Notes Receivable, net

3 Months Ended

Mar. 31, 2013

Notes Receivable, net

4. Notes Receivable, net

Notes receivable, net consists of the following:

	March 31, 2013		December 31, 2012
Pier Park Community Development District notes, non-interest bearing, due December 2024, net of unamortized discount of $0.1 million, effective rates 5.73% — 8.0%	$	2,759	$	2,758
Interest bearing builder note — 4.0% at March 31, 2013, due February 2015, net of deferred profit of $1.2 million		1,184		—
Various mortgage notes, secured by certain real estate bearing interest at various rates		1,188		1,217
Total notes receivable, net	$	5,131	$	3,975

Deferred profit of $1.2 million at March 31, 2013 represents deferred profit on a transaction in which an insufficient down payment was received and the buyer does not have a contractual obligation to make an annual principal and interest payment on the mortgage note receivable of $2.4 million financed by the Company. The Company will recognize the $1.2 million of deferred profit when the Company receives the principal payments on the mortgage note receivable.

The Company evaluates the carrying value of the notes receivable and the need for an allowance for doubtful notes receivable at each reporting date. Notes receivable balances are adjusted to net realizable value based upon a review of entity specific facts or when terms are modified.