Business Segments

9 Months Ended

Sep. 30, 2018

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. The flex/office warehouses in the Asset Management Segment were sold (with one remaining warehouse held for sale) and reclassified to discontinued operations leaving only three office buildings.

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 MidAtlantic Realty Partners (“MRP”), reached stabilization, meaning 90% of the individual apartments have been leased and are occupied by third party tenants. Upon reaching stabilization, the Company had, 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.

On May 21, 2018, the Company completed the disposition of 40 industrial warehouse properties and 3 additional land parcels to an affiliate of Blackstone Real Estate Partners VIII, L.P. for $347.2 million. One warehouse property valued at $11.7 million was excluded from the sale due to the tenant exercising its right of first refusal to purchase the property. These properties have been reclassified as discontinued operations for all periods presented.

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,
	2018			2017			2018			2017
Revenues:
Asset management	$	568			559			1,717			1,710
Mining royalty lands		2,125			1,786			5,952			5,381
Land development and construction		330			323			944			931
RiverFront on the Anacostia		2,719			2,367			7,757			2,367
		5,742			5,035			16,370			10,389
Operating profit (loss):
Before corporate expenses:
Asset management	$	276			249			783			771
Mining royalty lands		1,961			1,667			5,497			4,993
Land development and construction		(139	)		(390	)		(1,146	)		(1,168	)
RiverFront on the Anacostia		92			(1,168	)		(915	)		(1,168	)
Operating profit before corporate expenses		2,190			358			4,219			3,428
Corporate expenses:
Allocated to asset management		(34	)		(27	)		(146	)		(118	)
Allocated to mining royalty lands		(28	)		(30	)		(157	)		(124	)
Allocated to land development and construction		(408	)		(210	)		(1,110	)		(935	)
Allocated to RiverFront on the Anacostia		(52	)		(27	)		(289	)		(27	)
Unallocated		—			(323	)		(1,208	)		(1,306	)
Total corporate expenses		(522	)		(617	)		(2,910	)		(2,510	)
	$	1,668			(259	)		1,309			918
Interest expense	$	768			783			2,418			783
Depreciation, depletion and amortization:
Asset management	$	145			125			405			385
Mining royalty lands		55			17			145			91
Land development and construction		57			98			171			263
RiverFront on the Anacostia		1,564			2,564			5,629			2,564
	$	1,821			2,804			6,350			3,303
Capital expenditures:
Asset management	$	17			131			184			162
Mining royalty lands		—			—			—			—
Land development and construction		4,268			292			5,578			1,999
RiverFront on the Anacostia		25			331			(33	)		331
	$	4,310			754			5,729			2,492

		September 30,	December 31,
Identifiable net assets		2018	2017
Asset management	$	10,687	2,960
Discontinued operations		3,194	176,694
Mining royalty lands		38,307	38,656
Land development and construction		51,801	46,684
Riverfront on the Anacostia		138,853	144,386
Investments available for sale		191,288	—
Cash items		69,052	4,524
Unallocated corporate assets		4,077	4,830
	$	507,259	418,734