Segment Reporting

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 and Development. The Real Estate Finance segment includes all of the Company's activities related to senior and mezzanine real estate loans and real estate related securities. The Net Lease segment includes the Company's activities and operations related to the ownership of properties generally leased to single corporate tenants. The Operating Properties segment includes the Company's activities and operations related to its commercial and residential properties. The Land and Development 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. The Company's segment information is as follows ($ in thousands):



	Real Estate Finance			Net Lease			Operating Properties			Land and Development			Corporate/Other⁽¹⁾			Company Total
Three Months Ended June 30, 2016:
Operating lease income	$	—		$	36,585		$	17,828		$	105		$	—		$	54,518
Interest income	34,400			—			—			—			—			34,400
Other income	323			433			7,213			1,167			961			10,097
Land development revenue	—			—			—			27,888			—			27,888
Earnings (loss) from equity method investments	—			944			31,076			2,688			4,739			39,447
Income from sales of real estate	—			4,338			39,146			—			—			43,484
Total revenue and other earnings	34,723			42,300			95,263			31,848			5,700			209,834
Real estate expense	—			(4,728		)	(20,796		)	(9,914		)	—			(35,438		)
Land development cost of sales	—			—			—			(17,262		)	—			(17,262		)
Other expense	(925		)	—			—			—			(2,257		)	(3,182		)
Allocated interest expense	(14,631		)	(16,464		)	(5,849		)	(8,668		)	(10,435		)	(56,047		)
Allocated general and administrative⁽²⁾	(3,786		)	(4,313		)	(1,638		)	(3,327		)	(4,968		)	(18,032		)
Segment profit (loss)⁽³⁾	$	15,381		$	16,795		$	66,980		$	(7,323	)	$	(11,960	)	$	79,873
Other significant items:
Provision for loan losses	$	700		$	—		$	—		$	—		$	—		$	700
Impairment of assets	—			—			3,012			—			—			3,012
Depreciation and amortization	—			8,778			5,022			400			274			14,474
Capitalized expenditures	—			1,625			12,446			32,006			—			46,077

Three Months Ended June 30, 2015
Operating lease income	$	—		$	37,781		$	18,116		$	255		$	—		$	56,152
Interest income	33,729			—			—			—			—			33,729
Other income	798			121			10,591			154			1,097			12,761
Land development revenue	—			—			—			6,543			—			6,543
Earnings (loss) from equity method investments	—			1,666			298			4,463			2,358			8,785
Income from sales of real estate	—			5,127			13,228			—			—			18,355
Total revenue and other earnings	34,527			44,695			42,233			11,415			3,455			136,325
Real estate expense	—			(5,522		)	(23,940		)	(6,893		)	—			(36,355		)
Land development cost of sales	—			—			—			(5,252		)	—			(5,252		)
Other expense	(221		)	—			—			—			(667		)	(888		)
Allocated interest expense	(14,563		)	(16,933		)	(7,057		)	(7,876		)	(9,395		)	(55,824		)
Allocated general and administrative⁽²⁾	(3,129		)	(3,676		)	(1,629		)	(2,733		)	(5,472		)	(16,639		)
Segment profit (loss)⁽³⁾	$	16,614		$	18,564		$	9,607		$	(11,339	)	$	(12,079	)	$	21,367
Other significant items:
Provision for loan losses	$	19,151		$	—		$	—		$	—		$	—		$	19,151
Impairment of assets	—			—			1,674			—			—			1,674
Depreciation and amortization	—			9,409			5,446			390			271			15,516
Capitalized expenditures	—			1,769			21,749			27,465			—			50,983



	Real Estate Finance			Net Lease			Operating Properties			Land and Development			Corporate/Other⁽¹⁾			Company Total
Six Months Ended June 30, 2016:
Operating lease income	$	—		$	72,335		$	36,909		$	211		$	—		$	109,455
Interest income	67,620			—			—			—			—			67,620
Other income	1,620			513			14,557			2,232			2,715			21,637
Land development revenue	—			—			—			42,835			—			42,835
Earnings (loss) from equity method investments	—			1,890			30,934			9,348			5,542			47,714
Income from sales of real estate	—			9,267			44,676			—			—			53,943
Total revenue and other earnings	69,240			84,005			127,076			54,626			8,257			343,204
Real estate expense	—			(9,236		)	(41,916		)	(18,591		)	—			(69,743		)
Land development cost of sales	—			—			—			(28,838		)	—			(28,838		)
Other expense	(839		)	—			—			—			(3,083		)	(3,922		)
Allocated interest expense	(29,333		)	(32,700		)	(12,469		)	(17,027		)	(21,539		)	(113,068		)
Allocated general and administrative⁽²⁾	(7,617		)	(8,609		)	(3,508		)	(6,597		)	(10,226		)	(36,557		)
Segment profit (loss)⁽³⁾	$	31,451		$	33,460		$	69,183		$	(16,427	)	$	(26,591	)	$	91,076
Other significant non-cash items:
Provision for (recovery of) loan losses	$	2,206		$	—		$	—		$	—		$	—		$	2,206
Impairment of assets	—			—			3,012			—			—			3,012
Depreciation and amortization	—			17,629			10,305			699			549			29,182
Capitalized expenditures	—			2,476			28,243			66,274			—			96,993

Six Months Ended June 30, 2015:
Operating lease income	$	—		$	74,120		$	40,730		$	441		$	—		$	115,291
Interest income	68,625			—			—			—			—			68,625
Other income	846			124			19,467			787			2,101			23,325
Land development revenue	—			—			—			14,801			—			14,801
Earnings (loss) from equity method investments	—			3,299			833			7,072			4,128			15,332
Income from sales of real estate	—			8,654			30,857			—			—			39,511
Total revenue and other earnings	69,471			86,197			91,887			23,101			6,229			276,885
Real estate expense	—			(10,792		)	(51,364		)	(13,833		)	—			(75,989		)
Land development cost of sales	—			—			—			(12,142		)	—			(12,142		)
Other expense	(220		)	—			—			—			(2,791		)	(3,011		)
Allocated interest expense	(28,798		)	(33,768		)	(14,725		)	(15,420		)	(17,745		)	(110,456		)
Allocated general and administrative⁽²⁾	(6,223		)	(7,437		)	(3,457		)	(5,526		)	(11,511		)	(34,154		)
Segment profit (loss)⁽³⁾	$	34,230		$	34,200		$	22,341		$	(23,820	)	$	(25,818	)	$	41,133
Other significant non-cash items:
Provision for (recovery of) loan losses	$	23,444		$	—		$	—		$	—		$	—		$	23,444
Impairment of assets	—			—			1,674			—			—			1,674
Depreciation and amortization	—			18,858			13,791			780			588			34,017
Capitalized expenditures	—			2,114			31,843			49,845			—			83,802



	Real Estate Finance		Net Lease		Operating Properties		Land and Development		Corporate/Other⁽¹⁾		Company Total

As of June 30, 2016
Real estate
Real estate, net	$	—	$	1,081,825	$	354,095	$	—	$	—	$	1,435,920
Real estate available and held for sale	—		—		126,070		—		—		126,070
Total real estate	—		1,081,825		480,165		—		—		1,561,990
Land and development	—		—		—		1,046,013		—		1,046,013
Loans receivable and other lending investments, net	1,568,439		—		—		—		—		1,568,439
Other investments	—		67,895		13,065		88,874		58,922		228,756
Total portfolio assets	$	1,568,439	$	1,149,720	$	493,230	$	1,134,887	$	58,922	4,405,198
Cash and other assets											804,199
Total assets											$	5,209,397

As of December 31, 2015
Real estate
Real estate, net	$	—	$	1,112,479	$	481,504	$	—	$	—	$	1,593,983
Real estate available and held for sale	—		—		137,274		—		—		137,274
Total real estate	—		1,112,479		618,778		—		—		1,731,257
Land and development	—		—		—		1,001,963		—		1,001,963
Loans receivable and other lending investments, net	1,601,985		—		—		—		—		1,601,985
Other investments	—		69,096		11,124		100,419		73,533		254,172
Total portfolio assets	$	1,601,985	$	1,181,575	$	629,902	$	1,102,382	$	73,533	4,589,377
Cash and other assets											1,008,415
Total assets											$	5,597,792

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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 included in the other reportable segments above.


(2)	General and administrative excludes stock-based compensation expense of $1.6 million and $6.2 million for the three and six months ended June 30, 2016, respectively, and $3.9 million and $7.2 million for the three and six months ended June 30, 2015, respectively.


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



	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2016			2015			2016			2015
Segment profit	$	79,873		$	21,367		$	91,076		$	41,133
Less: (Provision for) loan losses	(700		)	(19,151		)	(2,206		)	(23,444		)
Less: Impairment of assets	(3,012		)	(1,674		)	(3,012		)	(1,674		)
Less: Stock-based compensation expense	(1,633		)	(3,947		)	(6,211		)	(7,186		)
Less: Depreciation and amortization	(14,474		)	(15,516		)	(29,182		)	(34,017		)
Less: Income tax benefit (expense)	1,190			(811		)	1,604			(6,688		)
Less: Loss on early extinguishment of debt, net	(1,457		)	(44		)	(1,582		)	(212		)
Net income (loss)	$	59,787		$	(19,776	)	$	50,487		$	(32,088	)