OPERATING SEGMENTS

6 Months Ended

Jun. 30, 2011

OPERATING SEGMENTS

OPERATING SEGMENTS

NOTE 7. OPERATING SEGMENTS

Our segments are based on our method of internal reporting which classifies our operations by property type. Our property types are grouped into commercial, apartments, land and other operating segments. Significant differences between and among the accounting policies of the operating segments as compared to the Consolidated Financial Statements principally involve the calculation and allocation of administrative expenses. We evaluate the performance of each of the operating segments and allocate resources to them based on their operating income and cash flow.

Items of income that are not reflected in the segments are interest, other income, gain on debt extinguishment, gain on condemnation award, equity in partnerships, and gains on sale of real estate. Expenses that are not reflected in the segments are provision for losses, advisory, net income and incentive fees, general and administrative, non-controlling interests and net loss from discontinued operations before gains on sale of real estate.

 Presented below is our reportable segments’ operating income for the three and six months ended June 30, 2011 and 2010, including segment assets and expenditures (dollars in thousands): [Missing Graphic Reference]

	Commercial
For the Three Months Ended June 30, 2011	Properties			Apartments			Land			Other			Total
Operating revenue	$	12,323		$	19,372		$	86		$	4		$	31,785
Operating expenses		5,915			9,873			344			68			16,200
Depreciation and amortization		557			3,814			-			-			4,371
Mortgage and loan interest		2,582			8,479			1,995			1,555			14,611
Interest income		-			-			-			704			704
Gain on land sales		-			-			1,285			-			1,285
Segment operating income (loss)	$	3,269		$	(2,794	)	$	(968	)	$	(915	)	$	(1,408	)
Capital expenditures		190			89			-			-			279
Assets		219,156			613,007			210,764			-			1,042,927
Property Sales
Sales price	$	67,397		$	-		$	40,141		$	-		$	107,538
Cost of sale		75,274			-			41,846			-			117,120
Deferred current gain		-			-			-			-			-
Recognized prior deferred gain		-			963			2,990			-			3,953
Gain (loss) on sale	$	(7,877	)	$	963		$	1,285		$	-		$	(5,629	)
	Commercial
For the Three Months Ended June 30, 2010	Properties			Apartments			Land			Other			Total
Operating revenue	$	11,849		$	18,659		$	92		$	(11	)	$	30,589
Operating expenses		6,446			10,513			1,163			7			18,129
Depreciation and amortization		2,364			3,989			-			-			6,353
Mortgage and loan interest		3,495			8,794			2,443			931			15,663
Interest income		-			-			-			832			832
Loss on land sales		-			-			(5,640	)		-			(5,640	)
Segment operating loss	$	(456	)	$	(4,637	)	$	(9,154	)	$	(117	)	$	(14,364	)
Capital expenditures		318			-			-			-			318
Assets		244,117			570,011			379,054			-			1,193,182
Property Sales
Sales price	$	5,970		$	25,092		$	17,660		$	-		$	48,722
Cost of sale		6,184			21,418			23,300			-			50,902
Deferred current gain		-			3,599			-			-			3,599
Recognized prior deferred gain		-			-			-			-			-
Gain (loss) on sale	$	(214	)	$	75		$	(5,640	)	$	-		$	(5,779	)

The table below reconciles the segment information to the corresponding amounts in the Consolidated Statements of Operations:

	For Three Months Ended June 30,
	2011			2010
Segment operating loss	$	(1,408	)	$	(14,364	)
Other non-segment items of income (expense)
General and administrative		(2,588	)		(1,793	)
Advisory fees		(2,626	)		(2,962	)
Provision on impairment of notes receivable and real estate assets		(444	)		-
Other income		100			249
Equity in earnings of investees		117			(50	)
Deferred tax benefit		2,584			554
Loss from continuing operations	$	(4,265	)	$	(18,366	)

The table below reconciles the segment information to the corresponding amounts in the Consolidated Balance Sheets:

	For Three Months Ended June 30,
	2011		2010
Segment assets	$	1,042,927	$	1,193,182
Investments in real estate partnerships		7,441		8,938
Other assets		157,539		136,970
Assets held for sale		-		210,021
Total assets	$	1,207,907	$	1,549,111

	Commercial
For the Six Months Ended June 30, 2011	Properties			Apartments			Land			Other			Total
Operating revenue	$	22,477		$	38,669		$	281		$	12		$	61,439
Operating expenses		12,269			19,429			883			94			32,675
Depreciation and amortization		2,919			7,514			-			-			10,433
Mortgage and loan interest		5,331			15,695			4,900			2,109			28,035
Interest income		-			-			-			1,130			1,130
Gain on land sales		-			-			2,081			-			2,081
Segment operating gain (loss)	$	1,958		$	(3,969	)	$	(3,421	)	$	(1,061	)	$	(6,493	)
Capital expenditures		258			82			-			-			340
Assets		219,156			613,007			210,764			-			1,042,927
Property Sales
Sales price	$	99,911		$	-		$	86,132		$	-		$	186,043
Cost of sale		107,503			-			87,426			-			194,929
Deferred current gain		-			-			-			-			-
Recognized prior deferred gain		3,391			963			3,375			-			7,729
Gain (loss) on sale	$	(4,201	)	$	963		$	2,081		$	-		$	(1,157	)
	Commercial
For the Six Months Ended June 30, 2010	Properties			Apartments			Land			Other			Total
Operating revenue	$	24,244		$	36,913		$	160		$	(30	)	$	61,287
Operating expenses		12,939			20,608			1,735			56			35,338
Depreciation and amortization		4,742			7,472			-			-			12,214
Mortgage and loan interest		6,920			16,386			5,077			1,994			30,377
Interest income		-			-			-			1,691			1,691
Loss on land sales		-			-			(5,634	)		-			(5,634	)
Segment operating loss	$	(357	)	$	(7,553	)	$	(12,286	)	$	(389	)	$	(20,585	)
Capital expenditures		540			260			121			-			921
Assets		244,117			570,011			379,054			-			1,193,182
Property Sales
Sales price	$	5,970		$	25,092		$	17,669		$	-		$	48,731
Cost of sale		6,184			21,418			23,303			-			50,905
Deferred current gain		-			3,599			-			-			3,599
Recognized prior deferred gain		-			-			-			-			-
Gain (loss) on sale	$	(214	)	$	75		$	(5,634	)	$	-		$	(5,773	)

The table below reconciles the segment information to the corresponding amounts in the Consolidated Statements of Operations:

	For Six Months Ended June 30,
	2011			2010
Segment operating loss	$	(6,493	)	$	(20,585	)
Other non-segment items of income (expense)
General and administrative		(4,730	)		(3,619	)
Advisory fees		(5,246	)		(6,058	)
Provision on impairment of notes receivable and real estate assets		(6,503	)		-
Other income		1,314			914
Equity in earnings of investees		57			(112	)
Deferred tax benefit		1,637			431
Loss from continuing operations	$	(19,964	)	$	(29,029	)

The table below reconciles the segment information to the corresponding amounts in the Consolidated Balance Sheets:

	For Six Months Ended June 30,
	2011		2010
Segment assets	$	1,042,927	$	1,193,182
Investments in real estate partnerships		7,441		8,938
Other assets		157,539		136,970
Assets held for sale		-		210,021
Total assets	$	1,207,907	$	1,549,111