Investment in Real Estate, Net

9 Months Ended

Sep. 30, 2023

Investment in Real Estate, Net

Investment in Real Estate, Net

3. Investment in Real Estate, Net

Investment in real estate, net, excluding unconsolidated JVs, by property type and segment includes the following:

	September 30,		December 31,
	2023		2022
Development property:
Residential	$	142,475	$	166,304
Hospitality		18,354		205,409
Commercial		103,648		131,133
Other		3,085		3,618
Total development property		267,562		506,464
Operating property:
Residential		10,900		7,854
Hospitality		416,533		221,542
Commercial		428,298		356,242
Other		—		127
Total operating property		855,731		585,765
Less: Accumulated depreciation		111,893		95,968
Total operating property, net		743,838		489,797
Investment in real estate, net	$	1,011,400	$	996,261

Investment in real estate, net 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, lease 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, as well as development costs related to additional club amenities and improvements to existing properties. 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 rental homes, marinas and other operations. Commercial operating property includes property 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 September 30, 2023 and December 31, 2022, operating property, net related to operating leases was $351.4 million and $285.1 million, respectively.