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Segment Reporting

12 Months Ended

Dec. 31, 2022

Note 17—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: Net Lease, Real Estate Finance, Operating Properties and Land and Development. The Net Lease segment (Refer to Note 3 - Net Lease Sale and Discontinued Operations) includes the Company’s investments in SAFE and its Ground Lease adjacent businesses (refer to Note 8). 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 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):


	Net		Real Estate		Operating		Land and		Corporate/		Company
	Lease⁽¹⁾		Finance		Properties		Development		Other⁽²⁾		Total
Year Ended December 31, 2022
Operating lease income	$	—	$	—	$	12,454	$	405	$	—	$	12,859
Interest income		75		12,340		—		—		—		12,415
Interest income from sales-type leases		861		—		8		—		—		869
Other income		20,560		3,570		27,188		6,323		12,514		70,155
Land development revenue		—		—		—		61,753		—		61,753
Earnings (losses) from equity method investments		41,692		4,623		14,850		4,775		(7,260)		58,680
Income from sales of real estate		1,443		—		25,186		—		—		26,629
Total revenue and other earnings		64,631		20,533		79,686		73,256		5,254		243,360
Real estate expense		(1,387)		—		(33,900)		(16,327)		—		(51,614)
Land development cost of sales		—		—		—		(63,441)		—		(63,441)
Other expense		(595)		(308)		—		(498)		(7,512)		(8,913)
Allocated interest expense		(54,781)		(8,306)		(4,649)		(10,865)		(19,450)		(98,051)
Allocated general and administrative⁽³⁾		(15,596)		(4,044)		(2,255)		(8,197)		(18,843)		(48,935)
Segment profit (loss)⁽⁴⁾	$	(7,728)	$	7,875	$	38,882	$	(26,072)	$	(40,551)	$	(27,594)
Other significant items:
Provision for loan losses	$	—	$	44,998	$	—	$	—	$	—	$	44,998
Impairment of assets		—		—		2,364		12,727		18		15,109
Depreciation and amortization		—		—		3,797		1,113		560		5,470
Capitalized expenditures		—		—		881		20,518		—		21,399

Year Ended December 31, 2021
Operating lease income	$	—	$	—	$	16,445	$	379	$	—	$	16,824
Interest income		1,707		29,522		—		—		—		31,229
Interest income from sales-type leases		1,215		—		—		—		—		1,215
Other income		14,888		1,260		27,342		6,899		19,870		70,259
Land development revenue		—		—		—		189,103		—		189,103
Earnings (losses) from equity method investments		108,399		3,074		15,108		21,492		6,271		154,344
Income from sales of real estate		—		—		26,319		—		—		26,319
Total revenue and other earnings		126,209		33,856		85,214		217,873		26,141		489,293
Real estate expense		(424)		—		(27,020)		(18,550)		—		(45,994)
Land development cost of sales		—		—		—		(171,961)		—		(171,961)
Other expense		(587)		(515)		—		(70)		(6,942)		(8,114)
Allocated interest expense		(61,685)		(14,830)		(6,949)		(15,242)		(16,694)		(115,400)
Allocated general and administrative⁽³⁾		(25,077)		(4,736)		(2,227)		(9,555)		(20,847)		(62,442)
Segment profit (loss)⁽⁴⁾	$	38,436	$	13,775	$	49,018	$	2,495	$	(18,342)	$	85,382
Other significant items:
Provision for loan losses	$	—	$	(8,085)	$	—	$	—	$	—	$	(8,085)
Impairment of assets		—		—		678		—		—		678
Depreciation and amortization		—		—		5,585		902		585		7,072
Capitalized expenditures		2,578		—		655		24,036		—		27,269

Year Ended December 31, 2020
Operating lease income	$	2,706	$	—	$	21,214	$	356	$	—	$	24,276
Interest income		—		56,676		—		—		—		56,676
Other income		12,704		11,975		8,065		19,030		26,671		78,445
Land development revenue		—		—		—		164,702		—		164,702
Earnings (losses) from equity method investments		53,476		—		(16,361)		3,432		(1,075)		39,472
Income from sales of real estate		6,056		—		262		—		—		6,318
Total revenue and other earnings		74,942		68,651		13,180		187,520		25,596		369,889
Real estate expense		(161)		—		(22,936)		(22,986)		—		(46,083)
Land development cost of sales		—		—		—		(177,727)		—		(177,727)
Other expense		—		(266)		—		—		(303)		(569)
Allocated interest expense		(58,462)		(23,390)		(8,951)		(17,940)		(18,085)		(126,828)
Allocated general and administrative⁽⁵⁾		(23,223)		(6,622)		(2,591)		(9,990)		(19,099)		(61,525)
Segment profit (loss)⁽⁴⁾	$	(6,904)	$	38,373	$	(21,298)	$	(41,123)	$	(11,891)	$	(42,843)
Other significant non-cash items:
Provision for loan losses	$	—	$	8,866	$	—	$	—	$	—	$	8,866
Impairment of assets		—		—		3,053		2,738		—		5,791
Depreciation and amortization		—		—		5,142		952		1,233		7,327
Capitalized expenditures		21,764		—		1,636		30,506		—		53,906

As of December 31, 2022
Real estate, net	$	—	$	—	$	76,497	$	—	$	—	$	76,497
Real estate available and held for sale		—		—		3,977		—		—		3,977
Total real estate		—		—		80,474		—		—		80,474
Real estate and other assets available and held for sale and classified as discontinued operations⁽¹⁾		2,939		—		—		—		—		2,939
Land and development, net		—		—		—		232,014		—		232,014
Loans receivable and other lending investments, net		—		48,655		—		—		—		48,655
Loan receivable held for sale		—		37,650		—		—		—		37,650
Other investments		1,302,877		25,389		32,405		—		11		1,360,682
Total portfolio assets	$	1,305,816	$	111,694	$	112,879	$	232,014	$	11		1,762,414
Cash and other assets												1,490,814
Total assets											$	3,253,228

As of December 31, 2021
Real estate, net	$	—	$	—	$	92,150	$	—	$	—	$	92,150
Real estate available and held for sale		—		—		301		—		—		301
Total real estate		—		—		92,451		—		—		92,451
Real estate and other assets available and held for sale and classified as discontinued operations⁽¹⁾		2,299,711		—		—		—		—		2,299,711
Net investment in leases		43,215		—		—		—		—		43,215
Land and development, net		—		—		—		286,810		—		286,810
Loans receivable and other lending investments, net		—		332,844		—		—		—		332,844
Loan receivable held for sale		43,215		—		—		—		—		43,215
Other investments		1,186,162		48,862		43,252		1,096		17,909		1,297,281
Total portfolio assets	$	3,572,303	$	381,706	$	135,703	$	287,906	$	17,909		4,395,527
Cash and other assets												445,007
Total assets											$	4,840,534

(1)	Refer to Note 3 – Net Lease Sale and Discontinued Operations.

(2)

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.

(3)	General and administrative excludes stock-based compensation of ($27.7) million, $69.3 million and $39.4 million for the years ended December 31, 2022, 2021 and 2020, respectively.

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


	For the Years Ended December 31,
	2022		2021		2020
Segment profit	$	(27,594)	$	85,382	$	(42,843)
Less: (Provision for) recovery of loan losses		(44,998)		8,085		(8,866)
Less: Impairment of assets		(15,109)		(678)		(5,791)
Less: Stock-based compensation		27,664		(69,261)		(39,354)
Less: Depreciation and amortization		(5,470)		(7,072)		(7,327)
Less: Income tax benefit (expense)		(567)		118		(89)
Less: Loss on early extinguishment of debt, net		(131,200)		—		(12,038)
Less: Net income from discontinued operations		797,688		121,452		85,455
Net income (loss)	$	600,414	$	138,026	$	(30,853)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599

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-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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