BUSINESS SEGMENT DATA

9 Months Ended

Sep. 30, 2020

BUSINESS SEGMENT DATA

BUSINESS SEGMENT DATA

NOTE 22. BUSINESS SEGMENT DATA

The Company operates in four primary business segments: income properties, management services, commercial loan and master lease investments, and real estate operations. The management services segment consists of the revenue generated from managing PINE and the Land JV. The management services segment had no assets as of September 30, 2020 and December 31, 2019, and therefore there are no related capital expenditures or depreciation and amortization for the periods presented. The real estate operations segment previously included land sales from the Daytona Beach land portfolio as well as revenue and expenses related to the sale of mitigation credits and subsurface operations. Upon the completion of the Land JV transaction in the fourth quarter of 2019, the real estate operations related to land sales have been classified as discontinued operations in the accompanying consolidated statements of operations for the three and nine months ended September 30, 2019 and the real estate operations segment remaining consists of subsurface operations and mitigation credit sales. The identifiable assets and liabilities related to the discontinued real estate operations have been separately disclosed as discontinued real estate operations for the periods presented.

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 82.8% and 66.0% of our identifiable assets as of September 30, 2020 and December 31, 2019, respectively, and 87.6% and 95.1% of our consolidated revenues for the nine months ended September 30, 2020 and 2019, respectively. Our management fee income consists of the management fees earned for the management of PINE and the Land JV. As of September 30, 2020, our commercial loan and master lease investments portfolio consisted of one commercial loan investment and two commercial properties whose leases are classified as commercial loan and master lease investments. Our continuing real estate

operations primarily consist of revenues generated from leasing and royalty income from our interests in subsurface oil, gas and mineral rights, and the sale of mitigation credits.

The Company evaluates 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 different segments for the three and nine months ended September 30, 2020 and 2019 is as follows:

	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Revenues:
Income Properties	$	12,933,029	$	10,260,831	$	35,409,172	$	31,360,544
Management Services		682,153		—		2,079,805		—
Commercial Loan and Master Lease Investments		413,092		855,559		2,300,331		908,324
Real Estate Operations		543,700		213,589		630,841		709,261
Total Revenues	$	14,571,974	$	11,329,979	$	40,420,149	$	32,978,129
Operating Income:
Income Properties	$	9,340,154	$	8,784,543	$	27,134,740	$	26,317,048
Management Services		682,153		—		2,079,805		—
Commercial Loan and Master Lease Investments		413,092		855,559		2,300,331		908,324
Real Estate Operations		(1,137,883)		205,105		(2,631,743)		614,481
General and Corporate Expense		(8,103,039)		(6,547,564)		(24,843,608)		(18,589,234)
Gain on Disposition of Assets		289,736		2,187,332		7,365,594		20,869,196
Gain on Extinguishment of Debt		—		—		1,141,481		—
Total Operating Income	$	1,484,213	$	5,484,975	$	12,546,600	$	30,119,815
Depreciation and Amortization:
Income Properties	$	4,751,289	$	4,281,286	$	14,314,300	$	11,690,110
Corporate and Other		10,768		5,550		21,415		17,600
Total Depreciation and Amortization	$	4,762,057	$	4,286,836	$	14,335,715	$	11,707,710
Capital Expenditures:
Income Properties	$	48,189,074	$	50,099,717	$	186,430,666	$	91,130,209
Commercial Loan and Master Lease Investments		—		8,167,500		6,754,375		16,007,500
Discontinued Real Estate Operations		—		694,310		—		2,593,803
Corporate and Other		4,040		—		16,357		2,061
Total Capital Expenditures	$	48,193,114	$	58,961,527	$	193,201,398	$	109,733,573

Identifiable assets of each segment as of September 30, 2020 and December 31, 2019 are as follows:

	As of
	September 30, 2020		December 31, 2019
Identifiable Assets:
Income Properties	$	567,604,674	$	464,285,272
Commercial Loan and Master Lease Investments		39,685,650		35,742,218
Real Estate Operations		66,806,074		65,554,619
Discontinued Land Operations		833,167		833,167
Corporate and Other		10,502,396		136,870,927
Total Assets	$	685,431,961	$	703,286,203

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, and gains on the disposition of assets. Identifiable assets by segment are those assets that are used in the Company’s operations in each segment. Real Estate Operations includes the identifiable assets of the Mitigation Bank JV and Land JV. Corporate and other assets consist primarily of cash, property, plant, and equipment related to the other operations, as well as the general and corporate operations.

The Management Services segment had no capital expenditures and held no assets as of September 30, 2020 or December 31, 2019.