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): | | | | | | | | | | | | | | | | | | | | | Net | | Real Estate | | Operating | | Land and | | Corporate/ | | Company | | | Lease | | Finance | | Properties | | Development | | Other(1) | | Total | Three Months Ended June 30, 2021 | | | | | | | | | | | | | | | | | | | Operating lease income | | $ | 40,752 | | $ | — | | $ | 4,703 | | $ | 89 | | $ | — | | $ | 45,544 | Interest income | | | 1,188 | | | 7,785 | | | — | | | — | | | — | | | 8,973 | Interest income from sales-type leases | | | 8,689 | | | — | | | — | | | — | | | — | | | 8,689 | Other income | | | 4,690 | | | 52 | | | 3,953 | | | 1,315 | | | 54 | | | 10,064 | Land development revenue | | | — | | | — | | | — | | | 32,318 | | | — | | | 32,318 | Earnings (losses) from equity method investments | | | 11,302 | | | 755 | | | (2,935) | | | 1,474 | | | 2,101 | | | 12,697 | Income from sales of real estate | | | 2,114 | | | — | | | 96 | | | — | | | — | | | 2,210 | Total revenue and other earnings | | | 68,735 | | | 8,592 | | | 5,817 | | | 35,196 | | | 2,155 | | | 120,495 | Real estate expense | | | (6,984) | | | — | | | (6,256) | | | (5,049) | | | — | | | (18,289) | Land development cost of sales | | | — | | | — | | | — | | | (30,803) | | | — | | | (30,803) | Other expense | | | — | | | (87) | | | — | | | — | | | (124) | | | (211) | Allocated interest expense | | | (25,342) | | | (3,828) | | | (2,030) | | | (3,864) | | | (4,353) | | | (39,417) | Allocated general and administrative(2) | | | (6,120) | | | (1,242) | | | (664) | | | (2,367) | | | (5,210) | | | (15,603) | Segment profit (loss)(3) | | $ | 30,289 | | $ | 3,435 | | $ | (3,133) | | $ | (6,887) | | $ | (7,532) | | $ | 16,172 | Other significant items: | | | | | | | | | | | | | | | | | | | Recovery of loan losses | | $ | (105) | | $ | (2,158) | | $ | — | | $ | — | | $ | — | | $ | (2,263) | Recovery of losses on net investment in leases | | | (265) | | | — | | | — | | | — | | | — | | | (265) | Depreciation and amortization | | | 13,088 | | | — | | | 1,221 | | | 228 | | | 123 | | | 14,660 | Capitalized expenditures | | | 63 | | | — | | | 432 | | | 4,571 | | | — | | | 5,066 | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, 2020 | | | | | | | | | | | | | | | | | | | Operating lease income | | $ | 41,500 | | $ | — | | $ | 5,242 | | $ | 70 | | $ | — | | $ | 46,812 |
Interest income | | | 860 | | | 14,579 | | | — | | | — | | | — | | | 15,439 | Interest income from sales-type leases | | | 8,295 | | | — | | | — | | | — | | | — | | | 8,295 | Other income | | | 4,621 | | | 3,839 | | | 492 | | | 1,103 | | | 237 | | | 10,292 | Land development revenue | | | — | | | — | | | — | | | 15,577 | | | — | | | 15,577 | Earnings (losses) from equity method investments | | | 8,800 | | | — | | | (4,941) | | | 48 | | | (1,321) | | | 2,586 | Income from sales of real estate | | | — | | | — | | | 62 | | | — | | | — | | | 62 | Total revenue and other earnings | | | 64,076 | | | 18,418 | | | 855 | | | 16,798 | | | (1,084) | | | 99,063 | Real estate expense | | | (6,134) | | | — | | | (4,509) | | | (3,633) | | | — | | | (14,276) | Land development cost of sales | | | — | | | — | | | — | | | (16,287) | | | — | | | (16,287) | Other expense | | | — | | | (21) | | | — | | | — | | | (182) | | | (203) | Allocated interest expense | | | (24,388) | | | (5,959) | | | (2,183) | | | (4,422) | | | (4,998) | | | (41,950) | Allocated general and administrative(2) | | | (5,177) | | | (1,575) | | | (595) | | | (2,385) | | | (4,522) | | | (14,254) | Segment profit (loss) (3) | | | 28,377 | | $ | 10,863 | | $ | (6,432) | | $ | (9,929) | | $ | (10,786) | | $ | 12,093 | Other significant non-cash items: | | | | | | | | | | | | | | | | | | | Provision for loan losses | | $ | 57 | | $ | 2,010 | | $ | — | | $ | — | | $ | — | | $ | 2,067 | Provision for losses on net investment in leases | | | 534 | | | — | | | — | | | — | | | — | | | 534 | Impairment of assets | | | 328 | | | — | | | 2,983 | | | 1,472 | | | — | | | 4,783 | Depreciation and amortization | | | 12,487 | | | — | | | 1,271 | | | 243 | | | 299 | | | 14,300 | Capitalized expenditures | | | 5,171 | | | — | | | 421 | | | 8,026 | | | — | | | 13,618 |
| | | | | | | | | | | | | | | | | | | | | Net | | Real Estate | | Operating | | Land and | | Corporate/ | | Company | | | Lease | | Finance | | Properties | | Development | | Other(1) | | Total | Six Months Ended June 30, 2021 | | | | | | | | | | | | | | | | | | | Operating lease income | | $ | 83,265 | | $ | — | | $ | 9,540 | | $ | 183 | | $ | — | | $ | 92,988 | Interest income | | | 2,066 | | | 17,557 | | | — | | | — | | | — | | | 19,623 | Interest income from sales-type leases | | | 17,316 | | | — | | | — | | | — | | | — | | | 17,316 | Other income | | | 9,444 | | | 151 | | | 6,291 | | | 2,704 | | | 5,764 | | | 24,354 | Land development revenue | | | — | | | — | | | — | | | 64,567 | | | — | | | 64,567 | Earnings (losses) from equity method investments | | | 23,715 | | | 1,220 | | | (6,682) | | | 4,619 | | | 2,594 | | | 25,466 | Income from sales of real estate | | | 2,114 | | | — | | | 708 | | | — | | | — | | | 2,822 | Total revenue and other earnings | | | 137,920 | | | 18,928 | | | 9,857 | | | 72,073 | | | 8,358 | | | 247,136 | Real estate expense | | | (15,616) | | | — | | | (10,055) | | | (9,512) | | | — | | | (35,183) | Land development cost of sales | | | — | | | — | | | — | | | (60,126) | | | — | | | (60,126) | Other expense | | | — | | | (153) | | | — | | | — | | | (311) | | | (464) | Allocated interest expense | | | (50,421) | | | (8,406) | | | (4,073) | | | (7,802) | | | (8,278) | | | (78,980) | Allocated general and administrative(2) | | | (12,057) | | | (2,701) | | | (1,324) | | | (4,795) | | | (10,657) | | | (31,534) | Segment profit (loss)(3) | | $ | 59,826 | | $ | 7,668 | | $ | (5,595) | | $ | (10,162) | | $ | (10,888) | | $ | 40,849 | Other significant items: | | | | | | | | | | | | | | | | | | | Recovery of loan losses | | $ | (257) | | $ | (5,800) | | $ | — | | $ | — | | $ | — | | $ | (6,057) | Recovery of losses on net investment in leases | | | (1,866) | | | — | | | — | | | — | | | — | | | (1,866) | Impairment of assets | | | 1,528 | | | — | | | 257 | | | — | | | — | | | 1,785 | Depreciation and amortization | | | 26,141 | | | — | | | 3,208 | | | 446 | | | 320 | | | 30,115 | Capitalized expenditures | | | 1,331 | | | — | | | 489 | | | 9,311 | | | — | | | 11,131 | | | | | | | | | | | | | | | | | | | | Six Months Ended June 30, 2020 | | | | | | | | | | | | | | | | | | | Operating lease income | | $ | 82,965 | | $ | — | | $ | 11,015 | | $ | 178 | | $ | — | | $ | 94,158 | Interest income | | | 1,683 | | | 30,972 | | | — | | | — | | | — | | | 32,655 | Interest income from sales-type leases | | | 16,650 | | | — | | | — | | | — | | | — | | | 16,650 | Other income | | | 8,913 | | | 4,145 | | | 3,650 | | | 1,727 | | | 12,225 | | | 30,660 | Land development revenue | | | — | | | — | | | — | | | 95,752 | | | — | | | 95,752 | Earnings (losses) from equity method investments | | | 28,332 | | | — | | | (7,608) | | | 632 | | | (2,158) | | | 19,198 | Income from sales of real estate | | | — | | | — | | | 62 | | | — | | | — | | | 62 | Total revenue and other earnings | | | 138,543 | | | 35,117 | | | 7,119 | | | 98,289 | | | 10,067 | | | 289,135 | Real estate expense | | | (12,361) | | | — | | | (12,173) | | | (12,240) | | | — | | | (36,774) | Land development cost of sales | | | — | | | — | | | — | | | (93,346) | | | — | | | (93,346) | Other expense | | | — | | | (41) | | | — | | | — | | | (236) | | | (277) | Allocated interest expense | | | (48,866) | | | (12,158) | | | (4,442) | | | (8,992) | | | (10,883) | | | (85,341) | Allocated general and administrative(2) | | | (12,166) | | | (3,672) | | | (1,384) | | | (5,204) | | | (9,830) | | | (32,256) | Segment profit (loss)(3) | | $ | 65,150 | | $ | 19,246 | | $ | (10,880) | | $ | (21,493) | | $ | (10,882) | | $ | 41,141 | Other significant items: | | | | | | | | | | | | | | | | | | | Provision for loan losses | | $ | — | | $ | 6,070 | | $ | — | | $ | — | | $ | — | | $ | 6,070 | Provision for losses on net investment in leases | | | 1,826 | | | — | | | — | | | — | | | — | | | 1,826 | Impairment of assets | | | 2,036 | | | — | | | 2,983 | | | 1,472 | | | — | | | 6,491 |
Depreciation and amortization | | | 25,143 | | | — | | | 2,556 | | | 486 | | | 601 | | | 28,786 | Capitalized expenditures | | | 7,017 | | | — | | | 1,338 | | | 20,052 | | | — | | | 28,407 | | | | | | | | | | | | | | | | | | | | As of June 30, 2021 | | | | | | | | | | | | | | | | | | | Real estate, net | | $ | 1,273,031 | | $ | — | | $ | 93,975 | | $ | — | | $ | — | | $ | 1,367,006 | Real estate available and held for sale | | | — | | | — | | | 99,201 | | | — | | | — | | | 99,201 | Total real estate | | | 1,273,031 | | | — | | | 193,176 | | | — | | | — | | | 1,466,207 | Net investment in leases | | | 477,798 | | | — | | | — | | | — | | | — | | | 477,798 | Land and development, net | | | — | | | — | | | — | | | 381,719 | | | — | | | 381,719 | Loans receivable and other lending investments, net | | | 47,392 | | | 407,568 | | | — | | | — | | | — | | | 454,960 | Loan receivable held for sale | | | 62,525 | | | — | | | — | | | — | | | — | | | 62,525 | Other investments | | | 1,073,422 | | | 46,945 | | | 55,344 | | | 13,576 | | | 86,667 | | | 1,275,954 | Total portfolio assets | | | 2,934,168 | | | 454,513 | | | 248,520 | | | 395,295 | | | 86,667 | | | 4,119,163 | Cash and other assets | | | | | | | | | | | | | | | | | | 648,487 | Total assets | | | | | | | | | | | | | | | | | $ | 4,767,650 | | | | | | | | | | | | | | | | | | | | As of December 31, 2020 | | | | | | | | | | | | | | | | | | | Real estate, net | | $ | 1,291,903 | | $ | — | | $ | 192,378 | | $ | — | | $ | — | | $ | 1,484,281 | Real estate available and held for sale | | | — | | | — | | | 5,212 | | | — | | | — | | | 5,212 | Total real estate | | | 1,291,903 | | | — | | | 197,590 | | | — | | | — | | | 1,489,493 | Net investment in leases | | | 429,101 | | | — | | | — | | | — | | | — | | | 429,101 | Land and development, net | | | — | | | — | | | — | | | 430,663 | | | — | | | 430,663 | Loans receivable and other lending investments, net | | | 45,398 | | | 686,932 | | | — | | | — | | | — | | | 732,330 | Other investments | | | 1,016,710 | | | — | | | 58,739 | | | 31,200 | | | 69,911 | | | 1,176,560 | Total portfolio assets | | $ | 2,783,112 | | $ | 686,932 | | $ | 256,329 | | $ | 461,863 | | $ | 69,911 | | | 4,258,147 | Cash and other assets | | | | | | | | | | | | | | | | | | 603,661 | Total assets | | | | | | | | | | | | | | | | | $ | 4,861,808 |
(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 $14.8 million and $20.3 million for the three and six months ended June 30, 2021, respectively, and $4.7 million and $21.0 million for the three and six months ended June 30, 2020, respectively. |
(3) | The following is a reconciliation of segment profit to net income (loss) ($ in thousands): |
| | | | | | | | | | | | | | | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | | | 2021 | | 2020 | | 2021 | | 2020 | | Segment profit | | $ | 16,172 | | $ | 12,093 | | $ | 40,849 | | $ | 41,141 | | Less: Recovery of (provision for) loan losses | | | 2,263 | | | (2,067) | | | 6,057 | | | (6,070) | | Less: Recovery of (provision for) losses on net investment in leases | | | 265 | | | (534) | | | 1,866 | | | (1,826) | | Less: Impairment of assets | | | — | | | (4,783) | | | (1,785) | | | (6,491) | | Less: Stock-based compensation expense | | | (14,791) | | | (4,744) | | | (20,299) | | | (21,014) | | Less: Depreciation and amortization | | | (14,660) | | | (14,300) | | | (30,115) | | | (28,786) | | Less: Income tax expense | | | (665) | | | (28) | | | — | | | (88) | | Less: Loss on early extinguishment of debt, net | | | — | | | — | | | — | | | (4,115) | | Net loss | | $ | (11,416) | | $ | (14,363) | | $ | (3,427) | | $ | (27,249) | |
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