Segments (Tables)

3 Months Ended

Mar. 31, 2021

Net operating income of reportable segments

Net operating income of the Company’s reportable segments for the three months ended March 31, 2021 and 2020 was as follows (in thousands):


	Three Months Ended March 31,
	2021		2020
Office real estate
Rental revenues	$	11,635	$	10,192
Rental expenses	2,875		2,546
Real estate taxes	1,358		1,146
Segment net operating income	7,402		6,500
Retail real estate
Rental revenues	18,255		20,411
Rental expenses	2,836		3,020
Real estate taxes	2,027		2,166
Segment net operating income	13,392		15,225
Multifamily residential real estate
Rental revenues	15,851		11,686
Rental expenses	5,121		3,809
Real estate taxes	1,921		1,021
Segment net operating income	8,809		6,856
General contracting and real estate services
Segment revenues	35,563		47,268
Segment expenses	34,275		45,550
Segment gross profit	1,288		1,718
Net operating income	$	30,891	$	30,299

Reconciliation of net operating income to net income

The following table reconciles net operating income to net income, the most directly comparable GAAP measure, for the three months ended March 31, 2021 and 2020 (in thousands):


	Three Months Ended March 31,
	2021		2020
Net operating income	$	30,891	$	30,299
Depreciation and amortization	(18,066)		(14,279)
Amortization of right-of-use assets - finance leases	(189)		(147)
General and administrative expenses	(4,021)		(3,793)
Acquisition, development and other pursuit costs	(71)		(27)
Impairment charges	(3,039)		(158)
Gain on real estate dispositions	3,717		—
Interest income	4,116		7,226
Interest expense on indebtedness	(7,613)		(7,959)
Interest expense on finance leases	(362)		(229)

Change in fair value of derivatives and other	393		(1,736)
Unrealized credit loss release (provision)	55		(377)
Other income (expense), net	179		58
Income tax benefit	19		257
Net income	$	6,009	$	9,135