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OPERATING SEGMENTS
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2012 and 2011, including segment assets and expenditures (dollars in thousands):

 

For the Three Months Ended September 30, 2012

 

Commercial

 

 

Apartments

 

 

Hotels

 

 

Land

 

 

Other

 

 

Total

 

Operating revenue

 

$

7,393

 

 

$

21,519

 

 

$

-

 

 

$

-

 

 

$

6

 

 

$

28,918

 

Operating expenses

 

 

5,172

 

 

 

10,714

 

 

 

-

 

 

 

160

 

 

 

(1

)

 

 

16,045

 

Depreciation and amortization

 

 

1,647

 

 

 

3,914

 

 

 

-

 

 

 

-

 

 

 

(66

)

 

 

5,495

 

Mortgage and loan interest

 

 

493

 

 

 

5,675

 

 

 

-

 

 

 

1,698

 

 

 

1,924

 

 

 

9,790

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,280

 

 

 

2,280

 

Gain on land sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,898

 

 

 

-

 

 

 

2,898

 

Segment operating income

 

$

81

 

 

$

1,216

 

 

$

-

 

 

$

1,040

 

 

$

429

 

 

$

2,766

 

Capital expenditures

 

 

1,404

 

 

 

269

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,673

 

Assets

 

 

166,696

 

 

 

558,519

 

 

 

-

 

 

 

218,580

 

 

 

-

 

 

 

943,795

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

3,000

 

 

$

-

 

 

$

-

 

 

$

17,410

 

 

$

-

 

 

$

20,410

 

Cost of sale

 

 

2,331

 

 

 

84

 

 

 

-

 

 

 

15,127

 

 

 

-

 

 

 

17,542

 

Deferred current gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(615

)

 

 

-

 

 

 

(615

)

Gain (loss) on sale

 

$

669

 

 

$

(84

)

 

$

-

 

 

$

2,898

 

 

$

-

 

 

$

3,483

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2011

 

Commercial

 

Apartments

 

 

Hotels

 

 

Land

 

 

Other

 

 

Total

 

Operating revenue

 

$

8,900

 

 

$

19,956

 

 

$

-

 

 

$

81

 

 

$

172

 

 

$

29,109

 

Operating expenses

 

 

5,282

 

 

 

10,278

 

 

 

-

 

 

 

466

 

 

 

(36

)

 

 

15,990

 

Depreciation and amortization

 

 

1,612

 

 

 

3,680

 

 

 

-

 

 

 

-

 

 

 

(74

)

 

 

5,218

 

Mortgage and loan interest

 

 

2,992

 

 

 

6,381

 

 

 

-

 

 

 

2,540

 

 

 

1,900

 

 

 

13,813

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,039

 

 

 

1,039

 

Gain on land sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(942

)

 

 

-

 

 

 

(942

)

Segment operating loss

 

$

(986

)

 

$

(383

)

 

$

-

 

 

$

(3,867

)

 

$

(579

)

 

$

(5,815

)

Capital expenditures

 

 

1,601

 

 

 

10

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,611

 

Assets

 

 

178,021

 

 

 

561,555

 

 

 

-

 

 

 

299,960

 

 

 

-

 

 

 

1,039,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

33,040

 

 

$

28,690

 

 

$

27,319

 

 

$

52,565

 

 

$

-

 

 

$

141,614

 

Cost of sale

 

 

29,402

 

 

 

14,601

 

 

 

27,358

 

 

 

53,507

 

 

 

-

 

 

 

124,868

 

Deferred current gain

 

 

-

 

 

 

7,407

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7,407

 

Recognized prior deferred gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(2,025

)

 

 

(2,025

)

Gain (loss) on sale

 

$

3,638

 

 

$

6,682

 

 

$

(39

)

 

$

(942

)

 

$

(2,025

)

 

$

7,314

 

 

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

 

 

 

For Three Months Ended 

September 30,

 

For the Three Months Ended September 30, 2012

 

2012

 

 

2011

 

Segment operating income (loss)

 

$

2,766

 

 

$

(5,815

)

Other non-segment items of income (expense)

 

 

 

 

 

 

 

 

General and administrative

 

 

(1,546

)

 

 

(3,641

)

Advisory fees

 

 

(2,215

)

 

 

(3,241

)

Other income

 

 

1,535

 

 

 

115

 

Loss on sale of investments

 

 

-

 

 

 

91

 

Equity in earnings of investees

 

 

134

 

 

 

(30

)

Income tax benefit (expense)

 

 

(13

)

 

 

2,815

 

Income (loss) from continuing operations

 

$

661

 

 

$

(9,706

)

 

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

 

 

 

September 30,

 

 

 

2012

 

 

2011

 

Segment assets

 

$

943,795

 

 

$

1,039,536

 

Investments in real estate partnerships

 

 

7,625

 

 

 

12,499

 

Other assets and receivables

 

 

182,170

 

 

 

191,430

 

Assets held for sale

 

 

-

 

 

 

80,666

 

Total assets

 

$

1,133,590

 

 

$

1,324,131

 

 

  

 

For the Nine Months Ended September 30, 2012

 

Commercial

 

 

Apartments

 

 

Hotels

 

 

Land

 

 

Other

 

 

Total

 

Operating revenue

 

$

26,152

 

 

$

63,282

 

 

$

-

 

 

$

-

 

 

$

81

 

 

$

89,515

 

Operating expenses

 

 

15,441

 

 

 

30,684

 

 

 

-

 

 

 

732

 

 

 

275

 

 

 

47,132

 

Depreciation and amortization

 

 

4,871

 

 

 

11,650

 

 

 

-

 

 

 

-

 

 

 

(204

)

 

 

16,317

 

Mortgage and loan interest

 

 

4,194

 

 

 

28,850

 

 

 

-

 

 

 

4,975

 

 

 

5,990

 

 

 

44,009

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10,342

 

 

 

10,342

 

Gain on land sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6,615

 

 

 

-

 

 

 

6,615

 

Segment operating gain (loss)

 

$

1,646

 

 

$

(7,902

)

 

$

-

 

 

$

908

 

 

$

4,362

 

 

$

(986

)

Capital expenditures

 

 

2,281

 

 

 

504

 

 

 

-

 

 

 

40

 

 

 

-

 

 

 

2,825

 

Assets

 

 

166,696

 

 

 

558,519

 

 

 

-

 

 

 

218,580

 

 

 

-

 

 

 

943,795

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

9,825

 

 

$

45,610

 

 

$

3,369

 

 

$

38,324

 

 

$

-

 

 

$

97,128

 

Cost of sale

 

 

9,645

 

 

 

40,067

 

 

 

252

 

 

 

32,324

 

 

 

-

 

 

 

82,288

 

Deferred current gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(615

)

 

 

-

 

 

 

(615

)

Gain on sale

 

$

180

 

 

$

5,543

 

 

$

3,117

 

 

$

6,615

 

 

$

-

 

 

$

15,455

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2011

 

Commercial

 

 

Apartments

 

 

Hotels

 

 

Land

 

 

Other

 

 

Total

 

Operating revenue

 

$

29,101

 

 

$

55,780

 

 

$

-

 

 

$

550

 

 

$

158

 

 

$

85,589

 

Operating expenses

 

 

16,204

 

 

 

28,609

 

 

 

-

 

 

 

1,594

 

 

 

250

 

 

 

46,657

 

Depreciation and amortization

 

 

5,242

 

 

 

10,386

 

 

 

-

 

 

 

-

 

 

 

(248

)

 

 

15,380

 

Mortgage and loan interest

 

 

7,601

 

 

 

21,104

 

 

 

-

 

 

 

9,126

 

 

 

5,879

 

 

 

43,710

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,910

 

 

 

2,910

 

Gain on land sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

18,431

 

 

 

-

 

 

 

18,431

 

Segment operating income (loss)

 

$

54

 

 

$

(4,319

)

 

$

-

 

 

$

8,261

 

 

$

(2,813

)

 

$

1,183

 

Capital expenditures

 

 

1,650

 

 

 

439

 

 

 

-

 

 

 

37

 

 

 

-

 

 

 

2,126

 

Assets

 

 

178,021

 

 

 

561,555

 

 

 

-

 

 

 

299,960

 

 

 

-

 

 

 

1,039,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

142,451

 

 

$

28,690

 

 

$

29,844

 

 

$

180,112

 

 

$

-

 

 

$

381,097

 

Cost of sale

 

 

151,695

 

 

 

14,601

 

 

 

26,224

 

 

 

176,550

 

 

 

-

 

 

 

369,070

 

Deferred current gain

 

 

-

 

 

 

7,407

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

7,407

 

Recognized prior deferred gain

 

 

9,143

 

 

 

963

 

 

 

-

 

 

 

14,869

 

 

 

8,909

 

 

 

33,884

 

Gain (loss) on sale

 

$

(101

)

 

$

7,645

 

 

$

3,620

 

 

$

18,431

 

 

$

8,909

 

 

$

38,504

 

 

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

 

 

 

For Nine Months Ended 

 

 

 

September 30,

 

 

 

2012

 

 

2011

 

Segment operating gain (loss)

 

$

(986

)

 

$

1,183

 

Other non-segment items of income (expense)

 

 

 

 

 

 

 

 

General and administrative

 

 

(5,052

)

 

 

(10,556

)

Advisory fees

 

 

(7,573

)

 

 

(10,225

)

Provision on impairment of notes receivable and real estate assets

 

 

-

 

 

 

(5,622

)

Other income

 

 

5,334

 

 

 

1,881

 

Equity in earnings of investees

 

 

284

 

 

 

(104

)

Gain (loss) on sale of investment

 

 

(361

)

 

 

91

 

Income tax benefit

 

 

2,535

 

 

 

5,166

 

Loss from continuing operations

 

$

(5,819

)

 

$

(18,186

)

 

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

 

 

 

September 30,

 

 

 

2012

 

 

2011

 

Segment assets

 

$

943,795

 

 

$

1,039,536

 

Investments in real estate partnerships

 

 

7,625

 

 

 

12,499

 

Other assets

 

 

182,170

 

 

 

191,430

 

Assets held for sale

 

 

-

 

 

 

80,666

 

Total assets

 

$

1,133,590

 

 

$

1,324,131