XML 49 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
OPERATING SEGMENTS
 9 Months Ended
Sep. 30, 2014
OPERATING SEGMENTS  
OPERATING SEGMENTS

NOTE 7. 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.

 

The segment labeled as “Other” consists of revenue and operating expenses related to the notes receivable and corporate debt.

 

 

Presented below is our reportable segments’ operating income for the three and nine months ended September 30, 2014 and 2013, including segment assets and expenditures (dollars in thousands):

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2014

Properties

 

 

Apartments

 

 

Hotels

 

 

Land

 

 

Other

 

 

Total

 

Rental and other property revenues

 

$

4,609

 

 

$

14,704

 

 

$

-

 

 

$

-

 

 

$

13

 

 

$

19,326

 

Property operating expenses

 

 

2,890

 

 

 

7,284

 

 

 

-

 

 

 

585

 

 

 

7

 

 

 

10,766

 

Depreciation

 

 

1,944

 

 

 

2,537

 

 

 

-

 

 

 

-

 

 

 

(18

)

 

 

4,463

 

Mortgage and loan interest

 

 

1,310

 

 

 

3,768

 

 

 

-

 

 

 

1,058

 

 

 

2,917

 

 

 

9,053

 

Deferred borrowing costs amortization

 

 

15

 

 

 

540

 

 

 

-

 

 

 

106

 

 

 

187

 

 

 

848

 

Loan charges and prepayment penalties

 

 

-

 

 

 

1,026

 

 

 

-

 

 

 

18

 

 

 

-

 

 

 

1,044

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,106

 

 

 

5,106

 

Gain on land sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

40

 

 

 

-

 

 

 

40

 

Segment operating income (loss)

 

$

(1,550

)

 

$

(451

)

 

$

-

 

 

$

(1,727

)

 

$

2,026

 

 

$

(1,702

)

Capital expenditures

 

 

486

 

 

 

38

 

 

 

-

 

 

 

1,435

 

 

 

-

 

 

 

1,959

 

Real estate assets

 

 

129,361

 

 

 

345,281

 

 

 

-

 

 

 

165,144

 

 

 

-

 

 

 

639,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

2,582

 

 

$

-

 

 

$

-

 

 

$

4,269

 

 

$

-

 

 

$

6,851

 

Cost of sale

 

 

813

 

 

 

-

 

 

 

-

 

 

 

4,229

 

 

 

-

 

 

 

5,042

 

Gain on sale

 

$

1,769

 

 

$

-

 

 

$

-

 

 

$

40

 

 

$

-

 

 

$

1,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2013

Properties

 

 

Apartments

 

 

Hotels

 

 

Land

 

 

Other

 

 

Total

 

Rental and other property revenues

 

$

5,162

 

 

$

14,226

 

 

$

-

 

 

$

45

 

 

$

97

 

 

$

19,530

 

Property operating expenses

 

 

3,067

 

 

 

6,784

 

 

 

-

 

 

 

514

 

 

 

22

 

 

 

10,387

 

Depreciation

 

 

1,541

 

 

 

2,551

 

 

 

-

 

 

 

-

 

 

 

(39

)

 

 

4,053

 

Mortgage and loan interest

 

 

1,330

 

 

 

3,958

 

 

 

-

 

 

 

1,653

 

 

 

2,189

 

 

 

9,130

 

Deferred borrowing costs amortizaion

 

 

17

 

 

 

(10

)

 

 

-

 

 

 

34

 

 

 

206

 

 

 

247

 

Loan charges and prepayment penalties

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

49

 

 

 

49

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,778

 

 

 

3,778

 

Gain on land sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

598

 

 

 

-

 

 

 

598

 

Segment operating income (loss)

 

$

(793

)

 

$

943

 

 

$

-

 

 

$

(1,558

)

 

$

1,448

 

 

$

40

 

Capital expenditures

 

 

2,955

 

 

 

37

 

 

 

-

 

 

 

83

 

 

 

-

 

 

 

3,075

 

Real estate assets

 

 

140,616

 

 

 

355,251

 

 

 

-

 

 

 

209,788

 

 

 

-

 

 

 

705,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

-

 

 

$

-

 

 

$

-

 

 

$

1,187

 

 

$

-

 

 

$

1,187

 

Cost of sale

 

 

-

 

 

 

(127

)

 

 

-

 

 

 

589

 

 

 

-

 

 

 

462

 

Gain on sale

 

$

-

 

 

$

127

 

 

$

-

 

 

$

598

 

 

$

-

 

 

$

725

 

 

 

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

 

 

 

For the Three Months Ended

 

 

 

September 30,

 

 

 

2014

 

 

2013

 

Segment operating income (loss)

 

$

(1,702

)

 

$

40

 

Other non-segment items of income (expense)

 

 

 

 

 

 

 

 

General and administrative

 

 

(1,590

)

 

 

(1,867

)

Net income fee to related party

 

 

186

 

 

 

(55

)

Advisory fee to related party

 

 

(2,225

)

 

 

(2,584

)

Other income

 

 

1,332

 

 

 

59

 

Loss on sale of investments

 

 

-

 

 

 

(275

)

Provision on impairment of notes receivable and real estate assets

 

 

-

 

 

 

(1,125

)

Earnings from unconsolidated investees

 

 

320

 

 

 

69

 

Litigation settlement

 

 

(86

)

 

 

(2,739

)

Income tax benefit

 

 

786

 

 

 

402

 

Net loss from continuing operations

 

$

(2,979

)

 

$

(8,075

)

 

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

 

 

 

September 30,

 

 

 

2014

 

 

2013

 

Segment assets

 

$

639,786

 

 

$

705,655

 

Investments in unconsolidated investees

 

 

4,137

 

 

 

10,337

 

Notes and interest receivable

 

 

148,207

 

 

 

105,139

 

Other assets

 

 

143,856

 

 

 

244,245

 

Total assets

 

$

935,986

 

 

$

1,065,376

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2014

 

Properties

 

 

Apartments

 

 

Hotels

 

 

Land

 

 

Other

 

 

Total

 

Rental and other property revenues

 

$

14,166

 

 

$

43,779

 

 

$

-

 

 

$

-

 

 

$

41

 

 

$

57,986

 

Property operating expenses

 

 

9,206

 

 

 

20,284

 

 

 

-

 

 

 

1,175

 

 

 

12

 

 

 

30,677

 

Depreciation

 

 

5,515

 

 

 

7,656

 

 

 

-

 

 

 

-

 

 

 

(72

)

 

 

13,099

 

Mortgage and loan interest

 

 

4,424

 

 

 

11,433

 

 

 

-

 

 

 

3,520

 

 

 

7,196

 

 

 

26,573

 

Deferred borrowing costs amortization

 

 

36

 

 

 

1,480

 

 

 

-

 

 

 

187

 

 

 

375

 

 

 

2,078

 

Loan charges and prepayment penalties

 

 

9

 

 

 

2,599

 

 

 

-

 

 

 

18

 

 

 

-

 

 

 

2,626

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

15,264

 

 

 

15,264

 

Gain on land sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

634

 

 

 

-

 

 

 

634

 

Segment operating income (loss)

 

$

(5,024

)

 

$

327

 

 

$

-

 

 

$

(4,266

)

 

$

7,794

 

 

$

(1,169

)

Capital expenditures

 

 

3,476

 

 

 

137

 

 

 

-

 

 

 

1,586

 

 

 

-

 

 

 

5,199

 

Real estate assets

 

 

129,361

 

 

 

345,281

 

 

 

-

 

 

 

165,144

 

 

 

-

 

 

 

639,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

19,182

 

 

$

23,131

 

 

$

-

 

 

$

4,986

 

 

$

-

 

 

$

47,299

 

Cost of sale

 

 

10,410

 

 

 

17,077

 

 

 

-

 

 

 

4,352

 

 

 

-

 

 

 

31,839

 

Gain on sale

 

$

8,772

 

 

$

6,054

 

 

$

-

 

 

$

634

 

 

$

-

 

 

$

15,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2013

 

Properties

 

 

Apartments

 

 

Hotels

 

 

Land

 

 

Other

 

 

Total

 

Rental and other property revenues

 

$

15,545

 

 

$

42,053

 

 

$

-

 

 

$

101

 

 

$

111

 

 

$

57,810

 

Property operating expenses

 

 

8,660

 

 

 

19,176

 

 

 

-

 

 

 

1,240

 

 

 

31

 

 

 

29,107

 

Depreciation

 

 

4,318

 

 

 

7,639

 

 

 

-

 

 

 

-

 

 

 

(137

)

 

 

11,820

 

Mortgage and loan interest

 

 

4,317

 

 

 

12,261

 

 

 

-

 

 

 

4,692

 

 

 

5,882

 

 

 

27,152

 

Deferred borrowing costs amortizaion

 

 

60

 

 

 

2,233

 

 

 

-

 

 

 

131

 

 

 

248

 

 

 

2,672

 

Loan charges and prepayment penalties

 

 

-

 

 

 

3,937

 

 

 

-

 

 

 

-

 

 

 

229

 

 

 

4,166

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

10,831

 

 

 

10,831

 

Gain on land sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

563

 

 

 

-

 

 

 

563

 

Segment operating income (loss)

 

$

(1,810

)

 

$

(3,193

)

 

$

-

 

 

$

(5,399

)

 

$

4,689

 

 

$

(5,713

)

Capital expenditures

 

 

5,869

 

 

 

147

 

 

 

-

 

 

 

364

 

 

 

-

 

 

 

6,380

 

Real estate assets

 

 

140,616

 

 

 

355,251

 

 

 

-

 

 

 

209,788

 

 

 

-

 

 

 

705,655

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

26,974

 

 

$

50,122

 

 

$

-

 

 

$

3,437

 

 

$

-

 

 

$

80,533

 

Cost of sale

 

 

14,914

 

 

 

36,753

 

 

 

-

 

 

 

2,874

 

 

 

-

 

 

 

54,541

 

Gain on sale

 

$

12,060

 

 

$

13,369

 

 

$

-

 

 

$

563

 

 

$

-

 

 

$

25,992

 

 

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

 

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

 

2014

 

 

2013

 

Segment operating loss

 

$

(1,169

)

 

$

(5,713

)

Other non-segment items of income (expense)

 

 

 

 

 

 

 

 

General and administrative

 

 

(6,770

)

 

 

(5,911

)

Net income fee to related party

 

 

(514

)

 

 

(159

)

Advisory fee to related party

 

 

(6,670

)

 

 

(7,625

)

Other income

 

 

1,738

 

 

 

2,734

 

Loss on sale of investments

 

 

-

 

 

 

(283

)

Provision on impairment of notes receivable and real estate assets

 

 

-

 

 

 

(1,926

)

Earnings from unconsolidated investees

 

 

266

 

 

 

256

 

Litigation settlement

 

 

3,666

 

 

 

(2,727

)

Income tax benefit

 

 

5,030

 

 

 

8,561

 

Net loss from continuing operations

 

$

(4,423

)

 

$

(12,793

)

 

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

 

 

 

September 30,

 

 

 

2014

 

 

2013

 

Segment assets

 

$

639,786

 

 

$

705,655

 

Investments in unconsolidated investees

 

 

4,137

 

 

 

10,337

 

Notes and interest receivable

 

 

148,207

 

 

 

105,139

 

Other assets

 

 

143,856

 

 

 

244,245

 

Total assets

 

$

935,986

 

 

$

1,065,376