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OPERATING SEGMENTS

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

OPERATING SEGMENTS

NOTE 11.

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, 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 operating income and cash flow.

Items of income that are not reflected in the segments are interest, other income, 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 the Company’s reportable segments’ operating income including segment assets and expenditures for the years 2017, 2016 and 2015 (dollars in thousands):

For the Twelve Months Ended December 31, 2017			Commercial Properties				Apartments				Land				Other				Total
Operating revenue		$	33,286			$	92,807			$	111			$	16			$	126,220
Operating expenses			(18,549	)			(43,677	)			(875	)			(987	)			(64,088	)
Depreciation and amortization			(9,358	)			(16,354	)			—				33				(25,679	)
Mortgage and loan interest			(7,527	)			(22,347	)			(1,945	)			(34,354	)			(66,173	)
Interest income			—				—				—				18,941				18,941
Gain on sale of income producing properties			2,391				12,760				1,547				—				16,698
Gain on land sales			—				—				4,884				—				4,884
Segment operating income (loss)		$	243			$	23,189			$	3,722			$	(16,351	)		$	10,803
Capital expenditures		$	(5,817	)		$	1,402			$	609			$	—			$	(3,806	)
Assets		$	137,157			$	727,508			$	127,554			$	—			$	992,219

Property Sales
Sales price		$	5,050			$	—			$	29,969			$	—			$	35,019
Cost of sale			(2,659	)			—				(23,538	)			—				(26,197	)
Recognized prior deferred gain			—				12,760				—				—				12,760
Gain on sale		$	2,391			$	12,760			$	6,431			$	—			$	21,582

For the Twelve Months Ended December 31, 2016		Commercial Properties				Apartments				Land				Other				Total
Operating revenue		$	33,026			$	86,603			$	30			$	4			$	119,663
Operating expenses			(20,398	)			(40,786	)			(1,745	)			(21	)			(62,950	)
Depreciation and amortization			(9,099	)			(14,759	)			—				73				(23,785	)
Mortgage and loan interest			(7,191	)			(25,381	)			(2,232	)			(24,558	)			(59,362	)
Interest income			—				—				—				20,453				20,453
Gain on sale of income producing properties			(238	)			16,445				—				—				16,207
Gain on land sales			—				—				3,121				—				3,121
Segment operating income (loss)		$	(3,900	)		$	22,122			$	(826	)		$	(4,049	)		$	13,347
Capital expenditures		$	5,008			$	864			$	268			$	—			$	6,140
Assets		$	150,838			$	622,061			$	128,107			$	—			$	901,006

Property Sales
Sales price		$	1,500			$	20,350			$	29,128			$	—			$	50,978
Cost of sale			(1,738	)			(3,905	)			(26,007	)			—				(31,650	)
Gain on sale		$	(238	)		$	16,445			$	3,121			$	—			$	19,328

For the Twelve Months Ended December 31, 2015		Commercial Properties				Apartments				Land				Other				Total
Operating revenue		$	30,540			$	73,543			$	—			$	105			$	104,188
Operating expenses			(17,761	)			(34,955	)			(1,029	)			(257	)			(54,002	)
Depreciation and amortization			(8,993	)			(12,498	)			—				73				(21,418	)
Mortgage and loan interest			(6,919	)			(23,699	)			(4,694	)			(17,165	)			(52,477	)
Interest income			—				—				—				16,674				16,674
Gain on land sales			—				—				21,648				—				21,648
Segment operating income (loss)		$	(3,133	)		$	2,391			$	15,925			$	(570	)		$	14,613
Capital expenditures		$	8,133			$	506			$	2,621			$	—			$	11,260
Assets		$	155,147			$	551,415			$	146,945			$	—			$	853,507

Property Sales
Sales price		$	—			$	11,129			$	107,298			$	—			$	118,427
Cost of sale			—				(10,394	)			(88,387	)			—				(98,781	)
Recognized prior deferred gain			—				—				2,737				—				2,737
Gain on sale		$	—			$	735			$	21,648			$	—			$	22,383

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

		For the Years Ended December 31,
		2017				2016				2015
Segment operating income (loss)		$	10,803			$	13,347			$	14,613
Other non-segment items of income (expense)
General and administrative			(7,691	)			(7,119	)			(6,893	)
Provision on impairment of notes receivable and real estate assets			—				—				(5,300	)
Net income fee to related party			(250	)			(257	)			(492	)
Advisory fee to related party			(11,082	)			(10,918	)			(9,775	)
Other income			(454	)			2,091				4,106
Loss on sale of investments			(331	)			—				(1	)
Earnings from unconsolidated joint ventures and investees			309				493				428
Litigation settlement			—				—				(352	)
Income tax benefit (expense)			(67	)			(46	)			(517	)
Gain (loss) from continuing operations		$	(8,763	)		$	(2,409	)		$	(4,183	)

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

		For the Years Ended December 31,
		2017				2016				2015
Segment assets		$	988,117			$	901,006			$	853,507
Investments in unconsolidated subsidiaries and investees			6,396				6,087				8,365
Notes and interest receivable			112,095				126,564				120,243
Other assets and receivables			190,112				141,252				135,253
Total assets		$	1,296,720			$	1,174,909			$	1,117,368