OPERATING SEGMENTS

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

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, 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 operating income and cash flow.

Items of income that are not reflected in the segments are interest, other income, 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 the Company’s reportable segments’ operating income including segment assets and expenditures for the years 2018, 2017 and 2016 (dollars in thousands):

For the Twelve Months Ended December 31, 2018	Commercial Properties			Apartments			Land			Other			Total
Operating revenue	$	33,113		$	87,832		$	1		$	10		$	120,956
Operating expenses		(16,252	)		(42,134	)		(645	)		(556	)		(59,587	)
Depreciation and amortization		(9,530	)		(13,140	)		—			—			(22,670	)
Mortgage and loan interest		(7,663	)		(20,671	)		(636	)		(37,093	)		(66,063	)
Interest income		—			—			—			21,645			21,645
Gain on land sales		—			—			17,404			—			17,404
Segment operating income (loss)	$	(332	)	$	11,887		$	16,124		$	(15,994	)	$	11,685
Capital expenditures	$	8,246		$	16,953		$	—		$	—		$	25,199
Assets	$	153,014		$	143,500		$	84,529		$	—		$	381,043
Property Sales
Sales price	$	—		$	—		$	43,311		$	—		$	43,311
Cost of sale		—			—			(25,907	)		—			(25,907	)
Gain on land sales	$	—		$	—		$	17,404		$	—		$	17,404

For the Twelve Months Ended December 31, 2017	Commercial Properties			Apartments			Land			Other			Total
Operating revenue	$	33,286		$	92,807		$	111		$	17		$	126,221
Operating expenses		(18,549	)		(43,677	)		(878	)		(987	)		(64,091	)
Depreciation and amortization		(9,358	)		(16,354	)		—			33			(25,679	)
Mortgage and loan interest		(7,527	)		(22,347	)		(1,945	)		(34,352	)		(66,171	)
Interest income		—			—			—			18,941			18,941
Gain on sale of income producing properties		2,391			12,760			1,547			—			16,698
Gain on land sales		—			—			4,884			—			4,884
Segment operating income (loss)	$	243		$	23,189		$	3,719		$	(16,348	)	$	10,803
Capital expenditures	$	(5,817	)	$	1,402		$	609		$	—		$	(3,806	)
Assets	$	137,157		$	727,508		$	123,452		$	—		$	988,117
Property Sales
Sales price	$	5,050		$	—		$	29,969		$	—		$	35,019
Cost of sale		(2,659	)		—			(23,538	)		—			(26,197	)
Recognized prior deferred gain		—			12,760			—			—			12,760
Gain on sale	$	2,391		$	12,760		$	6,431		$	—		$	21,582
For the Twelve Months Ended December 31, 2016	Commercial Properties			Apartments			Land			Other			Total
Operating revenue	$	33,026		$	86,603		$	30		$	4		$	119,663
Operating expenses		(20,398	)		(40,786	)		(1,745	)		(21	)		(62,950	)
Depreciation and amortization		(9,099	)		(14,759	)		—			73			(23,785	)
Mortgage and loan interest		(7,191	)		(25,381	)		(2,232	)		(24,558	)		(59,362	)
Interest income		—			—			—			20,453			20,453
Gain on sale of income producing properties		(238	)		16,445			—			—			16,207
Gain on land sales		—			—			3,121			—			3,121
Segment operating income (loss)	$	(3,900	)	$	22,122		$	(826	)	$	(4,049	)	$	13,347
Capital expenditures	$	5,008		$	864		$	268		$	—		$	6,140
Assets	$	150,838		$	622,061		$	128,107		$	—		$	901,006
Property Sales
Sales price	$	1,500		$	20,350		$	29,128		$	—		$	50,978
Cost of sale		(1,738	)		(3,905	)		(26,007	)		—			(31,650	)
Gain on sale	$	(238	)	$	16,445		$	3,121		$	—		$	19,328

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

	For the Years Ended December 31,
	2018			2017			2016
Segment operating income (loss)	$	11,685		$	10,803		$	13,347
Other non-segment items of income (expense)
General and administrative		(12,708	)		(7,691	)		(7,119	)
Net income fee to related party		(631	)		(250	)		(257	)
Advisory fee to related party		(11,475	)		(11,082	)		(10,918	)
Other income		28,993			4,082			2,091
Gain on disposition of 50% interest in VAA		154,126			—			—
Loss on sale of investments		—			(331	)		—
Earnings from unconsolidated joint ventures and investees		1,513			309			493
Foreign currency transaction gain (loss)		12,399			(4,536	)		—
Income tax expense		(1,210	)		(180	)		(46	)
Net income (loss) from continuing operations	$	182,692		$	(8,876	)	$	(2,409	)

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

	For the Years Ended December 31,
	2018		2017		2016
Segment assets	$	381,043	$	988,117	$	901,006
Investments in unconsolidated subsidiaries and investees		76,001		6,396		6,087
Notes and interest receivable		126,058		112,095		126,564
Other assets and receivables		243,047		190,112		141,252
Total assets	$	826,149	$	1,296,720	$	1,174,909