1 unchanged sentence
The following discussion and analysis should be read in conjunction with our consolidated financial statements, the related notes thereto, and Management’s Discussion and Analysis included in our 2024 Annual Report on Form 10-K, as well as our condensed consolidated financial statements and the related notes thereto included elsewhere in this document.
−Removed: Unless otherwise indicated, references to “2025” refer to the three months ended March 31, 2025 and references to “2024” refer to the three months ended March 31, 2024.
+Added: Unless otherwise indicated, references to “2025” refer to the three and six months ended June 30, 2025 and references to “2024” refer to the three and six months ended June 30, 2024.
The following discussion may contain forward-looking statements that reflect our plans and expectations.
23 unchanged sentences
Over the twelve months of fiscal year 2024, Anchor Portfolio assets generated well over $100.0 million of gross revenue for the property owners.
−Removed: The following table summarizes the operating assets that were included in our managed portfolio as of March 31, 2025:
+Added: The following table summarizes the operating assets that were included in our managed portfolio as of June 30, 2025:
Type # of Assets Size/Scale % Leased
9 unchanged sentences
# of assets total excludes 24 properties where both parking & other services are provided to avoid double-counting.
−Removed: In addition, we manage the following assets that are under construction and scheduled for delivery in the next 12 to 24 months:
+Added: In addition, we manage the following assets that are under construction and scheduled for delivery in the next 12 months:
• 2 commercial assets that represent approximately 266,000 square feet;
46 unchanged sentences
The following tables set forth consolidated statement of operations data for the periods presented (in thousands):
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 2025 2024
Revenue $ 12,972 $ 10,753 $ 25,611 $ 21,391
12 unchanged sentences
Net income (loss) $ 1,446 $ 946 $ 3,035 $ 1,856
−Removed: Comparison of the Three Months Ended March 31, 2025 and 2024
+Added: Comparison of the Three Months Ended June 30, 2025 and 2024
The following table summarizes revenue by line of business (in thousands):
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
2025 2024 Change
6 unchanged sentences
The $2.2 million comparative increase was primarily driven by a $1.0 million, or 42.4%, increase in recurring, fee-based revenue from our property and parking management subsidiaries that was driven by the continued expansion of our managed portfolio.
−Removed: Also contributing to the increase was $0.6 million of additional supplemental leasing fees.
+Added: Also contributing to the variance was a $0.8 million net increase in supplemental fee revenue earned, stemming from a $1.0 million loan origination fee earned in the current period that was partially offset by a $0.2 million comparative decrease in leasing fee revenue.
Operating costs and expenses
The following table summarizes operating costs and expenses (in thousands):
−Removed: Three Months Ended March 31, Change
+Added: Three Months Ended June 30, Change
2025 2024 $ %
4 unchanged sentences
Operating costs and expenses increased 17.5% in 2025.
+Added: The $1.7 million comparative increase was primarily due to a $1.5 million net increase in personnel-related expenses stemming from increased headcount and employee compensation.
+Added: Other income (expense)
+Added: The following table summarizes other income (expense) (in thousands):
+Added: Three Months Ended June 30, Change
+Added: 2025 2024 $ %
+Added: Interest income $ 220 $ 166 $ 54 32.5 %
+Added: Gain (loss) on real estate ventures 9 (101) 110 108.9 %
+Added: Other income (expense), net 73 11 62 563.6 %
+Added: Total other income (expense) $ 302 $ 76 $ 226 297.4 %
+Added: Other income (expense) changed by $0.2 million in 2025, primarily driven by a combined $0.1 million net improvement in mark-to-market valuation impacts of equity method investments in real estate ventures.
+Added: Provision for income tax was $0.6 million in 2025, compared to $0.4 million in 2024.
+Added: The $0.2 million increase primarily stems from a slightly higher annualized estimated tax rate in the current period as well as higher taxable income.
+Added: Comparison of the Six Months Ended June 30, 2025 and 2024
+Added: The following table summarizes revenue by line of business (in thousands):
+Added: Six Months Ended June 30,
+Added: 2025 2024 Change
+Added: Amount % Amount % $ %
+Added: Asset management $ 13,996 54.6 % $ 12,246 57.2 % $ 1,750 14.3 %
+Added: Property management 5,861 22.9 % 5,448 25.5 % 413 7.6 %
+Added: Parking management 5,754 22.5 % 3,697 17.3 % 2,057 55.6 %
+Added: Total revenue $ 25,611 100.0 % $ 21,391 100.0 % $ 4,220 19.7 %
+Added: Revenue increased 19.7% in 2025.
+Added: The $4.2 million comparative increase was primarily driven by a $1.8 million, or 41.6%, increase in recurring, fee-based revenue from our property and parking management subsidiaries that was driven by the continued expansion of our managed portfolio.
+Added: Also contributing to the variance was a $1.4 million increase in supplemental fee revenue earned, stemming from a $1.0 million loan origination fee earned in the current period and a $0.4 million comparative increase in leasing fee revenue.
+Added: Operating costs and expenses
+Added: The following table summarizes operating costs and expenses (in thousands):
+Added: Six Months Ended June 30, Change
+Added: 2025 2024 $ %
+Added: Cost of revenue $ 20,789 $ 17,792 $ 2,997 16.8 %
+Added: Selling, general, and administrative 1,144 1,081 63 5.8 %
+Added: Depreciation and amortization 158 141 17 12.1 %
+Added: Total operating costs and expenses $ 22,091 $ 19,014 $ 3,077 16.2 %
+Added: Operating costs and expenses increased 16.2% in 2025.
The $3.1 million increase was primarily due to a $2.7 million net increase in personnel expenses stemming from increased headcount and employee compensation.
1 unchanged sentence
The following table summarizes other income (expense) (in thousands):
−Removed: Three Months Ended March 31, Change
+Added: Six Months Ended June 30, Change
2025 2024 $ %
3 unchanged sentences
Total other income (expense) $ 477 $ 46 $ 431 937.0 %
−Removed: Other income (expense) changed by $0.2 million in 2025, primarily due to a combined net $0.2 million improvement in the valuations of our equity method investments in real estate ventures.
+Added: Other income (expense) changed by $0.4 million in 2025, primarily due to a combined $0.3 million net improvement in the valuations of our equity method investments in real estate ventures.
Provision for income tax was $1.0 million in 2025, compared to $0.6 million in 2024.
−Removed: The $0.1 million increase primarily stems from an increase in taxable income and a slightly higher annualized effective tax rate, partially offset by a larger tax benefit from stock compensation shortfall/windfall adjustments.
+Added: The $0.4 million increase primarily stems from a slightly higher annualized estimated tax rate in the current period as well as higher taxable income.
Non-GAAP Financial Measures
8 unchanged sentences
The following table presents a reconciliation of net income (loss), the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted EBITDA (in thousands):
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2025 2024 2025 2024
Net income (loss) $ 1,446 $ 946 $ 3,035 $ 1,856
5 unchanged sentences
Adjusted EBITDA $ 2,222 $ 1,601 $ 4,272 $ 3,087
−Removed: The increase in Adjusted EBITDA for the three months ended March 31, 2025 is primarily driven by significant increases in recurring fee-based property and parking management revenue and supplemental asset management fee revenue.
+Added: The increase in Adjusted EBITDA for the three and six months ended June 30, 2025 is primarily driven by significant increases in recurring fee-based property and parking management revenue and supplemental asset management fee revenue.
Liquidity and Capital Resources
1 unchanged sentence
We assess our liquidity in terms of our cash and cash equivalents on hand and the ability to generate cash to fund our operating activities.
−Removed: Our principal sources of liquidity as of March 31, 2025 were our cash and cash equivalents of $28.3 million and our $10.0 million of available borrowings on our Credit Facility.
+Added: Our principal sources of liquidity as of June 30, 2025 were our cash and cash equivalents of $30.5 million and our $10.0 million of available borrowings on our Credit Facility.
(See Note 5 in the Notes to Consolidated Financial Statements for additional information).
5 unchanged sentences
The following table summarizes our cash flows for the periods indicated (in thousands):
−Removed: Three Months Ended March 31,
+Added: Six Months Ended June 30,
2025 2024 Change
7 unchanged sentences
Investing Activities
−Removed: The $0.6 million variance in net investing cash activity was primarily driven by a $0.6 million decrease in distributions received from investments in real estate ventures.
+Added: The $0.6 million variance in net investing cash activity was primarily driven by a $0.6 million decrease in distributions received from investments in real estate ventures stemming from Investors X residential lot sales recognized in the prior period.
Financing Activities
−Removed: The $0.1 million increase in n et cash used in financing activities was primarily driven by a $0.1 million increase in cash paid for taxes related to the net share settlement of equity awards.
+Added: The immaterial variance in n et financing cash activity was due to a $0.1 million increase in cash paid for taxes related to the net share settlement of equity awards, partially offset by a $0.1 million increase equity award-related proceeds collected.
Quantitative and Qualitative Disclosures About Market Risk
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.