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OPERATING SEGMENTS

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

OPERATING SEGMENTS

NOTE 11. 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, 2019 and 2018, including segment assets and expenditures (dollars in thousands):

		Commercial
For the Three Months Ended September 30, 2019		Properties				Apartments				Land				Other				Total
Rental and other property revenues		$	8,023			$	3,859			$	60			$	1			$	11,943
Property operating expenses			(3,503	)			(2,162	)			(560	)			342				(5,883	)
Depreciation			(2,553	)			(863	)			—				—				(3,416	)
Mortgage and loan interest			(1,700	)			(1,050	)			(612	)			(7,058	)			(10,420	)
Loss on debt extinguishment			(5,219	)			—				—				—				(5,219	)
Interest income			—				—				—				6,856				6,856
Gain on land sales			—				—				5,139				—				5,139
Segment operating (loss) income		$	(4,952	)		$	(216	)		$	4,027			$	141			$	(1,000	)

Capital expenditures		$	599			$	9,233			$	590			$	—			$	10,422

Property Sales
Sales price		$	—			$	—			$	6,970			$	—			$	6,970
Cost of sale			—				—				(1,831	)			—				(1,831	)
Gain on sale		$	—			$	—			$	5,139			$	—			$	5,139

		Commercial
For the Three Months Ended September 30, 2018		Properties				Apartments				Land				Other				Total
Rental and other property revenues		$	8,227			$	25,274			$	(95	)		$	3			$	33,409
Property operating expenses			(4,236	)			(11,345	)			(158	)			(206	)			(15,945	)
Depreciation			(2,523	)			(4,364	)			—				14				(6,873	)
Mortgage and loan interest			(1,921	)			(5,721	)			(306	)			(9,474	)			(17,422	)
Interest income			—				—				—				5,710				5,710
Gain on land sales			—				—				12,243				—				12,243
Segment operating (loss) income		$	(453	)		$	3,844			$	11,684			$	(3,953	)		$	11,122

Capital expenditures		$	962			$	114			$	(107	)		$	—			$	969

Property Sales
Sales price		$	—			$	—			$	35,519			$	—			$	35,519
Cost of sale			—				—				(23,276	)			—				(23,276	)
Gain on sale		$	—			$	—			$	12,243			$	—			$	12,243

The following table presents the reconciliation of segment information to the corresponding amounts in the Consolidated Statements of Operations for the three months ended September 30, 2019 and 2018 (dollars in thousands):

		For the Three Months Ended
		September 30,
		2019				2018
Segment operating income (loss)		$	(1,000	)		$	11,122
Other non-segment items of income (expense)
General and administrative			(2,669	)			(2,062	)
Net income fee to related party			(83	)			(383	)
Advisory fee to related party			(1,758	)			(2,936	)
Other income			1,288				18,750
Foreign currency translation (loss) gain			(5,153	)			(1,288	)
Loss from joint venture			(189	)			—
Earnings from unconsolidated investees			114				205
Income tax expense			—				(792	)
Net (loss) income from continuing operations		$	(9,450	)		$	22,616

Presented below is our reportable segments’ operating income for the nine months ended September 30, 2019 and 2018, including segment assets and expenditures (dollars in thousands):

		Commercial
For the Nine Months Ended September 30, 2019		Properties				Apartments				Land				Other				Total
Rental and other property revenues		$	24,270			$	11,377			$	60			$	5			$	35,712
Property operating expenses			(11,849	)			(6,238	)			(605	)			(511	)			(19,203	)
Depreciation			(7,660	)			(2,304	)			—				—				(9,964	)
Mortgage and loan interest			(5,614	)			(2,987	)			(982	)			(20,213	)			(29,796	)
Loss on debt extinguishment			(5,219	)			—				—				—				(5,219	)
Interest income			—				—				—				19,514				19,514
Loss on the sale of income producing property			—				(80	)			—				—				(80	)
Gain on land sales			—				—				9,872				—				9,872
Segment operating (loss) income		$	(6,072	)		$	(232	)		$	8,345			$	(1,205	)		$	836

Capital expenditures		$	4,644			$	26,667			$	3,422			$	—			$	34,733
Real estate assets		$	158,854			$	151,320			$	69,816			$	—				379,990

Property Sales
Sales price		$	—			$	3,096			$	23,287			$	—			$	26,383
Cost of sale			—				(3,176	)			(13,415	)			—				(16,591	)
(Loss) gain on sale		$	—			$	(80	)		$	9,872			$	—			$	9,792

		Commercial
For the Nine Months Ended September 30, 2018		Properties				Apartments				Land				Other				Total
Rental and other property revenues		$	23,187			$	73,001			$	(95	)		$	6			$	96,099
Property operating expenses			(12,222	)			(33,127	)			(291	)			(279	)			(45,919	)
Depreciation			(7,138	)			(12,709	)			—				79				(19,768	)
Mortgage and loan interest			(5,662	)			(16,520	)			(437	)			(26,434	)			(49,053	)
Interest income			—				—				—				15,701				15,701
Gain on land sales			—				—				13,578				—				13,578
Segment operating (loss) income		$	(1,835	)		$	10,645			$	12,755			$	(10,927	)		$	10,638

Capital expenditures		$	3,688			$	(2,398	)		$	(724	)		$	—			$	566
Real estate assets		$	134,142			$	823,619			$	91,586			$	643			$	1,049,990

Property Sales
Sales price		$	2,313			$	8,512			$	38,503			$	—			$	49,328
Cost of sale			(2,313	)			(8,512	)			(24,925	)			—				(35,750	)
Gain on sale		$	—			$	—			$	13,578			$	—			$	13,578

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

		For the Nine Months Ended
		September 30,
		2019				2018
Segment operating income (loss)		$	836			$	10,638
Other non-segment items of income (expense)
General and administrative			(9,401	)			(7,357	)
Net income fee to related party			(273	)			(489	)
Advisory fee to related party			(4,849	)			(8,821	)
Other income			8,319				28,188
Foreign currency translation (loss) gain			(13,296	)			6,357
Loss from joint venture			(1,480	)			—
Earnings from unconsolidated investees			345				802
Income tax expense			—				(792	)
Net (loss) income from continuing operations		$	(19,799	)		$	28,526

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

		As of September 30,
		2019				2018
Segment assets		$	379,990			$	1,049,990
Investments in unconsolidated investees			72,909				7,504
Notes and interest receivable			158,199				124,020
Other assets			221,264				220,924
Total assets		$	832,362			$	1,402,438