OPERATING SEGMENTS

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

OPERATING SEGMENTS

NOTE 11.    OPERATING SEGMENTS

Our segments are based on management’s method of internal reporting which classifies its operations by property type. The segments are commercial, apartments, land and other. 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 expenses. Management evaluates the performance of each of the operating segments and allocates 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, 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.

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

Presented below is the Company’s reportable segments’ operating income including segment assets and expenditures for the years 2017, 2016 and 2015 (dollars in thousands):

	Commercial
For the Year Ended December 31, 2017	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	32,323		$	92,807		$	87		$	16		$	125,233
Property operating expenses		(17,724	)		(43,677	)		(667	)		(988	)		(63,056	)
Depreciation		(9,200	)		(16,354	)		—			(4	)		(25,558	)
Mortgage and loan interest		(7,528	)		(22,346	)		(1,588	)		(28,482	)		(59,944	)
Interest income		—			—			—			13,862			13,862
Recognition of deferred gain on sale of income producing properties		—			9,842			—			—			9,842
Gain on land sales		—			—			4,884			—			4,884
Segment operating income (loss)	$	(2,129	)	$	20,272		$	2,716		$	(15,596	)	$	5,263
Capital expenditures	$	3,157		$	1,402		$	609		$	—		$	5,168
Assets	$	137,157		$	726,852		$	115,205		$	656		$	979,870
Property Sales
Sales price	$	—		$	—		$	11,177		$	—		$	11,177
Less: Cost of sale		—			—			(6,293	)		—			(6,293	)
Recognized prior deferred gain		—			9,842			—			—			9,842
Gain on sale	$	—		$	9,842		$	4,884		$	—		$	14,726

	Commercial
For the Year Ended December 31, 2016	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	31,864		$	86,603		$	—		$	4		$	118,471
Property operating expenses		(19,476	)		(40,786	)		(1,634	)		(22	)		(61,918	)
Depreciation		(8,924	)		(14,759	)		—			—			(23,683	)
Mortgage and loan interest		(7,167	)		(25,381	)		(1,746	)		(18,794	)		(53,088	)
Interest income		—			—			—			14,670			14,670
Gain (loss) on sale of income producing properties		(238	)		16,445			—			—			16,207
Gain on land sales		—			—			3,121			—			3,121
Segment operating income (loss)	$	(3,941	)	$	22,122		$	(259	)	$	(4,142	)	$	13,780
Capital expenditures	$	4,577		$	863		$	269		$	—		$	5,709
Assets	$	148,689		$	624,433		$	118,051		$	—		$	891,173
Property Sales
Sales price	$	1,500		$	20,350		$	29,128		$	—		$	50,978
Less: Cost of sale		(1,738	)		(3,905	)		(26,007	)		—			(31,650	)
Gain (loss) on sale	$	(238	)	$	16,445		$	3,121		$	—		$	19,328

	Commercial
For the Year Ended December 31, 2015	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	29,308		$	72,809		$	—		$	103		$	102,220
Property operating expenses		(16,838	)		(34,437	)		(712	)		(270	)		(52,257	)
Depreciation		(8,861	)		(12,438	)		—			—			(21,299	)
Mortgage and loan interest		(6,891	)		(23,506	)		(4,214	)		(11,930	)		(46,541	)
Interest income		—			—			—			10,687			10,687
Gain on land sales		—			—			18,911			—			18,911
Segment operating income (loss)	$	(3,282	)	$	2,428		$	13,985		$	(1,410	)	$	11,721
Capital expenditures	$	8,118		$	1,780		$	2,621		$	—		$	12,519
Assets	$	153,270		$	553,860		$	136,889		$	—		$	844,019
Property Sales
Sales price	$	—		$	11,129		$	102,898		$	—		$	114,027
Less: Cost of sale		—			(10,394	)		(83,987	)		—			(94,381	)
Gain on sale	$	—		$	735		$	18,911		$	—		$	19,646

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

	For the Years Ended December 31,
	2017			2016			2015
Segment operating income	$	5,263		$	13,780		$	11,721
Other non-segment items of income (expense)
General and administrative		(6,269	)		(5,476	)		(5,508	)
Provision on impairment of real estate assets		—			—			(5,300	)
Net income fee to related party		(250	)		(257	)		(187	)
Advisory fee to related party		(9,995	)		(9,490	)		(8,368	)
Other income		(3,911	)		1,816			70
Loss from unconsolidated joint ventures and investees		26			(26	)		41
Litigation settlement		—			—			(352	)
Income tax benefit (expense)		5,252			(24	)		(517	)
Net income (loss) from continuing operations	$	(9,884	)	$	323		$	(8,400	)

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

	For the Years Ended December 31,
	2017		2016		2015
Segment assets	$	979,870	$	891,173	$	844,019
Investments in real estate partnerships		2,472		2,446		5,243
Notes and interest receivable		70,166		79,308		69,551
Other assets		266,166		212,987		191,391
Total assets	$	1,318,674	$	1,185,914	$	1,110,204