Investment in Real Estate

12 Months Ended

Dec. 31, 2021

Investment in Real Estate

Investment in Real Estate

3. Investment in Real Estate

Real estate, excluding unconsolidated JVs, by property type and segment includes the following:

	December 31,		December 31,
	2021		2020
Development property:
Residential	$	122,404	$	116,911
Hospitality		137,089		51,113
Commercial		85,931		123,389
Other		3,232		2,691
Total development property		348,656		294,104
Operating property:
Residential		13,253		13,254
Hospitality		124,449		103,687
Commercial		290,794		216,439
Other		127		129
Total operating property		428,623		333,509
Less: Accumulated depreciation		87,166		75,960
Total operating property, net		341,457		257,549
Investment in real estate, net	$	690,113	$	551,653

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, as well as development, construction and indirect costs. Residential development property includes existing and planned residential homesites and related infrastructure. Hospitality development property consists of land, improvements and construction and development costs primarily related to uncompleted hotels, resorts, club amenities and marinas. Commercial development property primarily consists of land and construction and development costs for planned commercial, multi-family and industrial uses. Development property in the hospitality and commercial segments will be reclassified as operating property as it is placed into service.

Operating property includes the following components:

		December 31,		December 31,
		2021		2020
Land and land improvements	$	111,698	$	97,031
Buildings and building improvements		303,335		223,095
Timber		13,590		13,383
		428,623		333,509
Less: Accumulated depreciation		87,166		75,960
Total operating property, net	$	341,457	$	257,549

Operating property includes property that the Company uses for operations and activities. Residential operating property consists primarily of residential utility assets and certain rental properties. The hospitality operating property primarily consists of existing hotels, resorts, clubs, vacation rentals and other operations. Commercial operating property includes property developed or purchased by the Company and used for retail, office, self-storage, light industrial, multi-family, senior living, commercial rental and timber purposes. Operating property may be sold in the future as part of the Company’s principal real estate business. As of December 31, 2021 and 2020, operating property, net related to operating leases was $230.0 million and $161.1 million, respectively.

Depreciation expense related to real estate investments was $11.7 million, $8.3 million and $6.8 million in 2021, 2020 and 2019, respectively. Depletion and amortization expense related to the Company’s timber operations was $0.3 million, $0.4 million and $0.3 million in 2021, 2020 and 2019, respectively.