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 September 30, 2016:
Operating lease income	$	—		$	36,901		$	14,407		$	106		$	—		$	51,414
Interest income	32,258			—			—			—			—			32,258
Other income	1,052			412			10,793			658			527			13,442
Land development revenue	—			—			—			31,554			—			31,554
Earnings (loss) from equity method investments	—			723			630			21,841			3,346			26,540
Income from sales of real estate	—			6,629			27,815			—			—			34,444
Total revenue and other earnings	33,310			44,665			53,645			54,159			3,873			189,652
Real estate expense	—			(4,799		)	(21,129		)	(9,407		)	—			(35,335		)
Land development cost of sales	—			—			—			(22,004		)	—			(22,004		)
Other expense	(794		)	—			—			—			(25		)	(819		)
Allocated interest expense	(14,544		)	(16,330		)	(5,110		)	(9,013		)	(10,108		)	(55,105		)
Allocated general and administrative⁽²⁾	(3,995		)	(4,526		)	(1,502		)	(3,495		)	(4,714		)	(18,232		)
Segment profit (loss)⁽³⁾	$	13,977		$	19,010		$	25,904		$	10,240		$	(10,974	)	$	58,157
Other significant items:
Recovery of loan losses	$	(14,955	)	$	—		$	—		$	—		$	—		$	(14,955	)
Impairment of assets	—			4,829			112			3,800			—			8,741
Depreciation and amortization	—			8,630			3,798			298			276			13,002
Capitalized expenditures	—			934			15,902			25,938			—			42,774

Three Months Ended September 30, 2015:
Operating lease income	$	—		$	37,379		$	18,125		$	195		$	—		$	55,699
Interest income	33,599			—			—			—			—			33,599
Other income	7,988			8			7,602			376			914			16,888
Land development revenue	—			—			—			14,301			—			14,301
Earnings (loss) from equity method investments	—			971			469			6,647			2,485			10,572
Income from sales of real estate	—			6,931			19,580			—			—			26,511
Total revenue and other earnings	41,587			45,289			45,776			21,519			3,399			157,570
Real estate expense	—			(5,473		)	(22,448		)	(7,233		)	—			(35,154		)
Land development cost of sales	—			—			—			(10,686		)	—			(10,686		)
Other expense	(2,039		)	—			—			—			(1,295		)	(3,334		)
Allocated interest expense	(14,030		)	(16,358		)	(6,724		)	(8,265		)	(11,503		)	(56,880		)
Allocated general and administrative⁽²⁾	(3,527		)	(4,209		)	(1,841		)	(3,233		)	(5,490		)	(18,300		)
Segment profit (loss)⁽³⁾	$	21,991		$	19,249		$	14,763		$	(7,898	)	$	(14,889	)	$	33,216
Other significant items:
Provision for loan losses	$	7,500		$	—		$	—		$	—		$	—		$	7,500
Impairment of assets	—			—			3,916			—			—			3,916
Depreciation and amortization	—			9,522			5,610			380			275			15,787
Capitalized expenditures	—			1,439			26,358			18,043			—			45,840



	Real Estate Finance			Net Lease			Operating Properties			Land and Development			Corporate/Other⁽¹⁾			Company Total
Nine Months Ended September 30, 2016:
Operating lease income	$	—		$	109,235		$	51,317		$	317		$	—		$	160,869
Interest income	99,877			—			—			—			—			99,877
Other income	2,672			925			25,351			2,889			3,243			35,080
Land development revenue	—			—			—			74,389			—			74,389
Earnings (loss) from equity method investments	—			2,613			31,564			31,189			8,888			74,254
Income from sales of real estate	—			15,896			72,491			—			—			88,387
Total revenue and other earnings	102,549			128,669			180,723			108,784			12,131			532,856
Real estate expense	—			(14,033		)	(63,046		)	(27,999		)	—			(105,078		)
Land development cost of sales	—			—			—			(50,842		)	—			(50,842		)
Other expense	(1,634		)	—			—			—			(3,107		)	(4,741		)
Allocated interest expense	(43,877		)	(49,030		)	(17,579		)	(26,040		)	(31,647		)	(168,173		)
Allocated general and administrative⁽²⁾	(11,612		)	(13,135		)	(5,010		)	(10,092		)	(14,940		)	(54,789		)
Segment profit (loss)⁽³⁾	$	45,426		$	52,471		$	95,088		$	(6,189	)	$	(37,563	)	$	149,233
Other significant non-cash items:
Recovery of loan losses	$	(12,749	)	$	—		$	—		$	—		$	—		$	(12,749	)
Impairment of assets	—			4,829			3,124			3,800			—			11,753
Depreciation and amortization	—			26,260			14,103			997			824			42,184
Capitalized expenditures	—			3,410			44,145			92,212			—			139,767

Nine Months Ended September 30, 2015:
Operating lease income	$	—		$	111,500		$	58,855		$	635		$	—		$	170,990
Interest income	102,224			—			—			—			—			102,224
Other income	8,834			133			27,069			1,163			3,015			40,214
Land development revenue	—			—			—			29,101			—			29,101
Earnings (loss) from equity method investments	—			4,270			1,302			13,719			6,613			25,904
Income from sales of real estate	—			15,584			50,437			—			—			66,021
Total revenue and other earnings	111,058			131,487			137,663			44,618			9,628			434,454
Real estate expense	—			(16,266		)	(73,812		)	(21,065		)	—			(111,143		)
Land development cost of sales	—			—			—			(22,828		)	—			(22,828		)
Other expense	(2,259		)	—			—			—			(4,086		)	(6,345		)
Allocated interest expense	(42,828		)	(50,126		)	(21,449		)	(23,685		)	(29,248		)	(167,336		)
Allocated general and administrative⁽²⁾	(9,750		)	(11,646		)	(5,298		)	(8,759		)	(17,001		)	(52,454		)
Segment profit (loss)⁽³⁾	$	56,221		$	53,449		$	37,104		$	(31,719	)	$	(40,707	)	$	74,348
Other significant non-cash items:
Provision for loan losses	$	30,944		$	—		$	—		$	—		$	—		$	30,944
Impairment of assets	—			—			5,590			—			—			5,590
Depreciation and amortization	—			28,380			19,400			1,160			864			49,804
Capitalized expenditures	—			3,553			58,201			67,888			—			129,642



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

As of September 30, 2016
Real estate
Real estate, net	$	—	$	1,001,776	$	372,834	$	—	$	—	$	1,374,610
Real estate available and held for sale	—		—		101,488		—		—		101,488
Total real estate	—		1,001,776		474,322		—		—		1,476,098
Land and development	—		—		—		1,022,106		—		1,022,106
Loans receivable and other lending investments, net	1,632,186		—		—		—		—		1,632,186
Other investments	—		103,468		12,747		92,885		53,396		262,496
Total portfolio assets	$	1,632,186	$	1,105,244	$	487,069	$	1,114,991	$	53,396	4,392,886
Cash and other assets											845,128
Total assets											$	5,238,014

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 $1.4 million and $7.6 million for the three and nine months ended September 30, 2016, respectively, and $2.9 million and $10.1 million for the three and nine months ended September 30, 2015, respectively.


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



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2016			2015			2016			2015
Segment profit	$	58,157		$	33,216		$	149,233		$	74,348
Less: Recovery of (provision for) loan losses	14,955			(7,500		)	12,749			(30,944		)
Less: Impairment of assets	(8,741		)	(3,916		)	(11,753		)	(5,590		)
Less: Stock-based compensation expense	(1,434		)	(2,881		)	(7,644		)	(10,066		)
Less: Depreciation and amortization	(13,002		)	(15,787		)	(42,184		)	(49,804		)
Less: Income tax benefit (expense)	8,256			2,893			9,859			(3,796		)
Less: Loss on early extinguishment of debt, net	(36		)	(67		)	(1,618		)	(279		)
Net income (loss)	$	58,155		$	5,958		$	108,642		$	(26,131	)