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OPERATING SEGMENTS
 6 Months Ended
Jun. 30, 2020
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 June 30, 2020 and 2019, including segment assets and expenditures (dollars in thousands):

 

    Commercial                          
For the Three Months Ended June 30, 2020   Properties     Apartments     Land     Other     Total  
Rental and other property revenues   $ 7,863     $ 4,084     $ —     $ —     $ 11,947  
Property operating expenses     (4,071 )     (1,930 )     (95 )     286       (5,810 )
Depreciation     (2,480 )     (938 )     —       —       (3,418 )
Mortgage and loan interest     (1,346 )     (1,177 )     (293 )     (6,255 )     (9,071 )
Interest income     —       —       —       5,284       5,284  
Gain on land sales     —       —       5,339       —       5,339  
Segment operating (loss) income   $ (34 )   $ 39     $ 4,951     $ (685 )   $ 4,271  
Capital expenditures   $ 232     $ 7,400     $ 664     $ —       8,296  
Real estate assets   $ 146,576     $ 180,835     $ 67,533     $ —       394,944  
                                         
Property Sales                                        
Sales price   $ —     $ 2,426     $ 6,477     $ —     $ 8,903  
Cost of sale     —       (2,426 )     (1,138 )     —       (3,564 )
Gain on sale   $ —     $ —     $ 5,339     $ —     $ 5,339  

 

    Commercial                          
For the Three Months Ended June 30, 2019   Properties     Apartments     Land     Other     Total  
Rental and other property revenues   $ 8,020     $ 3,818     $ —     $ 2     $ 11,840  
Property operating expenses     (4,410 )     (2,018 )     (88 )     (807 )     (7,323 )
Depreciation     (2,732 )     (707 )     —       —       (3,439 )
Mortgage and loan interest     (1,947 )     (1,003 )     (41 )     (6,417 )     (9,408 )
Interest income     —       —       —       6,505       6,505  
Loss on sale of income producing property     —       (80 )     —       —       (80 )
Gain on land sales     —       —       2,517       —       2,517  
Segment operating (loss) income   $ (1,069 )   $ 10     $ 2,388     $ (717 )   $ 612  
Capital expenditures     346       9,596       353       —       10,295  
Real estate assets     —       —       —       —       —  
                                         
Property Sales                                        
Sales price   $ —     $ 3,695     $ 5,802     $ —     $ 9,497  
Cost of sale     —       (3,775 )     (3,285 )     —       (7,060 )
Gain on sale   $ —     $ (80 )   $ 2,517     $ —     $ 2,437  

 

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, 2020 and 2019 (dollars in thousands):

 

    For the Three Months Ended  
    June 30,  
    2020     2019  
Segment operating income   $ 4,271     $ 612  
Other non-segment items of income (expense)                
General and administrative     (1,669 )     (2,419 )
Franchise taxes and other expenses     —       (585 )
Net income fee to related party     (112 )     (90 )
Advisory fee to related party     (2,241 )     (2,361 )
Other income     2,794       3,364  
Foreign Currency Transaction gain (loss)     (5,599 )     (2,325 )
Loss from joint venture     (735 )     (236 )
Earnings from unconsolidated investees     16       173  
State income tax expense     (49 )     —  
Net income (loss) from continuing operations   $ (3,324 )   $ (3,867 )

 

Presented below is our reportable segments’ operating income for the six months ended June 30, 2020 and 2019, including segment assets and expenditures (dollars in thousands):

 

    Commercial                          
For the Six Months Ended June 30, 2020   Properties     Apartments     Land     Other     Total  
Rental and other property revenues   $ 15,747     $ 8,116     $ —     $ 2     $ 23,865  
Property operating expenses     (8,181 )     (3,860 )     (193 )     114       (12,120 )
Depreciation     (5,002 )     (1,810 )     —       —       (6,812 )
Mortgage and loan interest     (2,717 )     (2,349 )     (574 )     (13,033 )     (18,673 )
Interest income     —       —       —       11,038       11,038  
Gain on land sales     —       —       9,477       —       9,477  
Segment operating (loss) income   $ (153 )   $ 97     $ 8,710     $ (1,879 )   $ 6,775  
Capital expenditures   $ 941     $ 14,433     $ 2,664     $ —     $ 18,038  
Assets   $ 146,576     $ 180,835     $ 67,533     $ —     $ 394,944  
                                         
Property Sales                                        
Sales price   $ —     $ 2,426     $ 12,189     $ —     $ 14,615  
Cost of sale     —       (2,426 )     (2,712 )     —       (5,138 )
Gain on land sales   $ —     $ —     $ 9,477     $ —     $ 9,477  

 

    Commercial                          
For the Six Months Ended June 30, 2019   Properties     Apartments     Land     Other     Total  
Rental and other property revenues   $ 16,247     $ 7,518     $ —     $ 4     $ 23,769  
Property operating expenses     (8,346 )     (4,076 )     (45 )     (853 )     (13,320 )
Depreciation     (5,107 )     (1,441 )     —       —       (6,548 )
Mortgage and loan interest     (3,914 )     (1,937 )     (370 )     (13,155 )     (19,376 )
Interest income     —       —       —       12,658       12,658  
Loss on sale of income producing property     —       (80 )     —       —       (80 )
Gain on land sales     —       —       4,733       —       4,733  
Segment operating (loss) income   $ (1,120 )   $ (16 )   $ 4,318     $ (1,346 )   $ 1,836  
Capital expenditures   $ 4,045     $ 17,434     $ 2,832     $ —     $ 24,311  
Assets   $ 152,863     $ 151,688     $ 78,871     $ —     $ 383,422  
                                         
Property Sales                                        
Sales price   $ —     $ 3,695     $ 14,517     $ —     $ 18,212  
Cost of sale     —       (3,775 )     (9,784 )     —       (13,559 )
Gain on sale   $ —     $ (80 )   $ 4,733     $ —     $ 4,653  

  

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, 2020 and 2019 (dollars in thousands):

 

    For the Six Months Ended June 30,  
    2020     2019  
Segment operating income   $ 6,775     $ 1,836  
Other non-segment items of income (expense)                
General and administrative     (4,464 )     (5,024 )
Franchise taxes and other expenses     (1,496 )     (585 )
Net income fee to related party     (198 )     (190 )
Advisory fee to related party     (4,528 )     (4,214 )
Other income     4,006       7,031  
Foreign currency translation gain (loss)     2,244       (8,143 )
Loss from joint venture     (1,111 )     (1,291 )
Losses from other unconsolidated investees     132       231  
State income tax expense     (296 )     —  
Net income (loss) from continuing operations   $ 1,064     $ (10,349 )

 

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

 

    As of June 30,  
    2020     2019  
Segment assets   $ 394,944     $ 383,422  
Investments in unconsolidated investees     61,412       74,911  
Notes and interest receivable     167,589       159,582  
Other assets     204,344       199,638  
Total assets   $ 828,289     $ 817,553