Business Segments

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Business Segments

(3) Business Segments. The Company is reporting its financial performance based on four reportable segments, Asset Management, Mining Royalty Lands, Land Development and Construction and RiverFront on the Anacostia, as described below.

The Asset Management segment owns, leases and manages warehouse/office buildings located predominately in the Baltimore/Northern Virginia/Washington, DC market area.

Our Mining Royalty Lands segment owns several properties comprising approximately 15,000 acres currently under lease for mining rents or royalties (this does not include the 4,280 acres owned in our Brooksville joint venture with Vulcan Materials).  Other than one location in Virginia, all of these properties are located in Florida and Georgia. 

Through our Land Development and Construction segment, we own and are continuously monitoring for their “highest and best use” several parcels of land that are in various stages of development.  Our overall strategy in this segment is to convert all of our non-income producing lands into income production through (i) an orderly process of constructing new buildings for us to own and operate or (ii) a sale to, or joint venture with, third parties.

In July 2017, Phase I (Dock 79) of the development known as RiverFront on the Anacostia in Washington, D.C., a 300,000 square foot residential apartment building developed by a joint venture between the Company and MRP SE Waterfront Residential, LLC (“MRP”), reached stabilization, meaning 90% of the individual apartments have been leased and are occupied by third party tenants. Upon reaching stabilization, the Company has, for a period of one year, the exclusive right to (i) cause the joint venture to sell the property or (ii) cause the Company’s and MRP’s percentage interests in the joint venture to be adjusted so as to take into account the value of the development at the time of stabilization. The attainment of stabilization also resulted in a change of control for accounting purposes as the veto rights of the minority shareholder lapsed and the Company became the primary beneficiary. As such, beginning July 1, 2017, the Company consolidated the assets (at current fair value), liabilities and operating results of the joint venture as a new segment called RiverFront on the Anacostia.

Operating results and certain other financial data for the Company’s business segments are as follows (in thousands):

	Three Months ended						Nine Months ended
	September 30,						September 30,
	2017			2016			2017			2016
Revenues:
Asset management	$	7,578			7,323			22,057			21,824
Mining royalty lands		1,786			2,037			5,381			5,874
Land development and construction		323			416			931			936
RiverFront on the Anacostia		2,367			—			2,367			—
		12,054			9,776			30,736			28,634
Operating profit:
Before corporate expenses:
Asset management	$	3,336			3,245			10,071			9,986
Mining royalty lands		1,667			1,915			4,993			5,504
Land development and construction		(390	)		(196	)		(1,168	)		(3,359	)
RiverFront on the Anacostia		(1,168	)		—			(1,168	)		—
Corporate expenses:
Allocated to asset management		(350	)		(339	)		(1,424	)		(1,213	)
Allocated to mining royalty lands		(30	)		(49	)		(124	)		(176	)
Allocated to land development and construction		(210	)		(268	)		(935	)		(959	)
Allocated to RiverFront on the Anacostia		(27	)		—			(27	)		—
		(617	)		(656	)		(2,510	)		(2,348	)
	$	2,828			4,308			10,218			9,783
Interest expense:
Asset management	$	374			273			993			1,080
RiverFront on the Anacostia		877			—			877			—
	$	1,251			273			1,870			1,080
Depreciation, depletion and amortization:
Asset management	$	2,090			2,071			6,112			5,891
Mining royalty lands		17			24			91			70
Land development and construction		98			65			263			194
RiverFront on the Anacostia		2,564			—			2,564			—
	$	4,769			2,160			9,030			6,155
Capital expenditures:
Asset management	$	1,273			10,276			6,061			11,510
Mining royalty lands		—			99			—			205
Land development and construction		2,852			4,210			6,203			5,300
RiverFront on the Anacostia		331			—			331			—
	$	4,456			14,585			12,595			17,015

	September 30,		December 31,
Identifiable net assets	2017		2016
Asset management	$	180,827		169,736
Mining royalty lands		38,744		39,259
Land development and construction		44,162		57,126
RiverFront on the Anacostia		146,718		—
Cash items		2,630		—
Unallocated corporate assets		3,011		439
	$	416,092		266,560