Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 27, 2018 | |
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 | Non-accelerated Filer | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Common Stock, Shares Outstanding | 66,977,104 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 125,659 | $ 167,692 |
Restricted cash | 3,859 | 5,178 |
Accounts receivable, net | 9,877 | 8,780 |
Real estate assets, held-for-sale | 165,261 | 2,000 |
Real estate securities, available-for-sale | 2,425 | 2,294 |
Other current assets | 25,171 | 21,568 |
Total Current Assets | 332,252 | 207,512 |
Restricted cash, noncurrent | 777 | 818 |
Property and equipment, net of accumulated depreciation | 93,592 | 241,258 |
Intangibles, net of accumulated amortization | 53,716 | 57,276 |
Other investments | 21,901 | 21,135 |
Other assets | 9,041 | 8,649 |
Total Assets | 511,279 | 536,648 |
Current Liabilities | ||
Obligations under capital leases | 5,158 | 4,652 |
Membership deposit liabilities | 8,972 | 8,733 |
Accounts payable and accrued expenses | 44,506 | 36,797 |
Deferred revenue | 10,614 | 31,207 |
Real estate liabilities, held-for-sale | 9,651 | 0 |
Other current liabilities | 15,145 | 22,596 |
Total Current Liabilities | 94,046 | 103,985 |
Credit facilities and obligations under capital leases | 112,268 | 112,105 |
Junior subordinated notes payable | 51,204 | 51,208 |
Membership deposit liabilities, noncurrent | 87,832 | 86,523 |
Deferred revenue, noncurrent | 7,608 | 6,930 |
Other liabilities | 5,480 | 4,846 |
Total Liabilities | 358,438 | 365,597 |
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 June 30, 2018 and December 31, 2017 | 61,583 | 61,583 |
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 66,977,104 and 66,977,104 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 670 | 670 |
Additional paid-in capital | 3,174,089 | 3,173,281 |
Accumulated deficit | (3,084,934) | (3,065,853) |
Accumulated other comprehensive income | 1,433 | 1,370 |
Total Equity | 152,841 | 171,051 |
Total Liabilities and Equity | $ 511,279 | $ 536,648 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
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) | 66,977,104 | 66,977,104 |
Common stock, shares outstanding (in shares) | 66,977,104 | 66,977,104 |
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 | 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 | 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 | 8.375% | 8.375% |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Total revenues | $ 91,004,000 | $ 81,360,000 | $ 157,664,000 | $ 140,501,000 |
Operating costs | ||||
Operating expenses | 67,042,000 | 62,028,000 | 124,421,000 | 112,537,000 |
Cost of sales - food and beverages | 6,193,000 | 6,009,000 | 10,233,000 | 10,041,000 |
General and administrative expense | 10,268,000 | 7,058,000 | 19,462,000 | 14,545,000 |
Management fee to affiliate | 0 | 2,677,000 | 0 | 5,354,000 |
Depreciation and amortization | 4,315,000 | 5,972,000 | 9,863,000 | 11,765,000 |
Pre-opening costs | 247,000 | 50,000 | 1,803,000 | 50,000 |
Impairment | 0 | 32,000 | 1,473,000 | 32,000 |
Realized and unrealized (gain) loss on investments | (89,000) | 3,287,000 | (331,000) | 6,676,000 |
Total operating costs | 87,976,000 | 87,113,000 | 166,924,000 | 161,000,000 |
Operating income (loss) | 3,028,000 | (5,753,000) | (9,260,000) | (20,499,000) |
Other income (expenses) | ||||
Interest and investment income | 469,000 | 6,395,000 | 915,000 | 14,283,000 |
Interest expense, net | (4,601,000) | (5,131,000) | (8,650,000) | (10,565,000) |
Other (loss) income, net | (3,699,000) | 293,000 | (4,105,000) | 170,000 |
Total other income (expenses) | (7,831,000) | 1,557,000 | (11,840,000) | 3,888,000 |
Loss before income tax | (4,803,000) | (4,196,000) | (21,100,000) | (16,611,000) |
Income tax expense | 0 | 510,000 | 0 | 1,049,000 |
Net Loss | (4,803,000) | (4,706,000) | (21,100,000) | (17,660,000) |
Preferred dividends | (1,395,000) | (1,395,000) | (2,790,000) | (2,790,000) |
Loss Applicable to Common Stockholders | $ (6,198,000) | $ (6,101,000) | $ (23,890,000) | $ (20,450,000) |
Loss Applicable to Common Stock, per share | ||||
Basic (in dollars per share) | $ (0.09) | $ (0.09) | $ (0.36) | $ (0.31) |
Diluted (in dollars per share) | $ (0.09) | $ (0.09) | $ (0.36) | $ (0.31) |
Weighted Average Number of Shares of Common Stock Outstanding | ||||
Basic (in shares) | 66,977,104 | 66,874,155 | 66,977,104 | 66,858,155 |
Diluted (in shares) | 66,977,104 | 66,874,155 | 66,977,104 | 66,858,155 |
Golf operations | ||||
Revenues | ||||
Total revenues | $ 69,150,000 | $ 60,639,000 | $ 122,704,000 | $ 106,935,000 |
Sales of food and beverages | ||||
Revenues | ||||
Total revenues | $ 21,854,000 | $ 20,721,000 | $ 34,960,000 | $ 33,566,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (4,803) | $ (4,706) | $ (21,100) | $ (17,660) |
Other comprehensive income (loss): | ||||
Net unrealized gain on available-for-sale securities | 30 | 1,220 | 63 | 1,267 |
Other comprehensive income | 30 | 1,220 | 63 | 1,267 |
Total comprehensive loss | (4,773) | (3,486) | (21,037) | (16,393) |
Comprehensive loss attributable to Drive Shack Inc. stockholders’ equity | $ (4,773) | $ (3,486) | $ (21,037) | $ (16,393) |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid- in Capital | Accumulated Deficit | Accumulated Other Comp. Income |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of ASC 606 (Note 3) | $ 4,809 | $ 4,809 | ||||
Equity (deficit), beginning (in shares) at Dec. 31, 2017 | 2,463,321 | 66,977,104 | ||||
Equity (deficit), beginning at Dec. 31, 2017 | 171,051 | $ 61,583 | $ 670 | $ 3,173,281 | (3,065,853) | $ 1,370 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared | (2,790) | (2,790) | ||||
Stock-based compensation | 808 | 808 | ||||
Comprehensive income (loss) | ||||||
Net loss | (21,100) | (21,100) | ||||
Other comprehensive income | 63 | 63 | ||||
Total comprehensive loss | (21,037) | |||||
Equity (deficit), ending (in shares) at Jun. 30, 2018 | 2,463,321 | 66,977,104 | ||||
Equity (deficit), ending at Jun. 30, 2018 | $ 152,841 | $ 61,583 | $ 670 | $ 3,174,089 | $ (3,084,934) | $ 1,433 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flows From Operating Activities | ||
Net loss | $ (21,100) | $ (17,660) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 9,863 | 11,765 |
Amortization of discount and premium | 588 | 1,176 |
Other amortization | 5,481 | 5,250 |
Net interest income on investments accrued to principal balance | 0 | (7,096) |
Amortization of revenue on golf membership deposit liabilities | (726) | (621) |
Amortization of prepaid golf membership dues | (12,990) | (13,208) |
Non-cash directors’ compensation | 0 | 375 |
Stock-based compensation | 808 | 0 |
Impairment | 1,473 | 32 |
Equity in earnings from equity method investments, net of distributions | (766) | (762) |
Loss on settlement of investments, net | 4,055 | 7,384 |
Unrealized (gain) loss on investments | (331) | (556) |
Loss on extinguishment of debt | 141 | 182 |
Change in: | ||
Accounts receivable, net, other current assets and other assets - noncurrent | (182) | (2,072) |
Accounts payable and accrued expenses, deferred revenue, other current liabilities and other liabilities - noncurrent | 1,801 | 4,325 |
Net cash used in operating activities | (11,885) | (11,486) |
Cash Flows From Investing Activities | ||
Principal repayments from investments | 0 | 19,376 |
Proceeds from sale of securities and loans | 0 | 286,751 |
Net payments for settlement of TBAs | 0 | (4,441) |
Acquisition and additions of property and equipment and intangibles | (23,715) | (7,752) |
Deposits paid on property and equipment | (4,162) | (147) |
Net cash (used in) provided by investing activities | (27,877) | 293,787 |
Cash Flows From Financing Activities | ||
Borrowings under debt obligations | 0 | 1,651 |
Repayments of debt obligations | (2,344) | (296,748) |
Margin deposits under repurchase agreements and derivatives | 0 | (73,735) |
Return of margin deposits under repurchase agreements and derivatives | 0 | 72,653 |
Golf membership deposits received | 1,735 | 1,733 |
Common stock dividends paid | 0 | (8,019) |
Preferred stock dividends paid | (2,790) | (2,790) |
Payment of deferred financing costs | 0 | (22) |
Other financing activities | (232) | (200) |
Net cash used in financing activities | (3,631) | (305,477) |
Net Decrease in Cash and Cash Equivalents, Restricted Cash and Restricted Cash, noncurrent | (43,393) | (23,176) |
Cash and Cash Equivalents, Restricted Cash and Restricted Cash, noncurrent, Beginning of Period | 173,688 | 146,544 |
Cash and Cash Equivalents, Restricted Cash and Restricted Cash, noncurrent, End of Period | 130,295 | 123,368 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ||
Preferred stock dividends declared but not paid | 930 | 930 |
Additions to capital lease assets and liabilities | 2,416 | 2,149 |
Additions to property and equipment and accounts payable | $ 6,882 | $ 1,870 |
ORGANIZATION
ORGANIZATION | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION Drive Shack Inc., which is referred to, together with its subsidiaries, “Drive Shack Inc.” or the “Company” is a leading owner and operator of golf-related leisure and entertainment businesses. 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 and (iii) corporate. For a further discussion of the reportable segments, see Note 4. The Company’s Traditional Golf business is one of the largest owners and operators of golf properties in the United States. As of June 30, 2018 , the Company owned, leased or managed 74 properties across 12 states. The Company opened its first Entertainment Golf venue in Orlando, Florida on April 7, 2018. The Company expects to open a chain of next-generation Entertainment Golf venues across the United States and internationally which combine golf, competition, dining and fun. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 13, 2018. Capitalized terms used herein, and not otherwise defined, are defined in the Company’s Consolidated Financial Statements for the year ended December 31, 2017 . As of June 30, 2018 , 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, 2017 . Prior Period Reclassification — Certain prior period amounts have been reclassified to conform to the current period's presentation. Effective January 1, 2018, the Company internalized management (as discussed above) and records corporate overhead, including corporate payroll and related expenses, in "General and administrative expense" on the Consolidated Statements of Operations. Prior to January 1, 2018, the Company reported corporate overhead, including corporate payroll and related expenses, related to the Traditional Golf business in "Operating expenses" on the Consolidated Statements of Operations. The Company reclassified $3.8 million and $7.8 million from "Operating expenses" to "General and administrative expense" for the three and six months ended June 30, 2017 . The Company adopted ASU 2015-18 Statement of Cash Flows (Topic 230), Restricted Cash effective January 1, 2018, which requires retrospective adjustment to all periods. The addition of the reconciliation of restricted cash for six months ended June 30, 2017 included an increase of $1.1 million in "Margin deposits under repurchase agreements and derivatives." REVENUE RECOGNITION Golf Operations Traditional Golf — Revenue from green fees, cart rentals, merchandise sales and other operating activities (consisting primarily of range income, banquets and club amenities) is generally recognized at the time of sale, when services are rendered and collection is reasonably assured. Revenue from membership dues for private club members and The Players Club members 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 for private club members and the following month for The Players Club members. 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 determination of the estimated average expected life of an active membership is a significant judgment based on company-specific historical membership addition and attrition data. 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. Revenue from the reimbursement of certain operating costs incurred at the Company’s managed Traditional Golf properties is recognized at the time the associated operating costs are incurred as collection is reasonably assured per the terms of the management contracts and the repayment histories of the property owners. Entertainment Golf — Revenue from bay play, events, and other operating activities (consisting primarily of instruction and merchandise sales) is generally recognized at the time of sale, when services are rendered and collection is reasonably assured. Revenue from general memberships is recognized at the time of sale. Dues from other membership programs are included in deferred revenue and recognized as revenue ratably over the appropriate period, which is generally twelve months or less. Sales of Food and Beverages — Revenue from food and beverage sales are recorded at the time of sale, net of discounts. Realized and Unrealized (Gain) Loss on Investments and Other Income (Loss), Net — These items are comprised of the following: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Loss on settlement of real estate securities — — $ — $ 2,803 Unrealized loss on securities, intent-to-sell — — — 558 (Gain) on settlement of loans held-for-sale — (12 ) — (12 ) Realized loss on settlement of TBAs, net — 6,915 — 4,441 Unrealized (gain) on non-hedge derivative instruments (89 ) (3,616 ) (331 ) (1,114 ) Realized and unrealized (gain) loss on investments $ (89 ) $ 3,287 $ (331 ) $ 6,676 Loss on lease modifications and terminations $ (25 ) $ (2 ) $ (796 ) $ (160 ) Loss on extinguishment of debt, net (89 ) (36 ) (141 ) (182 ) Collateral management fee income, net 146 126 301 248 Equity in earnings of equity method investments 387 383 766 762 Gain on disposal of long-lived assets 882 — 676 26 Other (loss) income (A) (5,000 ) (178 ) (4,911 ) (524 ) Other (loss) income, net $ (3,699 ) $ 293 $ (4,105 ) $ 170 (A) During the three months ended June 30, 2018 , the Company recorded a net loss of approximately $4.9 million related to the settlement of a legal dispute and a related discharge of liabilities assumed by the counterparty to the settlement. See Notes 13 and 15 for additional information. EXPENSE RECOGNITION Operating Expenses — Operating expenses consist primarily of payroll (Traditional Golf property level and Entertainment Golf venue level), utilities, repairs and maintenance, supplies, marketing and operating lease rent expense. Traditional Golf Operating expenses for Traditional Golf also include equipment and cart leases, seed, soil and fertilizer, and certain operating costs incurred at managed Traditional Golf properties. 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 initially 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 other current liabilities 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. Entertainment Golf Operating expenses for Entertainment Golf also include information technology-related support and maintenance. General and Administrative Expense — General and administrative expense consists of costs associated with corporate and administrative functions that support development and operations. Pre-Opening Costs — Pre-opening costs are expensed as incurred and consist primarily of marketing expenses, pre-opening rent, employee payroll, travel and related expenses, training costs, food, beverage and other restaurant operating expenses incurred prior to opening an Entertainment Golf venue. 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 June 30, 2018 , the Company has one interest rate cap with a fair value of $0.6 million which is not designated as a hedge. 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. The Company capitalizes to construction in progress certain costs related to properties under construction. 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. Traditional Golf With respect to Traditional Golf course improvements (included in buildings and improvements), costs associated with 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 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 obligations under capital leases, with a portion being recorded as interest expense under the effective interest method. Entertainment Golf Entertainment Golf includes land, furniture, fixtures and equipment and leasehold improvements including building and land improvements. 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 2-7 years 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 “Real estate assets, held-for-sale” and “Real estate liabilities, held-for-sale” on the Consolidated Balance Sheets. A disposal of a component of an entity or a group of components of an entity is 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. Intangibles, Net — Intangible assets and liabilities consist primarily of leasehold advantages (disadvantages), management contracts, membership base and internally-developed software. A leasehold advantage (disadvantage) exists to the Company when it pays a contracted rent that is below (above) market rents at the date of an acquisition 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 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 using the discounted cash flow method 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. The internally-developed software intangible represents proprietary software developed for the Company’s exclusive use. For Traditional Golf, the internally-developed software intangible is valued using the discounted cash flow method under the income approach at the date of an acquisition transaction. For Entertainment Golf, the internally-developed software intangible is composed of third-party costs and capitalized internal costs incurred to develop the software. The internally-developed software intangible is amortized over the expected useful life of the software. 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 2-26 years Management contracts 2-26 years Internally-developed software 5-10 years Membership base 7 years Liquor licenses Nonamortizable Membership Deposit Liabilities — Private country club members in our Traditional Golf business 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 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 Investment — 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 June 30, 2018 and December 31, 2017 , the carrying value of this investment was $21.9 million and $21.1 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. Other Current Assets The following table summarizes the Company's other current assets: June 30, 2018 December 31, 2017 Loans, held-for-sale, net (A) $ — $ 147 Prepaid expenses 4,280 3,081 Deposits 6,850 3,469 Inventory 4,986 4,722 Miscellaneous current assets, net 9,055 10,149 Other current assets $ 25,171 $ 21,568 (A) During the six months ended June 30, 2018 , the Company recorded an impairment of $ 0.2 million on a corporate loan. Other Assets The following table summarizes the Company's other assets: June 30, 2018 December 31, 2017 Prepaid expenses $ 7 $ 6 Deposits 2,114 2,213 Derivative assets 617 286 Miscellaneous assets, net 6,303 6,144 Other assets $ 9,041 $ 8,649 Other Current Liabilities The following table summarizes the Company's other current liabilities: June 30, 2018 December 31, 2017 Security deposits payable $ 7,068 $ 6,602 Accrued rent 2,950 2,160 Due to affiliates — 1,786 Dividends payable 930 930 Miscellaneous current liabilities 4,197 11,118 Other current liabilities $ 15,145 $ 22,596 Other Liabilities The following table summarizes the Company's other liabilities: June 30, 2018 December 31, 2017 Security deposits payable $ 238 $ 66 Unfavorable leasehold interests 2,963 3,374 Accrued rent 1,057 1,057 Miscellaneous liabilities 1,222 349 Other liabilities $ 5,480 $ 4,846 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. The Company adopted the new guidance effective January 1, 2018 using the modified retrospective method. See Note 3 for additional information. 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 Company adopted the new guidance effective January 1, 2018 and it did not have a material impact on the 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 continuing to evaluate the potential impacts of adopting the standard. A key change upon adoption will be the balance sheet recognition of all leased assets and liabilities. The Company's operating leases include ground leases, for certain of its properties and leased equipment which are not recognized on the balance sheet. The Company anticipates a right-of-use asset and a related lease liability will be recognized for these leases. There are also certain considerations related to internal control over financial reporting that are associated with implementing the new guidance under Topic 842. The Company is currently evaluating its control framework for lease accounting and identifying any changes that may need to be made in response to the new guidance. The Company will adopt the requirements of the new standard in the first quarter of 2019. 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 Company adopted the new guidance effective January 1, 2018 and it did not have a material impact on 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 Company adopted the new guidance effective January 1, 2018 and has included changes in restricted cash in the Consolidated Statements of Cash Flows for all periods presented. 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 Company adopted the new guidance effective January 1, 2018 and it did not have a material impact on the Consolidated Financial Statements. |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES On January 1, 2018, the Company adopted the new accounting standard ASC 606, Revenue from Contracts with Customers, and all the related amendments (“new revenue standard”) for all contracts using the modified retrospective method. The Company recognized the cumulative effect of initially applying the new revenue standard as a decrease to the 2018 opening balance of accumulated deficit of $ 4.8 million . The adjustment is due to the recognition of breakage on gift cards and gift certificates offered at the Company's Traditional Golf properties that are not expected to be redeemed based on historical redemption rates. The recognition of breakage on gift cards and gift certificates on an ongoing basis is expected to have an immaterial impact to the Company’s net income (loss). Also in accordance with the new revenue standard, certain operating costs incurred at the Company’s managed Traditional Golf properties and the reimbursements of those operating costs will now be recognized in Operating expenses and Golf operations, respectively. The reimbursements do not include a profit margin and therefore this change will have no net impact to the Company’s operating income (loss). The majority of the Company’s revenue continues to be recognized at the time of sale to customers at the Company’s Traditional Golf properties and Entertainment Golf venues, including green fees, cart rentals, bay play, events and sales of food, beverages and merchandise. Per the modified retrospective method, comparative information has not been restated to conform to these changes and continues to be reported under the accounting standards in effect for those periods. In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the Consolidated Balance Sheet and Statement of Operations was as follows: Consolidated Balance Sheet June 30, 2018 As reported Balances without Adoption of ASC 606 Effect of Change Liabilities Other current liabilities $ 15,145 $ 19,954 $ (4,809 ) Equity Accumulated Deficit $ (3,084,934 ) $ (3,089,743 ) $ 4,809 Consolidated Statement of Operations Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As reported Balances without Adoption of ASC 606 Effect of Change As reported Balances without Adoption of ASC 606 Effect of Change Revenues Golf operations $ 69,150 $ 63,022 $ 6,128 $ 122,704 $ 111,919 $ 10,785 Operating Costs Operating expenses $ 67,042 $ 60,914 $ 6,128 $ 124,421 $ 113,636 $ 10,785 The Company’s revenue is all generated within the Traditional and Entertainment Golf segments. The following table disaggregates revenue by category: public and private golf properties (owned and leased), managed golf properties and Entertainment golf venues. Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Public golf properties Private golf properties Managed golf properties Ent. golf venues Total Public golf properties Private golf properties Managed golf properties Ent. golf venues Total Golf operations 34,609 26,891 6,795 855 69,150 56,979 52,840 12,030 855 122,704 Sales of food and beverages 12,307 8,595 — 952 21,854 19,514 14,494 — 952 34,960 Total revenues $ 46,916 $ 35,486 $ 6,795 $ 1,807 $ 91,004 $ 76,493 $ 67,334 $ 12,030 $ 1,807 $ 157,664 |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company currently has three reportable segments: (i) Traditional Golf properties, (ii) Entertainment Golf venues and (iii) corporate. The chief operating decision maker (“CODM”) for each segment is our Chief Executive Officer, who reviews discrete financial information for each reportable segment to manage the Company, including resource allocation and performance assessment. Beginning as of the Company’s second fiscal quarter in 2018, the Company changed its reportable segments to reflect the manner in which our CODM manages our businesses, including resource allocation and performance assessment. As a result, the Debt Investments segment was combined with the corporate segment, to reflect the ongoing reduction in size of the Debt Investments segment. The Company's Traditional Golf business is one of the largest owners and operators of golf properties in the United States. As of June 30, 2018 , the Company owned, leased or managed 74 Traditional Golf properties across 12 states. Additionally, the Company opened its inaugural Entertainment Golf venue in Orlando, Florida on April 7, 2018 and expects to continue opening a chain of next-generation Entertainment Golf venues across the United States and internationally, which combine golf, competition, dining and fun. As of June 30, 2018, the Company completed the first quarter of operations at our inaugural Entertainment Golf venue. The corporate segment consists primarily of investments in loans and securities, interest income on short-term investments, general and administrative expenses as a public company, interest expense on the junior subordinated notes payable (Note 7), management fees pursuant to the Management Agreement prior to the Internalization effective January 1, 2018 (Note 12) and income tax expense (Note 14). 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 Corporate Total Six Months Ended June 30, 2018 Revenues Golf operations $ 121,849 $ 855 $ — $ 122,704 Sales of food and beverages 34,008 952 — 34,960 Total revenues 155,857 1,807 — 157,664 Operating costs Operating expenses (A) 122,586 1,835 — 124,421 Cost of sales - food and beverages 10,005 228 — 10,233 General and administrative expense 8,467 2,638 6,257 17,362 General and administrative expense - acquisition and transaction expenses (B) 508 1,454 138 2,100 Depreciation and amortization 9,320 535 8 9,863 Pre-opening costs (C) — 1,803 — 1,803 Impairment 1,326 — 147 1,473 Realized and unrealized (gain) on investments (331 ) — — (331 ) Total operating costs 151,881 8,493 6,550 166,924 Operating income (loss) 3,976 (6,686 ) (6,550 ) (9,260 ) Other income (expenses) Interest and investment income 96 112 707 915 Interest expense (D) (8,099 ) — (1,064 ) (9,163 ) Capitalized interest (D) 342 — 171 513 Other (loss) income, net (5,166 ) — 1,061 (4,105 ) Total other income (expenses) (12,827 ) 112 875 (11,840 ) Income tax expense — — — — Net loss (8,851 ) (6,574 ) (5,675 ) (21,100 ) Preferred dividends — — (2,790 ) (2,790 ) Loss applicable to common stockholders $ (8,851 ) $ (6,574 ) $ (8,465 ) $ (23,890 ) Summary segment financial data (continued). Traditional Golf Entertainment Golf Corporate Total Three Months Ended June 30, 2018 Revenues Golf operations $ 68,295 $ 855 $ — $ 69,150 Sales of food and beverages 20,902 952 — 21,854 Total revenues 89,197 1,807 — 91,004 Operating costs Operating expenses (A) 65,207 1,835 — 67,042 Cost of sales - food and beverages 5,965 228 — 6,193 General and administrative expense 4,313 1,535 3,961 9,809 General and administrative expense - acquisition and transaction expenses (B) 200 200 59 459 Depreciation and amortization 3,808 504 3 4,315 Pre-opening costs (C) — 247 — 247 Impairment — — — — Realized and unrealized (gain) on investments (89 ) — — (89 ) Total operating costs 79,404 4,549 4,023 87,976 Operating income (loss) 9,793 (2,742 ) (4,023 ) 3,028 Other income (expenses) Interest and investment income 45 84 340 469 Interest expense (D) (4,161 ) — (570 ) (4,731 ) Capitalized interest (D) 87 — 43 130 Other (loss) income, net (4,228 ) — 529 (3,699 ) Total other income (expenses) (8,257 ) 84 342 (7,831 ) Income tax expense — — — — Net income (loss) 1,536 (2,658 ) (3,681 ) (4,803 ) Preferred dividends — — (1,395 ) (1,395 ) Income (loss) applicable to common stockholders $ 1,536 $ (2,658 ) $ (5,076 ) $ (6,198 ) Traditional Golf Entertainment Golf Corporate (E) Total June 30, 2018 Total assets 322,989 86,951 101,339 511,279 Total liabilities 291,565 9,431 57,442 358,438 Preferred stock — — 61,583 61,583 Equity attributable to common stockholders $ 31,424 $ 77,520 $ (17,686 ) $ 91,258 Additions to property and equipment (including capital leases) during the six months ended June 30, 2018 $ 7,596 $ 16,828 $ — $ 24,424 Summary segment financial data (continued). Traditional Golf Entertainment Golf Corporate (F) Total Six Months Ended June 30, 2017 Revenues Golf operations $ 106,935 $ — $ — $ 106,935 Sales of food and beverages 33,566 — — 33,566 Total revenues 140,501 — — 140,501 Operating costs Operating expenses (A) 112,537 — — 112,537 Cost of sales - food and beverages 10,041 — — 10,041 General and administrative expense 8,298 43 3,282 11,623 General and administrative expense - acquisition and transaction expenses (B) 486 2,319 117 2,922 Management fee to affiliate — — 5,354 5,354 Depreciation and amortization 11,765 — — 11,765 Pre-opening costs (C) — 50 — 50 Impairment — — 32 32 Realized and unrealized loss on investments 285 — 6,391 6,676 Total operating costs 143,412 2,412 15,176 161,000 Operating loss (2,911 ) (2,412 ) (15,176 ) (20,499 ) Other income (expenses) Interest and investment income 72 — 14,211 14,283 Interest expense, net (D) (7,670 ) — (2,895 ) (10,565 ) Other (loss) income, net (834 ) — 1,004 170 Total other income (expenses) (8,432 ) — 12,320 3,888 Income tax expense — — 1,049 1,049 Net loss (11,343 ) (2,412 ) (3,905 ) (17,660 ) Preferred dividends — — (2,790 ) (2,790 ) Loss applicable to common stockholders $ (11,343 ) $ (2,412 ) $ (6,695 ) $ (20,450 ) Summary segment financial data (continued). Traditional Golf Entertainment Golf Corporate (F) Total Three Months Ended June 30, 2017 Revenues Golf operations $ 60,639 $ — $ — $ 60,639 Sales of food and beverages 20,721 — — 20,721 Total revenues 81,360 — — 81,360 Operating costs Operating expenses (A) 62,028 — — 62,028 Cost of sales - food and beverages 6,009 — — 6,009 General and administrative expense 4,106 27 1,657 5,790 General and administrative expense - acquisition and transaction expenses (B) 210 1,058 — 1,268 Management fee to affiliate — — 2,677 2,677 Depreciation and amortization 5,972 — — 5,972 Pre-opening costs (C) — 50 — 50 Impairment — — 32 32 Realized and unrealized loss on investments 165 — 3,122 3,287 Total operating costs 78,490 1,135 7,488 87,113 Operating income (loss) 2,870 (1,135 ) (7,488 ) (5,753 ) Other income (expenses) Interest and investment income 33 — 6,362 6,395 Interest expense, net (D) (3,853 ) — (1,278 ) (5,131 ) Other (loss) income, net (210 ) — 503 293 Total other income (expenses) (4,030 ) — 5,587 1,557 Income tax expense — — 510 510 Net loss (1,160 ) (1,135 ) (2,411 ) (4,706 ) Preferred dividends — — (1,395 ) (1,395 ) Loss applicable to common stockholders $ (1,160 ) $ (1,135 ) $ (3,806 ) $ (6,101 ) (A) Operating expenses includes rental expenses recorded under operating leases for carts and equipment in the amount of $0.6 million and $1.1 million for the three and six months ended June 30, 2018 , respectively, and $0.8 million and $1.6 million for the three and six months ended June 30, 2017 , respectively. Operating expenses also includes amortization of favorable and unfavorable lease intangibles in the amount of $1.0 million and $2.1 million for the three and six months ended June 30, 2018 , respectively, and $1.1 million and $2.1 million for the three and six months ended June 30, 2017 , respectively. (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. (C) Pre-opening costs are expensed as incurred and consist primarily of site-related marketing expenses, pre-opening rent, employee payroll, travel and related expenses, training costs, food, beverage and other restaurant operating expenses incurred prior to opening an Entertainment Golf venue. (D) Interest expense includes the accretion of membership deposit liabilities in the amount of $1.7 million and $3.4 million for the three and six months ended June 30, 2018 , respectively, and $1.6 million and $3.2 million for the three and six months ended June 30, 2017 , respectively. Interest expense and capitalized interest total to interest expense, net on the Consolidated Statements of Operations. (E) Total assets in the corporate segment include an equity method investment in the amount of $21.9 million as of June 30, 2018 recorded in other investments on the Consolidated Balance Sheets. See Note 2 for additional information. (F) The Debt Investments segment and corporate segment as reported previously are combined to conform to the current period's presentation. |
PROPERTY AND EQUIPMENT, NET OF
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION | 6 Months Ended |
Jun. 30, 2018 | |
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: June 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Depreciation Net Carrying Value Gross Carrying Amount Accumulated Depreciation Net Carrying Value Land $ 5,105 $ — $ 5,105 $ 88,251 $ — $ 88,251 Buildings and improvements 72,557 (24,941 ) 47,616 154,769 (52,636 ) 102,133 Furniture, fixtures and equipment 26,904 (16,255 ) 10,649 33,109 (23,451 ) 9,658 Capital leases - equipment 27,273 (10,834 ) 16,439 24,949 (8,649 ) 16,300 Construction in progress 13,783 — 13,783 24,916 — 24,916 Total Property and Equipment $ 145,622 $ (52,030 ) $ 93,592 $ 325,994 $ (84,736 ) $ 241,258 In February 2018, the lease on a golf property in Oklahoma was terminated and the Company exited the property. In June 2018, the lease on a golf property in California was terminated and the Company entered into a management agreement on this property. The management agreement is for a term of 10 years. On March 7, 2018, the Company announced it will actively pursue the sale of 26 owned Traditional Golf properties in order to generate capital for reinvestment in the Entertainment Golf business. The assets and associated liabilities are reported on the Consolidated Balance Sheets as “Real estate assets, held-for-sale” and “Real estate liabilities, held-for-sale,” respectively. The real estate assets, held-for-sale are reported at a carrying value of $ 165.3 million and include $ 83.8 million of land, $ 74.3 million of buildings and improvements, $ 4.8 million of furniture, fixtures and equipment, and $ 2.4 million of other related assets. The real estate liabilities, held-for-sale are reported at a carrying value of $ 9.7 million and include property liabilities to be assumed, primarily prepaid membership dues. See Note 15 for additional information. The Company has assessed the real estate assets, held-for-sale and determined that the carrying value of one property exceeded the fair value less anticipated costs to sell. As a result, the Company recognized an impairment loss totaling approximately $ 1.3 million for the six months ended June 30, 2018 . The fair value measurement was based on the pricing in a letter of intent and internal valuation models. The significant inputs used to value these real estate investments fall within Level 3 for fair value reporting. |
INTANGIBLES, NET OF ACCUMULATED
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION | 6 Months Ended |
Jun. 30, 2018 | |
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: June 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade name $ 700 $ (105 ) $ 595 $ 700 $ (93 ) $ 607 Leasehold intangibles (A) 48,107 (18,797 ) 29,310 48,107 (16,716 ) 31,391 Management contracts 34,583 (14,424 ) 20,159 35,111 (13,468 ) 21,643 Internally-developed software 1,692 (738 ) 954 800 (640 ) 160 Membership base 5,236 (3,366 ) 1,870 5,236 (2,992 ) 2,244 Nonamortizable liquor licenses 828 — 828 1,231 — 1,231 Total Intangibles $ 91,146 $ (37,430 ) $ 53,716 $ 91,185 $ (33,909 ) $ 57,276 (A) The amortization expense for leasehold intangibles is reported in operating expenses in the Consolidated Statements of Operations. |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
DEBT OBLIGATIONS | DEBT OBLIGATIONS The following table presents certain information regarding the Company’s debt obligations at June 30, 2018 : 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 102,000 100,590 Jul 2019 LIBOR+4.70% 7.92 % 1.0 102,000 Vineyard II Dec 1993 200 200 Dec 2043 2.20% 2.20 % 25.5 200 Capital leases (Equipment) Jun 2014 - Jun 2018 16,636 16,636 Sep 2018 - Dec 2023 3.00% to 16.16% 6.67 % 3.4 — 118,836 117,426 7.73 % 1.4 102,200 Less current portion of obligations under capital leases 5,158 5,158 Credit facilities and obligations under capital leases - noncurrent 113,678 112,268 Corporate Junior subordinated notes payable (E) Mar 2006 51,004 51,204 Apr 2035 LIBOR+2.25% 4.58 % 16.8 51,004 Total debt obligations $ 169,840 $ 168,630 6.78 % 6.0 $ 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 $1.4 million as of June 30, 2018 . (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% . 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 June 30, 2018 are as follows: July 1, 2018 - December 31, 2018 $ 3,068 2019 6,002 2020 4,725 2021 3,158 2022 1,385 2023 364 Total minimum lease payments 18,702 Less: imputed interest 2,066 Present value of net minimum lease payments $ 16,636 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 June 30, 2018 . |
REAL ESTATE SECURITIES
REAL ESTATE SECURITIES | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 , 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. June 30, 2018 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 $ 2,512 $ (1,521 ) $ 991 $ 1,434 $ — $ 2,425 1 CCC 2.48 % 22.98 % 7.3 35.4 % Total Securities, Available for Sale (E) $ 4,000 $ 2,512 $ (1,521 ) $ 991 $ 1,434 $ — $ 2,425 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. The collateral securing the ABS - Non-Agency RMBS is located in various geographical regions in the US. The Company does not have significant investments in any geographic region, thus a downturn in market conditions would not have a material negative impact on the Company. The Company had no securities in an unrealized loss position as of June 30, 2018 . The Company has no activity related to credit losses on debt securities for the six months ended June 30, 2018 . |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The Company’s derivative instrument is an interest rate cap with a fair value of $0.6 million and $0.3 million as of June 30, 2018 and December 31, 2017 , respectively, and is recorded within other assets on the Consolidated Balance Sheets. The Company had no derivative liabilities as of both June 30, 2018 and December 31, 2017 . The following table summarizes (gains) losses recorded in relation to derivatives: Three Months Ended June 30, Six Months Ended June 30, Income Statement Location 2018 2017 2018 2017 Non-hedge derivatives Unrealized (gain) loss on interest rate derivatives Realized and unrealized (gain) loss on investments $ (89 ) $ 165 $ (331 ) $ 285 Unrealized (gain) recognized related to TBAs Realized and unrealized (gain) loss on investments — (3,781 ) — (1,399 ) Realized loss on settlement of TBAs Realized and unrealized (gain) loss on investments — 6,915 — 4,441 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 : Carrying Value Estimated Fair Value Fair Value Method (A) Assets Real estate securities, available-for-sale $ 2,425 $ 2,425 Pricing models - Level 3 Cash and cash equivalents 125,659 125,659 Restricted cash, current and noncurrent 4,636 4,636 Non-hedge derivative assets (B) 617 617 Counterparty quotations - Level 2 Liabilities Credit facilities - Traditional Golf term loan 100,590 103,200 Pricing models - Level 3 Junior subordinated notes payable 51,204 30,255 Pricing models - Level 3 (A) 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) 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. 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. 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 June 30, 2018 : Weighted Average Significant Input Asset Type Amortized Cost Basis Fair Value Discount Prepayment Cumulative Default Rate Loss ABS - Non-Agency RMBS $ 991 $ 2,425 12.0 % 5.0 % 3.7 % 66.7 % 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. Real estate securities measured at fair value on a recurring basis using Level 3 inputs changed during the six months ended June 30, 2018 as follows: ABS - Non-Agency RMBS Balance at December 31, 2017 $ 2,294 Total gains (losses) (A) Included in other comprehensive income (loss) 63 Amortization included in interest income 110 Purchases, sales and repayments (A) Proceeds (42 ) Balance at June 30, 2018 $ 2,425 (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 six months ended June 30, 2018 . There were no transfers into or out of Level 3 during the six months ended June 30, 2018 . 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 | 6 Months Ended |
Jun. 30, 2018 | |
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 six months ended June 30, 2018 : Number of Options Weighted Average Strike Price Weighted Average Life Remaining (in years) Balance at December 31, 2017 5,010,576 $ 2.55 Balance at June 30, 2018 5,010,576 $ 2.55 5.09 Exercisable at June 30, 2018 2,705,586 $ 2.64 5.14 As of June 30, 2018 , the Company’s outstanding options were summarized as follows: Issued in 2011 and thereafter Held by the former Manager 2,705,253 Issued to the former Manager and subsequently transferred to certain of the Manager’s employees (A) 2,304,990 Issued to the independent directors 333 Total 5,010,576 Weighted average strike price $ 2.55 (A) The Company and the former Manager agreed that options held by certain employees formerly employed by the Manager will not terminate or be forfeited as a result of the Termination and Cooperation Agreement, and the vesting of such options will relate to the relevant holder’s employment with the Company and its affiliates following January 1, 2018. In both February 2017 and April 2018, the former Manager issued 1,152,495 options to certain employees formerly employed by the Manager as part of their compensation. The valuation of the employee options has been determined using the Black-Scholes option valuation model. The Black-Scholes option valuation model uses assumptions of expected volatility, expected dividend yield of the Company’s stock, expected term of the awards and the risk-free interest rate. The fair value of the options was determined using the following assumptions: Option Valuation Date January 1, 2018 April 10, 2018 Expected Volatility 39.73 % 35.66 % Expected Dividend Yield 0.00 % 0.00 % Expected Remaining Term 3.0 - 6.6 years 2.7 - 6.3 years Risk-Free Rate 2.16 - 2.29% 2.68 - 2.82% Fair Value at Valuation Date $ 4,272 $ 3,558 The options granted to the Company's employees fully vest and are exercisable one year prior to the option expiration date, beginning March 2020 through January 2024. Stock-based compensation expense is recognized on a straight-line basis through the vesting date of the options. Stock-based compensation expense related to the employee options was $0.5 million and $0.8 million during the three and six months ended June 30, 2018 , respectively, and was recorded in general and administrative expense on the Consolidated Statements of Operations. The unrecognized stock-based compensation expense related to the unvested options was $7.0 million as of June 30, 2018 and will be expensed over a weighted average of 4.2 years . On March 6, 2018 , 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, 2018 and ending April 30, 2018. Dividends totaling $1.4 million were paid on April 30, 2018 . On May 2, 2018 , 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, 2018 and ending July 31, 2018. Dividends totaling $1.4 million were paid on July 31, 2018 . 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator for basic and diluted earnings per share: Loss from continuing operations after preferred dividends and noncontrolling interests $ (6,198 ) $ (6,101 ) $ (23,890 ) $ (20,450 ) Loss Applicable to Common Stockholders $ (6,198 ) $ (6,101 ) $ (23,890 ) $ (20,450 ) Denominator: Denominator for basic earnings per share - weighted average shares 66,977,104 66,874,155 66,977,104 66,858,155 Effect of dilutive securities Options — — — — Denominator for diluted earnings per share - adjusted weighted average shares 66,977,104 66,874,155 66,977,104 66,858,155 Basic earnings per share: Loss from continuing operations per share of common stock, after preferred dividends and noncontrolling interests $ (0.09 ) $ (0.09 ) $ (0.36 ) $ (0.31 ) Loss Applicable to Common Stock, per share $ (0.09 ) $ (0.09 ) $ (0.36 ) $ (0.31 ) Diluted earnings per share: Loss from continuing operations per share of common stock, after preferred dividends and noncontrolling interests $ (0.09 ) $ (0.09 ) $ (0.36 ) $ (0.31 ) Loss Applicable to Common Stock, per share $ (0.09 ) $ (0.09 ) $ (0.36 ) $ (0.31 ) 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 both the three and six months ended June 30, 2018 , the Company had zero antidilutive options. During the three and six months ended June 30, 2017 , the Company had 85,238 and 118,054 antidilutive options, respectively. During the three and six months ended June 30, 2018 based on the treasury stock method, the Company had 2,893,372 and 2,702,628 potentially dilutive common stock equivalents, respectively, which were excluded due to the Company's loss position. During the three and six months ended June 30, 2017 based on the treasury stock method, the Company had 1,556,785 and 1,748,034 potentially dilutive common stock equivalents, respectively, which were excluded due to the Company's loss position. 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 | 6 Months Ended |
Jun. 30, 2018 | |
Transactions With Affiliates And Affiliated Entity [Abstract] | |
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES | TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES Agreements with the Former Manager On December 21, 2017, the Company entered into definitive agreements with the former Manager to internalize the Company’s management (the “Internalization”). In connection with the termination of the existing Management Agreement, the Company made a payment of $ 10.7 million to the former Manager in December 2017. The Internalization became effective on January 1, 2018. On December 21, 2017, the Company entered into a Transition Services Agreement, effective as of January 1, 2018, with the former Manager. In order to facilitate the transition of the Company’s management of its operations and provide the Company sufficient time to develop such services in-house or to hire other third-party service providers for such services, under the Transition Services Agreement, the former Manager continues to provide to the Company certain services (“Transition Services”). The Transition Services primarily include information technology, legal, regulatory compliance, tax and accounting services. The Transition Services are provided for a fee intended to be equal to the former Manager’s cost of providing the Transition Services, including the allocated cost of, among other things, overhead, employee wages and compensation and out-of-pocket expenses, and will be invoiced on a monthly basis. The Company incurred $ 0.2 million and $0.4 million in costs for Transition Services during the three and six months ended June 30, 2018 , and these costs are reported in general and administrative expense on the Consolidated Statements of Operations. Amounts incurred under the Management Agreement Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Management fees $ — $ 2,552 $ — $ 5,104 Expense reimbursement to the Manager — 125 — 250 Incentive compensation — — — — Total Management fee to affiliate $ — $ 2,677 $ — $ 5,354 At June 30, 2018 , Fortress, through its affiliates, and principals of Fortress, owned 7.3 million shares of the Company’s common stock and Fortress, through its affiliates, had options relating to an additional 2.7 million shares of the Company’s common stock (Note 11). At December 31, 2017 , due to affiliates was comprised of $1.8 million in management fees and expense reimbursements payable to the former Manager. Other Affiliated Entities A member of the Board of Directors owned or leased aircraft that the Company chartered from a third-party aircraft operator for business purposes in the course of operations. The Company incurred less than $0.1 million for the six months ended June 30, 2018 . The Company paid the aircraft operator market rates for the charters. The Company leases corporate office space from an affiliate of a member of our Board of Directors. The Company has accrued $0.4 million in rent expense for the six months ended June 30, 2018 , which represents market rates for the office space. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation - The Company exited a leased property and accrued related lease exit costs of approximately $ 0.8 million in December 2016. The Company subsequently entered into a legal dispute related to this golf property and settled the dispute in July 2018 (see Note 15). In June 2018, the Company accrued an additional $6.6 million for a total of $7.4 million to settle this legal dispute which is recorded as accounts payable and accrued expenses in the Consolidated Balance Sheet. 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 June 30, 2018 , 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. In March 2017, the Company entered into a ground lease in Richmond, Virginia. During December 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 reopened 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 has incurred $5.2 million in property repair costs related to Hurricane Irma of which $1.0 million was incurred in 2018. The Company expects to incur an additional $0.5 to $1.0 million in property repair costs in 2018. The Company was reimbursed $2.0 million and $3.0 million by the insurer in 2017 and 2018 , respectively. Property repair costs and insurance reimbursement are recorded in operating expenses on the Consolidated Statements of Operations. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's income tax provision (benefit) for interim periods is determined using an estimate of the Company's annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. The Company's income tax provision was zero for both the three and six months ended June 30, 2018 . The Company's income tax provision for the three and six months ended June 30, 2017 was $0.5 million and $1.0 million , respectively. 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 June 30, 2018 as management does not believe that it is more likely than not that the deferred tax assets will be realized. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. The Tax Act significantly revised the U.S. corporate income tax regime by, among other things, lowering corporate income tax rates and eliminating the alternative minimum tax (“AMT”) for corporate taxpayers. The Company accounted for the effects of the Tax Act for the year ended December 31, 2017 which included the re-measurement of deferred tax assets and liabilities due to the reduction in the corporate income tax rate and booked a non-recurring income tax receivable in the amount of $ 0.6 million due to refundable AMT credits. Due to the full valuation allowance, the re-measurement of deferred tax assets and liabilities had no impact on the income tax provision. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS These Consolidated Financial Statements include a discussion of material events, if any, that have occurred subsequent to June 30, 2018 through the issuance of these Consolidated Financial Statements. On July 20, 2018, the Company settled a legal dispute (see Note 13) for $7.4 million , with $5.2 million payable immediately and $2.2 million payable in six quarterly installments beginning in September 2018, with the final payment due in December 2019. On July 31, 2018, the Company closed on the sale of a private golf property in Georgia for total proceeds of $3.5 million . The property had carrying value of $3.0 million resulting in an approximate gain on sale of $0.5 million , net of closing costs. On August 2, 2018, 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 August 1, 2018 and ending October 31, 2018. Dividends totaling $1.4 million will be paid on October 31, 2018 to stockholders of record on October 1, 2018. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2017 and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on March 13, 2018. Capitalized terms used herein, and not otherwise defined, are defined in the Company’s Consolidated Financial Statements for the year ended December 31, 2017 . |
Revenue Recognition | REVENUE RECOGNITION Golf Operations Traditional Golf — Revenue from green fees, cart rentals, merchandise sales and other operating activities (consisting primarily of range income, banquets and club amenities) is generally recognized at the time of sale, when services are rendered and collection is reasonably assured. Revenue from membership dues for private club members and The Players Club members 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 for private club members and the following month for The Players Club members. 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 determination of the estimated average expected life of an active membership is a significant judgment based on company-specific historical membership addition and attrition data. 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. Revenue from the reimbursement of certain operating costs incurred at the Company’s managed Traditional Golf properties is recognized at the time the associated operating costs are incurred as collection is reasonably assured per the terms of the management contracts and the repayment histories of the property owners. Entertainment Golf — Revenue from bay play, events, and other operating activities (consisting primarily of instruction and merchandise sales) is generally recognized at the time of sale, when services are rendered and collection is reasonably assured. Revenue from general memberships is recognized at the time of sale. Dues from other membership programs are included in deferred revenue and recognized as revenue ratably over the appropriate period, which is generally twelve months or less. Sales of Food and Beverages — Revenue from food and beverage sales are recorded at the time of sale, net of discounts. |
Operating Expenses | Operating Expenses — Operating expenses consist primarily of payroll (Traditional Golf property level and Entertainment Golf venue level), utilities, repairs and maintenance, supplies, marketing and operating lease rent expense. Traditional Golf Operating expenses for Traditional Golf also include equipment and cart leases, seed, soil and fertilizer, and certain operating costs incurred at managed Traditional Golf properties. 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 initially 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 other current liabilities 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. Entertainment Golf Operating expenses for Entertainment Golf also include information technology-related support and maintenance. |
General and Administrative Expense | General and Administrative Expense — General and administrative expense consists of costs associated with corporate and administrative functions that support development and operations. |
Pre-Opening Costs | Pre-Opening Costs — Pre-opening costs are expensed as incurred and consist primarily of marketing expenses, pre-opening rent, employee payroll, travel and related expenses, training costs, food, beverage and other restaurant operating expenses incurred prior to opening an Entertainment Golf venue. |
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. |
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. The Company capitalizes to construction in progress certain costs related to properties under construction. 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. Traditional Golf With respect to Traditional Golf course improvements (included in buildings and improvements), costs associated with 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 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 obligations under capital leases, with a portion being recorded as interest expense under the effective interest method. Entertainment Golf Entertainment Golf includes land, furniture, fixtures and equipment and leasehold improvements including building and land improvements. 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 2-7 years 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 “Real estate assets, held-for-sale” and “Real estate liabilities, held-for-sale” on the Consolidated Balance Sheets. A disposal of a component of an entity or a group of components of an entity is 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. |
Intangibles, Net | Intangibles, Net — Intangible assets and liabilities consist primarily of leasehold advantages (disadvantages), management contracts, membership base and internally-developed software. A leasehold advantage (disadvantage) exists to the Company when it pays a contracted rent that is below (above) market rents at the date of an acquisition 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 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 using the discounted cash flow method 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. The internally-developed software intangible represents proprietary software developed for the Company’s exclusive use. For Traditional Golf, the internally-developed software intangible is valued using the discounted cash flow method under the income approach at the date of an acquisition transaction. For Entertainment Golf, the internally-developed software intangible is composed of third-party costs and capitalized internal costs incurred to develop the software. The internally-developed software intangible is amortized over the expected useful life of the software. 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 2-26 years Management contracts 2-26 years Internally-developed software 5-10 years Membership base 7 years Liquor licenses Nonamortizable |
Membership Deposit Liabilities | Membership Deposit Liabilities — Private country club members in our Traditional Golf business 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 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 Investment | Other Investment — 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 June 30, 2018 and December 31, 2017 , the carrying value of this investment was $21.9 million and $21.1 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. |
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. The Company adopted the new guidance effective January 1, 2018 using the modified retrospective method. See Note 3 for additional information. 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 Company adopted the new guidance effective January 1, 2018 and it did not have a material impact on the 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 continuing to evaluate the potential impacts of adopting the standard. A key change upon adoption will be the balance sheet recognition of all leased assets and liabilities. The Company's operating leases include ground leases, for certain of its properties and leased equipment which are not recognized on the balance sheet. The Company anticipates a right-of-use asset and a related lease liability will be recognized for these leases. There are also certain considerations related to internal control over financial reporting that are associated with implementing the new guidance under Topic 842. The Company is currently evaluating its control framework for lease accounting and identifying any changes that may need to be made in response to the new guidance. The Company will adopt the requirements of the new standard in the first quarter of 2019. 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 Company adopted the new guidance effective January 1, 2018 and it did not have a material impact on 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 Company adopted the new guidance effective January 1, 2018 and has included changes in restricted cash in the Consolidated Statements of Cash Flows for all periods presented. 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 Company adopted the new guidance effective January 1, 2018 and it did not have a material impact on the Consolidated Financial Statements. |
Fair Value Measurements | 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. 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. 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. 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. |
Valuation of Options | The valuation of the employee options has been determined using the Black-Scholes option valuation model. The Black-Scholes option valuation model uses assumptions of expected volatility, expected dividend yield of the Company’s stock, expected term of the awards and the risk-free interest rate. |
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) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Loss on settlement of real estate securities — — $ — $ 2,803 Unrealized loss on securities, intent-to-sell — — — 558 (Gain) on settlement of loans held-for-sale — (12 ) — (12 ) Realized loss on settlement of TBAs, net — 6,915 — 4,441 Unrealized (gain) on non-hedge derivative instruments (89 ) (3,616 ) (331 ) (1,114 ) Realized and unrealized (gain) loss on investments $ (89 ) $ 3,287 $ (331 ) $ 6,676 Loss on lease modifications and terminations $ (25 ) $ (2 ) $ (796 ) $ (160 ) Loss on extinguishment of debt, net (89 ) (36 ) (141 ) (182 ) Collateral management fee income, net 146 126 301 248 Equity in earnings of equity method investments 387 383 766 762 Gain on disposal of long-lived assets 882 — 676 26 Other (loss) income (A) (5,000 ) (178 ) (4,911 ) (524 ) Other (loss) income, net $ (3,699 ) $ 293 $ (4,105 ) $ 170 (A) During the three months ended June 30, 2018 , the Company recorded a net loss of approximately $4.9 million related to the settlement of a legal dispute and a related discharge of liabilities assumed by the counterparty to the settlement. See Notes 13 and 15 for additional information. |
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 2-7 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 2-26 years Management contracts 2-26 years Internally-developed software 5-10 years Membership base 7 years Liquor licenses Nonamortizable |
Schedule of other current assets | The following table summarizes the Company's other current assets: June 30, 2018 December 31, 2017 Loans, held-for-sale, net (A) $ — $ 147 Prepaid expenses 4,280 3,081 Deposits 6,850 3,469 Inventory 4,986 4,722 Miscellaneous current assets, net 9,055 10,149 Other current assets $ 25,171 $ 21,568 (A) During the six months ended June 30, 2018 , the Company recorded an impairment of $ 0.2 million on a corporate loan. |
Schedule of other assets | The following table summarizes the Company's other assets: June 30, 2018 December 31, 2017 Prepaid expenses $ 7 $ 6 Deposits 2,114 2,213 Derivative assets 617 286 Miscellaneous assets, net 6,303 6,144 Other assets $ 9,041 $ 8,649 |
Schedule of other current liabilities | The following table summarizes the Company's other current liabilities: June 30, 2018 December 31, 2017 Security deposits payable $ 7,068 $ 6,602 Accrued rent 2,950 2,160 Due to affiliates — 1,786 Dividends payable 930 930 Miscellaneous current liabilities 4,197 11,118 Other current liabilities $ 15,145 $ 22,596 |
Schedule of other liabilities | The following table summarizes the Company's other liabilities: June 30, 2018 December 31, 2017 Security deposits payable $ 238 $ 66 Unfavorable leasehold interests 2,963 3,374 Accrued rent 1,057 1,057 Miscellaneous liabilities 1,222 349 Other liabilities $ 5,480 $ 4,846 |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on the Consolidated Balance Sheet and Statement of Operations was as follows: Consolidated Balance Sheet June 30, 2018 As reported Balances without Adoption of ASC 606 Effect of Change Liabilities Other current liabilities $ 15,145 $ 19,954 $ (4,809 ) Equity Accumulated Deficit $ (3,084,934 ) $ (3,089,743 ) $ 4,809 Consolidated Statement of Operations Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As reported Balances without Adoption of ASC 606 Effect of Change As reported Balances without Adoption of ASC 606 Effect of Change Revenues Golf operations $ 69,150 $ 63,022 $ 6,128 $ 122,704 $ 111,919 $ 10,785 Operating Costs Operating expenses $ 67,042 $ 60,914 $ 6,128 $ 124,421 $ 113,636 $ 10,785 |
Disaggregation of Revenue | The following table disaggregates revenue by category: public and private golf properties (owned and leased), managed golf properties and Entertainment golf venues. Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Public golf properties Private golf properties Managed golf properties Ent. golf venues Total Public golf properties Private golf properties Managed golf properties Ent. golf venues Total Golf operations 34,609 26,891 6,795 855 69,150 56,979 52,840 12,030 855 122,704 Sales of food and beverages 12,307 8,595 — 952 21,854 19,514 14,494 — 952 34,960 Total revenues $ 46,916 $ 35,486 $ 6,795 $ 1,807 $ 91,004 $ 76,493 $ 67,334 $ 12,030 $ 1,807 $ 157,664 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Corporate Total Six Months Ended June 30, 2018 Revenues Golf operations $ 121,849 $ 855 $ — $ 122,704 Sales of food and beverages 34,008 952 — 34,960 Total revenues 155,857 1,807 — 157,664 Operating costs Operating expenses (A) 122,586 1,835 — 124,421 Cost of sales - food and beverages 10,005 228 — 10,233 General and administrative expense 8,467 2,638 6,257 17,362 General and administrative expense - acquisition and transaction expenses (B) 508 1,454 138 2,100 Depreciation and amortization 9,320 535 8 9,863 Pre-opening costs (C) — 1,803 — 1,803 Impairment 1,326 — 147 1,473 Realized and unrealized (gain) on investments (331 ) — — (331 ) Total operating costs 151,881 8,493 6,550 166,924 Operating income (loss) 3,976 (6,686 ) (6,550 ) (9,260 ) Other income (expenses) Interest and investment income 96 112 707 915 Interest expense (D) (8,099 ) — (1,064 ) (9,163 ) Capitalized interest (D) 342 — 171 513 Other (loss) income, net (5,166 ) — 1,061 (4,105 ) Total other income (expenses) (12,827 ) 112 875 (11,840 ) Income tax expense — — — — Net loss (8,851 ) (6,574 ) (5,675 ) (21,100 ) Preferred dividends — — (2,790 ) (2,790 ) Loss applicable to common stockholders $ (8,851 ) $ (6,574 ) $ (8,465 ) $ (23,890 ) Summary segment financial data (continued). Traditional Golf Entertainment Golf Corporate Total Three Months Ended June 30, 2018 Revenues Golf operations $ 68,295 $ 855 $ — $ 69,150 Sales of food and beverages 20,902 952 — 21,854 Total revenues 89,197 1,807 — 91,004 Operating costs Operating expenses (A) 65,207 1,835 — 67,042 Cost of sales - food and beverages 5,965 228 — 6,193 General and administrative expense 4,313 1,535 3,961 9,809 General and administrative expense - acquisition and transaction expenses (B) 200 200 59 459 Depreciation and amortization 3,808 504 3 4,315 Pre-opening costs (C) — 247 — 247 Impairment — — — — Realized and unrealized (gain) on investments (89 ) — — (89 ) Total operating costs 79,404 4,549 4,023 87,976 Operating income (loss) 9,793 (2,742 ) (4,023 ) 3,028 Other income (expenses) Interest and investment income 45 84 340 469 Interest expense (D) (4,161 ) — (570 ) (4,731 ) Capitalized interest (D) 87 — 43 130 Other (loss) income, net (4,228 ) — 529 (3,699 ) Total other income (expenses) (8,257 ) 84 342 (7,831 ) Income tax expense — — — — Net income (loss) 1,536 (2,658 ) (3,681 ) (4,803 ) Preferred dividends — — (1,395 ) (1,395 ) Income (loss) applicable to common stockholders $ 1,536 $ (2,658 ) $ (5,076 ) $ (6,198 ) Traditional Golf Entertainment Golf Corporate (E) Total June 30, 2018 Total assets 322,989 86,951 101,339 511,279 Total liabilities 291,565 9,431 57,442 358,438 Preferred stock — — 61,583 61,583 Equity attributable to common stockholders $ 31,424 $ 77,520 $ (17,686 ) $ 91,258 Additions to property and equipment (including capital leases) during the six months ended June 30, 2018 $ 7,596 $ 16,828 $ — $ 24,424 Summary segment financial data (continued). Traditional Golf Entertainment Golf Corporate (F) Total Six Months Ended June 30, 2017 Revenues Golf operations $ 106,935 $ — $ — $ 106,935 Sales of food and beverages 33,566 — — 33,566 Total revenues 140,501 — — 140,501 Operating costs Operating expenses (A) 112,537 — — 112,537 Cost of sales - food and beverages 10,041 — — 10,041 General and administrative expense 8,298 43 3,282 11,623 General and administrative expense - acquisition and transaction expenses (B) 486 2,319 117 2,922 Management fee to affiliate — — 5,354 5,354 Depreciation and amortization 11,765 — — 11,765 Pre-opening costs (C) — 50 — 50 Impairment — — 32 32 Realized and unrealized loss on investments 285 — 6,391 6,676 Total operating costs 143,412 2,412 15,176 161,000 Operating loss (2,911 ) (2,412 ) (15,176 ) (20,499 ) Other income (expenses) Interest and investment income 72 — 14,211 14,283 Interest expense, net (D) (7,670 ) — (2,895 ) (10,565 ) Other (loss) income, net (834 ) — 1,004 170 Total other income (expenses) (8,432 ) — 12,320 3,888 Income tax expense — — 1,049 1,049 Net loss (11,343 ) (2,412 ) (3,905 ) (17,660 ) Preferred dividends — — (2,790 ) (2,790 ) Loss applicable to common stockholders $ (11,343 ) $ (2,412 ) $ (6,695 ) $ (20,450 ) Summary segment financial data (continued). Traditional Golf Entertainment Golf Corporate (F) Total Three Months Ended June 30, 2017 Revenues Golf operations $ 60,639 $ — $ — $ 60,639 Sales of food and beverages 20,721 — — 20,721 Total revenues 81,360 — — 81,360 Operating costs Operating expenses (A) 62,028 — — 62,028 Cost of sales - food and beverages 6,009 — — 6,009 General and administrative expense 4,106 27 1,657 5,790 General and administrative expense - acquisition and transaction expenses (B) 210 1,058 — 1,268 Management fee to affiliate — — 2,677 2,677 Depreciation and amortization 5,972 — — 5,972 Pre-opening costs (C) — 50 — 50 Impairment — — 32 32 Realized and unrealized loss on investments 165 — 3,122 3,287 Total operating costs 78,490 1,135 7,488 87,113 Operating income (loss) 2,870 (1,135 ) (7,488 ) (5,753 ) Other income (expenses) Interest and investment income 33 — 6,362 6,395 Interest expense, net (D) (3,853 ) — (1,278 ) (5,131 ) Other (loss) income, net (210 ) — 503 293 Total other income (expenses) (4,030 ) — 5,587 1,557 Income tax expense — — 510 510 Net loss (1,160 ) (1,135 ) (2,411 ) (4,706 ) Preferred dividends — — (1,395 ) (1,395 ) Loss applicable to common stockholders $ (1,160 ) $ (1,135 ) $ (3,806 ) $ (6,101 ) (A) Operating expenses includes rental expenses recorded under operating leases for carts and equipment in the amount of $0.6 million and $1.1 million for the three and six months ended June 30, 2018 , respectively, and $0.8 million and $1.6 million for the three and six months ended June 30, 2017 , respectively. Operating expenses also includes amortization of favorable and unfavorable lease intangibles in the amount of $1.0 million and $2.1 million for the three and six months ended June 30, 2018 , respectively, and $1.1 million and $2.1 million for the three and six months ended June 30, 2017 , respectively. (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. (C) Pre-opening costs are expensed as incurred and consist primarily of site-related marketing expenses, pre-opening rent, employee payroll, travel and related expenses, training costs, food, beverage and other restaurant operating expenses incurred prior to opening an Entertainment Golf venue. (D) Interest expense includes the accretion of membership deposit liabilities in the amount of $1.7 million and $3.4 million for the three and six months ended June 30, 2018 , respectively, and $1.6 million and $3.2 million for the three and six months ended June 30, 2017 , respectively. Interest expense and capitalized interest total to interest expense, net on the Consolidated Statements of Operations. (E) Total assets in the corporate segment include an equity method investment in the amount of $21.9 million as of June 30, 2018 recorded in other investments on the Consolidated Balance Sheets. See Note 2 for additional information. (F) The Debt Investments segment and corporate segment as reported previously are combined to conform to the current period's presentation. |
PROPERTY AND EQUIPMENT, NET O27
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | The following table summarizes the Company’s property and equipment: June 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Depreciation Net Carrying Value Gross Carrying Amount Accumulated Depreciation Net Carrying Value Land $ 5,105 $ — $ 5,105 $ 88,251 $ — $ 88,251 Buildings and improvements 72,557 (24,941 ) 47,616 154,769 (52,636 ) 102,133 Furniture, fixtures and equipment 26,904 (16,255 ) 10,649 33,109 (23,451 ) 9,658 Capital leases - equipment 27,273 (10,834 ) 16,439 24,949 (8,649 ) 16,300 Construction in progress 13,783 — 13,783 24,916 — 24,916 Total Property and Equipment $ 145,622 $ (52,030 ) $ 93,592 $ 325,994 $ (84,736 ) $ 241,258 |
INTANGIBLES, NET OF ACCUMULAT28
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | The following table summarizes the Company’s intangible assets: June 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Trade name $ 700 $ (105 ) $ 595 $ 700 $ (93 ) $ 607 Leasehold intangibles (A) 48,107 (18,797 ) 29,310 48,107 (16,716 ) 31,391 Management contracts 34,583 (14,424 ) 20,159 35,111 (13,468 ) 21,643 Internally-developed software 1,692 (738 ) 954 800 (640 ) 160 Membership base 5,236 (3,366 ) 1,870 5,236 (2,992 ) 2,244 Nonamortizable liquor licenses 828 — 828 1,231 — 1,231 Total Intangibles $ 91,146 $ (37,430 ) $ 53,716 $ 91,185 $ (33,909 ) $ 57,276 (A) The amortization expense for leasehold intangibles is reported in operating expenses in the Consolidated Statements of Operations. |
DEBT OBLIGATIONS (Tables)
DEBT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt obligations | The following table presents certain information regarding the Company’s debt obligations at June 30, 2018 : 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 102,000 100,590 Jul 2019 LIBOR+4.70% 7.92 % 1.0 102,000 Vineyard II Dec 1993 200 200 Dec 2043 2.20% 2.20 % 25.5 200 Capital leases (Equipment) Jun 2014 - Jun 2018 16,636 16,636 Sep 2018 - Dec 2023 3.00% to 16.16% 6.67 % 3.4 — 118,836 117,426 7.73 % 1.4 102,200 Less current portion of obligations under capital leases 5,158 5,158 Credit facilities and obligations under capital leases - noncurrent 113,678 112,268 Corporate Junior subordinated notes payable (E) Mar 2006 51,004 51,204 Apr 2035 LIBOR+2.25% 4.58 % 16.8 51,004 Total debt obligations $ 169,840 $ 168,630 6.78 % 6.0 $ 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 $1.4 million as of June 30, 2018 . (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 June 30, 2018 are as follows: July 1, 2018 - December 31, 2018 $ 3,068 2019 6,002 2020 4,725 2021 3,158 2022 1,385 2023 364 Total minimum lease payments 18,702 Less: imputed interest 2,066 Present value of net minimum lease payments $ 16,636 |
REAL ESTATE SECURITIES (Tables)
REAL ESTATE SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 , 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. June 30, 2018 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 $ 2,512 $ (1,521 ) $ 991 $ 1,434 $ — $ 2,425 1 CCC 2.48 % 22.98 % 7.3 35.4 % Total Securities, Available for Sale (E) $ 4,000 $ 2,512 $ (1,521 ) $ 991 $ 1,434 $ — $ 2,425 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. The collateral securing the ABS - Non-Agency RMBS is located in various geographical regions in the US. The Company does not have significant investments in any geographic region, thus a downturn in market conditions would not have a material negative impact on the Company. |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, Six Months Ended June 30, Income Statement Location 2018 2017 2018 2017 Non-hedge derivatives Unrealized (gain) loss on interest rate derivatives Realized and unrealized (gain) loss on investments $ (89 ) $ 165 $ (331 ) $ 285 Unrealized (gain) recognized related to TBAs Realized and unrealized (gain) loss on investments — (3,781 ) — (1,399 ) Realized loss on settlement of TBAs Realized and unrealized (gain) loss on investments — 6,915 — 4,441 |
FAIR VALUE OF FINANCIAL INSTR32
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 : Carrying Value Estimated Fair Value Fair Value Method (A) Assets Real estate securities, available-for-sale $ 2,425 $ 2,425 Pricing models - Level 3 Cash and cash equivalents 125,659 125,659 Restricted cash, current and noncurrent 4,636 4,636 Non-hedge derivative assets (B) 617 617 Counterparty quotations - Level 2 Liabilities Credit facilities - Traditional Golf term loan 100,590 103,200 Pricing models - Level 3 Junior subordinated notes payable 51,204 30,255 Pricing models - Level 3 (A) 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) Represents an interest rate cap (Note 9). |
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 June 30, 2018 : Weighted Average Significant Input Asset Type Amortized Cost Basis Fair Value Discount Prepayment Cumulative Default Rate Loss ABS - Non-Agency RMBS $ 991 $ 2,425 12.0 % 5.0 % 3.7 % 66.7 % |
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 six months ended June 30, 2018 as follows: ABS - Non-Agency RMBS Balance at December 31, 2017 $ 2,294 Total gains (losses) (A) Included in other comprehensive income (loss) 63 Amortization included in interest income 110 Purchases, sales and repayments (A) Proceeds (42 ) Balance at June 30, 2018 $ 2,425 (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 six months ended June 30, 2018 . There were no transfers into or out of Level 3 during the six months ended June 30, 2018 . |
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) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of outstanding options | The following is a summary of the changes in the Company’s outstanding options for the six months ended June 30, 2018 : Number of Options Weighted Average Strike Price Weighted Average Life Remaining (in years) Balance at December 31, 2017 5,010,576 $ 2.55 Balance at June 30, 2018 5,010,576 $ 2.55 5.09 Exercisable at June 30, 2018 2,705,586 $ 2.64 5.14 |
Schedule of outstanding options summary | As of June 30, 2018 , the Company’s outstanding options were summarized as follows: Issued in 2011 and thereafter Held by the former Manager 2,705,253 Issued to the former Manager and subsequently transferred to certain of the Manager’s employees (A) 2,304,990 Issued to the independent directors 333 Total 5,010,576 Weighted average strike price $ 2.55 (A) The Company and the former Manager agreed that options held by certain employees formerly employed by the Manager will not terminate or be forfeited as a result of the Termination and Cooperation Agreement, and the vesting of such options will relate to the relevant holder’s employment with the Company and its affiliates following January 1, 2018. In both February 2017 and April 2018, the former Manager issued 1,152,495 options to certain employees formerly employed by the Manager as part of their compensation. |
Schedule of assumptions for valuation of options | The fair value of the options was determined using the following assumptions: Option Valuation Date January 1, 2018 April 10, 2018 Expected Volatility 39.73 % 35.66 % Expected Dividend Yield 0.00 % 0.00 % Expected Remaining Term 3.0 - 6.6 years 2.7 - 6.3 years Risk-Free Rate 2.16 - 2.29% 2.68 - 2.82% Fair Value at Valuation Date $ 4,272 $ 3,558 |
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Numerator for basic and diluted earnings per share: Loss from continuing operations after preferred dividends and noncontrolling interests $ (6,198 ) $ (6,101 ) $ (23,890 ) $ (20,450 ) Loss Applicable to Common Stockholders $ (6,198 ) $ (6,101 ) $ (23,890 ) $ (20,450 ) Denominator: Denominator for basic earnings per share - weighted average shares 66,977,104 66,874,155 66,977,104 66,858,155 Effect of dilutive securities Options — — — — Denominator for diluted earnings per share - adjusted weighted average shares 66,977,104 66,874,155 66,977,104 66,858,155 Basic earnings per share: Loss from continuing operations per share of common stock, after preferred dividends and noncontrolling interests $ (0.09 ) $ (0.09 ) $ (0.36 ) $ (0.31 ) Loss Applicable to Common Stock, per share $ (0.09 ) $ (0.09 ) $ (0.36 ) $ (0.31 ) Diluted earnings per share: Loss from continuing operations per share of common stock, after preferred dividends and noncontrolling interests $ (0.09 ) $ (0.09 ) $ (0.36 ) $ (0.31 ) Loss Applicable to Common Stock, per share $ (0.09 ) $ (0.09 ) $ (0.36 ) $ (0.31 ) |
TRANSACTIONS WITH AFFILIATES 34
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Transactions With Affiliates And Affiliated Entity [Abstract] | |
Schedule of amounts Incurred under management agreement | Amounts incurred under the Management Agreement Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Management fees $ — $ 2,552 $ — $ 5,104 Expense reimbursement to the Manager — 125 — 250 Incentive compensation — — — — Total Management fee to affiliate $ — $ 2,677 $ — $ 5,354 |
ORGANIZATION (Details)
ORGANIZATION (Details) | Jun. 30, 2018stateproperty |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of golf properties | property | 74 |
Number of states in which properties owned | state | 12 |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)derivative_instrument | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | ||||
Refundable term for initiation fees | 30 years | |||
Expected life of active golf membership | 7 years | |||
Period to recognize membership dues | 12 months | |||
Derivative [Line Items] | ||||
Return of margin deposits under repurchase agreements and derivatives | $ 0 | $ 72,653 | ||
Ownership in equity investment (as percent) | 22.00% | |||
Other investments | $ 21,901 | $ 21,135 | ||
Interest rate cap | ||||
Derivative [Line Items] | ||||
Interest rate derivative instruments not designated as hedging instruments at fair value, net | $ 600 | |||
Interest rate cap | Non-hedge derivatives | ||||
Derivative [Line Items] | ||||
Number of interest rate derivatives held (in derivatives) | derivative_instrument | 1 | |||
Lower Range | ||||
Derivative [Line Items] | ||||
Operating lease term | 10 years | |||
Upper Range | ||||
Derivative [Line Items] | ||||
Operating lease term | 20 years | |||
Accounting Standards Update 2015-18 | ||||
Derivative [Line Items] | ||||
Return of margin deposits under repurchase agreements and derivatives | 1,100 | |||
Reclassification Adjustment | Operating Expense | ||||
Derivative [Line Items] | ||||
Corporate overhead | $ (3,800) | (7,800) | ||
Reclassification Adjustment | General and Administrative Expense | ||||
Derivative [Line Items] | ||||
Corporate overhead | $ 3,800 | $ 7,800 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Realized and unrealized (gain) loss on investments and other income, net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Realized and unrealized (gain) loss on investments | ||||
Loss on settlement of real estate securities | $ 0 | $ 0 | $ 0 | $ 2,803 |
Unrealized loss on securities, intent-to-sell | 0 | 0 | 0 | 558 |
(Gain) on settlement of loans held-for-sale | 0 | (12) | 0 | (12) |
Realized loss on settlement of TBAs, net | 0 | 6,915 | 0 | 4,441 |
Unrealized (gain) on non-hedge derivative instruments | (89) | (3,616) | (331) | (1,114) |
Realized and unrealized (gain) loss on investments | (89) | 3,287 | (331) | 6,676 |
Other (loss) income, net | ||||
Loss on lease modifications and terminations | (25) | (2) | (796) | (160) |
Loss on extinguishment of debt, net | (89) | (36) | (141) | (182) |
Collateral management fee income, net | 146 | 126 | 301 | 248 |
Equity in earnings of equity method investments | 387 | 383 | 766 | 762 |
Gain on disposal of long-lived assets | 882 | 0 | 676 | 26 |
Other (loss) income (A) | (5,000) | (178) | (4,911) | (524) |
Other (loss) income, net | (3,699) | $ 293 | $ (4,105) | $ 170 |
Loss related to settlement of legal dispute | $ 4,900 |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated useful lives) (Details) | 6 Months Ended |
Jun. 30, 2018 | |
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 | 2 years |
Furniture, fixtures and equipment | Upper Range | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Estimated useful lives for amortization) (Details) | 6 Months Ended |
Jun. 30, 2018 | |
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 | 2 years |
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 | 2 years |
Management contracts | Upper Range | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 26 years |
Internally-developed software | Lower Range | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 5 years |
Internally-developed software | Upper Range | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 10 years |
Membership base | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 7 years |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other current assets) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | ||
Loans, held-for-sale, net | $ 0 | $ 147 |
Prepaid expenses | 4,280 | 3,081 |
Deposits | 6,850 | 3,469 |
Inventory | 4,986 | 4,722 |
Miscellaneous current assets, net | 9,055 | 10,149 |
Other current assets | 25,171 | $ 21,568 |
Impairment of loans held-for-sale, net | $ 200 |
SUMMARY OF SIGNIFICANT ACCOUN41
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other assets) (Details) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Prepaid expenses | $ 7 | $ 6 |
Deposits | 2,114 | 2,213 |
Derivative assets | 617 | 286 |
Miscellaneous assets, net | 6,303 | 6,144 |
Other assets | $ 9,041 | $ 8,649 |
SUMMARY OF SIGNIFICANT ACCOUN42
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other current liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Security deposits payable | $ 7,068 | $ 6,602 |
Accrued rent | 2,950 | 2,160 |
Due to affiliates | 0 | 1,786 |
Dividends payable | 930 | 930 |
Miscellaneous current liabilities | 4,197 | 11,118 |
Other current liabilities | $ 15,145 | $ 22,596 |
SUMMARY OF SIGNIFICANT ACCOUN43
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Other liabilities) (Details) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Security deposits payable | $ 238 | $ 66 |
Unfavorable leasehold interests | 2,963 | 3,374 |
Accrued rent | 1,057 | 1,057 |
Miscellaneous liabilities | 1,222 | 349 |
Other liabilities | $ 5,480 | $ 4,846 |
REVENUES - Impact of Adoption
REVENUES - Impact of Adoption of New Revenue Standard Requirements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |
Liabilities | ||||||
Other current liabilities | $ 15,145 | $ 15,145 | $ 22,596 | |||
Equity | ||||||
Accumulated Deficit | (3,084,934) | (3,084,934) | $ (3,065,853) | |||
Revenues | ||||||
Golf operations | 91,004 | 157,664 | ||||
Operating costs | ||||||
Operating expenses | 67,042 | $ 62,028 | 124,421 | $ 112,537 | ||
Golf operations | ||||||
Revenues | ||||||
Golf operations | 69,150 | 122,704 | ||||
Balances without Adoption of ASC 606 | ||||||
Liabilities | ||||||
Other current liabilities | 19,954 | 19,954 | ||||
Equity | ||||||
Accumulated Deficit | (3,089,743) | (3,089,743) | ||||
Operating costs | ||||||
Operating expenses | 60,914 | 113,636 | ||||
Balances without Adoption of ASC 606 | Golf operations | ||||||
Revenues | ||||||
Golf operations | 63,022 | 111,919 | ||||
Effect of Change | Accounting Standards Update 2014-09 | ||||||
Liabilities | ||||||
Other current liabilities | (4,809) | (4,809) | ||||
Equity | ||||||
Accumulated Deficit | 4,809 | 4,809 | $ 4,800 | |||
Operating costs | ||||||
Operating expenses | 6,128 | 10,785 | ||||
Effect of Change | Accounting Standards Update 2014-09 | Golf operations | ||||||
Revenues | ||||||
Golf operations | $ 6,128 | $ 10,785 |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 91,004 | $ 157,664 |
Golf operations, public golf properties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 34,609 | 56,979 |
Golf operations, private golf properties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 26,891 | 52,840 |
Golf operations, managed golf properties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 6,795 | 12,030 |
Golf operations, ent. golf venues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 855 | 855 |
Golf operations | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 69,150 | 122,704 |
Food and beverage, public golf properties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 12,307 | 19,514 |
Food and beverage, private golf properties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 8,595 | 14,494 |
Food and beverage, managed golf properties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 0 | 0 |
Food and beverage, ent. golf venues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 952 | 952 |
Food and beverages | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 21,854 | 34,960 |
Public golf properties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 46,916 | 76,493 |
Private golf properties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 35,486 | 67,334 |
Managed golf properties | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 6,795 | 12,030 |
Ent. golf venues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 1,807 | $ 1,807 |
SEGMENT REPORTING (Narrative) (
SEGMENT REPORTING (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2018statesegmentproperty | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 3 |
Number of golf properties | property | 74 |
Number of states in which properties owned | state | 12 |
Traditional Golf | Operating Segments | |
Segment Reporting Information [Line Items] | |
Number of golf properties | property | 74 |
Number of states in which properties owned | state | 12 |
SEGMENT REPORTING (Segment Repo
SEGMENT REPORTING (Segment Reporting) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Revenues | |||||
Total revenues | $ 91,004,000 | $ 81,360,000 | $ 157,664,000 | $ 140,501,000 | |
Operating costs | |||||
Operating expenses | 67,042,000 | 62,028,000 | 124,421,000 | 112,537,000 | |
Cost of sales - food and beverages | 6,193,000 | 6,009,000 | 10,233,000 | 10,041,000 | |
General and administrative expense | 9,809,000 | 5,790,000 | 17,362,000 | 11,623,000 | |
General and administrative expense - acquisition and transaction expenses | 459,000 | 1,268,000 | 2,100,000 | 2,922,000 | |
Management fee to affiliate | 0 | 2,677,000 | 0 | 5,354,000 | |
Depreciation and amortization | 4,315,000 | 5,972,000 | 9,863,000 | 11,765,000 | |
Pre-opening costs | 247,000 | 50,000 | 1,803,000 | 50,000 | |
Impairment | 0 | 32,000 | 1,473,000 | 32,000 | |
Realized and unrealized (gain) on investments | (89,000) | 3,287,000 | (331,000) | 6,676,000 | |
Total operating costs | 87,976,000 | 87,113,000 | 166,924,000 | 161,000,000 | |
Operating income (loss) | 3,028,000 | (5,753,000) | (9,260,000) | (20,499,000) | |
Other income (expenses) | |||||
Interest and investment income | 469,000 | 6,395,000 | 915,000 | 14,283,000 | |
Interest expense, net | (4,601,000) | (5,131,000) | (8,650,000) | (10,565,000) | |
Interest expense | (4,731,000) | (9,163,000) | |||
Capitalized interest | 130,000 | 513,000 | |||
Other (loss) income, net | (3,699,000) | 293,000 | (4,105,000) | 170,000 | |
Total other income (expenses) | (7,831,000) | 1,557,000 | (11,840,000) | 3,888,000 | |
Income tax expense | 0 | 510,000 | 0 | 1,049,000 | |
Net Loss | (4,803,000) | (4,706,000) | (21,100,000) | (17,660,000) | |
Preferred dividends | (1,395,000) | (1,395,000) | (2,790,000) | (2,790,000) | |
Loss Applicable to Common Stockholders | (6,198,000) | (6,101,000) | (23,890,000) | (20,450,000) | |
Total assets | 511,279,000 | 511,279,000 | $ 536,648,000 | ||
Total liabilities | 358,438,000 | 358,438,000 | 365,597,000 | ||
Preferred stock | 61,583,000 | 61,583,000 | 61,583,000 | ||
Equity attributable to common stockholders | 91,258,000 | 91,258,000 | |||
Additions to property and equipment (including capital leases) during the six months ended June 30, 2018 | 24,424,000 | ||||
Rental expenses recorded under operating leases | 600,000 | 800,000 | 1,100,000 | 1,600,000 | |
Amortization of intangibles | 1,000,000 | 1,100,000 | 2,100,000 | 2,100,000 | |
Equity method investment | 21,901,000 | 21,901,000 | $ 21,135,000 | ||
Golf operations | |||||
Revenues | |||||
Total revenues | 69,150,000 | 60,639,000 | 122,704,000 | 106,935,000 | |
Food and beverages | |||||
Revenues | |||||
Total revenues | 21,854,000 | 20,721,000 | 34,960,000 | 33,566,000 | |
Traditional Golf | Operating Segments | |||||
Revenues | |||||
Total revenues | 89,197,000 | 81,360,000 | 155,857,000 | 140,501,000 | |
Operating costs | |||||
Operating expenses | 65,207,000 | 62,028,000 | 122,586,000 | 112,537,000 | |
Cost of sales - food and beverages | 5,965,000 | 6,009,000 | 10,005,000 | 10,041,000 | |
General and administrative expense | 4,313,000 | 4,106,000 | 8,467,000 | 8,298,000 | |
General and administrative expense - acquisition and transaction expenses | 200,000 | 210,000 | 508,000 | 486,000 | |
Management fee to affiliate | 0 | 0 | |||
Depreciation and amortization | 3,808,000 | 5,972,000 | 9,320,000 | 11,765,000 | |
Pre-opening costs | 0 | 0 | 0 | 0 | |
Impairment | 0 | 0 | 1,326,000 | 0 | |
Realized and unrealized (gain) on investments | (89,000) | 165,000 | (331,000) | 285,000 | |
Total operating costs | 79,404,000 | 78,490,000 | 151,881,000 | 143,412,000 | |
Operating income (loss) | 9,793,000 | 2,870,000 | 3,976,000 | (2,911,000) | |
Other income (expenses) | |||||
Interest and investment income | 45,000 | 33,000 | 96,000 | 72,000 | |
Interest expense, net | (3,853,000) | (7,670,000) | |||
Interest expense | (4,161,000) | (8,099,000) | |||
Capitalized interest | 87,000 | 342,000 | |||
Other (loss) income, net | (4,228,000) | (210,000) | (5,166,000) | (834,000) | |
Total other income (expenses) | (8,257,000) | (4,030,000) | (12,827,000) | (8,432,000) | |
Income tax expense | 0 | 0 | 0 | 0 | |
Net Loss | 1,536,000 | (1,160,000) | (8,851,000) | (11,343,000) | |
Preferred dividends | 0 | 0 | 0 | 0 | |
Loss Applicable to Common Stockholders | 1,536,000 | (1,160,000) | (8,851,000) | (11,343,000) | |
Total assets | 322,989,000 | 322,989,000 | |||
Total liabilities | 291,565,000 | 291,565,000 | |||
Preferred stock | 0 | 0 | |||
Equity attributable to common stockholders | 31,424,000 | 31,424,000 | |||
Additions to property and equipment (including capital leases) during the six months ended June 30, 2018 | 7,596,000 | ||||
Traditional Golf | Operating Segments | Golf operations | |||||
Revenues | |||||
Total revenues | 68,295,000 | 60,639,000 | 121,849,000 | 106,935,000 | |
Traditional Golf | Operating Segments | Food and beverages | |||||
Revenues | |||||
Total revenues | 20,902,000 | 20,721,000 | 34,008,000 | 33,566,000 | |
Entertainment Golf | |||||
Other income (expenses) | |||||
Accretion of membership deposit liabilities | 1,700,000 | 1,600,000 | 3,400,000 | 3,200,000 | |
Entertainment Golf | Operating Segments | |||||
Revenues | |||||
Total revenues | 1,807,000 | 0 | 1,807,000 | 0 | |
Operating costs | |||||
Operating expenses | 1,835,000 | 0 | 1,835,000 | 0 | |
Cost of sales - food and beverages | 228,000 | 0 | 228,000 | 0 | |
General and administrative expense | 1,535,000 | 27,000 | 2,638,000 | 43,000 | |
General and administrative expense - acquisition and transaction expenses | 200,000 | 1,058,000 | 1,454,000 | 2,319,000 | |
Management fee to affiliate | 0 | 0 | |||
Depreciation and amortization | 504,000 | 0 | 535,000 | 0 | |
Pre-opening costs | 247,000 | 50,000 | 1,803,000 | 50,000 | |
Impairment | 0 | 0 | 0 | 0 | |
Realized and unrealized (gain) on investments | 0 | 0 | 0 | 0 | |
Total operating costs | 4,549,000 | 1,135,000 | 8,493,000 | 2,412,000 | |
Operating income (loss) | (2,742,000) | (1,135,000) | (6,686,000) | (2,412,000) | |
Other income (expenses) | |||||
Interest and investment income | 84,000 | 0 | 112,000 | 0 | |
Interest expense, net | 0 | 0 | |||
Interest expense | 0 | 0 | |||
Capitalized interest | 0 | 0 | |||
Other (loss) income, net | 0 | 0 | 0 | 0 | |
Total other income (expenses) | 84,000 | 0 | 112,000 | 0 | |
Income tax expense | 0 | 0 | 0 | 0 | |
Net Loss | (2,658,000) | (1,135,000) | (6,574,000) | (2,412,000) | |
Preferred dividends | 0 | 0 | 0 | 0 | |
Loss Applicable to Common Stockholders | (2,658,000) | (1,135,000) | (6,574,000) | (2,412,000) | |
Total assets | 86,951,000 | 86,951,000 | |||
Total liabilities | 9,431,000 | 9,431,000 | |||
Preferred stock | 0 | 0 | |||
Equity attributable to common stockholders | 77,520,000 | 77,520,000 | |||
Additions to property and equipment (including capital leases) during the six months ended June 30, 2018 | 16,828,000 | ||||
Entertainment Golf | Operating Segments | Golf operations | |||||
Revenues | |||||
Total revenues | 855,000 | 0 | 855,000 | 0 | |
Entertainment Golf | Operating Segments | Food and beverages | |||||
Revenues | |||||
Total revenues | 952,000 | 0 | 952,000 | 0 | |
Corporate | Operating Segments | |||||
Revenues | |||||
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 | 3,961,000 | 1,657,000 | 6,257,000 | 3,282,000 | |
General and administrative expense - acquisition and transaction expenses | 59,000 | 0 | 138,000 | 117,000 | |
Management fee to affiliate | 2,677,000 | 5,354,000 | |||
Depreciation and amortization | 3,000 | 0 | 8,000 | 0 | |
Pre-opening costs | 0 | 0 | 0 | 0 | |
Impairment | 0 | 32,000 | 147,000 | 32,000 | |
Realized and unrealized (gain) on investments | 0 | 3,122,000 | 0 | 6,391,000 | |
Total operating costs | 4,023,000 | 7,488,000 | 6,550,000 | 15,176,000 | |
Operating income (loss) | (4,023,000) | (7,488,000) | (6,550,000) | (15,176,000) | |
Other income (expenses) | |||||
Interest and investment income | 340,000 | 6,362,000 | 707,000 | 14,211,000 | |
Interest expense, net | (1,278,000) | (2,895,000) | |||
Interest expense | (570,000) | (1,064,000) | |||
Capitalized interest | 43,000 | 171,000 | |||
Other (loss) income, net | 529,000 | 503,000 | 1,061,000 | 1,004,000 | |
Total other income (expenses) | 342,000 | 5,587,000 | 875,000 | 12,320,000 | |
Income tax expense | 0 | 510,000 | 0 | 1,049,000 | |
Net Loss | (3,681,000) | (2,411,000) | (5,675,000) | (3,905,000) | |
Preferred dividends | (1,395,000) | (1,395,000) | (2,790,000) | (2,790,000) | |
Loss Applicable to Common Stockholders | (5,076,000) | (3,806,000) | (8,465,000) | (6,695,000) | |
Total assets | 101,339,000 | 101,339,000 | |||
Total liabilities | 57,442,000 | 57,442,000 | |||
Preferred stock | 61,583,000 | 61,583,000 | |||
Equity attributable to common stockholders | (17,686,000) | (17,686,000) | |||
Additions to property and equipment (including capital leases) during the six months ended June 30, 2018 | 0 | ||||
Equity method investment | 21,900,000 | 21,900,000 | |||
Corporate | Operating Segments | Golf operations | |||||
Revenues | |||||
Total revenues | 0 | 0 | 0 | 0 | |
Corporate | Operating Segments | Food and beverages | |||||
Revenues | |||||
Total revenues | $ 0 | $ 0 | $ 0 | $ 0 |
PROPERTY AND EQUIPMENT, NET O48
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION (Details) $ in Thousands | Mar. 07, 2018USD ($)property | Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) |
Property, Plant and Equipment [Line Items] | |||||||
Gross Carrying Amount | $ 145,622 | $ 145,622 | $ 145,622 | $ 325,994 | |||
Accumulated Depreciation | (52,030) | (52,030) | (52,030) | (84,736) | |||
Net Carrying Value | $ 93,592 | 93,592 | 93,592 | 241,258 | |||
Impairment | 0 | $ 32 | 1,473 | $ 32 | |||
Management Service | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Contract term | 10 years | ||||||
Golf Properties | Held-for-sale | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Number of properties held for sale | property | 26 | ||||||
Real estate assets | $ 165,300 | ||||||
Real estate assets, other related assets | 2,400 | ||||||
Real estate liabilities | 9,700 | ||||||
Impairment | 1,300 | ||||||
Land | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Gross Carrying Amount | $ 5,105 | 5,105 | 5,105 | 88,251 | |||
Accumulated Depreciation | 0 | 0 | 0 | 0 | |||
Net Carrying Value | 5,105 | 5,105 | 5,105 | 88,251 | |||
Land | Golf Properties | Held-for-sale | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Real estate assets, property and equipment | 83,800 | ||||||
Buildings and improvements | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Gross Carrying Amount | 72,557 | 72,557 | 72,557 | 154,769 | |||
Accumulated Depreciation | (24,941) | (24,941) | (24,941) | (52,636) | |||
Net Carrying Value | 47,616 | 47,616 | 47,616 | 102,133 | |||
Buildings and improvements | Golf Properties | Held-for-sale | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Real estate assets, property and equipment | 74,300 | ||||||
Furniture, fixtures and equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Gross Carrying Amount | 26,904 | 26,904 | 26,904 | 33,109 | |||
Accumulated Depreciation | (16,255) | (16,255) | (16,255) | (23,451) | |||
Net Carrying Value | 10,649 | 10,649 | 10,649 | 9,658 | |||
Furniture, fixtures and equipment | Golf Properties | Held-for-sale | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Real estate assets, property and equipment | $ 4,800 | ||||||
Capital leases - equipment | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Gross Carrying Amount | 27,273 | 27,273 | 27,273 | 24,949 | |||
Accumulated Depreciation | (10,834) | (10,834) | (10,834) | (8,649) | |||
Net Carrying Value | 16,439 | 16,439 | 16,439 | 16,300 | |||
Construction in progress | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Gross Carrying Amount | 13,783 | 13,783 | 13,783 | 24,916 | |||
Accumulated Depreciation | 0 | 0 | 0 | 0 | |||
Net Carrying Value | $ 13,783 | $ 13,783 | $ 13,783 | $ 24,916 |
INTANGIBLES, NET OF ACCUMULAT49
INTANGIBLES, NET OF ACCUMULATED AMORTIZATION (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Total Intangibles, Net Carrying Value | $ 53,716 | $ 57,276 |
Golf Investments | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | (37,430) | (33,909) |
Total Intangibles, Gross Carrying Amount | 91,146 | 91,185 |
Total Intangibles, Net Carrying Value | 53,716 | 57,276 |
Golf Investments | Nonamortizable liquor licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Nonamortizable liquor licenses | 828 | 1,231 |
Golf Investments | Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 700 | 700 |
Accumulated Amortization | (105) | (93) |
Net Carrying Value | 595 | 607 |
Golf Investments | Leasehold Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 48,107 | 48,107 |
Accumulated Amortization | (18,797) | (16,716) |
Net Carrying Value | 29,310 | 31,391 |
Golf Investments | Management contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 34,583 | 35,111 |
Accumulated Amortization | (14,424) | (13,468) |
Net Carrying Value | 20,159 | 21,643 |
Golf Investments | Internally-developed software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,692 | 800 |
Accumulated Amortization | (738) | (640) |
Net Carrying Value | 954 | 160 |
Golf Investments | Membership base | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,236 | 5,236 |
Accumulated Amortization | (3,366) | (2,992) |
Net Carrying Value | $ 1,870 | $ 2,244 |
DEBT OBLIGATIONS (Details)
DEBT OBLIGATIONS (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)property | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||
Credit facilities and obligations under capital leases | $ 112,268 | $ 112,105 |
Number of golf properties | property | 74 | |
Total debt obligations | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | $ 169,840 | |
Carrying Value | $ 168,630 | |
Weighted Average Funding Cost (as percent) | 6.78% | |
Weighted Average Life (Years) | 6 years 1 day | |
Face Amount of Floating Rate Debt | $ 153,204 | |
Credit Facilities and Capital Leases | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 118,836 | |
Carrying Value | $ 117,426 | |
Weighted Average Funding Cost (as percent) | 7.73% | |
Weighted Average Life (Years) | 1 year 5 months 1 day | |
Face Amount of Floating Rate Debt | $ 102,200 | |
Traditional Golf term loan | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 102,000 | |
Carrying Value | $ 100,590 | |
Weighted Average Funding Cost (as percent) | 7.92% | |
Weighted Average Life (Years) | 1 year 1 day | |
Face Amount of Floating Rate Debt | $ 102,000 | |
Number of golf properties | property | 22 | |
Deferred financing costs | $ 1,400 | |
Traditional Golf term loan | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Weighted Average Coupon (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 | |
Carrying Value | $ 200 | |
Weighted Average Coupon (as percent) | 2.20% | |
Weighted Average Funding Cost (as percent) | 2.20% | |
Weighted Average Life (Years) | 25 years 6 months 1 day | |
Face Amount of Floating Rate Debt | $ 200 | |
Capital leases (Equipment) | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 16,636 | |
Carrying Value | $ 16,636 | |
Weighted Average Funding Cost (as percent) | 6.67% | |
Weighted Average Life (Years) | 3 years 5 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 | $ 5,158 | |
Less current portion of obligations under capital leases | 5,158 | |
Credit facilities and obligations under capital leases - noncurrent | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 113,678 | |
Credit facilities and obligations under capital leases | 112,268 | |
Junior subordinated notes payable | ||
Debt Instrument [Line Items] | ||
Outstanding Face Amount | 51,004 | |
Carrying Value | $ 51,204 | |
Weighted Average Funding Cost (as percent) | 4.58% | |
Weighted Average Life (Years) | 16 years 9 months 1 day | |
Face Amount of Floating Rate Debt | $ 51,004 | |
Junior subordinated notes payable | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Weighted Average Coupon (as percent) | 2.25% |
DEBT OBLIGATIONS (Narrative) (D
DEBT OBLIGATIONS (Narrative) (Details) - Capital leases (Equipment) | 6 Months Ended |
Jun. 30, 2018 | |
Lower Range | |
Debt Instrument [Line Items] | |
Lease terms | 36 months |
Upper Range | |
Debt Instrument [Line Items] | |
Lease terms | 66 months |
DEBT OBLIGATIONS (Future Minimu
DEBT OBLIGATIONS (Future Minimum Lease Payments) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Future minimum lease payments due | |
July 1, 2018 - December 31, 2018 | $ 3,068 |
2,019 | 6,002 |
2,020 | 4,725 |
2,021 | 3,158 |
2,022 | 1,385 |
2,023 | 364 |
Total minimum lease payments | 18,702 |
Less: imputed interest | 2,066 |
Present value of net minimum lease payments | $ 16,636 |
REAL ESTATE SECURITIES (Real Es
REAL ESTATE SECURITIES (Real Estate Securities Holdings) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 4,000 | |
Before Impairment - Amortized Cost Basis | 2,512 | |
Other-Than-Temporary Impairment - Amortized Cost Basis | (1,521) | |
After Impairment - Amortized Cost Basis | 991 | |
Gross Unrealized Gains | 1,434 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 2,425 | $ 2,294 |
Number of Securities | security | 1 | |
Total outstanding face amount of floating rate securities | $ 4,000 | |
Securities in an unrealized loss position | security | 0 | |
ABS - Non-Agency RMBS | ||
Debt Securities, Available-for-sale [Line Items] | ||
Outstanding Face Amount | $ 4,000 | |
Before Impairment - Amortized Cost Basis | 2,512 | |
Other-Than-Temporary Impairment - Amortized Cost Basis | (1,521) | |
After Impairment - Amortized Cost Basis | 991 | |
Gross Unrealized Gains | 1,434 | |
Gross Unrealized Losses | 0 | |
Carrying Value | $ 2,425 | |
Number of Securities | security | 1 | |
Weighted Average Coupon (as percent) | 2.48% | |
Weighted Average Yield (as percent) | 22.98% | |
Weighted Average Life (Years) | 7 years 3 months 1 day | |
Weighted Average Principal Subordination (as percent) | 35.40% |
DERIVATIVES (Narrative) (Detail
DERIVATIVES (Narrative) (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets | $ 600,000 | $ 300,000 |
Derivative liabilities | $ 0 | $ 0 |
DERIVATIVES (Schedule of (Gains
DERIVATIVES (Schedule of (Gains) Losses Recorded In Relation to Derivatives) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative [Line Items] | ||||
Realized loss on settlement of TBAs, net | $ 0 | $ 6,915 | $ 0 | $ 4,441 |
Non-hedge derivatives | Realized and unrealized (gain) loss on investments | Interest rate derivatives | ||||
Derivative [Line Items] | ||||
Unrealized (gain) loss on interest rate derivatives | (89) | 165 | (331) | 285 |
Non-hedge derivatives | Realized and unrealized (gain) loss on investments | TBAs | ||||
Derivative [Line Items] | ||||
Unrealized (gain) recognized related to TBAs | 0 | (3,781) | 0 | (1,399) |
Realized loss on settlement of TBAs, net | $ 0 | $ 6,915 | $ 0 | $ 4,441 |
FAIR VALUE OF FINANCIAL INSTR56
FAIR VALUE OF FINANCIAL INSTRUMENTS (Carrying Values and Estimated Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 125,659 | $ 167,692 |
Carrying Value | ||
Assets | ||
Real estate securities, available-for-sale | 2,425 | |
Cash and cash equivalents | 125,659 | |
Restricted cash, current and noncurrent | 4,636 | |
Non-hedge derivative assets | 617 | |
Liabilities | ||
Credit facilities - Traditional Golf term loan | 100,590 | |
Junior subordinated notes payable | 51,204 | |
Estimated Fair Value | ||
Assets | ||
Real estate securities, available-for-sale | 2,425 | |
Cash and cash equivalents | 125,659 | |
Restricted cash, current and noncurrent | 4,636 | |
Non-hedge derivative assets | 617 | |
Liabilities | ||
Credit facilities - Traditional Golf term loan | 103,200 | |
Junior subordinated notes payable | $ 30,255 |
FAIR VALUE OF FINANCIAL INSTR57
FAIR VALUE OF FINANCIAL INSTRUMENTS (Significant Observable Inputs) (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Amortized Cost Basis | $ 991 |
ABS - Non-Agency RMBS | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Amortized Cost Basis | 991 |
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 | 991 |
Fair Value | $ 2,425 |
Real Estate Securities Available For Sale | ABS - Non-Agency RMBS | Discount Rate | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Debt securities, significant input (as percent) | 0.120 |
Real Estate Securities Available For Sale | ABS - Non-Agency RMBS | Prepayment Speed | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Debt securities, significant input (as percent) | 0.050 |
Real Estate Securities Available For Sale | ABS - Non-Agency RMBS | Cumulative Default Rate | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Debt securities, significant input (as percent) | 0.037 |
Real Estate Securities Available For Sale | ABS - Non-Agency RMBS | Loss Severity | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Debt securities, significant input (as percent) | 0.667 |
FAIR VALUE OF FINANCIAL INSTR58
FAIR VALUE OF FINANCIAL INSTRUMENTS (Change in Fair Value of Level 3 Investments) (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
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, 2017 | 2,294,000 |
Total gains (losses) | |
Included in other comprehensive income (loss) | 63,000 |
Amortization included in interest income | 110,000 |
Purchases, sales and repayments | |
Proceeds | (42,000) |
Balance at June 30, 2018 | 2,425,000 |
Purchases | 0 |
Sales | $ 0 |
EQUITY AND EARNINGS PER SHARE59
EQUITY AND EARNINGS PER SHARE (Outstanding Options) (Details) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Number of Options | |
Balance, beginning balance (in shares) | shares | 5,010,576 |
Balance, ending balance (in shares) | shares | 5,010,576 |
Exercisable (in shares) | shares | 2,705,586 |
Weighted Average Strike Price | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 2.55 |
Outstanding, ending balance (in dollars per share) | $ / shares | 2.55 |
Exercisable (in dollars per share) | $ / shares | $ 2.64 |
Weighted Average Life Remaining (in years) | |
Outstanding | 5 years 1 month 1 day |
Exercisable | 5 years 1 month 20 days |
EQUITY AND EARNINGS PER SHARE60
EQUITY AND EARNINGS PER SHARE (Outstanding Options Summary) (Details) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Weighted average strike price (in dollars per share) | $ 2.55 | $ 2.55 |
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 former Manager | Issued in 2011 and thereafter | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 2,705,253 | |
Issued to the former 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) | 2,304,990 | |
Issued to the former Manager and subsequently transferred to certain of the Manager’s employees | February 2017 | ||
Related Party Transaction [Line Items] | ||
Stock options outstanding (in shares) | 1,152,495 | |
Issued to the former Manager and subsequently transferred to certain of the Manager’s employees | April 2018 | ||
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 SHARE61
EQUITY AND EARNINGS PER SHARE (Details) (Narrative) - USD ($) $ / shares in Units, $ in Millions | Aug. 02, 2018 | Jul. 31, 2018 | May 02, 2018 | Apr. 30, 2018 | Mar. 06, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||||||||||
Unrecognized stock-based compensation expense | $ 7 | $ 7 | ||||||||
Dividends paid | $ 1.4 | |||||||||
Dilutive common stock equivalents (in shares) | 0 | 0 | 0 | 0 | ||||||
Stock options | ||||||||||
Class of Stock [Line Items] | ||||||||||
Antidilutive securities (in shares) | 0 | 85,238 | 0 | 118,054 | ||||||
Common stock equivalents | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dilutive common stock equivalents (in shares) | 2,893,372 | 1,556,785 | 2,702,628 | 1,748,034 | ||||||
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 | ||||||||
Preferred stock, dividend rate (as percent) | 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 | ||||||||
Preferred stock, dividend rate (as percent) | 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 | ||||||||
Preferred stock, dividend rate (as percent) | 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% | |||||||||
Stock options | ||||||||||
Class of Stock [Line Items] | ||||||||||
Period prior to expiration date to exercise options granted | 1 year | |||||||||
Stock-based compensation expense | $ 0.5 | $ 0.8 | ||||||||
Unrecognized stock-based compensation expense, period for recognition | 4 years 2 months |
EQUITY AND EARNINGS PER SHARE -
EQUITY AND EARNINGS PER SHARE - Assumptions for Valuation of Options (Details) - USD ($) $ in Thousands | Apr. 10, 2018 | Jan. 01, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair Value at Valuation Date | $ 3,558 | $ 4,272 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Volatility | 35.66% | 39.73% |
Expected Dividend Yield | 0.00% | 0.00% |
Risk-Free Rate, lower range | 2.68% | 2.16% |
Risk-Free Rate, upper range | 2.82% | 2.29% |
Stock options | Lower Range | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Remaining Term | 2 years 8 months 12 days | 3 years |
Stock options | Upper Range | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected Remaining Term | 6 years 3 months 18 days | 6 years 7 months 6 days |
EQUITY AND EARNINGS PER SHARE63
EQUITY AND EARNINGS PER SHARE (Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator for basic and diluted earnings per share: | ||||
Loss from continuing operations after preferred dividends and noncontrolling interests | $ (6,198) | $ (6,101) | $ (23,890) | $ (20,450) |
Loss Applicable to Common Stockholders | $ (6,198) | $ (6,101) | $ (23,890) | $ (20,450) |
Denominator: | ||||
Denominator for basic earnings per share - weighted average shares (in shares) | 66,977,104 | 66,874,155 | 66,977,104 | 66,858,155 |
Effect of dilutive securities | ||||
Options (in shares) | 0 | 0 | 0 | 0 |
Denominator for diluted earnings per share - adjusted weighted average shares (in shares) | 66,977,104 | 66,874,155 | 66,977,104 | 66,858,155 |
Basic earnings per share: | ||||
(Loss) Income from continuing operations per share of common stock, after preferred dividends and noncontrolling interests (in dollars per share) | $ (0.09) | $ (0.09) | $ (0.36) | $ (0.31) |
(Loss) Income Applicable to Common Stock, per share (in dollars per share) | (0.09) | (0.09) | (0.36) | (0.31) |
Diluted earnings per share: | ||||
(Loss) Income from continuing operations per share of common stock, after preferred dividends and noncontrolling interests (in dollars per share) | (0.09) | (0.09) | (0.36) | (0.31) |
(Loss) Income Applicable to Common Stock, per share (in dollars per share) | $ (0.09) | $ (0.09) | $ (0.36) | $ (0.31) |
TRANSACTIONS WITH AFFILIATES 64
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Narrative) (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Dec. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | |||
Due to affiliates | $ 1,786 | $ 0 | $ 0 |
Manager | |||
Related Party Transaction [Line Items] | |||
Payment for termination of management agreement | $ 10,700 | ||
Manager | Transition Services Agreement | |||
Related Party Transaction [Line Items] | |||
Costs for transition services agreement | $ 200 | $ 400 | |
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Shares held by Fortress and affiliates (in shares) | 7.3 | 7.3 | |
Stock options held by Fortress and affiliates (in shares) | 2.7 | 2.7 | |
Accrued rent, related parties | $ 400 | $ 400 | |
Board of Director member | |||
Related Party Transaction [Line Items] | |||
Travel expense, related party | $ 100 |
TRANSACTIONS WITH AFFILIATES 65
TRANSACTIONS WITH AFFILIATES AND AFFILIATED ENTITIES (Amounts Incurred Under Management Agreement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Transactions With Affiliates And Affiliated Entity [Abstract] | ||||
Management fees | $ 0 | $ 2,552 | $ 0 | $ 5,104 |
Expense reimbursement to the Manager | 0 | 125 | 0 | 250 |
Incentive compensation | 0 | 0 | 0 | 0 |
Total Management fee to affiliate | $ 0 | $ 2,677 | $ 0 | $ 5,354 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 10 Months Ended | 12 Months Ended | 19 Months Ended | |||
Dec. 31, 2017USD ($)renewal | Jun. 30, 2017renewal | Dec. 31, 2016USD ($) | Jun. 30, 2018USD ($)property | Jun. 30, 2018USD ($)property | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($)property | Sep. 30, 2017property | |
Loss Contingencies [Line Items] | ||||||||
Lease exit costs | $ 800 | |||||||
Accounts payable and accrued expenses | $ 36,797 | $ 44,506 | $ 44,506 | $ 36,797 | $ 44,506 | |||
Number of golf properties | property | 74 | 74 | 74 | |||||
Lower Range | ||||||||
Loss Contingencies [Line Items] | ||||||||
Operating lease term | 10 years | 10 years | 10 years | |||||
Upper Range | ||||||||
Loss Contingencies [Line Items] | ||||||||
Operating lease term | 20 years | 20 years | 20 years | |||||
Florida | Hurricane Irma | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of golf properties | property | 3 | |||||||
Property damage costs | $ 1,000 | $ 5,200 | ||||||
Amount reimbursed by insurer | 3,000 | $ 2,000 | ||||||
Florida | Hurricane Irma | Lower Range | ||||||||
Loss Contingencies [Line Items] | ||||||||
Costs expected to be incurred | 500 | 500 | $ 500 | |||||
Florida | Hurricane Irma | Upper Range | ||||||||
Loss Contingencies [Line Items] | ||||||||
Costs expected to be incurred | 1,000 | 1,000 | 1,000 | |||||
Ground Lease, Orlando, Florida | ||||||||
Loss Contingencies [Line Items] | ||||||||
Operating lease term | 20 years | |||||||
Number of renewal terms | renewal | 3 | |||||||
Renewal term | 5 years | |||||||
Ground Lease, Richmond, Virgina | ||||||||
Loss Contingencies [Line Items] | ||||||||
Operating lease term | 20 years | 20 years | ||||||
Number of renewal terms | renewal | 3 | |||||||
Renewal term | 5 years | 5 years | ||||||
Settled Litigation | Lease Termination Dispute | ||||||||
Loss Contingencies [Line Items] | ||||||||
Accounts payable and accrued expenses | $ 6,600 | $ 6,600 | 6,600 | |||||
Litigation amount awarded | $ 7,400 |
INCOME TAXES INCOME TAXES (Narr
INCOME TAXES INCOME TAXES (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Income tax provision | $ 0 | $ 510,000 | $ 0 | $ 1,049,000 | |
Non-recurring income tax receivable booked due to Tax Act | $ 600,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Thousands | Aug. 02, 2018USD ($)$ / shares | Jul. 31, 2018USD ($) | Jul. 20, 2018USD ($)installment | May 02, 2018$ / shares | Mar. 06, 2018$ / shares | Jun. 30, 2018USD ($) | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||||
Dividends declared | $ 2,790 | ||||||
Series B preferred stock | |||||||
Subsequent Event [Line Items] | |||||||
Dividends declared per share of preferred stock (in dollars per share) | $ / shares | $ 0.609375 | $ 0.609375 | |||||
Preferred stock, dividend rate (as percent) | 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) | $ / shares | $ 0.503125 | $ 0.503125 | |||||
Preferred stock, dividend rate (as percent) | 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) | $ / shares | $ 0.523438 | $ 0.523438 | |||||
Preferred stock, dividend rate (as percent) | 8.375% | 8.375% | 8.375% | 8.375% | |||
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) | $ / shares | $ 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) | $ / shares | $ 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) | $ / shares | $ 0.523438 | ||||||
Preferred stock, dividend rate (as percent) | 8.375% | ||||||
Subsequent event | Disposed by sale | Georgia Private Golf Property | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from sale of property | $ 3,500 | ||||||
Carrying value of property sold | 3,000 | ||||||
Gain on sale of property | $ 500 | ||||||
Subsequent event | Lease Termination Dispute | |||||||
Subsequent Event [Line Items] | |||||||
Settlement awarded | $ 7,400 | ||||||
Amount of settlement payable immediately | 5,200 | ||||||
Amount of settlement payable due by December 2019 | $ 2,200 | ||||||
Number of quarterly payment installments | installment | 6 |