Investment in Real Estate

9 Months Ended

Sep. 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:

	September 30,		December 31,
	2018		2017
Development property:
Residential real estate	$	103,384	$	100,279
Resorts and leisure		2,427		4,131
Commercial leasing and sales		69,086		53,896
Forestry		2,146		2,488
Corporate		2,464		2,571
Total development property		179,507		163,365
Operating property:
Residential real estate		7,344		7,344
Resorts and leisure		100,948		103,616
Commercial leasing and sales		111,296		110,491
Forestry		19,874		19,510
Other		50		50
Total operating property		239,512		241,011
Less: Accumulated depreciation		70,123		71,752
Total operating property, net		169,389		169,259
Investment in real estate, net	$	348,896	$	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 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.