BUSINESS SEGMENT DATA

9 Months Ended

Sep. 30, 2023

BUSINESS SEGMENT DATA

BUSINESS SEGMENT DATA

NOTE 22. BUSINESS SEGMENT DATA

The Company operates in four primary business segments: income properties, management services, commercial loans and investments, and real estate operations. 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 89% and 91% of our identifiable assets as of September 30, 2023 and December 31, 2022, and 88.8% and 82.3% of our consolidated revenues for the nine months ended September 30, 2023 and 2022, respectively. The management services segment consists of the revenue generated from managing PINE. As of September 30, 2023, our commercial loans and investments portfolio consisted of three 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 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, 2023 and 2022 is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Revenues:
Income Properties	$	25,183	$	17,694	$	70,373	$	49,229
Management Fee Income		1,094		951		3,294		2,835
Interest Income From Commercial Loans and Investments		1,114		1,323		2,965		3,331
Real Estate Operations		1,079		3,149		2,602		4,395
Total Revenues	$	28,470	$	23,117	$	79,234	$	59,790
Operating Income:
Income Properties	$	18,123	$	12,579	$	49,490	$	35,286
Management Fee Income		1,094		951		3,294		2,835
Interest Income From Commercial Loans and Investments		1,114		1,323		2,965		3,331
Real Estate Operations		927		1,488		1,726		2,455
General and Corporate Expense		(15,108)		(10,558)		(43,307)		(29,373)
Provision for Impairment		(929)		—		(1,408)		—
Gain on Disposition of Assets		2,464		4,973		3,565		4,728
Total Operating Income	$	7,685	$	10,756	$	16,325	$	19,262
Depreciation and Amortization:
Income Properties	$	11,651	$	7,283	$	32,769	$	20,359
Corporate and Other		18		22		45		42
Total Depreciation and Amortization	$	11,669	$	7,305	$	32,814	$	20,401
Capital Expenditures:
Income Properties	$	11,010	$	83,240	$	100,333	$	130,674
Commercial Loans and Investments		50		3,254		17,477		50,130
Corporate and Other		4		160		255		195
Total Capital Expenditures	$	11,064	$	86,654	$	118,065	$	180,999

Identifiable assets of each segment as of September 30, 2023 and December 31, 2022 are as follows (in thousands):

	As of
	September 30, 2023		December 31, 2022
Identifiable Assets:
Income Properties	$	950,157	$	902,427
Management Services		1,565		1,370
Commercial Loans and Investments		46,828		32,269
Real Estate Operations		3,367		4,041
Corporate and Other		64,456		46,438
Total Assets	$	1,066,373	$	986,545

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 primarily includes the identifiable assets of the Company’s Subsurface Interests and mitigation credits. 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 nine months ended September 30, 2023 or 2022.