Segment Reporting

12 Months Ended

Dec. 31, 2019

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 and its investment in SAFE (refer to Note 8). 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, 2019
Operating lease income	$	—		$	177,679		$	28,423		$	286		$	—		$	206,388
Interest income	75,636			2,018			—			—			—			77,654
Interest income from sales-type leases	—			20,496			—			—			—			20,496
Other income	4,946			16,718			17,384			7,838			8,477			55,363
Land development revenue	—			—			—			119,595			—			119,595
Earnings (losses) from equity method investments	—			29,235			8,298			4,322			(6		)	41,849
Selling profit from sales-type leases	—			180,416			—			—			—			180,416
Income from sales of real estate	—			224,654			11,969			—			—			236,623
Total revenue and other earnings	80,582			651,216			66,074			132,041			8,471			938,384
Real estate expense	—			(24,786		)	(35,322		)	(32,318		)	—			(92,426		)
Land development cost of sales	—			—			—			(109,663		)	—			(109,663		)
Other expense	(462		)	—			—			—			(12,658		)	(13,120		)
Allocated interest expense	(29,587		)	(95,154		)	(10,249		)	(20,706		)	(28,223		)	(183,919		)
Allocated general and administrative⁽²⁾	(8,254		)	(25,990		)	(2,887		)	(11,957		)	(19,085		)	(68,173		)
Segment profit (loss)⁽³⁾	$	42,279		$	505,286		$	17,616		$	(42,603	)	$	(51,495	)	$	471,083
Other significant items:
Provision for loan losses	$	6,482		$	—		$	—		$	—		$	—		$	6,482
Impairment of assets	—			2,471			3,853			6,427			668			13,419
Depreciation and amortization	—			51,091			4,977			977			1,214			58,259
Capitalized expenditures	—			31,445			5,617			99,031			—			136,093

Year Ended December 31, 2018
Operating lease income	$	—		$	151,958		$	55,677		$	557		$	—		$	208,192
Interest income	97,878			—			—			—			—			97,878
Other income	4,556			4,286			54,361			7,320			11,819			82,342
Land development revenue	—			—			—			409,710			—			409,710
Earnings (losses) from equity method investments	—			8,479			(1,003		)	(3,110		)	(9,373		)	(5,007		)
Gain from consolidation of equity method investment	—			67,877			—			—			—			67,877
Income from sales of real estate	—			45,038			80,966			—			—			126,004
Total revenue and other earnings	102,434			277,638			190,001			414,477			2,446			986,996
Real estate expense	—			(17,033		)	(80,570		)	(41,686		)	—			(139,289		)
Land development cost of sales	—			—			—			(350,181		)	—			(350,181		)
Other expense	(1,578		)	—			—			—			(4,462		)	(6,040		)
Allocated interest expense	(40,653		)	(63,706		)	(18,618		)	(21,897		)	(38,877		)	(183,751		)
Allocated general and administrative⁽²⁾	(12,997		)	(20,713		)	(6,574		)	(14,313		)	(19,975		)	(74,572		)
Segment profit (loss) ⁽³⁾	$	47,206		$	176,186		$	84,239		$	(13,600	)	$	(60,868	)	$	233,163
Other significant non-cash items:
Provision for loan losses	$	16,937		$	—		$	—		$	—		$	—		$	16,937
Impairment of assets	—			10,391			79,991			56,726			—			147,108
Depreciation and amortization	—			38,588			17,417			1,353			1,341			58,699
Capitalized expenditures	—			40,215			19,912			144,595			—			204,722



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

Year Ended December 31, 2017
Operating lease income	$	—		$	123,685		$	63,159		$	840		$	—		$	187,684
Interest income	106,548			—			—			—			—			106,548
Other income	2,633			2,603			49,641			126,259			6,955			188,091
Land development revenue	—			—			—			196,879			—			196,879
Earnings (losses) from equity method investments	—			5,086			(772		)	7,292			1,409			13,015
Income from discontinued operations	—			4,939			—			—			—			4,939
Gain from discontinued operations	—			123,418			—			—			—			123,418
Income from sales of real estate	—			87,512			4,537			—			—			92,049
Total revenue and other earnings	109,181			347,243			116,565			331,270			8,364			912,623
Real estate expense	—			(16,742		)	(89,725		)	(41,150		)	—			(147,617		)
Land development cost of sales	—			—			—			(180,916		)	—			(180,916		)
Other expense	(1,413		)	—			—			—			(19,541		)	(20,954		)
Allocated interest expense	(40,359		)	(53,710		)	(20,171		)	(28,033		)	(52,413		)	(194,686		)
Allocated general and administrative⁽²⁾	(15,223		)	(19,563		)	(8,075		)	(16,483		)	(20,726		)	(80,070		)
Segment profit (loss) ⁽³⁾	$	52,186		$	257,228		$	(1,406	)	$	64,688		$	(84,316	)	$	288,380
Other significant non-cash items:
Recovery of loan losses	$	(5,828	)	$	—		$	—		$	—		$	—		$	(5,828	)
Impairment of assets	—			5,486			6,358			20,535			—			32,379
Depreciation and amortization	—			28,132			17,684			1,896			1,321			49,033
Capitalized expenditures	—			4,838			35,754			125,744			—			166,336



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

As of December 31, 2019
Real estate
Real estate, net	$	—	$	1,327,082	$	200,137	$	—	$	—	$	1,527,219
Real estate available and held for sale	—		—		8,650		—		—		8,650
Total real estate	—		1,327,082		208,787		—		—		1,535,869
Net investment in leases	—		418,915		—		—		—		418,915
Land and development, net	—		—		—		580,545		—		580,545
Loans receivable and other lending investments, net	783,522		44,339		—		—		—		827,861
Other investments	—		760,068		61,686		42,866		43,255		907,875
Total portfolio assets	$	783,522	$	2,550,404	$	270,473	$	623,411	$	43,255	4,271,065
Cash and other assets											814,044
Total assets											$	5,085,109

As of December 31, 2018
Real estate
Real estate, net	$	—	$	1,536,494	$	234,525	$	—	$	—	$	1,771,019
Real estate available and held for sale	—		1,055		21,496		—		—		22,551
Total real estate	—		1,537,549		256,021		—		—		1,793,570
Land and development, net	—		—		—		598,218		—		598,218
Loans receivable and other lending investments, net	988,224		—		—		—		—		988,224
Other investments	—		165,804		65,643		65,312		7,516		304,275
Total portfolio assets	$	988,224	$	1,703,353	$	321,664	$	663,530	$	7,516	3,684,287
Cash and other assets											1,329,990
Total assets											$	5,014,277

_______________________________________________________________________________


(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 $30.4 million, $17.6 million and $18.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.


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



	For the Years Ended December 31,
	2019			2018			2017
Segment profit	$	471,083		$	233,163		$	288,380
Add/Less: (Provision for) recovery of loan losses	(6,482		)	(16,937		)	5,828
Less: Impairment of assets	(13,419		)	(147,108		)	(32,379		)
Less: Depreciation and amortization	(58,259		)	(58,699		)	(49,033		)
Less: Stock-based compensation expense	(30,436		)	(17,563		)	(18,812		)
Less: Income tax (expense) benefit	(438		)	(815		)	948
Less: Loss on early extinguishment of debt, net	(27,724		)	(10,367		)	(14,724		)
Net income (loss)	$	334,325		$	(18,326	)	$	180,208