Operating Segments
Segment information is prepared on the same basis that our chief operating decision maker ("CODM") reviews information to assess performance and make resource allocation decisions. Our CODM is our President and Chief Executive Officer. We operate in two reportable segments: (i) the acquisition, development, ownership and management of multifamily properties ("Residential Segment") and (ii) the acquisition, ownership and management of commercial real estate properties ("Commercial Segment"). The services for our segments include rental of property and other tenant services, including parking and storage space rental. The key operating metric that the CODM utilizes to evaluate the segments is net operating income ("NOI"), which we defined as property revenue less direct property operating expenses. NOI excludes depreciation, interest income and expenses, general and administrative expenses, advisory fees and income taxes.
The following table presents our profit by reportable segment:
| | | | | | | | | | | | | | | | | |
| | For the Years Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Residential Segment | | | | | |
| Revenues | $ | 34,128 | | | $ | 34,103 | | | $ | 34,962 | |
| Segment expenses | | | | | |
| Property tax and insurance | (11,003) | | | (10,679) | | | (9,776) | |
| Repairs and maintenance | (3,885) | | | (3,970) | | | (4,317) | |
| Other property expenses | (4,416) | | | (3,603) | | | (3,656) | |
| NOI from residential segment | 14,824 | | | 15,851 | | | 17,213 | |
| Commercial Segment | | | | | |
| Revenues | 14,932 | | | 12,967 | | | 14,943 | |
| Segment expenses | | | | | |
| Property tax and insurance | (2,740) | | | (3,204) | | | (4,266) | |
| Repairs and maintenance | (1,323) | | | (1,293) | | | (1,228) | |
| Other property expenses | (4,518) | | | (4,314) | | | (4,653) | |
| NOI from commercial segment | 6,351 | | | 4,156 | | | 4,796 | |
| Total NOI from segments | $ | 21,175 | | | $ | 20,007 | | | $ | 22,009 | |
The following table reconciles NOI from reportable segments to net income (loss):
| | | | | | | | | | | | | | | | | |
| | For the Years Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| NOI from reportable segments | $ | 21,175 | | | $ | 20,007 | | | $ | 22,009 | |
| Other non-segment items of income (expense) | | | | | |
| Depreciation and amortization | (12,577) | | | (12,276) | | | (13,646) | |
| General and administrative | (6,459) | | | (6,395) | | | (10,011) | |
| Advisory fee to related party | (9,522) | | | (8,225) | | | (10,187) | |
| Other income | 954 | | | 248 | | | 595 | |
| Interest income | 14,637 | | | 19,973 | | | 26,847 | |
| Interest expense | (6,825) | | | (7,838) | | | (9,502) | |
| Gain on foreign currency transactions | — | | | — | | | 993 | |
| Loss on early extinguishment of debt | (284) | | | — | | | (1,710) | |
| Equity in income from unconsolidated joint ventures | 119 | | | 1,449 | | | 3,242 | |
| Gain (loss) on real estate transactions | 19,988 | | | (23,989) | | | (1,923) | |
| Income tax provision | (2,667) | | | 3,607 | | | (1,456) | |
| Net income (loss) | $ | 18,539 | | | $ | (13,439) | | | $ | 5,251 | |
The table below reconciles the segment information to the corresponding amounts in the consolidated balance sheets:
| | | | | | | | | | | |
| | December 31, |
| | 2025 | | 2024 |
| Segment assets | $ | 571,503 | | | $ | 523,792 | |
| Real estate | 57,463 | | | 59,197 | |
| Investments in unconsolidated joint ventures | 1,270 | | | 10,246 | |
| Notes receivable | 142,439 | | | 138,349 | |
| Receivable from related parties | 103,558 | | | 97,544 | |
| Cash, short-term investments and other non-segment assets | 221,092 | | | 203,674 | |
| Total assets | $ | 1,097,325 | | | $ | 1,032,802 | |
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.