SEGMENT DISCLOSURE (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Segment Net Operating Income (Loss)

The net operating income (loss) of the Company’s segments for the three and nine months ended September 30, 2022 and 2021 is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Office:
Revenues	$	14,043	$	12,998	$	42,225	$	39,881
Property expenses:
Operating	7,249		5,362		19,772		16,704
General and administrative	71		123		196		291
Total property expenses	7,320		5,485		19,968		16,995
(Loss) income from unconsolidated entity	(204)		—		176
Segment net operating income—office	6,519		7,513		22,433		22,886
Hotel:
Revenues	8,456		5,478		25,825		10,833
Property expenses:
Operating	6,052		4,596		17,728		10,659
General and administrative	27		5		79		106
Total property expenses	6,079		4,601		17,807		10,765
Segment net operating income—hotel	2,377		877		8,018		68
Lending:
Revenues	2,353		5,773		7,987		15,086
Lending expenses:
Interest expense	134		105		360		478
Expense reimbursements to related parties—lending segment	539		55		1,612		1,219
General and administrative	489		744		1,387		1,367
Total lending expenses	1,162		904		3,359		3,064
Segment net operating income—lending	1,191		4,869		4,628		12,022
Total segment net operating income	$	10,087	$	13,259	$	35,079	$	34,976

Schedule of Reconciliation of Segment Net Operating Income to Net Income Attributable to the Company

A reconciliation of segment net operating income to net income attributable to the Company for the three and nine months ended September 30, 2022 and 2021 is as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Total segment net operating income	$	10,087	$	13,259	$	35,079	$	34,976
Interest and other income	1		—		1		1
Asset management and other fees to related parties	(916)		(2,262)		(2,757)		(6,781)
Expense reimbursements to related parties—corporate	(511)		(533)		(1,459)		(1,592)
Interest expense	(2,059)		(2,080)		(6,406)		(7,012)
General and administrative	(1,353)		(753)		(3,370)		(3,629)
Transaction costs	(201)		—		(201)		—
Depreciation and amortization	(5,093)		(5,061)		(15,071)		(15,167)



(Loss) income before provision for income taxes	(45)		2,570		5,816		796
Provision for income taxes	(187)		(946)		(815)		(2,316)
Net (loss) income	(232)		1,624		5,001		(1,520)
Net (income) loss attributable to noncontrolling interests	(5)		—		(19)		4
Net (loss) income attributable to the Company	$	(237)	$	1,624	$	4,982	$	(1,516)

Schedule of Segment Condensed Assets

The condensed assets for each of the segments as of September 30, 2022 and December 31, 2021, along with capital expenditures and loan originations for the nine months ended September 30, 2022 and 2021, are as follows (in thousands):


	September 30, 2022		December 31, 2021
Condensed assets:
Office	$	472,706	$	449,843
Hotel	99,432		101,308
Lending	81,603		96,729
Non-segment assets(1)	11,856		12,986
Total assets	$	665,597	$	660,866

Schedule of Segment Capital Expenditures and Loan Originations


	Nine Months Ended September 30,
	2022		2021
Capital expenditures(2) and loan originations:
Office	$	7,008	$	2,488
Hotel	197		144
Total capital expenditures	7,205		2,632
Loan originations	35,956		119,479
Total capital expenditures and loan originations	$	43,161	$	122,111

______________________

(1)Includes investments in real estate of $9.4 million representing three development sites which the Company intends to develop into multifamily assets.

(2)Represents additions and improvements to real estate investments, excluding acquisitions. Includes the activity for dispositions through their respective disposition dates.