Note 5 - Real Estate Held For Sale, Other Real Estate Owned, and Operating Properties

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Real Estate Disclosure [Text Block]

NOTE

5

 — REAL ESTATE HELD FOR SALE, OTHER REAL ESTATE OWNED, AND OPERATING PROPERTIES

As of

June 30, 2018,

we held total REO assets of

$67.3

 million, of which

$12.6

million were classified as held for sale,

$21.9

 million were held as operating properties, and

$32.8

 million were classified as other real estate owned. At

December 

31,

2017,

we held total REO assets of

$64.6

million, of which

$5.9

million were held for sale,

$20.5

million were held as operating properties, and

$38.3

million were classified as other real estate owned.

During the

six

months ended

June 30, 2018,

we sold

two

REO assets (or portions thereof) for

$0.5

million (net of transaction costs and other adjustments) resulting in a total net gain on sale of

$0.4

 million. During the

six

months ended

June 30, 2017,

we sold

four

 REO assets (or portions thereof) for

$92.9

million (net of transaction costs and other adjustments), resulting in a total net gain of

$8.5

million, of which

$6.8

million was included as a component of discontinued operations in the unaudited condensed consolidated statement of operations.

REO Planned Development and Operations

Costs and expenses related to operating, holding and maintaining our operating properties and REO assets are expensed as incurred and included in operating property direct expenses, and expenses for non-operating real estate owned in the accompanying condensed consolidated statements of operations. For the

three

 months ended

June 30, 2018

and

2017,

these costs and expenses were

$2.3

 million and

$1.1

 million (

$0.3

million of which is included in income from discontinued operations), respectively.  For the

six

months ended

June 30, 2018

and

2017,

these costs and expenses were

$4.7

 million and

$5.8

 million, respectively, (

$4.0

million of which is included in loss from discontinued operations), respectively. Costs related to the development or improvements of the Company’s real estate assets are generally capitalized.  Cash outlays for capitalized development costs totaled

$3.2

 million and

$1.1

 million for the

six

months ended

June 30, 2018

and

2017,

respectively.