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OPERATING SEGMENTS
 9 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
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 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 September 30, 2016 and 2015, including capital expenditures and segment assets (dollars in thousands):

 

   Commercial            
For the Three Months Ended September 30, 2016  Properties  Apartments  Land  Other  Total
Rental and other property revenues  $7,368   $22,408   $—     $—     $29,776 
Property operating expenses   (4,500)   (10,696)   (209)   (8)   (15,413)
Depreciation and amortization   (2,207)   (3,807)   —      —      (6,014)
Mortgage and loan interest   (1,700)   (6,424)   (420)   (5,024)   (13,568)
Interest income   —      —      —      4,251    4,251 
Gain on sale of income producing properties        —     —      —      —   
Gain  on land sales   —      —      555    —      555 
Segment operating income (loss)  $(1,039)  $1,481   $(74)  $(781)  $(413)
                          
Balance Sheet Data as of September 30, 2016                         
Capital expenditures  $3,700   $(146)  $1,873   $—     $5,427 
Real estate assets  $149,705   $615,822   $134,321   $—     $899,848 
                          
Property Sales                         
Sales price  $—     $—     $805   $—     $805 
Cost of sale   —      —      (250)        (250)
Gain on sale  $—     $—     $555   $—     $555 
                          
                          
    Commercial                     
For the Three Months Ended September 30, 2015   Properties    Apartments    Land    Other    Total 
Rental and other property revenues  $7,820   $19,672   $—     $47   $27,539 
Property operating expenses   (4,202)   (9,374)   (349)   (270)   (14,195)
Depreciation and amortization   (2,326)   (4,229)   —      —      (6,555)
Mortgage and loan interest   (1,865)   (6,299)   (1,242)   (4,144)   (13,550)
Interest income   —      —      —      2,505    2,505 
Gain on sale of income producing properties   —      735    —      —      735 
Gain on land sales   —      —      997    —      997 
Segment operating income (loss)  $(573)  $505   $(594)  $(1,862)  $(2,524)
                          
Balance Sheet Data as of September 30, 2015                         
Capital expenditures  $1,404   $(43)  $1,461   $—     $2,822 
Real estate assets  $159,976   $501,932   $153,811   $—     $815,719 
                          
Property Sales                         
Sales price  $—     $11,129   $2,851   $—     $13,980 
Cost of sale   —      (10,394)   (1,854)   —      (12,248)
Gain on sale  $—     $735   $997   $—     $1,732 

 

The table below reflects the reconciliation of segment information to the corresponding amounts in the Consolidated Statements of Operations for the three months ended September 30, 2016 and 2015 (dollars in thousands):

 

   Three Months Ended September 30,
   2016  2015
Segment operating income  $(413)  $(2,524)
Other non-segment items of income (expense)          
General and administrative   (1,541)   (1,146)
Net income fee to related party   (67)   (51)
Advisory fee to related party   (2,394)   (2,666)
Other income   8    (77)
Earnings from unconsolidated joint ventures and investees   —      (4)
Litigation settlement   —      (85)
Income tax expense   (25)   16 
Net loss from continuing operations  $(4,432)  $(6,537)

 

Presented below is our reportable segments’ operating income for the nine months ended September 30, 2016 and 2015, including capital expenditures and segment assets (dollars in thousands):

 

   Commercial            
For the Nine Months Ended September 30, 2016  Properties  Apartments  Land  Other  Total
Rental and other property revenues  $23,620   $65,578   $—     $2   $89,200 
Property operating expenses   (13,953)   (30,258)   (1,079)   (5)   (45,295)
Depreciation and amortization   (6,707)   (10,958)   —      —      (17,665)
Mortgage and loan interest   (5,347)   (18,689)   (1,335)   (13,455)   (38,826)
Interest income   —      —      —      11,386    11,386 
Gain on sale of income-producing properties   (243)   5,168         —      4,925 
Gain on land sales   —      —      3,925    —      3,925 
Segment operating income (loss)  $(2,630)  $10,841   $1,511   $(2,072)  $7,650 
                          
Balance Sheet as of September 30, 2016                         
Capital expenditures  $3,700   $(146)  $1,873   $—     $5,427 
Real estate assets  $149,705   $615,822   $134,321   $—     $899,848 
                          
Property Sales                         
Sales price  $1,500   $8,100   $8,139   $—     $17,739 
Cost of sale   (1,743)   (2,932)   (4,214)   —      (8,889)
Gain (loss) on sale  $(243)  $5,168   $3,925   $—     $8,850 
                          
                          
    Commercial                     
For the Nine Months Ended September 30, 2015   Properties    Apartments    Land    Other    Total 
Rental and other property revenues  $21,284   $52,215   $—     $100   $73,599 
Property operating expenses   (11,350)   (23,725)   (659)   (253)   (35,987)
Depreciation and amortization   (6,417)   (9,888)   —      —      (16,305)
Mortgage and loan interest   (5,110)   (15,664)   (3,439)   (7,740)   (31,953)
Interest income   —      —      —      9,260    9,260 
Gain on sale of income producing properties   —      735    —      —      735 
Gain on land sales   —      —      5,124    —      5,124 
Segment operating income (loss)  $(1,593)  $3,673   $1,026   $1,367   $4,473 
                          
Balance Sheet as of September 30, 2015                         
Capital expenditures  $7,536   $1,712   $2,772   $—     $12,020 
Real estate assets  $159,976   $501,932   $153,811   $—     $815,719 
                          
Property Sales                         
Sales price  $—     $11,129   $11,987   $—     $23,116 
Cost of sale   —      (10,394)   (6,863)   —      (17,257)
Gain on sale  $—    $735  $5,124  $—    $5,859 

 

The table below reflects the reconciliation of segment information to the corresponding amounts in the Consolidated Statements of Operations for the nine months ended September 30, 2016 and 2015 (dollars in thousands):

 

   Nine Months Ended September 30,
   2016  2015
Segment operating income  $7,650   $4,473 
Other non-segment items of income (expense)          
General and administrative   (4,754)   (4,191)
Net income fee to related party   (193)   (142)
Advisory fee to related party   (7,096)   (6,561)
Other income   1,178    4 
Earnings (loss) from unconsolidated joint ventures and investees   (2)   39 
Litigation settlement   —      (203)
Income tax benefit   (24)   107 
Net loss from continuing operations  $(3,241)  $(6,474)

 

The table below reflects the reconciliation of segment information to the corresponding amounts in the Consolidated Balance Sheets (dollars in thousands):

 

   As of September 30,
   2016  2015
Segment assets  $899,848   $815,719 
Investments in real estate partnerships   2,469    2,178 
Notes and interest receivable   72,704    65,801 
Other assets   176,527    192,879 
Total assets  $1,151,548   $1,076,577