SEGMENT REPORTING
Substantially all of the Company's assets are comprised of multi-family real estate assets generally leased to tenants on a one year basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment. Prior to October 1, 2017, the Company operated in two reportable segments: a multi-family real estate segment which includes the ownership, operation and development of its multi-family properties; and another real estate segment, which includes the ownership and operation and development of its other real estate assets.
The following table summarizes the Company's segment reporting for the year ended September 30, 2017 (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | Multi-Family Real Estate | | Other Real Estate | | Total |
| Revenues: | | | | | | |
| Rental and other revenues from real estate properties | | $ | 102,938 | | $ | 1,539 | | $ | 104,477 |
| Other income | | (9) | | 1,303 | | 1,294 |
| Total revenues | | 102,929 | | 2,842 | | 105,771 |
| Expenses: | | | | | | |
| Real estate operating expenses | | 50,733 | | 546 | | 51,279 |
| Interest expense | | 26,782 | | 1,389 | | 28,171 |
| General and administrative | | 9,208 | | 188 | | 9,396 |
| Depreciation | | 30,381 | | 110 | | 30,491 |
| Total expenses | | 117,104 | | 2,233 | | $ | 119,337 |
| Total revenue less total expenses | | (14,175) | | 609 | | (13,566) |
| Equity in (loss) earnings of unconsolidated joint ventures | | (417) | | 33 | | (384) |
| Gain on sale of real estate | | 52,152 | | 449 | | 52,601 |
| Loss on extinguishment of debt | | (1,463) | | — | | (1,463) |
| Income from continuing operations | | 36,097 | | 1,091 | | 37,188 |
| Provision for taxes | | 1,529 | | 31 | | 1,560 |
| Net income | | 34,568 | | 1,060 | | 35,628 |
| Net (income) attributable to non-controlling interests | | (21,896) | | (132) | | (22,028) |
| Net income attributable to common stockholders | | $ | 12,672 | | $ | 928 | | $ | 13,600 |
| Segment Assets at September 30, 2017 | | $ | 976,806 | | $ | 17,091 | | $ | 993,897 |
NOTE 14—SEGMENT REPORTING (Continued)
The following table summarizes the Company's segment reporting for the year ended September 30, 2016 (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | Multi-Family Real Estate | | Other Real Estate | | Total |
| Revenues: | | | | | | |
| Rental and other revenues from real estate properties | | $ | 93,795 | | $ | 1,407 | | $ | 95,202 |
| Other income | | — | | 3,319 | | $ | 3,319 |
| Total revenues | | 93,795 | | 4,726 | | 98,521 |
| Expenses: | | | | | | |
| Real estate operating expenses | | 46,936 | | 583 | | 47,519 |
| Interest expense | | 23,739 | | 139 | | 23,878 |
| Advisor's fee, related party | | 593 | | 100 | | 693 |
| Property acquisition costs | | 3,852 | | — | | 3,852 |
| General and administrative | | 8,313 | | 223 | | 8,536 |
| Depreciation | | 22,251 | | 929 | | 23,180 |
| Total expenses | | 105,684 | | 1,974 | | 107,658 |
| Total revenues less total expenses | | (11,889) | | 2,752 | | (9,137) |
| Gain on sale of real estate | | 45,206 | | 1,271 | | 46,477 |
| Gain on sale of partnership interest | | 386 | | — | | 386 |
| Loss on extinguishment of debt | | (4,547) | | — | | (4,547) |
| Income from continuing operations | | 29,156 | | 4,023 | | 33,179 |
| Provision for taxes | | 686 | | 14 | | 700 |
| Income from continuing operations, net of taxes | | 28,470 | | 4,009 | | 32,479 |
| Net (income) attributable to non-controlling interests | | (15,420) | | (108) | | (15,528) |
| Net income attributable to common stockholders before reconciling items | | $ | 13,050 | | $ | 3,901 | | $ | 16,951 |
| Reconciling adjustment: | | | | | | |
| Discontinued operations, net of non-controlling interests | | | | | | 14,338 |
| Net income attributable to common stockholders | | | | | | $ | 31,289 |
| Segment assets at September 30, 2016 | | $ | 843,898 | | $ | 31,001 | | $ | 874,899 |
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.