Drive Shack Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

INVESTMENTS IN REAL ESTATE, NET OF ACCUMULATED DEPRECIATION

INVESTMENTS IN REAL ESTATE, NET OF ACCUMULATED DEPRECIATION

12 Months Ended

Dec. 31, 2016

INVESTMENTS IN REAL ESTATE, NET OF ACCUMULATED DEPRECIATION

The following table summarizes the balances of real estate assets in the Traditional and Entertainment Golf businesses at December 31, 2016.



				Initial Cost											Gross Carrying Amount (A) (C)
			Date of Acquisition	Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction-In-Progress		Costs Capitalized Subsequent to Acquisition			Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction-In-Progress				Accumulated Depreciation (A)(B)			Net Book Value
Property Name	City	State	Date of Acquisition	Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction-In-Progress		Costs Capitalized Subsequent to Acquisition			Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction-In-Progress		Total		Accumulated Depreciation (A)(B)			Net Book Value
Owned Properties
Bear Creek	Woodinville	WA	12/30/13	$	3,573	$	2,178	$	179	$	28	$	907		$	3,573	$	2,302	$	457	$	533	$	6,865	$	(783	)	$	6,082
Bradshaw Farm	Woodstock	GA	12/30/13	773		1,962		92		—		656			773		2,131		579		—		3,483		(813		)	2,670
Brookstone	Acworth	GA	12/30/13	579		2,448		200		—		1,110			579		2,976		675		107		4,337		(966		)	3,371
Canyon Oaks	Chico	CA	12/30/13	1,545		4,127		205		13		189			1,545		4,162		367		5		6,079		(1,322		)	4,757
Casta Del Sol	Mission Viejo	CA	12/30/13	5,794		—		—		—		307			5,794		74		218		15		6,101		(77		)	6,024
El Camino	Oceanside	CA	12/30/13	4,635		2,960		158		80		950			4,635		3,806		342		—		8,783		(961		)	7,822
Forrest Crossing	Franklin	TN	12/30/13	3,187		807		76		55		336			3,187		850		423		1		4,461		(377		)	4,084
Gettysvue	Knoxville	TN	12/30/13	2,994		1,428		235		181		336			2,994		1,647		533		—		5,174		(728		)	4,446
Lomas Santa Fe (Executive)	Solana Beach	CA	12/30/13	3,766		—		—		—		158			3,766		102		56		—		3,924		(29		)	3,895
Marbella	SJ Capistrano	CA	12/30/13	5,794		9,114		410		—		4,657			5,794		11,586		1,835		760		19,975		(2,931		)	17,044
Monterey	Palm Desert	CA	12/30/13	5,698		3,004		202		19		1,094			5,698		3,471		831		17		10,017		(1,266		)	8,751
Oakhurst	Clayton	CA	12/30/13	1,449		2,575		428		1,645		(1,100		)	1,449		2,714		818		16		4,997		(1,206		)	3,791
Oregon Golf Club	West Linn	OR	12/30/13	4,828		8,011		416		51		681			4,828		8,187		969		3		13,987		(2,393		)	11,594
Palm Valley	Palm Desert	CA	12/30/13	7,531		8,864		379		56		770			7,531		8,822		1,228		19		17,600		(2,603		)	14,997
Plantation	Boise	ID	12/30/13	2,607		2,236		262		13		558			2,607		2,326		742		1		5,676		(876		)	4,800
Rancho San Joaquin	Irvine	CA	12/30/13	12,650		3,775		279		1,366		980			12,650		5,005		1,116		279		19,050		(1,444		)	17,606
Seascape	Aptos	CA	12/30/13	2,897		4,944		108		67		534			2,897		5,225		420		8		8,550		(1,303		)	7,247
Summitpointe	Milpitas	CA	12/30/13	2,511		3,271		128		8		820			2,511		3,580		647		—		6,738		(1,069		)	5,669
Sunset Hills	Thousand Oaks	CA	12/30/13	2,125		5,447		383		—		893			2,125		5,713		1,010		—		8,848		(1,798		)	7,050
Tanoan	Albuquerque	NM	12/30/13	1,642		7,600		431		364		478			1,642		8,031		822		20		10,515		(2,684		)	7,831
Trophy Club of Apalachee	Dacula	GA	12/30/13	483		640		55		—		885			483		1,046		534		—		2,063		(351		)	1,712



				Initial Cost											Gross Carrying Amount (A) (C)
			Date of Acquisition	Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction-In-Progress		Costs Capitalized Subsequent to Acquisition			Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction-In-Progress				Accumulated Depreciation (A)(B)			Net Book Value
Property Name	City	State	Date of Acquisition	Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction-In-Progress		Costs Capitalized Subsequent to Acquisition			Land		Buildings and Improvements		Furniture, Fixtures and Equipment		Construction-In-Progress		Total		Accumulated Depreciation (A)(B)			Net Book Value
Trophy Club of Atlanta	Alpharetta	GA	12/30/13	483		3,898		60		—		519			483		4,148		327		2		4,960		(994		)	3,966
Vista Valencia	Valencia	CA	12/30/13	1,352		5,199		91		—		479			1,352		5,441		323		5		7,121		(1,402		)	5,719
Wood Ranch	Simi Valley	CA	12/30/13	2,125		1,951		239		416		903			2,125		2,339		1,041		129		5,634		(1,074		)	4,560
Other	N/A	N/A	12/30/13	3,960		—		—		—		(128		)	3,298		238		285		11		3,832		(100		)	3,732
Total Owned Properties				$	84,981	$	86,439	$	5,016	$	4,362	$	17,972		$	84,319	$	95,922	$	16,598	$	1,931	$	198,770	$	(29,550	)	$	169,220



Managed Properties
El Cariso	Sylmar	CA	12/30/13	—		—		—		—		32		—		—		32		—		32		(6		)	26
Fullerton	Fullerton	CA	12/30/13	—		—		—		—		373		—		—		373		—		373		(103		)	270
John A White	Atlanta	GA	12/30/13	—		—		—		—		—		—		—		—		—		—		—			—
Lomas Santa Fe	Solana Beach	CA	12/30/13	—		—		8		—		500		—		—		508		—		508		(93		)	415
Paradise Knolls	Riverside	CA	12/30/13	—		—		46		—		—		—		—		46		—		46		(46		)	—
Santa Clara	Santa Clara	CA	12/30/13	—		—		—		—		—		—		—		—		—		—		—			—
Tustin Ranch	Tustin	CA	10/01/16	—		—		—		—		—		—		—		—		—		—		—			—
Westchester	Los Angeles	CA	12/30/13	—		—		—		—		53		—		—		53		—		53		(10		)	43
Woodlands	Wayne	MI	12/30/13	—		—		—		—		8		—		—		8		—		8		(2		)	6
Yorba Linda	Yorba Linda	CA	12/30/13	—		—		5		—		673		—		—		678		—		678		(64		)	614
Total Managed Properties				$	—	$	—	$	59	$	—	$	1,639	$	—	$	—	$	1,698	$	—	$	1,698	$	(324	)	$	1,374

Total Leased Properties (D)				—		46,067		8,067		1,228		20,119		—		48,768		25,976		737		75,481		(29,823		)	45,658

Corporate	N/A	N/A		—		—		3,219		—		3,179		—		—		5,704		694		6,398		(5,039		)	1,359

Total Properties				$	84,981	$	132,506	$	16,361	$	5,590	$	42,909	$	84,319	$	144,690	$	49,976	$	3,362	$	282,347	$	(64,736	)	$	217,611



	Year ended December 31,
	2016			2015			2014
Gross Carrying Amount
Balance at beginning of year	$	276,119		$	263,103		$	250,208
Additions:
Acquisitions of real estate	—			—			—
Improvements	20,982			14,970			15,109
Disposals:
Disposal of long-lived assets	(5,500		)	(1,954		)	(2,214		)
Impairments (E)	(7,196		)	—			—
Transferred to assets held-for-sale (F)	(2,058		)	—			—
Balance at end of year	$	282,347		$	276,119		$	263,103

Accumulated Depreciation
Balance at beginning of year	$	(48,212	)	$	(23,820	)	$	—
Additions:
Depreciation expense	(23,351		)	(24,943		)	(24,740		)
Disposals:
Disposal of long-lived assets	5,319			551			920
Impairments	1,443			—			—
Transferred to assets held-for-sale	65			—			—
Balance at end of year	$	(64,736	)	$	(48,212	)	$	(23,820	)


(B)	Depreciation is calculated on a straight line basis using the estimated useful lives detailed in Note 2.


(C)	The aggregate United States federal income tax basis for Drive Shack Inc.’s operating real estate, including furniture, fixtures and equipment at December 31, 2016 was approximately $337.8 million.


(D)	Total leased properties includes $0.7 million of construction-in-progress for Entertainment Golf.


(E)	Impairments include a property in Annandale, New Jersey, a property in Gresham, Oregon and a property in San Leandro, California.


(F)	Includes one owned property in Annandale, New Jersey in the Traditional Golf segment classified as held-for-sale as of December 31, 2016. Assets held-for-sale are recorded in receivables and other assets in the Consolidated Balance Sheets. See Note 2 for additional information.

The real estate assets in Traditional Golf are encumbered by various debt obligations, as described in Note 11, at December 31, 2016.

In January 2016, the lease on a golf property in Oregon expired and we did not renew the lease for such property. In July 2016, the lease on a golf property in California was terminated and we exited the property. In October 2016, the leases of golf properties in Georgia and California expired and we exited the properties. In October 2016, we entered into a management agreement for an 18-hole golf property in Tustin, California. The management agreement is for a term of 4.5 years. In December 2016, the lease on a golf property in Oklahoma expired and we exited the property.

- Definition

The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures.

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