Investment in Real Estate

9 Months Ended

Sep. 30, 2022

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:

	September 30,		December 31,
	2022		2021
Development property:
Residential	$	153,299	$	122,404
Hospitality		187,406		137,089
Commercial		123,059		85,931
Other		3,451		3,232
Total development property		467,215		348,656
Operating property:
Residential		7,854		7,854
Hospitality		161,439		124,449
Commercial		339,096		296,193
Other		127		127
Total operating property		508,516		428,623
Less: Accumulated depreciation		91,935		87,166
Total operating property, net		416,581		341,457
Investment in real estate, net	$	883,796	$	690,113

Investment in real estate is carried at cost, net of depreciation and timber depletion, unless circumstances indicate that the carrying value of the assets may not be recoverable.

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 a marina. 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 property that the Company uses for operations and activities. Residential operating property consists primarily of residential utility assets and certain rental properties. Hospitality operating property primarily consists of existing hotels, resorts, clubs, vacation rentals, a marina 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, vacation rental and timber purposes. Operating property may be sold in the future as part of the Company’s principal real estate business. As of September 30, 2022 and December 31, 2021, operating property, net related to operating leases was $260.0 million and $230.0 million, respectively.