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, 2018:
Operating lease income	$	—		$	45,204		$	13,803		$	102		$	—		$	59,109
Interest income	22,915			—			—			—			—			22,915
Other income	753			1,008			21,253			857			3,937			27,808
Land development revenue	—			—			—			12,309			—			12,309
Earnings (losses) from equity method investments	—			775			(2,223		)	161			652			(635		)
Income from sales of real estate	—			—			5,409			—			—			5,409
Total revenue and other earnings	23,668			46,987			38,242			13,429			4,589			126,915
Real estate expense	—			(4,774		)	(18,649		)	(8,864		)	—			(32,287		)
Land development cost of sales	—			—			—			(12,114		)	—			(12,114		)
Other expense	(179		)	—			—			—			(119		)	(298		)
Allocated interest expense	(9,558		)	(16,454		)	(4,547		)	(5,014		)	(11,646		)	(47,219		)
Allocated general and administrative⁽²⁾	(2,693		)	(5,740		)	(1,429		)	(3,576		)	(4,524		)	(17,962		)
Segment profit (loss)⁽³⁾	$	11,238		$	20,019		$	13,617		$	(16,139	)	$	(11,700	)	$	17,035
Other significant items:
Provision for loan losses	$	200		$	—		$	—		$	—		$	—		$	200
Impairment of assets	—			—			989			—			—			989
Depreciation and amortization	—			12,554			6,857			263			305			19,979
Capitalized expenditures	—			28,315			5,860			33,608			—			67,783

Three Months Ended September 30, 2017:
Operating lease income	$	—		$	31,503		$	16,048		$	255		$	—		$	47,806
Interest income	25,442			—			—			—			—			25,442
Other income	1,298			953			14,097			1,174			3,140			20,662
Land development revenue	—			—			—			25,962			—			25,962
Earnings from equity method investments	—			1,302			(399		)	948			610			2,461
Income from sales of real estate	—			18,765			548			—			—			19,313
Total revenue and other earnings	26,740			52,523			30,294			28,339			3,750			141,646
Real estate expense	—			(4,423		)	(23,185		)	(8,672		)	—			(36,280		)



	Real Estate Finance			Net Lease			Operating Properties			Land and Development			Corporate/Other⁽¹⁾			Company Total
Land development cost of sales	—			—			—			(27,512		)	—			(27,512		)
Other expense	(261		)	—			—			—			(2,443		)	(2,704		)
Allocated interest expense	(9,165		)	(12,255		)	(4,860		)	(6,529		)	(15,923		)	(48,732		)
Allocated general and administrative⁽²⁾	(3,334		)	(4,315		)	(1,866		)	(3,706		)	(4,800		)	(18,021		)
Segment profit (loss)⁽³⁾	$	13,980		$	31,530		$	383		$	(18,080	)	$	(19,416	)	$	8,397
Other significant items:
Recovery of loan losses	$	(2,600	)	$	—		$	—		$	—		$	—		$	(2,600	)
Impairment of assets	—			—			595			—			—			595
Depreciation and amortization	—			6,623			4,343			546			334			11,846
Capitalized expenditures	—			2,384			7,644			33,788			—			43,816

Nine Months Ended September 30, 2018
Operating lease income	$	—		$	104,241		$	44,818		$	457		$	—		$	149,516
Interest income	74,824			—			—			—			—			74,824
Other income	4,271			2,755			46,748			2,640			7,537			63,951
Land development revenue	—			—			—			369,665			—			369,665
Earnings (losses) from equity method investments	—			7,028			(4,814		)	2,726			(9,521		)	(4,581		)
Gain on consolidation of equity method investment	—			67,877			—			—			—			67,877
Income from sales of real estate	—			24,907			54,446			—			—			79,353
Total revenue and other earnings	79,095			206,808			141,198			375,488			(1,984		)	800,605
Real estate expense	—			(12,186		)	(64,091		)	(29,234		)	—			(105,511		)
Land development cost of sales	—			—			—			(318,881		)	—			(318,881		)
Other expense	(869		)	—			—			—			(4,311		)	(5,180		)
Allocated interest expense	(31,971		)	(44,246		)	(14,653		)	(16,795		)	(27,907		)	(135,572		)
Allocated general and administrative⁽²⁾	(10,514		)	(15,179		)	(5,447		)	(11,128		)	(15,142		)	(57,410		)
Segment profit (loss)⁽³⁾	$	35,741		$	135,197		$	57,007		$	(550	)	$	(49,344	)	$	178,051
Other significant non-cash items:
Provision for loan losses	$	18,237		$	—		$	—		$	—		$	—		$	18,237
Impairment of assets	—			4,342			5,535			1,300			—			11,177
Depreciation and amortization	—			25,205			14,522			1,095			1,035			41,857
Capitalized expenditures	—			29,512			18,186			107,658			—			155,356

Nine Months Ended September 30, 2017:
Operating lease income	$	—		$	93,606		$	47,977		$	572		$	—		$	142,155
Interest income	83,145			—			—			—			—			83,145
Other income	1,854			2,009			37,720			125,430			5,024			172,037
Land development revenue	—			—			—			178,722			—			178,722
Earnings (losses) from equity method investments	—			3,363			702			8,396			1,216			13,677
Income from discontinued operations	—			4,939			—			—			—			4,939
Gain from discontinued operations	—			123,418			—			—			—			123,418
Income from sales of real estate	—			24,977			3,290			—			—			28,267
Total revenue and other earnings	84,999			252,312			89,689			313,120			6,240			746,360
Real estate expense	—			(13,062		)	(67,356		)	(26,136		)	—			(106,554		)



	Real Estate Finance			Net Lease			Operating Properties			Land and Development			Corporate/Other⁽¹⁾			Company Total
Land development cost of sales	—			—			—			(165,888		)	—			(165,888		)
Other expense	(1,263		)	—			—			—			(19,586		)	(20,849		)
Allocated interest expense	(31,561		)	(41,659		)	(15,472		)	(21,769		)	(38,223		)	(148,684		)
Allocated general and administrative⁽²⁾	(11,621		)	(14,878		)	(5,985		)	(12,636		)	(15,497		)	(60,617		)
Segment profit (loss)⁽³⁾	$	40,554		$	182,713		$	876		$	86,691		$	(67,066	)	$	243,768
Other significant non-cash items:
Recovery of loan losses	$	(8,128	)	$	—		$	—		$	—		$	—		$	(8,128	)
Impairment of assets	—			219			5,009			10,064			—			15,292
Depreciation and amortization	—			21,662			13,305			1,337			993			37,297
Capitalized expenditures	—			4,071			24,210			90,666			—			118,947

As of September 30, 2018
Real estate
Real estate, net	$	—		$	1,543,775		$	350,014		$	—		$	—		$	1,893,789
Real estate available and held for sale	—			7,289			54,260			—			—			61,549
Total real estate	—			1,551,064			404,274			—			—			1,955,338
Land and development, net	—			—			—			650,531			—			650,531
Loans receivable and other lending investments, net	1,029,052			—			—			—			—			1,029,052
Other investments	—			150,533			74,089			70,429			7,267			302,318
Total portfolio assets	$	1,029,052		$	1,701,597		$	478,363		$	720,960		$	7,267		3,937,239
Cash and other assets																1,142,750
Total assets																$	5,079,989

As of December 31, 2017
Real estate
Real estate, net	$	—		$	815,783		$	466,248		$	—		$	—		$	1,282,031
Real estate available and held for sale	—			—			68,588			—			—			68,588
Total real estate	—			815,783			534,836			—			—			1,350,619
Land and development, net	—			—			—			860,311			—			860,311
Loans receivable and other lending investments, net	1,300,655			—			—			—			—			1,300,655
Other investments	—			205,007			38,761			63,855			13,618			321,241
Total portfolio assets	$	1,300,655		$	1,020,790		$	573,597		$	924,166		$	13,618		3,832,826
Cash and other assets																898,252
Total assets																$	4,731,078

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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 $3.7 million and $16.2 million for the three and nine months ended September 30, 2018, respectively, and $2.9 million and $12.7 million for the three and nine months ended September 30, 2017, 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,
	2018			2017			2018			2017
Segment profit	$	17,035		$	8,397		$	178,051		$	243,768
Add: (Provision for) recovery of loan losses	(200		)	2,600			(18,237		)	8,128
Less: Impairment of assets	(989		)	(595		)	(11,177		)	(15,292		)
Less: Stock-based compensation expense	(3,651		)	(2,934		)	(16,245		)	(12,730		)
Less: Depreciation and amortization	(19,979		)	(11,846		)	(41,857		)	(37,297		)
Less: Income tax (expense) benefit	(137		)	1,278			(386		)	(972		)
Less: Income tax expense from discontinued operations	—			—			—			(4,545		)
Less: Loss on early extinguishment of debt, net	(911		)	(616		)	(3,447		)	(4,142		)
Net income (loss)	$	(8,832	)	$	(3,716	)	$	86,702		$	176,918