Investment in Real Estate

6 Months Ended

Jun. 30, 2018

Investment in Real Estate

Investment in Real Estate

3. Investment in Real Estate

Real estate by property type and segment includes the following:

	June 30,		December 31,
	2018		2017
Development property:
Residential real estate	$	99,034	$	100,279
Resorts and leisure		7,438		4,131
Commercial leasing and sales		61,822		53,896
Forestry		2,143		2,488
Corporate		2,427		2,571
Total development property		172,864		163,365
Operating property:
Residential real estate		7,344		7,344
Resorts and leisure		103,670		103,616
Commercial leasing and sales		110,513		110,491
Forestry		19,755		19,510
Other		50		50
Total operating property		241,332		241,011
Less: Accumulated depreciation		74,739		71,752
Total operating property, net		166,593		169,259
Investment in real estate, net	$	339,457	$	332,624

Development property consists of land the Company is developing or intends to develop for sale or future operations and includes direct costs associated with the land, development and construction costs and indirect costs. Residential real estate includes residential communities. Resorts and leisure development property consists of the improvement and expansion of the existing beach club property, land and development costs and improvements to an existing restaurant and other property. Commercial leasing and sales development property primarily consists of land and development costs for commercial and industrial uses, including the Pier Park Crossings JV, land holdings near the Northwest Florida Beaches International Airport and Port of Port St. Joe. Development property in the resorts and leisure and commercial leasing and sales segments will be reclassified as operating property as it is placed into service.

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, WaterSound Inn, certain vacation rental properties, golf courses, a beach club and marinas. Commercial leasing and sales 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, VentureCrossings and Beckrich Office Park, as well as other properties. 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.