SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2015

SEGMENTS

Schedule of segment operating results

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(In thousands)				(In thousands)
Master Planned Communities
Land sales	$	45,423	$	59,351	$	138,937	$	260,186
Builder price participation		6,680		5,311		20,285		13,251
Minimum rents		171		210		601		614
Other land revenues		4,612		4,103		11,038		9,296
Other rental and property revenues		23		198		30		373
Total revenues		56,909		69,173		170,891		283,720
Cost of sales – land		19,674		27,743		67,806		93,540
Land sales operations		7,293		8,068		24,593		24,629
Land sales real estate and business taxes		3,056		2,927		7,702		7,016
Depreciation and amortization		89		101		279		304
Interest income		(14)		(17)		(45)		(96)
Interest expense (*)		(4,210)		(3,332)		(13,656)		(13,210)
Total expenses		25,888		35,490		86,679		112,183
MPC EBT		31,021		33,683		84,212		171,537
Operating Assets
Minimum rents		37,565		24,035		108,574		65,853
Tenant recoveries		10,685		7,581		30,951		20,406
Resort and conference center revenues		11,772		8,150		35,256		27,198
Other rental and property revenues		7,400		6,076		20,645		17,756
Total revenues		67,422		45,842		195,426		131,213
Other property operating costs		15,659		14,116		51,495		42,782
Rental property real estate taxes		6,447		3,716		17,956		10,585
Rental property maintenance costs		2,968		2,154		8,380		5,962
Resort and conference center operations		8,767		8,910		26,738		22,833
Provision for doubtful accounts		975		103		3,050		277
Demolition costs		798		761		2,411		6,689
Development-related marketing costs		2,367		589		7,381		5,379
Depreciation and amortization		22,936		11,261		64,585		29,802
Interest income		(10)		(11)		(29)		(141)
Interest expense		8,002		4,917		22,124		10,889
Equity in Earnings from Real Estate and Other Affiliates		(289)		(202)		(1,333)		(2,774)
Total expenses		68,620		46,314		202,758		132,283
Operating Assets EBT		(1,198)		(472)		(7,332)		(1,070)
Strategic Developments
Minimum rents		78		137		822		473
Tenant recoveries		7		18		109		92
Condominium rights and unit sales		78,992		4,032		200,362		11,516
Other land revenues		5		9		17		26
Other rental and property revenues		29		17		68		472
Total revenues		79,111		4,213		201,378		12,579
Condominium rights and unit cost of sales		47,573		2,026		126,747		5,788
Other property operating costs		1,021		1,083		2,964		2,821
Real estate taxes		461		843		1,720		1,955
Rental property maintenance costs		126		159		358		440
Provision for doubtful accounts		32		16		32		16
Demolition costs		226		(1)		226		22
Development-related marketing costs		5,272		5,798		12,095		10,530
Depreciation and amortization		528		445		2,145		1,483
Other expense/(income)		435		—		101		(2,373)
Interest income		(21)		—		(188)		—
Interest expense (*)		(1,903)		(3,198)		(5,289)		(9,828)
Equity in Earnings from Real Estate and Other Affiliates		(6)		(5,307)		(1,831)		(15,390)
Total expenses		53,744		1,864		139,080		(4,536)
Strategic Developments EBT		25,367		2,349		62,298		17,115
REP EBT	$	55,190	$	35,560	$	139,178	$	187,582

(*) Negative interest expense amounts are due to interest capitalized in our Master Planned Communities and Strategic Developments segments related to Operating Assets segment debt and the Senior Notes.

Schedule of reconciliation of REP EBT to GAAP-basis net income (loss)

Reconciliation of  REP EBT to GAAP	Three Months Ended September 30,				Nine Months Ended September 30,
income (loss) before taxes	2015		2014		2015		2014
	(Inthousands)				(In thousands)
REP EBT	$	55,190	$	35,560	$	139,178	$	187,582
General and administrative		(18,526)		(14,759)		(57,095)		(49,138)
Corporate interest income (expense), net		(13,262)		(14,938)		(39,709)		(21,089)
Warrant liability gain (loss)		123,640		24,690		57,450		(139,120)
Gain on sale of The Club at Carlton Woods		29,073		-		29,073
Increase (reduction) in tax indemnity receivable		-		5,454		-		(5,473)
Corporate other income (expense), net		(222)		11,409		1,304		25,095
Corporate depreciation and amortization		(1,444)		(1,211)		(4,568)		(3,411)
Income (loss) before taxes	$	174,449	$	46,205	$	125,633	$	(5,554)

Schedule of reconciliation of segment revenue to GAAP-basis consolidated revenues

Reconciliation of Segment Basis Revenues to	Three Months Ended September 30,				Nine Months Ended September 30,
GAAP Revenues	2015		2014		2015		2014
	(In thousands)				(In thousands)
Master Planned Communities	$	56,909	$	69,173	$	170,891	$	283,720
Operating Assets		67,422		45,842		195,426		131,213
Strategic Developments		79,111		4,213		201,378		12,579
Total revenues	$	203,442	$	119,228	$	567,695	$	427,512

Summary of assets by segment and the reconciliation of total segment assets to the total assets in the Condensed Consolidated Balance Sheets

	September 30,		December 31,
	2015		2014
	(In thousands)
Master Planned Communities	$	1,986,825	$	1,877,043
Operating Assets		2,141,445		1,934,350
Strategic Developments		1,154,738		879,896
Total segment assets		5,283,008		4,691,289
Corporate and other		261,516		428,642
Total assets	$	5,544,524	$	5,119,931