OPERATING SEGMENTS

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

OPERATING SEGMENTS

NOTE 9. 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, 2018 and 2017, including segment assets and expenditures (dollars in thousands):

	Commercial
For the Three Months Ended March 31, 2018	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	7,555		$	23,525		$	—		$	2		$	31,082
Property operating expenses		(3,749	)		(10,582	)		(30	)		(94	)		(14,455	)
Depreciation		(2,293	)		(4,149	)		—			(4	)		(6,446	)
Mortgage and loan interest		(1,849	)		(5,456	)		(110	)		(6,678	)		(14,093	)
Interest income		—			—			—			3,876			3,876
Gain on land sales		—			—			1,335			—			1,335
Segment operating income (loss)	$	(336)		$	3,338		$	1,195		$	(2,898	)	$	1,299
Capital expenditures		633			—			—			—			633
Real estate assets		135,805			728,525			113,004			651			977,985
Property Sales
Sales price	$	—		$	2,512		$	2,984		$	—		$	5,496
Cost of sale		—			(2,512)			(1,649	)		—			(4,161	)
Gain on sale	$	—		$	—		$	1,335		$	—		$	1,335

	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	)		(6,758	)		(551	)		(6,275	)		(15,190	)
Gain on land sales		—			—			445			—			445
Segment operating income (loss)	$	326		$	1,111		$	(265	)	$	(3,153	)	$	(1,981	)
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 (loss) on sale	$	—		$	—		$	445		$	—		$	445

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, 2018 and 2017 (dollars in thousands):

	For the Three Months Ended
	March 31,
	2018			2017
Segment operating income (loss)	$	1,299		$	(1,981	)
Other non-segment items of income (expense)
General and administrative		(2,192	)		(1,780	)
Net income fee to related party		(53	)		(60	)
Advisory fee to related party		(2,748	)		(2,305	)
Other income		3,582			1,119
Loss from unconsolidated joint ventures and investees		11			(8	)
Net loss from continuing operations	$	(101)		$	(5,015	)

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,
	2018		2017
Segment assets	$	977,985	$	901,882
Investments in real estate partnerships		2,483		2,438
Notes and interest receivable		83,342		76,856
Other assets		266,779		246,539
Total assets	$	1,330,589	$	1,227,715