BUSINESS SEGMENT DATA

3 Months Ended

Mar. 31, 2022

BUSINESS SEGMENT DATA

BUSINESS SEGMENT DATA

NOTE 23. 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, prior to the Land JV Sale. Our income property operations consist of income-producing properties, and our business plan is focused on investing in additional income-producing properties. Our income property operations accounted for 87.1% and 86.0% of our identifiable assets as of March 31, 2022 and December 31, 2021, respectively, and 88.1% and 77.8% of our consolidated revenues for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, our commercial loan and master lease investments portfolio consisted of three commercial loan investments and one commercial property whose lease is classified as a commercial loan and master lease investment. Our real estate operations consist of revenues generated from the sale of and royalty income related to our interests in subsurface oil, gas, and mineral rights, and the generation and sale of mitigation credits.

The Company evaluates segment performance based on operating income. 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 months ended March 31, 2022 and 2021 are as follows (in thousands):

	Three Months Ended
	March 31, 2022		March 31, 2021
Revenues:
Income Properties	$	15,168	$	11,449
Management Fee Income		936		669
Interest Income From Commercial Loan and Master Lease Investments		718		701
Real Estate Operations		388		1,893
Total Revenues	$	17,210	$	14,712
Operating Income:
Income Properties	$	11,152	$	8,532
Management Fee Income		936		669
Interest Income From Commercial Loan and Master Lease Investments		718		701
Real Estate Operations		337		1,811
General and Corporate Expense		(9,412)		(7,962)
Gain (Loss) on Disposition of Assets		(245)		708
Total Operating Income	$	3,486	$	4,459
Depreciation and Amortization:
Income Properties	$	6,356	$	4,825
Corporate and Other		13		5
Total Depreciation and Amortization	$	6,369	$	4,830
Capital Expenditures:
Income Properties	$	40,499	$	39,340
Corporate and Other		16		7
Total Capital Expenditures	$	40,515	$	39,347

Identifiable assets of each segment as of March 31, 2022 and December 31, 2021 are as follows (in thousands):

	As of
	March 31, 2022		December 31, 2021
Identifiable Assets:
Income Properties	$	657,128	$	630,747
Management Services		1,227		1,653
Commercial Loan and Master Lease Investments		21,830		39,095
Real Estate Operations		26,521		26,512
Corporate and Other		47,513		35,132
Total Assets	$	754,219	$	733,139

Operating income represents income from operations before interest expense, investment income, and income taxes. General and corporate expenses are an aggregate of general and administrative expenses and depreciation and amortization expense. 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 and Subsurface Interests. Corporate and other assets consist primarily of cash and restricted cash, property, plant, and equipment related to the other operations, as well as the general and corporate operations.

The management services, commercial loan and master lease investments, and real estate operations segments had no capital expenditures during the three months ended March 31, 2022 or 2021.