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OPERATING SEGMENTS
 3 Months Ended
Mar. 31, 2012
OPERATING SEGMENTS  
OPERATING SEGMENTS

NOTE 8. OPERATING SEGMENTS

 

Our segments are based on our method of internal reporting which classifies our operations by property type.  Our property types are grouped into commercial, apartments, hotels, land and other operating segments.  Significant differences among the accounting policies of the operating segments as compared to the consolidated financial statements principally involve the calculation and allocation of administrative and other expenses.  Management evaluates the performance of each of the operating segments and allocates resources to them based on their net operating income and cash flow.

 

Items of income that are not reflected in the segments are interest, other income, gain on debt extinguishment, gain on condemnation award, equity in partnerships, and gains on sale of real estate. Expenses that are not reflected in the segments are provision for losses, advisory, net income and incentive fees, general and administrative, non-controlling interests and net loss from discontinued operations before gains on sale of real estate.

 

Presented below is our reportable segments’ operating income for the three months ended March 31, 2012 and 2011, including segment assets and expenditures (dollars in thousands):

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2012

 

Properties

 

 

Apartments

 

Hotels

 

 

Land

 

 

Other

 

 

Total

 

Operating revenue

 

$

9,197

 

 

$

20,536

 

 

$

544

 

 

$

-

 

 

$

41

 

 

$

30,318

 

Operating expenses

 

 

5,273

 

 

 

9,715

 

 

 

553

 

 

 

279

 

 

 

388

 

 

 

16,208

 

Depreciation and amortization

 

 

1,671

 

 

 

3,886

 

 

 

15

 

 

 

-

 

 

 

(69

)

 

 

5,503

 

Mortgage and loan interest

 

 

2,995

 

 

 

10,922

 

 

 

62

 

 

 

1,704

 

 

 

2,052

 

 

 

17,735

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

3,340

 

 

 

3,340

 

Loss on land sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,021

)

 

 

-

 

 

 

(1,021

)

Segment operating gain (loss)

 

$

(742

)

 

$

(3,987

)

 

$

(86

)

 

$

(3,004

)

 

$

1,010

 

 

$

(6,809

)

Capital expenditures

 

 

447

 

 

 

198

 

 

 

-

 

 

 

5

 

 

 

-

 

 

 

650

 

Assets

 

 

172,663

 

 

 

564,401

 

 

 

192

 

 

 

229,421

 

 

 

-

 

 

 

966,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

-

 

 

$

21,146

 

 

$

-

 

 

$

11,543

 

 

$

-

 

 

$

32,689

 

Cost of sale

 

 

-

 

 

 

17,558

 

 

 

-

 

 

 

12,564

 

 

 

-

 

 

 

30,122

 

Deferred current gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Recognized prior deferred gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Gain (loss) on sale

 

$

-

 

 

$

3,588

 

 

$

-

 

 

$

(1,021

)

 

$

-

 

 

$

2,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31, 2011

 

Properties

 

 

Apartments

 

Hotels

 

 

Land

 

 

Other

 

 

Total

 

Operating revenue

 

$

9,322

 

 

$

17,798

 

 

$

520

 

 

$

270

 

 

$

8

 

 

$

27,918

 

Operating expenses

 

 

5,868

 

 

 

8,973

 

 

 

452

 

 

 

577

 

 

 

49

 

 

 

15,919

 

Depreciation and amortization

 

 

1,978

 

 

 

3,376

 

 

 

16

 

 

 

-

 

 

 

(88

)

 

 

5,282

 

Mortgage and loan interest

 

 

2,495

 

 

 

6,744

 

 

 

62

 

 

 

3,800

 

 

 

1,565

 

 

 

14,666

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

668

 

 

 

668

 

Gain on land sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,344

 

 

 

-

 

 

 

5,344

 

Segment operating gain (loss)

 

$

(1,019

)

 

$

(1,295

)

 

$

(10

)

 

$

1,237

 

 

$

(850

)

 

$

(1,937

)

Capital expenditures

 

 

61,254

 

 

 

10,920

 

 

 

2,792

 

 

 

8,924

 

 

 

16

 

 

 

83,906

 

Assets

 

 

182,828

 

 

 

541,572

 

 

 

252

 

 

 

389,805

 

 

 

(18,991

)

 

 

1,095,466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

5,168

 

 

$

-

 

 

$

-

 

 

$

50,532

 

 

$

-

 

 

$

55,700

 

Cost of sale

 

 

4,882

 

 

 

-

 

 

 

-

 

 

 

46,328

 

 

 

-

 

 

 

51,210

 

Deferred current gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Recognized prior deferred gain

 

 

3,851

 

 

 

-

 

 

 

-

 

 

 

1,140

 

 

 

-

 

 

 

4,991

 

Gain on sale

 

$

4,137

 

 

$

-

 

 

$

-

 

 

$

5,344

 

 

$

-

 

 

$

9,481

 

 

 

The table below reconciles the segment information to the corresponding amounts in the Consolidated Statements of Operations:

 

 

 

For Three Months Ended March 31,

 

For the Three Months Ended March 31, 2012

 

2012

 

 

2011

 

Segment operating loss

 

$

(6,809

)

 

$

(1,937

)

Other non-segment items of income (expense)

 

 

 

 

 

 

 

 

General and administrative

 

 

(2,606

)

 

 

(3,242

)

Advisory fees

 

 

(2,658

)

 

 

(3,522

)

Provision on impairment of notes receivable and real estate assets

 

 

-

 

 

 

(5,178

)

Other income

 

 

1,628

 

 

 

1,214

 

Loss on sale of investments

 

 

(362

)

 

 

-

 

Equity in earnings of investees

 

 

117

 

 

 

(95

)

Income tax benefit

 

 

1,125

 

 

 

485

 

Loss from continuing operations

 

$

(9,565

)

 

$

(12,275

)

 

The table below reconciles the segment information to the corresponding amounts in the Consolidated Balance Sheets:

 

 

 

For Three Months Ended March 31,

 

 

 

2012

 

 

2011

 

Segment assets

 

$

966,677

 

 

$

1,095,466

 

Investments in real estate partnerships

 

 

7,848

 

 

 

12,152

 

Other assets and receivables

 

 

178,466

 

 

 

188,530

 

Assets held for sale

 

 

28,663

 

 

 

199,485

 

Total assets

 

$

1,181,654

 

 

$

1,495,633