Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2017

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 and Development			Corporate/Other⁽¹⁾			Company Total
Three Months Ended March 31, 2017:
Operating lease income	$	—		$	36,496		$	15,989		$	106		$	—		$	52,591
Interest income	29,058			—			—			—			—			29,058
Other income	76			506			10,355			386			541			11,864
Land development revenue	—			—			—			20,050			—			20,050
Earnings (loss) from equity method investments	—			981			632			3,842			247			5,702
Income from sales of real estate	—			6,720			1,898			—			—			8,618
Total revenue and other earnings	29,134			44,703			28,874			24,384			788			127,883
Real estate expense	—			(4,726		)	(21,518		)	(9,497		)	—			(35,741		)
Land development cost of sales	—			—			—			(15,910		)	—			(15,910		)
Other expense	(605		)	—			—			—			(1,264		)	(1,869		)
Allocated interest expense	(11,888		)	(15,783		)	(5,606		)	(8,118		)	(9,798		)	(51,193		)
Allocated general and administrative⁽²⁾	(3,596		)	(4,642		)	(1,755		)	(3,926		)	(5,373		)	(19,292		)
Segment profit (loss)⁽³⁾	$	13,045		$	19,552		$	(5	)	$	(13,067	)	$	(15,647	)	$	3,878
Other significant items:
Recovery of loan losses	$	(4,928	)	$	—		$	—		$	—		$	—		$	(4,928	)
Impairment of assets	—			—			4,413			—			—			4,413
Depreciation and amortization	—			8,428			4,039			270			330			13,067
Capitalized expenditures	—			771			8,210			26,592			—			35,573

Three Months Ended March 31, 2016:
Operating lease income	$	—		$	35,750		$	19,081		$	106		$	—		$	54,937
Interest income	33,219			—			—			—			—			33,219
Other income	1,297			80			7,344			1,065			1,755			11,541
Land development revenue	—			—			—			14,947			—			14,947
Earnings (loss) from equity method investments	—			946			(142		)	6,661			802			8,267
Income from sales of real estate	—			4,928			5,530			—			—			10,458
Total revenue and other earnings	34,516			41,704			31,813			22,779			2,557			133,369
Real estate expense	—			(4,508		)	(21,120		)	(8,677		)	—			(34,305		)
Land development cost of sales	—			—			—			(11,575		)	—			(11,575		)
Other expense	86			—			—			—			(826		)	(740		)
Allocated interest expense	(14,702		)	(16,236		)	(6,620		)	(8,359		)	(11,104		)	(57,021		)
Allocated general and administrative⁽²⁾	(3,831		)	(4,296		)	(1,870		)	(3,270		)	(5,258		)	(18,525		)
Segment profit (loss)⁽³⁾	$	16,069		$	16,664		$	2,203		$	(9,102	)	$	(14,631	)	$	11,203
Other significant items:
Provision for loan losses	$	1,506		$	—		$	—		$	—		$	—		$	1,506
Depreciation and amortization	—			8,851			5,283			300			274			14,708
Capitalized expenditures	—			851			15,797			34,268			—			50,916



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

As of March 31, 2017
Real estate
Real estate, net	$	—	$	998,314	$	478,277	$	—	$	—	$	1,476,591
Real estate available and held for sale	—		—		71,934		—		—		71,934
Total real estate	—		998,314		550,211		—		—		1,548,525
Land and development, net	—		—		—		955,150		—		955,150
Loans receivable and other lending investments, net	1,381,227		—		—		—		—		1,381,227
Other investments	—		92,024		3,215		69,454		32,866		197,559
Total portfolio assets	$	1,381,227	$	1,090,338	$	553,426	$	1,024,604	$	32,866	4,082,461
Cash and other assets											1,212,055
Total assets											$	5,294,516

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

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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 $5.9 million and $4.6 million for the three months ended March 31, 2017 and 2016. respectively.


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



	For the Three Months Ended March 31,
	2017			2016
Segment profit	$	3,878		$	11,203
Less: Recovery of (provision for) loan losses	4,928			(1,506		)
Less: Impairment of assets	(4,413		)	—
Less: Stock-based compensation expense	(5,881		)	(4,577		)
Less: Depreciation and amortization	(13,067		)	(14,708		)
Less: Income tax (expense) benefit	(607		)	414
Less: Loss on early extinguishment of debt, net	(210		)	(125		)
Net income (loss)	$	(15,372	)	$	(9,299	)

Reconciliation of segment profit to income (loss)

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



	For the Three Months Ended March 31,
	2017			2016
Segment profit	$	3,878		$	11,203
Less: Recovery of (provision for) loan losses	4,928			(1,506		)
Less: Impairment of assets	(4,413		)	—
Less: Stock-based compensation expense	(5,881		)	(4,577		)
Less: Depreciation and amortization	(13,067		)	(14,708		)
Less: Income tax (expense) benefit	(607		)	414
Less: Loss on early extinguishment of debt, net	(210		)	(125		)
Net income (loss)	$	(15,372	)	$	(9,299	)