SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2016

SEGMENTS

Schedule of segment operating results

	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2016		2015		2016		2015
Master Planned Communities
Land sales	$	44,128	$	45,423	$	147,168	$	138,937
Builder price participation		4,483		6,680		15,631		20,285
Minimum rents		95		171		376		601
Other land revenues		2,585		4,612		8,357		11,038
Other rental and property revenues		13		23		33		30
Total revenues		51,304		56,909		171,565		170,891
Cost of sales – land		21,432		19,674		66,128		67,806
Land sales operations		6,797		7,293		19,603		24,593
Land sales real estate and business taxes		2,419		3,056		7,013		7,702
Depreciation and amortization		72		89		236		279
Interest income		(5)		(14)		(26)		(45)
Interest expense (*)		(5,248)		(4,210)		(15,591)		(13,656)
Equity in earnings in Real Estate and Other Affiliates		(13,699)		—		(22,573)		—
Total expenses, net of other income		11,768		25,888		54,790		86,679
MPC EBT		39,536		31,021		116,775		84,212
Operating Assets
Minimum rents		44,736		37,565		127,663		108,574
Tenant recoveries		11,652		10,685		33,089		30,951
Hospitality revenues		14,088		11,772		46,126		35,256
Other rental and property revenues		3,471		7,400		10,974		20,645
Total revenues		73,947		67,422		217,852		195,426
Other property operating costs		15,611		15,659		43,559		51,495
Real estate taxes		6,406		6,447		19,257		17,956
Rental property maintenance costs		3,247		2,968		8,893		8,380
Hospitality costs		12,662		8,767		37,379		26,738
Provision for doubtful accounts		1,940		975		4,566		3,050
Demolition costs		16		798		494		2,411
Provision for impairment		35,734		—		35,734		—
Development-related marketing costs		1,950		2,367		5,038		7,381
Depreciation and amortization		20,732		22,936		64,546		64,585
Other income, net		(13)		—		(3,126)		—
Interest income		(3)		(10)		(19)		(29)
Interest expense		9,772		8,002		29,041		22,124
Equity in earnings from Real Estate and Other Affiliates		209		(289)		(2,617)		(1,333)
Total expenses, net of other income		108,263		68,620		242,745		202,758
Operating Assets EBT		(34,316)		(1,198)		(24,893)		(7,332)
Strategic Developments
Minimum rents		79		78		216		822
Tenant recoveries		5		7		19		109
Condominium rights and unit sales		115,407		78,992		362,613		200,362
Other land revenues		10		5		30		17
Other rental and property revenues		54		29		328		68
Total revenues		115,555		79,111		363,206		201,378
Condominium rights and unit cost of sales		83,218		47,573		237,759		126,747
Other property operating costs		924		1,021		3,954		2,964
Real estate taxes		627		461		1,853		1,720
Rental property maintenance costs		85		126		324		358
Provision for doubtful accounts		—		32		63		32
Demolition costs		240		226		724		226
Development-related marketing costs		2,766		5,272		10,548		12,095
Depreciation and amortization		659		528		1,978		2,145
Other income, net		(298)		435		(542)		101
Interest income		(140)		(21)		(271)		(188)
Interest expense (*)		(1,731)		(1,903)		(4,764)		(5,289)
Equity in earnings from Real Estate and Other Affiliates		(3)		(6)		(10,510)		(1,831)
Gain on sale of 80 South Street Assemblage		(70)		—		(140,549)		—
Total expenses, net of other income		86,277		53,744		100,567		139,080
Strategic Developments EBT		29,278		25,367		262,639		62,298
REP EBT	$	34,498	$	55,190	$	354,521	$	139,178

(*) 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 income (loss) before taxes	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2016		2015		2016		2015
REP EBT	$	34,498	$	55,190	$	354,521	$	139,178
General and administrative		(21,128)		(18,526)		(61,505)		(57,095)
Corporate interest expense, net		(13,263)		(13,262)		(39,358)		(39,709)
Warrant liability gain (loss)		(7,300)		123,640		(21,630)		57,450
Corporate other income expense, net		123		(222)		6,190		1,304
Gain on sale of The Club at Carlton Woods		—		29,073		—		29,073
Gain on acquisition of joint venture partner’s interest		27,087		—		27,087		—
Corporate depreciation and amortization		(1,859)		(1,444)		(4,486)		(4,568)
Income before taxes	$	18,158	$	174,449	$	260,819	$	125,633

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

Reconciliation of Segment Basis Revenues to  GAAP Revenues	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2016		2015		2016		2015
Master Planned Communities	$	51,304	$	56,909	$	171,565	$	170,891
Operating Assets		73,947		67,422		217,852		195,426
Strategic Developments		115,555		79,111		363,206		201,378
Total revenues	$	240,806	$	203,442	$	752,623	$	567,695

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,
(In thousands)	2016		2015
Master Planned Communities	$	2,026,761	$	2,022,524
Operating Assets		2,580,682		2,365,724
Strategic Developments		1,314,753		1,138,695
Total segment assets		5,922,196		5,526,943
Corporate and other		548,187		194,639
Total assets	$	6,470,383	$	5,721,582