Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2014

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

The Company evaluates performance based on the following financial measures for each segment. The Company's segment information is as follows ($ in thousands):



	Real Estate Finance			Net Lease			Operating Properties			Land			Corporate/Other(1)			Company Total
For the three months ended March 31, 2014
Operating lease income	$	—		$	38,881		$	23,001		$	226		$	—		$	62,108
Interest income	27,914			—			—			—			—			27,914
Other income	399			214			12,666			226			1,079			14,584
Land sales revenue	—			—			—			4,143			—			4,143
Total revenue	$	28,313		$	39,095		$	35,667		$	4,595		$	1,079		$	108,749
Earnings (loss) from equity method investments	—			286			217			(258		)	2,932			3,177
Income from sales of residential property	—			—			16,494			—			—			16,494
Revenue and other earnings	$	28,313		$	39,381		$	52,378		$	4,337		$	4,011		$	128,420
Real estate expense	—			(5,674		)	(28,614		)	(8,325		)	—			(42,613		)
Land cost of sales	—			—			—			(3,654		)	—			(3,654		)
Other expense	(430		)	—			—			—			209			(221		)
Allocated interest expense	(15,452		)	(18,610		)	(10,259		)	(7,159		)	(5,976		)	(57,456		)
Allocated general and administrative(2)	(3,090		)	(3,799		)	(2,189		)	(3,049		)	(5,586		)	(17,713		)
Segment profit (loss)(4)	$	9,341		$	11,298		$	11,316		$	(17,850	)	$	(7,342	)	$	6,763
Other significant non-cash items:
Provision for (recovery of) loan losses	$	(3,400	)	$	—		$	—		$	—		$	—		$	(3,400	)
Impairment of assets	$	—		$	2,979		$	—		$	—		$	—		$	2,979
Depreciation and amortization	$	—		$	10,128		$	7,864		$	304		$	317		$	18,613
Capitalized expenditures	$	—		$	504		$	12,854		$	14,683		$	—		$	28,041
As of March 31, 2014
Real estate
Real estate, at cost	$	—		$	1,611,246		$	726,356		$	809,517		$	—		$	3,147,119
Less: accumulated depreciation	—			(343,294		)	(86,173		)	(3,682		)	—			(433,149		)
Real estate, net	$	—		$	1,267,952		$	640,183		$	805,835		$	—		$	2,713,970
Real estate available and held for sale	—			—			204,653			130,038			—			334,691
Total real estate	$	—		$	1,267,952		$	844,836		$	935,873		$	—		$	3,048,661
Loans receivable and other lending investments, net	1,476,490			—			—			—			—			1,476,490
Other investments	—			33,441			15,794			33,312			122,550			205,097
Total portfolio assets	$	1,476,490		$	1,301,393		$	860,630		$	969,185		$	122,550		$	4,730,248
Cash and other assets																757,467
Total assets																$	5,487,715



	Real Estate Finance			Net Lease			Operating Properties			Land			Corporate/Other(1)			Company Total
For the three months ended March 31, 2013
Operating lease income	$	—		$	36,651		$	21,364		$	—		$	—		$	58,015
Interest income	24,667			—			—			—			—			24,667
Other income	2,208			—			8,112			500			573			11,393
Total revenue	$	26,875		$	36,651		$	29,476		$	500		$	573		$	94,075
Earnings (loss) from equity method investments	—			686			2,657			(1,579		)	19,914			21,678
Income from sales of residential property	—			—			23,697			—			—			23,697
Net operating income from discontinued operations(2)	—			610			734			—			—			1,344
Gain from discontinued operations	—			29			5,015			—			—			5,044
Revenue and other earnings	$	26,875		$	37,976		$	61,579		$	(1,079	)	$	20,487		$	145,838
Real estate expense	—			(5,569		)	(25,736		)	(6,503		)	—			(37,808		)
Other expense	(1,444		)	—			—			—			(4,181		)	(5,625		)
Allocated interest expense(3)	(19,952		)	(20,745		)	(14,622		)	(9,288		)	(6,959		)	(71,566		)
Allocated general and administrative(2)	(3,074		)	(3,052		)	(2,231		)	(1,849		)	(6,440		)	(16,646		)
Segment profit (loss)(4)	$	2,405		$	8,610		$	18,990		$	(18,719	)	$	2,907		$	14,193
Other significant non-cash items:
Provision for (recovery of) loan losses	$	10,206		$	—		$	—		$	—		$	—		$	10,206
Impairment of assets(3)	$	—		$	—		$	(32	)	$	—		$	—		$	(32	)
Depreciation and amortization(3)	$	—		$	9,642		$	7,206		$	264		$	342		$	17,454
Capitalized expenditures	$	—		$	3,766		$	4,921		$	7,627		$	—		$	16,314
As of December 31, 2013
Real estate
Real estate, at cost	$	—		$	1,696,888		$	720,508		$	803,238		$	—		$	3,220,634
Less: accumulated depreciation	—			(338,640		)	(82,420		)	(3,393		)	—			(424,453		)
Real estate, net	$	—		$	1,358,248		$	638,088		$	799,845		$	—		$	2,796,181
Real estate available and held for sale	—			—			228,328			132,189			—			360,517
Total real estate	$	—		$	1,358,248		$	866,416		$	932,034		$	—		$	3,156,698
Loans receivable and other lending investments, net	1,370,109			—			—			—			—			1,370,109
Other investments	—			16,408			16,032			29,765			145,004			207,209
Total portfolio assets	$	1,370,109		$	1,374,656		$	882,448		$	961,799		$	145,004		$	4,734,016
Cash and other assets																907,995
Total assets																$	5,642,011

Explanatory Notes:

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(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 share of equity in earnings from LNR of $14.7 million for the three months ended March 31, 2013. See Note 6 for further details on the Company's investment in LNR and summarized financial information of LNR.


(2)	General and administrative excludes stock-based compensation expense of $2.1 million and $5.2 million for the three months ended March 31, 2014 and 2013, respectively.


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


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



	For the Three Months Ended March 31,
	2014			2013
Segment profit (loss)	$	6,763		$	14,193
Less: (Provision for) recovery of loan losses	3,400			(10,206		)
Less: Impairment of assets(3)	(2,979		)	32
Less: Stock-based compensation expense	(2,075		)	(5,202		)
Less: Depreciation and amortization(3)	(18,613		)	(17,454		)
Less: Income tax (expense) benefit(3)	507			(4,075		)
Add: Gain (loss) on early extinguishment of debt, net	(1,180		)	(9,541		)
Net income (loss)	$	(14,177	)	$	(32,253	)

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 March 31,
	2014			2013
Segment profit (loss)	$	6,763		$	14,193
Less: (Provision for) recovery of loan losses	3,400			(10,206		)
Less: Impairment of assets(3)	(2,979		)	32
Less: Stock-based compensation expense	(2,075		)	(5,202		)
Less: Depreciation and amortization(3)	(18,613		)	(17,454		)
Less: Income tax (expense) benefit(3)	507			(4,075		)
Add: Gain (loss) on early extinguishment of debt, net	(1,180		)	(9,541		)
Net income (loss)	$	(14,177	)	$	(32,253	)

- Definition

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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