BUSINESS SEGMENT DATA

3 Months Ended

Mar. 31, 2024

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 90% of our identifiable assets as of March 31, 2024 and December 31, 2023, and 87.5% and 90.8% of our consolidated revenues for the three months ended March 31, 2024 and 2023, respectively. Our management fee income consists primarily of the management fees earned for the management of PINE as well as from the Portfolio Management Agreement and the Subsurface Management Agreement. As of March 31, 2024, our commercial loans and investments portfolio consisted of four 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 months ended March 31, 2024 and 2023 is as follows (in thousands):

	Three Months Ended
	March 31, 2024		March 31, 2023
Revenues:
Income Properties	$	24,623	$	22,432
Management Fee Income		1,105		1,098
Interest Income From Commercial Loans and Investments		1,351		795
Real Estate Operations		1,048		392
Total Revenues	$	28,127	$	24,717
Operating Income:
Income Properties	$	17,870	$	15,279
Management Fee Income		1,105		1,098
Interest Income From Commercial Loans and Investments		1,351		795
Real Estate Operations		229		307
General and Corporate Expense		(15,147)		(14,043)
Provision for Impairment		(48)		(479)
Gain (Loss) on Disposition of Assets		9,163		—
Total Operating Income	$	14,523	$	2,957
Depreciation and Amortization:
Income Properties	$	10,915	$	10,302
Corporate and Other		16		14
Total Depreciation and Amortization	$	10,931	$	10,316
Capital Expenditures:
Income Properties	$	73,403	$	7,773
Commercial Loans and Investments		6,575		16,061
Corporate and Other		9		25
Total Capital Expenditures	$	79,987	$	23,859

Identifiable assets of each segment as of March 31, 2024 and December 31, 2023 are as follows (in thousands):

	As of
	March 31, 2024		December 31, 2023
Identifiable Assets:
Income Properties	$	935,976	$	887,345
Management Services		1,406		1,395
Commercial Loans and Investments		66,816		62,099
Real Estate Operations		1,469		2,343
Corporate and Other		35,416		36,486
Total Assets	$	1,041,083	$	989,668

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 three months ended March 31, 2024 or 2023.