Segment Reporting

The Company has determined that it has four reportable segments based on how management reviews and manages its business. These reportable segments include: Real Estate Finance, Net Lease, Operating Properties and Land and Development. The Real Estate Finance segment includes all of the Company's activities related to senior and mezzanine real estate loans and real estate related securities. The Net Lease segment includes the Company's activities and operations related to the ownership of properties generally leased to single corporate tenants. The Operating Properties segment includes the Company's activities and operations related to its commercial and residential properties. The Land and Development segment includes the Company's activities related to its developable land portfolio.

The Company evaluates performance based on the following financial measures for each segment. The Company's segment information is as follows ($ in thousands):



	Real Estate Finance			Net Lease			Operating Properties			Land and Development			Corporate/Other⁽¹⁾			Company Total
Year Ended December 31, 2018
Operating lease income	$	—		$	151,958		$	55,677		$	557		$	—		$	208,192
Interest income	97,878			—			—			—			—			97,878
Other income	4,556			4,286			54,361			7,320			11,819			82,342
Land development revenue	—			—			—			409,710			—			409,710
Earnings (loss) from equity method investments	—			8,479			(1,003		)	(3,110		)	(9,373		)	(5,007		)
Gain from consolidation of equity method investment	—			67,877			—			—			—			67,877
Income from sales of real estate	—			45,038			80,966			—			—			126,004
Total revenue and other earnings	102,434			277,638			190,001			414,477			2,446			986,996
Real estate expense	—			(17,033		)	(80,570		)	(41,686		)	—			(139,289		)
Land development cost of sales	—			—			—			(350,181		)	—			(350,181		)
Other expense	(1,578		)	—			—			—			(4,462		)	(6,040		)
Allocated interest expense	(40,653		)	(63,706		)	(18,618		)	(21,897		)	(38,877		)	(183,751		)
Allocated general and administrative⁽²⁾	(12,997		)	(20,713		)	(6,574		)	(14,313		)	(19,975		)	(74,572		)
Segment profit (loss) ⁽³⁾	$	47,206		$	176,186		$	84,239		$	(13,600	)	$	(60,868	)	$	233,163



	Real Estate Finance			Net Lease			Operating Properties			Land and Development			Corporate/Other⁽¹⁾			Company Total
Other significant non-cash items:
Provision for loan losses	$	16,937		$	—		$	—		$	—		$	—		$	16,937
Impairment of assets	—			10,391			79,991			56,726			—			147,108
Depreciation and amortization	—			38,588			17,417			1,353			1,341			58,699
Capitalized expenditures	—			40,215			19,912			144,595			—			204,722

Year Ended December 31, 2017
Operating lease income	$	—		$	123,685		$	63,159		$	840		$	—		$	187,684
Interest income	106,548			—			—			—			—			106,548
Other income	2,633			2,603			49,641			126,259			6,955			188,091
Land development revenue	—			—			—			196,879			—			196,879
Earnings (loss) from equity method investments	—			5,086			(772		)	7,292			1,409			13,015
Income from discontinued operations	—			4,939			—			—			—			4,939
Gain from discontinued operations	—			123,418			—			—			—			123,418
Income from sales of real estate	—			87,512			4,537			—			—			92,049
Total revenue and other earnings	109,181			347,243			116,565			331,270			8,364			912,623
Real estate expense	—			(16,742		)	(89,725		)	(41,150		)	—			(147,617		)
Land development cost of sales	—			—			—			(180,916		)	—			(180,916		)
Other expense	(1,413		)	—			—			—			(19,541		)	(20,954		)
Allocated interest expense	(40,359		)	(53,710		)	(20,171		)	(28,033		)	(52,413		)	(194,686		)
Allocated general and administrative⁽²⁾	(15,223		)	(19,563		)	(8,075		)	(16,483		)	(20,726		)	(80,070		)
Segment profit (loss) ⁽³⁾	$	52,186		$	257,228		$	(1,406	)	$	64,688		$	(84,316	)	$	288,380
Other significant non-cash items:
Recovery of loan losses	$	(5,828	)	$	—		$	—		$	—		$	—		$	(5,828	)
Impairment of assets	—			5,486			6,358			20,535			—			32,379
Depreciation and amortization	—			28,132			17,684			1,896			1,321			49,033
Capitalized expenditures	—			4,838			35,754			125,744			—			166,336



	Real Estate Finance			Net Lease			Operating Properties			Land and Development			Corporate/Other⁽¹⁾			Company Total
Year Ended December 31, 2016
Operating lease income	$	—		$	126,164		$	64,593		$	423		$	—		$	191,180
Interest income	129,153			—			—			—			—			129,153
Other income	4,658			1,632			33,216			3,170			3,838			46,514
Land development revenue	—			—			—			88,340			—			88,340
Earnings (loss) from equity method investments	—			3,567			33,863			30,012			9,907			77,349
Income from discontinued operations	—			18,270			—			—			—			18,270
Income from sales of real estate	—			21,138			75,357			8,801			—			105,296
Total revenue and other earnings	133,811			170,771			207,029			130,746			13,745			656,102
Real estate expense	—			(18,158		)	(82,401		)	(36,963		)	—			(137,522		)
Land development cost of sales	—			—			—			(62,007		)	—			(62,007		)
Other expense	(2,719		)	—			—			—			(3,164		)	(5,883		)
Allocated interest expense	(57,787		)	(65,880		)	(23,156		)	(34,888		)	(39,687		)	(221,398		)
Allocated general and administrative⁽²⁾	(15,311		)	(17,585		)	(6,574		)	(13,693		)	(19,975		)	(73,138		)
Segment profit (loss) ⁽³⁾	$	57,994		$	69,148		$	94,898		$	(16,805	)	$	(49,081	)	$	156,154
Other significant non-cash items:
Recovery of loan losses	$	(12,514	)	$	—		$	—		$	—		$	—		$	(12,514	)
Impairment of assets	—			4,829			5,855			3,800			—			14,484
Depreciation and amortization	—			31,380			17,887			1,296			1,097			51,660
Capitalized expenditures	—			3,667			56,784			109,548			—			169,999

As of December 31, 2018
Real estate
Real estate, net	$	—		$	1,536,494		$	234,525		$	—		$	—		$	1,771,019
Real estate available and held for sale	—			1,055			21,496			—			—			22,551
Total real estate	—			1,537,549			256,021			—			—			1,793,570
Land and development, net	—			—			—			598,218			—			598,218
Loans receivable and other lending investments, net	988,224			—			—			—			—			988,224
Other investments	—			165,804			65,643			65,312			7,516			304,275
Total portfolio assets	$	988,224		$	1,703,353		$	321,664		$	663,530		$	7,516		3,684,287
Cash and other assets																1,329,990
Total assets																$	5,014,277

As of December 31, 2017
Real estate
Real estate, net	$	—		$	815,783		$	466,248		$	—		$	—		$	1,282,031
Real estate available and held for sale	—			—			68,588			—			—			68,588
Total real estate	—			815,783			534,836			—			—			1,350,619
Land and development, net	—			—			—			860,311			—			860,311
Loans receivable and other lending investments, net	1,300,655			—			—			—			—			1,300,655
Other investments	—			205,007			38,761			63,855			13,618			321,241
Total portfolio assets	$	1,300,655		$	1,020,790		$	573,597		$	924,166		$	13,618		3,832,826
Cash and other assets																898,252
Total assets																$	4,731,078

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(1)	Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company's joint venture investments and strategic investments that are not included in the other reportable segments above.


(2)	General and administrative excludes stock-based compensation expense of $17.6 million, $18.8 million and $10.9 million for the years ended December 31, 2018, 2017 and 2016, respectively.


(3)	The following is a reconciliation of segment profit to net income (loss) ($ in thousands):



	For the Years Ended December 31,
	2018			2017			2016
Segment profit	$	233,163		$	288,380		$	156,154
Less: (Provision for) recovery of loan losses	(16,937		)	5,828			12,514
Less: Impairment of assets	(147,108		)	(32,379		)	(14,484		)
Less: Depreciation and amortization	(58,699		)	(49,033		)	(51,660		)
Less: Stock-based compensation expense	(17,563		)	(18,812		)	(10,889		)
Less: Income tax (expense) benefit	(815		)	948			10,166
Less: Loss on early extinguishment of debt, net	(10,367		)	(14,724		)	(1,619		)
Net income (loss)	$	(18,326	)	$	180,208		$	100,182