implied by such forward looking statements. These forward-looking statements are based upon the Company’s present expectations, but these statements are not guaranteed to occur. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the prospectus dated June 21, 2021 and its accompanying prospectus supplement dated November 17, 2021, and in the Company’s subsequent annual and periodic reports and other documents filed with the SEC, copies of which are available on the SEC’s website, www.sec.gov.
Non-GAAP Financial Measures
The foregoing supplemental financial data includes certain non-GAAP financial measures that we believe are helpful in understanding our business and performance, as further described below. Our definition and calculation of these non-GAAP financial measures may differ from those of other REITs, and may, therefore, not be comparable.
NOI
While we believe net income (loss), as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), is the most appropriate measure, we consider NOI, given its wide use by and relevance to investors and analysts, an appropriate supplemental performance measure. NOI provides a measure of rental operations, and does not include depreciation and amortization, interest expense and non-property specific expenses such as corporate-wide interest expense and general and administrative expenses. As used herein, we calculate NOI as follows:
NOI from property operations is calculated as net loss, as defined by U.S. GAAP, plus preferred dividends, legal, accounting and other professional fees, corporate general and administrative expenses, depreciation, amortization of intangible assets and liabilities, net amortization of above and below market leases, interest expense, including amortization of financing costs, share based compensation expense, loss on impairment, impairment of assets held for sale, loss (gain) on disposition of investment properties, loss on extinguishment of debt, other income and other expenses. The components of NOI consist of recurring rental and reimbursement revenue, less real estate taxes and operating expenses, such as insurance, utilities, and repairs and maintenance.
The following tables reflect net loss attributable to common shareholders with a reconciliation to NOI, as computed in accordance with GAAP for the periods presented:
| | | | | | | | | | | | |
| | Three Months Ended | | Nine Months Ended |
| | September 30, | | September 30, |
| | 2022 | | 2021 | | 2022 | | 2021 |
| | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) |
Net Operating Income | | | | | | | | | | | | |
Net Loss | | $ | (1,744,134) | | $ | (875,466) | | $ | (3,732,456) | | $ | (3,824,032) |
Plus: Preferred dividends, including amortization of capitalized issuance costs | | | 156,311 | | | 151,637 | | | 465,338 | | | 451,616 |
Plus: Legal, accounting and other professional fees | | | 284,463 | | | 311,986 | | | 1,112,878 | | | 1,099,881 |
Plus: Corporate general and administrative expenses | | | 99,323 | | | 382,302 | | | 335,538 | | | 568,479 |
Plus: Depreciation expense | | | 907,221 | | | 661,669 | | | 2,471,365 | | | 1,665,203 |
Plus: Amortization of intangible assets | | | 324,292 | | | 275,935 | | | 1,037,800 | | | 696,011 |
Less: Net amortization of above and below market leases | | | (81,817) | | | (5,968) | | | (146,068) | | | (2,350) |
Plus: Interest expense, including amortization of capitalized loan issuance costs | | | 832,944 | | | 799,133 | | | 2,239,497 | | | 4,157,582 |
Plus: Share based compensation expense | | | - | | | - | | | 233,100 | | | 149,981 |
Plus: Loss on impairment | | | - | | | - | | | 36,670 | | | - |
Plus: Impairment of assets held for sale | | | - | | | - | | | 175,671 | | | - |
Plus: Loss on extinguishment of debt | | | 219,532 | | | - | | | 389,207 | | | - |
Less: Other income | | | (126,434) | | | (3,728) | | | (251,197) | | | (187,773) |
Plus: Other expense | | | 227,164 | | | 209 | | | 227,164 | | | 495 |
Less: Realized loss (gain) on disposal of investment properties | | | 389,471 | | | (124,641) | | | 389,471 | | | (124,641) |
Net Operating Income - NOI | | $ | 1,488,336 | | $ | 1,573,068 | | $ | 4,983,978 | | $ | 4,650,452 |
Same Property NOI
Same property NOI is calculated as the NOI of all properties owned during the entire periods presented with the exclusion of any properties acquired or sold during the periods presented. The following table reconciles same property retail and flex NOI, NOI of newly acquired retail and flex properties, same hotel property NOI, and NOI of disposed hotel properties with total NOI.
