Segment Reporting

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Reporting

Note 18—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: Net Lease, Real Estate Finance, Operating Properties and Land and Development. The Net Lease segment (Refer to Note 3 - Net Lease Sale and Discontinued Operations) includes the Company’s activities and operations related to the ownership of properties generally leased to single corporate tenants and its investments in SAFE and Net Lease Venture II (refer to Note 8). 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 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):

	Net		Real Estate		Operating		Land and		Corporate/		Company
	Lease(1)		Finance		Properties		Development		Other(2)		Total
Year Ended December 31, 2021
Operating lease income	$	—	$	—	$	16,445	$	379	$	—	$	16,824
Interest income		1,707		29,522		—		—		—		31,229
Interest income from sales-type leases		1,215		—		—		—		—		1,215
Other income		14,888		1,260		27,342		6,899		19,870		70,259
Land development revenue		—		—		—		189,103		—		189,103
Earnings (losses) from equity method investments		108,399		3,074		15,108		21,492		6,271		154,344
Income from sales of real estate		—		—		26,319		—		—		26,319
Total revenue and other earnings		126,209		33,856		85,214		217,873		26,141		489,293
Real estate expense		(424)		—		(27,020)		(18,550)		—		(45,994)
Land development cost of sales		—		—		—		(171,961)		—		(171,961)
Other expense		(587)		(515)		—		(70)		(6,942)		(8,114)
Allocated interest expense		(61,685)		(14,830)		(6,949)		(15,242)		(16,694)		(115,400)
Allocated general and administrative(3)		(25,077)		(4,736)		(2,227)		(9,555)		(20,847)		(62,442)
Segment profit (loss)(4)	$	38,436	$	13,775	$	49,018	$	2,495	$	(18,342)	$	85,382
Other significant items:
Recovery of loan losses	$	—	$	(8,085)	$	—	$	—	$	—	$	(8,085)
Impairment of assets		—		—		678		—		—		678
Depreciation and amortization		—		—		5,585		902		585		7,072
Capitalized expenditures		2,578		—		655		24,036		—		27,269
Year Ended December 31, 2020
Operating lease income	$	2,706	$	—	$	21,214	$	356	$	—	$	24,276
Interest income		—		56,676		—		—		—		56,676
Other income		12,704		11,975		8,065		19,030		26,671		78,445
Land development revenue		—		—		—		164,702		—		164,702
Earnings (losses) from equity method investments		53,476		—		(16,361)		3,432		(1,075)		39,472
Income from sales of real estate		6,056		—		262		—		—		6,318
Total revenue and other earnings		74,942		68,651		13,180		187,520		25,596		369,889
Real estate expense		(161)		—		(22,936)		(22,986)		—		(46,083)
Land development cost of sales		—		—		—		(177,727)		—		(177,727)
Other expense		—		(266)		—		—		(303)		(569)
Allocated interest expense		(58,462)		(23,390)		(8,951)		(17,940)		(18,085)		(126,828)
Allocated general and administrative(3)		(23,223)		(6,622)		(2,591)		(9,990)		(19,099)		(61,525)
Segment profit (loss)(4)	$	(6,904)	$	38,373	$	(21,298)	$	(41,123)	$	(11,891)	$	(42,843)
Other significant items:
Provision for loan losses	$	—	$	8,866	$	—	$	—	$	—	$	8,866
Impairment of assets		—		—		3,053		2,738		—		5,791
Depreciation and amortization		—		—		5,142		952		1,233		7,327
Capitalized expenditures		21,764		—		1,636		30,506		—		53,906
Year Ended December 31, 2019
Operating lease income	$	3,585	$	—	$	28,423	$	286	$	—	$	32,294
Interest income		—		75,636		—		—		—		75,636
Other income		7,535		4,946		17,384		7,838		8,477		46,180
Land development revenue		—		—		—		119,595		—		119,595
Earnings (losses) from equity method investments		29,764		—		8,298		4,322		(6)		42,378
Income from sales of real estate		—		—		11,969		—		—		11,969
Total revenue and other earnings		40,884		80,582		66,074		132,041		8,471		328,052
Real estate expense		(197)		—		(35,322)		(32,318)		—		(67,837)
Land development cost of sales		—		—		—		(109,663)		—		(109,663)
Other expense		—		(462)		—		—		(12,658)		(13,120)
Allocated interest expense		(52,934)		(29,587)		(10,249)		(20,706)		(28,223)		(141,699)
Allocated general and administrative(5)		(25,990)		(8,254)		(2,887)		(11,957)		(19,085)		(68,173)
Segment profit (loss)(4)	$	(38,237)	$	42,279	$	17,616	$	(42,603)	$	(51,495)	$	(72,440)
Other significant non-cash items:
Provision for loan losses	$	—	$	6,482	$	—	$	—	$	—	$	6,482
Impairment of assets		—		—		3,853		6,427		668		10,948
Depreciation and amortization		—		—		4,977		977		1,222		7,176
Capitalized expenditures		31,445		—		5,617		99,031		—		136,093
As of December 31, 2021
Real estate, net	$	—	$	—	$	92,150	$	—	$	—	$	92,150
Real estate available and held for sale		—		—		301		—		—		301

Total real estate		—		—		92,451		—		—		92,451
Real estate and other assets available and held for sale and classified as discontinued operations(1)		2,299,711		—		—		—		—		2,299,711
Net investment in leases		43,215		—		—		—		—		43,215
Land and development, net		—		—		—		286,810		—		286,810
Loans receivable and other lending investments, net		—		332,844		—		—		—		332,844
Loan receivable held for sale		43,215		—		—		—		—		43,215
Other investments		1,186,162		48,862		43,252		1,096		17,909		1,297,281
Total portfolio assets		3,572,303		381,706		135,703		287,906		17,909		4,395,527
Cash and other assets												445,007
Total assets											$	4,840,534
As of December 31, 2020
Real estate, net	$	—	$	—	$	192,378	$	—	$	—	$	192,378
Real estate available and held for sale		—		—		5,212		—		—		5,212
Total real estate		—		—		197,590		—		—		197,590
Real estate and other assets available and held for sale and classified as discontinued operations(1)		2,228,570		—		—		—		—		2,228,570
Land and development, net		—		—		—		430,663		—		430,663
Loans receivable and other lending investments, net		—		686,931		—		—		—		686,931
Other investments		937,712		—		58,739		31,200		69,911		1,097,562
Total portfolio assets	$	3,166,282	$	686,931	$	256,329	$	461,863	$	69,911		4,641,316
Cash and other assets												220,492
Total assets											$	4,861,808

(1) Refer to Note – Net Lease Sale and Discontinued Operations.

(2) 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.

(3) General and administrative excludes stock-based compensation expense of $69.3 million, $39.4 million and $30.4 million for the years ended December 31, 2021, 2020 and 2019, respectively.

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

	For the Years Ended December 31,
	2021		2020		2019
Segment profit	$	85,382	$	(42,843)	$	(72,440)
Less: Recovery of (provision for) loan losses		8,085		(8,866)		(6,482)
Less: Impairment of assets		(678)		(5,791)		(10,948)
Less: Stock-based compensation expense		(69,261)		(39,354)		(30,436)
Less: Depreciation and amortization		(7,072)		(7,327)		(7,176)
Less: Income tax benefit (expense)		118		(89)		(369)
Less: Loss on early extinguishment of debt, net		—		(12,038)		(27,724)
Less: Net income from discontinued operations		121,452		85,455		489,900
Net income (loss)	$	138,026	$	(30,853)	$	334,325