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OPERATING SEGMENTS
 6 Months Ended
Jun. 30, 2020
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 June 30, 2020 and 2019, including segment assets and expenditures (dollars in thousands):

 

    Commercial                          
For the Three Months Ended June 30, 2020   Properties     Apartments     Land     Other     Total  
Rental and other property revenues   $ 7,863     $ 4,084     $ —     $ —     $ 11,947  
Property operating expenses     (4,070 )     (1,930 )     (95 )     285       (5,810 )
Depreciation     (2,480 )     (938 )     —       —       (3,418 )
Mortgage and loan interest     (1,345 )     (1,177 )     (219 )     (5,000 )     (7,741 )
Interest income     —       —       —       4,227       4,227  
Gain on land sales     —       —       5,339       —       5,339  
Segment operating (loss) income   $ (32 )   $ 39     $ 5,025     $ (488 )   $ 4,544  
Capital expenditures   $ 232     $ 7,400     $ 664     $ —     $ 8,296  
Assets   $ 146,576     $ 180,835     $ 67,533     $ —     $ 394,944  
                                         
Property Sales                                        
Sales price   $ —     $ 2,426     $ 6,477     $ —     $ 8,903  
Cost of sale     —       (2,426 )     (1,138 )     —       (3,564 )
Gain on land sales   $ —     $ —     $ 5,339     $ —     $ 5,339  

 

    Commercial                          
For the Three Months Ended June 30, 2019   Properties     Apartments     Land     Other     Total  
Rental and other property revenues   $ 8,020     $ 3,818     $ —     $ 2     $ 11,840  
Property operating expenses     (4,410 )     (2,017 )     (88 )     (807 )     (7,322 )
Depreciation     (2,732 )     (707 )     —       —       (3,439 )
Mortgage and loan interest     (1,947 )     (1,002 )     (270 )     (4,427 )     (7,646 )
Interest income     —       —       —       4,878       4,878  
Loss on sale of income producing property     —       (80 )     —       —       (80 )
Gain on land sales     —       —       2,133       —       2,133  
Segment operating (loss) income   $ (1,069 )   $ 12     $ 1,775     $ (354 )   $ 364  
Capital expenditures   $ 346     $ 9,596     $ 353     $ —     $ 10,295  
Assets   $ —     $ —     $ —     $ —     $ —  
                                         
Property Sales                                        
Sales price   $ —     $ 3,096     $ 7,602     $ —     $ 10,698  
Cost of sale     —       (3,176 )     (5,469 )     —       (8,645 )
Gain on sale   $ —     $ (80 )   $ 2,133     $ —     $ 2,053  

  

The 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, 2020 and 2019 (dollars in thousands):

 

    For the Three Months Ended June 30,  
    2020     2019  
Segment operating income   $ 4,544     $ 364  
Other non-segment items of income (expense)                
General and administrative     (1,405 )     (2,211 )
Franchise taxes and other expenses     —       —  
Net income fee to related party     (112 )     (90 )
Advisory fee to related party     (2,051 )     (2,158 )
Other income     1,484       688  
Foreign currency translation gain (loss)     (5,599 )     (2,325 )
Loss from joint venture     (735 )     (236 )
Losses from other unconsolidated investees     7       2  
State income tax expense     (49 )     —  
Net income (loss) from continuing operations   $ (3,916 )   $ (5,966 )

 

Presented below is our reportable segments’ operating income for the six months ended June 30, 2020 and 2019, including segment assets and expenditures (dollars in thousands):

 

    Commercial                          
For the Six Months Ended June 30, 2020   Properties     Apartments     Land     Other     Total  
Rental and other property revenues   $ 15,747     $ 8,116     $ —     $ 2     $ 23,865  
Property operating expenses     (8,180 )     (3,860 )     (193 )     114       (12,119 )
Depreciation     (5,002 )     (1,810 )     —       —       (6,812 )
Mortgage and loan interest     (2,717 )     (2,349 )     (425 )     (10,217 )     (15,708 )
Interest income     —       —       —       8,754       8,754  
Gain on land sales     —       —       9,477       —       9,477  
Segment operating (loss) income   $ (152 )   $ 97     $ 8,859     $ (1,347 )   $ 7,457  
Capital expenditures   $ 941     $ 14,433     $ 2,664     $ —     $ 18,038  
Assets   $ 146,576     $ 180,835     $ 67,533     $ —     $ 394,944  
                                         
Property Sales                                        
Sales price   $ —     $ 2,426     $ 12,189     $ —     $ 14,615  
Cost of sale     —       (2,426 )     (2,712 )     —       (5,138 )
Gain on land sales   $ —     $ —     $ 9,477     $ —     $ 9,477  

 

  Commercial                          
For the Six Months Ended June 30, 2019   Properties     Apartments     Land     Other     Total  
Rental and other property revenues   $ 16,247     $ 7,518     $ —     $ 4     $ 23,769  
Property operating expenses     (8,346 )     (4,075 )     (45 )     (853 )     (13,319 )
Depreciation     (5,107 )     (1,441 )     —       —       (6,548 )
Mortgage and loan interest     (3,914 )     (1,936 )     (523 )     (9,232 )     (15,605 )
Interest income     —       —       —       9,436       9,436  
Loss on sale of income producing property     —       (80 )     —       —       (80 )
Gain on land sales     —       —       4,349       —       4,349  
Segment operating (loss) income   $ (1,120 )   $ (14 )   $ 3,781     $ (645 )   $ 2,002  
Capital expenditures   $ 4,045     $ 17,434     $ 2,832     $ —     $ 24,311  
Assets   $ 152,852     $ 153,950     $ 79,699     $ —     $ 386,501  
                                         
Property Sales                                        
Sales price   $ —     $ 3,096     $ 16,317     $ —     $ 19,413  
Cost of sale     —       (3,176 )     (11,968 )     —       (15,144 )
Gain on sale   $ —     $ (80 )   $ 4,349     $ —     $ 4,269  

 

The following table reconciles segment information to the corresponding amounts in the Consolidated Statements of Operations for the six months ended June 30, 2020 and 2019 (dollars in thousands):

 

    For the Six Months Ended June 30,  
    2020     2019  
Segment operating income   $ 7,457     $ 2,002  
Other non-segment items of income (expense)                
General and administrative     (3,926 )     (4,539 )
Franchise taxes and other expenses     (1,494 )     —  
Net income fee to related party     (198 )     (190 )
Advisory fee to related party     (4,146 )     (3,806 )
Other income     2,319       4,580  
Foreign currency translation gain (loss)     2,244       (8,143 )
Loss from joint venture     (1,111 )     (1,291 )
Losses from other unconsolidated investees     6       (5 )
State income tax expense     (296 )     —  
Net income (loss) from continuing operations   $ 855     $ (11,392 )

 

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

 

    As of June 30,  
    2020     2019  
Segment assets   $ 394,944     $ 386,501  
Investments in unconsolidated subsidiaries and investees     75,411       89,245  
Notes and interest receivable     135,664       116,864  
Other assets and receivables     258,148       261,277  
Total assets   $ 864,167     $ 853,887