OPERATING SEGMENTS

9 Months Ended

Sep. 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 other income and equity in partnerships. Expenses that are not reflected in the segments are provision for losses, advisory and net income fees, general and administrative and non-controlling interests.

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 September 30, 2017 and 2016, including capital expenditures and segment assets (dollars in thousands):

	Commercial
For the Three Months Ended September 30, 2017	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	8,461		$	23,231		$	111		$	4		$	31,807
Property operating expenses		(4,485	)		(10,659	)		(127	)		(132	)		(15,403	)
Depreciation		(2,345	)		(4,028	)		—			—			(6,373	)
Mortgage and loan interest		(1,902	)		(5,168	)		(420	)		(8,227	)		(15,717	)
Interest income		—			—			—			4,232			4,232
Gain on sale of income producing properties		—			12,760			—			—			12,760
Gain on land sales		—			—			1,062			—			1,062
Segment operating income (loss)	$	(271	)	$	16,136		$	626		$	(4,123	)	$	12,368
Balance Sheet Data
Capital expenditures	$	691		$	—		$	55		$	—		$	1,289
Real estate assets	$	147,377		$	663,636		$	128,230		$	—		$	939,243
Property Sales
Sales price	$	—		$	—		$	850		$	—		$	850
Cost of sale		—			—			(320	)		—			(320	)
Recognized prior deferred gain		—			12,760			532			—			13,292
Gain on sale	$	—		$	12,760		$	1,062		$	—		$	13,822
	Commercial
For the Three Months Ended September 30, 2016	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	7,658		$	22,408		$	—		$	1		$	30,067
Property operating expenses		(4,727	)		(10,693	)		(243	)		(8	)		(15,671	)
Depreciation		(2,236	)		(3,807	)		—			18			(6,025	)
Mortgage and loan interest		(1,700	)		(6,424	)		(550	)		(6,688	)		(15,362	)
Interest income		—			—			—			5,712			5,712
Gain on land sales		—			—			555			—			555
Segment operating income (loss)	$	(1,005	)	$	1,484		$	(238	)	$	(965	)	$	(724	)
Balance Sheet Data
Capital expenditures	$	2,045		$	—		$	375		$	—		$	2,420
Real estate assets	$	151,900		$	613,431		$	144,378		$	—		$	909,709
Property Sales
Sales price	$	—		$	—		$	805		$	—		$	805
Cost of sale		—			—			(250	)		—			(250	)
Gain on sale	$	—		$	—		$	555		$	—		$	555

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

	For the Three Months Ended
	September 30,
	2017			2016
Segment operating income (loss)	$	12,368		$	(724	)
Other non-segment items of income (expense)
General and administrative		(1,766	)		(1,760	)
Net income fee to related party		(53	)		(67	)
Advisory fee to related party		(2,802	)		(2,749	)
Other income		2,096			252
Earnings from unconsolidated investees		41			146
Income tax expense		—			(46	)
Net income (loss) from continuing operations	$	9,884		$	(4,948	)

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

	Commercial
For the Nine Months Ended September 30, 2017	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	26,172		$	68,922		$	111		$	11		$	95,216
Property operating expenses		(14,324	)		(31,616	)		(575	)		(583	)		(47,098	)
Depreciation		(7,045	)		(12,105	)		—			37			(19,113	)
Mortgage and loan interest		(5,629	)		(16,955	)		(1,503	)		(25,772	)		(49,859	)
Interest income		—			—			—			14,083			14,083
Gain on sale of producing properties		—			12,760			—			—			12,760
Gain on land sales		—			—			1,032			—			1,032
Segment operating income (loss)	$	(826	)	$	21,006		$	(935	)	$	(12,224	)	$	7,021
Balance Sheet Data
Capital expenditures	$	2,623		$	543		$	641		$	—		$	3,807
Real estate assets	$	147,377		$	663,636		$	128,230		$	—		$	939,243
Property Sales
Sales price	$	—		$	—		$	2,446		$	—		$	2,446
Cost of sale		—			—			(1,946	)		—			(1,946	)
Recognized prior deferred gain		—			12,760			532			—			13,292
Gain on sale	$	—		$	12,760		$	1,032		$	—		$	13,792
	Commercial
For the Nine Months Ended September 30, 2016	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	24,496		$	65,578		$	30		$	2		$	90,106
Property operating expenses		(14,658	)		(30,255	)		(1,159	)		(6	)		(46,078	)
Depreciation		(6,820	)		(10,958	)		—			55			(17,723	)
Mortgage and loan interest		(5,371	)		(18,689	)		(1,703	)		(17,788	)		(43,551	)
Interest income		—			—			—			15,791			15,791
Gain on sale of producing properties		6			4,919			—			—			4,925
Gain on land sales		—			—			3,925			—			3,925
Segment operating income (loss)	$	(2,347	)	$	10,595		$	1,093		$	(1,946	)	$	7,395
Balance Sheet Data
Capital expenditures	$	4,125		$	(146	)	$	1,873		$	—		$	5,852
Real estate assets	$	151,900		$	613,431		$	144,378		$	—		$	909,709
Property Sales
Sales price	$	—		$	11,129		$	11,987		$	—		$	23,116
Cost of sale		—			(10,394	)		(6,863	)		—			(17,257	)
Recognized prior deferred gain		—			—			2,737			—			2,737
Gain on sale	$	—		$	735		$	7,861		$	—		$	8,596

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

	For the Nine Months Ended
	September 30,
	2017			2016
Segment operating income	$	7,021		$	7,395
Other non-segment items of income (expense)
General and administrative		(5,797	)		(6,197	)
Net income fee to related party		(189	)		(193	)
Advisory fee to related party		(8,310	)		(8,174	)
Other income		(324	)		1,452
Earnings from unconsolidated investees		249			430
Income tax expense		—			(45	)
Net loss from continuing operations	$	(7,350	)	$	(5,332	)

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

	As of September 30,
	2017		2016
Segment assets	$	939,243	$	909,709
Investments in unconsolidated investees		6,335		5,152
Notes and interest receivable		102,555		115,415
Other assets		184,431		144,472
Total assets	$	1,232,564	$	1,174,748