BUSINESS SEGMENT DATA

6 Months Ended

Jun. 30, 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 92.1% and 90.0% of our identifiable assets as of June 30, 2024 and December 31, 2023, and 88.6% and 89.0% of our consolidated revenues for the six months ended June 30, 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 June 30, 2024, 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 six months ended June 30, 2024 and 2023 is as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Revenues:
Income Properties	$	25,878	$	22,758	$	50,501	$	45,190
Management Fee Income		1,131		1,102		2,236		2,200
Interest Income From Commercial Loans and Investments		1,441		1,056		2,792		1,851
Real Estate Operations		395		1,131		1,443		1,523
Total Revenues	$	28,845	$	26,047	$	56,972	$	50,764
Operating Income:
Income Properties	$	17,798	$	16,088	$	35,668	$	31,367
Management Fee Income		1,131		1,102		2,236		2,200
Interest Income From Commercial Loans and Investments		1,441		1,056		2,792		1,851
Real Estate Operations		136		492		365		799
General and Corporate Expense		(15,008)		(14,156)		(30,155)		(28,199)
Provision for Impairment		(67)		—		(115)		(479)
Gain (Loss) on Disposition of Assets		—		1,101		9,163		1,101
Total Operating Income	$	5,431	$	5,683	$	19,954	$	8,640
Depreciation and Amortization:
Income Properties	$	11,532	$	10,816	$	22,447	$	21,118
Corporate and Other		17		13		33		27
Total Depreciation and Amortization	$	11,549	$	10,829	$	22,480	$	21,145
Capital Expenditures:
Income Properties	$	4,716	$	81,550	$	78,119	$	89,323
Commercial Loans and Investments		455		1,366		7,030		17,427
Corporate and Other		6		226		15		251
Total Capital Expenditures	$	5,177	$	83,142	$	85,164	$	107,001

Identifiable assets of each segment as of June 30, 2024 and December 31, 2023 are as follows (in thousands):

	As of
	June 30, 2024		December 31, 2023
Identifiable Assets:
Income Properties	$	929,795	$	887,345
Management Services		1,403		1,395
Commercial Loans and Investments		50,749		62,099
Real Estate Operations		1,236		2,343
Corporate and Other		26,585		36,486
Total Assets	$	1,009,768	$	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 six months ended June 30, 2024 or 2023.