Business Segments

6 Months Ended

Jun. 30, 2019

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, Development and Stabilized Joint Venture, as described below.

The Asset Management segment owns, leases and manages commercial properties. The flex/office warehouses in the Asset Management Segment were sold and reclassified to discontinued operations leaving only two commercial properties, one recent industrial acquisition, Cranberry Run, which we purchased in 2019, and 1801 62^nd Street, our most recent spec building in Hollander Business Park, which joined Asset Management April 1 of this year.

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 Development 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. Additionally, our Development segment will form joint ventures on new developments of land not previously owned by the Company.

The Company operates a residential apartment building Riverfront Investment Partners I, LLC partnership (“Dock 79”). The ownership of Dock 79 attributable to our partner MRP Realty is reflected on our consolidated balance sheet as a noncontrolling interest. Such noncontrolling interests are reported on the Consolidated Balance Sheets within equity but separately from shareholders' equity. On the Consolidated Statements of Income, all of the revenues and expenses from Dock 79 are reported in net income, including both the amounts attributable to the Company and the noncontrolling interest. The amounts of consolidated net income attributable to the noncontrolling interest is clearly identified on the accompanying Consolidated Statements of Income.

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. This sale constituted a major strategic shift and as a result, these properties have been reclassified as discontinued operations for all periods presented. On June 28, 2019, the Company completed the sale of the excluded property to the same buyer for $11.7 million. We plan to develop our remaining owned office/warehouse pad sites in a timely, opportunistic manner and find a buyer once each building is fully leased.

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

	Three Months ended						Six Months ended
	June 30,						June 30,
	2019			2018			2019			2018
Revenues:
Asset management	$	662			568			1,303			1,149
Mining royalty lands		2,633			2,055			4,862			3,827
Development		316			317			585			614
Stabilized Joint Venture		2,752			2,613			5,327			5,038
		6,363			5,553			12,077			10,628
Operating profit (loss):
Before corporate expenses:
Asset management	$	128			258			225			507
Mining royalty lands		2,458			1,918			4,502			3,536
Development		(565	)		(630	)		(1,118	)		(1,007	)
Stabilized Joint Venture		637			(293	)		1,049			(1,007	)
Operating profit before corporate expenses		2,658			1,253			4,658			2,029
Corporate expenses:
Allocated to asset management		(139	)		(109	)		(302	)		(112	)
Allocated to mining royalty lands		(36	)		(52	)		(79	)		(129	)
Allocated to development		(341	)		(283	)		(740	)		(702	)
Allocated to stabilized joint venture		(35	)		(95	)		(75	)		(237	)
Unallocated		—			(1,170	)		—			(1,208	)
Total corporate expenses		(551	)		(1,709	)		(1,196	)		(2,388	)
	$	2,107			(456	)		3,462			(359	)
Interest expense	$	272			807			860			1,650
Depreciation, depletion and amortization:
Asset management	$	196			129			373			260
Mining royalty lands		42			36			94			90
Development		49			57			107			114
Stabilized Joint Venture		1,185			1,909			2,385			4,065
	$	1,472			2,131			2,959			4,529
Capital expenditures:
Asset management	$	1,352			6			7,818			167
Mining royalty lands		—			—			—			—
Development		(122	)		1,018			248			1,310
Stabilized Joint Venture		227			185			110			(58	)
	$	1,457			1,209			8,176			1,419

		June 30,	December 31,
Identifiable net assets		2019	2018
Asset management	$	16,981	10,593
Discontinued operations		871	3,224
Mining royalty lands		38,702	37,991
Development		115,016	119,029
Stabilized Joint Venture		136,048	138,206
Investments available for sale at fair value		122,183	165,212
Cash items		76,235	22,749
Unallocated corporate assets		29,111	8,484
	$	535,147	505,488