OPERATING SEGMENTS

9 Months Ended

Sep. 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 fees, 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 nine months ended September 30, 2011 and 2010, including segment assets and expenditures (dollars in thousands):

	Commercial
For the Three Months Ended September 30, 2011	Properties			Apartments			Land			Other			Total
Operating revenue	$	9,364		$	21,731		$	7		$	200		$	31,302
Operating expenses		5,590			11,244			344			28			17,206
Depreciation and amortization		1,799			4,013			-			-			5,812
Mortgage and loan interest		3,154			6,891			1,416			1,064			12,525
Interest income		-			-			-			497			497
Gain on land sales		-			-			6,285			-			6,285
Segment operating income (loss)	$	(1,179	)	$	(417	)	$	4,532		$	(395	)	$	2,541
Capital expenditures		1,636			10			-			-			1,646
Assets		200,052			604,001			179,175			-			983,228
Property Sales
Sales price	$	30,200		$	21,590		$	52,437		$	-		$	104,227
Cost of sale		33,021			15,897			52,762			-			101,680
Deferred current gain		-			-			-			-			-
Recognized prior deferred gain		-			-			4,951			-			4,951
Gain (loss) on sale	$	(2,821	)	$	5,693		$	4,626		$	-		$	7,498
	Commercial
For the Three Months Ended September 30, 2010	Properties			Apartments			Land			Other			Total
Operating revenue	$	10,033		$	17,970		$	120		$	1		$	28,124
Operating expenses		5,826			9,864			445			(37	)		16,098
Depreciation and amortization		2,114			3,703			-			-			5,817
Mortgage and loan interest		3,006			7,432			1,868			961			13,267
Interest income		-			-			-			669			669
Loss on land sales		-			-			(371	)		-			(371	)
Segment operating loss	$	(913	)	$	(3,029	)	$	(2,564	)	$	(254	)	$	(6,760	)
Capital expenditures		144			316			-			-			460
Assets		314,521			616,400			375,730			(400	)		1,306,251
Property Sales
Sales price	$	-		$	33,491		$	8,709		$	-		$	42,200
Cost of sale		-			29,598			9,080			-			38,678
Deferred current gain		-			-			-			-			-
Recognized prior deferred gain		-			-			-			-			-
Gain (loss) on sale	$	-		$	3,893		$	(371	)	$	-		$	3,522

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

	For Three Months Ended September 30,
	2011			2010
Segment operating income (loss)	$	2,541		$	(6,760	)
Other non-segment items of income (expense)
General and administrative		(2,798	)		(1,338	)
Advisory fees		(2,441	)		(3,054	)
Provision on impairment of notes receivable and real estate assets		-			-
Other income		113			640
Loss on sale of investments		(32	)		-
Equity in earnings of investees		250			(10	)
Deferred tax expense		(1,007	)		(486	)
Loss from continuing operations	$	(3,374	)	$	(11,008	)

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

	Commercial
For the Nine Months Ended September 30, 2011	Properties			Apartments			Land			Other			Total
Operating revenue	$	30,212		$	59,086		$	289		$	209		$	89,796
Operating expenses		16,867			30,038			1,225			123			48,253
Depreciation and amortization		4,151			11,319						-			15,470
Mortgage and loan interest		7,853			22,212			6,316			3,172			39,553
Interest income		-			-			-			1,627			1,627
Gain on land sales		-			-			8,366			-			8,366
Segment operating loss	$	1,341		$	(4,483	)	$	1,114		$	(1,459	)	$	(3,487	)
Capital expenditures		1,862			164			(868	)		-			1,158
Assets		200,052			604,001			179,175			-			983,228
Property Sales
Sales price	$	102,765		$	21,590		$	135,717		$	-		$	260,072
Cost of sale		111,077			15,897			137,336			-			264,310
Deferred current gain		-			-			-			-			-
Recognized prior deferred gain		1,291			963			8,326			-			10,580
Gain (loss) on sale	$	(7,021	)	$	6,656		$	6,707		$	-		$	6,342
	Commercial
For the Nine Months Ended September 30, 2010	Properties			Apartments			Land			Other			Total
Operating revenue	$	31,601		$	53,590		$	279		$	(29	)	$	85,441
Operating expenses		17,420			29,444			2,178			20			49,062
Depreciation and amortization		6,309			10,975			-			-			17,284
Mortgage and loan interest		9,095			23,313			6,944			2,955			42,307
Interest income		-			-			-			2,360			2,360
Loss on land sales		-			-			(6,005	)		-			(6,005	)
Segment operating loss	$	(1,223	)	$	(10,142	)	$	(14,848	)	$	(644	)	$	(26,857	)
Capital expenditures		412			622			148			-			1,182
Assets		314,521			616,400			375,730			(400	)		1,306,251
Property Sales
Sales price	$	28,740		$	58,583		$	18,963		$	-		$	106,286
Cost of sale		28,954			51,016			24,968			-			104,938
Deferred current gain		-			3,599			-			-			3,599
Recognized prior deferred gain		-			-			-			-			-
Gain (loss) on sale	$	(214	)	$	3,968		$	(6,005	)	$	-		$	(2,251	)

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

	For Nine Months Ended September 30,
	2011			2010
Segment operating loss	$	(3,487	)	$	(26,857	)
Other non-segment items of income (expense)
General and administrative		(7,452	)		(4,955	)
Advisory fees		(7,688	)		(9,112	)
Provision on impairment of notes receivable and real estate assets		(5,622	)		-
Other income		1,878			1,554
Loss on sale of investments		(483	)		-
Equity in earnings of investees		378			(122	)
Deferred tax benefit		1,152			117
Loss from continuing operations	$	(21,324	)	$	(39,375	)

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

	September 30,
	2011		2010
Segment assets	$	983,228	$	1,306,251
Investments in real estate partnerships		8,015		8,745
Other assets		156,972		159,863
Assets held for sale		-		16,251
Total assets	$	1,148,215	$	1,491,110