Business Segments

9 Months Ended

Sep. 30, 2020

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 and one recent industrial acquisition, Cranberry Run, which we purchased in 2019. In July 2019 we sold our property located at 1801 62^nd Street, our most recent spec building in Hollander Business Park, which had joined Asset Management April 1, 2019.

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 assessing for their highest and best use for 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 Stabilized Joint Venture segment includes joint ventures which own, lease and manage buildings that have met our initial lease up criteria. One of our two joint ventures in the segment, Riverfront Investment Partners I, LLC (“Dock 79”) is consolidated. The ownership of Dock 79 attributable to our partner MidAtlantic Realty Partners, LLC (MRP) 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.

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,
	2020			2019			2020			2019
Revenues:
Asset management	$	721			430			2,089			1,733
Mining royalty lands		2,507			2,302			7,094			7,164
Development		290			307			862			892
Stabilized Joint Venture		2,580			2,844			7,685			8,171
		6,098			5,883			17,730			17,960
Operating profit (loss):
Before corporate expenses:
Asset management	$	200			8			700			233
Mining royalty lands		2,291			2,103			6,486			6,605
Development		(659	)		(629	)		(2,136	)		(1,747	)
Stabilized Joint Venture		386			608			1,379			1,657
Operating profit before corporate expenses		2,218			2,090			6,429			6,748
Corporate expenses:
Allocated to asset management		(165	)		(168	)		(738	)		(470	)
Allocated to mining royalty lands		(53	)		(44	)		(234	)		(123	)
Allocated to development		(381	)		(479	)		(1,710	)		(1,219	)
Allocated to stabilized joint venture		(38	)		(41	)		(168	)		(116	)
Total corporate expenses		(637	)		(732	)		(2,850	)		(1,928	)
	$	1,581			1,358			3,579			4,820
Interest expense	$	46			129			142			989
Depreciation, depletion and amortization:
Asset management	$	137			154			529			527
Mining royalty lands		60			36			160			130
Development		53			54			160			161
Stabilized Joint Venture		1,188			1,187			3,557			3,572
	$	1,438			1,431			4,406			4,390
Capital expenditures:
Asset management	$	233			824			787			8,642
Mining royalty lands		—			—			—			—
Development		1,754			167			2,371			415
Stabilized Joint Venture		46			194			42			304
	$	2,033			1,185			3,200			9,361

		September 30,	December 31,
Identifiable net assets		2020	2019
Asset management	$	11,323	18,468
Mining royalty lands		37,617	38,409
Development		182,567	179,357
Stabilized Joint Venture		136,679	133,956
Investments available for sale at fair value		104,624	137,867
Cash items		61,548	26,793
Unallocated corporate assets		1,772	3,298
	$	536,130	538,148