BUSINESS SEGMENT DATA

6 Months Ended

Jun. 30, 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 loans and 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 81.9% and 86.0% of our identifiable assets as of June 30, 2022 and December 31, 2021, respectively, and 86.0% and 79.4% of our consolidated revenues for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, our commercial loans and investments portfolio consisted of five commercial loan investments, one commercial property whose lease is classified as a commercial loan investment, and one preferred equity investment which is classified as a commercial loan 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 and six months ended June 30, 2022 and 2021 are as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Revenues:
Income Properties	$	16,367	$	11,574	$	31,535	$	23,023
Management Fee Income		948		752		1,884		1,421
Interest Income From Commercial Loans and Investments		1,290		709		2,008		1,410
Real Estate Operations		858		1,248		1,246		3,141
Total Revenues	$	19,463	$	14,283	$	36,673	$	28,995
Operating Income:
Income Properties	$	11,555	$	8,787	$	22,707	$	17,319
Management Fee Income		948		752		1,884		1,421
Interest Income From Commercial Loans and Investments		1,290		709		2,008		1,410
Real Estate Operations		630		715		967		2,526
General and Corporate Expense		(9,403)		(7,696)		(18,815)		(15,658)
Impairment Charges		—		(16,527)		—		(16,527)
Gain (Loss) on Disposition of Assets		—		4,732		(245)		5,440
Loss on Extinguishment of Debt		—		(641)		—		(641)
Total Operating Income (Loss)	$	5,020	$	(9,169)	$	8,506	$	(4,710)
Depreciation and Amortization:
Income Properties	$	6,719	$	5,026	$	13,075	$	9,851
Corporate and Other		8		5		21		10
Total Depreciation and Amortization	$	6,727	$	5,031	$	13,096	$	9,861
Capital Expenditures:
Income Properties	$	6,935	$	74,767	$	47,434	$	114,107
Commercial Loans and Investments		46,876		—		46,876		—
Corporate and Other		19		3		35		10
Total Capital Expenditures	$	53,830	$	74,770	$	94,345	$	114,117

Identifiable assets of each segment as of June 30, 2022 and December 31, 2021 are as follows (in thousands):

	As of
	June 30, 2022		December 31, 2021
Identifiable Assets:
Income Properties	$	657,337	$	630,747
Management Services		1,256		1,653
Commercial Loans and Investments		68,983		39,095
Real Estate Operations		26,243		26,512
Corporate and Other		48,536		35,132
Total Assets	$	802,355	$	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 and real estate operations segments had no capital expenditures during the three and six months ended June 30, 2022 or 2021.