The Company has determined that it has four reportable segments based on how management reviews and manages its business. These reportable segments include: Real Estate Finance, Net Leasing, Operating Properties and Land. The Real Estate Finance segment includes all of the Company's activities related to senior and mezzanine real estate loans. The Net Leasing segment includes all of the Company's activities related to the ownership and leasing of corporate facilities to single creditworthy tenants. The Operating Properties segment includes all of the Company's activities and operations related to its commercial and residential properties, which were primarily acquired through the resolution of non-performing loans and are generally being repositioned or redeveloped with the objective of maximizing their value through the infusion of capital and/or intensive asset management efforts. The Land segment includes the Company's activities related to its land assets, which were also primarily acquired through the resolution of non-performing loans.

The Company evaluates performance based on the following financial measures for each segment, and has conformed the prior periods presentation for the change in composition of its business segments, ($ in thousands):



	Real Estate Finance			Net Leasing			Operating Property			Land			Corporate/ Other(1)			Company Total
For the Year Ended December 31, 2012
Operating lease income	$	—		$	151,992		$	65,500		$	1,527		$	—		$	219,019
Interest income	133,410			—			—			—			—			133,410
Other income	8,613			—			32,820			2,635			3,975			48,043
Total revenue	$	142,023		$	151,992		$	98,320		$	4,162		$	3,975		$	400,472
Earnings (loss) from equity method investments	—			2,632			25,142			(6,138		)	81,373			103,009
Income from sales of residential property	—			—			63,472			—			—			63,472
Net operating income from discontinued operations(2)	—			4,725			886			—			—			5,611
Gain from discontinued operations	—			27,257			—			—			—			27,257
Revenue and other earnings	$	142,023		$	186,606		$	187,820		$	(1,976	)	$	85,348		$	599,821
Real estate expense	—			(24,255		)	(100,258		)	(27,314		)	—			(151,827		)
Other expense	(4,775		)	—			—			—			(12,491		)	(17,266		)
Direct expenses	$	(4,775	)	$	(24,255	)	$	(100,258	)	$	(27,314	)	$	(12,491	)	$	(169,093	)
Direct segment profit (loss)	$	137,248		$	162,351		$	87,562		$	(29,290	)	$	72,857		$	430,728
Allocated interest expense(3)	(124,208		)	(83,658		)	(66,001		)	(43,993		)	(38,301		)	(356,161		)
Allocated general and administrative(4)	(14,998		)	(9,484		)	(7,760		)	(7,405		)	(25,916		)	(65,563		)
Segment profit (loss)(5)	$	(1,958	)	$	69,209		$	13,801		$	(80,688	)	$	8,640		$	9,004
Other significant non-cash items:
Provision for loan losses	$	81,740		$	—		$	—		$	—		$	—		$	81,740
Impairment of assets(3)	$	—		$	6,670		$	28,501		$	205		$	978		$	36,354
Depreciation and amortization(3)	$	—		$	39,250		$	28,450		$	1,276		$	1,810		$	70,786
Capitalized expenditures	$	—		$	10,993		$	51,579		$	20,497		$	—		$	83,069
As of December 31, 2012
Real estate
Real estate, at cost	$	—		$	1,639,320		$	801,214		$	786,114		$	—		$	3,226,648
Less: accumulated depreciation	—			(315,699		)	(109,634		)	(2,292		)	—			(427,625		)
Real estate, net	$	—		$	1,323,621		$	691,580		$	783,822		$	—		$	2,799,023
Real estate available and held for sale	—			—			454,587			181,278			—			635,865
Total real estate	$	—		$	1,323,621		$	1,146,167		$	965,100		$	—		$	3,434,888
Loans receivable, net	1,829,985			—			—			—			—			1,829,985
Other investments	—			16,380			25,745			5,493			351,225			398,843
Total portfolio assets	$	1,829,985		$	1,340,001		$	1,171,912		$	970,593		$	351,225		$	5,663,716
Cash and other assets	9,832			105,595			60,500			9,638			301,508			487,073
Total assets	$	1,839,817		$	1,445,596		$	1,232,412		$	980,231		$	652,733		$	6,150,789



For the Year Ended December 31, 2011	Real Estate Finance			Net Leasing			Operating Property			Land			Corporate/ Other(1)				Company Total
Operating lease income	$	—		$	147,151		$	51,153		$	174		$	—			$	198,478
Interest income	226,871			—			—			—			—				226,871
Other income	3,176			—			32,538			1,635			2,371				39,720
Total revenue	$	230,047		$	147,151		$	83,691		$	1,809		$	2,371			$	465,069
Earnings (loss) from equity method investments	—			2,566			(626		)	(7,213		)	100,364				95,091
Income from sales of residential property	—			—			5,721			—			—				5,721
Net operating income from discontinued operations(2)	—			11,760			(937		)	—			—				10,823
Gain from discontinued operations	—			25,110			—			—			—				25,110
Revenue and other earnings	$	230,047		$	186,587		$	87,849		$	(5,404	)	$	102,735			$	601,814
Real estate expense	—			(25,282		)	(92,012		)	(21,649		)	—				(138,943		)
Other expense	(2,866		)	—			—			—			(8,204		)		(11,070		)
Direct expenses	$	(2,866	)	$	(25,282	)	$	(92,012	)	$	(21,649	)	$	(8,204	)		$	(150,013	)
Direct segment profit (loss)	$	227,181		$	161,305		$	(4,163	)	$	(27,053	)	$	94,531			$	451,801
Allocated interest expense(3)	(161,025		)	(67,338		)	(53,598		)	(42,337		)	(21,616		)		(345,914		)
Allocated general and administrative(4)	(20,680		)	(8,648		)	(6,884		)	(6,959		)	(32,166		)		(75,337		)
Segment profit (loss)(5)	$	45,476		$	85,319		$	(64,645	)	$	(76,349	)	$	40,749			$	30,550
Other significant non-cash items:
Provision for loan losses	$	46,412		$	—		$	—		$	—		$	—			$	46,412
Impairment of assets(3)	$	—		$	668		$	21,030		$	(184	)	$	872			$	22,386
Depreciation and amortization(3)	$	—		$	42,080		$	18,169		$	1,534		$	2,145			$	63,928
Capitalized expenditures	$	—		$	8,699		$	38,477		$	16,993		$	—			$	64,169
As of December 31, 2011
Real estate
Real estate, at cost	$	—		$	1,773,149		$	720,251		$	851,272		$	—			$	3,344,672
Less: accumulated depreciation	—			(302,851		)	(90,383		)	(3,527		)	—				(396,761		)
Real estate, net	$	—		$	1,470,298		$	629,868		$	847,745		$	—			$	2,947,911
Real estate available and held for sale	—			—			551,998			125,460			—			677,458,000	677,458
Total real estate	$	—		$	1,470,298		$	1,181,866		$	973,205		$	—			$	3,625,369
Loans receivable, net	2,860,762			—			—			—			—				2,860,762
Other investments	—			16,297			37,957			14,845			388,736				457,835
Total portfolio assets	$	2,860,762		$	1,486,595		$	1,219,823		$	988,050		$	388,736			$	6,943,966
Cash and other assets	13,340			87,673			33,217			1,734			437,907				573,871
Total assets	$	2,874,102		$	1,574,268		$	1,253,040		$	989,784		$	826,643			$	7,517,837



For the Year Ended December 31, 2010	Real Estate Finance			Net Leasing			Operating Property			Land			Corporate/ Other(1)			Company Total
Operating lease income	$	—		$	146,599		$	39,623		$	408		$	—		$	186,630
Interest income	364,094			—			—			—			—			364,094
Other income	13,750			—			33,403			643			2,937			50,733
Total revenue	$	377,844		$	146,599		$	73,026		$	1,051		$	2,937		$	601,457
Earnings (loss) from equity method investments	—			2,522			—			—			49,386			51,908
Income from sales of residential property	—			—			—			—			—			—
Net operating income from discontinued operations(2)	—			73,233			(541		)	—			—			72,692
Gain from discontinued operations	—			270,382			—			—			—			270,382
Revenue and other earnings	$	377,844		$	492,736		$	72,485		$	1,051		$	52,323		$	996,439
Real estate expense	—			(21,223		)	(85,097		)	(15,079		)	—			(121,399		)
Other expense	(10,107		)	—			—			—			(5,948		)	(16,055		)
Direct expenses	$	(10,107	)	$	(21,223	)	$	(85,097	)	$	(15,079	)	$	(5,948	)	$	(137,454	)
Direct segment profit (loss)	$	367,737		$	471,513		$	(12,612	)	$	(14,028	)	$	46,375		$	858,985
Allocated interest expense(3)	(174,074		)	(62,094		)	(39,957		)	(30,445		)	(39,930		)	(346,500		)
Allocated general and administrative(4)	(28,833		)	(10,285		)	(6,618		)	(5,261		)	(39,173		)	(90,170		)
Segment profit (loss)(5)	$	164,830		$	399,134		$	(59,187	)	$	(49,734	)	$	(32,728	)	$	422,315
Other significant non-cash items:
Provision for loan losses	$	331,487		$	—		$	—		$	—		$	—		$	331,487
Impairment of assets(3)	$	—		$	6,063		$	18,988		$	100		$	(2,770	)	$	22,381
Depreciation and amortization(3)	$	—		$	48,973		$	17,050		$	1,037		$	3,726		$	70,786
Capitalized expenditures	$	—		$	13,475		$	18,894		$	10,494		$	—		$	42,863
As of December 31, 2010
Real estate
Real estate, at cost	$	—		$	1,834,172		$	470,989		$	693,477		$	—		$	2,998,638
Less: accumulated depreciation	—			(284,489		)	(70,074		)	(2,037		)	—			(356,600		)
Real estate, net	$	—		$	1,549,683		$	400,915		$	691,440		$	—		$	2,642,038
Real estate available and held for sale	—			—			631,920			114,161			—			746,081
Total real estate	$	—		$	1,549,683		$	1,032,835		$	805,601		$	—		$	3,388,119
Loans receivable, net	4,587,352			—			—			—			—			4,587,352
Other investments	—			16,128			—			—			516,230			532,358
Total portfolio assets	$	4,587,352		$	1,565,811		$	1,032,835		$	805,601		$	516,230		$	8,507,829
Cash and other assets	21,710			78,337			25,122			500			541,016			666,685
Total assets	$	4,609,062		$	1,644,148		$	1,057,957		$	806,101		$	1,057,246		$	9,174,514

Explanatory Notes:

_______________________________________________________________________________

(1)

Corporate/Other represents all corporate level and unallocated items including any intercompany eliminations necessary to reconcile to consolidated Company totals. This caption also includes the Company's joint venture investments and strategic investments that are not related to the other reportable segments above, including the Company's equity investment in LNR of $205.8 million and $159.8 million, as of December 31, 2012 and 2011, respectively, and the Company's share of equity in earnings from LNR of $60.7 million, $53.9 million and $1.8 million for the years ended December 31, 2012, 2011 and 2010, respectively. See Note 6 for further details on the Company's investment in LNR and summarized financial information of LNR.


(2)	Includes revenue and real estate expense reclassified to discontinued operations on the Company's Consolidated Statements of Operations.


(3)	Includes related amounts reclassified to discontinued operations on the Company's Consolidated Statements of Operations.


(4)	General and administrative excludes stock-based compensation expense of $15.3 million, $29.7 million and $19.4 million for the years ended December 31, 2012, 2011 and 2010, respectively.


(5)	The following is a reconciliation of segment profit (loss) to net income (loss) ($ in thousands):



	For the Years Ended December 31,
	2012			2011			2010
Segment profit (loss)	$	9,004		$	30,550		$	422,315
Less: Provision for loan losses	(81,740		)	(46,412		)	(331,487		)
Less: Impairment of assets	(36,354		)	(22,386		)	(22,381		)
Less: Stock-based compensation expense	(15,293		)	(29,702		)	(19,355		)
Less: Depreciation and amortization	(70,786		)	(63,928		)	(70,786		)
Less: Income tax (expense) benefit	(8,445		)	4,719			(7,023		)
Add: Gain (loss) on early extinguishment of debt, net	(37,816		)	101,466			108,923
Net income (loss)	$	(241,430	)	$	(25,693	)	$	80,206