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Segment Reporting
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Reporting
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
Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Operating lease income
$
—

 
$
148,002

 
$
64,593

 
$
423

 
$
—

 
$
213,018

Interest income
129,153

 
—

 
—

 
—

 
—

 
129,153

Other income
4,658

 
1,633

 
33,216

 
3,170

 
3,838

 
46,515

Land development revenue
—

 
—

 
—

 
88,340

 
—

 
88,340

Earnings (loss) from equity method investments
—

 
3,567

 
33,863

 
30,012

 
9,907

 
77,349

Income from sales of real estate
—

 
21,138

 
75,357

 
8,801

 
—

 
105,296

    Total revenue and other earnings
133,811

 
174,340

 
207,029

 
130,746

 
13,745

 
659,671

Real estate expense
—

 
(19,058
)
 
(82,401
)
 
(36,963
)
 
—

 
(138,422
)
Land development cost of sales
—

 
—

 
—

 
(62,007
)
 
—

 
(62,007
)
Other expense
(2,719
)
 
—

 
—

 
—

 
(3,164
)
 
(5,883
)
Allocated interest expense
(57,787
)
 
(65,880
)
 
(23,156
)
 
(34,888
)
 
(39,687
)
 
(221,398
)
Allocated general and administrative(2)
(15,311
)
 
(17,585
)
 
(6,574
)
 
(13,693
)
 
(19,975
)
 
(73,138
)
      Segment profit (loss) (3)
$
57,994

 
$
71,817

 
$
94,898

 
$
(16,805
)
 
$
(49,081
)
 
$
158,823

Other significant non-cash items:
 
 
 
 
 
 
 
 
 
 
 
Recovery of loan losses
$
(12,514
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(12,514
)
Impairment of assets
—

 
4,829

 
5,855

 
3,800

 
—

 
14,484

Depreciation and amortization
—

 
34,049

 
17,887

 
1,296

 
1,097

 
54,329

Capitalized expenditures
—

 
3,667

 
56,784

 
109,548

 
—

 
169,999

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Finance
 
Net Lease
 
Operating Properties
 
Land and Development
 
Corporate/Other(1)
 
Company Total
Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
Operating lease income
$
—

 
$
151,481

 
$
77,454

 
$
785

 
$
—

 
$
229,720

Interest income
134,687

 
—

 
—

 
—

 
—

 
134,687

Other income
9,737

 
357

 
34,637

 
1,219

 
3,981

 
49,931

Land development revenue
—

 
—

 
—

 
100,216

 
—

 
100,216

Earnings (loss) from equity method investments
—

 
5,221

 
1,663

 
16,683

 
8,586

 
32,153

Income from sales of real estate
—

 
40,082

 
53,734

 
—

 
—

 
93,816

    Total revenue and other earnings
144,424

 
197,141

 
167,488

 
118,903

 
12,567

 
640,523

Real estate expense
—

 
(21,855
)
 
(95,888
)
 
(29,007
)
 
—

 
(146,750
)
Land development cost of sales
—

 
—

 
—

 
(67,382
)
 
—

 
(67,382
)
Other expense
(2,291
)
 
—

 
—

 
—

 
(4,083
)
 
(6,374
)
Allocated interest expense
(57,109
)
 
(66,504
)
 
(28,014
)
 
(32,087
)
 
(40,925
)
 
(224,639
)
Allocated general and administrative(2)
(13,128
)
 
(15,569
)
 
(6,988
)
 
(11,488
)
 
(22,091
)
 
(69,264
)
      Segment profit (loss) (3)
$
71,896

 
$
93,213

 
$
36,598

 
$
(21,061
)
 
$
(54,532
)
 
$
126,114

Other significant non-cash items:
 
 
 
 
 
 
 
 
 
 
 
Provision for loan losses
$
36,567

 
$
—

 
$
—

 
$
—

 
$
—

 
$
36,567

Impairment of assets
—

 
—

 
5,935

 
4,589

 
—

 
10,524

Depreciation and amortization
—

 
38,138

 
24,548

 
1,422

 
1,139

 
65,247

Capitalized expenditures
—

 
4,195

 
84,103

 
94,971

 
—

 
183,269

 
Real Estate Finance
 
Net Lease
 
Operating Properties
 
Land and Development
 
Corporate/Other(1)
 
Company Total
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2014
 
 
 
 
 
 
 
 
 
 
Operating lease income
$
—

 
$
151,934

 
$
90,331

 
$
835

 
$
—

 
$
243,100

Interest income
122,704

 
—

 
—

 
—

 
—

 
122,704

Other income
21,217

 
4,437

 
42,000

 
3,327

 
10,052

 
81,033

Land development revenue
—

 
—

 
—

 
15,191

 
—

 
15,191

Earnings (loss) from equity method investments
—

 
3,260

 
1,669

 
14,966

 
75,010

 
94,905

Income from sales of real estate
—

 
6,206

 
83,737

 
—

 
—

 
89,943

    Total revenue and other earnings
143,921

 
165,837

 
217,737

 
34,319

 
85,062

 
646,876

Real estate expense
—

 
(22,967
)
 
(113,504
)
 
(26,918
)
 
—

 
(163,389
)
Land development cost of sales
—

 
—

 
—

 
(12,840
)
 
—

 
(12,840
)
Other expense
(243
)
 
—

 
—

 
—

 
(6,097
)
 
(6,340
)
Allocated interest expense(5)
(58,043
)
 
(72,089
)
 
(39,535
)
 
(29,432
)
 
(25,384
)
 
(224,483
)
Allocated general and administrative(2)
(13,211
)
 
(16,603
)
 
(9,608
)
 
(13,062
)
 
(22,489
)
 
(74,973
)
      Segment profit (loss) (3)
$
72,424

 
$
54,178

 
$
55,090

 
$
(47,933
)
 
$
31,092

 
$
164,851

Other significant non-cash items:
 
 
 
 
 
 
 
 
 
 
 
Recovery of loan losses
$
(1,714
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
(1,714
)
Impairment of assets(5)
—

 
3,689

 
8,131

 
22,814

 
—

 
34,634

Depreciation and amortization(5)
—

 
38,841

 
32,142

 
1,440

 
1,148

 
73,571

Capitalized expenditures
—

 
3,933

 
61,186

 
80,119

 
—

 
145,238

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real Estate Finance
 
Net Lease
 
Operating Properties
 
Land and Development
 
Corporate/Other(1)
 
Company Total
As of December 31, 2016
 
 
 
 
 
 
 
 
 
 

Real estate
 

 
 

 
 

 
 

 
 

 
 
Real estate, net
$
—

 
$
1,015,590

 
$
476,162

 
$
—

 
$
—

 
$
1,491,752

Real estate available and held for sale
—

 
1,284

 
82,480

 
—

 
—

 
83,764

Total real estate
—

 
1,016,874

 
558,642

 
—

 
—

 
1,575,516

Land and development, net
—

 
—

 
—

 
945,565

 
—

 
945,565

Loans receivable and other lending investments, net
1,450,439

 
—

 
—

 
—

 
—

 
1,450,439

Other investments
—

 
92,669

 
3,583

 
84,804

 
33,350

 
214,406

Total portfolio assets
$
1,450,439

 
$
1,109,543

 
$
562,225

 
$
1,030,369

 
$
33,350

 
4,185,926

Cash and other assets
 
 
 
 
 
 
 
 
 
 
639,588

Total assets
 
 
 
 
 
 
 
 
 
 
$
4,825,514

 
 
 
 
 
 
 
 
 
 
 
 
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, net
—

 
—

 
—

 
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

_______________________________________________________________________________
(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 $10.9 million, $12.0 million and $13.3 million for the years ended December 31, 2016, 2015 and 2014, respectively.
(3)
The following is a reconciliation of segment profit to net income (loss) ($ in thousands):
 
For the Years Ended December 31,
 
2016
 
2015
 
2014
Segment profit
$
158,823

 
$
126,114

 
$
164,851

Less: Recovery of (provision for) loan losses
12,514

 
(36,567
)
 
1,714

Less: Impairment of assets
(14,484
)
 
(10,524
)
 
(34,634
)
Less: Depreciation and amortization
(54,329
)
 
(65,247
)
 
(73,571
)
Less: Stock-based compensation expense
(10,889
)
 
(12,013
)
 
(13,314
)
Less: Income tax benefit (expense)
10,166

 
(7,639
)
 
(3,912
)
Less: Loss on early extinguishment of debt, net
(1,619
)
 
(281
)
 
(25,369
)
Net income (loss)
$
100,182

 
$
(6,157
)
 
$
15,765