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OPERATING SEGMENTS
 9 Months Ended
Sep. 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 nine months September 30, 2015 and 2014, including segment assets and expenditures (dollars in thousands):

For the Three Months Ended

September 30, 2015

  

Commercial

Properties

   Apartments   Hotels   Land   Other   Total
Rental and other property revenues   $ 8,107     $ 19,671     $ —       $ —       $ 48     $ 27,826  
Property operating expenses     (4,434 )     (9,373 )     —         (422 )     (270 )     (14,499 )
Depreciation     (2,358 )     (4,229 )     —         —         18       (6,569 )
Mortgage and loan interest     (1,871 )     (6,299 )     —         (1,345 )     (5,511 )     (15,026 )
Interest income     —         —         —         —         3,950       3,950  
Gain on sale of income producing properties     —         735       —         —         —         735  
Gain on land sales     —         —         —         1,958       —         1,958  
Segment operating income (loss)   $ (556 )   $ 505     $ —       $ 191     $ (1,765 )   $ (1,625 )
Capital expenditures     1,404       (43 )     —         1,461       —         2,822  
Real estate assets     161,876       496,329       —         163,867       —         822,072  
                                                 
Property Sales                                                
Sales price   $ —       $ 11,129     $ —       $ 2,851     $ —       $ 13,980  
Cost of sale     —         (10,394 )     —         (1,854 )     —         (12,248 )
Recognized prior deferred gain     —         —         —         961       —         961  
Gain on sale   $ —       $ 735     $ —       $ 1,958     $ —       $ 2,693  
                                                 

For the Three Months Ended

September 30, 2014

  

Commercial

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     (1,325 )     (5,334 )     —         (1,182 )     (3,104 )     (10,945 )
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     (812 )     —         —         (4,229 )     —         (5,041 )
Gain (loss) on sale   $ 1,770     $ —       $ —       $ 40     $ —       $ 1,810  

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
  September 30,
    2015   2014
Segment operating income   $ (1,625 )   $ (1,702 )
Other non-segment items of income (expense)                
General and administrative     (1,417 )     (1,590 )
Net income fee to related party     (232 )     186  
Advisory fee to related party     (3,024 )     (2,225 )
Other income     (72 )     1,332  
Earnings from unconsolidated investees     81       320  
Litigation settlement     (85 )     (86 )
Income tax benefit     16       786  
Net income (loss) from continuing operations   $ (6,358 )   $ (2,979 )

 

 

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

  As of September 30,
    2015   2014
Segment assets   $ 822,072     $ 639,786  
Investments in unconsolidated investees     5,152       4,137  
Notes and interest receivable     115,415       148,207  
Other assets     144,472       130,169  
Total assets   $ 1,087,111     $ 922,299  

 

For the Nine Months Ended

September 30, 2015

  

Commercial

Properties

   Apartments   Hotels   Land   Other   Total
Rental and other property revenues   $ 22,172     $ 52,948     $ —       $ —       $ 103     $ 75,223  
Property operating expenses     (12,042 )     (24,243 )     —         (936 )     (246 )     (37,467 )
Depreciation     (6,516 )     (9,949 )     —         —         55       (16,410 )
Mortgage and loan interest     (5,129 )     (15,857 )     —         (3,766 )     (11,711 )     (36,463 )
Interest income     —         —         —         —         13,722       13,722  
Gain on sale of producing properties     —         735       —         —         —         735  
Gain on land sales     —         —         —         7,861       —         7,861  
Segment operating income (loss)   $ (1,515 )   $ 3,634     $ —       $ 3,159     $ 1,923     $ 7,201  
Capital expenditures     7,539       438       —         2,772       —         10,749  
Real estate assets     161,876       496,329       —         163,867       —         822,072  
                                                 
Property Sales                                                
Sales price   $ —       $ 11,129     $ —       $ 11,987     $ —       $ 23,116  
Cost of sale     —         (10,394 )     —         (6,863 )     —         (17,257 )
Recognized prior deferred gain     —         —         —         2,737       —         2,737  
Gain on sale   $ —       $ 735     $ —       $ 7,861     $ —       $ 8,596  
                                                 

For the Nine Months Ended

September 30, 2014

  

Commercial

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     (4,469 )     (15,512 )     —         (3,725 )     (7,571 )     (31,277 )
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     (10,409 )     (17,078 )     —         (4,352 )     —         (31,839 )
Gain on sale   $ 8,773     $ 6,053     $ —       $ 634     $ —       $ 15,460  

 

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

  For the Nine Months Ended
  September 30,
    2015   2014
Segment operating income (loss)   $ 7,201     $ (1,169 )
Other non-segment items of income (expense)                
General and administrative     (5,215 )     (6,770 )
Net income fee to related party     (567 )     (514 )
Advisory fee to related party     (7,625 )     (6,670 )
Other income     4,040       1,738  
Earnings from unconsolidated investees     276       266  
Litigation settlement     (203 )     3,666  
Income tax benefit     107       5,030  
Net income (loss) from continuing operations   $ (1,986 )   $ (4,423 )

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

  As of September 30,
    2015   2014
Segment assets   $ 822,072     $ 639,786  
Investments in unconsolidated investees     5,152       4,137  
Notes and interest receivable     115,415       148,207  
Other assets     144,472       130,169  
Total assets   $ 1,087,111     $ 922,299