BUSINESS SEGMENT DATA

3 Months Ended

Mar. 31, 2017

BUSINESS SEGMENT DATA

BUSINESS SEGMENT DATA

NOTE 19. BUSINESS SEGMENT DATA

The Company operates in four primary business segments: income properties, commercial loan investments, real estate operations, and golf operations. Our income property operations consist primarily of income-producing properties, and our business plan is focused on investing in additional income-producing properties. Our income property operations accounted for 78.0% and 74.1% of our identifiable assets as of March 31, 2017 and December 31, 2016, respectively, and 18.3% and 35.0% of our consolidated revenues for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, we have three commercial loan investments including one fixed-rate and one variable-rate mezzanine commercial mortgage loan and a variable-rate B-Note representing a secondary tranche in a commercial mortgage loan. Our real estate operations primarily consist of revenues generated from land transactions and leasing, royalty income, and revenue from the release of surface entry rights from our subsurface interests. Our golf operations consist of a single property located in the City, with two 18-hole championship golf courses, a practice facility, and clubhouse facilities, including a restaurant and bar operation, fitness facility, and pro-shop with retail merchandise. The majority of the revenues generated by our golf operations are derived from members and public customers playing golf, club memberships, and food and beverage operations.

The Company reports performance based on profit or loss from operations before income taxes. The Company’s reportable segments are strategic business units that offer different products. They are managed separately because each segment requires different management techniques, knowledge, and skills.

Information about the Company’s operations in the different segments for the three months ended March 31, 2017 and 2016 is as follows: 

	Three Months Ended
	March 31, 2017		March 31, 2016
Revenues:
Income Properties	$	7,073,240	$	6,429,241
Commercial Loan Investments		536,489		881,245
Real Estate Operations		29,474,460		9,560,898
Golf Operations		1,474,944		1,464,359
Agriculture and Other Income		154,151		18,692
Total Revenues	$	38,713,284	$	18,354,435
Operating Income:
Income Properties	$	5,661,527	$	5,252,534
Commercial Loan Investments		536,489		881,245
Real Estate Operations		20,317,611		7,303,857
Golf Operations		(23,734)		59,771
Agriculture and Other Income		113,714		(29,359)
General and Corporate Expense		(3,756,196)		(7,074,732)
Total Operating Income	$	22,849,411	$	6,393,316
Depreciation and Amortization:
Income Properties	$	2,686,312	$	1,981,050
Golf Operations		65,367		68,649
Agriculture and Other		10,896		17,668
Total Depreciation and Amortization	$	2,762,575	$	2,067,367
Capital Expenditures:
Income Properties	$	21,937,532	$	2,730,714
Golf Operations		1,607,742		—
Agriculture and Other		12,083		15,867
Total Capital Expenditures	$	23,557,357	$	2,746,581

	As of
	March 31, 2017		December 31, 2016
Identifiable Assets:
Income Properties	$	323,512,072	$	302,757,565
Commercial Loan Investments		24,034,727		24,032,885
Real Estate Operations		49,157,129		58,868,298
Golf Operations		5,852,607		3,675,842
Agriculture and Other		12,384,525		19,288,836
Total Assets	$	414,941,060	$	408,623,426

Operating income represents income from continuing operations before loss on early extinguishment of debt, interest expense, investment income, and income taxes. General and corporate expenses are an aggregate of general and administrative expenses, impairment charges, depreciation and amortization expense, land lease termination, and gains (losses) on the disposition of assets. Identifiable assets by segment are those assets that are used in the Company’s operations in each segment. Other assets consist primarily of cash, property, plant, and equipment related to the other operations, as well as the general and corporate operations.