OPERATING SEGMENTS

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

OPERATING SEGMENTS

NOTE 8. 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 March 31, 2017 and 2016, including segment assets and expenditures (dollars in thousands):

	Commercial
For the Three Months Ended March 31, 2017	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	8,872		$	22,660		$	—		$	3		$	31,535
Property operating expenses		(4,683	)		(10,745	)		(159	)		(302	)		(15,889	)
Depreciation		(2,257	)		(4,046	)		—			—			(6,303	)
Mortgage and loan interest		(1,606	)		(6,759	)		(551	)		(6,251	)		(15,167	)
Interest income		—			—			—			3,421			3,421
Gain on land sales		—			—			445			—			445
Segment operating income (loss)	$	326		$	1,110		$	(265	)	$	(3,129	)	$	(1,958	)
Capital expenditures		1,343						399						1,742
Real estate assets		148,115			635,845			117,922			—			901,882
Property Sales
Sales price	$	—		$	—		$	1,089		$	—		$	1,089
Cost of sale		—			—			(644	)		—			(644	)
Gain on sale	$	—		$	—		$	445		$	—		$	445

	Commercial
For the Three Months Ended March 31, 2016	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	7,588		$	21,315		$	—		$	—		$	28,903
Property operating expenses		(4,858	)		(9,394	)		(731	)		20			(14,963	)
Depreciation		(2,273	)		(3,535	)		—			—			(5,808	)
Mortgage and loan interest		(1,950	)		(6,157	)		(530	)		(4,529	)		(13,166	)
Interest income		—			—			—			3,847			3,847
Loss on sale of income producing properties		(244	)		—			—			—			(244	)
Gain on land sales		—			—			1,652			—			1,652
Segment operating income (loss)	$	(1,737	)	$	2,229		$	391		$	(662	)	$	221
Capital expenditures		976						770						1,746
Real estate assets		150,680			558,721			136,076			—			845,477
Property Sales
Sales price	$	1,500		$	—		$	4,180		$	—		$	5,680
Cost of sale		(1,744	)		—			(2,528	)		—			(4,272	)
Gain (loss) on sale	$	(244	)	$	—		$	1,652		$	—		$	1,408

The table below reflects the reconciliation of segment information to the corresponding amounts in the Consolidated Statements of Operations for the three months ended March 31, 2017 and 2016 (dollars in thousands):

	For the Three Months Ended
	March 31,
	2017			2016
Segment operating income (loss)	$	(1,958	)	$	221
Other non-segment items of income (expense)
General and administrative		(1,780	)		(1,609	)
Net income fee to related party		(60	)		(72	)
Advisory fee to related party		(2,805	)		(2,371	)
Other income		1,068			267
Loss from unconsolidated joint ventures and investees		(8)			(2	)
Income tax benefit		—			1
Net loss from continuing operations	$	(5,543	)	$	(3,565	)

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

	As of March 31,
	2017		2016
Segment assets	$	901,882	$	845,477
Investments in real estate partnerships		2,438		2,460
Notes and interest receivable		76,856		67,557
Other assets		246,487		187,226
Total assets	$	1,227,663	$	1,102,720