Investment in Real Estate

3 Months Ended

Mar. 31, 2019

Investment in Real Estate

Investment in Real Estate

3. Investment in Real Estate

Real estate by property type and segment includes the following:

	March 31,		December 31,
	2019		2018
Development property:
Residential real estate	$	110,819	$	105,323
Hospitality		5,429		3,726
Commercial leasing and sales		78,949		73,128
Forestry		2,144		2,144
Corporate		2,557		2,497
Total development property		199,898		186,818
Operating property:
Residential real estate		7,344		7,344
Hospitality		93,046		93,046
Commercial leasing and sales		113,189		111,471
Forestry		20,141		19,765
Other		50		50
Total operating property		233,770		231,676
Less: Accumulated depreciation		68,953		67,500
Total operating property, net		164,817		164,176
Investment in real estate, net	$	364,715	$	350,994

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. Hospitality development property consists of the improvement and expansion of existing beach club property, land and construction costs related to two gulf-front vacation rental homes and development costs and improvements for 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 hospitality 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 hospitality operating property includes the WaterColor Inn, WaterSound Inn, golf courses, a beach club, marinas and certain vacation rental properties. 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.