SEGMENT DISCLOSURE

In accordance with ASC Topic 280, Segment Reporting, our reportable segments during the three months ended March 31, 2020 and 2019 consist of two types of commercial real estate properties, namely, office and hotel, as well as a segment for our lending business. Management internally evaluates the operating performance and financial results of the segments based on net operating income. We also have certain general and administrative level activities, including public company expenses, legal, accounting, and tax preparation that are not considered separate operating segments. The reportable segments are accounted for on the same basis of accounting as described in the notes to our audited consolidated financial statements for the year ended December 31, 2019 included in our Annual Report on Form 10-K filed with the SEC on March 16, 2020.

For our real estate segments, we define net operating income as rental and other property income and expense reimbursements less property related expenses, and excludes non-property income and expenses, interest expense, depreciation and amortization, corporate related general and administrative expenses, gain (loss) on sale of real estate, gain (loss) on early extinguishment of debt, impairment of real estate, transaction costs, and provision for income taxes. For our lending segment, we define net operating income as interest income net of interest expense and general overhead expenses.

The net operating income of our segments for the three months ended March 31, 2020 and 2019 is as follows:



	Three Months Ended March 31,
	2020		2019
	(in thousands)
Office:
Revenues	$	14,897	$	33,445
Property expenses:
Operating	6,046		13,559
General and administrative	98		154
Total property expenses	6,144		13,713
Segment net operating income—office	8,753		19,732
Hotel:
Revenues	8,253		10,589
Property expenses:
Operating	6,469		6,694
General and administrative	13		14
Total property expenses	6,482		6,708
Segment net operating income—hotel	1,771		3,881
Lending:
Revenues	2,384		2,924
Lending expenses:
Interest expense	291		582
Fees to related party	682		637
General and administrative	400		503
Total lending expenses	1,373		1,722
Segment net operating income—lending	1,011		1,202
Total segment net operating income	$	11,535	$	24,815

A reconciliation of our segment net operating income to net income attributable to the Company for the three months ended March 31, 2020 and 2019 is as follows:



	Three Months Ended March 31,
	2020			2019
	(in thousands)
Total segment net operating income	$	11,535		$	24,815
Interest and other income	1			319
Asset management and other fees to related parties	(3,457		)	(5,249		)
Interest expense	(2,876		)	(3,463		)
General and administrative	(1,223		)	(1,117		)
Transaction costs	—			(44		)
Depreciation and amortization	(5,258		)	(9,630		)
Loss on early extinguishment of debt	—			(25,071		)
Impairment of real estate	—			(66,200		)
Gain on sale of real estate	—			377,581
(Loss) income before provision for income taxes	(1,278		)	291,941
Provision for income taxes	22			(318		)
Net (loss) income	(1,256		)	291,623
Net (income) loss attributable to noncontrolling interests	(4		)	174
Net (loss) income attributable to the Company	$	(1,260	)	$	291,797

The condensed assets for each of the segments as of March 31, 2020 and December 31, 2019, along with capital expenditures and loan originations for the three months ended March 31, 2020 and 2019, are as follows:



	March 31, 2020		December 31, 2019
	(in thousands)
Condensed assets:
Office	$	468,599	$	460,951
Hotel	104,507		104,029
Lending	79,197		82,140
Non-segment assets	11,239		20,472
Total assets	$	663,542	$	667,592



	Three Months Ended March 31,
	2020		2019
	(in thousands)
Capital expenditures (1):
Office	$	4,534	$	2,597
Hotel	294		608
Total capital expenditures	4,828		3,205
Loan originations	11,844		3,404
Total capital expenditures and loan originations	$	16,672	$	6,609


(1)	Represents additions and improvements to real estate investments, excluding acquisitions. Includes the activity for dispositions through their respective disposition dates.