v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 12 – Segment Reporting

 

We identify our operating segments based on the way we organize and evaluate our business, which consists of:

 

●Commercial Segment — which includes properties such as office, retail centers, and warehouses (the “Commercial Segment”). For reporting purposes, we aggregate these asset types into the Commercial Segment given their similar characteristics in property management and leasing.
   
●Mixed-use Segment — which includes properties that have both residential and retail spaces within a single real estate asset (the “Mixed-use Segment”).

 

Our CODM reviews financial information presented on an operating segment basis for purposes of allocating resources, making decisions and assessing financial performance.

 

We believe that analyzing net operating income (loss) by segment (“Segment NOI”) provides a useful measure of our performance of our business, as it reflects the core rental operations of our operating real estate. Segment NOI is calculated as total revenues, less property expenses, excluding corporate level items, such as management fees incurred to our Manager (see Note 4 – Related Party Arrangements), depreciation and amortization, general and administrative expenses, interest expense, and other non-operating items.

 

The following table details the unaudited results of Segment NOI, reconciled to Net loss as reported on our consolidated statements of operations for the three months ended March 31, 2026 and 2025 (amounts in thousands):

 

   Commercial Segment   Mixed-use Segment      Commercial Segment   Mixed-use Segment    
   Three Months Ended March 31, 
   2026   2025 
   Commercial Segment   Mixed-use Segment   Total   Commercial Segment   Mixed-use Segment   Total 
Segment NOI:                              
Rental revenue  $225   $4,010   $4,235   $298   $1,441   $1,739 
Property expenses   (489)   (3,664)   (4,153)   (357)   (1,522)   (1,879)
Total Segment NOI  $(264)  $346   $82   $(59)  $(81)  $(140)
Non-segment items:                              
Management fees, included in Property expenses             (849)             (825)
General and administrative             (1,795)             (1,616)
Interest expense             (5,285)             (4,358)
Depreciation and amortization             (3,077)             (1,917)
Interest income             210              248 
Other income (expense)             41              (15)
Net loss            $(10,673)            $(8,623)

 

The following table details the unaudited significant expense categories by segment for the three months ended March 31, 2026 and 2025 (amounts in thousands):

 

                   
   Three Months Ended March 31, 
   2026   2025 
   Commercial Segment   Mixed-use Segment   Total   Commercial Segment   Mixed-use Segment   Total 
Property expenses:                              
Real estate taxes  $362   $1,207   $1,569   $170   $145   $315 
Management fees (1)   13    655    668    10    290    300 
Insurance   71    491    562    72    343    415 
Repairs & maintenance   35    507    542    99    295    394 
Utilities   8    366    374    6    195    201 
Other property expenses   —    438    438    —    254    254 
Total property expenses (1)  $489   $3,664   $4,153   $357   $1,522   $1,879 

 

 

(1)Excludes management fees incurred to our Manager (see Note 4 – Related Party Arrangements).

 

The following table details our total assets by segment as of March 31, 2026, and December 31, 2025 (amounts in thousands):

 

   March 31, 2026   December 31, 2025 
   (unaudited)     
Commercial Segment  $95,108   $97,038 
Mixed-use Segment   443,021    443,301 
Other non-segment assets (1)   27,613    23,857 
Total assets  $565,742   $564,196 

 

 

(1)Other non-segment assets primarily consist of cash and cash equivalents not attributable to specific reportable segments.