AH Realty Trust, Inc.AHRT
AH Realty Trust, Inc. Segments Disclosure
Segments
The Company operates its business in four reportable segments: (i) retail real estate, (ii) office real estate, (iii) multifamily real estate, and (iv) real estate financing. Refer to Note 1 for the composition of properties within each property segment.
Net operating income ("NOI") is the primary measure used by the Company’s CODM to assess segment performance. NOI is calculated as segment revenues less segment expenses. Segment revenues include rental revenues for the property segments, and interest income for the real estate financing segment. Segment expenses include rental expenses and real estate taxes for the property segments and interest expense for the real estate financing segment. Segment NOI for the real estate financing segment is also referred to as segment gross profit. 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 an alternative to cash flows 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 assists both investors and management in understanding the core operations of the Company’s real estate, and real estate financing businesses.
The following tables set forth financial information by segment for the years ended December 31, 2025, 2024, and 2023 (in thousands) and includes a reconciliation of the primary measure of segment profit (NOI) to Net Income:
| For the Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Retail Real Estate | Office Real Estate | Multifamily Real Estate | Real Estate Financing | Other (1) | Total | ||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||
| Rental revenues | $ | 100,394 | $ | 103,147 | $ | 66,083 | $ | — | $ | — | $ | 269,624 | |||||||||||||||||||||||
| Interest income (real estate financing segment) | — | — | — | 14,831 | 746 | 15,577 | |||||||||||||||||||||||||||||
| Total revenues | 100,394 | 103,147 | 66,083 | 14,831 | 746 | 285,201 | |||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||
Rental expenses (2) | 17,445 | 27,059 | 22,408 | — | — | 66,912 | |||||||||||||||||||||||||||||
| Real estate taxes | 9,174 | 9,539 | 6,387 | — | — | 25,100 | |||||||||||||||||||||||||||||
Interest expense (real estate financing segment) (3) | — | — | — | 8,002 | — | 8,002 | |||||||||||||||||||||||||||||
| Total segment operating expenses | 26,619 | 36,598 | 28,795 | 8,002 | — | 100,014 | |||||||||||||||||||||||||||||
| Segment net operating income | 73,775 | 66,549 | 37,288 | 6,829 | 746 | 185,187 | |||||||||||||||||||||||||||||
| Interest income (excluding real estate financing segment) | 39 | 12 | 126 | — | (177) | — | |||||||||||||||||||||||||||||
| Depreciation and amortization | (32,374) | (36,715) | (21,565) | — | (868) | (91,522) | |||||||||||||||||||||||||||||
| General and administrative expenses | — | — | — | — | (20,341) | (20,341) | |||||||||||||||||||||||||||||
| Acquisition, development, and other pursuit costs | — | — | — | — | (93) | (93) | |||||||||||||||||||||||||||||
| Impairment charges | — | 29 | (55) | — | (347) | (373) | |||||||||||||||||||||||||||||
Interest expense (excluding real estate financing segment) (4) | (29,051) | (28,293) | (19,963) | — | — | (77,307) | |||||||||||||||||||||||||||||
| Equity in loss of unconsolidated real estate entities | (177) | (1,055) | (908) | — | — | (2,140) | |||||||||||||||||||||||||||||
Gain on consolidation of real estate entities | 415 | 2,785 | 3,446 | — | — | 6,646 | |||||||||||||||||||||||||||||
| Loss on extinguishment of debt | 17 | (36) | (50) | — | — | (69) | |||||||||||||||||||||||||||||
| Change in fair value of derivatives and other | (1,021) | (33) | (143) | (325) | — | (1,522) | |||||||||||||||||||||||||||||
| Unrealized credit loss release | — | — | — | 196 | 241 | 437 | |||||||||||||||||||||||||||||
| Other income (expense), net | 7 | (1) | 27 | — | (90) | (57) | |||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 11,630 | $ | 3,242 | $ | (1,797) | $ | 6,700 | $ | (20,929) | $ | (1,154) | |||||||||||||||||||||||
Discontinued operations (5) | |||||||||||||||||||||||||||||||||||
| Income (loss) from discontinued operations | — | — | — | — | 4,580 | 4,580 | |||||||||||||||||||||||||||||
| Income tax benefit (provision) from discontinued operations | $ | — | $ | — | $ | — | $ | — | $ | 482 | 482 | ||||||||||||||||||||||||
| Income from discontinued operations | $ | — | $ | — | $ | — | $ | — | $ | 5,062 | $ | 5,062 | |||||||||||||||||||||||
| Net income (loss) | $ | 11,630 | $ | 3,242 | $ | (1,797) | $ | 6,700 | $ | (15,867) | $ | 3,908 | |||||||||||||||||||||||
| For the Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||
| Retail Real Estate | Office Real Estate | Multifamily Real Estate | Real Estate Financing | Other (1) | Total | ||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||
| Rental revenues | 103,435 | $ | 95,007 | $ | 58,255 | $ | — | $ | — | $ | 256,697 | ||||||||||||||||||||||||
| Interest income (real estate financing segment) | — | — | — | $ | 16,077 | 1,294 | 17,371 | ||||||||||||||||||||||||||||
| Total revenues | 103,435 | 95,007 | 58,255 | 16,077 | 1,294 | 274,068 | |||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||
Rental expenses (2) | 18,221 | 25,048 | 19,141 | — | — | 62,410 | |||||||||||||||||||||||||||||
| Real estate taxes | 9,421 | 8,731 | 5,156 | — | — | 23,308 | |||||||||||||||||||||||||||||
Interest expense (real estate financing segment) (3) | — | — | — | 6,588 | — | 6,588 | |||||||||||||||||||||||||||||
| Total segment operating expenses | 27,642 | 33,779 | 24,297 | 6,588 | — | 92,306 | |||||||||||||||||||||||||||||
| Segment net operating income | 75,793 | 61,228 | 33,958 | 9,489 | 1,294 | 181,762 | |||||||||||||||||||||||||||||
| Interest income (excluding real estate financing segment) | 84 | 11 | 0 | 120 | — | (215) | — | ||||||||||||||||||||||||||||
| Depreciation and amortization | (38,224) | (35,819) | 0 | (16,314) | — | (472) | (90,829) | ||||||||||||||||||||||||||||
| General and administrative expenses | — | — | 0 | — | — | (19,287) | (19,287) | ||||||||||||||||||||||||||||
| Acquisition, development, and other pursuit costs | — | (5,528) | 0 | — | — | (2) | (5,530) | ||||||||||||||||||||||||||||
| Impairment charges | — | (1,494) | 0 | — | — | — | (1,494) | ||||||||||||||||||||||||||||
| Gain on real estate dispositions, net | 21,305 | — | 0 | — | — | — | 21,305 | ||||||||||||||||||||||||||||
Interest expense (excluding real estate financing segment) (4) | (27,931) | (26,887) | 0 | (17,559) | — | — | (72,377) | ||||||||||||||||||||||||||||
| Equity in income of unconsolidated real estate entities | 2 | 238 | 0 | 5 | — | — | 245 | ||||||||||||||||||||||||||||
| Loss on extinguishment of debt | (192) | — | 0 | (55) | — | — | (247) | ||||||||||||||||||||||||||||
| Change in fair value of derivatives and other | 5,004 | 4,056 | 0 | 1,886 | 1,991 | 1,314 | 14,251 | ||||||||||||||||||||||||||||
| Unrealized credit loss (provision) release | — | — | 0 | — | (166) | 10 | (156) | ||||||||||||||||||||||||||||
| Other income (expense), net | 73 | 139 | 0 | (64) | — | 61 | 209 | ||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 35,914 | $ | (4,056) | $ | 1,977 | $ | 11,314 | $ | (17,297) | $ | 27,852 | |||||||||||||||||||||||
Discontinued operations (5) | |||||||||||||||||||||||||||||||||||
| Income (loss) from discontinued operations | — | — | — | — | 14,028 | 14,028 | |||||||||||||||||||||||||||||
Income tax (provision) benefit from discontinued operations | — | — | — | — | 614 | 614 | |||||||||||||||||||||||||||||
| Income from discontinued operations | $ | — | $ | — | $ | — | $ | — | $ | 14,642 | $ | 14,642 | |||||||||||||||||||||||
| Net income (loss) | $ | 35,914 | $ | (4,056) | $ | 1,977 | $ | 11,314 | $ | (2,655) | $ | 42,494 | |||||||||||||||||||||||
| For the Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||
| Retail Real Estate | Office Real Estate | Multifamily Real Estate | Real Estate Financing | Other (1) | Total | ||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||
| Rental revenues | $ | 99,924 | $ | 82,855 | $ | 56,145 | $ | — | $ | — | $ | 238,924 | |||||||||||||||||||||||
| Interest income (real estate financing segment) | — | — | — | $ | 14,176 | 811 | 14,987 | ||||||||||||||||||||||||||||
| Total revenues | 99,924 | 82,855 | 56,145 | 14,176 | 811 | 253,911 | |||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||
Rental expenses (2) | 16,470 | 22,708 | 17,241 | — | — | 56,419 | |||||||||||||||||||||||||||||
| Real estate taxes | 9,102 | 8,682 | 4,658 | — | — | 22,442 | |||||||||||||||||||||||||||||
Interest expense (real estate financing segment) (3) | — | — | — | 3,667 | — | 3,667 | |||||||||||||||||||||||||||||
| Total segment operating expenses | 25,572 | 31,390 | 21,899 | 3,667 | — | 82,528 | |||||||||||||||||||||||||||||
| Segment net operating income | 74,352 | 51,465 | 34,246 | 10,509 | 811 | 171,383 | |||||||||||||||||||||||||||||
| Interest income (excluding real estate financing segment) | 4 | — | 43 | — | (47) | — | |||||||||||||||||||||||||||||
| Depreciation and amortization | (39,149) | (44,805) | (12,977) | — | (408) | (97,339) | |||||||||||||||||||||||||||||
| General and administrative expenses | — | — | — | — | (17,191) | (17,191) | |||||||||||||||||||||||||||||
| Acquisition, development, and other pursuit costs | — | — | — | — | (84) | (84) | |||||||||||||||||||||||||||||
| Impairment charges | (102) | — | — | — | — | (102) | |||||||||||||||||||||||||||||
| Gain on real estate dispositions, net | 738 | — | — | — | — | 738 | |||||||||||||||||||||||||||||
Interest expense (excluding real estate financing segment) (4) | (21,561) | (18,810) | (13,772) | — | — | (54,143) | |||||||||||||||||||||||||||||
| Change in fair value of derivatives and other | (1,826) | (1,481) | (340) | (561) | (2,034) | (6,242) | |||||||||||||||||||||||||||||
| Unrealized credit loss provision | — | — | — | (573) | (1) | (574) | |||||||||||||||||||||||||||||
| Other income (expense), net | (123) | (51) | 76 | — | 129 | 31 | |||||||||||||||||||||||||||||
| Net income (loss) from continuing operations | $ | 12,333 | $ | (13,682) | $ | 7,276 | $ | 9,375 | $ | (18,825) | $ | (3,523) | |||||||||||||||||||||||
Discontinued operations (5) | |||||||||||||||||||||||||||||||||||
| Income (loss) from discontinued operations | — | — | — | — | 12,515 | 12,515 | |||||||||||||||||||||||||||||
Income tax (provision) benefit from discontinued operations | — | — | — | — | (1,329) | (1,329) | |||||||||||||||||||||||||||||
| Income from discontinued operations | $ | — | $ | — | $ | — | $ | — | $ | 11,186 | $ | 11,186 | |||||||||||||||||||||||
| Net income (loss) | $ | 12,333 | $ | (13,682) | $ | 7,276 | $ | 9,375 | $ | (7,639) | $ | 7,663 | |||||||||||||||||||||||
________________________________________
(1) Other consists of items not directly related to the Company’s real estate operations or real estate financing activities. General and administrative expenses include corporate personnel salaries and benefits, bank charges, accounting and legal fees, and other corporate office costs.
(2) Rental expenses represent costs directly associated with the operation and management of the Company’s real estate properties. Rental expenses include asset management fees, property management fees, repairs and maintenance, insurance, and utilities.
(3) Interest expense within the real estate financing segment is allocated based on the average outstanding principal of notes receivable in the real estate financing portfolio, and the effective interest rate on the credit facility, the M&T term loan facility, and the TD term loan facility, each as defined in Note 9.
(4) Interest expense (excluding real estate financing segment) is allocated by first allocating secured debt to the relevant properties. Unsecured debt is then allocated using the total value of unencumbered income producing property, and allocating to the retail, office, and multifamily segments based on property classification.
(5) As of December 31, 2025, the segment previously reported as general contracting and real estate services is now presented as discontinued operations. Income from discontinued operations excludes revenues for the years ended December 31, 2025, December 31, 2024, and December 31, 2023 related to intercompany construction contracts of $13.4 million, $18.1 million, and $53.1 million, respectively, which are eliminated in consolidation. Income from discontinued operations excludes expenses for the years ended December 31, 2025, December 31, 2024, and December 31, 2023 related to intercompany construction contracts of $13.2 million, $17.9 million, and $52.5 million, respectively, which are eliminated in consolidation.
The following table summarizes key balance sheet data by segment (in thousands):
| Retail real estate | Office real estate | Multifamily real estate | Real estate financing | Other | Total | ||||||||||||||||||||||||||||||
| December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Real estate investments, at cost | $ | 873,857 | $ | 877,455 | $ | 795,949 | $ | — | $ | — | $ | 2,547,261 | |||||||||||||||||||||||
| Notes receivable, net | — | — | — | 128,674 | — | 128,674 | |||||||||||||||||||||||||||||
| Equity method investments | 1,687 | 46,239 | — | — | — | 47,926 | |||||||||||||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||||||||
Real estate investments, at cost | $ | 836,740 | $ | 810,862 | $ | 547,566 | $ | — | $ | — | $ | 2,195,168 | |||||||||||||||||||||||
Notes receivable, net | — | — | — | 121,433 | 11,132 | 132,565 | |||||||||||||||||||||||||||||
| Equity method investments | 7,630 | 62,288 | 88,233 | — | — | 158,151 | |||||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Mar 2, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.