BUSINESS SEGMENT DATA

9 Months Ended

Sep. 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 78.6% and 86.0% of our identifiable assets as of September 30, 2022 and December 31, 2021, respectively, and 82.3% and 80.7% of our consolidated revenues for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, our commercial loans and investments portfolio consisted of five commercial loan investments 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 nine months ended September 30, 2022 and 2021 are as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Revenues:
Income Properties	$	17,694	$	13,734	$	49,229	$	36,757
Management Fee Income		951		940		2,835		2,361
Interest Income From Commercial Loans and Investments		1,323		726		3,331		2,136
Real Estate Operations		3,149		1,177		4,395		4,318
Total Revenues	$	23,117	$	16,577	$	59,790	$	45,572
Operating Income:
Income Properties	$	12,579	$	9,750	$	35,286	$	27,069
Management Fee Income		951		940		2,835		2,361
Interest Income From Commercial Loans and Investments		1,323		726		3,331		2,136
Real Estate Operations		1,488		925		2,455		3,451
General and Corporate Expense		(10,558)		(8,247)		(29,373)		(23,905)
Impairment Charges		—		—		—		(16,527)
Gain on Disposition of Assets		4,973		22,666		4,728		28,106
Loss on Extinguishment of Debt		—		—		—		(641)
Total Operating Income	$	10,756	$	26,760	$	19,262	$	22,050
Depreciation and Amortization:
Income Properties	$	7,283	$	5,562	$	20,359	$	15,413
Corporate and Other		22		5		42		15
Total Depreciation and Amortization	$	7,305	$	5,567	$	20,401	$	15,428
Capital Expenditures:
Income Properties	$	83,240	$	1,754	$	130,674	$	115,861
Commercial Loans and Investments		3,254		—		50,130		—
Corporate and Other		160		19		195		29
Total Capital Expenditures	$	86,654	$	1,773	$	180,999	$	115,890

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

	As of
	September 30, 2022		December 31, 2021
Identifiable Assets:
Income Properties	$	664,482	$	630,747
Management Services		1,181		1,653
Commercial Loans and Investments		46,524		39,095
Real Estate Operations		24,631		26,512
Corporate and Other		108,954		35,132
Total Assets	$	845,772	$	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 nine months ended September 30, 2022 or 2021.