XML 83 R24.htm IDEA: XBRL DOCUMENT

OPERATING SEGMENTS

12 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

OPERATING SEGMENTS

NOTE 15. 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 2019, 2018 and 2017 (dollars in thousands):

For the Twelve Months Ended December 31, 2019		Commercial Properties				Apartments				Land				Other				Total
Rental and other property revenues		$	32,707			$	15,257			$	—			$	6			$	47,970
Property operating expenses			(15,805	)			(8,375	)			(735	)			(779	)			(25,694	)
Depreciation			(10,229	)			(3,150	)			—				—				(13,379	)
Mortgage and loan interest			(7,018	)			(4,069	)			(1,301	)			(27,472	)			(39,860	)
Loss on debt extinguishment			(5,219	)			—				—				—				(5,219	)
Interest income			—				—				—				25,955				25,955
Loss on the sale of income producing property			—				(80	)			—				—				(80	)
Gain on land sales			—				—				15,272				—				15,272
Segment operating (loss) income		$	(5,564	)		$	(417	)		$	13,236			$	(2,290	)		$	4,965

Capital expenditures		$	5,257			$	25,001			$	3,489			$	—			$	33,747
Real estate assets		$	229,424			$	178,536			$	70,003			$	—				477,963

Property Sales
Sales price		$	—			$	3,096			$	30,012			$	—			$	33,108
Cost of sale			—				(3,176	)			(14,740	)			—				(17,916	)
Gain on sale		$	—			$	(80	)		$	15,272			$	—			$	15,192

For the Twelve Months Ended December 31, 2018		Commercial Properties				Apartments				Land				Other				Total
Operating revenue		$	33,113			$	87,832			$	1			$	10			$	120,956
Operating expenses			(16,252	)			(42,134	)			(645	)			(556	)			(59,587	)
Depreciation and amortization			(9,530	)			(13,140	)			—				—				(22,670	)
Mortgage and loan interest			(7,663	)			(20,671	)			(636	)			(37,093	)			(66,063	)
Interest income			—				—				—				21,645				21,645
Gain on land sales			—				—				17,404				—				17,404
Segment operating income (loss)		$	(332	)		$	11,887			$	16,124			$	(15,994	)		$	11,685

Capital expenditures		$	8,246			$	16,953			$	—			$	—			$	25,199
Assets		$	153,014			$	143,500			$	84,529			$	—			$	381,043

Property Sales
Sales price		$	2,313			$	8,512			$	43,311			$	—			$	54,136
Cost of sale			(2,313	)			(8,512	)			(25,907	)			—				(36,732	)
Gain on land sales		$	—			$	—			$	17,404			$	—			$	17,404

For the Twelve Months Ended December 31, 2017		Commercial Properties				Apartments				Land				Other				Total
Operating revenue		$	33,286			$	92,807			$	111			$	17			$	126,221
Operating expenses			(18,549	)			(43,677	)			(878	)			(987	)			(64,091	)
Depreciation and amortization			(9,358	)			(16,354	)			—				33				(25,679	)
Mortgage and loan interest			(7,527	)			(22,347	)			(1,945	)			(34,352	)			(66,171	)
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			$	3,719			$	(16,348	)		$	10,803

Capital expenditures		$	(5,817	)		$	1,402			$	609			$	—			$	(3,806	)
Assets		$	137,157			$	727,508			$	123,452			$	—			$	988,117

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

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

		For the Years Ended December 31,
		2019				2018				2017
Segment operating income		$	4,965			$	11,685			$	10,803
Other non-segment items of income (expense)
General and administrative			(13,336	)			(12,708	)			(7,691	)
Net income fee to related party			(357	)			(631	)			(250	)
Advisory fee to related party			(6,612	)			(11,475	)			(11,082	)
Other income			11,018				28,993				4,082
Gain on disposition of 50% interest in VAA			—				154,126				—
Foreign currency translation (loss) gain			(15,108	)			12,399				(4,536	)
Loss from joint venture			(2,774	)			44				—
Loss on sale of investments			—				—				(331	)
Earnings from unconsolidated investees			461				1,469				309
Income tax expense			—				(1,210	)			(180	)
Net (loss) income from continuing operations		$	(21,743	)		$	182,692			$	(8,876	)

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

		As of December 31,
		2019				2018				2017
Segment assets		$	387,790			$	381,043			$	988,117
Investments in unconsolidated investees			67,655				76,001				6,396
Notes and interest receivable			156,200				126,058				112,095
Other assets			218,996				243,047				190,112
Total assets		$	830,641			$	826,149			$	1,296,720