OPERATING SEGMENTS

9 Months Ended

Sep. 30, 2018

Segment Reporting [Abstract]

OPERATING SEGMENTS

NOTE 11. 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 September 30, 2018 and 2017, including segment assets and expenditures (dollars in thousands):

	Commercial
For the Three Months Ended September 30, 2018	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	8,228		$	25,275		$	—		$	2		$	33,505
Property operating expenses		(4,236	)		(11,345	)		(78	)		(206	)		(15,867	)
Depreciation and amortization		(2,523	)		(4,364	)		—			(4	)		(6,891	)
Mortgage and loan interest		(1,921	)		(5,722	)		(212	)		(7,699	)		(15,555	)
Interest income		—			—			—			4,021			4,021
Gain on land sales		—			—			12,243			—			12,243
Segment operating (loss) income	$	(452	)	$	3,844		$	11,953		$	(3,886	)	$	11,456
Balance Sheet Data as of September 30, 2018
Capital expenditures		962			—			(74	)		—			888
Property Sales
Sales price	$	—		$	—		$	35,518		$	—		$	35,518
Cost of sale		—			—			(23,275	)		—			(23,275	)
Gain (loss) on sale	$	—		$	—		$	12,243		$	—		$	12,243

	Commercial
For the Three Months Ended September 30, 2017	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	8,170		$	23,231		$	86		$	4		$	31,491
Property operating expenses		(4,252	)		(10,659	)		(115	)		(131	)		(15,157	)
Depreciation and amortization		(2,298	)		(4,028	)		—			—			(6,326	)
Mortgage and loan interest		(1,902	)		(5,168	)		(387	)		(6,788	)		(14,245	)
Interest income		—			—			—			3,175			3,175
Recognition of deferred gain on sale of income - producing properties		—			9,841			—			—			9,841
Gain on land sales		—			—			530			—			530
Segment operating (loss) income	$	(282	)	$	13,217		$	114		$	(3,740	)	$	9,309
Balance Sheet Data as of September 30, 2017
Capital expenditures	$	689		$	543		$	55		$	—		$	1,287
Property Sales
Sales price	$	—		$	—		$	850		$	—		$	850
Cost of sale		—			—			(320	)		—			(320	)
Recognized prior deferred gain		—			9,841			—			—			9,841
Gain on sale	$	—		$	9,841		$	530		$	—		$	10,371

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

	For the Three Months Ended  September 30,
	2018			2017
Segment operating income (loss)	$	11,456		$	9,309
Other non-segment items of income (expense)
General and administrative		(1,858	)		(1,594	)
Net income fee to related party		(383	)		(53	)
Advisory fee to related party		(2,735	)		(2,595	)
Other income		17,434			2,096
Income tax (expense)		(792	)		—
Earnings from unconsolidated joint ventures and investees		(4	)		7
Net income (loss) from continuing operations	$	23,118		$	7,170

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

	Commercial
For the Nine Months Ended September 30, 2018	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	23,187		$	73,001		$	—		$	6		$	96,194
Property operating expenses		(12,222	)		(33,127	)		(162	)		(301	)		(45,814	)
Depreciation and amortization		(7,138	)		(12,709	)		—			(12	)		(19,859	)
Mortgage and loan interest		(5,662	)		(16,520	)		(175	)		(21,465	)		(43,823	)
Interest income		—			—			—			11,441			11,441
Gain on land sales		—			—			13,578			—			13,578
Segment operating (loss) income	$	(1,835	)	$	10,645		$	13,241		$	(10,331	)	$	11,717
Balance Sheet as of September 30, 2018
Capital expenditures	$	3,688		$	(2,398	)	$	(692	)	$	—		$	598
Real estate assets	$	134,148		$	825,863		$	92,798		$	643		$	1,053,452
Property Sales
Sales price	$	2,313		$	8,512		$	38,503		$	—		$	49,328
Cost of sale		(2,313	)		(8,512	)		(24,925	)		—			(35,750	)
Gain on sale	$	—		$	—		$	13,578		$	—		$	13,578

	Commercial
For the Nine Months Ended September 30, 2017	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	25,308		$	68,922		$	87		$	11		$	94,328
Property operating expenses		(13,629	)		(31,615	)		(429	)		(583	)		(46,256	)
Depreciation and amortization		(6,903	)		(12,105	)		—			—			(19,008	)
Mortgage and loan interest		(5,629	)		(16,955	)		(1,248	)		(21,386	)		(45,218	)
Interest income		—			—			—			10,305			10,305
Recognition of deferred gain on sale of income - producing properties		—			9,841			—			—			9,841
Gain on land sales		—			—			500			—			500
Segment operating (loss) income	$	(853	)	$	18,088		$	(1,090	)	$	(11,653	)	$	4,492
Balance Sheet as of September 30, 2017
Capital expenditures	$	2,586		$	543		$	641		$	—		$	3,770
Real estate assets	$	145,321		$	665,972		$	117,642		$	—		$	928,935
Property Sales
Sales price	$	—		$	—		$	2,446		$	—		$	2,446
Cost of sale		—			—			(1,946	)		—			(1,946	)
Recognized prior deferred gain		—			9,841			—			—			9,841
Gain on sale	$	—		$	9,841		$	500		$	—		$	10,341

The tables below reconcile the segment information to the corresponding amounts in the Consolidated Statements of Operations:

	Nine Months Ended September 30,
	2018			2017
Segment operating income (loss)	$	11,717		$	4,492
Other non-segment items of income (expense)
General and administrative		(6,223	)		(4,669	)
Net income fee to related party		(489	)		(189	)
Advisory fee to related party		(8,209	)		(7,402	)
Other income		34,387			(312	)
Income tax (expense)		(792	)		—
Loss from unconsolidated joint ventures and investees		(2	)		(11	)
Net income (loss) from continuing operations	$	30,389		$	(8,091	)

The tables below reconcile the segment information to the corresponding amounts in the Consolidated Balance Sheets:

	As of September 30,
	2018		2017
Segment assets	$	1,053,452	$	928,935
Investments in real estate partnerships		2,774		2,435
Notes and interest receivable		82,239		62,698
Other assets		284,465		256,659
Total assets	$	1,422,930	$	1,250,727