Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 25, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | DRIVE SHACK INC. | |
Entity Central Index Key | 1,175,483 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Common Stock, Shares Outstanding | 66,963,566 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 182,371 | $ 140,140 |
Restricted cash | 4,629 | 4,992 |
Accounts receivable, net | 8,540 | 8,047 |
Real estate securities, available-for-sale | 2,236 | 629,254 |
Other current assets | 22,540 | 78,687 |
Total Current Assets | 220,316 | 861,120 |
Restricted cash, noncurrent | 1,407 | 1,412 |
Property and equipment, net of accumulated depreciation | 226,049 | 217,611 |
Intangibles, net of accumulated amortization | 59,309 | 65,112 |
Other investments | 20,601 | 19,256 |
Other assets | 8,433 | 7,447 |
Total Assets | 536,115 | 1,171,958 |
Current Liabilities | ||
Obligations under capital leases | 4,484 | 3,699 |
Membership deposit liabilities - current portion | 8,830 | 8,491 |
Repurchase agreements | 0 | 600,964 |
Accounts payable and accrued expenses | 33,672 | 26,249 |
Deferred revenue | 9,955 | 29,851 |
Other current liabilities | 21,753 | 28,968 |
Total Current Liabilities | 78,694 | 698,222 |
Credit facilities and obligations under capital leases | 112,383 | 111,585 |
Junior subordinated notes payable | 51,210 | 51,217 |
Membership deposit liabilities | 84,896 | 80,549 |
Deferred revenue, noncurrent | 6,900 | 6,256 |
Other liabilities | 5,724 | 6,062 |
Total Liabilities | 339,807 | 953,891 |
Commitments and contingencies | ||
Equity | ||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 1,347,321 shares of 9.75% Series B Cumulative Redeemable Preferred Stock, 496,000 shares of 8.05% Series C Cumulative Redeemable Preferred Stock, and 620,000 shares of 8.375% Series D Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, issued and outstanding as of September 30, 2017 and December 31, 2016 | 61,583 | 61,583 |
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 66,932,744 and 66,824,304 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 669 | 668 |
Additional paid-in capital | 3,173,095 | 3,172,720 |
Accumulated deficit | (3,040,386) | (3,018,072) |
Accumulated other comprehensive income | 1,347 | 1,168 |
Total Equity | 196,308 | 218,067 |
Total Liabilities and Equity | $ 536,115 | $ 1,171,958 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock liquidation preference, (in dollars per share) | $ 25 | $ 25 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 66,932,744 | 66,824,304 |
Common stock, shares outstanding (in shares) | 66,932,744 | 66,824,304 |
Series B Cumulative Redeemable Preferred Stock | ||
Preferred stock, shares issued (in shares) | 1,347,321 | 1,347,321 |
Preferred stock, shares outstanding (in shares) | 1,347,321 | 1,347,321 |
Preferred stock, dividend rate (as percent) | 9.75% | 9.75% |
Series C Cumulative Redeemable Preferred Stock | ||
Preferred stock, shares issued (in shares) | 496,000 | 496,000 |
Preferred stock, shares outstanding (in shares) | 496,000 | 496,000 |
Preferred stock, dividend rate (as percent) | 8.05% | 8.05% |
Series D Cumulative Redemable Preferred Stock | ||
Preferred stock, shares issued (in shares) | 620,000 | 620,000 |
Preferred stock, shares outstanding (in shares) | 620,000 | 620,000 |
Preferred stock, dividend rate (as percent) | 8.375% | 8.375% |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||||
Golf course operations | $ 62,034 | $ 63,249 | $ 168,969 | $ 174,718 |
Sales of food and beverages | 19,657 | 19,913 | 53,223 | 55,086 |
Total revenues | 81,691 | 83,162 | 222,192 | 229,804 |
Operating costs | ||||
Operating expenses | 67,385 | 69,251 | 187,730 | 195,670 |
Cost of sales - food and beverages | 5,721 | 6,026 | 15,762 | 17,139 |
General and administrative expense | 4,328 | 3,688 | 11,115 | 10,348 |
Management fee to affiliate | 2,678 | 2,676 | 8,032 | 8,027 |
Depreciation and amortization | 6,187 | 6,735 | 17,952 | 19,250 |
Impairment | 28 | 611 | 60 | 3,564 |
Realized and unrealized (gain) loss on investments | (315) | (6,605) | 6,361 | (3,136) |
Total operating costs | 86,012 | 82,382 | 247,012 | 250,862 |
Operating (loss) income | (4,321) | 780 | (24,820) | (21,058) |
Other income (expenses) | ||||
Interest and investment income | 8,418 | 32,310 | 22,701 | 73,770 |
Interest expense, net | (4,770) | (13,138) | (15,335) | (39,089) |
Gain on deconsolidation | 0 | 0 | 0 | 82,130 |
Other income, net | 202 | 505 | 372 | 1,339 |
Total other income (expenses) | 3,850 | 19,677 | 7,738 | 118,150 |
(Loss) Income before income tax | (471) | 20,457 | (17,082) | 97,092 |
Income tax (benefit) expense | (2) | (38) | 1,047 | 144 |
Net (Loss) Income | (469) | 20,495 | (18,129) | 96,948 |
Preferred dividends | (1,395) | (1,395) | (4,185) | (4,185) |
Net (income) attributable to noncontrolling interest | 0 | (177) | 0 | (165) |
(Loss) Income Applicable to Common Stockholders | $ (1,864) | $ 18,923 | $ (22,314) | $ 92,598 |
(Loss) Income Applicable to Common Stock, per share | ||||
Basic (in dollars per share) | $ (0.03) | $ 0.28 | $ (0.33) | $ 1.39 |
Diluted (in dollars per share) | $ (0.03) | $ 0.27 | $ (0.33) | $ 1.35 |
Weighted Average Number of Shares of Common Stock Outstanding | ||||
Basic (in shares) | 66,932,744 | 66,730,583 | 66,883,291 | 66,688,962 |
Diluted (in shares) | 66,932,744 | 69,072,676 | 66,883,291 | 68,753,532 |
Dividends Declared per Share of Common Stock (in dollars per share) | $ 0 | $ 0.12 | $ 0 | $ 0.24 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (469) | $ 20,495 | $ (18,129) | $ 96,948 |
Other comprehensive income (loss): | ||||
Net unrealized gain on available-for-sale securities | 1,257 | 894 | 2,524 | 8,696 |
Reclassification of net realized gain on securities into earnings | (2,345) | (10,080) | (2,345) | (18,506) |
Reclassification of net realized gain on deconsolidation of CDO VI | 0 | 0 | 0 | (20,682) |
Reclassification of net realized gain on derivatives designated as cash flow hedges into earnings | 0 | 0 | 0 | (20) |
Other comprehensive (loss) income | (1,088) | (9,186) | 179 | (30,512) |
Total comprehensive (loss) income | (1,557) | 11,309 | (17,950) | 66,436 |
Comprehensive (loss) income attributable to Drive Shack Inc. stockholders’ equity | (1,557) | 11,132 | (17,950) | 66,271 |
Comprehensive income attributable to noncontrolling interest | $ 0 | $ 177 | $ 0 | $ 165 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY (Unaudited) - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid- in Capital | Accumulated Deficit | Accumulated Other Comp. Income (Loss) |
Equity (deficit), beginning (in shares) at Dec. 31, 2016 | 2,463,321 | 66,824,304 | ||||
Equity (deficit), beginning at Dec. 31, 2016 | $ 218,067 | $ 61,583 | $ 668 | $ 3,172,720 | $ (3,018,072) | $ 1,168 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared | (4,185) | (4,185) | ||||
Issuance of common stock (directors) (in shares) | 108,440 | |||||
Issuance of common stock (directors) | 376 | $ 1 | 375 | |||
Comprehensive income (loss) | ||||||
Net loss | (18,129) | (18,129) | ||||
Other comprehensive income | 179 | 179 | ||||
Total comprehensive (loss) income | (17,950) | |||||
Equity (deficit), ending (in shares) at Sep. 30, 2017 | 2,463,321 | 66,932,744 | ||||
Equity (deficit), ending at Sep. 30, 2017 | $ 196,308 | $ 61,583 | $ 669 | $ 3,173,095 | $ (3,040,386) | $ 1,347 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows From Operating Activities | ||
Net (loss) income | $ (18,129) | $ 96,948 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Depreciation and amortization | 17,952 | 19,250 |
Amortization of discount and premium | (3,856) | (8,156) |
Other amortization | 7,889 | 7,998 |
Net interest income on investments accrued to principal balance | (8,458) | (25,570) |
Amortization of revenue on golf membership deposit liabilities | (963) | (646) |
Amortization of prepaid golf membership dues | (20,017) | (20,951) |
Non-cash directors’ compensation | 376 | 351 |
Impairment | 60 | 3,564 |
Equity in earnings from equity method investments, net of distributions | (1,149) | (1,129) |
Gain on deconsolidation | 0 | (82,130) |
Loss (Gain) on settlement of investments, net | 5,368 | (5,146) |
Unrealized loss on securities, intent-to-sell | 558 | 0 |
Unrealized loss on non-hedge derivatives | 688 | 1,702 |
Loss on extinguishment of debt | 327 | 607 |
Change in: | ||
Restricted cash | 368 | (2,487) |
Accounts receivable, net, other current assets and other assets - noncurrent | (1,053) | (4,307) |
Accounts payable and accrued expenses, deferred revenue, other current liabilities and other liabilities - noncurrrent | 5,405 | 5,405 |
Net cash used in operating activities | (14,634) | (14,697) |
Cash Flows From Investing Activities | ||
Principal repayments from investments | 100,020 | 133,756 |
Purchase of real estate securities | 0 | (1,618,090) |
Proceeds from sale of securities and loans | 595,850 | 1,128,906 |
Net payments for settlement of TBAs | (4,669) | (13,675) |
Acquisition and additions of property and equipment and intangibles | (16,905) | (9,147) |
Deposits paid on property and equipment | (1,486) | 0 |
Contributions to equity method investees | (196) | 0 |
Net cash provided by (used in) investing activities | 672,614 | (378,250) |
Cash Flows From Financing Activities | ||
Borrowings under debt obligations | 1,651 | 1,670,481 |
Repayments of debt obligations | (605,469) | (1,158,754) |
Margin deposits under repurchase agreements and derivatives | (89,692) | (41,131) |
Return of margin deposits under repurchase agreements and derivatives | 87,785 | 40,442 |
Golf membership deposits received | 2,706 | 3,117 |
Common stock dividends paid | (8,019) | (24,006) |
Preferred stock dividends paid | (4,185) | (4,185) |
Payment of deferred financing costs | (22) | (3,670) |
Other financing activities | (504) | (709) |
Net cash (used in) provided by financing activities | (615,749) | 481,585 |
Net Increase in Cash and Cash Equivalents | 42,231 | 88,638 |
Cash and Cash Equivalents, Beginning of Period | 140,140 | 45,651 |
Cash and Cash Equivalents, End of Period | 182,371 | 134,289 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Preferred stock dividends declared but not paid | 930 | 0 |
Financing costs accrued but not paid | 0 | 600 |
Additions to capital lease assets and liabilities | 3,601 | 7,018 |
Additions to property and equipment and accounts payable | $ 4,135 | $ 0 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Drive Shack Inc. (and with its subsidiaries, “Drive Shack Inc.” or the “Company”) is a leading owner and operator of golf-related leisure and entertainment businesses. On December 28, 2016, the Company changed its name from Newcastle Investment Corp. to Drive Shack Inc. in connection with its transformation to a leisure and entertainment company. The Company, a Maryland corporation, was formed in 2002, and its common stock is traded on the NYSE under the symbol “DS.” The Company conducts its business through the following segments: (i) Traditional Golf properties, (ii) Entertainment Golf venues, (iii) Debt Investments and (iv) corporate. For a further discussion of the reportable segments, see Note 3. The Company’s Traditional Golf business is one of the largest owners and operators of golf properties in the United States. As of September 30, 2017 , the Company owned, leased or managed 77 properties across 13 states. Additionally, the Company plans to open a chain of next-generation Entertainment Golf venues across the United States and internationally which combine golf, competition, dining and fun. As of September 30, 2017 , the Company has substantially monetized the remaining loans and securities in its Debt Investments segment (see Notes 7 and 8). On February 23, 2017, the Company revoked its election to be treated as a real estate investment trust (“REIT”), effective January 1, 2017. The Company operated in a manner intended to qualify as a REIT for federal income tax purposes through December 31, 2016. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation — The accompanying Consolidated Financial Statements and related notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements for the year ended December 31, 2016 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 2, 2017. Capitalized terms used herein, and not otherwise defined, are defined in the Company’s Consolidated Financial Statements for the year ended December 31, 2016 . Certain prior period amounts have been reclassified to conform to the current period’s presentation. In connection with the Company’s continued transformation from a financial services company to a leisure and entertainment company, including the announcement of the new management team in September 2016, the revocation of its REIT election effective January 1, 2017, as well as the monetization and planned exit of its real estate related debt positions, the Company’s Consolidated Statements of Operations were changed to reflect an operating company presentation in the fourth quarter of 2016. The Company has reclassified driving range revenue, including the monthly membership program offered at most of its public properties (“The Players Club’’) and miscellaneous revenue associated with operations from “Other revenue” to “Golf course operations.” The Company has reclassified expenses associated with the cost of merchandise sold from “Cost of sales - golf” to “Operating expenses.” The Company has added “Loan and security servicing expense” to “General and administrative expense.” The gains and losses associated with derivative instruments have been reclassified from “Other income (loss), net” to “Realized and unrealized (gain) loss on investments” to include balances as part of its operating income (loss). As of September 30, 2017 , the Company monetized and exited its significant real estate related debt positions, including the agency Fannie Mae/Freddie Mac (“FNMA/FHLMC’’) securities and received the final pay down on a corporate loan (“the resorts-related loan”). As such, the Company's Consolidated Balance Sheets have been revised to a classified balance sheet presentation, consistent with an operating company presentation, and certain prior period amounts have been reclassified to conform to the current period’s presentation. The Company has reclassified assets reasonably expected to be realized in cash during the normal operating cycle of the business as current assets and current liabilities are obligations whose liquidation is reasonably expected to require the use of existing resources properly classified as current assets. The Company has reclassified “Real estate securities, available-for-sale - pledged as collateral’’ to “Real estate securities, available-for-sale’’ given the substantial monetization of the available-for-sale securities. The Company reclassified “Real estate related and other loans, held-for-sale, net’’ and “Receivables from brokers, dealers and clearing organizations’’ to “Other current assets.” “Investments in real estate, net of accumulated depreciation” was renamed as “Property and equipment, net of accumulated depreciation” under the operating company presentation. The Company has reclassified “Dividends payable” to be included in “Other current liabilities.” The change to a classified balance sheet and the related aforementioned reclassifications have been made to simplify financial reporting as the Company has substantially exited its real estate related debt positions. As of September 30, 2017 , the Company’s significant accounting policies for these financial statements are summarized below and should be read in conjunction with the Summary of Significant Accounting Policies detailed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . REVENUE RECOGNITION Golf Course Operations — Revenue from green fees, cart rentals, merchandise sales and other operating activities (consisting primarily of range income, banquets and club amenities) are generally recognized at the time of sale, when services are rendered and collection is reasonably assured. Revenue from membership dues is recognized in the month earned. Membership dues received in advance are included in deferred revenue and recognized as revenue ratably over the appropriate period, which is generally twelve months or less. The membership dues are generally structured to cover the club operating costs and membership services. Private country club members generally pay an advance initiation fee deposit upon their acceptance as a member to the respective country club. Initiation fee deposits are refundable 30 years after the date of acceptance as a member. The difference between the initiation fee deposit paid by the member and the present value of the refund obligation is deferred and recognized into revenue in the Consolidated Statements of Operations on a straight-line basis over the expected life of an active membership, which is estimated to be seven years. The present value of the refund obligation is recorded as a membership deposit liability in the Consolidated Balance Sheets and accretes over a 30 -year nonrefundable term using the effective interest method. This accretion is recorded as interest expense in the Consolidated Statements of Operations. Realized and Unrealized (Gain) Loss on Investments and Other Income, Net — These items are comprised of the following: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (Gain) on settlement of real estate securities $ (2,345 ) $ (10,080 ) $ (2,345 ) $ (18,560 ) Loss on settlement of real estate securities — — 2,803 — Unrealized loss on securities, intent-to-sell — — 558 — (Gain) loss on settlement of loans held-for-sale — — (12 ) 47 Realized loss on settlement of TBAs, net 228 3,730 4,669 13,675 Unrealized loss (gain) on non-hedge derivative instruments 1,802 (255 ) 688 1,702 Realized and unrealized (gain) loss on investments $ (315 ) $ (6,605 ) $ 6,361 $ (3,136 ) (Loss) gain on lease modifications and terminations $ (1 ) $ 2 $ (161 ) $ (75 ) Loss on extinguishment of debt, net (145 ) (227 ) (327 ) (607 ) Collateral management fee income, net 92 119 341 481 Equity in earnings of equity method investees 387 384 1,149 1,129 (Loss) gain on disposal of long-lived assets (3 ) — 23 24 Other (loss) income (128 ) 227 (653 ) 387 Other income, net $ 202 $ 505 $ 372 $ 1,339 Reclassification From Accumulated Other Comprehensive Income Into Net Income — The following table summarizes the amounts reclassified out of accumulated other comprehensive income into net income: Three Months Ended September 30, Nine Months Ended September 30, Accumulated Other Comprehensive Income ("AOCI") Components Income Statement Location 2017 2016 2017 2016 Net realized (gain) loss on securities: Impairment Impairment $ — $ — $ — $ 54 (Gain) on settlement of real estate securities Realized and unrealized (gain) loss on investments (2,345 ) (10,080 ) (2,345 ) (18,560 ) Realized (gain) on deconsolidation of CDO VI Gain on deconsolidation — — — (20,682 ) $ (2,345 ) $ (10,080 ) $ (2,345 ) $ (39,188 ) Net realized (gain) on derivatives designated as cash flow hedges: Amortization of deferred hedge (gain) Interest expense, net $ — $ — $ — $ (20 ) $ — $ — $ — $ (20 ) Total reclassifications $ (2,345 ) $ (10,080 ) $ (2,345 ) $ (39,208 ) EXPENSE RECOGNITION Operating Expenses — Operating expenses for Traditional Golf consist primarily of payroll, equipment and cart leases, utilities, repairs and maintenance, supplies, seed, soil and fertilizer, marketing and operating lease rent expense. Many of the Traditional Golf properties and related facilities are leased under long-term operating leases. In addition to minimum payments, certain leases require payment of the excess of various percentages of gross revenue or net operating income over the minimum rental payments. The leases generally require the payment of taxes assessed against the leased property and the cost of insurance and maintenance. The majority of lease terms range from 10 to 20 years , and typically, the leases contain renewal options. Certain leases include scheduled increases or decreases in minimum rental payments at various times during the term of the lease. These scheduled rent increases or decreases are recognized on a straight-line basis over the term of the lease. Increases result in an accrual, which is included in accounts payable and accrued expenses and other liabilities, and decreases result in a receivable, which is included in other current assets and other assets, for the amount by which the cumulative straight-line rent differs from the contractual cash rent. Derivatives and Hedging Activities — All derivatives are recognized as either assets or liabilities on the balance sheet and measured at fair value. The Company reports the fair value of derivative instruments gross of cash paid or received pursuant to credit support agreements and fair value is reflected on a net counterparty basis when the Company believes a legal right of offset exists under an enforceable netting agreement. Changes in fair value are recorded in net income. Derivative transactions are entered into by the Company solely for risk management purposes in the ordinary course of business. As of September 30, 2017 , the Company has one interest rate cap with a fair value of $0.2 million which is not designated as a hedge. The Company transacts in the To Be Announced mortgage backed securities (“TBA”) market. TBA contracts are forward contracts to purchase mortgage-backed securities that will be issued by a U.S. government sponsored enterprise in the future. The Company primarily engages in TBA transactions for purposes of managing interest rate risk and market risk associated with the Agency residential mortgage backed securities (“RMBS”) investments which have exposure to interest rate and market risk volatility. The Company accounts for its TBA transactions as non-hedge instruments, with changes in market value recorded in the Consolidated Statements of Operations. As of September 30, 2017 , the Company did not hold TBA contracts following the sale of the remaining Agency RMBS (see Note 7). As of both September 30, 2017 and December 31, 2016 , the Company did not post margin related to TBA contracts. The Company’s derivative financial instruments contain credit risk to the extent that its bank counterparties may be unable to meet the terms of the agreements. The Company seeks to reduce such risk by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one party resulting from this type of credit risk is monitored. Management does not expect any material losses as a result of default by other parties. BALANCE SHEET MEASUREMENT Property and Equipment, Net — Real estate and related improvements are recorded at cost less accumulated depreciation. Costs that both materially add value to an asset and extend the useful life of an asset by more than a year are capitalized. With respect to golf course improvements (included in buildings and improvements), costs associated with original construction, significant replacements, permanent landscaping, sand traps, fairways, tee boxes or greens are capitalized. All other asset-related costs that do not meet these criteria, such as minor repairs and routine maintenance, are expensed as incurred. The Company capitalizes certain costs related to properties under development. Capitalization begins when the activities related to development have begun and ceases when activities are substantially complete and the asset is available for use. Capitalized costs include development, construction-related costs and interest expense. Long-lived assets to be disposed of by sale, which meet certain criteria, are reclassified to real estate held-for-sale and measured at the lower of their carrying amount or fair value less costs of sale. Real estate held-for-sale is recorded in other current assets on the Consolidated Balance Sheets. A disposal of a component of an entity or a group of components of an entity are reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. Discontinued operations are retroactively reclassified to income (loss) from discontinued operations for all periods presented. Traditional Golf leases certain golf carts and other equipment that are classified as capital leases. The value of capital leases is recorded as an asset on the balance sheet, along with a liability related to the associated payments. Depreciation of capital lease assets is calculated using the straight-line method over the shorter of the estimated useful lives and the expected lease terms. The cost of equipment under capital leases is included in property and equipment in the Consolidated Balance Sheets. Payments under the leases are treated as reductions of the liability, with a portion being recorded as interest expense under the effective interest method. Depreciation is calculated using the straight-line method based on the following estimated useful lives: Buildings and improvements 10-30 years Capital leases - equipment 3-7 years Furniture, fixtures and equipment 3-7 years Intangibles, Net — Intangible assets and liabilities relating to Traditional Golf consist primarily of leasehold advantages (disadvantages), management contracts and membership base. A leasehold advantage (disadvantage) exists to the Company when it pays a contracted rent that is below (above) market rents at the date of the transaction. The value of a leasehold advantage (disadvantage) is calculated based on the differential between market and contracted rent, which is tax effected and discounted to present value based on an after-tax discount rate corresponding to each golf property and is amortized over the term of the underlying lease agreement. The management contract intangible represents the Company’s golf course management contracts for both leased and managed properties. The management contract intangible for leased and managed properties is valued utilizing a discounted cash flow methodology under the income approach and is amortized over the term of the underlying lease or management agreements, respectively. The membership base intangible represents the Company’s relationship with its private country club members. The membership base intangible is valued using the multi-period excess earnings method under the income approach, and is amortized over the expected life of an active membership. Amortization of leasehold intangible assets and liabilities is included within operating expenses and amortization of all other intangible assets is included within depreciation and amortization in the Consolidated Statements of Operations. Amortization of all intangible assets is calculated using the straight-line method based on the following estimated useful lives: Trade name 30 years Leasehold intangibles 1-26 years Management contracts 1-26 years Internally-developed software 5 years Membership base 7 years Membership Deposit Liabilities — Private country club members generally pay an advance initiation fee deposit upon their acceptance as a member to the respective country club. Initiation fee deposits are refundable 30 years after the date of acceptance as a member. The difference between the initiation fee deposit paid by the member and the present value of the refund obligation is deferred and recognized into Golf course operations revenue in the Consolidated Statements of Operations on a straight-line basis over the expected life of an active membership, which is estimated to be seven years. The present value of the refund obligation is recorded as a membership deposit liability in the Consolidated Balance Sheets and accretes over a 30 -year nonrefundable term using the effective interest method. This accretion is recorded as interest expense in the Consolidated Statements of Operations. Other Investments — The Company owns an approximately 22% economic interest in a limited liability company which owns preferred equity secured by a commercial real estate project. The Company accounts for this investment as an equity method investment. As of September 30, 2017 and December 31, 2016 , the carrying value of this investment was $20.6 million and $19.3 million , respectively. The Company evaluates its equity method investment for other-than-temporary impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. The evaluation of recoverability is based on management’s assessment of the financial condition and near term prospects of the commercial real estate project, the length of time and the extent to which the market value of the investment has been less than cost, availability and cost of financing, demand for space, competition for tenants, changes in market rental rates, and operating costs. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the values estimated by management in its recoverability analyses may not be realized, and actual losses or impairment may be realized in the future. Impairment of Real Estate and Finite-lived Intangible Assets — The Company periodically reviews the carrying amounts of its long-lived assets, including real estate and finite-lived intangible assets, to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. The assessment of recoverability is based on management’s estimates by comparing the sum of the estimated undiscounted cash flows generated by the underlying asset, or other appropriate grouping of assets, to its carrying value to determine whether an impairment existed at its lowest level of identifiable cash flows. If the carrying amount of the asset is greater than the expected undiscounted cash flows to be generated by such asset, an impairment is recognized to the extent the carrying value of such asset exceeds its fair value. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows using an appropriate discount rate. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value less costs to sell. Investments in CDO Servicing Rights — In February 2011, the Company, through one of its subsidiaries, purchased the management rights with respect to certain C-BASS Investment Management LLC (“C-BASS”) Collateralized Debt Obligations (“CDOs”) pursuant to a bankruptcy proceeding. The Company initially recorded the cost of acquiring the collateral management rights as a servicing asset and subsequently amortizes this asset in proportion to, and over the period of, estimated net servicing income. Variable Interest Entities (“VIEs”) - There are no assets or liabilities of consolidated VIEs included in the Consolidated Balance Sheets as of September 30, 2017 and December 31, 2016 . The Company sold its remaining variable interests in Newcastle CDO V and Newcastle CDO VI during 2016 but continues to receive servicing fees as collateral manager, which are not considered variable interests. Other Current Assets The following table summarizes the Company's other current assets: September 30, 2017 December 31, 2016 Real estate related and other loans, held-for-sale, net $ 147 $ 55,612 Prepaid expenses 3,428 3,580 Interest receivable — 1,697 Deposits 3,002 1,314 Inventory 5,003 4,496 Derivative assets — 371 Residential mortgage loans, held-for-sale, net — 231 Receivables from brokers, dealers and clearing organizations — 552 Miscellaneous assets, net (A) 10,960 10,834 $ 22,540 $ 78,687 (A) Includes one owned property in Annandale, New Jersey in the Traditional Golf segment classified as held-for-sale. The Company expects to close on this property within the next 12 months. Other Assets The following table summarizes the Company's other assets: September 30, 2017 December 31, 2016 Prepaid expenses $ 28 $ 74 Deposits 2,353 2,791 Derivative assets 167 485 Miscellaneous assets, net 5,885 4,097 $ 8,433 $ 7,447 Other Current Liabilities The following table summarizes the Company's other current liabilities: September 30, 2017 December 31, 2016 Security deposits payable $ 7,939 $ 5,978 Accrued rent 2,289 1,930 Due to affiliates 893 892 Dividends payable 930 8,949 Miscellaneous liabilities 9,702 11,219 $ 21,753 $ 28,968 Other Liabilities The following table summarizes the Company's other liabilities: September 30, 2017 December 31, 2016 Security deposits payable $ 196 $ 95 Unfavorable leasehold interests 3,587 4,225 Accrued rent 1,004 683 Miscellaneous liabilities 937 1,059 $ 5,724 $ 6,062 Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (Topic 606) . The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date by one year. The standard will be effective for annual and interim periods beginning after December 15, 2017; however, all entities are allowed to adopt the standard as early as the original effective date (annual periods beginning after December 15, 2016). Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. In March 2016, the FASB issued ASU 2016-08 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations which clarifies how an entity should identify the unit of accounting for the principal versus agent evaluation and how to apply the control principle to certain types of arrangements. In April 2016, the FASB issued ASU 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies when a promised good or service is separately identifiable. In May 2016, the FASB issued ASU 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients which amends the new revenue recognition guidance on transition, collectibility, noncash consideration and the presentation of sales and other similar taxes. In December 2016, the FASB issued ASU 2016-20 Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers which amends the new revenue recognition guidance on performance obligations and 12 additional technical corrections and improvements. The Company is continuing to evaluate the potential impact of adopting this standard, and is in the process of reviewing customer contracts and revenue streams, identifying contractual provisions that may result in a change in the timing or the amount of revenue recognized. There are also certain considerations related to internal control over financial reporting that are associated with implementing the new guidance under Topic 606. The Company is currently evaluating its control framework for revenue recognition and identifying any changes that may need to be made in response to the new guidance. The Company expects to adopt the requirements of the new standard in the first quarter of 2018, and anticipates using the modified retrospective transition method. In January 2016, the FASB issued ASU 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The standard addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842) . The standard requires lessees to recognize most leases on the balance sheet and addresses certain aspects of lessor accounting. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and early adoption is permitted. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, with an option to use certain relief. The Company is evaluating potential impacts of adopting the standard. Upon initial qualitative evaluation, a key change upon adoption will be the balance sheet recognition of all leased assets and liabilities. The Company leases certain of its golf properties and equipment through operating leases which are not recognized on the balance sheet. The Company anticipates a right to use asset and a related lease liability will be recognized for these leases. In June 2016, the FASB issued ASU 2016-13 Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount under the other-than-temporary impairment model. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and early adoption is permitted for annual periods beginning after December 15, 2018. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. The standard provides specific guidance over eight identified cash flow issues in order to reduce diversity in practice over the presentation and classification of certain types of cash receipts and cash payments. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and early adoption is permitted. Entities should apply the standard using a retrospective transition method to each period presented. The Company does not anticipate that the adoption of this standard will result in a material impact to the presentation of the Consolidated Statements of Cash Flows. In November 2016, the FASB issued ASU 2016-18 Statement of Cash Flows (Topic 230), Restricted Cash. The standard requires entities to show the changes in the total of cash, cash equivalents and restricted cash in the statement of cash flows and provide a reconciliation to the related line items in the balance sheet. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and early adoption is permitted. Entities will be required to apply the guidance retrospectively when adopted and provide the relevant disclosures in ASC 250 in the first interim and annual periods in which the guidance is adopted. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01 Business Combinations (Topic 805), Clarifying the Definition of a Business . The standard clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets of businesses. The effective date of the standard will be for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. Entities will be required to apply the guidance on a prospective basis. The Company is currently evaluating the impact that this update will have on its Consolidated Financial Statements and related disclosures. The FASB has recently issued or discussed a number of proposed standards on topics such as financial statement presentation and financial instruments. Some of the proposed changes are significant and could have a material impact on the Company’s reporting. The Company has not yet fully evaluated the potential impact of these proposals, but will make such an evaluation as the standards are finalized. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company currently has four reportable segments: (i) Traditional Golf properties, (ii) Entertainment Golf venues, (iii) Debt Investments, and (iv) corporate. The Company's Traditional Golf business is one of the largest owners and operators of golf properties in the United States. As of September 30, 2017 , the Company owned, leased or managed 77 Traditional Golf properties across 13 states. Additionally, the Company plans to open a chain of next-generation Entertainment Golf venues across the United States and internationally, which combine golf, competition, dining and fun. The Debt Investment segment consists primarily of loans and securities which the Company has substantially monetized as part of its transformation to a leisure and entertainment company. The corporate segment consists primarily of interest income on short-term investments, general and administrative expenses, interest expense on the junior subordinated notes payable (Note 6), management fees pursuant to the Management Agreement (Note 12) and income tax expense (Note 14). Segment information for previously reported periods has been reclassified to conform to the change to the reportable segments in the fourth quarter of 2016. Summary financial data on the Company’s segments is given below, together with a reconciliation to the same data for the Company as a whole: Traditional Golf Entertainment Golf Debt Investments Corporate Total Nine Months Ended September 30, 2017 Revenues Golf course operations $ 168,969 $ — $ — $ — $ 168,969 Sales of food and beverages 53,223 — — — 53,223 Total revenues 222,192 — — — 222,192 Operating costs Operating expenses (A) 187,539 191 — — 187,730 Cost of sales - food and beverages 15,762 — — — 15,762 General and administrative expense 2,152 203 10 3,899 6,264 General and administrative expense - acquisition and transaction expenses (B) 558 4,122 — 171 4,851 Management fee to affiliate — — — 8,032 8,032 Depreciation and amortization 17,936 16 — — 17,952 Impairment — — 60 — 60 Realized and unrealized loss on investments 317 — 6,044 — 6,361 Total operating costs 224,264 4,532 6,114 12,102 247,012 Operating loss (2,072 ) (4,532 ) (6,114 ) (12,102 ) (24,820 ) Other income (expenses) Interest and investment income 114 — 22,137 450 22,701 Interest expense, net (C) (11,500 ) — (2,532 ) (1,303 ) (15,335 ) Other (loss) income, net (1,044 ) — 1,416 — 372 Total other income (expenses) (12,430 ) — 21,021 (853 ) 7,738 Income tax expense (D) — — — 1,047 1,047 Net (loss) income (14,502 ) (4,532 ) 14,907 (14,002 ) (18,129 ) Preferred dividends — — — (4,185 ) (4,185 ) (Loss) income applicable to common stockholders $ (14,502 ) $ (4,532 ) $ 14,907 $ (18,187 ) $ (22,314 ) Summary segment financial data (continued). Traditional Golf Entertainment Golf Debt Investments Corporate Total Three Months Ended September 30, 2017 Revenues Golf course operations $ 62,034 $ — $ — $ — $ 62,034 Sales of food and beverages 19,657 — — — 19,657 Total revenues 81,691 — — — 81,691 Operating costs Operating expenses (A) 67,244 141 — — 67,385 Cost of sales - food and beverages 5,721 — — — 5,721 General and administrative expense 708 60 10 1,619 2,397 General and administrative expense - acquisition and transaction expenses (B) 72 1,804 — 55 1,931 Management fee to affiliate — — — 2,678 2,678 Depreciation and amortization 6,171 16 — — 6,187 Impairment — — 28 — 28 Realized and unrealized loss (gain) on investments 32 — (347 ) — (315 ) Total operating costs 79,948 2,021 (309 ) 4,352 86,012 Operating income (loss) 1,743 (2,021 ) 309 (4,352 ) (4,321 ) Other income (expenses) Interest and investment income 42 — 8,085 291 8,418 Interest expense, net (C) (3,830 ) — (482 ) (458 ) (4,770 ) Other (loss) income, net (211 ) — 413 — 202 Total other income (expenses) (3,999 ) — 8,016 (167 ) 3,850 Income tax benefit (D) — — — (2 ) (2 ) Net (loss) income (2,256 ) (2,021 ) 8,325 (4,517 ) (469 ) Preferred dividends — — — (1,395 ) (1,395 ) (Loss) Income applicable to common stockholders $ (2,256 ) $ (2,021 ) $ 8,325 $ (5,912 ) $ (1,864 ) Traditional Golf Entertainment Golf Debt Investments (E) Corporate Total September 30, 2017 Total assets 319,356 19,882 23,514 173,363 536,115 Total liabilities 278,352 5,384 170 55,901 339,807 Preferred stock — — — 61,583 61,583 Equity attributable to common stockholders $ 41,004 $ 14,498 $ 23,344 $ 55,879 $ 134,725 Additions to property and equipment (including capital leases) during the nine months ended September 30, 2017 $ 15,178 $ 8,647 $ — $ — $ 23,825 Summary segment financial data (continued). Traditional Golf Entertainment Golf Debt Investments Corporate Total Nine Months Ended September 30, 2016 Revenues Golf course operations $ 174,718 $ — $ — $ — $ 174,718 Sales of food and beverages 55,086 — — — 55,086 Total revenues 229,804 — — — 229,804 Operating costs Operating expenses (A) 195,670 — — — 195,670 Cost of sales - food and beverages 17,139 — — — 17,139 General and administrative expense 2,207 5 70 5,602 7,884 General and administrative expense - acquisition and transaction expenses (B) 1,182 911 — 371 2,464 Management fee to affiliate — — — 8,027 8,027 Depreciation and amortization 19,250 — — — 19,250 Impairment — — 3,564 — 3,564 Realized and unrealized loss (gain) on investments 35 — (3,171 ) — (3,136 ) Total operating costs 235,483 916 463 14,000 250,862 Operating loss (5,679 ) (916 ) (463 ) (14,000 ) (21,058 ) Other income (expenses) Interest and investment income 94 — 73,661 15 73,770 Interest expense, net (C) (8,703 ) — (28,482 ) (1,904 ) (39,089 ) Gain on deconsolidation — — 82,130 — 82,130 Other (loss) income, net (272 ) — 1,611 — 1,339 Total other income (expenses) (8,881 ) — 128,920 (1,889 ) 118,150 Income tax expense 144 — — — 144 Net (loss) income (14,704 ) (916 ) 128,457 (15,889 ) 96,948 Preferred dividends — — — (4,185 ) (4,185 ) Net income attributable to noncontrolling interest (165 ) — — — (165 ) (Loss) income applicable to common stockholders $ (14,869 ) $ (916 ) $ 128,457 $ (20,074 ) $ 92,598 Summary segment financial data (continued). Traditional Golf Entertainment Golf Debt Investments Corporate Total Three Months Ended September 30, 2016 Revenues Golf course operations $ 63,249 $ — $ — $ — $ 63,249 Sales of food and beverages 19,913 — — — 19,913 Total revenues 83,162 — — — 83,162 Operating costs Operating expenses (A) 69,251 — — — 69,251 Cost of sales - food and beverages 6,026 — — — 6,026 General and administrative expense 662 3 32 1,936 2,633 General and administrative expense - acquisition and transaction expenses (B) 173 682 — 200 1,055 Management fee to affiliate — — — 2,676 2,676 Depreciation and amortization 6,735 — — — 6,735 Impairment — — 611 — 611 Realized and unrealized loss (gain) on investments 15 — (6,620 ) — (6,605 ) Total operating costs 82,862 685 (5,977 ) 4,812 82,382 Operating income (loss) 300 (685 ) 5,977 (4,812 ) 780 Other income (expenses) Interest and investment income 17 — 32,286 7 32,310 Interest expense, net (C) (3,340 ) — (9,405 ) (393 ) (13,138 ) Other income, net — — 505 — 505 Total other income (expenses) (3,323 ) — 23,386 (386 ) 19,677 Income tax benefit (38 ) — — — (38 ) Net (loss) income (2,985 ) (685 ) 29,363 (5,198 ) 20,495 Preferred dividends — — — (1,395 ) (1,395 ) Net income attributable to noncontrolling interest (177 ) — — — (177 ) (Loss) income applicable to common stockholders $ (3,162 ) $ (685 ) $ 29,363 $ (6,593 ) $ 18,923 (A) Operating expenses includes rental expenses recorded under operating leases for carts and equipment in the amount of $0.7 million and $2.3 million for the three and nine months ended September 30, 2017 , respectively, and $0.9 million and $2.9 million for the three and nine months ended September 30, 2016 , respectively. Operating expenses also includes amortization of favorable and unfavorable lease intangibles in the amount of $1.0 million and $3.1 million for the three and nine months ended September 30, 2017 , respectively, and $1.1 million and $3.4 million for the three and nine months ended September 30, 2016 , respectively. In addition, straight-line rent associated with our Entertainment Golf venues is included in operating expenses. (B) Acquisition and transaction expenses include costs related to completed and potential acquisitions and transactions which may include advisory, legal, accounting, valuation and other professional or consulting fees. Transaction expenses also include personnel and other costs which do not qualify for capitalization associated with the development of new Entertainment Golf venues. (C) Interest expense, net includes the accretion of membership deposit liabilities in the amount of $1.6 million and $4.8 million for the three and nine months ended September 30, 2017 , respectively, and $1.4 million and $4.3 million for the three and nine months ended September 30, 2016 , respectively. Interest expense is net of $0.1 million related to capitalized interest for Entertainment Golf for both the three and nine months ended September 30, 2017 . (D) Effective January 1, 2017, the Company revoked its election to be treated as a REIT. As a result, the Company is subject to U.S. federal corporate income tax and the provision for income taxes is recorded in the corporate segment. (E) Total assets in the Debt Investments segment includes an equity method investment in the amount of $20.6 million recorded in other investments on the Consolidated Balance Sheets. See Note 2 for additional information. |
PROPERTY AND EQUIPMENT, NET OF
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION | PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION The following table summarizes the Company’s property and equipment related to its Traditional and Entertainment Golf businesses: September 30, 2017 December 31, 2016 Gross Carrying Amount Accumulated Depreciation Net Carrying Value Gross Carrying Amount Accumulated Depreciation Net Carrying Value Land $ 84,319 $ — $ 84,319 $ 84,319 $ — $ 84,319 Buildings and improvements 151,489 (49,553 ) 101,936 144,690 (39,402 ) 105,288 Furniture, fixtures and equipment 32,874 (22,969 ) 9,905 29,132 (20,516 ) 8,616 Capital leases - equipment 24,284 (7,602 ) 16,682 20,844 (4,818 ) 16,026 Construction in progress 13,207 — 13,207 3,362 — 3,362 Total Property and Equipment $ 306,173 $ (80,124 ) $ 226,049 $ 282,347 $ (64,736 ) $ 217,611 In May 2017, the management agreement on a golf property in California expired and the Company exited the property. |
INTANGIBLES, NET OF ACCUMULATED
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION | INTANGIBLES, NET OF ACCUMULATED AMORTIZATION The following table summarizes the Company’s intangible assets related to the Traditional and Entertainment Golf businesses: September 30, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade name $ 700 $ (87 ) $ 613 $ 700 $ (70 ) $ 630 Leasehold intangibles (A) 48,107 (15,674 ) 32,433 48,107 (12,550 ) 35,557 Management contracts 35,111 (12,710 ) 22,401 35,207 (10,434 ) 24,773 Internally-developed software 800 (600 ) 200 800 (480 ) 320 Membership base 5,236 (2,805 ) 2,431 5,236 (2,244 ) 2,992 Nonamortizable liquor licenses 1,231 — 1,231 840 — 840 Total Intangibles $ 91,185 $ (31,876 ) $ 59,309 $ 90,890 $ (25,778 ) $ 65,112 (A) The amortization expense for leasehold intangibles is reported in operating expenses in the Consolidated Statements of Operations. |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table presents certain information regarding the Company’s debt obligations at September 30, 2017 : Debt Obligation/Collateral Month Issued Outstanding Carrying Final Stated Maturity Weighted Weighted Average Weighted Average Life (Years) Face Amount of Credit Facilities and Capital Leases Traditional Golf term loan (C)(D) June 2016 102,000 99,606 Jul 2019 LIBOR+4.70% 7.92 % 1.7 102,000 Vineyard II Dec 1993 200 200 Dec 2043 2.20% 2.20 % 26.2 200 Capital leases (Equipment) Jun 2014 - Sep 2017 17,061 17,061 Sep 2018 - Dec 2022 3.00% to 16.16% 6.55 % 3.7 — 119,261 116,867 7.71 % 2.0 102,200 Less current portion of obligations under capital leases 4,484 4,484 Credit facilities and obligations under capital leases - noncurrent 114,777 112,383 Corporate Junior subordinated notes payable (E) Mar 2006 51,004 51,210 Apr 2035 LIBOR+2.25% 3.53 % 17.6 51,004 Total debt obligations $ 165,781 $ 163,593 6.44 % 6.7 $ 153,204 (A) Weighted average, including floating and fixed rate classes. (B) Including the effect of deferred financing costs. (C) The Traditional Golf term loan is collateralized by 22 golf properties. The carrying amount of the Traditional Golf term loan is reported net of amortized deferred financing costs of $2.4 million as of September 30, 2017 . (D) Interest rate based on 1 month LIBOR plus 4.70% with a LIBOR floor of 1.80% . At the time of closing, the Company purchased a co-terminus LIBOR interest rate cap of 1.80% . (E) Interest rate based on 3 month LIBOR plus 2.25% . See Note 7 for information about the FNMA/FHLMC repurchase agreement activity for the nine months ended September 30, 2017 . Traditional Golf leases certain golf carts and other equipment under capital lease agreements. The agreements typically provide for minimum rentals plus executory costs. Lease terms range from 36 to 66 months. Certain leases include bargain purchase options at lease expiration. The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of September 30, 2017 are as follows: October 1, 2017 - December 31, 2017 $ 1,365 2018 5,464 2019 5,319 2020 4,039 2021 2,464 2022 662 Total minimum lease payments 19,313 Less: imputed interest (2,252 ) Present value of net minimum lease payments $ 17,061 The Company’s credit facilities contain various customary loan covenants, including certain coverage ratios. The Company was in compliance with all of these covenants as of September 30, 2017 . |
REAL ESTATE SECURITIES
REAL ESTATE SECURITIES | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
REAL ESTATE SECURITIES | REAL ESTATE SECURITIES The following is a summary of the Company’s real estate securities at September 30, 2017 , all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired. September 30, 2017 Amortized Cost Basis Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Before Impairment Other-Than- Temporary Impairment After Impairment Gains Losses Carrying Number of Securities Rating (B) Coupon Yield Life Principal Subordination (D) ABS - Non-Agency RMBS $ 4,000 $ 2,410 $ (1,521 ) $ 889 $ 1,347 $ — $ 2,236 1 CCC 1.63 % 22.61 % 7.5 31.4 % Total Securities, Available for Sale (E) $ 4,000 $ 2,410 $ (1,521 ) $ 889 $ 1,347 $ — $ 2,236 1 (A) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities. (B) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the lowest rating is used. Ratings provided were determined by third-party rating agencies, represent the most recent credit ratings available as of the reporting date and may not be current. (C) The weighted average life is based on the timing of expected cash flows on the assets. (D) Percentage of the outstanding face amount of securities and residual interests that is subordinate to the Company’s investments. (E) The total outstanding face amount was $4.0 million for floating rate securities. Unrealized losses that are considered other-than-temporary are recognized currently in earnings. During the nine months ended September 30, 2017 , the Company recorded other-than-temporary impairment charges (“OTTI”) of $0.6 million with respect to real estate securities (there was no other-than-temporary impairment recognized in other comprehensive income). Based on management’s analysis of the securities, the performance of the underlying loans and changes in market factors, the Company noted adverse changes in the expected cash flows on certain of these securities and concluded that they were other-than-temporarily impaired. Any remaining unrealized losses on the Company’s securities were primarily the result of changes in market factors, rather than issuer-specific credit impairment. The Company performed analyses in relation to such securities, using management’s best estimate of their cash flows, which support that the carrying values of such securities were fully recoverable over their expected holding period. The Company had no securities in an unrealized loss position as of September 30, 2017 . The Company has no activity related to credit losses on debt securities for the nine months ended September 30, 2017 . The table below summarizes the geographic distribution of the collateral securing the asset-backed securities (“ABS”) at September 30, 2017 : ABS - Non-Agency RMBS Geographic Location Outstanding Face Amount Percentage Western U.S. $ 1,277 31.9 % Northeastern U.S. 592 14.8 % Southeastern U.S. 1,091 27.3 % Midwestern U.S. 426 10.6 % Southwestern U.S. 614 15.4 % $ 4,000 100.0 % Geographic concentrations of investments expose the Company to the potential risk of economic downturns within the relevant regions. Market conditions may make regions more vulnerable to downturns in certain market factors. Any such downturn in a region where the Company holds significant investments could have a material, negative impact on the Company. FNMA/FHLMC Agency Securities These government agency securities were sold under agreements to repurchase which are treated as collateralized financing transactions. Although being pledged as collateral, securities financed through a repurchase agreement remain on the Company's Consolidated Balance Sheets as an asset and cash received from the purchaser was recorded on the Company's Consolidated Balance Sheets as a liability. In March 2017, the Company sold $289.7 million face amount of agency FNMA/FHLMC fixed-rate securities at an average price of 98.8% of par for total proceeds of $286.1 million and recognized a loss on sale of securities of $2.8 million . The Company repaid $277.8 million of repurchase agreements associated with these securities. In August 2017, the Company sold $299.5 million face amount of agency FNMA/FHLMC fixed-rate securities at an average price of 103.2% of par for total proceeds of $309.0 million and recognized a gain on sale of securities of $2.3 million . The Company repaid $302.1 million of repurchase agreements associated with these securities. |
REAL ESTATE RELATED AND OTHER L
REAL ESTATE RELATED AND OTHER LOANS AND RESIDENTIAL MORTGAGE LOANS | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
REAL ESTATE RELATED AND OTHER LOANS AND RESIDENTIAL MORTGAGE LOANS | REAL ESTATE RELATED AND OTHER LOANS AND RESIDENTIAL MORTGAGE LOANS Loans are accounted for based on management’s strategy for the loan, and on whether the loan was credit-impaired at the date of acquisition. Loans acquired with the intent to sell are classified as held-for-sale. The following is a summary of real estate related and other loans and residential mortgage loans at September 30, 2017 . The loans contain various terms including fixed and floating rates. They are generally subject to prepayment. September 30, 2017 Loan Type Outstanding Carrying Loan Weighted Weighted Average Coupon Weighted Average Life Floating Rate Loans as % of Face Amount Delinquent Face Amount (B) Mezzanine Loans $ 17,767 $ — 2 — % 8.39 % 0.0 100.0 % $ 17,767 Corporate Loans 59,384 147 3 20.00 % 7.69 % 0.4 — % 59,384 Total Real Estate Related and other Loans Held-for-Sale, Net (C) $ 77,151 $ 147 5 20.00 % 7.85 % 0.3 23.0 % $ 77,151 (A) The weighted average maturity is based on the timing of expected cash flows on the assets. (B) Includes loans that are 60 days or more past due (including loans that are in foreclosure and borrowers in bankruptcy) or considered real estate owned (“REO”). As of September 30, 2017 , $77.2 million face amount of real estate related and other loans was in non-accrual status. (C) Real estate related and other loans held-for-sale, net is recorded in other current assets on the Consolidated Balance Sheets. Activities relating to the carrying value of the Company’s real estate related and other loans and residential mortgage loans are as follows: Held-for-Sale Real Estate Related and Other Loans (A) Residential Mortgage Loans (A) Balance at December 31, 2016 $ 55,612 $ 231 Purchases / additional fundings — — Interest accrued to principal balance 8,458 — Settlements (69,455 ) (183 ) Valuation allowance on loans — (60 ) Accretion of loan discount and other amortization 5,532 — Gain on settlement of loans — 12 Balance at September 30, 2017 $ 147 $ — (A) Recorded in other current assets on the Consolidated Balance Sheets. The following is a rollforward of the related loss allowance: Held-For-Sale Real Estate Related and Other Loans Residential Mortgage Loans Balance at December 31, 2016 $ (74,691 ) $ (464 ) Charge-offs — 524 Valuation allowance on loans — (60 ) Balance at September 30, 2017 $ (74,691 ) $ — The table below summarizes the geographic distribution of real estate related and other loans and residential mortgage loans at September 30, 2017 : Real Estate Related and Other Loans Geographic Location Outstanding Face Amount Percentage Foreign 63,454 100.0 % $ 63,454 100.0 % Other (A) 13,697 Total $ 77,151 (A) Includes corporate loans which are not directly secured by real estate assets. In August 2017, the Company received the final pay down on the resorts-related loan in the amount of $69.5 million including accrued interest. The Company recognized discount accretion of $5.5 million as part of the payoff, recorded in interest and investment income on the Consolidated Statements of Operations. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company’s derivative instrument is an interest rate cap with a fair value of $0.2 million as of September 30, 2017 and is recorded within other assets on the Consolidated Balance Sheets. As of December 31, 2016 , derivative assets with a fair value of $0.4 million and $0.5 million were recorded within other current assets and other assets, respectively, on the Consolidated Balance Sheets. The Company had no derivative liabilities as of both September 30, 2017 and December 31, 2016 . The following table summarizes (gains) losses recorded in relation to derivatives: Three Months Ended September 30, Nine Months Ended September 30, Income Statement Location 2017 2016 2017 2016 Cash flow hedges Deferred hedge gain reclassified from AOCI into earnings Interest expense, net — — — (20 ) Non-hedge derivatives Unrealized loss on interest rate derivatives Realized and unrealized (gain) loss on investments $ 32 $ 15 $ 317 $ 34 Unrealized (gain) loss recognized related to TBAs Realized and unrealized (gain) loss on investments 1,770 (270 ) 371 1,668 Realized loss on settlement of TBAs Realized and unrealized (gain) loss on investments 228 3,730 4,669 13,675 As of both September 30, 2017 and December 31, 2016 , the Company had no expected reclassification of deferred hedges from AOCI into earnings over the next 12 months. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair Value Summary Table The following table summarizes the carrying values and estimated fair values of the Company’s financial instruments at September 30, 2017 : Carrying Estimated Fair Value Method (A) Assets Real estate securities, available-for-sale $ 2,236 $ 2,236 Pricing models Real estate related and other loans, held-for-sale, net (B) 147 147 Pricing models Cash and cash equivalents 182,371 182,371 Restricted cash, current and noncurrent 6,036 6,036 Non-hedge derivative assets (C) 167 167 Counterparty quotations Liabilities Credit facilities - Traditional Golf term loan 99,606 103,028 Pricing models Junior subordinated notes payable 51,210 26,595 Pricing models (A) Internal pricing models are used for (i) real estate securities and loans that are not traded in an active market, and, therefore, have little or no price transparency, and for which significant unobservable inputs must be used in estimating fair value, or (ii) debt obligations which are private and untraded. (B) Real estate related and other loans held-for-sale, net are recorded in other current assets on the Consolidated Balance Sheets. (C) Represents an interest rate cap (Note 9). Fair Value Measurements Valuation Hierarchy The fair value of financial instruments is categorized based on the priority of the inputs to the valuation technique and categorized into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Company follows this hierarchy for its financial instruments measured at fair value. Level 1 - Quoted prices in active markets for identical instruments. Level 2 - Valuations based principally on observable market parameters, including • quoted prices for similar assets or liabilities in active markets, • inputs other than quoted prices that are observable for the asset or liability (such as interest rates and yield curves observable at commonly quoted intervals, implied volatilities and credit spreads), and • market corroborated inputs (derived principally from or corroborated by observable market data). Level 3 - Valuations determined using unobservable inputs that are supported by little or no market activity, and that are significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using non-binding market quotations, pricing models, discounted cash flow methodologies, or similar techniques where significant inputs are unobservable, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Fair value may be based upon broker quotations, counterparty quotations or pricing services quotations, which provide valuation estimates based upon reasonable market order indications or management’s good faith estimate, and are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity. A significant portion of the Company’s real estate securities and loans, and debt obligations are currently not traded in active markets and therefore have little or no price transparency. As a result, the Company has estimated the fair value of these illiquid instruments based on internal pricing models subject to the Company’s controls described below. The Company has various processes and controls in place to ensure that fair value measurements are reasonably estimated. With respect to broker and pricing service quotations, and in order to ensure these quotes represent a reasonable estimate of fair value, The Company’s quarterly procedures include a comparison of such quotations to quotations from different sources, outputs generated from its internal pricing models and transactions completed, as well as on its knowledge and experience of these markets. With respect to fair value estimates generated based on the Company’s internal pricing models, the Company’s management validates the inputs and outputs of the internal pricing models by comparing them to available independent third-party market parameters and models, where available, for reasonableness. The Company believes its valuation methods and the assumptions used are appropriate and consistent with other market participants. Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodology used to determine fair value and such changes could result in a significant increase or decrease in the fair value. For the Company’s investments in real estate securities and loans categorized within Level 3 of the fair value hierarchy, the significant unobservable inputs include the discount rates, assumptions relating to prepayments, default rates and loss severities. Recurring Fair Value Measurements - Real Estate Securities and Derivatives The following table summarizes financial assets and liabilities measured at fair value on a recurring basis at September 30, 2017 : Fair Value Carrying Value Level 2 Level 3 Total Market Quotations (Observable) Market Quotations (Unobservable) Internal Pricing Models Assets Real estate securities, available-for-sale: ABS - Non-Agency RMBS $ 2,236 $ — $ — $ 2,236 $ 2,236 Real estate securities, available-for-sale total $ 2,236 $ — $ — $ 2,236 $ 2,236 Derivative assets: Interest rate cap, not treated as hedge $ 167 $ 167 $ — $ — $ 167 Derivative assets total $ 167 $ 167 $ — $ — $ 167 Significant Unobservable Inputs The following table provides quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of September 30, 2017 : Weighted Average Significant Input Asset Type Amortized Cost Basis Fair Value Discount Prepayment Cumulative Default Rate Loss ABS - Non-Agency RMBS $ 889 $ 2,236 12.0 % 4.0 % 3.2 % 71.3 % Total $ 889 $ 2,236 All of the inputs used have some degree of market observability, based on the Company’s knowledge of the market, relationships with market participants, and use of common market data sources. Collateral prepayment, default and loss severity projections are in the form of “curves” or “vectors” that vary for each monthly collateral cash flow projection. Methods used to develop these projections vary by asset class but conform to industry conventions. The Company uses assumptions that generate its best estimate of future cash flows of each respective security. The discount rates the Company uses are derived from a range of observable pricing on securities backed by similar collateral and offered in a live market. As the markets in which the Company transacts have become less liquid, the Company has had to rely on fewer data points in this analysis. Default rates are determined from the current “pipeline” of loans that are more than 90 days delinquent, in foreclosure, or are REO. These significantly delinquent loans determine the first 24 months of the default vector. Beyond month 24, the default vector transitions to a steady-state value that is generally equal to or greater than that given by the widely published investment bank model. The prepayment speed vector specifies the percentage of the collateral balance that is expected to voluntarily pay off at each point in the future. The prepayment speed vector is based on projections from a widely published investment bank model which considers factors such as collateral FICO score, loan-to-value ratio, debt-to-income ratio, and vintage on a loan-level basis. This vector is scaled up or down to match recent collateral-specific prepayment experience, as obtained from remittance reports and market data services. Loss severities are based on recent collateral-specific experience with additional consideration given to collateral characteristics. Collateral age is taken into consideration because severities tend to initially increase with collateral age before eventually stabilizing. The Company typically uses projected severities that are higher than the historic experience for collateral that is relatively new to account for this effect. Collateral characteristics such as loan size, lien position, and location (state) also affect loss severity. The Company considers whether a collateral pool has experienced a significant change in its composition with respect to these factors when assigning severity projections. Real estate securities measured at fair value on a recurring basis using Level 3 inputs changed during the nine months ended September 30, 2017 as follows: ABS - Non-Agency RMBS Balance at December 31, 2016 $ 1,950 Total gains (losses) (A) Included in other comprehensive income (loss) 179 Amortization included in interest income 144 Purchases, sales and repayments (A) Proceeds (37 ) Balance at September 30, 2017 $ 2,236 (A) None of the gains (losses) recorded in earnings during the period are attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting dates. There were no purchases or sales during the nine months ended September 30, 2017 . There were no transfers into or out of Level 3 during the nine months ended September 30, 2017 . Non-Recurring Fair Value Measurements - Loans Loans which the Company does not have the ability or intent to hold into the foreseeable future are classified as held-for-sale. Held-for-sale loans are carried at the lower of amortized cost or fair value and are therefore recorded at fair value on a non-recurring basis. These loans were written down to fair value at the time of the impairment, based on internal pricing models. All the loans were within Level 3 of the fair value hierarchy. For real estate related and other loans, the most significant inputs used in the valuations are the amount and timing of expected future cash flows, market yields and the estimated collateral value of such loan investments. Liabilities for Which Fair Value is Only Disclosed The following table summarizes the level of the fair value hierarchy, valuation techniques and inputs used for estimating each class of liabilities not measured at fair value in the statement of financial position but for which fair value is disclosed: Type of Liabilities Not Measured At Fair Value for Which Fair Value Is Disclosed Fair Value Hierarchy Valuation Techniques and Significant Inputs Credit facilities Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields Junior subordinated notes payable Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields and the credit spread of the Company |
EQUITY AND EARNINGS PER SHARE
EQUITY AND EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
EQUITY AND EARNINGS PER SHARE | EQUITY AND EARNINGS PER SHARE A. Equity The following is a summary of the changes in the Company’s outstanding options for the nine months ended September 30, 2017 : Number of Options Weighted Average Strike Price Weighted Average Life Remaining (in years) Balance at December 31, 2016 5,126,906 $ 2.79 Expired (116,330 ) 13.13 Balance at September 30, 2017 5,010,576 $ 2.55 5.84 Exercisable at September 30, 2017 3,858,081 $ 2.58 5.86 As of September 30, 2017 , the Company’s outstanding options were summarized as follows: Issued in 2011 and thereafter Held by the Manager 3,857,748 Issued to the Manager and subsequently transferred to certain of the Manager’s employees 1,152,495 Issued to the independent directors 333 Total 5,010,576 Weighted average strike price $ 2.55 On February 27, 2017 , the Company declared dividends of $0.609375 , $0.503125 and $0.523438 per share on the 9.750% Series B, 8.050% Series C and 8.375% Series D preferred stock, respectively, for the period beginning February 1, 2017 and ending April 30, 2017. Dividends totaling $1.4 million were paid on April 28, 2017 . On May 4, 2017 , the Company declared dividends of $0.609375 , $0.503125 and $0.523438 per share on the 9.750% Series B, 8.050% Series C and 8.375% Series D preferred stock, respectively, for the period beginning May 1, 2017 and ending July 31, 2017. Dividends totaling $1.4 million were paid on July 31, 2017 . On August 1, 2017 , the Company declared dividends of $0.609375 , $0.503125 , $0.523438 per share on the 9.750% Series B, 8.050% Series C and 8.375% Series D preferred stock, respectively, for the period beginning August 1, 2017 and ending October 31, 2017. Dividends totaling $1.4 million were paid on October 31, 2017 . In January 2017, the Company issued a total of 18,074 shares of its common stock to its independent directors as a component of their annual compensation. In May 2017, the Company issued a total of 90,366 shares of its common stock to its independent directors as a component of their annual compensation. B. Earnings Per Share The Company is required to present both basic and diluted earnings per share (“EPS”). The following table shows the amounts used in computing basic and diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator for basic and diluted earnings per share: (Loss) Income from continuing operations after preferred dividends and noncontrolling interests $ (1,864 ) $ 18,923 $ (22,314 ) $ 92,598 (Loss) Income Applicable to Common Stockholders $ (1,864 ) $ 18,923 $ (22,314 ) $ 92,598 Denominator: Denominator for basic earnings per share - weighted average shares 66,932,744 66,730,583 66,883,291 66,688,962 Effect of dilutive securities Options — 2,342,093 — 2,064,570 Denominator for diluted earnings per share - adjusted weighted average shares 66,932,744 69,072,676 66,883,291 68,753,532 Basic earnings per share: (Loss) Income from continuing operations per share of common stock, after preferred dividends and noncontrolling interests $ (0.03 ) $ 0.28 $ (0.33 ) $ 1.39 (Loss) Income Applicable to Common Stock, per share $ (0.03 ) $ 0.28 $ (0.33 ) $ 1.39 Diluted earnings per share: (Loss) Income from continuing operations per share of common stock, after preferred dividends and noncontrolling interests $ (0.03 ) $ 0.27 $ (0.33 ) $ 1.35 (Loss) Income Applicable to Common Stock, per share $ (0.03 ) $ 0.27 $ (0.33 ) $ 1.35 Basic EPS is calculated by dividing (loss) income applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted EPS is calculated by dividing (loss) income applicable to common stockholders by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period. The Company’s common stock equivalents are its outstanding stock options. During the three and nine months ended September 30, 2017 , the Company had 566,894 and 269,311 antidilutive options, respectively. During the three and nine months ended September 30, 2016 , the Company had 267,706 and 335,725 antidilutive options, respectively. During the three and nine months ended September 30, 2017 , based on the treasury stock method, the Company had 1,180,858 and 1,556,898 potentially dilutive common stock equivalents, respectively, which were excluded due to the Company's loss position. During the three and nine months ended September 30, 2016 , based on the treasury stock method, the Company had 2,342,093 and 2,064,570 dilutive common stock equivalents, respectively, resulting from its outstanding options. Income (loss) applicable to common stockholders is equal to net income (loss) less preferred dividends and net income (loss) attributable to noncontrolling interest. |
TRANSACTIONS WITH AFFILIATES AN
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | 9 Months Ended |
Sep. 30, 2017 | |
Transactions With Affiliates And Affiliated Entity [Abstract] | |
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES Management Agreement The Company is party to a Management Agreement with FIG LLC, its Manager and an affiliate of Fortress Investment Group LLC (“Fortress”), which provides for automatically renewing one -year terms subject to certain termination rights. The Manager’s performance is reviewed annually and the Management Agreement may be terminated by the Company by payment of a termination fee, as defined in the Management Agreement, equal to the amount of management fees earned by the Manager during the 12 consecutive calendar months immediately preceding the termination, upon the affirmative vote of at least two-thirds of the independent directors, or by a majority vote of the holders of common stock. Pursuant to the Management Agreement, the Manager provides for a management team and other professionals who are responsible for implementing our business strategy, subject to the supervision of our board of directors. Our Manager is responsible for, among other things, (i) setting investment criteria in accordance with broad investment guidelines adopted by our board of directors, (ii) sourcing, analyzing and executing acquisitions, (iii) providing financial and accounting management services and (iv) performing other duties as specified in the Management Agreement. For performing these services, the Company pays the Manager an annual management fee equal to 1.5% of the gross equity of the Company, as defined, including adjustments for return of capital dividends. The Management Agreement provides that the Company will reimburse the Manager for various expenses incurred by the Manager or its officers, employees and agents on the Company’s behalf, including costs of legal, accounting, tax, auditing, administrative and other similar services rendered for the Company by providers retained by the Manager or, if provided by the Manager’s employees, in amounts which are no greater than those which would be payable to outside professionals or consultants engaged to perform such services pursuant to agreements negotiated on an arm’s-length basis. In addition to expense reimbursements for expenses incurred by the Manager, the Company is responsible for reimbursing the Manager for certain expenses incurred by the Company that are initially paid by the Manager on behalf of the Company. To provide an incentive for the Manager to enhance the value of the common stock, the Manager is entitled to receive an incentive return (the “Incentive Compensation’’) on a cumulative, but not compounding, basis in an amount equal to the product of (A) 25% of the dollar amount by which (1) (a) the Funds from Operations (defined as the net income applicable to common stockholders before Incentive Compensation, excluding extraordinary items, plus depreciation of operating real estate and after adjustments for unconsolidated subsidiaries, if any) of the Company per share of common stock (based on the weighted average number of shares of common stock outstanding) plus (b) gains (or losses) from debt restructuring and from sales of property and other assets per share of common stock (based on the weighted average number of shares of common stock outstanding), exceed (2) an amount equal to (a) the weighted average of the price per share of common stock in the initial public offering (“IPO”) and the value attributed to the net assets transferred to the Company by its predecessor, and in any subsequent offerings by the Company (adjusted for prior return of capital dividends or capital distributions) multiplied by (b) a simple interest rate of 10% per annum (divided by four to adjust for quarterly calculations) multiplied by (B) the weighted average number of shares of common stock outstanding. Amounts incurred under the Management Agreement Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Management fees $ 2,553 $ 2,551 $ 7,657 $ 7,652 Expense reimbursement to the Manager 125 125 375 375 Incentive compensation — — — — Total Management fee to affiliate $ 2,678 $ 2,676 $ 8,032 $ 8,027 At September 30, 2017 , Fortress, through its affiliates, and principals of Fortress, owned 5.1 million shares of the Company’s common stock and Fortress, through its affiliates, had options relating to an additional 3.9 million shares of the Company’s common stock (Note 11). At both September 30, 2017 and December 31, 2016 , due to affiliates was comprised of $0.9 million in management fees and expense reimbursements payable to the Manager. Other Affiliated Entities In April 2006, the Company securitized Subprime Portfolio I and, through Securitization Trust 2006, entered into a servicing agreement with a subprime home equity mortgage lender (the “Subprime Servicer”) to service this portfolio. In July 2006, private equity funds managed by an affiliate of the Company’s Manager completed the acquisition of the Subprime Servicer. As compensation under the servicing agreement, the Subprime Servicer receives, on a monthly basis, a net servicing fee equal to 0.5% per annum on the unpaid principal balance of the portfolio. In March 2007, through Securitization Trust 2007, the Company entered into a servicing agreement with the Subprime Servicer to service Subprime Portfolio II under substantially the same terms. At September 30, 2017 , the outstanding unpaid principal balances of Subprime Portfolios I and II were approximately $209.0 million and $315.6 million , respectively. The Company received negligible cash inflows from the retained interests of Subprime Portfolios I and II during the three and nine months ended September 30, 2017 and 2016 . The Company's exposure to loss is solely limited to the carrying amount of the residual interests and retained bonds which are issued by Subprime Portfolios I and II. In April 2010, the Company, through two of its CDOs, made a cash investment of $75.0 million in the resorts-related loan to a portfolio company of a private equity fund managed by an affiliate of the Company’s Manager through July 31, 2017. The Company’s chairman was a director of and had an indirect ownership interest in the borrower. This investment improved the applicable CDOs’ results under some of their respective tests, and yielded approximately 22.5% . In September 2016, the Company received a $109.9 million pay down on the loan. In August 2017, the Company received the final pay down of the loan in the amount of $69.5 million (see Note 8). The Company earned approximately $6.9 million and $14.0 million of income on investments issued by affiliates of the Manager for the three and nine months ended September 30, 2017 , respectively, and $19.7 million and $36.2 million of income on investments issued by affiliates of the Manager for the three and nine months ended September 30, 2016 , respectively. The income on investments includes recognition of discount accretion for the three and nine months ended September 30, 2017 and 2016 . In each instance described above, affiliates of the Company’s Manager have an investment in the applicable affiliated fund and receive from the fund, in addition to management fees, incentive compensation if the fund’s aggregate investment returns exceed certain thresholds. A principal of the Manager owned or leased aircraft that the Company chartered from a third-party aircraft operator for business purposes in the course of operations. The Company paid the aircraft operator market rates for the charters. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation - The Company is and may become, from time to time, involved in legal actions in the ordinary course of business, including governmental and administrative investigations, inquiries and proceedings concerning employment, labor, environmental and other claims. Although management is unable to predict with certainty the eventual outcome of any legal action, management believes the ultimate liability arising from such actions, individually and in the aggregate, which existed at September 30, 2017 , will not materially affect the Company’s consolidated results of operations, financial position or cash flow. Given the inherent unpredictability of these types of proceedings, however, it is possible that future adverse outcomes could have a material effect on our financial results. Commitments - In 2016, the Company entered into a ground lease in Orlando, Florida. During June 2017, the Company committed to the lease as there were no remaining material contingencies under the terms of the lease. The initial lease term is 20 years and includes three 5 -year renewal options. Contingencies - In September 2017, Hurricane Irma caused significant damage to a Traditional Golf property in Florida, including damage to trees, bunkers and other landscaping. The three golf courses at this property were closed immediately and are expected to reopen prior to December 31, 2017. The property is insured for property damage and business interruption losses related to such events, subject to deductibles and policy limits. The Company is currently unable to estimate the future financial impact of the hurricane damage as the repair costs and potential insurance proceeds are still being assessed. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes consists of the following: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Current: Federal $ (2 ) $ (37 ) $ 1,047 $ 27 State and Local — (1 ) — 20 Total Current (Benefit) Provision $ (2 ) $ (38 ) $ 1,047 $ 47 Deferred: Federal $ — $ — $ — $ 83 State and Local — — — 14 Total Deferred Provision $ — $ — $ — $ 97 Total (Benefit) Provision for Income Taxes $ (2 ) $ (38 ) $ 1,047 $ 144 On February 23, 2017, the Company revoked its election to be treated as a REIT effective January 1, 2017. The Company operated in a manner intended to qualify as a REIT for federal income tax purposes through December 31, 2016. The change in tax status has had no effect on the Company’s Consolidated Financial Statements as the corresponding net deferred tax asset created as a result of the tax status change has been fully offset with a valuation allowance. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of September 30, 2017 are presented below: September 30, 2017 December 31, 2016 Deferred tax assets: Allowance for loan losses $ 379 $ 358 Depreciation and amortization 39,804 38,598 Accrued expenses 2,285 2,885 Interest 6,391 16,503 Net operating losses 151,107 162,629 Capital losses 9,241 — Other 3,151 2,036 Total deferred tax assets 212,358 223,009 Less valuation allowance (152,288 ) (133,192 ) Net deferred tax assets $ 60,070 $ 89,817 Deferred tax liabilities: Leaseholds 12,780 13,681 Cancellation of debt 47,290 75,632 Other — 504 Total deferred tax liabilities $ 60,070 $ 89,817 Net deferred tax assets $ — $ — In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. The Company recorded a valuation allowance against its deferred tax assets as of September 30, 2017 as management does not believe that it is more likely than not that the deferred tax assets will be realized. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS These Consolidated Financial Statements include a discussion of material events, if any, that have occurred subsequent to September 30, 2017 through the issuance of these Consolidated Financial Statements. On October 4, 2017, the Company issued an aggregate of 30,822 shares of its common stock to its independent directors as a component of their annual compensation. On October 31, 2017, the Company declared dividends of $0.609375 , $0.503125 and $0.523438 per share on the 9.750% Series B, 8.050% Series C and 8.375% Series D preferred stock, respectively, for the period beginning November 1, 2017 and ending January 31, 2018. Dividends totaling $1.4 million will be paid on January 31, 2018 to stockholders of record on January 2, 2018. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — The accompanying Consolidated Financial Statements and related notes of the Company have been prepared in accordance with accounting principles generally accepted in the United States for interim financial reporting and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted. In the opinion of management, all adjustments considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with the Company’s Consolidated Financial Statements for the year ended December 31, 2016 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 2, 2017. Capitalized terms used herein, and not otherwise defined, are defined in the Company’s Consolidated Financial Statements for the year ended December 31, 2016 . |
Reclassifications | Certain prior period amounts have been reclassified to conform to the current period’s presentation. In connection with the Company’s continued transformation from a financial services company to a leisure and entertainment company, including the announcement of the new management team in September 2016, the revocation of its REIT election effective January 1, 2017, as well as the monetization and planned exit of its real estate related debt positions, the Company’s Consolidated Statements of Operations were changed to reflect an operating company presentation in the fourth quarter of 2016. The Company has reclassified driving range revenue, including the monthly membership program offered at most of its public properties (“The Players Club’’) and miscellaneous revenue associated with operations from “Other revenue” to “Golf course operations.” The Company has reclassified expenses associated with the cost of merchandise sold from “Cost of sales - golf” to “Operating expenses.” The Company has added “Loan and security servicing expense” to “General and administrative expense.” The gains and losses associated with derivative instruments have been reclassified from “Other income (loss), net” to “Realized and unrealized (gain) loss on investments” to include balances as part of its operating income (loss). As of September 30, 2017 , the Company monetized and exited its significant real estate related debt positions, including the agency Fannie Mae/Freddie Mac (“FNMA/FHLMC’’) securities and received the final pay down on a corporate loan (“the resorts-related loan”). As such, the Company's Consolidated Balance Sheets have been revised to a classified balance sheet presentation, consistent with an operating company presentation, and certain prior period amounts have been reclassified to conform to the current period’s presentation. The Company has reclassified assets reasonably expected to be realized in cash during the normal operating cycle of the business as current assets and current liabilities are obligations whose liquidation is reasonably expected to require the use of existing resources properly classified as current assets. The Company has reclassified “Real estate securities, available-for-sale - pledged as collateral’’ to “Real estate securities, available-for-sale’’ given the substantial monetization of the available-for-sale securities. The Company reclassified “Real estate related and other loans, held-for-sale, net’’ and “Receivables from brokers, dealers and clearing organizations’’ to “Other current assets.” “Investments in real estate, net of accumulated depreciation” was renamed as “Property and equipment, net of accumulated depreciation” under the operating company presentation. The Company has reclassified “Dividends payable” to be included in “Other current liabilities.” The change to a classified balance sheet and the related aforementioned reclassifications have been made to simplify financial reporting as the Company has substantially exited its real estate related debt positions. |
Golf Course Operations | Golf Course Operations — Revenue from green fees, cart rentals, merchandise sales and other operating activities (consisting primarily of range income, banquets and club amenities) are generally recognized at the time of sale, when services are rendered and collection is reasonably assured. Revenue from membership dues is recognized in the month earned. Membership dues received in advance are included in deferred revenue and recognized as revenue ratably over the appropriate period, which is generally twelve months or less. The membership dues are generally structured to cover the club operating costs and membership services. Private country club members generally pay an advance initiation fee deposit upon their acceptance as a member to the respective country club. Initiation fee deposits are refundable 30 years after the date of acceptance as a member. The difference between the initiation fee deposit paid by the member and the present value of the refund obligation is deferred and recognized into revenue in the Consolidated Statements of Operations on a straight-line basis over the expected life of an active membership, which is estimated to be seven years. The present value of the refund obligation is recorded as a membership deposit liability in the Consolidated Balance Sheets and accretes over a 30 -year nonrefundable term using the effective interest method. This accretion is recorded as interest expense in the Consolidated Statements of Operations. |
Operating Expenses | Operating Expenses — Operating expenses for Traditional Golf consist primarily of payroll, equipment and cart leases, utilities, repairs and maintenance, supplies, seed, soil and fertilizer, marketing and operating lease rent expense. Many of the Traditional Golf properties and related facilities are leased under long-term operating leases. In addition to minimum payments, certain leases require payment of the excess of various percentages of gross revenue or net operating income over the minimum rental payments. The leases generally require the payment of taxes assessed against the leased property and the cost of insurance and maintenance. The majority of lease terms range from 10 to 20 years , and typically, the leases contain renewal options. Certain leases include scheduled increases or decreases in minimum rental payments at various times during the term of the lease. These scheduled rent increases or decreases are recognized on a straight-line basis over the term of the lease. Increases result in an accrual, which is included in accounts payable and accrued expenses and other liabilities, and decreases result in a receivable, which is included in other current assets and other assets, for the amount by which the cumulative straight-line rent differs from the contractual cash rent. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities — All derivatives are recognized as either assets or liabilities on the balance sheet and measured at fair value. The Company reports the fair value of derivative instruments gross of cash paid or received pursuant to credit support agreements and fair value is reflected on a net counterparty basis when the Company believes a legal right of offset exists under an enforceable netting agreement. Changes in fair value are recorded in net income. Derivative transactions are entered into by the Company solely for risk management purposes in the ordinary course of business. As of September 30, 2017 , the Company has one interest rate cap with a fair value of $0.2 million which is not designated as a hedge. The Company transacts in the To Be Announced mortgage backed securities (“TBA”) market. TBA contracts are forward contracts to purchase mortgage-backed securities that will be issued by a U.S. government sponsored enterprise in the future. The Company primarily engages in TBA transactions for purposes of managing interest rate risk and market risk associated with the Agency residential mortgage backed securities (“RMBS”) investments which have exposure to interest rate and market risk volatility. The Company accounts for its TBA transactions as non-hedge instruments, with changes in market value recorded in the Consolidated Statements of Operations. As of September 30, 2017 , the Company did not hold TBA contracts following the sale of the remaining Agency RMBS (see Note 7). As of both September 30, 2017 and December 31, 2016 , the Company did not post margin related to TBA contracts. The Company’s derivative financial instruments contain credit risk to the extent that its bank counterparties may be unable to meet the terms of the agreements. The Company seeks to reduce such risk by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one party resulting from this type of credit risk is monitored. Management does not expect any material losses as a result of default by other parties. |
Property and Equipment, Net | Property and Equipment, Net — Real estate and related improvements are recorded at cost less accumulated depreciation. Costs that both materially add value to an asset and extend the useful life of an asset by more than a year are capitalized. With respect to golf course improvements (included in buildings and improvements), costs associated with original construction, significant replacements, permanent landscaping, sand traps, fairways, tee boxes or greens are capitalized. All other asset-related costs that do not meet these criteria, such as minor repairs and routine maintenance, are expensed as incurred. The Company capitalizes certain costs related to properties under development. Capitalization begins when the activities related to development have begun and ceases when activities are substantially complete and the asset is available for use. Capitalized costs include development, construction-related costs and interest expense. Long-lived assets to be disposed of by sale, which meet certain criteria, are reclassified to real estate held-for-sale and measured at the lower of their carrying amount or fair value less costs of sale. Real estate held-for-sale is recorded in other current assets on the Consolidated Balance Sheets. A disposal of a component of an entity or a group of components of an entity are reported in discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. Discontinued operations are retroactively reclassified to income (loss) from discontinued operations for all periods presented. Traditional Golf leases certain golf carts and other equipment that are classified as capital leases. The value of capital leases is recorded as an asset on the balance sheet, along with a liability related to the associated payments. Depreciation of capital lease assets is calculated using the straight-line method over the shorter of the estimated useful lives and the expected lease terms. The cost of equipment under capital leases is included in property and equipment in the Consolidated Balance Sheets. Payments under the leases are treated as reductions of the liability, with a portion being recorded as interest expense under the effective interest method. Depreciation is calculated using the straight-line method based on the following estimated useful lives: Buildings and improvements 10-30 years Capital leases - equipment 3-7 years Furniture, fixtures and equipment 3-7 years |
Intangibles, Net | Intangibles, Net — Intangible assets and liabilities relating to Traditional Golf consist primarily of leasehold advantages (disadvantages), management contracts and membership base. A leasehold advantage (disadvantage) exists to the Company when it pays a contracted rent that is below (above) market rents at the date of the transaction. The value of a leasehold advantage (disadvantage) is calculated based on the differential between market and contracted rent, which is tax effected and discounted to present value based on an after-tax discount rate corresponding to each golf property and is amortized over the term of the underlying lease agreement. The management contract intangible represents the Company’s golf course management contracts for both leased and managed properties. The management contract intangible for leased and managed properties is valued utilizing a discounted cash flow methodology under the income approach and is amortized over the term of the underlying lease or management agreements, respectively. The membership base intangible represents the Company’s relationship with its private country club members. The membership base intangible is valued using the multi-period excess earnings method under the income approach, and is amortized over the expected life of an active membership. Amortization of leasehold intangible assets and liabilities is included within operating expenses and amortization of all other intangible assets is included within depreciation and amortization in the Consolidated Statements of Operations. Amortization of all intangible assets is calculated using the straight-line method based on the following estimated useful lives: Trade name 30 years Leasehold intangibles 1-26 years Management contracts 1-26 years Internally-developed software 5 years Membership base 7 years |
Membership Deposit Liabilities | Membership Deposit Liabilities — Private country club members generally pay an advance initiation fee deposit upon their acceptance as a member to the respective country club. Initiation fee deposits are refundable 30 years after the date of acceptance as a member. The difference between the initiation fee deposit paid by the member and the present value of the refund obligation is deferred and recognized into Golf course operations revenue in the Consolidated Statements of Operations on a straight-line basis over the expected life of an active membership, which is estimated to be seven years. The present value of the refund obligation is recorded as a membership deposit liability in the Consolidated Balance Sheets and accretes over a 30 -year nonrefundable term using the effective interest method. This accretion is recorded as interest expense in the Consolidated Statements of Operations. |
Other Investments | Other Investments — The Company owns an approximately 22% economic interest in a limited liability company which owns preferred equity secured by a commercial real estate project. The Company accounts for this investment as an equity method investment. As of September 30, 2017 and December 31, 2016 , the carrying value of this investment was $20.6 million and $19.3 million , respectively. The Company evaluates its equity method investment for other-than-temporary impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. The evaluation of recoverability is based on management’s assessment of the financial condition and near term prospects of the commercial real estate project, the length of time and the extent to which the market value of the investment has been less than cost, availability and cost of financing, demand for space, competition for tenants, changes in market rental rates, and operating costs. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the values estimated by management in its recoverability analyses may not be realized, and actual losses or impairment may be realized in the future. |
Impairment of Real Estate and Finite-lived Intangible Assets | Impairment of Real Estate and Finite-lived Intangible Assets — The Company periodically reviews the carrying amounts of its long-lived assets, including real estate and finite-lived intangible assets, to determine whether current events or circumstances indicate that such carrying amounts may not be recoverable. The assessment of recoverability is based on management’s estimates by comparing the sum of the estimated undiscounted cash flows generated by the underlying asset, or other appropriate grouping of assets, to its carrying value to determine whether an impairment existed at its lowest level of identifiable cash flows. If the carrying amount of the asset is greater than the expected undiscounted cash flows to be generated by such asset, an impairment is recognized to the extent the carrying value of such asset exceeds its fair value. The Company generally measures fair value by considering sale prices for similar assets or by discounting estimated future cash flows using an appropriate discount rate. Assets to be disposed of are carried at the lower of their financial statement carrying amount or fair value less costs to sell. |
Investment in CDO Servicing Rights | Investments in CDO Servicing Rights — In February 2011, the Company, through one of its subsidiaries, purchased the management rights with respect to certain C-BASS Investment Management LLC (“C-BASS”) Collateralized Debt Obligations (“CDOs”) pursuant to a bankruptcy proceeding. The Company initially recorded the cost of acquiring the collateral management rights as a servicing asset and subsequently amortizes this asset in proportion to, and over the period of, estimated net servicing income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers (Topic 606) . The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which defers the effective date by one year. The standard will be effective for annual and interim periods beginning after December 15, 2017; however, all entities are allowed to adopt the standard as early as the original effective date (annual periods beginning after December 15, 2016). Entities have the option of using either a full retrospective or a modified approach to adopt the guidance. In March 2016, the FASB issued ASU 2016-08 Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations which clarifies how an entity should identify the unit of accounting for the principal versus agent evaluation and how to apply the control principle to certain types of arrangements. In April 2016, the FASB issued ASU 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarifies when a promised good or service is separately identifiable. In May 2016, the FASB issued ASU 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients which amends the new revenue recognition guidance on transition, collectibility, noncash consideration and the presentation of sales and other similar taxes. In December 2016, the FASB issued ASU 2016-20 Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers which amends the new revenue recognition guidance on performance obligations and 12 additional technical corrections and improvements. The Company is continuing to evaluate the potential impact of adopting this standard, and is in the process of reviewing customer contracts and revenue streams, identifying contractual provisions that may result in a change in the timing or the amount of revenue recognized. There are also certain considerations related to internal control over financial reporting that are associated with implementing the new guidance under Topic 606. The Company is currently evaluating its control framework for revenue recognition and identifying any changes that may need to be made in response to the new guidance. The Company expects to adopt the requirements of the new standard in the first quarter of 2018, and anticipates using the modified retrospective transition method. In January 2016, the FASB issued ASU 2016-01 Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . The standard addresses certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842) . The standard requires lessees to recognize most leases on the balance sheet and addresses certain aspects of lessor accounting. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and early adoption is permitted. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, with an option to use certain relief. The Company is evaluating potential impacts of adopting the standard. Upon initial qualitative evaluation, a key change upon adoption will be the balance sheet recognition of all leased assets and liabilities. The Company leases certain of its golf properties and equipment through operating leases which are not recognized on the balance sheet. The Company anticipates a right to use asset and a related lease liability will be recognized for these leases. In June 2016, the FASB issued ASU 2016-13 Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. The standard changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount under the other-than-temporary impairment model. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019 and early adoption is permitted for annual periods beginning after December 15, 2018. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments. The standard provides specific guidance over eight identified cash flow issues in order to reduce diversity in practice over the presentation and classification of certain types of cash receipts and cash payments. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and early adoption is permitted. Entities should apply the standard using a retrospective transition method to each period presented. The Company does not anticipate that the adoption of this standard will result in a material impact to the presentation of the Consolidated Statements of Cash Flows. In November 2016, the FASB issued ASU 2016-18 Statement of Cash Flows (Topic 230), Restricted Cash. The standard requires entities to show the changes in the total of cash, cash equivalents and restricted cash in the statement of cash flows and provide a reconciliation to the related line items in the balance sheet. The effective date of the standard will be for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 and early adoption is permitted. Entities will be required to apply the guidance retrospectively when adopted and provide the relevant disclosures in ASC 250 in the first interim and annual periods in which the guidance is adopted. The Company is currently evaluating the new guidance to determine the impact it may have on its Consolidated Financial Statements. In January 2017, the FASB issued ASU 2017-01 Business Combinations (Topic 805), Clarifying the Definition of a Business . The standard clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets of businesses. The effective date of the standard will be for interim and annual periods beginning after December 15, 2017 and early adoption is permitted. Entities will be required to apply the guidance on a prospective basis. The Company is currently evaluating the impact that this update will have on its Consolidated Financial Statements and related disclosures. The FASB has recently issued or discussed a number of proposed standards on topics such as financial statement presentation and financial instruments. Some of the proposed changes are significant and could have a material impact on the Company’s reporting. The Company has not yet fully evaluated the potential impact of these proposals, but will make such an evaluation as the standards are finalized. |
Segment Reporting | SEGMENT REPORTING The Company currently has four reportable segments: (i) Traditional Golf properties, (ii) Entertainment Golf venues, (iii) Debt Investments, and (iv) corporate. The Company's Traditional Golf business is one of the largest owners and operators of golf properties in the United States. As of September 30, 2017 , the Company owned, leased or managed 77 Traditional Golf properties across 13 states. Additionally, the Company plans to open a chain of next-generation Entertainment Golf venues across the United States and internationally, which combine golf, competition, dining and fun. The Debt Investment segment consists primarily of loans and securities which the Company has substantially monetized as part of its transformation to a leisure and entertainment company. The corporate segment consists primarily of interest income on short-term investments, general and administrative expenses, interest expense on the junior subordinated notes payable (Note 6), management fees pursuant to the Management Agreement (Note 12) and income tax expense (Note 14). Segment information for previously reported periods has been reclassified to conform to the change to the reportable segments in the fourth quarter of 2016. |
Fair Value Measurements | Significant Unobservable Inputs The following table provides quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of September 30, 2017 : Weighted Average Significant Input Asset Type Amortized Cost Basis Fair Value Discount Prepayment Cumulative Default Rate Loss ABS - Non-Agency RMBS $ 889 $ 2,236 12.0 % 4.0 % 3.2 % 71.3 % Total $ 889 $ 2,236 All of the inputs used have some degree of market observability, based on the Company’s knowledge of the market, relationships with market participants, and use of common market data sources. Collateral prepayment, default and loss severity projections are in the form of “curves” or “vectors” that vary for each monthly collateral cash flow projection. Methods used to develop these projections vary by asset class but conform to industry conventions. The Company uses assumptions that generate its best estimate of future cash flows of each respective security. The discount rates the Company uses are derived from a range of observable pricing on securities backed by similar collateral and offered in a live market. As the markets in which the Company transacts have become less liquid, the Company has had to rely on fewer data points in this analysis. Default rates are determined from the current “pipeline” of loans that are more than 90 days delinquent, in foreclosure, or are REO. These significantly delinquent loans determine the first 24 months of the default vector. Beyond month 24, the default vector transitions to a steady-state value that is generally equal to or greater than that given by the widely published investment bank model. The prepayment speed vector specifies the percentage of the collateral balance that is expected to voluntarily pay off at each point in the future. The prepayment speed vector is based on projections from a widely published investment bank model which considers factors such as collateral FICO score, loan-to-value ratio, debt-to-income ratio, and vintage on a loan-level basis. This vector is scaled up or down to match recent collateral-specific prepayment experience, as obtained from remittance reports and market data services. Loss severities are based on recent collateral-specific experience with additional consideration given to collateral characteristics. Collateral age is taken into consideration because severities tend to initially increase with collateral age before eventually stabilizing. The Company typically uses projected severities that are higher than the historic experience for collateral that is relatively new to account for this effect. Collateral characteristics such as loan size, lien position, and location (state) also affect loss severity. The Company considers whether a collateral pool has experienced a significant change in its composition with respect to these factors when assigning severity projections. Fair Value Measurements Valuation Hierarchy The fair value of financial instruments is categorized based on the priority of the inputs to the valuation technique and categorized into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The Company follows this hierarchy for its financial instruments measured at fair value. Level 1 - Quoted prices in active markets for identical instruments. Level 2 - Valuations based principally on observable market parameters, including • quoted prices for similar assets or liabilities in active markets, • inputs other than quoted prices that are observable for the asset or liability (such as interest rates and yield curves observable at commonly quoted intervals, implied volatilities and credit spreads), and • market corroborated inputs (derived principally from or corroborated by observable market data). Level 3 - Valuations determined using unobservable inputs that are supported by little or no market activity, and that are significant to the overall fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using non-binding market quotations, pricing models, discounted cash flow methodologies, or similar techniques where significant inputs are unobservable, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Fair value may be based upon broker quotations, counterparty quotations or pricing services quotations, which provide valuation estimates based upon reasonable market order indications or management’s good faith estimate, and are subject to significant variability based on market conditions, such as interest rates, credit spreads and market liquidity. A significant portion of the Company’s real estate securities and loans, and debt obligations are currently not traded in active markets and therefore have little or no price transparency. As a result, the Company has estimated the fair value of these illiquid instruments based on internal pricing models subject to the Company’s controls described below. The Company has various processes and controls in place to ensure that fair value measurements are reasonably estimated. With respect to broker and pricing service quotations, and in order to ensure these quotes represent a reasonable estimate of fair value, The Company’s quarterly procedures include a comparison of such quotations to quotations from different sources, outputs generated from its internal pricing models and transactions completed, as well as on its knowledge and experience of these markets. With respect to fair value estimates generated based on the Company’s internal pricing models, the Company’s management validates the inputs and outputs of the internal pricing models by comparing them to available independent third-party market parameters and models, where available, for reasonableness. The Company believes its valuation methods and the assumptions used are appropriate and consistent with other market participants. Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodology used to determine fair value and such changes could result in a significant increase or decrease in the fair value. For the Company’s investments in real estate securities and loans categorized within Level 3 of the fair value hierarchy, the significant unobservable inputs include the discount rates, assumptions relating to prepayments, default rates and loss severities. Liabilities for Which Fair Value is Only Disclosed The following table summarizes the level of the fair value hierarchy, valuation techniques and inputs used for estimating each class of liabilities not measured at fair value in the statement of financial position but for which fair value is disclosed: Type of Liabilities Not Measured At Fair Value for Which Fair Value Is Disclosed Fair Value Hierarchy Valuation Techniques and Significant Inputs Credit facilities Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields Junior subordinated notes payable Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields and the credit spread of the Company |
Earnings Per Share | Basic EPS is calculated by dividing (loss) income applicable to common stockholders by the weighted average number of shares of common stock outstanding during each period. Diluted EPS is calculated by dividing (loss) income applicable to common stockholders by the weighted average number of shares of common stock outstanding plus the additional dilutive effect of common stock equivalents during each period. The Company’s common stock equivalents are its outstanding stock options. |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Litigation - The Company is and may become, from time to time, involved in legal actions in the ordinary course of business, including governmental and administrative investigations, inquiries and proceedings concerning employment, labor, environmental and other claims. Although management is unable to predict with certainty the eventual outcome of any legal action, management believes the ultimate liability arising from such actions, individually and in the aggregate, which existed at September 30, 2017 , will not materially affect the Company’s consolidated results of operations, financial position or cash flow. Given the inherent unpredictability of these types of proceedings, however, it is possible that future adverse outcomes could have a material effect on our financial results. Commitments - In 2016, the Company entered into a ground lease in Orlando, Florida. During June 2017, the Company committed to the lease as there were no remaining material contingencies under the terms of the lease. The initial lease term is 20 years and includes three 5 -year renewal options. Contingencies - In September 2017, Hurricane Irma caused significant damage to a Traditional Golf property in Florida, including damage to trees, bunkers and other landscaping. The three golf courses at this property were closed immediately and are expected to reopen prior to December 31, 2017. The property is insured for property damage and business interruption losses related to such events, subject to deductibles and policy limits. The Company is currently unable to estimate the future financial impact of the hurricane damage as the repair costs and potential insurance proceeds are still being assessed. |
Income Taxes | In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences become deductible. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of realized/unrealized loss on investments and other income (loss), net | These items are comprised of the following: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (Gain) on settlement of real estate securities $ (2,345 ) $ (10,080 ) $ (2,345 ) $ (18,560 ) Loss on settlement of real estate securities — — 2,803 — Unrealized loss on securities, intent-to-sell — — 558 — (Gain) loss on settlement of loans held-for-sale — — (12 ) 47 Realized loss on settlement of TBAs, net 228 3,730 4,669 13,675 Unrealized loss (gain) on non-hedge derivative instruments 1,802 (255 ) 688 1,702 Realized and unrealized (gain) loss on investments $ (315 ) $ (6,605 ) $ 6,361 $ (3,136 ) (Loss) gain on lease modifications and terminations $ (1 ) $ 2 $ (161 ) $ (75 ) Loss on extinguishment of debt, net (145 ) (227 ) (327 ) (607 ) Collateral management fee income, net 92 119 341 481 Equity in earnings of equity method investees 387 384 1,149 1,129 (Loss) gain on disposal of long-lived assets (3 ) — 23 24 Other (loss) income (128 ) 227 (653 ) 387 Other income, net $ 202 $ 505 $ 372 $ 1,339 |
Schedule of reclassification from accumulated other comprehensive income into net (loss) income | The following table summarizes the amounts reclassified out of accumulated other comprehensive income into net income: Three Months Ended September 30, Nine Months Ended September 30, Accumulated Other Comprehensive Income ("AOCI") Components Income Statement Location 2017 2016 2017 2016 Net realized (gain) loss on securities: Impairment Impairment $ — $ — $ — $ 54 (Gain) on settlement of real estate securities Realized and unrealized (gain) loss on investments (2,345 ) (10,080 ) (2,345 ) (18,560 ) Realized (gain) on deconsolidation of CDO VI Gain on deconsolidation — — — (20,682 ) $ (2,345 ) $ (10,080 ) $ (2,345 ) $ (39,188 ) Net realized (gain) on derivatives designated as cash flow hedges: Amortization of deferred hedge (gain) Interest expense, net $ — $ — $ — $ (20 ) $ — $ — $ — $ (20 ) Total reclassifications $ (2,345 ) $ (10,080 ) $ (2,345 ) $ (39,208 ) |
Schedule of useful lives of property, plant, and equipment | Depreciation is calculated using the straight-line method based on the following estimated useful lives: Buildings and improvements 10-30 years Capital leases - equipment 3-7 years Furniture, fixtures and equipment 3-7 years |
Schedule of amortization period | Amortization of all intangible assets is calculated using the straight-line method based on the following estimated useful lives: Trade name 30 years Leasehold intangibles 1-26 years Management contracts 1-26 years Internally-developed software 5 years Membership base 7 years |
Schedule of other current assets | The following table summarizes the Company's other current assets: September 30, 2017 December 31, 2016 Real estate related and other loans, held-for-sale, net $ 147 $ 55,612 Prepaid expenses 3,428 3,580 Interest receivable — 1,697 Deposits 3,002 1,314 Inventory 5,003 4,496 Derivative assets — 371 Residential mortgage loans, held-for-sale, net — 231 Receivables from brokers, dealers and clearing organizations — 552 Miscellaneous assets, net (A) 10,960 10,834 $ 22,540 $ 78,687 (A) Includes one owned property in Annandale, New Jersey in the Traditional Golf segment classified as held-for-sale. The Company expects to close on this property within the next 12 months. |
Schedule of other assets | The following table summarizes the Company's other assets: September 30, 2017 December 31, 2016 Prepaid expenses $ 28 $ 74 Deposits 2,353 2,791 Derivative assets 167 485 Miscellaneous assets, net 5,885 4,097 $ 8,433 $ 7,447 |
Schedule of other current liabilities | The following table summarizes the Company's other current liabilities: September 30, 2017 December 31, 2016 Security deposits payable $ 7,939 $ 5,978 Accrued rent 2,289 1,930 Due to affiliates 893 892 Dividends payable 930 8,949 Miscellaneous liabilities 9,702 11,219 $ 21,753 $ 28,968 |
Schedule of other liabilities | The following table summarizes the Company's other liabilities: September 30, 2017 December 31, 2016 Security deposits payable $ 196 $ 95 Unfavorable leasehold interests 3,587 4,225 Accrued rent 1,004 683 Miscellaneous liabilities 937 1,059 $ 5,724 $ 6,062 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting | Summary financial data on the Company’s segments is given below, together with a reconciliation to the same data for the Company as a whole: Traditional Golf Entertainment Golf Debt Investments Corporate Total Nine Months Ended September 30, 2017 Revenues Golf course operations $ 168,969 $ — $ — $ — $ 168,969 Sales of food and beverages 53,223 — — — 53,223 Total revenues 222,192 — — — 222,192 Operating costs Operating expenses (A) 187,539 191 — — 187,730 Cost of sales - food and beverages 15,762 — — — 15,762 General and administrative expense 2,152 203 10 3,899 6,264 General and administrative expense - acquisition and transaction expenses (B) 558 4,122 — 171 4,851 Management fee to affiliate — — — 8,032 8,032 Depreciation and amortization 17,936 16 — — 17,952 Impairment — — 60 — 60 Realized and unrealized loss on investments 317 — 6,044 — 6,361 Total operating costs 224,264 4,532 6,114 12,102 247,012 Operating loss (2,072 ) (4,532 ) (6,114 ) (12,102 ) (24,820 ) Other income (expenses) Interest and investment income 114 — 22,137 450 22,701 Interest expense, net (C) (11,500 ) — (2,532 ) (1,303 ) (15,335 ) Other (loss) income, net (1,044 ) — 1,416 — 372 Total other income (expenses) (12,430 ) — 21,021 (853 ) 7,738 Income tax expense (D) — — — 1,047 1,047 Net (loss) income (14,502 ) (4,532 ) 14,907 (14,002 ) (18,129 ) Preferred dividends — — — (4,185 ) (4,185 ) (Loss) income applicable to common stockholders $ (14,502 ) $ (4,532 ) $ 14,907 $ (18,187 ) $ (22,314 ) Summary segment financial data (continued). Traditional Golf Entertainment Golf Debt Investments Corporate Total Three Months Ended September 30, 2017 Revenues Golf course operations $ 62,034 $ — $ — $ — $ 62,034 Sales of food and beverages 19,657 — — — 19,657 Total revenues 81,691 — — — 81,691 Operating costs Operating expenses (A) 67,244 141 — — 67,385 Cost of sales - food and beverages 5,721 — — — 5,721 General and administrative expense 708 60 10 1,619 2,397 General and administrative expense - acquisition and transaction expenses (B) 72 1,804 — 55 1,931 Management fee to affiliate — — — 2,678 2,678 Depreciation and amortization 6,171 16 — — 6,187 Impairment — — 28 — 28 Realized and unrealized loss (gain) on investments 32 — (347 ) — (315 ) Total operating costs 79,948 2,021 (309 ) 4,352 86,012 Operating income (loss) 1,743 (2,021 ) 309 (4,352 ) (4,321 ) Other income (expenses) Interest and investment income 42 — 8,085 291 8,418 Interest expense, net (C) (3,830 ) — (482 ) (458 ) (4,770 ) Other (loss) income, net (211 ) — 413 — 202 Total other income (expenses) (3,999 ) — 8,016 (167 ) 3,850 Income tax benefit (D) — — — (2 ) (2 ) Net (loss) income (2,256 ) (2,021 ) 8,325 (4,517 ) (469 ) Preferred dividends — — — (1,395 ) (1,395 ) (Loss) Income applicable to common stockholders $ (2,256 ) $ (2,021 ) $ 8,325 $ (5,912 ) $ (1,864 ) Traditional Golf Entertainment Golf Debt Investments (E) Corporate Total September 30, 2017 Total assets 319,356 19,882 23,514 173,363 536,115 Total liabilities 278,352 5,384 170 55,901 339,807 Preferred stock — — — 61,583 61,583 Equity attributable to common stockholders $ 41,004 $ 14,498 $ 23,344 $ 55,879 $ 134,725 Additions to property and equipment (including capital leases) during the nine months ended September 30, 2017 $ 15,178 $ 8,647 $ — $ — $ 23,825 Summary segment financial data (continued). Traditional Golf Entertainment Golf Debt Investments Corporate Total Nine Months Ended September 30, 2016 Revenues Golf course operations $ 174,718 $ — $ — $ — $ 174,718 Sales of food and beverages 55,086 — — — 55,086 Total revenues 229,804 — — — 229,804 Operating costs Operating expenses (A) 195,670 — — — 195,670 Cost of sales - food and beverages 17,139 — — — 17,139 General and administrative expense 2,207 5 70 5,602 7,884 General and administrative expense - acquisition and transaction expenses (B) 1,182 911 — 371 2,464 Management fee to affiliate — — — 8,027 8,027 Depreciation and amortization 19,250 — — — 19,250 Impairment — — 3,564 — 3,564 Realized and unrealized loss (gain) on investments 35 — (3,171 ) — (3,136 ) Total operating costs 235,483 916 463 14,000 250,862 Operating loss (5,679 ) (916 ) (463 ) (14,000 ) (21,058 ) Other income (expenses) Interest and investment income 94 — 73,661 15 73,770 Interest expense, net (C) (8,703 ) — (28,482 ) (1,904 ) (39,089 ) Gain on deconsolidation — — 82,130 — 82,130 Other (loss) income, net (272 ) — 1,611 — 1,339 Total other income (expenses) (8,881 ) — 128,920 (1,889 ) 118,150 Income tax expense 144 — — — 144 Net (loss) income (14,704 ) (916 ) 128,457 (15,889 ) 96,948 Preferred dividends — — — (4,185 ) (4,185 ) Net income attributable to noncontrolling interest (165 ) — — — (165 ) (Loss) income applicable to common stockholders $ (14,869 ) $ (916 ) $ 128,457 $ (20,074 ) $ 92,598 Summary segment financial data (continued). Traditional Golf Entertainment Golf Debt Investments Corporate Total Three Months Ended September 30, 2016 Revenues Golf course operations $ 63,249 $ — $ — $ — $ 63,249 Sales of food and beverages 19,913 — — — 19,913 Total revenues 83,162 — — — 83,162 Operating costs Operating expenses (A) 69,251 — — — 69,251 Cost of sales - food and beverages 6,026 — — — 6,026 General and administrative expense 662 3 32 1,936 2,633 General and administrative expense - acquisition and transaction expenses (B) 173 682 — 200 1,055 Management fee to affiliate — — — 2,676 2,676 Depreciation and amortization 6,735 — — — 6,735 Impairment — — 611 — 611 Realized and unrealized loss (gain) on investments 15 — (6,620 ) — (6,605 ) Total operating costs 82,862 685 (5,977 ) 4,812 82,382 Operating income (loss) 300 (685 ) 5,977 (4,812 ) 780 Other income (expenses) Interest and investment income 17 — 32,286 7 32,310 Interest expense, net (C) (3,340 ) — (9,405 ) (393 ) (13,138 ) Other income, net — — 505 — 505 Total other income (expenses) (3,323 ) — 23,386 (386 ) 19,677 Income tax benefit (38 ) — — — (38 ) Net (loss) income (2,985 ) (685 ) 29,363 (5,198 ) 20,495 Preferred dividends — — — (1,395 ) (1,395 ) Net income attributable to noncontrolling interest (177 ) — — — (177 ) (Loss) income applicable to common stockholders $ (3,162 ) $ (685 ) $ 29,363 $ (6,593 ) $ 18,923 (A) Operating expenses includes rental expenses recorded under operating leases for carts and equipment in the amount of $0.7 million and $2.3 million for the three and nine months ended September 30, 2017 , respectively, and $0.9 million and $2.9 million for the three and nine months ended September 30, 2016 , respectively. Operating expenses also includes amortization of favorable and unfavorable lease intangibles in the amount of $1.0 million and $3.1 million for the three and nine months ended September 30, 2017 , respectively, and $1.1 million and $3.4 million for the three and nine months ended September 30, 2016 , respectively. In addition, straight-line rent associated with our Entertainment Golf venues is included in operating expenses. (B) Acquisition and transaction expenses include costs related to completed and potential acquisitions and transactions which may include advisory, legal, accounting, valuation and other professional or consulting fees. Transaction expenses also include personnel and other costs which do not qualify for capitalization associated with the development of new Entertainment Golf venues. (C) Interest expense, net includes the accretion of membership deposit liabilities in the amount of $1.6 million and $4.8 million for the three and nine months ended September 30, 2017 , respectively, and $1.4 million and $4.3 million for the three and nine months ended September 30, 2016 , respectively. Interest expense is net of $0.1 million related to capitalized interest for Entertainment Golf for both the three and nine months ended September 30, 2017 . (D) Effective January 1, 2017, the Company revoked its election to be treated as a REIT. As a result, the Company is subject to U.S. federal corporate income tax and the provision for income taxes is recorded in the corporate segment. (E) Total assets in the Debt Investments segment includes an equity method investment in the amount of $20.6 million recorded in other investments on the Consolidated Balance Sheets. See Note 2 for additional information. |
PROPERTY AND EQUIPMENT, NET O26
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | The following table summarizes the Company’s property and equipment related to its Traditional and Entertainment Golf businesses: September 30, 2017 December 31, 2016 Gross Carrying Amount Accumulated Depreciation Net Carrying Value Gross Carrying Amount Accumulated Depreciation Net Carrying Value Land $ 84,319 $ — $ 84,319 $ 84,319 $ — $ 84,319 Buildings and improvements 151,489 (49,553 ) 101,936 144,690 (39,402 ) 105,288 Furniture, fixtures and equipment 32,874 (22,969 ) 9,905 29,132 (20,516 ) 8,616 Capital leases - equipment 24,284 (7,602 ) 16,682 20,844 (4,818 ) 16,026 Construction in progress 13,207 — 13,207 3,362 — 3,362 Total Property and Equipment $ 306,173 $ (80,124 ) $ 226,049 $ 282,347 $ (64,736 ) $ 217,611 |
INTANGIBLES, NET OF ACCUMULAT27
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | The following table summarizes the Company’s intangible assets related to the Traditional and Entertainment Golf businesses: September 30, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade name $ 700 $ (87 ) $ 613 $ 700 $ (70 ) $ 630 Leasehold intangibles (A) 48,107 (15,674 ) 32,433 48,107 (12,550 ) 35,557 Management contracts 35,111 (12,710 ) 22,401 35,207 (10,434 ) 24,773 Internally-developed software 800 (600 ) 200 800 (480 ) 320 Membership base 5,236 (2,805 ) 2,431 5,236 (2,244 ) 2,992 Nonamortizable liquor licenses 1,231 — 1,231 840 — 840 Total Intangibles $ 91,185 $ (31,876 ) $ 59,309 $ 90,890 $ (25,778 ) $ 65,112 (A) The amortization expense for leasehold intangibles is reported in operating expenses in the Consolidated Statements of Operations. |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations and related hedges | The following table presents certain information regarding the Company’s debt obligations at September 30, 2017 : Debt Obligation/Collateral Month Issued Outstanding Carrying Final Stated Maturity Weighted Weighted Average Weighted Average Life (Years) Face Amount of Credit Facilities and Capital Leases Traditional Golf term loan (C)(D) June 2016 102,000 99,606 Jul 2019 LIBOR+4.70% 7.92 % 1.7 102,000 Vineyard II Dec 1993 200 200 Dec 2043 2.20% 2.20 % 26.2 200 Capital leases (Equipment) Jun 2014 - Sep 2017 17,061 17,061 Sep 2018 - Dec 2022 3.00% to 16.16% 6.55 % 3.7 — 119,261 116,867 7.71 % 2.0 102,200 Less current portion of obligations under capital leases 4,484 4,484 Credit facilities and obligations under capital leases - noncurrent 114,777 112,383 Corporate Junior subordinated notes payable (E) Mar 2006 51,004 51,210 Apr 2035 LIBOR+2.25% 3.53 % 17.6 51,004 Total debt obligations $ 165,781 $ 163,593 6.44 % 6.7 $ 153,204 (A) Weighted average, including floating and fixed rate classes. (B) Including the effect of deferred financing costs. (C) The Traditional Golf term loan is collateralized by 22 golf properties. The carrying amount of the Traditional Golf term loan is reported net of amortized deferred financing costs of $2.4 million as of September 30, 2017 . (D) Interest rate based on 1 month LIBOR plus 4.70% with a LIBOR floor of 1.80% . At the time of closing, the Company purchased a co-terminus LIBOR interest rate cap of 1.80% . (E) Interest rate based on 3 month LIBOR plus 2.25% . |
Schedule of future minimum lease payments under capital leases | The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of September 30, 2017 are as follows: October 1, 2017 - December 31, 2017 $ 1,365 2018 5,464 2019 5,319 2020 4,039 2021 2,464 2022 662 Total minimum lease payments 19,313 Less: imputed interest (2,252 ) Present value of net minimum lease payments $ 17,061 |
REAL ESTATE SECURITIES (Tables)
REAL ESTATE SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of real estate securities holdings | The following is a summary of the Company’s real estate securities at September 30, 2017 , all of which are classified as available-for-sale and are, therefore, reported at fair value with changes in fair value recorded in other comprehensive income, except for securities that are other-than-temporarily impaired. September 30, 2017 Amortized Cost Basis Gross Unrealized Weighted Average Asset Type Outstanding Face Amount Before Impairment Other-Than- Temporary Impairment After Impairment Gains Losses Carrying Number of Securities Rating (B) Coupon Yield Life Principal Subordination (D) ABS - Non-Agency RMBS $ 4,000 $ 2,410 $ (1,521 ) $ 889 $ 1,347 $ — $ 2,236 1 CCC 1.63 % 22.61 % 7.5 31.4 % Total Securities, Available for Sale (E) $ 4,000 $ 2,410 $ (1,521 ) $ 889 $ 1,347 $ — $ 2,236 1 (A) See Note 10 regarding the estimation of fair value, which is equal to carrying value for all securities. (B) Represents the weighted average of the ratings of all securities in each asset type, expressed as an S&P equivalent rating. For each security rated by multiple rating agencies, the lowest rating is used. Ratings provided were determined by third-party rating agencies, represent the most recent credit ratings available as of the reporting date and may not be current. (C) The weighted average life is based on the timing of expected cash flows on the assets. (D) Percentage of the outstanding face amount of securities and residual interests that is subordinate to the Company’s investments. (E) The total outstanding face amount was $4.0 million for floating rate securities. |
Schedule of geographic distribution of collateral securing Drive Shack's ABS | The table below summarizes the geographic distribution of the collateral securing the asset-backed securities (“ABS”) at September 30, 2017 : ABS - Non-Agency RMBS Geographic Location Outstanding Face Amount Percentage Western U.S. $ 1,277 31.9 % Northeastern U.S. 592 14.8 % Southeastern U.S. 1,091 27.3 % Midwestern U.S. 426 10.6 % Southwestern U.S. 614 15.4 % $ 4,000 100.0 % |
REAL ESTATE RELATED AND OTHER30
REAL ESTATE RELATED AND OTHER LOANS AND RESIDENTIAL MORTGAGE LOANS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Schedule of real estate and other related loans, residential mortgage loans and subprime mortgage loans | The following is a summary of real estate related and other loans and residential mortgage loans at September 30, 2017 . The loans contain various terms including fixed and floating rates. They are generally subject to prepayment. September 30, 2017 Loan Type Outstanding Carrying Loan Weighted Weighted Average Coupon Weighted Average Life Floating Rate Loans as % of Face Amount Delinquent Face Amount (B) Mezzanine Loans $ 17,767 $ — 2 — % 8.39 % 0.0 100.0 % $ 17,767 Corporate Loans 59,384 147 3 20.00 % 7.69 % 0.4 — % 59,384 Total Real Estate Related and other Loans Held-for-Sale, Net (C) $ 77,151 $ 147 5 20.00 % 7.85 % 0.3 23.0 % $ 77,151 (A) The weighted average maturity is based on the timing of expected cash flows on the assets. (B) Includes loans that are 60 days or more past due (including loans that are in foreclosure and borrowers in bankruptcy) or considered real estate owned (“REO”). As of September 30, 2017 , $77.2 million face amount of real estate related and other loans was in non-accrual status. (C) Real estate related and other loans held-for-sale, net is recorded in other current assets on the Consolidated Balance Sheets. |
Schedule of activity in carrying value of real estate related and other loans and residential mortgage loans | Activities relating to the carrying value of the Company’s real estate related and other loans and residential mortgage loans are as follows: Held-for-Sale Real Estate Related and Other Loans (A) Residential Mortgage Loans (A) Balance at December 31, 2016 $ 55,612 $ 231 Purchases / additional fundings — — Interest accrued to principal balance 8,458 — Settlements (69,455 ) (183 ) Valuation allowance on loans — (60 ) Accretion of loan discount and other amortization 5,532 — Gain on settlement of loans — 12 Balance at September 30, 2017 $ 147 $ — (A) Recorded in other current assets on the Consolidated Balance Sheets. |
Rollforward of related loss allowance | The following is a rollforward of the related loss allowance: Held-For-Sale Real Estate Related and Other Loans Residential Mortgage Loans Balance at December 31, 2016 $ (74,691 ) $ (464 ) Charge-offs — 524 Valuation allowance on loans — (60 ) Balance at September 30, 2017 $ (74,691 ) $ — |
Schedule of geographic distribution of real estate related and other loans and residential mortgage loans | The table below summarizes the geographic distribution of real estate related and other loans and residential mortgage loans at September 30, 2017 : Real Estate Related and Other Loans Geographic Location Outstanding Face Amount Percentage Foreign 63,454 100.0 % $ 63,454 100.0 % Other (A) 13,697 Total $ 77,151 (A) Includes corporate loans which are not directly secured by real estate assets. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of (gains) recorded in relation to derivatives | The following table summarizes (gains) losses recorded in relation to derivatives: Three Months Ended September 30, Nine Months Ended September 30, Income Statement Location 2017 2016 2017 2016 Cash flow hedges Deferred hedge gain reclassified from AOCI into earnings Interest expense, net — — — (20 ) Non-hedge derivatives Unrealized loss on interest rate derivatives Realized and unrealized (gain) loss on investments $ 32 $ 15 $ 317 $ 34 Unrealized (gain) loss recognized related to TBAs Realized and unrealized (gain) loss on investments 1,770 (270 ) 371 1,668 Realized loss on settlement of TBAs Realized and unrealized (gain) loss on investments 228 3,730 4,669 13,675 |
FAIR VALUE OF FINANCIAL INSTR32
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying value and estimated fair value of assets and liabilities | The following table summarizes the carrying values and estimated fair values of the Company’s financial instruments at September 30, 2017 : Carrying Estimated Fair Value Method (A) Assets Real estate securities, available-for-sale $ 2,236 $ 2,236 Pricing models Real estate related and other loans, held-for-sale, net (B) 147 147 Pricing models Cash and cash equivalents 182,371 182,371 Restricted cash, current and noncurrent 6,036 6,036 Non-hedge derivative assets (C) 167 167 Counterparty quotations Liabilities Credit facilities - Traditional Golf term loan 99,606 103,028 Pricing models Junior subordinated notes payable 51,210 26,595 Pricing models (A) Internal pricing models are used for (i) real estate securities and loans that are not traded in an active market, and, therefore, have little or no price transparency, and for which significant unobservable inputs must be used in estimating fair value, or (ii) debt obligations which are private and untraded. (B) Real estate related and other loans held-for-sale, net are recorded in other current assets on the Consolidated Balance Sheets. (C) Represents an interest rate cap (Note 9). |
Schedule of assets and liabilities measured at fair value on a recurring basis | The following table summarizes financial assets and liabilities measured at fair value on a recurring basis at September 30, 2017 : Fair Value Carrying Value Level 2 Level 3 Total Market Quotations (Observable) Market Quotations (Unobservable) Internal Pricing Models Assets Real estate securities, available-for-sale: ABS - Non-Agency RMBS $ 2,236 $ — $ — $ 2,236 $ 2,236 Real estate securities, available-for-sale total $ 2,236 $ — $ — $ 2,236 $ 2,236 Derivative assets: Interest rate cap, not treated as hedge $ 167 $ 167 $ — $ — $ 167 Derivative assets total $ 167 $ 167 $ — $ — $ 167 |
Schedule of quantitative information regarding significant unobservable inputs | The following table provides quantitative information regarding the significant unobservable inputs used by the Company for assets and liabilities measured at fair value on a recurring basis as of September 30, 2017 : Weighted Average Significant Input Asset Type Amortized Cost Basis Fair Value Discount Prepayment Cumulative Default Rate Loss ABS - Non-Agency RMBS $ 889 $ 2,236 12.0 % 4.0 % 3.2 % 71.3 % Total $ 889 $ 2,236 |
Schedule of change in fair value of Level 3 investments | Real estate securities measured at fair value on a recurring basis using Level 3 inputs changed during the nine months ended September 30, 2017 as follows: ABS - Non-Agency RMBS Balance at December 31, 2016 $ 1,950 Total gains (losses) (A) Included in other comprehensive income (loss) 179 Amortization included in interest income 144 Purchases, sales and repayments (A) Proceeds (37 ) Balance at September 30, 2017 $ 2,236 (A) None of the gains (losses) recorded in earnings during the period are attributable to the change in unrealized gains (losses) relating to Level 3 assets still held at the reporting dates. There were no purchases or sales during the nine months ended September 30, 2017 . There were no transfers into or out of Level 3 during the nine months ended September 30, 2017 . |
Liabilities for which fair value is only disclosed | The following table summarizes the level of the fair value hierarchy, valuation techniques and inputs used for estimating each class of liabilities not measured at fair value in the statement of financial position but for which fair value is disclosed: Type of Liabilities Not Measured At Fair Value for Which Fair Value Is Disclosed Fair Value Hierarchy Valuation Techniques and Significant Inputs Credit facilities Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields Junior subordinated notes payable Level 3 Valuation technique is based on discounted cash flows. Significant inputs include: l Amount and timing of expected future cash flows l Interest rates l Market yields and the credit spread of the Company |
EQUITY AND EARNINGS PER SHARE (
EQUITY AND EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of outstanding options | The following is a summary of the changes in the Company’s outstanding options for the nine months ended September 30, 2017 : Number of Options Weighted Average Strike Price Weighted Average Life Remaining (in years) Balance at December 31, 2016 5,126,906 $ 2.79 Expired (116,330 ) 13.13 Balance at September 30, 2017 5,010,576 $ 2.55 5.84 Exercisable at September 30, 2017 3,858,081 $ 2.58 5.86 |
Schedule of outstanding options summary | As of September 30, 2017 , the Company’s outstanding options were summarized as follows: Issued in 2011 and thereafter Held by the Manager 3,857,748 Issued to the Manager and subsequently transferred to certain of the Manager’s employees 1,152,495 Issued to the independent directors 333 Total 5,010,576 Weighted average strike price $ 2.55 |
Schedule of amounts used in computing basic and diluted EPS | The following table shows the amounts used in computing basic and diluted EPS: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Numerator for basic and diluted earnings per share: (Loss) Income from continuing operations after preferred dividends and noncontrolling interests $ (1,864 ) $ 18,923 $ (22,314 ) $ 92,598 (Loss) Income Applicable to Common Stockholders $ (1,864 ) $ 18,923 $ (22,314 ) $ 92,598 Denominator: Denominator for basic earnings per share - weighted average shares 66,932,744 66,730,583 66,883,291 66,688,962 Effect of dilutive securities Options — 2,342,093 — 2,064,570 Denominator for diluted earnings per share - adjusted weighted average shares 66,932,744 69,072,676 66,883,291 68,753,532 Basic earnings per share: (Loss) Income from continuing operations per share of common stock, after preferred dividends and noncontrolling interests $ (0.03 ) $ 0.28 $ (0.33 ) $ 1.39 (Loss) Income Applicable to Common Stock, per share $ (0.03 ) $ 0.28 $ (0.33 ) $ 1.39 Diluted earnings per share: (Loss) Income from continuing operations per share of common stock, after preferred dividends and noncontrolling interests $ (0.03 ) $ 0.27 $ (0.33 ) $ 1.35 (Loss) Income Applicable to Common Stock, per share $ (0.03 ) $ 0.27 $ (0.33 ) $ 1.35 |
TRANSACTIONS WITH AFFILIATES 34
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Transactions With Affiliates And Affiliated Entity [Abstract] | |
Schedule of amounts Incurred under management agreement | Amounts incurred under the Management Agreement Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Management fees $ 2,553 $ 2,551 $ 7,657 $ 7,652 Expense reimbursement to the Manager 125 125 375 375 Incentive compensation — — — — Total Management fee to affiliate $ 2,678 $ 2,676 $ 8,032 $ 8,027 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of provisions for income taxes | The provision for income taxes consists of the following: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Current: Federal $ (2 ) $ (37 ) $ 1,047 $ 27 State and Local — (1 ) — 20 Total Current (Benefit) Provision $ (2 ) $ (38 ) $ 1,047 $ 47 Deferred: Federal $ — $ — $ — $ 83 State and Local — — — 14 Total Deferred Provision $ — $ — $ — $ 97 Total (Benefit) Provision for Income Taxes $ (2 ) $ (38 ) $ 1,047 $ 144 |
Schedule of deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of September 30, 2017 are presented below: September 30, 2017 December 31, 2016 Deferred tax assets: Allowance for loan losses $ 379 $ 358 Depreciation and amortization 39,804 38,598 Accrued expenses 2,285 2,885 Interest 6,391 16,503 Net operating losses 151,107 162,629 Capital losses 9,241 — Other 3,151 2,036 Total deferred tax assets 212,358 223,009 Less valuation allowance (152,288 ) (133,192 ) Net deferred tax assets $ 60,070 $ 89,817 Deferred tax liabilities: Leaseholds 12,780 13,681 Cancellation of debt 47,290 75,632 Other — 504 Total deferred tax liabilities $ 60,070 $ 89,817 Net deferred tax assets $ — $ — |
ORGANIZATION (Details)
ORGANIZATION (Details) | Sep. 30, 2017stateproperty |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of golf properties (in properties) | property | 77 |
Number of states in which properties owned (in states) | state | 13 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017USD ($)derivative_instrument | Sep. 30, 2017USD ($)derivative_instrument | Dec. 31, 2016USD ($) | |
Accounting Policies [Abstract] | |||
Refundable term for initiation fees | 30 years | ||
Expected life of active golf membership | 7 years | ||
Derivative [Line Items] | |||
Operating lease term | 20 years | ||
Ownership in equity investment (as percent) | 22.00% | 22.00% | |
Other investments | $ 20,601,000 | $ 20,601,000 | $ 19,256,000 |
VIE assets | 0 | 0 | 0 |
VIE liabilities | 0 | 0 | 0 |
Interest rate cap | |||
Derivative [Line Items] | |||
Interest rate derivative instruments not designated as hedging instruments at fair value, net | $ 200,000 | $ 200,000 | |
Interest rate cap | Not designated as hedging instrument | |||
Derivative [Line Items] | |||
Number of interest rate derivatives held (in derivatives) | derivative_instrument | 1 | 1 | |
Other Contract | Not designated as hedging instrument | Short | |||
Derivative [Line Items] | |||
Derivative, number of instruments held (in instruments) | derivative_instrument | 0 | 0 | |
Other Contract | Not designated as hedging instrument | Short | TBA contracts | |||
Derivative [Line Items] | |||
Margin deposit assets | $ 0 | $ 0 | $ 0 |
Lower Range | |||
Derivative [Line Items] | |||
Operating lease term | 10 years | ||
Upper Range | |||
Derivative [Line Items] | |||
Operating lease term | 20 years |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Realized and unrealized (gain) loss on investments and other income, net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Realized and unrealized (gain) loss on investments | ||||
(Gain) on settlement of real estate securities | $ (2,345) | $ (10,080) | $ (2,345) | $ (18,560) |
Loss on settlement of real estate securities | 0 | 0 | 2,803 | 0 |
Unrealized loss on securities, intent-to-sell | 0 | 0 | 558 | 0 |
(Gain) loss on settlement of loans held-for-sale | 0 | 0 | (12) | 47 |
Realized loss on settlement of TBAs, net | 228 | 3,730 | 4,669 | 13,675 |
Unrealized loss (gain) on non-hedge derivative instruments | 1,802 | (255) | 688 | 1,702 |
Realized and unrealized (gain) loss on investments | (315) | (6,605) | 6,361 | (3,136) |
Other income, net | ||||
(Loss) gain on lease modifications and terminations | (1) | 2 | (161) | (75) |
Loss on extinguishment of debt, net | (145) | (227) | (327) | (607) |
Collateral management fee income, net | 92 | 119 | 341 | 481 |
Equity in earnings of equity method investees | 387 | 384 | 1,149 | 1,129 |
(Loss) gain on disposal of long-lived assets | (3) | 0 | 23 | 24 |
Other (loss) income | (128) | 227 | (653) | 387 |
Other income, net | $ 202 | $ 505 | $ 372 | $ 1,339 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Reclassification from accumulated other comprehensive income into net (loss) income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (“AOCI”) Components | ||||
Realized and unrealized (gain) loss on investments | $ (315) | $ (6,605) | $ 6,361 | $ (3,136) |
Gain on deconsolidation | 0 | 0 | 0 | (82,130) |
Interest expense, net | 4,770 | 13,138 | 15,335 | 39,089 |
Net (loss) income | 469 | (20,495) | 18,129 | (96,948) |
Total reclassifications | (2,345) | (10,080) | (2,345) | (39,208) |
Net realized (gain) loss on securities: | Reclassification from AOCI into earnings | ||||
Accumulated Other Comprehensive Income (“AOCI”) Components | ||||
Impairment | 0 | 0 | 0 | 54 |
Realized and unrealized (gain) loss on investments | (2,345) | (10,080) | (2,345) | (18,560) |
Gain on deconsolidation | 0 | 0 | 0 | (20,682) |
Net (loss) income | (2,345) | (10,080) | (2,345) | (39,188) |
Net realized (gain) on derivatives designated as cash flow hedges: | Reclassification from AOCI into earnings | ||||
Accumulated Other Comprehensive Income (“AOCI”) Components | ||||
Interest expense, net | 0 | 0 | 0 | (20) |
Net (loss) income | $ 0 | $ 0 | $ 0 | $ (20) |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated useful lives) (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Buildings and improvements | Lower Range | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Buildings and improvements | Upper Range | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 30 years |
Capital leases - equipment | Lower Range | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Capital leases - equipment | Upper Range | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Furniture, fixtures and equipment | Lower Range | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture, fixtures and equipment | Upper Range | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated useful lives for amortization) (Details) - Traditional Golf | 9 Months Ended |
Sep. 30, 2017 | |
Trade name | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 30 years |
Leasehold Intangibles | Lower Range | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 1 year |
Leasehold Intangibles | Upper Range | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 26 years |
Management contracts | Lower Range | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 1 year |
Management contracts | Upper Range | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 26 years |
Internally-developed software | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Membership base | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other current assets) (Details) $ in Thousands | Sep. 30, 2017USD ($)property | Dec. 31, 2016USD ($)property |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Real estate related and other loans, held-for-sale, net | $ 147 | $ 55,612 |
Prepaid expenses | 3,428 | 3,580 |
Interest receivable | 0 | 1,697 |
Deposits | 3,002 | 1,314 |
Inventory | 5,003 | 4,496 |
Derivative assets | 0 | 371 |
Residential mortgage loans, held-for-sale, net | 0 | 231 |
Receivables from brokers, dealers and clearing organizations | 0 | 552 |
Miscellaneous assets, net | 10,960 | 10,834 |
Other Assets, Current | $ 22,540 | $ 78,687 |
Number of golf properties (in properties) | property | 77 | |
Held-for-sale | Annandale, New Jersey | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of golf properties (in properties) | property | 1 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other assets) (Details) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Prepaid expenses | $ 28 | $ 74 |
Deposits | 2,353 | 2,791 |
Derivative assets | 167 | 485 |
Miscellaneous assets, net | 5,885 | 4,097 |
Other assets | $ 8,433 | $ 7,447 |
SUMMARY OF SIGNIFICANT ACCOUN44
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other current liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Security deposits payable | $ 7,939 | $ 5,978 |
Accrued rent | 2,289 | 1,930 |
Due to affiliates | 893 | 892 |
Dividends payable | 930 | 8,949 |
Miscellaneous liabilities | 9,702 | 11,219 |
Other Liabilities, Current | $ 21,753 | $ 28,968 |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other liabilities) (Details) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Security deposits payable | $ 196 | $ 95 |
Unfavorable leasehold interests | 3,587 | 4,225 |
Accrued rent | 1,004 | 683 |
Miscellaneous liabilities | 937 | 1,059 |
Other liabilities | $ 5,724 | $ 6,062 |
SEGMENT REPORTING (Narrative) (
SEGMENT REPORTING (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)stateproperty | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)statesegmentproperty | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments (in segments) | segment | 4 | ||||
Number of golf properties (in properties) | property | 77 | 77 | |||
Number of states in which properties owned (in states) | state | 13 | 13 | |||
Amortization of favorable and unfavorable lease intangibles | $ 1,000 | $ 1,100 | $ 3,100 | $ 3,400 | |
Accretion expense | 1,600 | 1,400 | 4,800 | 4,300 | |
Equity method investments | 20,601 | 20,601 | $ 19,256 | ||
Traditional Golf | |||||
Segment Reporting Information [Line Items] | |||||
Rental expense - carts and equipment | 700 | $ 900 | 2,300 | $ 2,900 | |
Entertainment Golf | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Capitalized interest | 100 | 100 | |||
Debt Investments | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Equity method investments | $ 20,600 | $ 20,600 |
SEGMENT REPORTING (Segment Repo
SEGMENT REPORTING (Segment Reporting) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Revenues | |||||
Golf course operations | $ 62,034 | $ 63,249 | $ 168,969 | $ 174,718 | |
Sales of food and beverages | 19,657 | 19,913 | 53,223 | 55,086 | |
Total revenues | 81,691 | 83,162 | 222,192 | 229,804 | |
Operating costs | |||||
Operating expenses | 67,385 | 69,251 | 187,730 | 195,670 | |
Cost of sales - food and beverages | 5,721 | 6,026 | 15,762 | 17,139 | |
General and administrative expense | 2,397 | 2,633 | 6,264 | 7,884 | |
General and administrative expense - acquisition and transaction expenses | 1,931 | 1,055 | 4,851 | 2,464 | |
Management fee to affiliate | 2,678 | 2,676 | 8,032 | 8,027 | |
Depreciation and amortization | 6,187 | 6,735 | 17,952 | 19,250 | |
Impairment | 28 | 611 | 60 | 3,564 | |
Realized and unrealized loss (gain) on investments | (315) | (6,605) | 6,361 | (3,136) | |
Total operating costs | 86,012 | 82,382 | 247,012 | 250,862 | |
Operating (loss) income | (4,321) | 780 | (24,820) | (21,058) | |
Other income (expenses) | |||||
Interest and investment income | 8,418 | 32,310 | 22,701 | 73,770 | |
Interest expense, net | (4,770) | (13,138) | (15,335) | (39,089) | |
Gain on deconsolidation | 0 | 0 | 0 | 82,130 | |
Other (loss) income, net | 202 | 505 | 372 | 1,339 | |
Total other income (expenses) | 3,850 | 19,677 | 7,738 | 118,150 | |
Income tax (benefit) expense | (2) | (38) | 1,047 | 144 | |
Net (Loss) Income | (469) | 20,495 | (18,129) | 96,948 | |
Preferred dividends | (1,395) | (1,395) | (4,185) | (4,185) | |
Net income attributable to noncontrolling interest | 0 | (177) | 0 | (165) | |
(Loss) Income Applicable to Common Stockholders | (1,864) | 18,923 | (22,314) | 92,598 | |
Total assets | 536,115 | 536,115 | $ 1,171,958 | ||
Total liabilities | 339,807 | 339,807 | 953,891 | ||
Preferred stock | 61,583 | 61,583 | $ 61,583 | ||
Equity attributable to common stockholders | 134,725 | 134,725 | |||
Additions to property and equipment (including capital leases) during the nine months ended September 30, 2017 | 23,825 | ||||
Traditional Golf | Operating Segments | |||||
Revenues | |||||
Golf course operations | 62,034 | 63,249 | 168,969 | 174,718 | |
Sales of food and beverages | 19,657 | 19,913 | 53,223 | 55,086 | |
Total revenues | 81,691 | 83,162 | 222,192 | 229,804 | |
Operating costs | |||||
Operating expenses | 67,244 | 69,251 | 187,539 | 195,670 | |
Cost of sales - food and beverages | 5,721 | 6,026 | 15,762 | 17,139 | |
General and administrative expense | 708 | 662 | 2,152 | 2,207 | |
General and administrative expense - acquisition and transaction expenses | 72 | 173 | 558 | 1,182 | |
Management fee to affiliate | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 6,171 | 6,735 | 17,936 | 19,250 | |
Impairment | 0 | 0 | 0 | 0 | |
Realized and unrealized loss (gain) on investments | 32 | 15 | 317 | 35 | |
Total operating costs | 79,948 | 82,862 | 224,264 | 235,483 | |
Operating (loss) income | 1,743 | 300 | (2,072) | (5,679) | |
Other income (expenses) | |||||
Interest and investment income | 42 | 17 | 114 | 94 | |
Interest expense, net | (3,830) | (3,340) | (11,500) | (8,703) | |
Gain on deconsolidation | 0 | ||||
Other (loss) income, net | (211) | 0 | (1,044) | (272) | |
Total other income (expenses) | (3,999) | (3,323) | (12,430) | (8,881) | |
Income tax (benefit) expense | 0 | (38) | 0 | 144 | |
Net (Loss) Income | (2,256) | (2,985) | (14,502) | (14,704) | |
Preferred dividends | 0 | 0 | 0 | 0 | |
Net income attributable to noncontrolling interest | (177) | (165) | |||
(Loss) Income Applicable to Common Stockholders | (2,256) | (3,162) | (14,502) | (14,869) | |
Total assets | 319,356 | 319,356 | |||
Total liabilities | 278,352 | 278,352 | |||
Preferred stock | 0 | 0 | |||
Equity attributable to common stockholders | 41,004 | 41,004 | |||
Additions to property and equipment (including capital leases) during the nine months ended September 30, 2017 | 15,178 | ||||
Entertainment Golf | Operating Segments | |||||
Revenues | |||||
Golf course operations | 0 | 0 | 0 | 0 | |
Sales of food and beverages | 0 | 0 | 0 | 0 | |
Total revenues | 0 | 0 | 0 | 0 | |
Operating costs | |||||
Operating expenses | 141 | 0 | 191 | 0 | |
Cost of sales - food and beverages | 0 | 0 | 0 | 0 | |
General and administrative expense | 60 | 3 | 203 | 5 | |
General and administrative expense - acquisition and transaction expenses | 1,804 | 682 | 4,122 | 911 | |
Management fee to affiliate | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 16 | 0 | 16 | 0 | |
Impairment | 0 | 0 | 0 | 0 | |
Realized and unrealized loss (gain) on investments | 0 | 0 | 0 | 0 | |
Total operating costs | 2,021 | 685 | 4,532 | 916 | |
Operating (loss) income | (2,021) | (685) | (4,532) | (916) | |
Other income (expenses) | |||||
Interest and investment income | 0 | 0 | 0 | 0 | |
Interest expense, net | 0 | 0 | 0 | 0 | |
Gain on deconsolidation | 0 | ||||
Other (loss) income, net | 0 | 0 | 0 | 0 | |
Total other income (expenses) | 0 | 0 | 0 | 0 | |
Income tax (benefit) expense | 0 | 0 | 0 | 0 | |
Net (Loss) Income | (2,021) | (685) | (4,532) | (916) | |
Preferred dividends | 0 | 0 | 0 | 0 | |
Net income attributable to noncontrolling interest | 0 | 0 | |||
(Loss) Income Applicable to Common Stockholders | (2,021) | (685) | (4,532) | (916) | |
Total assets | 19,882 | 19,882 | |||
Total liabilities | 5,384 | 5,384 | |||
Preferred stock | 0 | 0 | |||
Equity attributable to common stockholders | 14,498 | 14,498 | |||
Additions to property and equipment (including capital leases) during the nine months ended September 30, 2017 | 8,647 | ||||
Debt Investments | Operating Segments | |||||
Revenues | |||||
Golf course operations | 0 | 0 | 0 | 0 | |
Sales of food and beverages | 0 | 0 | 0 | 0 | |
Total revenues | 0 | 0 | 0 | 0 | |
Operating costs | |||||
Operating expenses | 0 | 0 | 0 | 0 | |
Cost of sales - food and beverages | 0 | 0 | 0 | 0 | |
General and administrative expense | 10 | 32 | 10 | 70 | |
General and administrative expense - acquisition and transaction expenses | 0 | 0 | 0 | 0 | |
Management fee to affiliate | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Impairment | 28 | 611 | 60 | 3,564 | |
Realized and unrealized loss (gain) on investments | (347) | (6,620) | 6,044 | (3,171) | |
Total operating costs | (309) | (5,977) | 6,114 | 463 | |
Operating (loss) income | 309 | 5,977 | (6,114) | (463) | |
Other income (expenses) | |||||
Interest and investment income | 8,085 | 32,286 | 22,137 | 73,661 | |
Interest expense, net | (482) | (9,405) | (2,532) | (28,482) | |
Gain on deconsolidation | 82,130 | ||||
Other (loss) income, net | 413 | 505 | 1,416 | 1,611 | |
Total other income (expenses) | 8,016 | 23,386 | 21,021 | 128,920 | |
Income tax (benefit) expense | 0 | 0 | 0 | 0 | |
Net (Loss) Income | 8,325 | 29,363 | 14,907 | 128,457 | |
Preferred dividends | 0 | 0 | 0 | 0 | |
Net income attributable to noncontrolling interest | 0 | 0 | |||
(Loss) Income Applicable to Common Stockholders | 8,325 | 29,363 | 14,907 | 128,457 | |
Total assets | 23,514 | 23,514 | |||
Total liabilities | 170 | 170 | |||
Preferred stock | 0 | 0 | |||
Equity attributable to common stockholders | 23,344 | 23,344 | |||
Additions to property and equipment (including capital leases) during the nine months ended September 30, 2017 | 0 | ||||
Corporate | Operating Segments | |||||
Revenues | |||||
Golf course operations | 0 | 0 | 0 | 0 | |
Sales of food and beverages | 0 | 0 | 0 | 0 | |
Total revenues | 0 | 0 | 0 | 0 | |
Operating costs | |||||
Operating expenses | 0 | 0 | 0 | 0 | |
Cost of sales - food and beverages | 0 | 0 | 0 | 0 | |
General and administrative expense | 1,619 | 1,936 | 3,899 | 5,602 | |
General and administrative expense - acquisition and transaction expenses | 55 | 200 | 171 | 371 | |
Management fee to affiliate | 2,678 | 2,676 | 8,032 | 8,027 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Impairment | 0 | 0 | 0 | 0 | |
Realized and unrealized loss (gain) on investments | 0 | 0 | 0 | 0 | |
Total operating costs | 4,352 | 4,812 | 12,102 | 14,000 | |
Operating (loss) income | (4,352) | (4,812) | (12,102) | (14,000) | |
Other income (expenses) | |||||
Interest and investment income | 291 | 7 | 450 | 15 | |
Interest expense, net | (458) | (393) | (1,303) | (1,904) | |
Gain on deconsolidation | 0 | ||||
Other (loss) income, net | 0 | 0 | 0 | 0 | |
Total other income (expenses) | (167) | (386) | (853) | (1,889) | |
Income tax (benefit) expense | (2) | 0 | 1,047 | 0 | |
Net (Loss) Income | (4,517) | (5,198) | (14,002) | (15,889) | |
Preferred dividends | (1,395) | (1,395) | (4,185) | (4,185) | |
Net income attributable to noncontrolling interest | 0 | 0 | |||
(Loss) Income Applicable to Common Stockholders | (5,912) | $ (6,593) | (18,187) | $ (20,074) | |
Total assets | 173,363 | 173,363 | |||
Total liabilities | 55,901 | 55,901 | |||
Preferred stock | 61,583 | 61,583 | |||
Equity attributable to common stockholders | $ 55,879 | 55,879 | |||
Additions to property and equipment (including capital leases) during the nine months ended September 30, 2017 | $ 0 |
PROPERTY AND EQUIPMENT, NET O48
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Amount | $ 306,173 | $ 282,347 |
Accumulated Depreciation | (80,124) | (64,736) |
Net Carrying Value | 226,049 | 217,611 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Amount | 84,319 | 84,319 |
Accumulated Depreciation | 0 | 0 |
Net Carrying Value | 84,319 | 84,319 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Amount | 151,489 | 144,690 |
Accumulated Depreciation | (49,553) | (39,402) |
Net Carrying Value | 101,936 | 105,288 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Amount | 32,874 | 29,132 |
Accumulated Depreciation | (22,969) | (20,516) |
Net Carrying Value | 9,905 | 8,616 |
Capital leases - equipment | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Amount | 24,284 | 20,844 |
Accumulated Depreciation | (7,602) | (4,818) |
Net Carrying Value | 16,682 | 16,026 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Gross Carrying Amount | 13,207 | 3,362 |
Accumulated Depreciation | 0 | 0 |
Net Carrying Value | $ 13,207 | $ 3,362 |
INTANGIBLES, NET OF ACCUMULAT49
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized intangible assets: | ||
Total Intangibles, Net Carrying Value | $ 59,309 | $ 65,112 |
Golf Investments | ||
Amortized intangible assets: | ||
Accumulated Amortization | (31,876) | (25,778) |
Nonamortizable liquor licenses | 1,231 | 840 |
Total Intangibles, Gross Carrying Amount | 91,185 | 90,890 |
Total Intangibles, Net Carrying Value | 59,309 | 65,112 |
Golf Investments | Trade name | ||
Amortized intangible assets: | ||
Gross Carrying Amount | 700 | 700 |
Accumulated Amortization | (87) | (70) |
Net Carrying Value | 613 | 630 |
Golf Investments | Leasehold Intangibles | ||
Amortized intangible assets: | ||
Gross Carrying Amount | 48,107 | 48,107 |
Accumulated Amortization | (15,674) | (12,550) |
Net Carrying Value | 32,433 | 35,557 |
Golf Investments | Management contracts | ||
Amortized intangible assets: | ||
Gross Carrying Amount | 35,111 | 35,207 |
Accumulated Amortization | (12,710) | (10,434) |
Net Carrying Value | 22,401 | 24,773 |
Golf Investments | Internally-developed software | ||
Amortized intangible assets: | ||
Gross Carrying Amount | 800 | 800 |
Accumulated Amortization | (600) | (480) |
Net Carrying Value | 200 | 320 |
Golf Investments | Membership base | ||
Amortized intangible assets: | ||
Gross Carrying Amount | 5,236 | 5,236 |
Accumulated Amortization | (2,805) | (2,244) |
Net Carrying Value | $ 2,431 | $ 2,992 |
DEBT OBLIGATIONS (Details)
DEBT OBLIGATIONS (Details) | 9 Months Ended | |
Sep. 30, 2017USD ($)property | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Credit facilities and obligations under capital leases | $ 112,383,000 | $ 111,585,000 |
Number of golf properties (in properties) | property | 77 | |
Total debt obligations | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 165,781,000 | |
Carrying Value | $ 163,593,000 | |
Weighted Average Funding Cost (as percent) | 6.44% | |
Weighted Average Life | 6 years 8 months 15 days | |
Face Amount of Floating Rate Debt | $ 153,204,000 | |
Credit Facilities and Capital Leases | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 119,261,000 | |
Carrying Value | $ 116,867,000 | |
Weighted Average Funding Cost (as percent) | 7.71% | |
Weighted Average Life | 2 years 1 day | |
Face Amount of Floating Rate Debt | $ 102,200,000 | |
Less current portion of obligations under capital leases | 4,484,000 | |
Credit facilities and obligations under capital leases | 112,383,000 | |
Traditional Golf term loan | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 102,000,000 | |
Carrying Value | $ 99,606,000 | |
Weighted Average Funding Cost (as percent) | 7.92% | |
Weighted Average Life | 1 year 8 months 1 day | |
Face Amount of Floating Rate Debt | $ 102,000,000 | |
Number of golf properties (in properties) | property | 22 | |
Deferred financing costs | $ 2,400,000 | |
Traditional Golf term loan | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread (as percent) | 4.70% | |
Variable rate (as percent) | 1.80% | |
Traditional Golf term loan | London Interbank Offered Rate (LIBOR) | Interest rate cap | ||
Debt Instrument [Line Items] | ||
Variable rate (as percent) | 1.80% | |
Vineyard II | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 200,000 | |
Carrying Value | $ 200,000 | |
Weighted Average Coupon (as percent) | 2.20% | |
Weighted Average Funding Cost (as percent) | 2.20% | |
Weighted Average Life | 26 years 2 months 1 day | |
Face Amount of Floating Rate Debt | $ 200,000 | |
Capital leases (Equipment) | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 17,061,000 | |
Carrying Value | $ 17,061,000 | |
Weighted Average Funding Cost (as percent) | 6.55% | |
Weighted Average Life | 3 years 8 months 1 day | |
Face Amount of Floating Rate Debt | $ 0 | |
Capital leases (Equipment) | Lower Range | ||
Debt Instrument [Line Items] | ||
Weighted Average Coupon (as percent) | 3.00% | |
Capital leases (Equipment) | Upper Range | ||
Debt Instrument [Line Items] | ||
Weighted Average Coupon (as percent) | 16.16% | |
Current portion of credit facilities and obligations under capital leases | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 4,484,000 | |
Credit facilities and obligations under capital leases - noncurrent | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 114,777,000 | |
Junior subordinated notes payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 51,004,000 | |
Carrying Value | $ 51,210,000 | |
Weighted Average Funding Cost (as percent) | 3.53% | |
Weighted Average Life | 17 years 7 months 1 day | |
Face Amount of Floating Rate Debt | $ 51,004,000 | |
Junior subordinated notes payable | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Variable interest rate spread (as percent) | 2.25% |
DEBT OBLIGATIONS (Narrative) (D
DEBT OBLIGATIONS (Narrative) (Details) - Capital leases (Equipment) | 9 Months Ended |
Sep. 30, 2017 | |
Lower Range | |
Debt Instrument [Line Items] | |
Debt instrument, term | 36 months |
Upper Range | |
Debt Instrument [Line Items] | |
Debt instrument, term | 66 months |
DEBT OBLIGATIONS (Future Minimu
DEBT OBLIGATIONS (Future Minimum Lease Payments) (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Future minimum lease payments due | |
October 1, 2017 - December 31, 2017 | $ 1,365 |
2,018 | 5,464 |
2,019 | 5,319 |
2,020 | 4,039 |
2,021 | 2,464 |
2,022 | 662 |
Total minimum lease payments | 19,313 |
Less: imputed interest | (2,252) |
Present value of net minimum lease payments | $ 17,061 |
REAL ESTATE SECURITIES (Real Es
REAL ESTATE SECURITIES (Real Estate Securities Holdings) (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($)security | Dec. 31, 2016USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Outstanding Face Amount | $ 4,000 | |
Before Impairment - Amortized Cost Basis | 2,410 | |
Other-Than-Temporary Impairment - Amortized Cost Basis | (1,521) | |
After Impairment - Amortized Cost Basis | 889 | |
Gross Unrealized Gains | 1,347 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 2,236 | $ 629,254 |
Number of securities (in securities) | security | 1 | |
Total outstanding face amount of floating rate securities | $ 4,000 | |
ABS - Non-Agency RMBS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Outstanding Face Amount | 4,000 | |
Before Impairment - Amortized Cost Basis | 2,410 | |
Other-Than-Temporary Impairment - Amortized Cost Basis | (1,521) | |
After Impairment - Amortized Cost Basis | 889 | |
Gross Unrealized Gains | 1,347 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 2,236 | |
Number of securities (in securities) | security | 1 | |
Weighted Average Rating | CCC | |
Weighted Average Coupon (as percent) | 1.63% | |
Weighted Average Yield (as percent) | 22.61% | |
Weighted Average Life | 7 years 6 months 1 day | |
Weighted Average Principal Subordination (as percent) | 31.40% |
REAL ESTATE SECURITIES (Narrati
REAL ESTATE SECURITIES (Narrative) (Details) | 1 Months Ended | 9 Months Ended | ||
Aug. 31, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($)security | Sep. 30, 2016USD ($) | |
Investment [Line Items] | ||||
Fair value of securities | security | 0 | |||
Proceeds from transaction | $ 595,850,000 | $ 1,128,906,000 | ||
Real Estate Securities | ||||
Investment [Line Items] | ||||
Other-than-temporary impairment on securities and other investments | 600,000 | |||
Portion of other-than-temporary impairment on securities recognized in other comprehensive income (loss), net of the reversal of other comprehensive loss into net income (loss) | $ 0 | |||
FNMA/FHLMC | ||||
Investment [Line Items] | ||||
Face amount of securities sold | $ 299,500,000 | $ 289,700,000 | ||
Average price percentage - sold (as percent) | 103.20% | 98.80% | ||
Proceeds from transaction | $ 309,000,000 | $ 286,100,000 | ||
Recognized loss on sale of securities | (2,300,000) | 2,800,000 | ||
Repayments of repurchase agreements | $ 302,100,000 | $ 277,800,000 |
REAL ESTATE SECURITIES (Geograp
REAL ESTATE SECURITIES (Geographic Distribution of Collateral Securing Drive Shack's ABS) (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Schedule of Available-for-sale Securities [Line Items] | |
Outstanding Face Amount | $ 4,000 |
ABS - Non-Agency RMBS | |
Schedule of Available-for-sale Securities [Line Items] | |
Outstanding Face Amount | $ 4,000 |
Percentage | 100.00% |
ABS - Non-Agency RMBS | Western U.S. | |
Schedule of Available-for-sale Securities [Line Items] | |
Outstanding Face Amount | $ 1,277 |
Percentage | 31.90% |
ABS - Non-Agency RMBS | Northeastern U.S. | |
Schedule of Available-for-sale Securities [Line Items] | |
Outstanding Face Amount | $ 592 |
Percentage | 14.80% |
ABS - Non-Agency RMBS | Southeastern U.S. | |
Schedule of Available-for-sale Securities [Line Items] | |
Outstanding Face Amount | $ 1,091 |
Percentage | 27.30% |
ABS - Non-Agency RMBS | Midwestern U.S. | |
Schedule of Available-for-sale Securities [Line Items] | |
Outstanding Face Amount | $ 426 |
Percentage | 10.60% |
ABS - Non-Agency RMBS | Southwestern U.S. | |
Schedule of Available-for-sale Securities [Line Items] | |
Outstanding Face Amount | $ 614 |
Percentage | 15.40% |
REAL ESTATE RELATED AND OTHER56
REAL ESTATE RELATED AND OTHER LOANS AND RESIDENTIAL MORTGAGE LOANS (Schedule of Loans) (Details) - Real Estate Related and Other Loans | 9 Months Ended | |
Sep. 30, 2017USD ($)loan | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Face Amount | $ 77,151,000 | |
Carrying Value | 147,000 | $ 55,612,000 |
Held-for-sale | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Face Amount | 77,151,000 | |
Carrying Value | $ 147,000 | |
Loan Count (in loans) | loan | 5 | |
Weighted Average Yield (as percent) | 20.00% | |
Weighted Average Coupon (as percent) | 7.85% | |
Weighted Average Life | 4 months 1 day | |
Floating Rate Loans as % of Face Amount (as percent) | 23.00% | |
Delinquent Face Amount | $ 77,151,000 | |
Face amount of real estate related loans on non-accrual status | 77,200,000 | |
Held-for-sale | Mezzanine Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Face Amount | 17,767,000 | |
Carrying Value | $ 0 | |
Loan Count (in loans) | loan | 2 | |
Weighted Average Yield (as percent) | 0.00% | |
Weighted Average Coupon (as percent) | 8.39% | |
Weighted Average Life | 6 days | |
Floating Rate Loans as % of Face Amount (as percent) | 100.00% | |
Delinquent Face Amount | $ 17,767,000 | |
Held-for-sale | Corporate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding Face Amount | 59,384,000 | |
Carrying Value | $ 147,000 | |
Loan Count (in loans) | loan | 3 | |
Weighted Average Yield (as percent) | 20.00% | |
Weighted Average Coupon (as percent) | 7.69% | |
Weighted Average Life | 5 months 1 day | |
Floating Rate Loans as % of Face Amount (as percent) | 0.00% | |
Delinquent Face Amount | $ 59,384,000 |
REAL ESTATE RELATED AND OTHER57
REAL ESTATE RELATED AND OTHER LOANS AND RESIDENTIAL MORTGAGE LOANS (Activity in Carrying Value) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Real Estate Related and Other Loans | |
Held-for-Sale | |
Balance at December 31, 2016 | $ 55,612 |
Purchases / additional fundings | 0 |
Interest accrued to principal balance | 8,458 |
Settlements | (69,455) |
Valuation allowance on loans | 0 |
Accretion of loan discount and other amortization | 5,532 |
Gain on settlement of loans | 0 |
Balance at September 30, 2017 | 147 |
Residential | Residential Mortgage Loans | |
Held-for-Sale | |
Balance at December 31, 2016 | 231 |
Purchases / additional fundings | 0 |
Interest accrued to principal balance | 0 |
Settlements | (183) |
Valuation allowance on loans | (60) |
Accretion of loan discount and other amortization | 0 |
Gain on settlement of loans | 12 |
Balance at September 30, 2017 | $ 0 |
REAL ESTATE RELATED AND OTHER58
REAL ESTATE RELATED AND OTHER LOANS AND RESIDENTIAL MORTGAGE LOANS (Loss Allowance) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Real Estate Related and Other Loans | |
Allowance for Loan and Lease Losses [Roll Forward] | |
Beginning balance | $ (74,691) |
Charge-offs | 0 |
Valuation allowance on loans | 0 |
Ending balance | (74,691) |
Residential | Residential Mortgage Loans | |
Allowance for Loan and Lease Losses [Roll Forward] | |
Beginning balance | (464) |
Charge-offs | 524 |
Valuation allowance on loans | (60) |
Ending balance | $ 0 |
REAL ESTATE RELATED AND OTHER59
REAL ESTATE RELATED AND OTHER LOANS AND RESIDENTIAL MORTGAGE LOANS (Geographic Distribution) (Details) - Real Estate Related and Other Loans $ in Thousands | Sep. 30, 2017USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | $ 77,151 |
Percentage of loans (as percent) | 100.00% |
Foreign | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of loans (as percent) | 100.00% |
Real Estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | $ 63,454 |
Real Estate | Foreign | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | 63,454 |
Other | Other | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Outstanding Face Amount | $ 13,697 |
REAL ESTATE RELATED AND OTHER60
REAL ESTATE RELATED AND OTHER LOANS AND RESIDENTIAL MORTGAGE LOANS (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | |
Aug. 31, 2017 | Sep. 30, 2016 | |
Receivables [Abstract] | ||
Proceeds from collection of notes receivable | $ 69.5 | $ 109.9 |
Proceeds from accrued interest on notes receivable | $ 5.5 |
DERIVATIVES (Narrative) (Detail
DERIVATIVES (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative liabilities | $ 0 | $ 0 |
Deferred | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Expected reclassification of current hedges from AOCI into earnings over the next 12 months (less than in 2015) | 0 | 0 |
Other assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | $ 200,000 | 500,000 |
Other current assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative assets | $ 400,000 |
DERIVATIVES (Schedule of (Gains
DERIVATIVES (Schedule of (Gains) Losses Recorded In Relation to Derivatives) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative [Line Items] | ||||
Deferred hedge gain reclassified from AOCI into earnings | $ 4,770 | $ 13,138 | $ 15,335 | $ 39,089 |
Realized loss on settlement of TBAs, net | 228 | 3,730 | 4,669 | 13,675 |
Not designated as hedging instrument | Realized and unrealized (gain) loss on investments | Interest rate swap | ||||
Derivative [Line Items] | ||||
Unrealized loss on interest rate derivatives | 32 | 15 | 317 | 34 |
Not designated as hedging instrument | Realized and unrealized (gain) loss on investments | Other Contract | ||||
Derivative [Line Items] | ||||
Unrealized (gain) loss recognized related to TBAs | 1,770 | (270) | 371 | 1,668 |
Realized loss on settlement of TBAs, net | 228 | 3,730 | 4,669 | 13,675 |
Reclassification from AOCI into earnings | Net realized (gain) loss on derivatives designated as cash flow hedges | ||||
Derivative [Line Items] | ||||
Deferred hedge gain reclassified from AOCI into earnings | 0 | 0 | 0 | (20) |
Reclassification from AOCI into earnings | Cash flow hedges | Designated as hedging instrument | Net realized (gain) loss on derivatives designated as cash flow hedges | Interest expense, net | ||||
Derivative [Line Items] | ||||
Deferred hedge gain reclassified from AOCI into earnings | $ 0 | $ 0 | $ 0 | $ (20) |
FAIR VALUE OF FINANCIAL INSTR63
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Values and Estimated Fair Value) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||||
Real estate securities, available-for-sale | $ 2,236 | |||
Real estate related and other loans, held-for-sale, net | 147 | $ 55,612 | ||
Cash and cash equivalents | 182,371 | $ 140,140 | $ 134,289 | $ 45,651 |
Carrying Value | ||||
Assets | ||||
Real estate securities, available-for-sale | 2,236 | |||
Real estate related and other loans, held-for-sale, net | 147 | |||
Cash and cash equivalents | 182,371 | |||
Restricted cash, current and noncurrent | 6,036 | |||
Non-hedge derivative assets | 167 | |||
Liabilities | ||||
Credit facilities - Traditional Golf term loan | 99,606 | |||
Junior subordinated notes payable | 51,210 | |||
Estimated Fair Value | ||||
Assets | ||||
Real estate securities, available-for-sale | 2,236 | |||
Real estate related and other loans, held-for-sale, net | 147 | |||
Cash and cash equivalents | 182,371 | |||
Restricted cash, current and noncurrent | 6,036 | |||
Non-hedge derivative assets | 167 | |||
Liabilities | ||||
Credit facilities - Traditional Golf term loan | 103,028 | |||
Junior subordinated notes payable | $ 26,595 |
FAIR VALUE OF FINANCIAL INSTR64
FAIR VALUE OF FINANCIAL INSTRUMENTS (Assets and Liabilities Fair Value Recurring Basis) (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Carrying Value | |
Derivative assets: | |
Non-hedge derivative assets | $ 167 |
Carrying Value | Measured on a Recurring Basis | |
Derivative assets: | |
Real estate securities, available-for-sale: | 2,236 |
Derivative assets total | 167 |
Carrying Value | Measured on a Recurring Basis | Not designated as hedging instrument | Interest rate cap | |
Derivative assets: | |
Non-hedge derivative assets | 167 |
Carrying Value | Measured on a Recurring Basis | ABS - Non-Agency RMBS | |
Derivative assets: | |
Real estate securities, available-for-sale: | 2,236 |
Estimated Fair Value | |
Derivative assets: | |
Non-hedge derivative assets | 167 |
Estimated Fair Value | Measured on a Recurring Basis | |
Derivative assets: | |
Real estate securities, available-for-sale: | 2,236 |
Derivative assets total | 167 |
Estimated Fair Value | Measured on a Recurring Basis | Not designated as hedging instrument | Interest rate cap | |
Derivative assets: | |
Non-hedge derivative assets | 167 |
Estimated Fair Value | Measured on a Recurring Basis | ABS - Non-Agency RMBS | |
Derivative assets: | |
Real estate securities, available-for-sale: | 2,236 |
Estimated Fair Value | Measured on a Recurring Basis | Level 2 Market Quotations (Observable) | |
Derivative assets: | |
Real estate securities, available-for-sale: | 0 |
Derivative assets total | 167 |
Estimated Fair Value | Measured on a Recurring Basis | Level 2 Market Quotations (Observable) | Not designated as hedging instrument | Interest rate cap | |
Derivative assets: | |
Non-hedge derivative assets | 167 |
Estimated Fair Value | Measured on a Recurring Basis | Level 2 Market Quotations (Observable) | ABS - Non-Agency RMBS | |
Derivative assets: | |
Real estate securities, available-for-sale: | 0 |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 | Market Quotations (Unobservable) | |
Derivative assets: | |
Real estate securities, available-for-sale: | 0 |
Derivative assets total | 0 |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 | Market Quotations (Unobservable) | Not designated as hedging instrument | Interest rate cap | |
Derivative assets: | |
Non-hedge derivative assets | 0 |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 | Market Quotations (Unobservable) | ABS - Non-Agency RMBS | |
Derivative assets: | |
Real estate securities, available-for-sale: | 0 |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 | Internal Pricing Models | |
Derivative assets: | |
Real estate securities, available-for-sale: | 2,236 |
Derivative assets total | 0 |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 | Internal Pricing Models | Not designated as hedging instrument | Interest rate cap | |
Derivative assets: | |
Non-hedge derivative assets | 0 |
Estimated Fair Value | Measured on a Recurring Basis | Level 3 | Internal Pricing Models | ABS - Non-Agency RMBS | |
Derivative assets: | |
Real estate securities, available-for-sale: | $ 2,236 |
FAIR VALUE OF FINANCIAL INSTR65
FAIR VALUE OF FINANCIAL INSTRUMENTS (Significant Observable Inputs) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Amortized Cost Basis | $ 889 |
Real estate securities, available-for-sale | $ 2,236 |
Discount Rate (as percent) | 12.00% |
Prepayment Speed (as percent) | 4.00% |
Cumulative Default Rate (as percent) | 3.20% |
Loss Severity (as percent) | 71.30% |
ABS - Non-Agency RMBS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Amortized Cost Basis | $ 889 |
Real Estate Securities Available For Sale | ABS - Non-Agency RMBS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Amortized Cost Basis | 889 |
Real estate securities, available-for-sale | $ 2,236 |
FAIR VALUE OF FINANCIAL INSTR66
FAIR VALUE OF FINANCIAL INSTRUMENTS (Change in Fair Value of Level 3 Investments) (Details) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Purchases, sales and repayments | |
Transfers into Level 3 | $ 0 |
Transfers out of Level 3 | 0 |
Level 3 Market Quotations (Unobservable) | Measured on a Recurring Basis | ABS - Non-Agency RMBS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at December 31, 2016 | 1,950,000 |
Total gains (losses) | |
Included in other comprehensive income (loss) | 179,000 |
Amortization included in interest income | 144,000 |
Purchases, sales and repayments | |
Proceeds | (37,000) |
Balance at September 30, 2017 | 2,236,000 |
Purchases | 0 |
Sales | $ 0 |
EQUITY AND EARNINGS PER SHARE67
EQUITY AND EARNINGS PER SHARE (Outstanding Options) (Details) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of Options [Roll Forward] | |
Balance (in shares) | shares | 5,126,906 |
Expired (in shares) | shares | (116,330) |
Balance (in shares) | shares | 5,010,576 |
Exercisable (in shares) | shares | 3,858,081 |
Weighted Average Strike Price [Roll Forward] | |
Outstanding (in dollars per share) | $ / shares | $ 2.79 |
Expirations (in dollars per share) | $ / shares | 13.13 |
Outstanding (in dollars per share) | $ / shares | 2.55 |
Exercisable (in dollars per share) | $ / shares | $ 2.58 |
Weighted Average Life Remaining | |
Outstanding, Weighted Average Life Remaining | 5 years 10 months 1 day |
Exercisable, Weighted Average Life Remaining | 5 years 10 months 10 days |
EQUITY AND EARNINGS PER SHARE68
EQUITY AND EARNINGS PER SHARE (Outstanding Options Summary) (Details) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Weighted average strike price (in dollars per share) | $ 2.55 | $ 2.79 |
Issued in 2011 and thereafter | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 5,010,576 | |
Weighted average strike price (in dollars per share) | $ 2.55 | |
Held by the Manager | Issued in 2011 and thereafter | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 3,857,748 | |
Issued to the Manager and subsequently transferred to certain of the Manager’s employees | Issued in 2011 and thereafter | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 1,152,495 | |
Issued to the independent directors | Issued in 2011 and thereafter | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 333 |
EQUITY AND EARNINGS PER SHARE69
EQUITY AND EARNINGS PER SHARE (Details) (Narrative) - USD ($) $ / shares in Units, $ in Millions | Oct. 31, 2017 | Aug. 01, 2017 | Jul. 31, 2017 | May 04, 2017 | Apr. 28, 2017 | Feb. 27, 2017 | May 31, 2017 | Jan. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||||||||||
Dividends paid | $ 1.4 | $ 1.4 | |||||||||||
Dilutive common stock equivalents (in shares) | 0 | 2,342,093 | 0 | 2,064,570 | |||||||||
Stock options | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Potentially dilutive securities (in shares) | 566,894 | 267,706 | 269,311 | 335,725 | |||||||||
Common stock equivalents | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dilutive common stock equivalents (in shares) | 1,180,858 | 2,342,093 | 1,556,898 | 2,064,570 | |||||||||
Issued to the independent directors | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares issued to independent directors (in shares) | 90,366 | 18,074 | |||||||||||
Subsequent event | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividends paid | $ 1.4 | ||||||||||||
Series B Cumulative Redeemable Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.609375 | $ 0.609375 | $ 0.609375 | ||||||||||
Preferred stock, dividend rate (as percent) | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | ||||||||
Series B Cumulative Redeemable Preferred Stock | Subsequent event | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.609375 | ||||||||||||
Preferred stock, dividend rate (as percent) | 9.75% | ||||||||||||
Series C Cumulative Redeemable Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.503125 | $ 0.503125 | $ 0.503125 | ||||||||||
Preferred stock, dividend rate (as percent) | 8.05% | 8.05% | 8.05% | 8.05% | 8.05% | ||||||||
Series C Cumulative Redeemable Preferred Stock | Subsequent event | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.503125 | ||||||||||||
Preferred stock, dividend rate (as percent) | 8.05% | ||||||||||||
Series D Cumulative Redemable Preferred Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.523438 | $ 0.523438 | $ 0.523438 | ||||||||||
Preferred stock, dividend rate (as percent) | 8.375% | 8.375% | 8.375% | 8.375% | 8.375% | ||||||||
Series D Cumulative Redemable Preferred Stock | Subsequent event | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.523438 | ||||||||||||
Preferred stock, dividend rate (as percent) | 8.375% |
EQUITY AND EARNINGS PER SHARE70
EQUITY AND EARNINGS PER SHARE (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator for basic and diluted earnings per share: | ||||
(Loss) Income from continuing operations after preferred dividends and noncontrolling interests | $ (1,864) | $ 18,923 | $ (22,314) | $ 92,598 |
(Loss) Income Applicable to Common Stockholders | $ (1,864) | $ 18,923 | $ (22,314) | $ 92,598 |
Denominator: | ||||
Denominator for basic earnings per share - weighted average shares (in shares) | 66,932,744 | 66,730,583 | 66,883,291 | 66,688,962 |
Effect of dilutive securities | ||||
Options (in shares) | 0 | 2,342,093 | 0 | 2,064,570 |
Denominator for diluted earnings per share - adjusted weighted average shares (in shares) | 66,932,744 | 69,072,676 | 66,883,291 | 68,753,532 |
Basic earnings per share: | ||||
(Loss) Income from continuing operations per share of common stock, after preferred dividends and noncontrolling interests (in dollars per share) | $ (0.03) | $ 0.28 | $ (0.33) | $ 1.39 |
(Loss) Income Applicable to Common Stock, per share (in dollars per share) | (0.03) | 0.28 | (0.33) | 1.39 |
Diluted earnings per share: | ||||
(Loss) Income from continuing operations per share of common stock, after preferred dividends and noncontrolling interests (in dollars per share) | (0.03) | 0.27 | (0.33) | 1.35 |
(Loss) Income Applicable to Common Stock, per share (in dollars per share) | $ (0.03) | $ 0.27 | $ (0.33) | $ 1.35 |
TRANSACTIONS WITH AFFILIATES 71
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Narrative) (Details) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Aug. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Apr. 30, 2010USD ($)security | Sep. 30, 2017USD ($)securityshares | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)securityshares | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Jul. 31, 2006 | |
Related Party Transaction [Line Items] | |||||||||
Lease term | 1 year | ||||||||
Period management fee earned | 12 months | ||||||||
Manager advisory fee (as percent) | 1.50% | 1.50% | |||||||
Incentive compensation percentage (as percent) | 25.00% | 25.00% | |||||||
Simple interest rate in incentive calculation (as percent) | 10.00% | 10.00% | |||||||
Shares held by Fortress and affiliates (in shares) | shares | 5.1 | 5.1 | |||||||
Due to affiliates | $ 893 | $ 893 | $ 892 | ||||||
Number of securities (in securities) | security | 1 | 1 | |||||||
Investments in and advances to affiliates, at fair value, gross additions | $ 75,000 | ||||||||
Expected yield (as percent) | 22.50% | ||||||||
Proceeds from collection of notes receivable | $ 69,500 | $ 109,900 | |||||||
Interest income | $ 8,418 | $ 32,310 | $ 22,701 | $ 73,770 | |||||
CDO | |||||||||
Related Party Transaction [Line Items] | |||||||||
Number of securities (in securities) | security | 2 | ||||||||
Subprime Portfolio I | |||||||||
Related Party Transaction [Line Items] | |||||||||
Servicing fee percentage (as percent) | 0.50% | ||||||||
Subprime Portfolio I | Subprime Mortgage Loans Subject to Call Option | |||||||||
Related Party Transaction [Line Items] | |||||||||
Total securitized loans (unpaid principal balance) | 209,000 | 209,000 | |||||||
Subprime Portfolio II | Subprime Mortgage Loans Subject to Call Option | |||||||||
Related Party Transaction [Line Items] | |||||||||
Total securitized loans (unpaid principal balance) | $ 315,600 | $ 315,600 | |||||||
Affiliated Entity | |||||||||
Related Party Transaction [Line Items] | |||||||||
Stock options outstanding (in shares) | shares | 3.9 | 3.9 | |||||||
Interest income | $ 6,900 | $ 19,700 | $ 14,000 | $ 36,200 |
TRANSACTIONS WITH AFFILIATES 72
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Amounts Incurred Under Management Agreement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Transactions With Affiliates And Affiliated Entity [Abstract] | ||||
Management fees | $ 2,553 | $ 2,551 | $ 7,657 | $ 7,652 |
Expense reimbursement to the Manager | 125 | 125 | 375 | 375 |
Incentive compensation | 0 | 0 | 0 | 0 |
Total Management fee to affiliate | $ 2,678 | $ 2,676 | $ 8,032 | $ 8,027 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES (Details) | 3 Months Ended |
Sep. 30, 2017propertyrenewal | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease term | 20 years |
Number of renewal terms | renewal | 3 |
Renewal term | 5 years |
Loss Contingencies [Line Items] | |
Number of golf properties (in properties) | 77 |
Florida | Hurricane Irma | |
Loss Contingencies [Line Items] | |
Number of golf properties (in properties) | 3 |
INCOME TAXES (Provision for Inc
INCOME TAXES (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Current: | ||||
Federal | $ (2) | $ (37) | $ 1,047 | $ 27 |
State and Local | 0 | (1) | 0 | 20 |
Total Current (Benefit) Provision | (2) | (38) | 1,047 | 47 |
Deferred: | ||||
Federal | 0 | 0 | 0 | 83 |
State and Local | 0 | 0 | 0 | 14 |
Total Deferred Provision | 0 | 0 | 0 | 97 |
Total (Benefit) Provision for Income Taxes | $ (2) | $ (38) | $ 1,047 | $ 144 |
INCOME TAXES (Deferred Tax Asse
INCOME TAXES (Deferred Tax Assets and Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 379 | $ 358 |
Depreciation and amortization | 39,804 | 38,598 |
Accrued expenses | 2,285 | 2,885 |
Interest | 6,391 | 16,503 |
Net operating losses | 151,107 | 162,629 |
Capital losses | 9,241 | 0 |
Other | 3,151 | 2,036 |
Total deferred tax assets | 212,358 | 223,009 |
Less valuation allowance | (152,288) | (133,192) |
Net deferred tax assets | 60,070 | 89,817 |
Deferred tax liabilities: | ||
Leaseholds | 12,780 | 13,681 |
Cancellation of debt | 47,290 | 75,632 |
Other | 0 | 504 |
Total deferred tax liabilities | 60,070 | 89,817 |
Net deferred income tax assets | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 31, 2017 | Oct. 04, 2017 | Aug. 01, 2017 | May 04, 2017 | Feb. 27, 2017 | May 31, 2017 | Jan. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | |||||||||
Dividends declared | $ 4,185 | ||||||||
Series B preferred stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.609375 | $ 0.609375 | $ 0.609375 | ||||||
Preferred stock, dividend rate (as percent) | 9.75% | 9.75% | 9.75% | 9.75% | 9.75% | ||||
Series C preferred stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.503125 | $ 0.503125 | $ 0.503125 | ||||||
Preferred stock, dividend rate (as percent) | 8.05% | 8.05% | 8.05% | 8.05% | 8.05% | ||||
Series D preferred stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.523438 | $ 0.523438 | $ 0.523438 | ||||||
Preferred stock, dividend rate (as percent) | 8.375% | 8.375% | 8.375% | 8.375% | 8.375% | ||||
Issued to the independent directors | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares issued to independent directors (in shares) | 90,366 | 18,074 | |||||||
Subsequent event | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends declared | $ 1,400 | ||||||||
Subsequent event | Series B preferred stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.609375 | ||||||||
Preferred stock, dividend rate (as percent) | 9.75% | ||||||||
Subsequent event | Series C preferred stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.503125 | ||||||||
Preferred stock, dividend rate (as percent) | 8.05% | ||||||||
Subsequent event | Series D preferred stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends declared per share of preferred stock (in dollars per share) | $ 0.523438 | ||||||||
Preferred stock, dividend rate (as percent) | 8.375% | ||||||||
Subsequent event | Issued to the independent directors | Common Stock | |||||||||
Subsequent Event [Line Items] | |||||||||
Shares issued to independent directors (in shares) | 30,822 |