XML 26 R16.htm IDEA: XBRL DOCUMENT v3.5.0.2
OPERATING SEGMENTS
 6 Months Ended
Jun. 30, 2016
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, 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 months ended June 30, 2016 and 2015, including capital expenditures and segment assets (dollars in thousands):

                   
For the Three Months Ended June 30, 2016   Commercial
Properties		     Apartments     Land     Other     Total  
Rental and other property revenues   $ 8,947     $ 21,856     $ 30     $ 1     $ 30,834  
Property operating expenses     (4,836 )     (10,168 )     (169 )     (18 )     (15,191 )
Depreciation     (2,270 )     (3,616 )     —       18       (5,868 )
Mortgage and loan interest     (1,696 )     (6,109 )     (841 )     (5,329 )     (13,975 )
Interest income     —       —       —       4,788       4,788  
Gain on sale of income-producing properties     6       5,162       —       —       5,168  
Gain on land sales     —       —       1,719       —       1,719  
Segment operating income (loss)   $ 151     $ 7,125     $ 739     $ (540 )   $ 7,475  
                                         
Balance Sheet Data                                        
Capital expenditures   $ 680     $ (146 )   $ 727     $ —     $ 1,261  
Real estate assets   $ 151,759     $ 603,829     $ 145,816     $ —     $ 901,404  
                                         
Property Sales                                        
Sales price   $ —     $ 8,100     $ 3,154     $ —     $ 11,254  
Cost of sale     —       (2,932 )     (1,435 )     —       (4,367 )
Gain on sale   $ —     $ 5,168     $ 1,719     $ —     $ 6,887  

 

For the Three Months Ended June 30, 2015   Commercial
Properties		     Apartments     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     (1,693 )     (3,376 )     (1,304 )     (3,421 )     (9,794 )
Interest income     —       —       —       4,535       4,535  
Gain on land sales     —       —       3,027       —       3,027  
Segment operating income (loss)   $ (290 )   $ 3,127     $ 1,558     $ 1,176     $ 5,571  
                                         
Balance Sheet Data                                        
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  

 

The table below reflects the reconciliation of segment information to the corresponding amounts in the Consolidated Statements of Operations for the three months ended June 30, 2016 and 2015 (dollars in thousands):

 

Presented below is our reportable segments’ operating income for the six months ended June 30, 2016 and 2015, including capital expenditures and segment assets (dollars in thousands): 

 

For the Six Months Ended June 30, 2016   Commercial
Properties		     Apartments     Land     Other     Total  
Rental and other property revenues   $ 16,838     $ 43,170     $ 30     $ 1     $ 60,039  
Property operating expenses     (9,931 )     (19,562 )     (916 )     2       (30,407 )
Depreciation     (4,584 )     (7,151 )     —       37       (11,698 )
Mortgage and loan interest     (3,671 )     (12,265 )     (1,153 )     (11,100 )     (28,189 )
Interest income     —       —       —       10,079       10,079  
Gain (loss) on sale of income producing properties     6       4,919       —       —       4,925  
Gain on land sales     —       —       3,370       —       3,370  
Segment operating income (loss)   $ (1,342 )   $ 9,111     $ 1,331     $ (981 )   $ 8,119  
                                         
Balance Sheet Data                                        
Capital expenditures   $ 2,080     $ (146 )   $ 1,498     $ —     $ 3,432  
Real estate assets   $ 151,759     $ 603,829     $ 145,816     $ —     $ 901,404  
                                         
Property Sales                                        
Sales price   $ 1,500     $ 8,100     $ 7,334     $ —     $ 16,934  
Cost of sale     (1,743 )     (2,932 )     (3,964 )     —       (8,639 )
Gain on sale   $ (243 )   $ 5,168     $ 3,370     $ —     $ 8,295  

 

For the Six Months Ended June 30, 2015   Commercial
Properties		     Apartments     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     (3,259 )     (9,559 )     (2,421 )     (6,200 )     (21,439 )
Interest income     —       —       —       9,772       9,772  
Gain on land sales     —       —       5,903       —       5,903  
Segment operating income (loss)   $ (959 )   $ 3,126     $ 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  

 

The table below reflects the reconciliation of segment information to the corresponding amounts in the Consolidated Statements of Operations for the six months ended June 30, 2016 and 2015 (dollars in thousands):

         
    Six Months Ended June 30,  
    2016     2015  
Segment operating income   $ 8,119     $ 8,823  
Other non-segment items of income (expense)                
General and administrative     (3,562 )     (3,798 )
Net income fee to related party     (126 )     (335 )
Advisory fee to related party     (5,425 )     (4,601 )
Other income     325       4,111  
Earnings from unconsolidated investees     284       196  
Litigation settlement     —       (117 )
Income tax benefit     1       91  
Net income (loss) from continuing operations   $ (384 )   $ 4,370  

 

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

 

    As of June 30,  
    2016     2015  
Segment assets   $ 901,404     $ 801,914  
Investments in unconsolidated investees     5,868       1,299  
Notes and interest receivable     123,854       125,385  
Other assets     100,549       148,020  
Total assets   $ 1,131,675     $ 1,076,618