OPERATING SEGMENTS

9 Months Ended

Sep. 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 other income and equity in partnerships. Expenses that are not reflected in the segments are provision for losses, advisory and net income fees, general and administrative and non-controlling interests.

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 September 30, 2017 and 2016, including capital expenditures and segment assets (dollars in thousands):

For the Three Months Ended September 30, 2017	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	8,170		$	23,231		$	86		$	4		$	31,491
Property operating expenses		(4,252	)		(10,659	)		(115	)		(131	)		(15,157	)
Depreciation and amortization		(2,298	)		(4,028	)		—			—			(6,326	)
Mortgage and loan interest		(1,902	)		(5,168	)		(387	)		(6,788	)		(14,245	)
Interest income		—			—			—			3,175			3,175
Recognition of deferred gain on sale of income-producing properties		—			9,841			—			—			9,841
Gain  on land sales		—			—			530			—			530
Segment operating income (loss)	$	(282	)	$	13,217		$	114		$	(3,740	)	$	9,309
Balance Sheet Data as of September 30, 2017
Capital expenditures	$	689		$	543		$	55		$	—		$	1,287
Real estate assets	$	145,321		$	665,972		$	117,642		$	—		$	928,935
Property Sales
Sales price	$	—		$	—		$	850		$	—		$	850
Cost of sale		—			—			(320	)		—			(320	)
Recognized prior deferred gain		—			9,841			—			—			9,841
Gain on sale	$	—		$	9,841		$	530		$	—		$	10,371

For the Three Months Ended September 30, 2016	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	7,368		$	22,408		$	—		$	—		$	29,776
Property operating expenses		(4,500	)		(10,696	)		(209	)		(8	)		(15,413	)
Depreciation and amortization		(2,207	)		(3,807	)		—			—			(6,014	)
Mortgage and loan interest		(1,700	)		(6,424	)		(420	)		(5,024	)		(13,568	)
Interest income		—			—			—			4,251			4,251
Gain on land sales		—			—			555			—			555
Segment operating income (loss)	$	(1,039	)	$	1,481		$	(74	)	$	(781	)	$	(413	)
Balance Sheet Data as of September 30, 2016
Capital expenditures	$	3,700		$	(146	)	$	1,873		$	—		$	5,427
Real estate assets	$	149,705		$	615,822		$	134,321		$	—		$	899,848
Property Sales
Sales price	$	—		$	—		$	805		$	—		$	805
Cost of sale		—			—			(250	)		—			(250	)
Gain on sale	$	—		$	—		$	555		$	—		$	555

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

	Three Months Ended September 30,
	2017			2016
Segment operating income (loss)	$	9,309		$	(413	)
Other non-segment items of income (expense):
General and administrative		(1,594	)		(1,541	)
Net income fee to related party		(53	)		(67	)
Advisory fee to related party		(2,595	)		(2,394	)
Other income		2,096			8
Earnings from unconsolidated joint ventures and investees		7			—
Income tax expense		—			(25	)
Net income (loss) from continuing operations	$	7,170		$	(4,432	)

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

For the Nine Months Ended September 30, 2017	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	25,308		$	68,922		$	87		$	11		$	94,328
Property operating expenses		(13,629	)		(31,615	)		(429	)		(583	)		(46,256	)
Depreciation and amortization		(6,903	)		(12,105	)		—			—			(19,008	)
Mortgage and loan interest		(5,629	)		(16,955	)		(1,248	)		(21,386	)		(45,218	)
Interest income		—			—			—			10,305			10,305
Recognition of deferred gain on sale of income-producing properties		—			9,841			—			—			9,841
Gain on land sales		—			—			500			—			500
Segment operating income (loss)	$	(853	)	$	18,088		$	(1,090	)	$	(11,653	)	$	4,492
Balance Sheet as of September 30, 2017
Capital expenditures	$	2,586		$	543		$	641		$	—		$	3,770
Real estate assets	$	145,321		$	665,972		$	117,642		$	—		$	928,935
Property Sales
Sales price	$	—		$	—		$	2,446		$	—		$	2,446
Cost of sale		—			—			(1,946	)		—			(1,946	)
Recognized prior deferred gain		—			9,841			—			—			9,841
Gain on sale	$	—		$	9,841		$	500		$	—		$	10,341

For the Nine Months Ended September 30, 2016	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	23,620		$	65,578		$	—		$	2		$	89,200
Property operating expenses		(13,953	)		(30,258	)		(1,079	)		(5	)		(45,295	)
Depreciation and amortization		(6,707	)		(10,958	)		—			—			(17,665	)
Mortgage and loan interest		(5,347	)		(18,689	)		(1,335	)		(13,455	)		(38,826	)
Interest income		—			—			—			11,386			11,386
Gain on sale of income producing properties		(243	)		5,168			—			—			4,925
Gain on land sales		—			—			3,925			—			3,925
Segment operating income (loss)	$	(2,630	)	$	10,841		$	1,511		$	(2,072	)	$	7,650
Balance Sheet as of September 30, 2016
Capital expenditures	$	3,700		$	(146	)	$	1,873		$	—		$	5,427
Real estate assets	$	149,705		$	615,822		$	134,321		$	—		$	899,848
Property Sales
Sales price	$	1,500		$	8,100		$	8,139		$	—		$	17,739
Cost of sale		(1,743	)		(2,932	)		(4,214	)		—			(8,889	)
Gain on sale	$	(243	)	$	5,168		$	3,925		$	—		$	8,850

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

	Nine Months Ended September 30,
	2017			2016
Segment operating income	$	4,492		$	7,650
Other non-segment items of income (expense)
General and administrative		(4,669	)		(4,754	)
Net income fee to related party		(189	)		(193	)
Advisory fee to related party		(7,402	)		(7,096	)
Other income		(312	)		1,178
Loss from unconsolidated joint ventures and investees		(11	)		(2	)
Income tax expense		—			(24	)
Net loss from continuing operations	$	(8,091	)	$	(3,241	)

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

	As of September 30,
	2017		2016
Segment assets	$	928,935	$	899,848
Investments in real estate partnerships		2,435		2,469
Notes and interest receivable		62,698		72,704
Other assets		256,659		176,527
Total assets	$	1,250,727	$	1,151,548