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OPERATING SEGMENTS
 9 Months Ended
Sep. 30, 2014
OPERATING SEGMENTS  
OPERATING SEGMENTS

NOTE 6. OPERATING SEGMENTS

 

The Company’s segments are based on management’s method of internal reporting which classifies operations by the type of property in the portfolio.  The Company’s segments by use of property are 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, 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 the operating segment information for the three and nine months ended September 30, 2014 and 2013 (dollars in thousands):

 

For the Three Months Ended September 30, 2014

 

Land

 

 

Other

 

 

Total

 

Rental and other property revenues

 

$

-

 

 

$

-

 

 

$

-

 

Property operating expenses

 

 

13

 

 

 

-

 

 

 

13

 

Mortgage and loan interest

 

 

176

 

 

 

-

 

 

 

176

 

Interest income from related parties

 

 

-

 

 

 

1,179

 

 

 

1,179

 

Segment operating income (loss)

 

$

(189

)

 

$

1,179

 

 

$

990

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate assets

 

 

24,515

 

 

 

-

 

 

 

24,515

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2013

 

Land

 

 

Other

 

 

Total

 

Rental and other property revenues

 

$

-

 

 

$

-

 

 

$

-

 

Property operating expenses

 

 

49

 

 

 

-

 

 

 

49

 

Mortgage and loan interest

 

 

297

 

 

 

-

 

 

 

297

 

Interest income from related parties

 

 

-

 

 

 

1,427

 

 

 

1,427

 

Segment operating income (loss)

 

$

(346

)

 

$

1,427

 

 

$

1,081

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate assets

 

 

24,511

 

 

 

-

 

 

 

24,511

 

 

 

   

 

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

 

 

 

For the Three Months Ended

 

 

 

September 30,

 

 

 

2014

 

 

2013

 

Segment operating income

 

$

990

 

 

$

1,081

 

Other non-segment items of income (expense)

 

 

 

 

 

 

 

 

General and administrative

 

 

(143

)

 

 

(192

)

Net income fee to related party

 

 

(51

)

 

 

(55

)

Advisory fee to related party

 

 

(173

)

 

 

(209

)

Income tax expense

 

 

-

 

 

 

-

 

Net income from continuing operations

 

$

623

 

 

$

625

 

 

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

 

 

 

September 30,

 

 

 

2014

 

 

2013

 

Real estate assets

 

$

24,515

 

 

$

24,511

 

Notes and interest receivable

 

 

24,865

 

 

 

26,562

 

Other assets

 

 

44,016

 

 

 

60,201

 

Total assets

 

$

93,396

 

 

$

111,274

 

 

 

For the Nine Months Ended September 30, 2014

 

Land

 

 

Other

 

 

Total

 

Rental and other property revenues

 

$

-

 

 

$

-

 

 

$

-

 

Property operating expenses

 

 

42

 

 

 

-

 

 

 

42

 

Mortgage and loan interest

 

 

538

 

 

 

-

 

 

 

538

 

Interest income from related parties

 

 

-

 

 

 

3,547

 

 

 

3,547

 

Segment operating income (loss)

 

$

(580

)

 

$

3,547

 

 

$

2,967

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate assets

 

 

24,515

 

 

 

-

 

 

 

24,515

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30, 2013

 

Land

 

 

Other

 

 

Total

 

Rental and other property revenues

 

$

-

 

 

$

-

 

 

$

-

 

Property operating expenses

 

 

72

 

 

 

-

 

 

 

72

 

Mortgage and loan interest

 

 

879

 

 

 

-

 

 

 

879

 

Interest income from related parties

 

 

-

 

 

 

4,251

 

 

 

4,251

 

Segment operating income (loss)

 

$

(951

)

 

$

4,251

 

 

$

3,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate assets

 

 

24,511

 

 

 

-

 

 

 

24,511

 

 

 

 

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

 

 

 

For the Nine Months Ended

 

 

 

September 30,

 

 

 

2014

 

 

2013

 

Segment operating income

 

$

2,967

 

 

$

3,300

 

Other non-segment items of income (expense)

 

 

 

 

 

 

 

 

General and administrative

 

 

(422

)

 

 

(536

)

Net income fee to related party

 

 

(152

)

 

 

(159

)

Advisory fee to related party

 

 

(516

)

 

 

(621

)

Income tax expense

 

 

-

 

 

 

(6

)

Net income from continuing operations

 

$

1,877

 

 

$

1,978

 

 

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

 

 

 

September 30,

 

 

 

2014

 

 

2013

 

Real estate assets

 

$

24,515

 

 

$

24,511

 

Notes and interest receivable

 

 

24,865

 

 

 

26,562

 

Other assets

 

 

44,016

 

 

 

60,201

 

Total assets

 

$

93,396

 

 

$

111,274