OPERATING SEGMENTS

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

OPERATING SEGMENTS

NOTE 8. 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, 2017 and 2016, including segment assets and expenditures (dollars in thousands):

For the Three Months Ended March 31, 2017	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	9,159		$	22,660		$	—		$	3		$	31,822
Property operating expenses		(4,939	)		(10,746	)		(279	)		(301	)		(16,265	)
Depreciation		(2,302	)		(4,046	)		—			18			(6,330	)
Mortgage and loan interest		(1,606	)		(6,758	)		(694	)		(7,738	)		(16,796	)
Interest income		—			—			—			4,792			4,792
Gain on land sales		—			—			445			—			445
Segment operating income (loss)	$	312		$	1,110		$	(528	)	$	(3,226	)	$	(2,332	)
Capital expenditures		1,375			—			399			—			1,774
Real estate assets		150,255			633,491			127,978			—			911,724
Property Sales
Sales price	$	—		$	—		$	1,089		$	—		$	1,089
Cost of sale		—			—			(644	)		—			(644	)
Gain on sale	$	—		$	—		$	445		$	—		$	445

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	)		(6,157	)		(312	)		(5,771	)		(14,214	)
Interest income		—			—			—			5,291			5,291
Loss on sale of income producing properties		(244	)		—			—			—			(244	)
Gain 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	)
Gain (loss) on sale	$	(244	)	$	—		$	1,652		$	—		$	1,408

The table below reflects the reconciliation of segment information to the corresponding amounts in the Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 (dollars in thousands):

	For the Three Months Ended
	March 31,
	2017			2016
Segment operating income (loss)	$	(2,332	)	$	644
Other non-segment items of income (expense)
General and administrative		(2,031	)		(2,025	)
Net income fee to related party		(60	)		(72	)
Advisory fee to related party		(2,659	)		(2,738	)
Other income		1,120			298
Earnings from unconsolidated investees		55			155
Income tax benefit		—			1
Net loss from continuing operations	$	(5,907	)	$	(3,737	)

The table below reflects a reconciliation of the segment information to the corresponding amounts in the Consolidated Balance Sheets (dollars in thousands):

	As of March 31,
	2017		2016
Segment assets	$	911,724	$	855,371
Investments in unconsolidated investees		6,141		5,739
Notes and interest receivable		121,696		116,237
Other assets		174,164		129,920
Total assets	$	1,213,725	$	1,107,267