XML 73 R21.htm IDEA: XBRL DOCUMENT v2.4.1.9
OPERATING SEGMENTS
 12 Months Ended
Dec. 31, 2014
OPERATING SEGMENTS  
OPERATING SEGMENTS

NOTE 13.     OPERATING SEGMENTS

 

Our segments are based on management’s method of internal reporting which classifies its operations by property type. The segments are commercial, apartments, hotels, land and other. 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, foreign currency transaction loss 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 the operating income of each operating segment and each segment’s assets for 2014, 2013 and 2012 (dollars in thousands):

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Twelve Months Ended Dec 31, 2014

 

Properties

 

Apartments

 

Hotels

 

 

Land

 

 

Other

 

 

Total

 

Operating revenue

 

$

20,476

 

 

$

58,882

 

 

$

-

 

 

$

1

 

 

$

53

 

 

$

79,412

 

Operating expenses

 

 

13,127

 

 

 

27,588

 

 

 

-

 

 

 

1,397

 

 

 

12

 

 

 

42,124

 

Depreciation and amortization

 

 

7,413

 

 

 

10,270

 

 

 

-

 

 

 

-

 

 

 

(90

)

 

 

17,593

 

Mortgage and loan interest

 

 

5,934

 

 

 

15,240

 

 

 

-

 

 

 

4,375

 

 

 

9,867

 

 

 

35,416

 

Deferred borrowing costs

 

 

92

 

 

 

1,538

 

 

 

-

 

 

 

243

 

 

 

683

 

 

 

2,556

 

Loan charges and prepayment penalties

 

 

113

 

 

 

2,625

 

 

 

-

 

 

 

66

 

 

 

50

 

 

 

2,854

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

20,054

 

 

 

20,054

 

Gain on land sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

561

 

 

 

-

 

 

 

561

 

Segment operating income (loss)

 

$

(6,203

)

 

$

1,621

 

 

$

-

 

 

$

(5,519

)

 

$

9,585

 

 

$

(516

)

Capital expenditures

 

 

4,874

 

 

 

320

 

 

 

-

 

 

 

2,436

 

 

 

-

 

 

 

7,630

 

Assets

 

 

142,118

 

 

 

390,366

 

 

 

-

 

 

 

167,279

 

 

 

-

 

 

 

699,763

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

19,182

 

 

$

115,273

 

 

$

-

 

 

$

8,091

 

 

$

-

 

 

$

142,546

 

Cost of sale

 

 

9,168

 

 

 

63,408

 

 

 

-

 

 

 

7,530

 

 

 

-

 

 

 

80,106

 

Deferred current gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Recognized prior deferred gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Gain on sale

 

$

10,014

 

 

$

51,865

 

 

$

-

 

 

$

561

 

 

$

-

 

 

$

62,440

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Twelve Months Ended Dec 31, 2013

 

Properties

 

Apartments

 

Hotels

 

 

Land

 

 

Other

 

 

Total

 

Operating revenue

 

$

24,215

 

 

$

56,369

 

 

$

-

 

 

$

39

 

 

$

127

 

 

$

80,750

 

Operating expenses

 

 

11,623

 

 

 

26,223

 

 

 

-

 

 

 

1,431

 

 

 

41

 

 

 

39,318

 

Depreciation and amortization

 

 

5,938

 

 

 

10,188

 

 

 

-

 

 

 

-

 

 

 

(172

)

 

 

15,954

 

Mortgage and loan interest

 

 

5,798

 

 

 

16,206

 

 

 

-

 

 

 

6,200

 

 

 

7,954

 

 

 

36,158

 

Deferred borrowing costs

 

 

67

 

 

 

2,268

 

 

 

-

 

 

 

212

 

 

 

405

 

 

 

2,952

 

Loan charges and prepayment penalties

 

 

150

 

 

 

3,937

 

 

 

-

 

 

 

1,080

 

 

 

390

 

 

 

5,557

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

19,445

 

 

 

19,445

 

Loss on land sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(455

)

 

 

-

 

 

 

(455

)

Segment operating income (loss)

 

$

639

 

 

$

(2,453

)

 

$

-

 

 

$

(9,339

)

 

$

10,954

 

 

$

(199

)

Capital expenditures

 

 

6,964

 

 

 

315

 

 

 

-

 

 

 

387

 

 

 

-

 

 

 

7,666

 

Assets

 

 

141,200

 

 

 

394,397

 

 

 

-

 

 

 

164,697

 

 

 

-

 

 

 

700,294

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

26,974

 

 

$

239,676

 

 

$

-

 

 

$

7,186

 

 

$

-

 

 

$

273,836

 

Cost of sale

 

 

14,914

 

 

 

152,785

 

 

 

-

 

 

 

7,641

 

 

 

-

 

 

 

175,340

 

Deferred current gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Recognized prior deferred gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Gain (loss) on sale

 

$

12,060

 

 

$

86,891

 

 

$

-

 

 

$

(455

)

 

$

-

 

 

$

98,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Twelve Months Ended Dec 31, 2012

 

Properties

 

Apartments

 

Hotels

 

 

Land

 

 

Other

 

 

Total

 

Operating revenue

 

$

28,151

 

 

$

53,534

 

 

$

-

 

 

$

78

 

 

$

86

 

 

 

81,849

 

Operating expenses

 

 

14,227

 

 

 

24,654

 

 

 

-

 

 

 

689

 

 

 

430

 

 

 

40,000

 

Depreciation and amortization

 

 

5,046

 

 

 

10,096

 

 

 

-

 

 

 

-

 

 

 

(269

)

 

 

14,873

 

Mortgage and loan interest

 

 

5,181

 

 

 

18,942

 

 

 

-

 

 

 

6,684

 

 

 

7,417

 

 

 

38,224

 

Deferred borrowing costs

 

 

92

 

 

 

405

 

 

 

-

 

 

 

159

 

 

 

28

 

 

 

684

 

Loan charges and prepayment penalties

 

 

-

 

 

 

3,495

 

 

 

-

 

 

 

79

 

 

 

-

 

 

 

3,574

 

Interest income

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

14,612

 

 

 

14,612

 

Gain on land sales

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,475

 

 

 

-

 

 

 

5,475

 

Segment operating income (loss)

 

$

3,605

 

 

$

(4,058

)

 

$

-

 

 

$

(2,058

)

 

$

7,092

 

 

$

4,581

 

Capital expenditures

 

 

2,114

 

 

 

547

 

 

 

 

 

 

 

(920

)

 

 

 

 

 

 

1,741

 

Assets

 

 

162,756

 

 

 

555,392

 

 

 

-

 

 

 

212,285

 

 

 

-

 

 

 

930,433

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales price

 

$

9,825

 

 

$

45,610

 

 

$

3,369

 

 

$

39,733

 

 

$

-

 

 

$

98,537

 

Cost of sale

 

 

(9,600

)

 

 

(40,067

)

 

 

(252

)

 

 

(34,873

)

 

 

-

 

 

 

(84,792

)

Deferred current gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Recognized prior deferred gain

 

 

-

 

 

 

-

 

 

 

-

 

 

 

615

 

 

 

-

 

 

 

615

 

Gain on sale

 

$

225

 

 

$

5,543

 

 

$

3,117

 

 

$

5,475

 

 

$

-

 

 

$

14,360

 

 

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

 

 

 

For Twelve Months Ended December 31,

 

 

 

2014

 

 

2013

 

 

2012

 

Segment operating income (loss)

 

$

(516

)

 

$

(199

)

 

$

4,581

 

Other non-segment items of income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

(10,282

)

 

 

(7,919

)

 

 

(6,037

)

Provision on impairment of notes receivable and real estate assets

 

 

-

 

 

 

(18,980

)

 

 

(2,330

)

Net income fee to related party

 

 

(3,669

)

 

 

(4,089

)

 

 

(180

)

Advisory fee to related party

 

 

(8,943

)

 

 

(10,166

)

 

 

(10,182

)

Other income

 

 

1,415

 

 

 

10,163

 

 

 

7,770

 

Loss on sale of investments

 

 

(92

)

 

 

(283

)

 

 

(118

)

Earnings from unconsolidated joint ventures and investees

 

 

347

 

 

 

391

 

 

 

372

 

Litigation settlement

 

 

3,591

 

 

 

(20,313

)

 

 

(175

)

Income tax benefit (expense)

 

 

20,413

 

 

 

40,513

 

 

 

(144

)

Gain (loss) from continuing operations

 

$

2,264

 

 

$

(10,882

)

 

$

(6,443

)

 

 

 SEGMENT ASSET RECONCILIATION TO TOTAL ASSETS

 

The table below reconciles the segment information to the corresponding amounts in the Consolidated Balance Sheets (dollars in thousands):

 

 

 

For the Years Ended December 31,

 

 

 

2014

 

 

2013

 

 

2012

 

Segment assets

 

$

699,763

 

 

$

700,294

 

 

$

930,433

 

Investments in unconsolidated subsidiaries and investees

 

 

4,279

 

 

 

3,789

 

 

 

8,168

 

Notes and interest receivable

 

 

134,366

 

 

 

136,815

 

 

 

103,469

 

Other assets and receivables

 

 

127,090

 

 

 

102,424

 

 

 

93,275

 

Assets held for sale

 

 

-

 

 

 

-

 

 

 

-

 

Total assets

 

$

965,498

 

 

$

943,322

 

 

$

1,135,345