Investment in Real Estate

12 Months Ended

Dec. 31, 2016

Real Estate [Abstract]

Investment in Real Estate

Investment in Real Estate

Real estate by property type and segment includes the following:

	December 31, 2016		December 31, 2015
Development property:
Residential real estate	$	101,292	$	99,413
Commercial real estate	57,932		56,587
Resorts and leisure	263		—
Leasing operations	432		360
Forestry	2,492		2,681
Corporate	2,438		2,211
Total development property	164,849		161,252
Operating property:
Residential real estate	8,097		8,091
Resorts and leisure	107,029		109,425
Leasing operations	82,336		79,550
Forestry	19,608		19,300
Other	50		50
Total operating property	217,120		216,416
Less: Accumulated depreciation	67,349		64,069
Net operating property	149,771		152,347
Investment in real estate, net	$	314,620	$	313,599

Development property consists of land the Company is developing or intends to develop for sale or future operations. Residential real estate includes primary residential and resort residential communities and includes costs directly associated with the land, development and construction of these communities, including common development costs such as roads, utilities and amenities and indirect costs such as development overhead, capitalized interest, marketing and project administration. Commercial real estate includes land for commercial and industrial uses, including land holdings near the Northwest Florida Beaches International Airport and Port of Port St. Joe, and includes costs directly associated with the land and development costs for these properties, which also include common development costs such as roads and utilities. Resorts and leisure development property consists of improvements and expansion of existing beach club property. Leasing development property primarily includes the land development and construction for the consolidated Pier Park North JV. Development property in the leasing operations and resorts and leisure segments will be reclassified as operating property as it is placed into service.

Operating property includes the following components:

	December 31, 2016		December 31, 2015
Land and land improvements	$	73,239	$	73,161
Buildings and building improvements	133,678		133,399
Timber	10,203		9,856
	217,120		216,416
Less: Accumulated depreciation	67,349		64,069
Total operating property, net	$	149,771	$	152,347

Operating property includes property that the Company uses for operations and activities. Residential real estate operating property consists primarily of residential utility assets. The resorts and leisure operating property includes the WaterColor Inn, vacation rental properties, golf courses, a beach club and marinas. Leasing operating property includes property developed or purchased by the Company and used for retail and commercial rental purposes, including property in the Pier Park North JV and Windmark JV. Forestry operating property includes the Company’s timberlands. Operating property may be sold in the future as part of the Company’s principal real estate business.

Depreciation expense related to real estate investments was $6.0 million, $6.2 million and $5.7 million in 2016, 2015 and 2014, respectively. Depletion and amortization expense related to our timber operations was $0.5 million in each 2016, 2015 and 2014.