OPERATING SEGMENTS

6 Months Ended

Jun. 30, 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 notes receivable and corporate debt. 

Presented below is our reportable segments’ operating income for the three months ended June 30, 2018 and 2017, including segment assets and expenditures (dollars in thousands):

For the Three Months Ended June 30, 2018	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	7,404		$	24,201		$	—		$	2		$	31,607
Property operating expenses		(4,238	)		(11,199	)		(55	)		—			(15,492	)
Depreciation and amortization		(2,323	)		(4,195	)					(4	)		(6,522	)
Mortgage and loan interest		(1,893	)		(5,342	)		148			(7,088	)		(14,175	)
Interest income		—			—			—			3,544			3,544
Segment operating (loss) income	$	(1,050	)	$	3,465		$	93		$	(3,546	)	$	(1,038	)
Balance Sheet Data as of June 30, 2018
Capital expenditures		—			2,092			—			—			2,092
Property Sales
Sales price	$	2,313		$	—		$	—		$	—		$	2,313
Cost of sale		(2,313	)		—			—			—			(2,313	)
Gain (loss) on sale	$	—		$	—		$	—		$	—		$	—

For the Three Months Ended June 30, 2017		Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	8,267		$	23,030		$	—		$	5		$	31,302
Property operating expenses		(4,694	)		(10,211	)		(155	)		(150	)		(15,210	)
Depreciation and amortization		(2,348	)		(4,030	)		—			—			(6,378	)
Mortgage and loan interest		(2,121	)		(5,028	)		(310	)		(8,324	)		(15,783	)
Interest income		—			—			—			3,709			3,709
Loss on land sales		—			—			(476	)		—			(476	)
Segment operating (loss) income	$	(896	)	$	3,761		$	(941	)	$	(4,760	)	$	(2,836	)
Balance Sheet Data as of June 30, 2017
Capital expenditures	$	555		$	—		$	186		$	—		$	741
Property Sales
Sales price	$	—		$	—		$	507		$	—		$	507
Cost of sale		—			—			(983	)		—			(983	)
Loss on land sales	$	—		$	—		$	(476	)	$	—		$	(476	)

The following table below provides the reconciliation of segment information to the corresponding amounts in the Consolidated Statements of Operations for the three months ended June 30, 2018 and 2017 (dollars in thousands):

	For the Three Months Ended  June 30,
	2018			2017
Segment operating income (loss)	$	(1,038	)	$	(2,836	)
Other non-segment items of income (expense)
General and administrative		(2,173	)		(1,295	)
Provision on impairment of notes receivable and real estate assets
Net income fee to related party		(53	)		(76	)
Advisory fee to related party		(2,726	)		(2,501	)
Other income		13,371			(3,529	)
Loss from unconsolidated joint ventures and investees		(9	)		(10	)
Net income (loss) from continuing operations	$	7,372		$	(10,247	)

Presented below is our reportable segments’ operating income for the six months ended June 30, 2018 and 2017, including segment assets and expenditures (dollars in thousands):

For the Six Months Ended June 30, 2018	Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	14,959		$	47,726		$	—		$	4		$	62,689
Property operating expenses		(7,986	)		(21,782	)		(84	)		(95	)		(29,947	)
Depreciation and amortization		(4,616	)		(8,344	)		—			(8	)		(12,968	)
Mortgage and loan interest		(3,742	)		(10,798	)		36			(13,764	)		(28,268	)
Interest income		—			—			—			7,420			7,420
Gain on land sales		—			—			1,335			—			1,335
Segment operating (loss) income	$	(1,385	)	$	6,802		$	1,287		$	(6,443	)	$	261
Balance Sheet as of June 30, 2018
Capital expenditures	$	2,725		$	—		$	—		$	—		$	2,725
Real estate assets		135,294			764,672			108,467			648			1,009,081
Property Sales
Sales price	$	2,313		$	8,512		$	2,984		$	—		$	13,809
Cost of sale		(2,313	)		(8,512	)		(1,649	)		—			(12,474	)
Gain on sale	$	—		$	—		$	1,335		$	—		$	1,335

For the Six Months Ended June 30, 2017		Commercial Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	17,138		$	45,691		$	—		$	8		$	62,837
Property operating expenses		(9,377	)		(20,956	)		(314	)		(452	)		(31,099	)
Depreciation and amortization		(4,604	)		(8,077	)		—			—			(12,681	)
Mortgage and loan interest		(3,727	)		(11,787	)		(860	)		(14,599	)		(30,973	)
Interest income		—			—			—			7,130			7,130
Loss on land sales		—			—			(31	)		—			(31	)
Segment operating (loss) income	$	(570	)	$	4,871		$	(1,205	)	$	(7,913	)	$	(4,817	)
Balance Sheet as of June 30, 2017
Capital expenditures	$	1,898		$	—		$	585		$	—		$	2,483
Real estate assets	$	146,621		$	656,455		$	117,753		$	—		$	920,829
Property Sales
Sales price	$	—		$	—		$	1,596		$	—		$	1,596
Cost of sale		—			—			(1,627	)		—			(1,627	)
Loss on sale	$	—		$	—		$	(31	)	$	—		$	(31	)

The following table reconciles segment information to the corresponding amounts in the Consolidated Statements of Operations for the six months ended June 30, 2018 and 2017 (dollars in thousands):

	Six Months Ended June 30,
	2018			2017
Segment operating income (loss)	$	261		$	(4,817	)
Other non-segment items of income (expense)
General and administrative		(4,365	)		(3,075	)
Net income fee to related party		(106	)		(136	)
Advisory fee to related party		(5,474	)		(4,806	)
Other income		16,953			(2,410	)
Loss from unconsolidated joint ventures and investees		2			(18	)
Net income (loss) from continuing operations	$	7,271		$	(15,262	)

The following table reconciles segment information to the corresponding amounts in the Consolidated Balance Sheets (dollars in thousands):

	As of June 30,
	2018		2017
Segment assets	$	1,009,081	$	920,829
Investments in real estate partnerships		2,474		2,428
Notes and interest receivable		83,463		78,868
Other assets		273,727		247,966
Total assets	$	1,368,745	$	1,250,091