Business Segments

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Business Segments

10. 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 Business Park, which we purchased in 2019. In July 2020 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.

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

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

	Years Ended December 31,
	2020			2019			2018
Revenues:
Asset management	$	2,747			2,190			2,309
Mining royalty lands		9,477			9,438			8,139
Development		1,152			1,164			1,206
Stabilized Joint Venture		10,207			10,964			10,368
	$	23,583			23,756			22,022
Operating profit:
Before corporate expenses:
Asset management	$	907			196			1,051
Mining royalty lands		8,629			8,690			7,504
Development		(2,576	)		(2,817	)		(2,104	)
Stabilized Joint Venture		1,685			2,243			(537	)
Operating profit before corporate expenses		8,645			8,312			5,914
Corporate expenses:
Allocated to asset management		(909	)		(646	)		(153	)
Allocated to mining royalty lands		(288	)		(169	)		(214	)
Allocated to Development		(2,108	)		(1,581	)		(1,984	)
Allocated to Stabilized Joint Venture		(206	)		(160	)		(393	)
Unallocated		—			—			(1,208	)
		(3,511	)		(2,556	)		(3,952	)
	$	5,134			5,756			1,962
Interest expense	$	1,100			1,054			3,103
Depreciation, depletion and amortization:
Asset management	$	652			708			540
Mining royalty lands		218			177			198
Development		214			214			228
Stabilized Joint Venture		4,744			4,756			6,932
	$	5,828			5,855			7,898
Capital expenditures:
Asset management	$	924			9,487			335
Mining royalty lands		—			—			—
Development		16,547			631			6,396
Stabilized Joint Venture		73			316			563
	$	17,544			10,434			7,294
Identifiable net assets at end of period:
Asset management	$	11,172			18,468			10,593
Discontinued operations		—			—			3,224
Mining royalty lands		37,387			38,409			37,991
Development		196,212			179,357			119,029
Stabilized Joint Venture		130,472			133,956			138,206
Investments available for sale at fair value		75,609			137,867			165,212
Cash items		74,105			26,793			22,749
Unallocated corporate assets		11,403			3,298			8,484
	$	536,360			538,148			505,488