NOTE 16: SEGMENT INFORMATION

We operate in a single reportable segment which includes the ownership, development, redevelopment and acquisition of apartment communities. Within the Residential segment, we do not distinguish or group our consolidated operations based on size (only one community, Riverside Apartments, comprises more than 10% of consolidated revenues), type (all assets in the segment are residential) or geography (as of October 31, 2025, all but six communities were within the Washington, DC metro region). Further, our apartment communities have similar long-term economic characteristics and provide similar products and services to our residents.

We have one office property, Watergate 600, which does not meet the quantitative or qualitative criteria for a reportable segment and has been classified within “Other”, along with business activities that are not part of an operating segment, on our segment disclosure tables.

Our CODM, the Chief Executive Officer, reviews financial information presented on a consolidated basis for purposes of assessing the performance and allocating resources to the operating segment. The CODM uses net operating income (“NOI”), defined as real estate rental revenue less real estate expenses (the significant segment expense), as the key basis of measurement for the reported segment profit or loss.

Real estate rental revenue as a percentage of the total for the Residential reportable segment and Other for the ten months ended October 31, 2025 and for the years ended December 31, 2024 and 2023, respectively, was as follows:
 Ten Months Ended October 31,Year Ended December 31,
 202520242023
Residential
93 %92 %92 %
Other%%%

The percentage of income producing real estate assets classified as held and used, at cost, for the Residential reportable segment and Other as of December 31, 2024 was as follows:
 
 2024
Residential
96 %
Other%

The following tables present revenues, net operating income, capital expenditures and total assets for the ten months ended October 31, 2025 and years ended December 31, 2024 and 2023 from the Residential reportable segment and Other, and reconciles the consolidated net operating income to net loss as reported (in thousands):
 Ten Months Ended October 31, 2025
 Residential
Other
Consolidated
Real estate rental revenue$191,525 $14,835 $206,360 
Real estate expenses71,912 4,690 76,602 
Net operating income$119,613 $10,145 $129,758 
Property management expenses(7,494)
General and administrative expenses(54,591)
Depreciation and amortization(78,162)
Interest expense(31,954)
Real estate impairment(111,719)
Net loss$(154,162)
Capital expenditures $26,904 $82 $26,986 
 Twelve Months Ended December 31, 2024
 Residential
Other
Consolidated
Real estate rental revenue$223,638 18,297 $241,935 
Real estate expenses83,066 5,635 88,701 
Net operating income$140,572 $12,662 $153,234 
Property management expenses(8,861)
General and administrative expenses(24,969)
Depreciation and amortization(95,935)
Interest expense(37,835)
Loss on extinguishment of debt(147)
Other income1,410 
Net loss$(13,103)
Capital expenditures$47,054 $548 $47,602 
Total assets$1,719,087 $126,675 $1,845,762 

 Twelve Months Ended December 31, 2023
 Residential
Other
Consolidated
Real estate rental revenue$209,311$18,600 $227,911 
Real estate expenses74,5355,295 79,830 
Net operating income$134,776 $13,305 $148,081 
Property management expenses(8,108)
General and administrative expenses(25,887)
Transformation costs(6,339)
Depreciation and amortization(88,950)
Real estate impairment(41,860)
Interest expense(30,429)
Loss on extinguishment of debt(54)
Other income569 
Net loss
$(52,977)
Capital expenditures$37,782$844 $38,626 
Total assets$1,768,426$131,602 $1,900,028 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 14, 2025
2023Feb 16, 2024
2022Feb 17, 2023
2021Feb 18, 2022
2020Feb 16, 2021
2019Feb 19, 2020
2018Feb 19, 2019
2017Feb 20, 2018
2016Feb 21, 2017
2015Feb 26, 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.