OPERATING SEGMENTS

6 Months Ended

Jun. 30, 2013

OPERATING SEGMENTS [Abstarct]

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 and six months ended June 30, 2013 and 2012, including segment assets and expenditures (dollars in thousands):

	Commercial
For the Three Months Ended June 30, 2013	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	5,892		$	20,444		$	-		$	4		$	26,340
Property operating expenses		2,967			8,697			219			32			11,915
Depreciation and amortization		1,825			3,587			-			-			5,412
Mortgage and loan interest		1,725			5,860			1,378			691			9,654
Deferred borrowing costs		19			894			32			1			946
Loan charges and prepayment penalties		-			3,200			-			26			3,226
Interest income		-			-			-			2,119			2,119
Gain (loss) on land sales		-			-			-			-			-
Segment operating income (loss)	$	(644	)	$	(1,794	)	$	(1,629	)	$	1,373		$	(2,694	)
Capital expenditures		2,250			110			-			-			2,360
Real estate assets		150,234			515,080			170,941			-			836,255
Property Sales
Sales price	$	26,974		$	24,822		$	-		$	-		$	51,796
Cost of sale		14,914			18,808			-			-			33,722
Gain on sale	$	12,060		$	6,014		$	-		$	-		$	18,074
	Commercial
For the Three Months Ended June 30, 2012	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	7,142		$	19,277		$	-		$	2		$	26,421
Property operating expenses		4,095			8,394			260			(32	)		12,717
Depreciation and amortization		1,416			3,531			-			-			4,947
Mortgage and loan interest		1,462			6,928			1,409			1,408			11,207
Deferred borrowing costs		22			1,900			35			-			1,957
Loan charges and prepayment penalties		-			3,730			39			-			3,769
Interest income		-			-			-			3,869			3,869
Gain on land sales		-			-			4,738			-			4,738
Segment operating income (loss)	$	147		$	(5,206	)	$	2,995		$	2,495		$	431
Capital expenditures		293			37			-			-			330
Real estate assets		169,990			564,506			191,015			-			925,511
Property Sales
Sales price	$	6,825		$	25,985		$	12,650		$	-		$	45,460
Cost of sale		7,362			23,946			7,912			-			39,220
Gain (loss) on sale	$	(537	)	$	2,039		$	4,738		$	-		$	6,240

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

	For the Three Months Ended
	June 30,
	2013			2012
Segment operating income (loss)	$	(2,694	)	$	431
Other non-segment items of income (expense)
General and administrative		(1,616	)		(771	)
Advisory fees		(2,071	)		(2,217	)
Other income		144			1,592
Earnings from unconsolidated joint ventures and investees		15			9
Loss on sale of investment		-			(16	)
Income tax benefit		6,427			1,200
Net Income from continuing operations	$	205		$	228

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

	June 30,
	2013		2012
Segment assets	$	836,255	$	925,511
Investments in real estate partnerships		5,470		5,637
Notes and interest receivable		59,145		77,748
Other assets		68,944		82,007
Assets held for sale		-		2,879
Total assets	$	969,814	$	1,093,782

	Commercial
For the Six Months Ended June 30, 2013	Properties			Apartments			Land			Other		Total
Rental and other property revenues	$	11,833		$	40,414		$	34		$	4	$	52,285
Property operating expenses		6,743			17,082			520			9		24,354
Depreciation and amortization		3,096			7,154			-			-		10,250
Mortgage and loan interest		3,134			11,930			2,779			1,403		19,246
Deferred borrowing costs		40			3,248			87			3		3,378
Loan charges and prepayment penalties		-			7,183			-			26		7,209
Interest income		-			-			-			4,296		4,296
Loss on land sales		-			-			(48	)		-		(48	)
Segment operating income (loss)	$	(1,180	)	$	(6,183	)	$	(3,400	)	$	2,859	$	(7,904	)
Capital expenditures		3,053			246			63,218			-		66,517
Real estate assets		150,234			515,080			170,941			-		836,255
Property Sales
Sales price	$	26,974		$	50,122		$	2,250		$	-	$	79,346
Cost of sale		14,914			37,917			2,298			-		55,129
Gain (loss) on sale	$	12,060		$	12,205		$	(48	)	$	-	$	24,217
	Commercial
For the Six Months Ended June 30, 2012	Properties			Apartments			Land			Other		Total
Rental and other property revenues	$	14,313		$	37,865		$	-		$	43	$	52,221
Property operating expenses		8,153			15,984			516			279		24,932
Depreciation and amortization		2,832			7,098			-			-		9,930
Mortgage and loan interest		2,991			13,926			2,982			2,499		22,398
Deferred borrowing costs		43			2,758			51			-		2,852
Loan charges and prepayment penalties		-			6,118			44			-		6,162
Interest income		-			-			-			7,098		7,098
Gain on land sales		-			-			5,160			-		5,160
Segment operating income (loss)	$	294		$	(8,019	)	$	1,567		$	4,363	$	(1,795	)
Capital expenditures		793			899			285			-		1,977
Real estate assets		169,990			564,506			191,015			-		925,511
Property Sales
Sales price	$	6,825		$	47,131		$	18,980		$	-	$	72,936
Cost of sale		7,362			41,503			13,820			-		62,685
Deferred current gain		-			-			-			-		-
Recognized prior deferred gain		-			-			-			-		-
Gain (loss) on sale	$	(537	)	$	5,628		$	5,160		$	-	$	10,251

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

	For the Six Months Ended
	June 30,
	2013			2012
Segment operating loss	$	(7,904	)	$	(1,795	)
Other non-segment items of income (expense)
General and administrative		(3,441	)		(3,213	)
Advisory fees		(4,209	)		(4,521	)
Other income		180			3,312
Earnings from unconsolidated joint ventures and investees		22			(63	)
Loss on sale of investment		-			(118	)
Income tax benefit		8,574			1,654
Loss from continuing operations	$	(6,778	)	$	(4,744	)

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

	June 30,
	2013		2012
Segment assets	$	836,255	$	925,511
Investments in real estate partnerships		5,470		5,637
Notes and interest receivable		59,145		77,748
Other assets		68,944		82,007
Assets held for sale		-		2,879
Total assets	$	969,814	$	1,093,782