Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of financial measures for each segment based on which performance is evaluated

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 and Development			Corporate/Other⁽¹⁾			Company Total
Three Months Ended March 31, 2018:
Operating lease income	$	—		$	29,727		$	15,817		$	255		$	—		$	45,799
Interest income	26,697			—			—			—			—			26,697
Other income	384			1,049			12,144			471			1,272			15,320
Land development revenue	—			—			—			276,429			—			276,429
Earnings (losses) from equity method investments	—			3,556			(1,275		)	1,545			(494		)	3,332
Income from sales of real estate	—			414			16,634			—			—			17,048
Total revenue and other earnings	27,081			34,746			43,320			278,700			778			384,625
Real estate expense	—			(3,948		)	(21,626		)	(10,606		)	—			(36,180		)
Land development cost of sales	—			—			—			(223,407		)	—			(223,407		)
Other expense	(400		)	—			—			—			(766		)	(1,166		)
Allocated interest expense	(11,765		)	(14,201		)	(5,528		)	(6,473		)	(7,215		)	(45,182		)
Allocated general and administrative⁽²⁾	(3,969		)	(4,586		)	(2,043		)	(3,805		)	(5,320		)	(19,723		)
Segment profit (loss)⁽³⁾	$	10,947		$	12,011		$	14,123		$	34,409		$	(12,523	)	$	58,967
Other significant items:
Recovery of loan losses	$	(855	)	$	—		$	—		$	—		$	—		$	(855	)
Impairment of assets	—			—			4,100			—			—			4,100
Depreciation and amortization	—			6,309			3,926			515			360			11,110
Capitalized expenditures	—			478			7,700			31,447			—			39,625

Three Months Ended March 31, 2017:
Operating lease income	$	—		$	31,252		$	15,989		$	106		$	—		$	47,347
Interest income	29,058			—			—			—			—			29,058
Other income	76			506			10,355			386			541			11,864
Land development revenue	—			—			—			20,050			—			20,050
Earnings from equity method investments	—			981			632			3,842			247			5,702
Income from discontinued operations	—			4,766			—			—			—			4,766
Income from sales of real estate	—			6,212			1,898			—			—			8,110
Total revenue and other earnings	29,134			43,717			28,874			24,384			788			126,897
Real estate expense	—			(4,575		)	(21,518		)	(9,497		)	—			(35,590		)
Land development cost of sales	—			—			—			(15,910		)	—			(15,910		)
Other expense	(605		)	—			—			—			(1,264		)	(1,869		)
Allocated interest expense	(11,888		)	(15,735		)	(5,606		)	(8,118		)	(9,798		)	(51,145		)
Allocated general and administrative⁽²⁾	(3,596		)	(4,642		)	(1,755		)	(3,926		)	(5,373		)	(19,292		)
Segment profit (loss)⁽³⁾	$	13,045		$	18,765		$	(5	)	$	(13,067	)	$	(15,647	)	$	3,091



	Real Estate Finance			Net Lease		Operating Properties		Land and Development		Corporate/Other⁽¹⁾		Company Total
Other significant items:
Recovery of loan losses	$	(4,928	)	$	—	$	—	$	—	$	—	$	(4,928	)
Impairment of assets	—			—		4,413		—		—		4,413
Depreciation and amortization	—			7,641		4,039		270		330		12,280
Capitalized expenditures	—			771		8,210		26,592		—		35,573

As of March 31, 2018
Real estate
Real estate, net	$	—		$	808,438	$	493,705	$	—	$	—	$	1,302,143
Real estate available and held for sale	—			—		41,857		—		—		41,857
Total real estate	—			808,438		535,562		—		—		1,344,000
Land and development, net	—			—		—		681,410		—		681,410
Loans receivable and other lending investments, net	1,400,474			—		—		—		—		1,400,474
Other investments	—			279,094		55,929		75,596		12,234		422,853
Total portfolio assets	$	1,400,474		$	1,087,532	$	591,491	$	757,006	$	12,234	3,848,737
Cash and other assets												601,322
Total assets												$	4,450,059

As of December 31, 2017
Real estate
Real estate, net	$	—		$	815,783	$	466,248	$	—	$	—	$	1,282,031
Real estate available and held for sale	—			—		68,588		—		—		68,588
Total real estate	—			815,783		534,836		—		—		1,350,619
Land and development, net	—			—		—		860,311		—		860,311
Loans receivable and other lending investments, net	1,300,655			—		—		—		—		1,300,655
Other investments	—			205,007		38,761		63,855		13,618		321,241
Total portfolio assets	$	1,300,655		$	1,020,790	$	573,597	$	924,166	$	13,618	3,832,826
Cash and other assets												898,252
Total assets												$	4,731,078

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(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 $9.1 million and $5.9 million for the three months ended March 31, 2018 and 2017, respectively.


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



	For the Three Months Ended March 31,
	2018			2017
Segment profit	$	58,967		$	3,091
Add: Recovery of loan losses	855			4,928
Less: Impairment of assets	(4,100		)	(4,413		)
Less: Stock-based compensation expense	(9,091		)	(5,881		)
Less: Depreciation and amortization	(11,110		)	(12,280		)
Less: Income tax expense	(121		)	(607		)
Less: Loss on early extinguishment of debt, net	(372		)	(210		)
Net income (loss)	$	35,028		$	(15,372	)

Reconciliation of segment profit to income (loss)

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



	For the Three Months Ended March 31,
	2018			2017
Segment profit	$	58,967		$	3,091
Add: Recovery of loan losses	855			4,928
Less: Impairment of assets	(4,100		)	(4,413		)
Less: Stock-based compensation expense	(9,091		)	(5,881		)
Less: Depreciation and amortization	(11,110		)	(12,280		)
Less: Income tax expense	(121		)	(607		)
Less: Loss on early extinguishment of debt, net	(372		)	(210		)
Net income (loss)	$	35,028		$	(15,372	)