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OPERATING SEGMENTS
 9 Months Ended
Sep. 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 September 30, 2016 and 2015, including capital expenditures and segment assets (dollars in thousands):

 

   Commercial                 
For the Three Months Ended September 30, 2016  Properties   Apartments   Land   Other   Total 
Rental and other property revenues  $7,658   $22,408   $—   $1   $30,067 
Property operating expenses   (4,727)   (10,693)   (243)   (8)   (15,671)
Depreciation   (2,236)   (3,807)   —    18    (6,025)
Mortgage and loan interest   (1,700)   (6,424)   (550)   (6,688)   (15,362)
Interest income   —    —    —    5,712    5,712 
Gain on sale of income producing properties   —    —    —    —    — 
Gain on land sales   —    —    555   —    555
Segment operating income (loss)  $(1,005)  $1,484   $(238)  $(965)  $(724)
                          
Balance Sheet Data                         
Capital expenditures  $2,045   $—   $375   $—   $2,420 
Real estate assets  $151,900   $613,431   $144,378   $—   $909,709 
                          
Property Sales                         
Sales price  $—   $—   $805   $—   $805 
Cost of sale   —    —    (250)   —    (250) 
Gain on sale  $—   $—   $555   $—   $555 

 

   Commercial                 
For the Three Months Ended September 30, 2015  Properties   Apartments   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)
                          
Balance Sheet Data                         
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 (loss) on sale  $—   $735   $1,958   $—   $2,693 

 

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

 

   For the Three Months Ended 
   September 30, 
   2016   2015 
Segment operating income  $(724)  $(1,625)
Other non-segment items of income (expense)          
General and administrative   (1,760)   (1,417)
Net income fee to related party   (67)   (232)
Advisory fee to related party   (2,749)   (3,024)
Other income   252    (72)
Earnings from unconsolidated investees   146    81 
Litigation settlement   —    (85)
Income tax benefit   (46)   16 
Net loss from continuing operations  $(4,948)  $(6,358)

 

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

 

                
    Commercial                     
For the Nine Months Ended September 30, 2016   Properties    Apartments    Land    Other    Total 
Rental and other property revenues  $24,496   $65,578   $30   $2  $90,106 
Property operating expenses   (14,658)   (30,255)   (1,159)   (6)   (46,078)
Depreciation   (6,820)   (10,958)   —      55    (17,723)
Mortgage and loan interest   (5,371)   (18,689)   (1,703)   (17,788)   (43,551)
Interest income   —      —      —      15,791    15,791 
Gain on sale of producing properties   6    4,919    —      —      4,925 
Gain on land sales   —      —      3,925    —      3,925 
Segment operating income (loss)  $(2,347)  $10,595   $1,093  $(1,946)  $7,395 
                          
Balance Sheet Data                         
Capital expenditures  $4,125   $(146)  $1,873   $—     $5,852 
Real estate assets  $151,900   $613,431   $144,378   $—     $909,709 
                          
Property Sales                         
Sales price  $1,500   $8,100    $8,139   $—     $17,739 
Cost of sale   (1,743)   (2,932)   (4,214)   —      (8,889)
Gain on sale  $(243)  $5,168  $3,925  $—    $8,850 
                          
    Commercial                     
For the Nine Months Ended September 30, 2015   Properties    Apartments    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 
                          
Balance Sheet Data                         
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 

 

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

 

   For the Nine Months Ended 
   September 30, 
   2016   2015 
Segment operating income  $7,395   $7,201 
Other non-segment items of income (expense)          
General and administrative   (6,197)   (5,215)
Net income fee to related party   (193)   (567)
Advisory fee to related party   (8,174)   (7,625)
Other income   1,452    4,040 
Earnings from unconsolidated investees   430    276 
Litigation settlement   —    (203)
Income tax benefit   (45)   107 
Net income (loss) from continuing operations  $(5,332)  $(1,986)

 

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

 

   As of September 30, 
   2016   2015 
Segment assets  $909,709   $822,072 
Investments in unconsolidated investees   6,024    5,152 
Notes and interest receivable   119,074    115,415 
Other assets   104,589    144,472 
Total assets  $1,139,396   $1,087,111