Business Segments

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

We currently operate in four business segments: commercial/industrial real estate development; resort/residential real estate development; mineral resources; and farming.

The revenue components of the commercial/industrial real estate segment for the three months ended March 31 are as follows:

(In thousands)	2014		2013
Commercial leases	$	1,863	$	1,659
Grazing leases	368		374
All other land management ancillary services	711		689
Total revenue	2,942		2,722
Equity in earnings of unconsolidated joint ventures	459		422
Revenues and equity in earnings of unconsolidated joint ventures	$	3,401	$	3,144

Commercial lease revenue consists of land and building leases to tenants at our commercial retail and industrial developments, base and percentage rents from our Calpine power plant lease, communication tower rents, and payments from easement leases. Land management ancillary services include wildlife management, landscape and property maintenance, and building management services.

The resort/residential real estate development segment produces revenues from farming activities, such as hay sales, within the Centennial Founders, LLC and is actively involved in the land entitlement and pre-development process. The farming segment produces revenues from the sale of wine grapes, almonds and pistachios.

The revenue components of the resort/residential real estate development segment for the three months ended March 31 are as follows:

(In thousands)	2014			2013
Hay sales - Centennial operations	$	266		$	158
Management fees	90			78
Other	3			1
Total revenue	359			237
Equity in earnings (losses) of unconsolidated joint ventures	(21		)	(13		)
Revenues and equity in earnings of unconsolidated joint ventures	$	338		$	224

The mineral resources segment receives oil and mineral and mining royalties from exploration and development companies that extract or mine the natural resources from our land. Revenues from our mineral resources segment decreased $602,000, or 21%, to $2,264,000 during 2014 compared to 2013, primarily due to a $514,000 decrease in oil royalty revenues. The 21% decrease in production was the result of the timing of completion of expanded production facilities and regulatory permitting management. In addition, the price per barrel of oil decreased by 4% to approximately $97 per barrel in 2014 from approximately $101 per barrel in 2013. During the first quarter of 2014, three new production wells were completed on our lands. These wells are still in the test phase and are expected to be put into production within the next quarter. The following table summarizes these activities for each of the three months ended March 31:

($ in thousands)	2014		2013
Oil and gas	$	1,740	$	2,254
Rock aggregate	263		140
Cement	205		160
Land lease for oil exploration	56		312
Total revenue	$	2,264	$	2,866