OPERATING SEGMENTS

6 Months Ended

Jun. 30, 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 June 30, 2017 and 2016, including segment assets and expenditures (dollars in thousands):

For the Three Months Ended June 30, 2017	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	8,553		$	23,030		$	—		$	4		$	31,587
Property operating expenses		(4,900	)		(10,211	)		(168	)		(150	)		(15,429	)
Depreciation		(2,397	)		(4,030	)		—			18			(6,409	)
Mortgage and loan interest		(2,121	)		(5,028	)		(389	)		(9,809	)		(17,347	)
Interest income		—			—			—			5,059			5,059
Loss on land sales		—			—			(476	)		—			(476	)
Segment operating income (loss)	$	(865	)	$	3,761		$	(1,033	)	$	(4,878	)	$	(3,015	)
Balance Sheet Data
Capital expenditures	$	557		$	—		$	186		$	—		$	743
Real estate assets	$	148,718		$	654,119		$	127,810		$	—		$	930,647
Property Sales
Sales price	$	—		$	—		$	507		$	—		$	507
Cost of sale		—			—			(983	)		—			(983	)
Loss on sale	$	—		$	—		$	(476	)	$	—		$	(476	)

For the Three Months Ended June 30, 2016	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	8,947		$	21,856		$	30		$	1		$	30,834
Property operating expenses		(4,836	)		(10,168	)		(169	)		(18	)		(15,191	)
Depreciation		(2,270	)		(3,616	)		—			18			(5,868	)
Mortgage and loan interest		(1,696	)		(6,109	)		(841	)		(5,329	)		(13,975	)
Loan charges and prepayment penalties		—			—			—			—			—
Interest income		—			—			—			4,788			4,788
Gain on sale of income producing properties		6			5,162			—			—			5,168
Gain on land sales		—			—			1,719			—			1,719
Segment operating income (loss)	$	151		$	7,125		$	739		$	(540	)	$	7,475
Balance Sheet Data
Capital expenditures	$	680		$	(146	)	$	727		$	—		$	1,261
Real estate assets	$	151,759		$	603,829		$	145,816		$	—		$	901,404
Property Sales
Sales price	$	—		$	8,100		$	3,154		$	—		$	11,254
Cost of sale		—			(2,932	)		(1,435	)		—			(4,367	)
Gain on sale	$	—		$	5,168		$	1,719		$	—		$	6,887

The table below reflects the reconciliation of segment information to the corresponding amounts in the Consolidated Statements of Operations for the three months ended June 30, 2017 and 2016 (dollars in thousands):

	2017			2016
Segment operating income	$	(3,015	)	$	7,475
Other non-segment items of income (expense)
General and administrative		(1,995	)		(2,412	)
Net income fee to related party		(77	)		(54	)
Advisory fee to related party		(2,849	)		(2,687	)
Other income		(3,541	)		902
Earnings from unconsolidated investees		153			129
Net income (loss) from continuing operations	$	(11,324	)	$	3,353

Presented below is our reportable segments’ operating income for the six months ended June 30, 2017 and 2016, including segment assets and expenditures (dollars in thousands):

		Commercial
For the Six Months Ended June 30, 2017		Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	17,711		$	45,691		$	—		$	7		$	63,409
Property operating expenses		(9,839	)		(20,956	)		(447	)		(451	)		(31,693	)
Depreciation		(4,699	)		(8,076	)		—			36			(12,739	)
Mortgage and loan interest		(3,727	)		(11,787	)		(1,083	)		(17,546	)		(34,143	)
Interest income		—			—			—			9,852			9,852
Loss on land sales		—			—			(31	)		—			(31	)
Segment operating income (loss)	$	(554	)	$	4,872		$	(1,561	)	$	(8,102	)	$	(5,345	)
Balance Sheet Data
Capital expenditures	$	1,932		$	585		$	—		$	—		$	2,517
Real estate assets	$	148,718		$	654,119		$	127,810		$	—		$	930,647
Property Sales
Sales price	$	—		$	—		$	1,596		$	—		$	1,596
Cost of sale		—			—			(1,627	)		—			(1,627	)
Loss on sale	$	—		$	—		$	(31	)	$	—		$	(31	)
		Commercial
For the Six Months Ended June 30, 2016		Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	16,838		$	43,170		$	30		$	1		$	60,039
Property operating expenses		(9,931	)		(19,562	)		(916	)		2			(30,407	)
Depreciation		(4,584	)		(7,151	)		—			37			(11,698	)
Mortgage and loan interest		(3,671	)		(12,265	)		(1,153	)		(11,100	)		(28,189	)
Interest income		—			—			—			10,079			10,079
Gain on sale of income producing properties		6			4,919			—			—			4,925
Gain on land sales		—			—			3,370			—			3,370
Segment operating income (loss)	$	(1,342	)	$	9,111		$	1,331		$	(981	)	$	8,119
Balance Sheet Data
Capital expenditures	$	2,080		$	(146	)	$	1,498		$	—		$	3,432
Real estate assets	$	151,759		$	603,829		$	145,816		$	—		$	901,404
Property Sales
Sales price	$	1,500		$	8,100		$	7,334		$	—		$	16,934
Cost of sale		(1,743	)		(2,932	)		(3,964	)		—			(8,639	)
Gain (loss) on sale	$	(243	)	$	5,168		$	3,370		$	—		$	8,295

The table below reflects the reconciliation of segment information to the corresponding amounts in the Consolidated Statements of Operations for the six months ended June 30, 2017 and 2016 (dollars in thousands):

	For the Six Months Ended
	June 30,
	2017			2016
Segment operating income (loss)	$	(5,345	)	$	8,119
Other non-segment items of income (expense)
General and administrative		(4,026	)		(3,562	)
Net income fee to related party		(137	)		(126	)
Advisory fee to related party		(5,508	)		(5,425	)
Other income		(2,420	)		325
Earnings from unconsolidated investees		208			284
Income tax benefit		—			1
Net loss from continuing operations	$	(17,228	)	$	(384	)

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

	As of June 30,
	2017		2016
Segment assets	$	930,647	$	901,404
Investments in unconsolidated investees		6,294		5,868
Notes and interest receivable		106,874		123,854
Other assets		188,921		100,549
Total assets	$	1,232,736	$	1,131,675