OPERATING SEGMENTS

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

OPERATING SEGMENTS

NOTE 14.    

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 2018, 2017 and 2016 (dollars in thousands):

	Commercial
For the Year Ended December 31, 2018	Properties			Apartments			Land			Other			Total
Rental and other property revenues	$	33,113		$	87,832		$	—		$	10		$	120,955
Property operating expenses		(16,558	)		(42,134	)		(275	)		(453	)		(59,420	)
Depreciation		(9,530	)		(13,217	)		—			(14	)		(22,761	)
Mortgage and loan interest		(7,662	)		(20,671	)		(318	)		(30,221	)		(58,872	)
Interest income		—			—			—			15,793			15,793
Gain on land sales		—			—			17,404			—			17,404
Segment operating income (loss)	$	(637	)	$	11,810		$	16,811		$	(14,885	)	$	13,099
Capital expenditures		8,246			16,954			—			—			25,200
Assets	$	153,018		$	143,500		$	84,016		$	3,970		$	384,504
Property Sales
Sales price	$	—		$	—		$	43,311		$	—		$	43,311
Cost of sale		—			—			(25,907	)		—			(25,907	)
Gain on land sales	$	—		$	—		$	17,404		$	—		$	17,404

	Commercial
For the Twelve Months 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
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 Twelve Months 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
Cost of sale		(1,738	)		(3,905	)		(26,007	)		—			(31,650	)
Gain on sale	$	(238	)	$	16,445		$	3,121		$	—		$	19,328

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,
	2018			2017			2016
Segment operating income (loss)	$	13,099		$	5,263		$	13,780
Other non-segment items of income (expense)
General and administrative		(11,359	)		(6,269	)		(5,476	)
Net income fee to related party		(631	)		(250	)		(257	)
Advisory fee to related party		(10,663	)		(9,995	)		(9,490	)
Other income		28,150			625			1,816
Gain on disposition of 50% interest in VAA		154,126			—			—
Foreign currency translation gain (loss)		12,399			(4,536	)		—
Earnings from VAA		44			—			—
Earnings (losses) from other unconsolidated investees		1,085			26			(26	)
Income tax benefit (expense)		(3,210	)		(180	)		(24	)
Net income (loss) from continuing operations	$	183,040		$	(15,316	)	$	323

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,
	2018		2017		2016
Segment assets	$	384,504	$	979,870	$	891,173
Investments in unconsolidated subsidiaries and investees		90,571		2,472		2,446
Notes and interest receivable		83,541		70,166		79,308
Other assets and receivables		303,764		260,914		212,987
Total assets	$	862,380	$	1,313,422	$	1,185,914