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):

For the Three Months Ended June 30, 2011	Commercial 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		2,156		3,814		-		-		5,970
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)	$	1,670	$	(2,794)	$	(968)	$	(915)	$	(3,007)
Capital expenditures		190		89		-		-		279
Assets		232,430		622,628		217,162		-		1,072,220
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)
For the Three Months Ended June 30, 2010	Commercial 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	$	(3,007)	$	(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		(25,444)		-
Other income		100		249
Equity in earnings of investees		117		(50)
Deferred tax benefit		2,584		554
Loss from continuing operations	$	(30,864)	$	(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	$	1,072,220	$	1,193,182
Investments in real estate partnerships		7,441		8,938
Other assets		134,414		136,970
Assets held for sale		-		210,021
Total assets	$	1,214,075	$	1,549,111

For the Six Months Ended June 30, 2011	Commercial 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		4,518		7,514		-		-		12,032
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)	$	359	$	(3,969)	$	(3,421)	$	(1,061)	$	(8,092)
Capital expenditures		258		82		-		-		340
Assets		232,430		622,628		217,162		-		1,072,220
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)
For the Six Months Ended June 30, 2010	Commercial 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	$	(8,092)	$	(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		(31,503)		-
Other income		1,314		914
Equity in earnings of investees		57		(112)
Deferred tax benefit		1,637		431
Loss from continuing operations	$	(46,563)	$	(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	$	1,072,220	$	1,193,182
Investments in real estate partnerships		7,441		8,938
Other assets		134,414		136,970
Assets held for sale		-		210,021
Total assets	$	1,214,075	$	1,549,111