Land and Development Costs and Subsurface Interests (Tables)

9 Months Ended

Sep. 30, 2016

Summary of Sales within the Tomoka Town Center

							Revenue (1)								Deferred
					Avg. Sales		Recognized		Revenue (1)		Gain (2)		Gain (2)		Revenue (3) as
		No. of			Price per		in		Recognized in		Recognized		Recognized in		of September 30,
Land Tract	Date Closed	Acres	Sales Price		Acre		Q3 2016		YTD Q3 2016		in Q3 2016		YTD Q3 2016		2016
Tanger Outlet	11/12/2015	38.93	$	9,700,000	$	249,165	$	1,553,551	$	6,682,681	$	1,250,016	$	5,356,247	$	393,546
Sam's Club	12/23/2015	18.10		4,500,000		248,619		796,397		3,423,880		655,273		2,807,171		130,463
NADG - First Parcel	12/29/2015	37.26		5,168,335		138,710		989,346		4,258,592		698,832		2,989,057		283,751
NADG - Outparcel	3/30/2016	4.40		2,000,000		454,545		314,462		2,089,796		264,409		1,811,018		109,802
Total Tomoka Town Center Sales		98.69	$	21,368,335	$	216,520	$	3,653,756	$	16,454,949	$	2,868,530	$	12,963,493	$	917,562

⁽¹⁾

The revenue recognized in each quarter consists of revenue from a portion of the sales price that was previously deferred and revenue from expected reimbursements, as the infrastructure work is completed.

⁽²⁾

The gain recognized in each quarter consists of revenue less the allocated cost basis of the infrastructure costs, as the infrastructure work is completed.

⁽³⁾

The total revenue remaining to be recognized for the above land transactions includes the above approximately $918,000 of deferred revenue plus an estimated approximately $191,000 of revenue related to the reimbursement of the infrastructure costs to be incurred through completion of the work, less the estimated remaining cost basis of approximately $241,000. See Note 18, "Commitments and Contingencies" for a description of the commitments related to the remaining infrastructure costs to be incurred.

Summary of Reconciliation of the Land Transactions Closed

The following table provides a reconciliation of the land transactions closed (as of September 30, 2016) or under contract for all the developable parcels of the Town Center (sales price and estimated infrastructure reimbursement presented in $000’s) and the reimbursement amounts for the Infrastructure Work from each buyer:


						Infrastructure
		Sales Price		Sales Price per		Reimbursement
Land Tract	No. of Acres	(In $000's)		Acre		(in $000s)
Tanger Outlet [Closed] (1)	38.93	$	9,700	$	249,165	$	5,500
Sam's Club [Closed] (2)	18.10		4,500		248,619		1,100
NADG - First Parcel [Closed] (3)	37.26		5,168		138,710		1,800
NADG - Outparcel [Closed] (3)	4.40		2,000		454,545		211
NADG - Option Parcels (4)	81.50		20,188		247,689		3,889
Total Developable Area	180.19		41,556		230,618		12,500
Common Area (5)	54.32		N/A		N/A		(12,800)
Total Town Center	234.51	$	41,556	$	177,199	$	(300)

⁽¹⁾

Includes $4.5 million in incentives from the Town Center District, with remainder to be paid in equal installments over 10 years;

⁽²⁾

Infrastructure reimbursement, pursuant to contract, paid in equal installments over 10 years;

⁽³⁾

Infrastructure reimbursement due upon the later of i) Infrastructure Work completion or, ii) August 31, 2016;

⁽⁴⁾

Under Contract. Sales price reflects current contract price; price escalations would occur should any of the transactions close in 2017 and 2018. Infrastructure reimbursements for each Option Parcel occurs upon later of i) transaction closing, ii) Infrastructure Work completion, or iii) August 31, 2016; and

⁽⁵⁾

Includes common area for the Town Center association and land dedicated for public use, both to be conveyed by the Company.

Summary of Lease Payments and Drilling Penalties Received on Acreages

Lease payments on the respective acreages and drilling penalties received through lease year six are as follows:


	Acreage
Lease Year	(Approximate)	Florida County	Lease Payment (1)		Drilling Penalty (1)
Lease Year 1 - 9/23/2011 - 9/22/2012	136,000	Lee and Hendry	$	913,657	$	—
Lease Year 2 - 9/23/2012 - 9/22/2013	136,000	Lee and Hendry		922,114		—
Lease Year 3 - 9/23/2013 - 9/22/2014	82,000	Hendry		3,293,000		1,000,000
Lease Year 4 - 9/23/2014 - 9/22/2015	42,000	Hendry		1,866,146		600,000
Lease Year 5 - 9/23/2015 - 9/22/2016	25,000	Hendry		1,218,838		175,000
Lease Year 6 - 9/23/2016 - 9/22/2017	15,000	Hendry		806,683		150,000
Total Payments Received to Date			$	9,020,438	$	1,925,000

⁽¹⁾

Cash payment for the Lease Payment and Drilling Penalty is received on or before the first day of the lease year. The Drilling Penalty is recorded as revenue when received, while the Lease Payment is recognized on a straight-line basis over the respective lease term. See separate disclosure of the revenue per year below.