 is included within the office segment and such activity subsequent to October 1, 2024 is included within the multifamily segment. In the above table, activity related to both the 1910 Sunset JV and 1015 N Mansfield JV are included within the office segment, while activity related to the 1902 Park JV is included in the multifamily segment.
A reconciliation of the Company’s segment net operating income to net income attributable to the Company for the years ended December 31, 2024 and 2023 is as follows: 
Year Ended December 31,
20242023
(in thousands)
Total segment net operating income$46,602 $46,954 
Interest and other income551 447 
Asset management and other fees to related parties(1,797)(2,627)
Expense reimbursements to related parties—corporate(2,281)(2,342)
Interest expense(33,589)(31,406)
General and administrative(4,267)(5,453)
Transaction costs(1,382)(4,421)
Depreciation and amortization(27,373)(52,484)
Loss on early extinguishment of debt(1,416)— 
Gain on sale of real estate— 1,104 
(Loss) income before provision for income taxes(24,952)(50,228)
Provision for income taxes(798)(1,228)
Net (loss) income(25,750)(51,456)
Net loss (income) attributable to noncontrolling interests575 2,971 
Net (loss) income attributable to the Company$(25,175)$(48,485)
The condensed assets for each of the segments as of December 31, 2024 and 2023 are as follows:
December 31,
20242023
(in thousands)
Condensed assets:
Office $421,438 $419,443 
Hotel108,963 95,998 
Multifamily279,308 278,492 
Lending71,192 76,374 
Non-segment assets
8,654 20,893 
Total assets$889,555 $891,200 
(1)Beginning in the quarter ended December 31, 2024, the Company reclassified its consolidated property located at 4750 Wilshire Boulevard (Backlot) in Los Angeles, California to include the property it in the multifamily segment, from its previous classification in the office segment. In the above table, the assets related to 4750 Wilshire Boulevard (Backlot) as of December 31, 2024 and 2023 are included in with Multifamily and Office, respectively.