OPERATING SEGMENTS

3 Months Ended

Mar. 31, 2013

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 and other expenses. Management evaluates the performance of each of the operating segments and allocates resources to them based on their net 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.

The segment labeled as “Other” consists of revenue and operating expenses related to the notes receivable and corporate debt.

 Presented below is our reportable segments’ operating income for the three months ended March 31, 2013 and 2012, including segment assets and expenditures (dollars in thousands):

	Commercial
For the Three Months Ended March 31, 2013	Properties			Apartments			Land			Other			Total
Operating revenue	$	7,273		$	19,970		$	34		$	-		$	27,277
Operating expenses		4,656			8,385			301			(23	)		13,319
Depreciation and amortization		1,454			3,567			-			-			5,021
Mortgage and loan interest		1,804			6,070			1,401			712			9,987
Deferred borrowing costs		22			2,354			55			2			2,433
Loan charges & prepayment penalites		-			3,982			-			-			3,982
Interest income		-			-			-			2,176			2,176
Gain on land sales		-			-			(48	)		-			(48	)
Segment operating income (loss)	$	(663	)	$	(4,388	)	$	(1,771	)	$	1,485		$	(5,337	)
Capital expenditures		824			31			53			-			908
Assets		162,857			518,557			170,619			-			852,033
Property Sales
Sales price	$	-		$	25,300		$	2,250		$	-		$	27,550
Cost of sale		-			19,110			2,298			-			21,408
Deferred current gain		-			-			-			-			-
Recognized prior deferred gain		-			-			-			-			-
Gain (loss) on sale	$	-		$	6,190		$	(48	)	$	-		$	6,142
	Commercial
For the Three Months Ended March 31, 2012	Properties			Apartments			Land			Other			Total
Operating revenue	$	8,587		$	18,587		$	-		$	41		$	27,215
Operating expenses		4,863			7,591			255			311			13,020
Depreciation and amortization		1,590			3,567			-			-			5,157
Mortgage and loan interest		2,815			6,998			1,573			1,091			12,477
Deferred borrowing costs		22			858			16			-			896
Loan charges & prepayment penalites		-			2,387			5			-			2,392
Interest income		-			-			-			3,229			3,229
Gain on land sales		-			-			423			-			423
Segment operating income (loss)	$	(703	)	$	(2,814	)	$	(1,426	)	$	1,868		$	(3,075	)
Capital expenditures		447			198			5			-			650
Assets		169,054			530,054			190,146			-			889,254
Property Sales
Sales price	$	-		$	21,146		$	6,330		$	-		$	27,476
Cost of sale		-			17,558			5,907			-			23,465
Deferred current gain		-			-			-			-			-
Recognized prior deferred gain		-			-			-			-			-
Gain (loss) on sale	$	-		$	3,588		$	423		$	-		$	4,011

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

	For Three Months Ended
	March 31,
	2013			2012
Segment operating loss	$	(5,337	)	$	(3,075	)
Other non-segment items of income (expense)
General and administrative		(1,837	)		(2,463	)
Advisory fees		(2,138	)		(2,303	)
Other income		36			1,611
Equity in earnings of investees		8			(73	)
Income tax benefit		2,195			761
Loss from continuing operations	$	(7,073	)	$	(5,542	)

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

	March 31,
	2013		2012
Segment assets	$	852,033	$	889,254
Investments in real estate partnerships		5,415		6,230
Other assets		121,926		149,684
Assets held for sale		20,237		69,891
Total assets	$	999,611	$	1,115,059