OPERATING SEGMENTS

6 Months Ended

Jun. 30, 2017

Segment Reporting [Abstract]

OPERATING SEGMENTS

NOTE 8. OPERATING SEGMENTS

Our segments are based on our method of internal reporting, which classifies our operations by property type. Our property types are grouped into commercial, apartments, land and other operating segments. Significant differences among the accounting policies of the operating segments as compared to the Consolidated Financial Statements principally involve the calculation and allocation of administrative and other expenses. Management evaluates the performance of each of the operating segments and allocates resources to them based on their net operating income and cash flow.

Items of income that are not reflected in the segments are interest, other income, gain on debt extinguishment, gain on condemnation award, equity in partnerships, and gains on sale of real estate. Expenses that are not reflected in the segments are provision for losses, advisory fees, net income and incentive fees, general and administrative, non-controlling interests and net loss from discontinued operations before gains on sale of real estate.

The segment labeled as “Other” consists of revenue and operating expenses related to the notes receivable and corporate debt.

Presented below is our reportable segments’ operating income for the three months ended June 30, 2017 and 2016, including segment assets and expenditures (dollars in thousands):

For the Three Months Ended June 30, 2017	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	8,267		$	23,030		$	—		$	5		$	31,302
Property operating expenses		(4,694	)		(10,211	)		(155	)		(150	)		(15,210	)
Depreciation and amortization		(2,348	)		(4,030	)		—			—			(6,378	)
Mortgage and loan interest		(2,121	)		(5,028	)		(310	)		(8,324	)		(15,783	)
Interest income		—			—			—			3,709			3,709
Loss  on land sales		—			—			(476	)		—			(476	)
Segment operating income (loss)	$	(896	)	$	3,761		$	(941	)	$	(4,760	)	$	(2,836	)
Balance Sheet Data as of June 30, 2017
Capital expenditures	$	555		$	—		$	186		$	—		$	741
Real estate assets	$	146,621		$	656,455		$	117,753		$	—		$	920,829
Property Sales
Sales price	$	—		$	—		$	507		$	—		$	507
Cost of sale		—			—			(983	)		—			(983	)
Gain on sale	$	—		$	—		$	(476	)	$	—		$	(476	)

For the Three Months Ended June 30, 2016	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	8,664		$	21,856		$	—		$	1		$	30,521
Property operating expenses		(4,595	)		(10,168	)		(138	)		(18	)		(14,919	)
Depreciation and amortization		(2,227	)		(3,616	)		—			—			(5,843	)
Mortgage and loan interest		(1,696	)		(6,109	)		(419	)		(3,868	)		(12,092	)
Interest income		—			—			—			3,289			3,289
Gain on sale of income producing properties		6			5,162			—			—			5,168
Gain on land sales		—			—			1,719			—			1,719
Segment operating income (loss)	$	152		$	7,125		$	1,162		$	(596	)	$	7,843
Balance Sheet Data as of June 30, 2016
Capital expenditures	$	1,562		$	(146	)	$	1,570		$	—		$	2,986
Real estate assets	$	149,536		$	606,238		$	135,760		$	—		$	891,534
Property Sales
Sales price	$	—		$	8,100		$	3,154		$	—		$	11,254
Cost of sale		—			(2,932	)		(1,435	)		—			(4,367	)
Gain on sale	$	—		$	5,168		$	1,719		$	—		$	6,887

The table below reflects the reconciliation of segment information to the corresponding amounts in the Consolidated Statements of Operations for the three months ended June 30, 2017 and 2016 (dollars in thousands):

	For the Three Months Ended June 30,
	2017			2016
Segment operating income (loss)	$	(2,836	)	$	7,843
Other non-segment items of income (expense)
General and administrative		(1,295	)		(729	)
Net income fee to related party		(76	)		(54	)
Advisory fee to related party		(2,501	)		(2,331	)
Other income		(3,529	)		27
Loss from unconsolidated joint ventures and investees		(10	)		—
Net income (loss) from continuing operations	$	(10,247	)	$	4,756

Presented below is our reportable segments’ operating income for the six months ended June 30, 2017 and 2016, including capital expenditures and segment assets (dollars in thousands):

For the Six Months Ended June 30, 2017	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	17,138		$	45,691		$	—		$	8		$	62,837
Property operating expenses		(9,377	)		(20,956	)		(314	)		(452	)		(31,099	)
Depreciation and amortization		(4,604	)		(8,077	)		—			—			(12,681	)
Mortgage and loan interest		(3,727	)		(11,787	)		(860	)		(14,599	)		(30,973	)
Interest income		—			—			—			7,130			7,130
Gain on land sales		—			—			(31	)		—			(31	)
Segment operating income (loss)	$	(570	)	$	4,871		$	(1,205	)	$	(7,913	)	$	(4,817	)
Balance Sheet as of June 30, 2017
Capital expenditures	$	1,898					$	585		$	—		$	2,483
Real estate assets	$	146,621		$	656,455		$	117,753		$	—		$	920,829
Property Sales
Sales price	$	—		$	—		$	1,596		$	—		$	1,596
Cost of sale		—			—			(1,627	)		—			(1,627	)
Gain (loss) on sale	$	—		$	—		$	(31	)	$	—		$	(31	)

For the Six Months Ended June 30, 2016	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	16,252		$	43,170		$	—		$	2		$	59,424
Property operating expenses		(9,452	)		(19,562	)		(870	)		2			(29,882	)
Depreciation and amortization		(4,500	)		(7,151	)		—			—			(11,651	)
Mortgage and loan interest		(3,647	)		(12,265	)		(915	)		(8,431	)		(25,258	)
Interest income		—			—			—			7,136			7,136
Gain on sale of income-producing properties		6			4,919			—			—			4,925
Gain on land sales		—			—			3,370			—			3,370
Segment operating income (loss)	$	(1,341	)	$	9,111		$	1,585		$	(1,291	)	$	8,064
Balance Sheet as of June 30, 2016
Capital expenditures	$	1,656		$	(146	)	$	1,497		$	—		$	3,007
Real estate assets	$	149,536		$	606,238		$	135,760		$	—		$	891,534
Property Sales
Sales price	$	1,500		$	8,100		$	7,334		$	—		$	16,934
Cost of sale		(1,743	)		(2,932	)		(3,964	)		—			(8,639	)
Gain on sale	$	(243	)	$	5,168		$	3,370		$	—		$	8,295

The table below reflects the reconciliation of segment information to the corresponding amounts in the Consolidated Statements of Operations for the six months ended June 30, 2017 and 2016 (dollars in thousands):

	Six Months Ended June 30,
	2017			2016
Segment operating income (loss)	$	(4,817	)	$	8,064
Other non-segment items of income (expense)
General and administrative		(3,075	)		(2,338	)
Net income fee to related party		(136	)		(126	)
Advisory fee to related party		(4,806	)		(4,702	)
Other income		(2,410	)		294
Loss from unconsolidated joint ventures and investees		(18	)		(2	)
Income tax benefit		—			1
Net income (loss) from continuing operations	$	(15,262	)	$	1,191

The table below reflects a reconciliation of the segment information to the corresponding amounts in the Consolidated Balance Sheets (dollars in thousands):

	As of June 30,
	2017		2016
Segment assets	$	920,829	$	891,534
Investments in real estate partnerships		2,428		2,460
Notes and interest receivable		78,868		74,177
Other assets		247,966		165,189
Total assets	$	1,250,091	$	1,133,360