Segment Reporting

12 Months Ended

Dec. 31, 2013

Segment Reporting Information, Additional Information [Abstract]

Segment Reporting

Segment Reporting

The Company's long-term portfolio strategy is to focus on three asset classes - retail, lodging, and student housing. During the year ended December 31, 2013, the Company has executed on this strategy by disposing of 313 non-strategic assets as well as classifying 224 non-strategic assets as held for sale.  Beginning on September 30, 2013, the Company restated its business segments to: Retail, Lodging, Student Housing, and Non-core.  Net operating income for the year December 31, 2012 and 2011 have been restated to reflect the change in business segments. The non-core segment includes office properties, industrial properties, bank branches, retail single tenant properties, and a conventional multi-family property. The Company has concentrated its efforts on driving portfolio growth in the multi-tenant retail, student housing and lodging segments to enhance the long-term value of each segment's portfolio and respective platforms. For its non-core properties, the Company strives to improve individual property performance to increase each property’s value. The Company evaluates segment performance primarily based on net operating income. Net operating income of the segments exclude interest expense, depreciation and amortization, general and administrative expenses, net income of noncontrolling interest and other investment income from corporate investments. The non-segmented assets primarily include the Company’s cash and cash equivalents, investment in marketable securities, construction in progress, investment in unconsolidated entities and notes receivable.

For the year ended December 31, 2013, approximately 9% of the Company’s rental revenue (excluding lodging and student housing) from continuing operations, included in the non-core segment, was generated by two properties leased to AT&T, Inc. We also own a third property that is leased to AT&T, Inc., but the property is classified as held for sale as of December 31, 2013. As a result of the concentration of revenue generated from these properties, if AT&T were to cease paying rent or fulfilling its other monetary obligations, the Company could have significantly reduced rental revenues or higher expenses until the defaults were cured or the properties were leased to a new tenant or tenants.

The following table summarizes net operating income by segment as of and for the year ended December 31, 2013.

	Total			Retail		Lodging		Student Housing		Non - core
Rental income	$	355,946		$	215,134	$	—	$	55,773	$	85,039
Straight line rent adjustment	5,732			5,198		—		373		161
Tenant recovery income	71,207			64,930		—		521		5,756
Other property income	7,202			3,822		—		2,809		571
Lodging income	881,750			—		881,750		—		—
Total income	$	1,321,837		$	289,084	$	881,750	$	59,476	$	91,527
Operating expenses	$	743,928		$	93,626	$	609,480	$	24,014	$	16,808
Net operating income	$	577,909		$	195,458	$	272,270	$	35,462	$	74,719
Non allocated expenses (a)	$	(408,141	)
Other income and expenses (b)	$	(150,881	)
Earnings from unconsolidated entities (c)	$	8,485
Provision for asset impairment (d)	$	(242,896	)
Net loss from continuing operations	$	(215,524	)
Income from discontinued operations, net	$	459,588
Less: net income attributable to noncontrolling interests	$	(16	)
Net income attributable to Company	$	244,048
Balance Sheet Data:
Real estate assets, net (e)	$	7,131,196		$	2,207,062	$	3,492,657	$	639,848	$	791,629
Non-segmented assets (f)	2,531,268
Total Assets	$	9,662,464
Capital expenditures	$	66,640		$	12,736	$	49,781	$	2,316	$	1,807

(a) Non allocated expenses consist of general and administrative expenses, business manager management fee and depreciation and amortization.

(b) Other income and expenses consist of interest and dividend income, interest expense, other income and expenses, realized gain, (loss) and (impairment) on securities, net, and income tax expense.

(c) Earnings from unconsolidated entities consists of equity (losses) in earnings of unconsolidated entities as well as gain, (loss) and (impairment) of investment in unconsolidated entities.

(d) Total provision for asset impairment included $21,179 related to four retail properties, $49,146 related to four lodging properties, and $177,905 related to eleven non-core properties. On December 31, 2013, we also adjusted the impairment allowance for notes receivable for a gain $5,334.

(e) Real estate assets includes intangible assets, net of amortization.

(f) Construction in progress is included as non-segmented assets.

The following table summarizes net operating income by segment as of and for the year ended December 31, 2012.

	Total			Retail		Lodging		Student Housing		Non - core
Rental income	$	343,290		$	226,546	$	—	$	30,234	$	86,510
Straight line rent adjustment	4,357			4,824		—		169		(636		)
Tenant recovery income	73,214			66,154		—		429		6,631
Other property income	5,714			2,686		—		1,750		1,278
Lodging income	692,448			—		692,448		—		—
Total income	$	1,119,023		$	300,210	$	692,448	$	32,582	$	93,783
Operating expenses	$	605,439		$	95,802	$	480,229	$	12,752	$	16,656
Net operating income	$	513,584		$	204,408	$	212,219	$	19,830	$	77,127
Non allocated expenses (a)	$	(388,459	)
Other income and expenses (b)	$	(187,400	)
Loss from unconsolidated entities (c)	$	(10,324	)
Provision for asset impairment (d)	$	(37,830	)
Net loss from continuing operations	$	(110,429	)
Income from discontinued operations, net	$	46,780
Net income attributable to noncontrolling interests	$	(5,689	)
Net loss attributable to Company	$	(69,338	)
Balance Sheet Data:
Real estate assets, net (e)	$	9,279,123		$	2,690,365	$	2,687,180	$	374,839	$	3,526,739
Non-segmented assets (f)	1,480,761
Total Assets	$	10,759,884
Capital expenditures	$	88,637		$	14,411	$	60,373	$	162	$	13,691

(a) Non allocated expenses consist of general and administrative expenses, business manager management fee and depreciation and amortization.

(b) Other income and expenses consist of interest and dividend income, interest expense, other income, realized gain, (loss) and (impairment) on securities, net, and income tax benefit.

(c) Loss from unconsolidated entities consists of equity losses in earnings of unconsolidated entities as well as gain, (loss) and (impairment) of investment in unconsolidated entities.

(d) Total provision for asset impairment included $16,234 related to three retail properties, and $21,596 related to six non-core properties.

(e) Real estate assets includes intangible assets, net of amortization.

(f) Construction in progress is included as non-segmented assets.

The following table summarizes net operating income by segment as of and for the year ended December 31, 2011.

	Total			Retail		Lodging		Student Housing		Non - core
Rental income	$	322,597		$	211,036	$	—	$	24,706	$	86,855
Straight line rent adjustment	4,455			4,942		—		145		(632		)
Tenant recovery income	66,655			60,769		—		446		5,440
Other property income	8,838			4,665		—		1,569		2,604
Lodging income	517,840			—		517,840		—		—
Total income	$	920,385		$	281,412	$	517,840	$	26,866	$	94,267
Operating expenses	$	476,131		$	91,683	$	353,487	$	11,691	$	19,270
Net operating income	$	444,254		$	189,729	$	164,353	$	15,175	$	74,997
Non allocated expenses (a)	$	(382,599	)
Other income and expenses (b)	$	(186,068	)
Loss from unconsolidated entities (c)	$	(118,825	)
Provision for asset impairment (d)	$	(24,051	)
Net loss from continuing operations	$	(267,289	)
Loss from discontinued operations, net	$	(42,256	)
Net income attributable to noncontrolling interests	$	(6,708	)
Net loss attributable to Company	$	(316,253	)

(a) Non allocated expenses consist of general and administrative expenses, business manager management fee and depreciation and amortization.

(b) Other income and expenses consist of interest and dividend income, interest expense, other income and expenses, realized gain, (loss) and (impairment) on securities, net, and income tax benefit.

(c) Loss from unconsolidated entities consists of equity (losses) in earnings of unconsolidated entities as well as gain, (loss) and (impairment) of investment in unconsolidated entities.

(d) Total provision for asset impairment included $19,390 related to five retail properties, $2,886 related to one lodging properties, and $1,775 related to two non-core properties.