Operating Segments

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Operating Segments

5. Operating Segments

Our segments are based on the internal reporting that we review for operational decision-making purposes. We operate in two reportable segments: (i) the acquisition, development, ownership and management of multifamily apartment communities and (ii) the acquisition, ownership and management of commercial real estate properties. The services for our multifamily segment include rental of apartments and other tenant services, including parking and storage space rental. Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources. Therefore, depreciation and amortization expense is not allocated among segments. General and administrative expenses, advisory fees, interest income and interest expense are not included in segment profit as our internal reporting addresses these items on a corporate level.

The following table presents our reportable segments for the three and nine months ended September 30, 2020 and 2019:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2020			2019			2020			2019
Multifamily Segment
Revenues	$	3,683		$	3,383		$	10,943		$	10,077
Operating expenses		(2,412	)		(2,243	)		(6,466	)		(6,363	)
Profit from segment		1,271			1,140			4,477			3,714
Commercial Segment
Revenues		7,770			8,024			23,518			24,275
Operating expenses		(3,976	)		(3,160	)		(12,041	)		(12,359	)
Profit from segment		3,794			4,864			11,477			11,916
Total profit from segments	$	5,065		$	6,004		$	15,954		$	15,630

The table below reflects the reconciliation of total profit from segments to net income (loss) for the three and nine months ended September 30, 2020 and 2019:

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2020			2019			2020			2019
Total profit from segments	$	5,065		$	6,004		$	15,954		$	15,630
Other non-segment items of income (expense)
Depreciation		(3,526	)		(3,416	)		(10,338	)		(9,964	)
General and administrative		(1,643	)		(1,930	)		(7,063	)		(6,468	)
Advisory fee to related party		(2,139	)		(2,199	)		(6,483	)		(6,196	)
Interest income		4,348			5,232			13,102			14,668
Other income		706			1,990			3,885			7,394
Interest expense		(6,291	)		(8,037	)		(21,999	)		(23,642	)
(Loss) gain on foreign currency transaction		(1,470	)		(5,153	)		774			(13,296	)
Loss on extinguishment of debt		—			(5,219	)		—			(5,219	)
Income (losses) from unconsolidated joint ventures		365			(178	)		(740	)		(1,474	)
Gain on sales or write-down of assets		12,328			5,140			21,802			9,409
Income tax expense		(50	)		—			(346	)		—
Net income (loss)	$	7,693		$	(7,766	)	$	8,548		$	(19,158	)