16. Segments

The Company has identified three reportable business segments: (i) Grove and evo operations (ii) Copper Beech operations and (iii) property management services. The Company evaluates the performance of its operating segments based on operating income (loss). All inter-segment sales pricing is based on current market conditions. Unallocated corporate amounts include general expenses associated with managing the Company’s three reportable operating segments. Prior to the First CB Closing in January 2015, the Company’s segments consisted of student housing operations and property management services. Upon the First CB Closing, the Company added the Copper Beech operations as a new reportable operating segment. Beginning with the first quarter of 2015, the Company’s chief operating decision maker began reviewing the separate operating results of the three operating segments to make decisions about resources to be allocated to each segment and assess each segment’s performance. Prior to the three months ended September 30, 2014, the Company reported construction and development service as part of the property management segment. Upon discontinuation of the construction and development operations, all construction and development activities are reported in discontinued operations.

The following tables set forth the Company’s segment information for the periods presented (in thousands):

	Three Months Ended March 31,
	2015		2014

Grove and evo Operations:
Revenues from external customers	$	30,901	$	24,608
Operating expenses		21,727		17,500
Income from wholly-owned student housing operations		9,174		7,108
Severance expense		(508)		-
Equity in earnings (losses) of unconsolidated entities		(1,372)		251
Operating income	$	7,294	$	7,359
Depreciation and amortization	$	7,717	$	6,770
Capital expenditures	$	1,376	$	30,218
Investment in unconsolidated entities	$	43,109	$	93,291
Total segment assets at end of period	$	927,097	$	972,460

Copper Beech Operations:
Revenues from external customers	$	9,199	$	-
Operating expenses (excluding amortization of in place leases)		6,187		-
Intangible amortization of in place leases		8,661		-
Loss from wholly-owned student housing operations		(5,649)		-
Equity in earnings (losses) of unconsolidated entities		(777)		68
Operating income (loss)	$	(6,426)	$	68
Depreciation and amortization	$	11,534	$	-
Capital expenditures	$	338	$	-
Investment in unconsolidated entities	$	50,674	$	266,010
Total segment assets at end of period	$	652,609	$	266,010

Property Management Services:
Revenues from external customers	$	229	$	103
Intersegment revenues		122		58
Total revenues		351		161
Operating expenses		233		365
Operating income (loss)	$	118	$	(204)
Depreciation and amortization	$	188	$	1
Total segment assets at end of period	$	-	$	-

Reconciliations:
Total segment revenues	$	40,451	$	24,769
Elimination of intersegment revenues		(122)		(58)
Total consolidated revenues	$	40,329	$	24,711

Segment operating income	$	986	$	7,223
Interest expense		(7,788)		(3,376)
Transaction costs		(1,492)		-
Gain on purchase of Copper Beech		21,642		-
Gain on sale of land and unconsolidated joint ventures		7,748		-
Corporate depreciation and amortization		(317)		(209)
Net unallocated expenses related to corporate overhead		(8,115)		(3,785)
Write off of other assets		(769)		-
Other income (expense)		(55)		66
Income (loss) from continuing operations, before income tax benefit	$	11,840	$	(81)

Total segment assets	$	1,579,706	$	1,238,470
Unallocated corporate assets and eliminations		4,505		12,430
Total assets at end of period	$	1,584,211	$	1,250,900