BUSINESS SEGMENT DATA

12 Months Ended

Dec. 31, 2024

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, the Portfolio Management Agreement and the Subsurface Management Agreement, as described further in Note 5, “Management Services Business”

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 88% and 90% of our identifiable assets as of December 31, 2024 and 2023, respectively, and 88.8%, 88.6%, and 83.6%, of our consolidated revenues for the years ended December 31, 2024, 2023, and 2022, respectively. Our management fee income consists primarily of the management fees earned for the management of PINE during the three years ended December 31, 2024, 2023, and 2022, as well as from the Portfolio Management Agreement during the years ended December 31, 2024 and 2023 and the Subsurface Management Agreement during the year ended December 31, 2024. As of December 31, 2024, our commercial loan and investment portfolio consisted of five commercial loan investments and two preferred equity investments which are classified as commercial loan investments. Our real estate operations consists 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 year ended December 31, 2024 is as follows (in thousands):

	For the Year Ended December 31, 2024
	Income Properties		Management Services		Commercial Loans and Investments		Real Estate Operations		Total
Revenues:
Income Properties	$	110,591	$	—	$	—	$	—	$	110,591
Management Fee Income		—		4,590		—		—		4,590
Interest Income From Commercial Loans and Investments		—		—		7,357		—		7,357
Real Estate Operations		—		—		—		1,981		1,981
Total Revenues for Reportable Segments	$	110,591	$	4,590	$	7,357	$	1,981	$	124,519
Operating Expenses:
Income Properties	$	(31,785)	$	—	$	—	$	—	$	(31,785)
Real Estate Operations		—		—		—		(1,437)		(1,437)
Total Revenues Less Direct Costs of Revenues	$	78,806	$	4,590	$	7,357	$	544	$	91,297
Provision for Impairment		—		—		(676)		—		(676)
Depreciation and Amortization - Real Estate		(64,981)		—		—		—		(64,981)
Total Revenues Less Operating Expenses for Reportable Segments	$	13,825	$	4,590	$	6,681	$	544	$	25,640
Gain on Disposition of Assets		3,763		—		—		4,545		8,308
Net Income From Operations for Reportable Segments	$	17,588	$	4,590	$	6,681	$	5,089	$	33,948
Reconciliation to Consolidated Net Loss
General and Administrative Expenses										(16,269)
Investment and Other Income										2,606
Interest Expense										(22,521)
Depreciation and Amortization - Other										(68)
Net Loss Before Income Tax Benefit									$	(2,304)
Income Tax Benefit										339
Net Loss Attributable to the Company									$	(1,965)

Information about the Company’s operations in different segments for the year ended December 31, 2023 is as follows (in thousands):

	For the Year Ended December 31, 2023
	Income Properties		Management Services		Commercial Loans and Investments		Real Estate Operations		Total
Revenues:
Income Properties	$	96,663	$	—	$	—	$	—	$	96,663
Management Fee Income		—		4,388		—		—		4,388
Interest Income From Commercial Loans and Investments		—		—		4,084		—		4,084
Real Estate Operations		—		—		—		3,984		3,984
Total Revenues for Reportable Segments	$	96,663	$	4,388	$	4,084	$	3,984	$	109,119
Operating Expenses:
Income Properties	$	(28,455)	$	—	$	—	$	—	$	(28,455)
Real Estate Operations		—		—		—		(1,723)		(1,723)
Total Revenues Less Direct Costs of Revenues	$	68,208	$	4,388	$	4,084	$	2,261	$	78,941
Provision for Impairment		(929)		—		(627)		—		(1,556)
Depreciation and Amortization - Real Estate		(44,107)		—		—		—		(44,107)
Total Revenues Less Operating Expenses for Reportable Segments	$	23,172	$	4,388	$	3,457	$	2,261	$	33,278
Gain on Disposition of Assets		7,543		—		—		—		7,543
Net Income From Operations for Reportable Segments	$	30,715	$	4,388	$	3,457	$	2,261	$	40,821
Reconciliation to Consolidated Net Income
General and Administrative Expenses										(14,249)
Investment and Other Income										1,987
Interest Expense										(22,359)
Depreciation and Amortization - Other										(66)
Net Income Before Income Tax Expense									$	6,134
Income Tax Expense										(604)
Net Income Attributable to the Company									$	5,530

Information about the Company’s operations in different segments for the year ended December 31, 2022 is as follows (in thousands):

	For the Year Ended December 31, 2022
	Income Properties		Management Services		Commercial Loans and Investments		Real Estate Operations		Total
Revenues:
Income Properties	$	68,857	$	—	$	—	$	—	$	68,857
Management Fee Income		—		3,829		—		—		3,829
Interest Income From Commercial Loans and Investments		—		—		4,172		—		4,172
Real Estate Operations		—		—		—		5,462		5,462
Total Revenues for Reportable Segments	$	68,857	$	3,829	$	4,172	$	5,462	$	82,320
Operating Expenses:
Income Properties	$	(20,364)	$	—	$	—	$	—	$	(20,364)
Real Estate Operations		—		—		—		(2,493)		(2,493)
Total Revenues Less Direct Costs of Revenues	$	48,493	$	3,829	$	4,172	$	2,969	$	59,463
Provision for Impairment		—		—		—		—		—
Depreciation and Amortization - Real Estate		(28,799)		—		—		—		(28,799)
Total Revenues Less Operating Expenses for Reportable Segments	$	19,694	$	3,829	$	4,172	$	2,969	$	30,664
Gain (Loss) on Disposition of Assets		3,869		—		802		(11,713)		(7,042)
Net Income From Operations for Reportable Segments	$	23,563	$	3,829	$	4,974	$	(8,744)	$	23,622
Reconciliation to Consolidated Net Income
General and Administrative Expenses										(12,899)
Investment and Other Income										776
Interest Expense										(11,115)
Depreciation and Amortization - Other										(56)
Net Income Before Income Tax Benefit									$	328
Income Tax Benefit										2,830
Net Income Attributable to the Company									$	3,158

Capital expenditures of each segment as of December 31, 2024, 2023, and 2022 are as follows (in thousands):

	For the Year Ended
	December 31, 2024		December 31, 2023		December 31, 2022
Capital Expenditures:
Income Properties	$	241,859	$	102,688	$	331,754
Commercial Loans and Investments		63,930		32,869		53,369
Corporate and Other		39		261		42
Total Capital Expenditures	$	305,828	$	135,818	$	385,165

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

	As of
	December 31, 2024		December 31, 2023
Identifiable Assets:
Income Properties	$	1,039,466	$	887,345
Management Services		1,481		1,395
Commercial Loans and Investments		105,763		62,099
Real Estate Operations		611		2,343
Corporate and Other		34,323		36,486
Total Assets	$	1,181,644	$	989,668

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 certain real estate operations receivables as well as 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 years ended December 31, 2024, 2023 or 2022.