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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Schedule of financial measures for each segment based on which performance is evaluated

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 Lease, 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 Lease segment includes all of the Company's activities related to the ownership and leasing of corporate facilities. The Operating Properties segment includes all of the Company's activities and operations related to its commercial and residential properties. The Land segment includes the Company's activities related to its developable land portfolio.

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 Lease				Operating Property				Land				Corporate/ Other(1)				Company Total
For the Three Months Ended June 30, 2013
Operating lease income	$	—			$	36,193			$	21,329			$	—			$	—			$	57,522
Interest income	29,682				—				—				—				—				29,682
Other income	290				—				11,440				—				1,395				13,125
Total revenue	$	29,972			$	36,193			$	32,769			$	—			$	1,395			$	100,329
Earnings (loss) from equity method investments	—				652				1,816				(1,511		)		7,366				8,323
Income from sales of residential property	—				—				30,842				3,477				—				34,319
Net operating income from discontinued operations(2)	—				66				110				—				—				176
Gain from discontinued operations	—				3,365				4,914				—				—				8,279
Revenue and other earnings	$	29,972			$	40,276			$	70,451			$	1,966			$	8,761			$	151,426
Real estate expense	—				(5,757		)		(24,781		)		(6,527		)		—				(37,065		)
Other expense	(414		)		—				—				—				268				(146		)
Direct expenses	$	(414	)		$	(5,757	)		$	(24,781	)		$	(6,527	)		$	268			$	(37,211	)
Direct segment profit (loss)	$	29,558			$	34,519			$	45,670			$	(4,561	)		$	9,029			$	114,215
Allocated interest expense(2)	(18,470		)		(20,079		)		(12,452		)		(7,943		)		(10,213		)		(69,157		)
Allocated general and administrative(3)	(2,895		)		(3,158		)		(2,147		)		(1,788		)		(6,169		)		(16,157		)
Segment profit (loss)(4)	$	8,193			$	11,282			$	31,071			$	(14,292	)		$	(7,353	)		$	28,901
Other significant non-cash items:
Provision for loan losses	$	5,020			$	—			$	—			$	—			$	—			$	5,020
Impairment of assets(2)	$	—			$	—			$	427			$	—			$	—			$	427
Depreciation and amortization(2)	$	—			$	9,589			$	7,231			$	265			$	315			$	17,400
Capitalized expenditures	$	—			$	13,889			$	9,485			$	7,972			$	—			$	31,346
For the Six Months Ended June 30, 2013
Operating lease income	$	—			$	73,303			$	42,692			$	—			$	—			$	115,995
Interest income	54,349				—				—				—				—				54,349
Other income	2,498				—				19,552				500				1,967				24,517
Total revenue	$	56,847			$	73,303			$	62,244			$	500			$	1,967			$	194,861
Earnings (loss) from equity method investments	—				1,338				4,473				(3,090		)		27,280				30,001
Income from sales of residential property	—				—				54,539				3,477				—				58,016

	Real Estate Finance				Net Lease				Operating Property				Land				Corporate/ Other(1)				Company Total
Net operating income from discontinued operations(2)	—				312				843				—				—				1,155
Gain from discontinued operations	—				3,395				9,928				—				—				13,323
Revenue and other earnings	$	56,847			$	78,348			$	132,027			$	887			$	29,247			$	297,356
Real estate expense	—				(11,420		)		(50,515		)		(13,031		)		—				(74,966		)
Other expense	(1,857		)		—				—				—				(3,913		)		(5,770		)
Direct expenses	$	(1,857	)		$	(11,420	)		$	(50,515	)		$	(13,031	)		$	(3,913	)		$	(80,736	)
Direct segment profit (loss)	$	54,990			$	66,928			$	81,512			$	(12,144	)		$	25,334			$	216,620
Allocated interest expense(2)	(39,532		)		(40,069		)		(25,935		)		(15,625		)		(19,562		)		(140,723		)
Allocated general and administrative(3)	(6,135		)		(6,217		)		(4,410		)		(3,635		)		(12,405		)		(32,802		)
Segment profit (loss)(4)	$	9,323			$	20,642			$	51,167			$	(31,404	)		$	(6,633	)		$	43,095
Other significant non-cash items:
Provision for loan losses	$	15,226			$	—			$	—			$	—			$	—			$	15,226
Impairment of assets(2)	$	—			$	—			$	395			$	—			$	—			$	395
Depreciation and amortization(2)	$	—			$	19,229			$	14,437			$	530			$	658			$	34,854
Capitalized expenditures	$	—			$	17,656			$	14,406			$	15,598			$	—			$	47,660
For the Three Months Ended June 30, 2012
Operating lease income	$	—			$	37,392			$	16,719			$	—			$	—			$	54,111
Interest income	36,448				—				—				—				—				36,448
Other income	6,796				—				9,070				—				793				16,659
Total revenue	$	43,244			$	37,392			$	25,789			$	—			$	793			$	107,218
Earnings (loss) from equity method investments	—				649				9,620				(1,550		)		9,701				18,420
Income from sales of residential property	—				—				13,266				—				—				13,266
Net operating income from discontinued operations(2)	—				1,276				2				—				—				1,278
Gain from discontinued operations	—				24,851				—				—				—				24,851
Revenue and other earnings	$	43,244			$	64,168			$	48,677			$	(1,550	)		$	10,494			$	165,033
Real estate expense	—				(6,860		)		(25,929		)		(5,383		)		—				(38,172		)
Other expense	(1,512		)		—				—				—				(2,395		)		(3,907		)
Direct expenses	$	(1,512	)		$	(6,860	)		$	(25,929	)		$	(5,383	)		$	(2,395	)		$	(42,079	)
Direct segment profit (loss)	$	41,732			$	57,308			$	22,748			$	(6,933	)		$	8,099			$	122,954
Allocated interest expense(2)	(32,054		)		(23,288		)		(17,109		)		(10,755		)		(11,532		)		(94,738		)
Allocated general and administrative(3)	(3,656		)		(2,581		)		(2,017		)		(1,745		)		(6,346		)		(16,345		)
Segment profit (loss)(4)	$	6,022			$	31,439			$	3,622			$	(19,433	)		$	(9,779	)		$	11,871
Other significant non-cash items:
Provision for loan losses	$	26,531			$	—			$	—			$	—			$	—			$	26,531
Impairment of assets(2)	$	—			$	6,150			$	1,346			$	—			$	—			$	7,496
Depreciation and amortization(2)	$	—			$	9,758			$	6,613			$	349			$	461			$	17,181
Capitalized expenditures	$	—			$	1,643			$	16,465			$	3,526			$	—			$	21,634
For the Six Months Ended June 30, 2012
Operating lease income	$	—			$	74,627			$	32,678			$	—			$	—			$	107,305
Interest income	73,651				—				—				—				—				73,651
Other income	6,862				—				17,880				—				2,612				27,354
Total revenue	$	80,513			$	74,627			$	50,558			$	—			$	2,612			$	208,310

	Real Estate Finance				Net Lease				Operating Property				Land				Corporate/ Other(1)				Company Total
Earnings (loss) from equity method investments	—				1,295				17,297				(3,102		)		37,716				53,206
Income from sales of residential property	—				—				19,999				—				—				19,999
Net operating income from discontinued operations(2)	—				4,618				435				—				—				5,053
Gain from discontinued operations	—				27,257				—				—				—				27,257
Revenue and other earnings	$	80,513			$	107,797			$	88,289			$	(3,102	)		$	40,328			$	313,825
Real estate expense	—				(11,998		)		(51,667		)		(9,577		)		—				(73,242		)
Other expense	(2,427		)		—				—				—				(1,933		)		(4,360		)
Direct expenses	$	(2,427	)		$	(11,998	)		$	(51,667	)		$	(9,577	)		$	(1,933	)		$	(77,602	)
Direct segment profit (loss)	$	78,086			$	95,799			$	36,622			$	(12,679	)		$	38,395			$	236,223
Allocated interest expense(2)	(63,798		)		(45,669		)		(31,228		)		(20,771		)		(19,416		)		(180,882		)
Allocated general and administrative(3)	(7,969		)		(5,505		)		(4,004		)		(2,537		)		(14,509		)		(34,524		)
Segment profit (loss)(4)	$	6,319			$	44,625			$	1,390			$	(35,987	)		$	4,470			$	20,817
Other significant non-cash items:
Provision for loan losses	$	44,031			$	—			$	—			$	—			$	—			$	44,031
Impairment of assets(2)	$	—			$	6,670			$	17,400			$	—			$	(550	)		$	23,520
Depreciation and amortization(2)	$	—			$	19,964			$	12,636			$	694			$	1,124			$	34,418
Capitalized expenditures	$	—			$	2,056			$	24,931			$	5,727			$	—			$	32,714
As of June 30, 2013
Real estate
Real estate, at cost	$	—			$	1,629,237			$	773,817			$	769,298			$	—			$	3,172,352
Less: accumulated depreciation	—				(326,375		)		(92,480		)		(2,820		)		—				(421,675		)
Real estate, net	$	—			$	1,302,862			$	681,337			$	766,478			$	—			$	2,750,677
Real estate available and held for sale	—				8,694				335,571				179,827				—				524,092
Total real estate	$	—			$	1,311,556			$	1,016,908			$	946,305			$	—			$	3,274,769
Loans receivable and other lending investments, net	1,513,636				—				—				—				—				1,513,636
Other investments	—				16,446				18,169				13,068				141,935				189,618
Total portfolio assets	$	1,513,636			$	1,328,002			$	1,035,077			$	959,373			$	141,935			$	4,978,023
Cash and other assets																					968,757
Total assets																					$	5,946,780
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 and other lending investments, 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																					487,073
Total assets																					$	6,150,789

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, as of December 31, 2012, respectively, and the Company's share of equity in earnings from LNR of $1.7 million and $8.7 million for the three months ended June 30, 2013 and 2012, respectively, and $16.5 million and $20.8 million for the six months ended June 30, 2013 and 2012, respectively. See Note 6 for further details on the Company's accounting policy and summarized financial information for its investment in LNR.

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

(3) General and administrative excludes stock-based compensation expense of $4.7 million and $3.4 million for the three months ended June 30, 2013 and 2012, respectively, and $9.9 million and $8.1 million for the six months ended June 30, 2013 and 2012, respectively.

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

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2013				2012				2013				2012
Segment profit (loss)	$	28,901			$	11,871			$	43,095			$	20,817
Less: Provision for loan losses	(5,020		)		(26,531		)		(15,226		)		(44,031		)
Less: Impairment of assets(2)	(427		)		(7,496		)		(395		)		(23,520		)
Less: Stock-based compensation expense	(4,719		)		(3,447		)		(9,921		)		(8,113		)
Less: Depreciation and amortization(2)	(17,400		)		(17,181		)		(34,854		)		(34,418		)
Less: Income tax (expense) benefit(2)	(491		)		(3,477		)		(4,566		)		(4,748		)
Add: Gain (loss) on early extinguishment of debt, net	(15,242		)		(4,868		)		(24,784		)		(3,164		)
Net income (loss)	$	(14,398	)		$	(51,129	)		$	(46,651	)		$	(97,177	)

Reconciliation of segment profit (loss) to income (loss) from continuing operations

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

	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2013				2012				2013				2012
Segment profit (loss)	$	28,901			$	11,871			$	43,095			$	20,817
Less: Provision for loan losses	(5,020		)		(26,531		)		(15,226		)		(44,031		)
Less: Impairment of assets(2)	(427		)		(7,496		)		(395		)		(23,520		)
Less: Stock-based compensation expense	(4,719		)		(3,447		)		(9,921		)		(8,113		)
Less: Depreciation and amortization(2)	(17,400		)		(17,181		)		(34,854		)		(34,418		)
Less: Income tax (expense) benefit(2)	(491		)		(3,477		)		(4,566		)		(4,748		)
Add: Gain (loss) on early extinguishment of debt, net	(15,242		)		(4,868		)		(24,784		)		(3,164		)
Net income (loss)	$	(14,398	)		$	(51,129	)		$	(46,651	)		$	(97,177	)

X

- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total profit or loss from reportable segments, to the entity's consolidated income before income taxes, extraordinary items, and discontinued operations.

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Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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