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OPERATING SEGMENTS
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
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 properties, 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 six months ended June 30, 2015 and 2014, including segment assets and expenditures (dollars in thousands):

   Commercial               
For the Three Months Ended June 30, 2015  Properties  Apartments  Hotels  Land  Other  Total
Rental and other property revenues  $6,974   $17,258   $—     $—     $9   $24,241 
Property operating expenses   (3,341)   (7,829)   —      (165)   34    (11,301)
Depreciation   (2,230)   (2,926)   —      —      19    (5,137)
Mortgage and loan interest   (1,642)   (3,377)   —      (1,304)   (3,471)   (9,794)
Interest income   —      —      —      —      4,535    4,535 
Gain on land sales   —      —      —      3,027    —      3,027 
Segment operating income (loss)  $(239)  $3,126   $—     $1,558   $1,126   $5,571 
Capital expenditures   2,943    224    —      485    —      3,652 
Real estate assets   162,333    473,908    —      165,673    —      801,914 
                               
Property Sales                              
Sales price  $—     $—     $—     $1,878   $—     $1,878 
Cost of sale   —      —      —      (628)   —      (628)
Recognized prior deferred gain   —      —      —      1,777    —      1,777 
Gain on sale  $—     $—     $—     $3,027   $—     $3,027 

 

   Commercial               
For the Three Months Ended June 30, 2014  Properties  Apartments  Hotels  Land  Other  Total
Rental and other property revenues  $4,776   $14,706   $—     $—     $18   $19,500 
Property operating expenses   (3,169)   (6,535)   —      (279)   —      (9,983)
Depreciation   (1,757)   (2,585)   —      —      19    (4,323)
Mortgage and loan interest   (1,645)   (3,869)   —      (1,458)   (2,721)   (9,693)
Interest income   —      —      —      —      6,041    6,041 
Loss on land sales   —      —      —      (159)   —      (159)
Segment operating income (loss)  $(1,795)  $1,717   $—     $(1,896)  $3,357   $1,383 
Capital expenditures   1,862    99    —      66    —      2,027 
Real estate assets   131,193    372,674    —      167,293    —      671,160 
                               
Property Sales                              
Sales price  $16,600   $—     $—     $717   $—     $17,317 
Cost of sale   (9,597)   —      —      (876)   —      (10,473)
Gain (loss) on sale  $7,003   $—     $—     $(159)  $—     $6,844 
                               

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

 

   For the Three Months Ended
   June 30,
   2015  2014
Segment operating income  $5,571   $1,383 
Other non-segment items of income (expense)          
General and administrative   (1,596)   (3,195)
Net income fee to related party   (45)   (210)
Advisory fee to related party   (2,309)   (2,202)
Other income   14    232 
Earnings from unconsolidated investees   151    (124)
Litigation settlement   (45)   (86)
Income tax benefit (expense)   (12)   2,195 
Net income (loss) from continuing operations  $1,729   $(2,007)

  

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

 

   As of June 30,
   2015  2014
Segment assets  $801,914   $671,160 
Investments in unconsolidated investees   1,299    3,833 
Notes and interest receivable   125,385    138,014 
Other assets   148,020    95,172 
Total assets  $1,076,618   $908,179 

 

   Commercial               
For the Six Months Ended June 30, 2015  Properties  Apartments  Hotels  Land  Other  Total
Rental and other property revenues  $14,065   $33,277   $—     $—     $55   $47,397 
Property operating expenses   (7,608)   (14,871)   —      (514)   24    (22,969)
Depreciation   (4,157)   (5,721)   —      —      37    (9,841)
Mortgage and loan interest   (3,258)   (9,560)   —      (2,421)   (6,200)   (21,439)
Interest income   —      —      —      —      9,772    9,772 
Gain on land sales   —      —      —      5,903    —      5,903 
Segment operating income (loss)  $(958)  $3,125   $—     $2,968   $3,688   $8,823 
Capital expenditures   6,135    481    —      1,311    —      7,927 
Real estate assets   162,333    473,908    —      165,673    —      801,914 
                               
Property Sales                              
Sales price  $—     $—     $—     $9,135   $—     $9,135 
Cost of sale   —      —      —      (5,009)   —      (5,009)
Recognized prior deferred gain   —      —      —      1,777    —      1,777 
Gain on sale  $—     $—     $—     $5,903   $—     $5,903 

 

   Commercial               
For the Six Months Ended June 30, 2014  Properties  Apartments  Hotels  Land  Other  Total
Rental and other property revenues  $9,557   $29,074   $—     $—     $28   $38,659 
Property operating expenses   (6,316)   (13,000)   —      (590)   (5)   (19,911)
Depreciation   (3,571)   (5,119)   —      —      54    (8,636)
Mortgage and loan interest   (3,144)   (10,178)   —      (2,543)   (4,467)   (20,332)
Interest income   —      —      —      —      10,158    10,158 
Gain on land sales   —      —      —      594    —      594 
Segment operating income (loss)  $(3,474)  $777   $—     $(2,539)  $5,768   $532 
Capital expenditures   2,992    99    —      151    —      3,242 
Real estate assets   131,193    372,674    —      167,293    —      671,160 
                               
Property Sales                              
Sales price  $16,600   $23,131   $—     $2,367   $—     $42,098 
Cost of sale   (9,597)   (17,077)   —      (1,773)   —      (28,447)
Gain on sale  $7,003   $6,054   $—     $594   $—     $13,651 

 

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

 

   For the Six Months Ended
   June 30,
   2015  2014
Segment operating income  $8,823   $532 
Other non-segment items of income (expense)          
General and administrative   (3,798)   (5,179)
Net income fee to related party   (335)   (700)
Advisory fee to related party   (4,601)   (4,445)
Other income   4,111    406 
Earnings from unconsolidated investees   196    (54)
Litigation settlement   (117)   3,752 
Income tax benefit   91    4,244 
Net income (loss) from continuing operations  $4,370   $(1,444)

 

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

 

   As of June 30,
   2015  2014
Segment assets  $801,914   $671,160 
Investments in unconsolidated investees   1,299    3,833 
Notes and interest receivable   125,385    138,014 
Other assets   148,020    95,172 
Total assets  $1,076,618   $908,179