OPERATING SEGMENTS

12 Months Ended

Dec. 31, 2012

OPERATING SEGMENTS

OPERATING SEGMENTS

NOTE 14.         OPERATING SEGMENTS

Our segments are based on management’s method of internal reporting which classifies its operations by property type. The segments are commercial, apartments, hotels, land and other. Significant differences among the accounting policies of the operating segments as compared to the Consolidated Financial Statements principally involve the calculation and allocation of administrative and other expenses. Management evaluates the performance of each of the operating segments and allocates resources to them based on their net operating income and cash flow.

Items of income that are not reflected in the segments are interest, other income, gain on debt extinguishment, gain on condemnation award, equity in partnerships, and gains on sale of real estate. Expenses that are not reflected in the segments are provision for losses, advisory, net income and incentive fees, general and administrative, non-controlling interests, foreign currency transaction loss and net loss from discontinued operations before gains on sale of real estate.

The segment labeled as “Other” consists of revenue and operating expenses related to the notes receivable and corporate debt.

Presented below is the operating income of each operating segment and each segment’s assets for 2012, 2011 and 2010 (dollars in thousands):

	Commercial
For the Twelve Months Ended Dec 31, 2012	Properties			Apartments			Hotels			Land			Other			Total
Operating revenue	$	37,204		$	82,153		$	-		$	78		$	86		$	119,521
Operating expenses		21,194			37,080			-			693			430			59,397
Depreciation and amortization		6,723			14,894			-			-			-			21,617
Mortgage and loan interest		7,995			36,670			-			6,923			7,446			59,034
Interest income		-			-			-			-			14,612			14,612
Gain on land sales		-			-			-			5,475			-			5,475
Segment operating gain (loss)	$	1,292		$	(6,491	)	$	-		$	(2,063	)	$	6,822		$	(440	)
Capital expenditures		2,737			978			-			-			-			3,715
Assets		162,756			538,352			-			212,285			-			913,393
Property Sales
Sales price	$	9,825		$	45,610		$	3,369		$	39,733		$	-		$	98,537
Cost of sale		(9,600	)		(40,067	)		(252	)		(34,873	)		-			(84,792	)
Deferred current gain		-			-			-			615			-			615
Recognized prior deferred gain		-			-			-						-			-
Gain on sale	$	225		$	5,543		$	3,117		$	5,475		$	-		$	14,360
	Commercial
For the Twelve Months Ended Dec 31, 2011	Properties			Apartments			Hotels			Land			Other			Total
Operating revenue	$	34,729		$	73,166		$	-		$	467		$	118		$	108,480
Operating expenses		21,596			34,843			-			2,096			369			58,904
Depreciation and amortization		5,238			13,465			-			-			-			18,703
Mortgage and loan interest		11,065			29,709			-			11,357			7,117			59,248
Interest income		-			-			-			-			10,948			10,948
Loss on land sales		-			-			-			34,247			-			34,247
Segment operating loss	$	(3,170	)	$	(4,851	)	$	-		$	21,261		$	3,580		$	16,820
Capital expenditures		3,073			652						137						3,862
Assets		169,187			547,667			-			243,488			-			960,342
Property Sales
Sales price	$	106,653		$	28,690		$	29,844		$	249,495		$	-		$	414,682
Cost of sale		(96,837	)		(14,466	)		(26,245	)		(223,331	)		-			(360,879	)
Deferred current gain		1,652			-			-			-			-			1,652
Recognized prior deferred gain		17,448			10,168			-			8,083			-			35,699
Gain on sale	$	28,916		$	24,392		$	3,599		$	34,247		$	-		$	91,154
	Commercial
For the Twelve Months Ended Dec 31, 2010	Properties			Apartments			Hotels			Land			Other			Total
Operating revenue	$	40,470		$	65,626		$	-		$	309		$	100			106,505
Operating expenses		22,280			33,096			-			3,384			8			58,768
Depreciation and amortization		7,553			12,847			-			-			-			20,400
Mortgage and loan interest		11,261			30,976			-			14,082			8,730			65,049
Interest income		-			-			-			-			8,425			8,425
Loss on land sales		-			-			-			(10,103	)		-			(10,103	)
Segment operating loss	$	(624	)	$	(11,293	)	$	-		$	(27,260	)	$	(213	)	$	(39,390	)
Capital expenditures		512			664						471						1,647
Assets		179,959			518,088			-			430,781			(19,079	)		1,109,749
Property Sales
Sales price	$	6,470		$	195,984		$	-		$	28,357		$	-		$	230,811
Cost of sale		(8,376	)		(151,735	)		-			(43,400	)		-			(203,511	)
Deferred current gain		-			(29,194	)		-			(3	)		-			(29,197	)
Recognized prior deferred gain		-			6,157			-			4,943			-			11,100
Gain on sale	$	(1,906	)	$	21,212		$	-		$	(10,103	)	$	-		$	9,203

The table below reconciles the segment information to the corresponding amounts in the Consolidated Statements of Operations (dollars in thousands):

	For Twelve Months Ended December 31,
	2012			2011			2010
Segment operating loss	$	(440	)	$	16,820		$	(39,390	)
Other non-segment items of income (expense)
General and administrative		(6,388	)		(13,619	)		(12,457	)
Advisory fees		(10,182	)		(13,225	)		(15,770	)
Provision on impairment of notes receivable and real estate assets		(4,730	)		(44,372	)		(51,588	)
Other income		7,950			2,723			8,726
Gain on sale of investments		(361	)		91			673
Gain on Foreign Currency Transactions		-			-			222
Equity in earnings of investees		372			79			(200	)
Income tax benefit		2,474			15,672			1,668
Loss from continuing operations	$	(11,305	)	$	(35,831	)	$	(108,116	)

SEGMENT ASSET RECONCILIATION TO TOTAL ASSETS

The table below reconciles the segment information to the corresponding amounts in the Consolidated Balance Sheets (dollars in thousands):

	December 31,
	2012		2011		2010
Segment assets	$	913,393	$	960,342	$	1,109,749
Investments in real estate partnerships		8,168		10,746		12,491
Other assets and receivables		196,744		197,032		209,360
Assets held for sale		17,040		67,351		225,674
Total assets	$	1,135,345	$	1,235,471	$	1,557,274