Segment Reporting

The Company has determined that it has four reportable segments based on how management reviews and manages its business. These reportable segments include: Real Estate Finance, Net Lease, Operating Properties and Land & Development. The Real Estate Finance segment includes all of the Company's activities related to senior and mezzanine real estate loans and real estate related securities. The Net Lease segment includes all of the Company's activities related to the ownership and leasing of corporate facilities. The Operating Properties segment includes all of the Company's activities and operations related to its commercial and residential properties. The Land & Development segment includes the Company's activities related to its developable land portfolio.

The Company evaluates performance based on the following financial measures for each segment. The Company's segment information is as follows ($ in thousands):



	Real Estate Finance			Net Lease			Operating Properties			Land & Development			Corporate/Other⁽¹⁾			Company Total
Three Months Ended September 30, 2015:
Operating lease income	$	—		$	37,379		$	18,125		$	195		$	—		$	55,699
Interest income	33,599			—			—			—			—			33,599
Other income	7,988			8			7,602			376			914			16,888
Land development revenue	—			—			—			14,301			—			14,301
Earnings (loss) from equity method investments	—			971			469			6,647			2,485			10,572
Income from sales of real estate	—			6,931			19,580			—			—			26,511
Total revenue and other earnings	41,587			45,289			45,776			21,519			3,399			157,570
Real estate expense	—			(5,473		)	(22,448		)	(7,233		)	—			(35,154		)
Land development cost of sales	—			—			—			(10,686		)	—			(10,686		)
Other expense	(2,039		)	—			—			—			(1,295		)	(3,334		)
Allocated interest expense	(14,030		)	(16,358		)	(6,724		)	(8,265		)	(11,503		)	(56,880		)
Allocated general and administrative⁽²⁾	(3,527		)	(4,209		)	(1,841		)	(3,233		)	(5,490		)	(18,300		)
Segment profit (loss)⁽³⁾	$	21,991		$	19,249		$	14,763		$	(7,898	)	$	(14,889	)	$	33,216
Other significant non-cash items:
Provision for (recovery of) loan losses	$	7,500		$	—		$	—		$	—		$	—		$	7,500
Impairment of assets	—			—			3,916			—			—			3,916
Depreciation and amortization	—			9,522			5,610			380			275			15,787
Capitalized expenditures	—			1,439			26,358			18,043			—			45,840

Three Months Ended September 30, 2014:
Operating lease income	$	—		$	36,947		$	23,513		$	231		$	—		$	60,691
Interest income	31,098			—			—			—			—			31,098
Other income	885			3,573			11,795			496			1,658			18,407
Land development revenue	—			—			—			3,290			—			3,290
Earnings (loss) from equity method investments	—			349			177			123			48,929			49,578
Income from sales of real estate	—			—			27,791			—			—			27,791
Total revenue and other earnings	31,983			40,869			63,276			4,140			50,587			190,855
Real estate expense	—			(6,059		)	(28,795		)	(6,431		)	—			(41,285		)
Land development cost of sales	—			—			—			(2,763		)	—			(2,763		)
Other expense	(283		)	—			—			—			568			285
Allocated interest expense	(14,187		)	(18,156		)	(10,169		)	(7,490		)	(5,422		)	(55,424		)
Allocated general and administrative⁽²⁾	(3,492		)	(4,610		)	(2,699		)	(3,566		)	(5,737		)	(20,104		)
Segment profit (loss)⁽³⁾	$	14,021		$	12,044		$	21,613		$	(16,110	)	$	39,996		$	71,564
Other significant non-cash items:
Provision for (recovery of) loan losses	$	(673	)	$	—		$	—		$	—		$	—		$	(673	)
Impairment of assets	—			231			4,231			11,000			—			15,462
Depreciation and amortization	—			9,522			7,606			320			274			17,722
Capitalized expenditures	—			595			20,555			25,655			—			46,805



	Real Estate Finance			Net Lease			Operating Properties			Land & Development			Corporate/Other⁽¹⁾			Company Total
Nine Months Ended September 30, 2015:
Operating lease income	$	—		$	111,500		$	58,855		$	635		$	—		$	170,990
Interest income	102,224			—			—			—			—			102,224
Other income	8,834			133			27,069			1,163			3,015			40,214
Land development revenue	—			—			—			29,101			—			29,101
Earnings (loss) from equity method investments	—			4,270			1,302			13,719			6,613			25,904
Income from sales of real estate	—			15,584			50,437			—			—			66,021
Total revenue and other earnings	111,058			131,487			137,663			44,618			9,628			434,454
Real estate expense	—			(16,266		)	(73,812		)	(21,065		)	—			(111,143		)
Land development cost of sales	—			—			—			(22,828		)	—			(22,828		)
Other expense	(2,259		)	—			—			—			(4,086		)	(6,345		)
Allocated interest expense	(42,828		)	(50,126		)	(21,449		)	(23,685		)	(29,248		)	(167,336		)
Allocated general and administrative⁽²⁾	(9,750		)	(11,646		)	(5,298		)	(8,759		)	(17,001		)	(52,454		)
Segment profit (loss)⁽³⁾	$	56,221		$	53,449		$	37,104		$	(31,719	)	$	(40,707	)	$	74,348
Other significant non-cash items:
Provision for (recovery of) loan losses	$	30,944		$	—		$	—		$	—		$	—		$	30,944
Impairment of assets	—			—			5,590			—			—			5,590
Depreciation and amortization	—			28,380			19,400			1,160			864			49,804
Capitalized expenditures	—			3,553			58,201			67,888			—			129,642

Nine Months Ended September 30, 2014
Operating lease income	$	—		$	113,502		$	69,631		$	633		$	—		$	183,766
Interest income	94,139			—			—			—			—			94,139
Other income	20,327			4,306			32,335			865			4,420			62,253
Land development revenue	—			—			—			11,920			—			11,920
Earnings (loss) from equity method investments	—			1,497			1,125			(286		)	74,512			76,848
Income from sales of real estate	—			—			61,465			—			—			61,465
Total revenue and other earnings	114,466			119,305			164,556			13,132			78,932			490,391
Real estate expense	—			(17,253		)	(86,338		)	(20,861		)	—			(124,452		)
Land development cost of sales	—			—			—			(10,028		)	—			(10,028		)
Other expense	(1,016		)	—			—			—			(3,610		)	(4,626		)
Allocated interest expense	(45,497		)	(54,775		)	(30,657		)	(21,943		)	(16,538		)	(169,410		)
Allocated general and administrative⁽²⁾	(11,026		)	(13,592		)	(7,966		)	(10,839		)	(17,821		)	(61,244		)
Segment profit (loss)⁽³⁾	$	56,927		$	33,685		$	39,595		$	(50,539	)	$	40,963		$	120,631
Other significant non-cash items:
Provision for (recovery of) loan losses	$	(6,865	)	$	—		$	—		$	—		$	—		$	(6,865	)
Impairment of assets	—			3,210			8,131			10,400			—			21,741
Depreciation and amortization	—			29,332			23,838			1,114			873			55,157
Capitalized expenditures	—			169			46,973			58,711			—			105,853



	Real Estate Finance		Net Lease		Operating Properties		Land & Development		Corporate/Other⁽¹⁾		Company Total

As of September 30, 2015
Real estate
Real estate, net	$	—	$	1,150,797	$	474,727	$	865,014	$	—	$	2,490,538
Real estate available and held for sale	—		1,953		136,945		157,693		—		296,591
Total real estate	—		1,152,750		611,672		1,022,707		—		2,787,129
Loans receivable and other lending investments, net	1,585,399		—		—		—		—		1,585,399
Other investments	—		68,719		11,472		120,269		90,059		290,519
Total portfolio assets	$	1,585,399	$	1,221,469	$	623,144	$	1,142,976	$	90,059	4,663,047
Cash and other assets											979,748
Total assets											$	5,642,795

As of December 31, 2014
Real estate
Real estate, net	$	—	$	1,188,160	$	628,271	$	860,283	$	—	$	2,676,714
Real estate available and held for sale	—		4,521		162,782		118,679		—		285,982
Total real estate	—		1,192,681		791,053		978,962		—		2,962,696
Loans receivable and other lending investments, net	1,377,843		—		—		—		—		1,377,843
Other investments	—		125,360		13,220		106,155		109,384		354,119
Total portfolio assets	$	1,377,843	$	1,318,041	$	804,273	$	1,085,117	$	109,384	4,694,658
Cash and other assets											768,475
Total assets											$	5,463,133

_______________________________________________________________________________


(1)	Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company's joint venture investments and strategic investments that are not included in the other reportable segments above.


(2)	General and administrative excludes stock-based compensation expense of $2.9 million and $10.1 million for the three and nine months ended September 30, 2015 and $3.3 million and $8.5 million for the three and nine months ended September 30, 2014, respectively.


(3)	The following is a reconciliation of segment profit to net income (loss) ($ in thousands):



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2015			2014			2015			2014
Segment profit	$	33,216		$	71,564		$	74,348		$	120,631
Less: (Provision for) recovery of loan losses	(7,500		)	673			(30,944		)	6,865
Less: Impairment of assets	(3,916		)	(15,462		)	(5,590		)	(21,741		)
Less: Stock-based compensation expense	(2,881		)	(3,273		)	(10,066		)	(8,544		)
Less: Depreciation and amortization	(15,787		)	(17,722		)	(49,804		)	(55,157		)
Less: Income tax (expense) benefit	2,893			(103		)	(3,796		)	619
Less: Loss on early extinguishment of debt, net	(67		)	(186		)	(279		)	(24,953		)
Net income (loss)	$	5,958		$	35,491		$	(26,131	)	$	17,720