OPERATING SEGMENTS

3 Months Ended

Mar. 31, 2014

OPERATING SEGMENTS

OPERATING SEGMENTS

NOTE 7. OPERATING SEGMENTS

The Company’s segments are based on management’s method of internal reporting which classifies operations by the type of property in the portfolio.  The Company’s segments by use of property are land and other. Significant differences among the accounting policies of the operating segments as compared to the Consolidated Financial Statements principally involve the calculation and allocation of administrative and other expenses. Management evaluates the performance of each of the operating segments and allocates resources to them based on their operating income and cash flow.

Items of income that are not reflected in the segments are interest, other income, gain on debt extinguishment, gain on condemnation award, equity in partnerships, and gains on sale of real estate. Expenses that are not reflected in the segments are provision for losses, advisory, net income and incentive fees, general and administrative, non-controlling interests and net loss from discontinued operations before gains on sale of real estate.

 The segment labeled as “Other” consists of revenue and operating expenses related to the notes receivable and corporate debt.

Presented below is the operating segment information for the three months ended March 31, 2014 and 2013 (dollars in thousands):

For the Three Months Ended March 31, 2014	Land			Other		Total
Rental and other property revenues	$	-		$	-	$	-
Property operating expenses		18			-		18
Mortgage and loan interest		184			-		184
Interest income from related parties		-			1,133		1,133
Segment operating income (loss)	$	(202	)	$	1,133	$	931
Real estate assets		24,511			-		24,511
For the Three Months Ended March 31, 2013	Land			Other		Total
Rental and other property revenues	$	-		$	-	$	-
Property operating expenses		14			-		14
Mortgage and loan interest		288			-		288
Interest income from related parties		-			1,407		1,407
Segment operating income (loss)	$	(302	)	$	1,407	$	1,105
Real estate assets		24,511			-		24,511

The table below reconciles the segment information to the corresponding amounts in the Consolidated Statements of Operations:

	For the Three Months Ended
	March 31,
	2014			2013
Segment operating income	$	931		$	1,105
Other non-segment items of income (expense)
General and administrative		(162	)		(132	)
Net income fee due to related party		(45	)		(56	)
Advisory fee to related party		(165	)		(204	)
Income tax expense		-			(6	)
Net income from continuing operations	$	559		$	707

The table below reconciles the segment information to the corresponding amounts in the Consolidated Balance Sheets:

	March 31,
	2014		2013
Real estate assets	$	24,511	$	24,511
Notes and interest receivable		24,794		24,913
Other assets		44,984		60,689
Total assets	$	94,289	$	110,113