OPERATING SEGMENTS

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

OPERATING SEGMENTS

NOTE 7. OPERATING SEGMENTS

Our segments are based on our method of internal reporting which classifies our operations by property type. Our property types are grouped into commercial properties, apartments, land and other operating segments. 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 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 our reportable segments’ operating income for the three months ended March 31, 2016 and 2015, including segment assets and expenditures (dollars in thousands):

For the Three Months Ended March 31, 2016	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	7,890		$	21,315		$	—		$	—		$	29,205
Property operating expenses		(5,095	)		(9,394	)		(747	)		20			(15,216	)
Depreciation		(2,314	)		(3,534	)					18			(5,830	)
Mortgage and loan interest		(1,974	)		(5,502	)		(312	)		(5,737	)		(13,525	)
Loan charges and prepayment penalties		—			(655	)		—			(34	)		(689	)
Interest income		—			—			—			5,291			5,291
Gain (loss) on sale of income producing properties		(244	)		—			—			—			(244	)
Gain (loss) on land sales		—			—			1,652			—			1,652
Segment operating income (loss)	$	(1,737	)	$	2,230		$	593		$	(442	)	$	644
Capital expenditures		1,401			—			770			—			2,171
Real estate assets		152,945			556,294			146,132			—			855,371
Property Sales
Sales price	$	1,500		$	—		$	4,180		$	—		$	5,680
Cost of sale		(1,744	)		—			(2,528	)		—			(4,272	)
Recognized prior deferred gain		—			—			—			—			—
Gain (loss) on sale	$	(244	)	$	—		$	1,652		$	—		$	1,408

For the Three Months Ended March 31, 2015	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	7,091		$	16,019		$	—		$	46		$	23,156
Property operating expenses		(4,267	)		(7,042	)		(349	)		(10	)		(11,668	)
Depreciation		(1,927	)		(2,795	)		—			18			(4,704	)
Mortgage and loan interest		(1,616	)		(4,333	)		(1,116	)		(2,729	)		(9,794	)
Loan charges and prepayment penalties		—			(1,850	)		—			—			(1,850	)
Interest income		—			—			—			5,237			5,237
Gain (loss) on land sales		—			—			2,876			—			2,876
Segment operating income (loss)	$	(719	)	$	(1	)	$	1,411		$	2,562		$	3,253
Capital expenditures		3,192			257			826			—			4,275
Real estate assets		143,686			387,847			165,073			—			696,606
Property Sales
Sales price	$	—		$	—		$	7,257		$	—		$	7,257
Cost of sale		—			—			(4,381	)		—			(4,381	)
Gain (loss) on sale	$	—		$	—		$	2,876		$	—		$	2,876

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

	For the Three Months Ended March 31,
	2016			2015
Segment operating income (loss)	$	644		$	3,253
Other non-segment items of income (expense)
General and administrative		(2,025	)		(2,201	)
Net income fee to related party		(72	)		(290	)
Advisory fee to related party		(2,738	)		(2,292	)
Other income		298			4,097
Earnings from unconsolidated investees		155			45
Litigation settlement		—			(73	)
Income tax benefit		1			103
Net income (loss) from continuing operations	$	(3,737	)	$	2,642

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

	As of March 31,
	2016		2015
Segment assets	$	855,371	$	696,606
Investments in unconsolidated investees		5,739		4,462
Notes and interest receivable		116,237		138,163
Other assets		129,920		106,457
Total assets	$	1,107,267	$	945,688