10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 01-11350

CONSOLIDATED-TOMOKA LAND CO.

(Exact name of registrant as specified in its charter)

Florida	59-0483700
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
1140 N. Williamson Blvd., Suite 140
Daytona Beach, Florida	32114
(Address of principal executive offices)	(Zip Code)

(386) 274-2202

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
			
Non-accelerated filer	☐(Do not check if a smaller reporting company)	Smaller reporting company	☐
			
Emerging growth company	☐		

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class of Common Stock Outstanding

July 19, 2018

$1.00 par value 5,553,605

INDEX

	Page
	No.
PART I—FINANCIAL INFORMATION
Item 1.      Financial Statements
Consolidated Balance Sheets – June 30, 2018 (Unaudited) and December 31, 2017	3
Consolidated Statements of Operations – Three and Six Months ended June 30, 2018 and 2017 (Unaudited)	4
Consolidated Statements of Comprehensive Income – Three and Six Months ended June 30, 2018 and 2017 (Unaudited)	5
Consolidated Statements of Shareholders’ Equity – Six Months ended June 30, 2018 (Unaudited)	6
Consolidated Statements of Cash Flows – Six Months ended June 30, 2018 and 2017 (Unaudited)	7
Notes to Consolidated Financial Statements (Unaudited)	9
Item 2.      Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
Item 3.      Quantitative and Qualitative Disclosures About Market Risks	60
Item 4.      Controls and Procedures	60
PART II—OTHER INFORMATION	60
Item 1.      Legal Proceedings	60
Item 1A.   Risk Factors	61
Item 2.      Unregistered Sales of Equity Securities and Use of Proceeds	62
Item 3.      Defaults Upon Senior Securities	63
Item 4.      Mine Safety Disclosures	63
Item 5.      Other Information	63
Item 6.      Exhibits	64
SIGNATURES	65

2

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED-TOMOKA LAND CO.

CONSOLIDATED BALANCE SHEETS

	(Unaudited)
	June 30, 2018		December 31, 2017
ASSETS
Property, Plant, and Equipment:
Income Properties, Land, Buildings, and Improvements	$	396,259,302	$	358,130,350
Golf Buildings, Improvements, and Equipment		6,640,581		6,617,396
Other Furnishings and Equipment		726,380		715,042
Construction in Progress		581,611		6,005,397
Total Property, Plant, and Equipment		404,207,874		371,468,185
Less, Accumulated Depreciation and Amortization		(25,840,495)		(23,779,780)
Property, Plant, and Equipment—Net		378,367,379		347,688,405
Land and Development Costs		31,371,995		39,477,697
Intangible Lease Assets—Net		38,606,046		38,758,059
Investment in Joint Venture		6,701,017		—
Impact Fee and Mitigation Credits		725,236		1,125,269
Commercial Loan Investments		2,994,916		11,925,699
Cash and Cash Equivalents		4,312,324		6,559,409
Restricted Cash		2,419,686		6,508,131
Refundable Income Taxes		1,075,662		1,116,580
Other Assets—See Note 10		13,975,385		12,971,129
Total Assets	$	480,549,646	$	466,130,378
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Accounts Payable	$	1,745,714	$	1,880,516
Accrued and Other Liabilities—See Note 15		7,838,466		10,160,526
Deferred Revenue—See Note 16		6,868,665		2,030,459
Intangible Lease Liabilities—Net		29,139,535		29,770,441
Deferred Income Taxes—Net		50,603,916		42,293,864
Long-Term Debt		177,133,608		195,816,364
Total Liabilities		273,329,904		281,952,170
Commitments and Contingencies—See Note 19
Shareholders’ Equity:
Shareholders' Equity:
Common Stock – 25,000,000 shares authorized; $1 par value, 6,042,966 shares issued and 5,559,507 shares outstanding at June 30, 2018; 6,030,990 shares issued and 5,584,335 shares outstanding at December 31, 2017		5,984,747		5,963,850
Treasury Stock – 483,459 shares at June 30, 2018 and 446,655 shares at December 31, 2017		(24,700,205)		(22,507,760)
Additional Paid-In Capital		23,228,788		22,735,228
Retained Earnings		202,024,986		177,614,274
Accumulated Other Comprehensive Income		681,426		372,616
Total Shareholders’ Equity		207,219,742		184,178,208
Total Liabilities and Shareholders’ Equity	$	480,549,646	$	466,130,378

See Accompanying Notes to Consolidated Financial Statements

3

CONSOLIDATED-TOMOKA LAND CO.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2018		2017		2018		2017
Revenues
Income Properties	$	9,781,299	$	7,565,007	$	18,987,026	$	14,638,247
Interest Income from Commercial Loan Investments		273,467		553,159		574,466		1,089,648
Real Estate Operations		2,484,314		13,257,355		16,463,644		42,731,815
Golf Operations		1,282,918		1,383,513		2,637,274		2,858,457
Agriculture and Other Income		11,187		78,749		22,374		232,900
Total Revenues		13,833,185		22,837,783		38,684,784		61,551,067
Direct Cost of Revenues
Income Properties		(2,034,889)		(1,629,515)		(3,903,918)		(3,041,228)
Real Estate Operations		(870,270)		(5,792,529)		(2,405,932)		(14,949,378)
Golf Operations		(1,525,053)		(1,401,919)		(2,906,878)		(2,900,597)
Agriculture and Other Income		(5,172)		(30,536)		(10,344)		(70,973)
Total Direct Cost of Revenues		(4,435,384)		(8,854,499)		(9,227,072)		(20,962,176)
General and Administrative Expenses		(2,429,181)		(2,727,187)		(5,252,729)		(5,947,334)
Depreciation and Amortization		(3,854,938)		(3,215,690)		(7,755,317)		(5,978,265)
Total Operating Expenses		(10,719,503)		(14,797,376)		(22,235,118)		(32,887,775)
Gain on Disposition of Assets		18,384,808		—		22,035,666		—
Land Lease Income		—		—		—		2,226,526
Other Gains and Income		18,384,808		—		22,035,666		2,226,526
Total Operating Income		21,498,490		8,040,407		38,485,332		30,889,818
Investment Income		11,892		8,524		24,204		17,707
Interest Expense		(2,537,301)		(2,144,176)		(5,098,766)		(4,206,067)
Income Before Income Tax Expense		18,973,081		5,904,755		33,410,770		26,701,458
Income Tax Expense		(4,810,173)		(2,225,847)		(8,335,563)		(10,276,158)
Net Income	$	14,162,908	$	3,678,908	$	25,075,207	$	16,425,300
Per Share Information—See Note 11:
Basic Net Income per Share	$	2.56	$	0.67	$	4.53	$	2.95
Diluted Net Income per Share	$	2.56	$	0.66	$	4.51	$	2.94
Dividends Declared and Paid	$	0.06	$	0.04	$	0.12	$	0.08

See Accompanying Notes to Consolidated Financial Statements

4

CONSOLIDATED-TOMOKA LAND CO.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Net Income	$	14,162,908	$	3,678,908	$	25,075,207	$	16,425,300
Other Comprehensive Income
Cash Flow Hedging Derivative - Interest Rate   Swap (Net of Income Tax of $17,227 and  $(35,818) for the three months ended June 30,  2018 and 2017, respectively, and Net of Income  Tax of $77,593 and $(6,268) for the six  months ended June 30, 2018 and 2017,  respectively)		50,744		(57,036)		308,810		(9,980)
Total Other Comprehensive Income, Net of Income Tax		50,744		(57,036)		308,810		(9,980)
Total Comprehensive Income	$	14,213,652	$	3,621,872	$	25,384,017	$	16,415,320

See Accompanying Notes to Consolidated Financial Statements

5

CONSOLIDATED-TOMOKA LAND CO.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

									Accumulated
					Additional				Other
	Common		Treasury		Paid-In		Retained		Comprehensive		Shareholders’
	Stock		Stock		Capital		Earnings		Income (Loss)		Equity
Balance January 1, 2018	$	5,963,850	$	(22,507,760)	$	22,735,228	$	177,614,274	$	372,616	$	184,178,208
Net Income		—		—		—		25,075,207		—		25,075,207
Stock Repurchase		—		(2,192,445)		—		—		—		(2,192,445)
Vested Restricted Stock		19,065		—		(517,439)		—		—		(498,374)
Stock Issuance		1,832		—		113,674		—		—		115,506
Stock Compensation Expense from   Restricted Stock Grants and Equity       Classified Stock Options		—		—		897,325		—		—		897,325
Cash Dividends ($0.12 per share)		—		—		—		(664,495)		—		(664,495)
Other Comprehensive Income, Net of Income Tax		—		—		—		—		308,810		308,810
Balance June 30, 2018	$	5,984,747	$	(24,700,205)	$	23,228,788	$	202,024,986	$	681,426	$	207,219,742

See Accompanying Notes to Consolidated Financial Statements

6

CONSOLIDATED-TOMOKA LAND CO.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended
	June 30,		June 30,
	2018		2017
Cash Flow from Operating Activities:
Net Income	$	25,075,207	$	16,425,300
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization		7,755,317		5,978,265
Amortization of Intangible Liabilities to Income Property Revenue		(1,179,345)		(1,081,262)
Loan Cost Amortization		286,639		224,987
Amortization of Discount on Convertible Debt		626,562		587,828
Gain on Disposition of Property, Plant, and Equipment and Intangible Assets		(22,035,666)		—
Accretion of Commercial Loan Origination Fees		(29,684)		—
Deferred Income Taxes		8,618,862		11,042,346
Non-Cash Compensation		897,325		743,164
Decrease (Increase) in Assets:
Refundable Income Taxes		40,918		(255,568)
Land and Development Costs		(2,690,531)		11,741,518
Impact Fees and Mitigation Credits		400,033		807,000
Other Assets		(1,261,751)		1,144,668
Increase (Decrease) in Liabilities:
Accounts Payable		(134,802)		(159,045)
Accrued and Other Liabilities		(2,622,060)		(1,632,249)
Deferred Revenue		515,483		(271,800)
Net Cash Provided By Operating Activities		14,262,507		45,295,152
Cash Flow from Investing Activities:
Acquisition of Property, Plant, and Equipment and Intangible Lease Assets and Liabilities		(28,908,410)		(46,621,871)
Acquisition of Land		(2,141,853)		—
Cash Contribution for Interest in Joint Venture		(2,050,001)		—
Proceeds from Disposition of Property, Plant, and Equipment		26,377,525		—
Principal Payments Received on Commercial Loan Investments		8,960,467		—
Net Cash Provided By (Used In) Investing Activities		2,237,728		(46,621,871)
Cash Flow from Financing Activities:
Proceeds from Long-Term Debt		36,300,000		19,500,000
Payments on Long-Term Debt		(55,667,484)		(17,800,000)
Cash Paid for Loan Fees		(228,473)		(48,095)
Cash Proceeds from Exercise of Stock Options and Stock Issuance		115,506		141,184
Cash Used to Purchase Common Stock		(2,192,445)		(5,512,960)
Cash Paid for Vesting of Restricted Stock		(498,374)		(261,621)
Dividends Paid		(664,495)		(446,070)
Net Cash Used In Financing Activities		(22,835,765)		(4,427,562)
Net Decrease in Cash		(6,335,530)		(5,754,281)
Cash, Beginning of Year		13,067,540		17,635,031
Cash, End of Period	$	6,732,010	$	11,880,750

Reconciliation of Cash to the Consolidated Balance Sheets:
Cash and Cash Equivalents	$	4,312,324	$	7,153,369
Restricted Cash		2,419,686		4,727,381
Total Cash as of June 30, 2018 and 2017, respectively	$	6,732,010	$	11,880,750

See Accompanying Notes to Consolidated Financial Statements

7

CONSOLIDATED-TOMOKA LAND CO.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(Unaudited)

Supplemental Disclosure of Cash Flows:

Income taxes refunded, net of payments made, totaled approximately $18,000 during the six months ended June 30, 2018. Income taxes refunded, net of payments made, totaled approximately $531,000 during the six months ended June 30, 2017.

Interest totaling approximately $4.2 million and $3.4 million was paid during the six months ended June 30, 2018 and 2017, respectively. No interest was capitalized during the six months ended June 30, 2018 or 2017.

In connection with the Mitigation Bank transaction (hereinafter defined in Note 5, “Land and Subsurface Interests”), the Company recognized a gain totaling approximately $18.4 million. The non-cash components of the gain totaled approximately $5.1 million and were reflected as an increase in the Investment in Joint Venture of approximately $6.7 million, an increase in Accrued and Other Liabilities of approximately $300,000, and a decrease in Land and Development Costs of approximately $1.3 million on the accompanying consolidated balance sheets as of June 30, 2018. 

In connection with the acquisition of the property in Aspen, Colorado, the tenant contributed $1.5 million of the $28.0 million purchase price at closing on February 21, 2018. The $1.5 million purchase contribution was reflected as an increase in Income Property, Land, Buildings, and Improvements and Deferred Revenue on the accompanying consolidated balance sheets as of June 30, 2018.

In connection with the construction of the beachfront restaurant leased to Cocina 214 Restaurant & Bar in Daytona Beach, Florida, the tenant contributed approximately $1.9 million of the building and tenant improvements owned by the Company through direct payments to various third-party construction vendors. The approximately $1.9 million asset contribution was reflected as an increase in Income Property, Land, Buildings, and Improvements and Deferred Revenue on the accompanying consolidated balance sheets as of June 30, 2018.

In connection with the Golf Course Land Purchase (hereinafter defined in Note 15, “Accrued and Other Liabilities”), each year the Company is obligated to pay the City of Daytona Beach, Florida (the “City”) an annual surcharge of $1 per golf round played (the “Per-Round Surcharge”) with an annual minimum Per-Round Surcharge of $70,000 and a maximum aggregate amount of the Per-Round Surcharge paid equal to $700,000. The maximum amount of $700,000 represents contingent consideration and was reflected as an increase in Golf Buildings, Improvements, and Equipment and also as an increase in Accrued and Other Liabilities on the accompanying consolidated balance sheets as of June 30, 2017. 

See Accompanying Notes to Consolidated Financial Statements

8

NOTE 1. DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS

Description of Business

The terms “us,” “we,” “our,” and “the Company” as used in this report refer to Consolidated-Tomoka Land Co. together with our consolidated subsidiaries.

We are a diversified real estate operating company. We own and manage thirty-six commercial real estate properties in thirteen states in the United States. As of June 30, 2018, we owned twenty-nine single-tenant and seven multi-tenant income-producing properties with approximately 2.1 million square feet of gross leasable space. We also own and manage a portfolio of undeveloped land totaling approximately 5,500 acres in Daytona Beach, Florida. As of June 30, 2018, we have one commercial loan investment, a fixed-rate first mortgage loan. We have golf operations which consist of the LPGA International Golf Club, also located in Daytona Beach, which is managed by a third party. We also lease some of our land for eighteen billboards, have agricultural operations that are managed by a third party, which consist of leasing land for hay production, timber harvesting, and hunting leases, and own and manage Subsurface Interests (hereinafter defined). The results of our agricultural and subsurface leasing operations are included in Agriculture and Other Income and Real Estate Operations, respectively, in our consolidated statements of operations.

Interim Financial Information

The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited consolidated financial statements do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, which provides a more complete understanding of the Company’s accounting policies, financial position, operating results, business properties, and other matters. The unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the financial position of the Company and the results of operations for the interim periods.

The results of operations for the six months ended June 30, 2018 are not necessarily indicative of results to be expected for the year ending December 31, 2018.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and other entities in which we have a controlling interest. Any real estate entities or properties included in the consolidated financial statements have been consolidated only for the periods that such entities or properties were owned or under control by us. All inter-company balances and transactions have been eliminated in the consolidated financial statements.

Use of Estimates in Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which amends its guidance on the recognition and reporting of revenue from contracts with customers. In April 2016, the FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers was issued. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company completed its evaluation of the provisions during the year ended December 31, 2017 and determined there was no impact on the Company’s revenue recognition within the consolidated financial statements. All required disclosures relating to FASB ASC Topic 606 have been implemented herein as required by the standard. The Company adopted FASB ASC Topic 606 effective January 1, 2018 utilizing the modified retrospective method.

9

In January 2016, the FASB issued ASU 2016-01, relating to the recognition and measurement of financial assets and financial liabilities. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2016-01 effective January 1, 2018 and determined there was no material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, which requires entities to recognize assets and liabilities that arise from financing and operating leases and to classify those finance and operating lease payments in the financing or operating sections, respectively, of the statement of cash flows pursuant to FASB ASC Topic 842, Leases. The amendments in this update are effective for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating FASB ASC Topic 842, Leases to determine the potential impact, if any, the adoption will have on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, which clarifies the appropriate classification of certain cash receipts and payments in the statement of cash flows. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2016-15 effective January 1, 2018 and determined there was no material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, which addresses diversity in the classification and presentation of changes in restricted cash in the statement of cash flows as operating, investing, or financing activities. The Company adopted ASU 2016-18 effective January 1, 2018 and has classified the changes in restricted cash between operating, investing, and financing in the consolidated statements of cash flows as applicable per the new guidance. 

In February 2018, the FASB issued ASU 2018-02, which amends the guidance allowing for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this update are effective for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the provisions to determine the potential impact, if any, the adoption will have on its consolidated financial statements.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, bank demand accounts, and money market accounts having original maturities of 90 days or less. The Company’s bank balances as of June 30, 2018 include certain amounts over the Federal Deposit Insurance Corporation limits.

Restricted Cash

Restricted cash totaled approximately $2.4 million at June 30, 2018 of which approximately $1.2 million is being held in three separate escrow accounts related to three separate land transactions which closed in December 2013, February 2017, and March 2018; approximately $127,000 is being held in a reserve for interest and property taxes for the $3.0 million first mortgage loan investment originated in July 2017; approximately $185,000 is being held in a capital replacement reserve account in connection with our financing of six income properties with Wells Fargo Bank, NA (“Wells Fargo”); and approximately $918,000 is being held in a leasing reserve in connection with our acquisition of the property in Aspen, Colorado in February 2018.

Derivative Financial Instruments and Hedging Activity

Interest Rate Swap. In conjunction with the variable-rate mortgage loan secured by our property located in Raleigh, North Carolina leased to Wells Fargo, the Company entered into an interest rate swap to fix the interest rate (the “Interest Rate Swap”). The Company accounts for its cash flow hedging derivative in accordance with FASB ASC Topic 815-20, Derivatives and Hedging. Depending upon the hedge’s value at each balance sheet date, the derivative is included in either Other Assets or Accrued and Other Liabilities on the consolidated balance sheet at its fair value. On the date the Interest Rate Swap was entered into, the Company designated the derivative as a hedge of the variability of cash flows to be paid related to the recognized long-term debt liability.

10

The Company formally documented the relationship between the hedging instrument and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. At the hedge’s inception, the Company formally assessed whether the derivative that is used in hedging the transaction is highly effective in offsetting changes in cash flows of the hedged item, and we will continue to do so on an ongoing basis. As the terms of the Interest Rate Swap and the associated debt are identical, the Interest Rate Swap qualifies for the shortcut method, therefore, it is assumed that there is no hedge ineffectiveness throughout the entire term of the Interest Rate Swap.

Changes in fair value of the Interest Rate Swap that are highly effective and designated and qualified as a cash-flow hedge are recorded in other comprehensive income and loss, until earnings are affected by the variability in cash flows of the designated hedged item.

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial assets and liabilities including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued and other liabilities at June 30, 2018 and December 31, 2017, approximate fair value because of the short maturity of these instruments. The carrying amount of the Company’s investments in variable rate commercial loans approximates fair value at December 31, 2017, since the floating rates of the loans reasonably approximate current market rates for notes with similar risks and maturities. There were no investments in variable rate commercial loans as of June 30, 2018. The carrying value of the Company’s credit facility approximates current market rates for revolving credit arrangements with similar risks and maturities. The face value of the Company’s fixed rate commercial loan investment, mortgage notes, and convertible debt is measured at fair value based on current market rates for financial instruments with similar risks and maturities. See Note 7, “Fair Value of Financial Instruments.”

Fair Value Measurements

The Company’s estimates of fair value of financial and non-financial assets and liabilities is based on the framework established by GAAP. The framework specifies a hierarchy of valuation inputs which was established to increase consistency, clarity and comparability in fair value measurements and related disclosures. GAAP describes a fair value hierarchy based upon three levels of inputs that may be used to measure fair value, two of which are considered observable and one that is considered unobservable. The following describes the three levels:

· Level 1 – Valuation is based upon quoted prices in active markets for identical assets or liabilities.

· Level 2 – Valuation is based upon inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

· Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include option pricing models, discounted cash flow models and similar techniques.

Classification of Commercial Loan Investments

Loans held for investment are stated at the principal amount outstanding and include the unamortized deferred loan fees offset by any applicable unaccreted purchase discounts and origination fees, if applicable. Loans held for sale are classified separately and stated at the lower of cost or fair value once a decision has been made to sell loans not previously for sale.

11

Commercial Loan Investment Impairment

For each of the Company’s commercial loans held for investment, the Company evaluates the performance of the collateral property and the financial and operating capabilities of the borrower/guarantor, in part to assess whether any deterioration in the credit has occurred, and for possible impairment of the loan. Impairment would reflect the Company’s determination that it is probable that all amounts due according to the contractual terms of the loan would not be collected. Impairment is measured based on the present value of the expected future cash flows from the loan discounted at the effective rate of the loan or the fair value of the collateral. Upon measurement of impairment, the Company would record an allowance to reduce the carrying value of the loan with a corresponding recognition of loss in the results of operations. Significant exercise of judgment is required in determining impairment, including assumptions regarding the estimate of expected future cash flows, collectability of the loan, the value of the underlying collateral and other provisions including guarantees. The Company has determined that, as of June 30, 2018 and December 31, 2017, no allowance for impairment was required.

Recognition of Interest Income from Commercial Loan Investments

Interest income on commercial loan investments includes interest payments made by the borrower and the accretion of purchase discounts and loan origination fees, offset by the amortization of loan costs. Interest payments are accrued based on the actual coupon rate and the outstanding principal balance, and purchase discounts and loan origination fees are accreted into income using the effective yield method, adjusted for prepayments.

Impact Fees and Mitigation Credits

Impact fees and mitigation credits are stated at historical cost. As these assets are sold, the related revenues and cost basis are reported as revenues from, and direct costs of, real estate operations, respectively, in the consolidated statements of operations.

Accounts Receivable

Accounts receivable related to income properties, which are classified in other assets on the consolidated balance sheets, primarily consist of tenant reimbursable expenses. Receivables related to tenant reimbursable expenses totaled approximately $1.3 million and $895,000 as of June 30, 2018 and December 31, 2017, respectively.

Accounts receivable related to real estate operations, which are classified in other assets on the consolidated balance sheets, totaled approximately $2.1 million and $2.2 million as of as of June 30, 2018 and December 31, 2017, respectively. As more fully described in Note 10, “Other Assets,” these accounts receivable are primarily related to the reimbursement of certain infrastructure costs completed by the Company in conjunction with two land sale transactions that closed during the fourth quarter of 2015.

Trade accounts receivable primarily consist of receivables related to the golf operations, which are classified in other assets on the consolidated balance sheets. Trade accounts receivable related to golf operations, which primarily consist of amounts due from members or from private events, totaled approximately $287,000 and $349,000 as of June 30, 2018 and December 31, 2017, respectively.  

The collectability of the aforementioned receivables is determined based on the aging of the receivable and a review of the specifically identified accounts using judgments. As of June 30, 2018 and December 31, 2017, no allowance for doubtful accounts was required.

Purchase Accounting for Acquisitions of Real Estate Subject to a Lease

In accordance with the FASB guidance on business combinations, the fair value of the real estate acquired with in-place leases is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their relative fair values.

The fair value of the tangible assets of an acquired leased property is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, building and tenant improvements based on the determination of the fair values of these assets.

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In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as other assets or liabilities based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease, including the probability of renewal periods. The capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. The capitalized below-market lease values are amortized as an increase to rental income over the initial term unless the Company believes that it is likely that the tenant will renew the option whereby the Company amortizes the value attributable to the renewal over the renewal period.

The aggregate value of other acquired intangible assets, consisting of in-place leases, is measured by the excess of (i) the purchase price paid for a property after adjusting existing in-place leases to market rental rates over (ii) the estimated fair value of the property as-if-vacant, determined as set forth above. The value of in-place leases exclusive of the value of above-market and below-market in-place leases is amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off. The value of tenant relationships is reviewed on individual transactions to determine if future value was derived from the acquisition.

In January 2017, the FASB issued ASU 2017-01, Business Combinations which clarified the definition of a business. Pursuant to ASU 2017-01, the acquisition of an income property subject to a lease no longer qualifies as a business combination, but rather an asset acquisition, accordingly acquisition costs have been capitalized.

Sales of Real Estate

Gains and losses on sales of real estate are accounted for as required by FASB ASC Topic 606, Revenue from Contracts with Customers. The Company recognizes revenue from the sales of real estate when the Company transfers the promised goods and/or services in the contract based on the transaction price allocated to the performance obligations within the contract. As market information becomes available, real estate cost basis is analyzed and recorded at the lower of cost or market.

Income Taxes

The Company uses the asset and liability method to account for income taxes. Deferred income taxes result primarily from the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. See Note 18, “Income Taxes.” In June 2006, the FASB issued additional guidance, which clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements included in income taxes. The interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The interpretation also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. In accordance with FASB guidance included in income taxes, the Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. Additionally, the Company believes that its accruals for tax liabilities are adequate. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to the FASB guidance.

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NOTE 2. REVENUE RECOGNITION

The Company implemented FASB ASC Topic 606, Revenue from Contracts with Customers effective January 1, 2018 utilizing the modified retrospective method.

The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the three months ended June 30, 2018:

				Interest Income
		Income		from Commercial		Real Estate		Golf		Agriculture and		Total
		Properties		Loan Investments		Operations		Operations		Other Income		Revenues
		($000's)		($000's)		($000's)		($000's)		($000's)		($000's)
Major Good / Service:
	Lease Revenue - Base Rent	$	7,365	$	—	$	—	$	—	$	11	$	7,376
	Lease Revenue - CAM		891		—		—		—		—		891
	Lease Revenue - Reimbursements		801		—		—		—		—		801
	Lease Revenue - Billboards		70		—		—		—		—		70
	Above / Below Market Lease Accretion		600		—		—		—		—		600
	Contributed Leased Assets Accretion		85		—		—		—		—		85
	Lease Incentive Amortization		(76)		—		—		—		—		(76)
	Interest from Commercial Loan Investments		—		274		—		—		—		274
	Land Sale Revenue		—		—		1,734		—		—		1,734
	Impact Fee and Mitigation Credit Sales		—		—		470		—		—		470
	Subsurface Lease Revenue		—		—		201		—		—		201
	Subsurface Revenue - Other		—		—		79		—		—		79
	Golf Operations		—		—		—		1,283		—		1,283
	Interest and Other Revenue		45		—		—		—		—		45
	Total Revenues	$	9,781	$	274	$	2,484	$	1,283	$	11	$	13,833
Timing of Revenue Recognition:
	Asset/Good Transferred at a Point in Time	$	—	$	—	$	2,283	$	1,041	$	—	$	3,324
	Services Transferred Over Time		45		—		—		242		—		287
	Over Lease Term		9,736		—		201		—		11		9,948
	Commercial Loan Investment Related Revenue		—		274		—		—		—		274
	Total Revenues	$	9,781	$	274	$	2,484	$	1,283	$	11	$	13,833

The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the three months ended June 30, 2017:

				Interest Income
		Income		from Commercial		Real Estate		Golf		Agriculture and		Total
		Properties		Loan Investments		Operations		Operations		Other Income		Revenues
		($000's)		($000's)		($000's)		($000's)		($000's)		($000's)
Major Good / Service:
	Lease Revenue - Base Rent	$	6,114	$	—	$	—	$	—	$	11	$	6,125
	Lease Revenue - CAM		466		—		—		—		—		466
	Lease Revenue - Reimbursements		371		—		—		—		—		371
	Lease Revenue - Billboards		65		—		—		—		—		65
	Above / Below Market Lease Accretion		550		—		—		—		—		550
	Interest from Commercial Loan Investments		—		553		—		—		—		553
	Land Sale Revenue		—		—		10,858		—		—		10,858
	Revenue from Reimbursement of Infrastructure Costs		—		—		955		—		—		955
	Impact Fee and Mitigation Credit Sales		—		—		1,222		—		—		1,222
	Subsurface Lease Revenue		—		—		201		—		—		201
	Subsurface Revenue - Other		—		—		21		—		—		21
	Golf Operations		—		—		—		1,384		—		1,384
	Timber Sales Revenue		—		—		—		—		68		68
	Interest and Other Revenue		(1)		—		—		—		—		(1)
	Total Revenues	$	7,565	$	553	$	13,257	$	1,384	$	79	$	22,838
Timing of Revenue Recognition:
	Asset/Good Transferred at a Point in Time	$	—	$	—	$	12,101	$	1,316	$	68	$	13,485
	Services Transferred Over Time		(1)		—		955		68		—		1,022
	Over Lease Term		7,566		—		201		—		11		7,778
	Commercial Loan Investment Related Revenue		—		553		—		—		—		553
	Total Revenues	$	7,565	$	553	$	13,257	$	1,384	$	79	$	22,838

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The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the six months ended June 30, 2018:

				Interest Income
		Income		from Commercial		Real Estate		Golf		Agriculture and		Total
		Properties		Loan Investments		Operations		Operations		Other Income		Revenues
		($000's)		($000's)		($000's)		($000's)		($000's)		($000's)
Major Good / Service:
	Lease Revenue - Base Rent	$	14,787	$	—	$	—	$	—	$	22	$	14,809
	Lease Revenue - CAM		1,505		—		—		—		—		1,505
	Lease Revenue - Reimbursements		1,365		—		—		—		—		1,365
	Lease Revenue - Billboards		134		—		—		—		—		134
	Above / Below Market Lease Accretion		1,179		—		—		—		—		1,179
	Contributed Leased Assets Accretion		95		—		—		—		—		95
	Lease Incentive Amortization		(151)		—		—		—		—		(151)
	Interest from Commercial Loan Investments		—		575		—		—		—		575
	Land Sale Revenue		—		—		14,851		—		—		14,851
	Impact Fee and Mitigation Credit Sales		—		—		586		—		—		586
	Subsurface Lease Revenue		—		—		400		—		—		400
	Subsurface Revenue - Other		—		—		626		—		—		626
	Golf Operations		—		—		—		2,638		—		2,638
	Interest and Other Revenue		73		—		—		—		—		73
	Total Revenues	$	18,987	$	575	$	16,463	$	2,638	$	22	$	38,685
Timing of Revenue Recognition:
	Asset/Good Transferred at a Point in Time	$	—	$	—	$	16,063	$	2,136	$	—	$	18,199
	Services Transferred Over Time		73		—		—		502		—		575
	Over Lease Term		18,914		—		400		—		22		19,336
	Commercial Loan Investment Related Revenue		—		575		—		—		—		575
	Total Revenues	$	18,987	$	575	$	16,463	$	2,638	$	22	$	38,685

The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the six months ended June 30, 2017:

				Interest Income
		Income		from Commercial		Real Estate		Golf		Agriculture and		Total
		Properties		Loan Investments		Operations		Operations		Other Income		Revenues
		($000's)		($000's)		($000's)		($000's)		($000's)		($000's)
Major Good / Service:
	Lease Revenue - Base Rent	$	11,668	$	—	$	—	$	—	$	22	$	11,690
	Lease Revenue - CAM		965		—		—		—		—		965
	Lease Revenue - Reimbursements		791		—		—		—		—		791
	Lease Revenue - Billboards		126		—		—		—		—		126
	Above / Below Market Lease Accretion		1,081		—		—		—		—		1,081
	Interest from Commercial Loan Investments		—		1,090		—		—		—		1,090
	Land Sale Revenue		—		—		39,564		—		—		39,564
	Revenue from Reimbursement of Infrastructure Costs		—		—		1,276		—		—		1,276
	Impact Fee and Mitigation Credit Sales		—		—		1,439		—		—		1,439
	Subsurface Lease Revenue		—		—		400		—		—		400
	Subsurface Revenue - Other		—		—		53		—		—		53
	Golf Operations		—		—		—		2,858		—		2,858
	Timber Sales Revenue		—		—		—		—		211		211
	Interest and Other Revenue		7		—		—		—		—		7
	Total Revenues	$	14,638	$	1,090	$	42,732	$	2,858	$	233	$	61,551
Timing of Revenue Recognition:
	Asset/Good Transferred at a Point in Time	$	—	$	—	$	41,056	$	2,647	$	211	$	43,914
	Services Transferred Over Time		7		—		1,276		211		—		1,494
	Over Lease Term		14,631		—		400		—		22		15,053
	Commercial Loan Investment Related Revenue		—		1,090		—		—		—		1,090
	Total Revenues	$	14,638	$	1,090	$	42,732	$	2,858	$	233	$	61,551

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NOTE 3. INCOME PROPERTIES

During the six months ended June 30, 2018, the Company acquired one single-tenant income property for a purchase price of $28.0 million, or an acquisition cost of approximately $29.0 million including capitalized acquisition costs. Of the total acquisition cost, approximately $12.0 million was allocated to land, approximately $15.0 million was allocated to buildings and improvements, approximately $2.8 million was allocated to intangible assets pertaining to the in-place lease value, leasing fees and above market lease value, and approximately $0.8 million was allocated to intangible liabilities for the below market lease value. The weighted average amortization period for the intangible assets and liabilities was approximately 20.0 years at acquisition. The property acquired during the six months ended June 30, 2018 is described below:

Tenant Description	Tenant Type	Property Location	Date of Acquisition	Property Square-Feet	Property Acres	Purchase Price		Percentage Leased		Remaining Lease Term (in years)
Master Tenant for Commercial Building	Single-Tenant	Aspen, Colorado	02/21/18	19,596	0.18	$	28,000,000		100%		20.0

In conjunction with the closing of the property in Aspen, Colorado, the master tenant contributed approximately $1.5 million of the purchase price, resulting in a net cash investment by the Company of approximately $26.5 million. The $1.5 million purchase price contribution is reflected as deferred revenue and will be accreted into income property rental revenue over the term of the lease.

As more fully described in Note 5, “Land and Subsurface Interests,” in January 2018, construction was completed and the leases commenced on two restaurant properties on the Company’s six-acre beachfront parcel. The tenants, LandShark Bar & Grill and Cocina 214 Restaurant & Bar, both commenced operations in January 2018.

Four income properties were disposed of during the six months ended June 30, 2018. On March 26, 2018, the Company sold its four self-developed, multi-tenant office properties located in Daytona Beach, Florida for approximately $11.4 million (the “Self-Developed Properties Sale”). The sale included the 22,012 square-foot Concierge office building, the 30,720 square-foot Mason Commerce Center comprising two office buildings, and the 15,360 Williamson Business Park office building. The gain on the sale totaled approximately $3.7 million, or approximately $0.49 per share, after tax. The Company utilized the proceeds to fund a portion of the previously acquired income property located near Portland, Oregon leased to Wells Fargo, through a reverse 1031 like-kind exchange structure. As part of the transaction, the Company entered into a lease of its approximately 7,600 square foot office space in Williamson Business Park for approximately 5 years at a market rental rate.

During the six months ended June 30, 2017, the Company acquired three single-tenant income properties and two multi-tenant income properties, for an aggregate purchase price of approximately $40.0 million, or an aggregate acquisition cost of approximately $40.7 million including capitalized acquisition costs. Of the total acquisition cost, approximately $18.0 million was allocated to land, approximately $19.3 million was allocated to buildings and improvements, approximately $4.9 million was allocated to intangible assets pertaining to the in-place lease value, leasing fees and above market lease value, and approximately $1.5 million was allocated to intangible liabilities for the below market lease value. The weighted average amortization period for the intangible assets and liabilities is approximately 9.8 years.

No income properties were disposed of during the six months ended June 30, 2017.

NOTE 4. COMMERCIAL LOAN INVESTMENTS

Our investments in commercial loans or similar structured finance investments, such as mezzanine loans or other subordinated debt, have been and are expected to continue to be secured by commercial or residential real estate or the borrower’s pledge of its ownership interest in the entity that owns the real estate. The first mortgage loans we invest in or originate are for commercial real estate located in the United States and its territories, and are current or performing with either a fixed or floating rate. Some of these loans may be syndicated in either a pari-passu or senior/subordinated structure. Commercial first mortgage loans generally provide for a higher recovery rate due to their senior position in the underlying collateral. Commercial mezzanine loans are typically secured by a pledge of the borrower’s equity ownership in the underlying commercial real estate. Unlike a mortgage, a mezzanine loan is not secured by a lien on the property. An investor’s rights in a mezzanine loan are usually governed by an intercreditor agreement that provides holders with the rights to cure defaults and exercise control on certain decisions of any senior debt secured by the same commercial property.

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On June 13, 2018, the variable rate B-Note (the “B-Note”) held by the Company and secured by real estate located in Sarasota, Florida matured and was repaid by the borrower. The Company purchased the B-Note in May 2014. The proceeds of approximately $9.0 million were used to pay down the Company’s Credit Facility.

As of June 30, 2018, the Company owned one performing commercial loan investment with an outstanding principal balance of approximately $3.0 million. The loan is secured by real estate located in Daytona Beach Shores, Florida.

The Company’s commercial loan investment was comprised of the following at June 30, 2018:

	Date of	Maturity	Original Face		Current Face		Carrying
Description	Investment	Date	Amount		Amount		Value		Coupon Rate
First Mortgage – Land Parcel, Daytona Beach Shores, FL	July 2017	August 2018		3,000,000		3,000,000		2,994,916	11.00%

The carrying value of the commercial loan investment portfolio at June 30, 2018 consisted of the following:

	Total
Current Face Amount	$	3,000,000
Unamortized Fees		—
Unaccreted Origination Fees		(5,084)
Total Commercial Loan Investments	$	2,994,916

The Company’s commercial loan investment portfolio was comprised of the following at December 31, 2017:

	Date of	Maturity	Original Face		Current Face		Carrying
Description	Investment	Date	Amount		Amount		Value		Coupon Rate
B-Note – Retail Shopping Center, Sarasota, FL	May 2014	June 2018	$	8,960,467	$	8,960,467	$	8,960,467	30 ‑day LIBOR plus 7.50%
First Mortgage – Land Parcel, Daytona Beach Shores, FL	July 2017	August 2018		3,000,000		3,000,000		2,965,232	11.00%
Total			$	11,960,467	$	11,960,467	$	11,925,699

The carrying value of the commercial loan investment portfolio at December 31, 2017 consisted of the following:

	Total
Current Face Amount	$	11,960,467
Unamortized Fees		—
Unaccreted Origination Fees		(34,768)
Total Commercial Loan Investments	$	11,925,699

NOTE 5. LAND AND SUBSURFACE INTERESTS

As of June 30, 2018, the Company owned approximately 5,500 acres of undeveloped land in Daytona Beach, Florida, along six miles of the west and east sides of Interstate 95. Currently, the majority of this land is used for agricultural purposes. As of August 1, 2018, approximately 78% of this acreage, or nearly 4,300 acres, is under contract to be sold. Approximately 1,000 acres of our land holdings are located on the east side of Interstate 95 and are generally well suited for commercial development. Approximately 4,500 acres of our land holdings are located on the west side of Interstate 95 and the majority of this land is generally well suited for residential development. Included in the western land is approximately 1,000 acres, primarily an 850-acre parcel and three smaller parcels, which are located further west of Interstate 95 and a few miles north of Interstate 4 that are generally well suited for industrial purposes.

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Real estate operations revenue consisted of the following for the three and six months ended June 30, 2018 and 2017, respectively:

		Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Revenue Description	($000's)		($000's)		($000's)		($000's)
Land Sales Revenue	$	1,734	$	10,858	$	14,851	$	39,564
Revenue from Reimbursement of Infrastructure Costs		—		955		—		1,276
Impact Fee and Mitigation Credit Sales		470		1,222		586		1,439
Subsurface Revenue		280		222		1,026		453
Total Real Estate Operations Revenue	$	2,484	$	13,257	$	16,463	$	42,732

2018 Land Sales. During the six months ended June 30, 2018, the Company completed land transactions representing approximately 2,559 acres of land including: (i) the sale of a 70% interest in the Mitigation Bank (hereinafter defined) that holds approximately 2,492 acres of land for proceeds of $15.3 million and (ii) four land sales totaling approximately 67 acres for aggregate proceeds of approximately $15.7 million, as described below:

					Gross Sales				Gain
			Date of	No. of	Price		Price		on Sale (1)
	Buyer (or Description)	Location	Sale	Acres	($000's)		per Acre		($000's)
1	Buc-ee's	East of I-95	03/16/18	34.9	$	13,948	$	400,000	$	11,926
		Subtotal - Q1 2018		34.9		13,948		400,000		11,926
2	Residential	West of I-95	06/12/18	19.0		265		14,000		226
3	Commercial / Retail	East of I-95	06/25/18	5.7		625		110,000		224
4	Commercial / Retail	East of I-95	06/28/18	7.7		819		106,000		628
		Subtotal - Q2 2018		32.4		1,709		53,000		1,078
		YTD Q2 2018		67.3	$	15,657	$	233,000	$	13,004

(1)The gain recognized during the six months ended June 30, 2018 on the Buc-ee’s sale totaling approximately $11.9 million excludes approximately $831,000 held in an escrow reserve related to the portion of the acreage sold for which the Company remains obligated to perform wetlands mitigation. The Company expects to recognize the remaining gain of approximately $831,000 upon completion of the mitigation work. See Note 16, “Deferred Revenue”.

Mitigation Bank. The mitigation bank transaction consists of the sale of a 70% interest in the entity that holds approximately 2,492 acres of land that has been permitted for the creation of a wetland mitigation bank (the “Venture” or the “Mitigation Bank”). The purchaser of the 70% interest in the Mitigation Bank is comprised of certain funds and accounts managed by an investment advisor subsidiary of BlackRock, Inc. (“BlackRock”). The Company retained an approximately 30% non-controlling interest. A third-party was retained by the Venture as the day-to-day manager of the Mitigation Bank property; responsible for the maintenance, generation, tracking, and other aspects of wetland mitigation credits.

The Mitigation Bank intends to engage in the creation and sale of both federal and state wetland mitigation credits. These credits will be created pursuant to the applicable permits that have been or will be issued to the Venture from the federal and state regulatory agencies that exercise jurisdiction over the awarding of such credits, but no assurances can be given as to the issuance, marketability or value of the credits. The Venture received the permit from the state regulatory agency on June 8, 2018 with the potential for 355 state credits to be awarded. Receipt of the remaining federal permit and the award of the initial state credits is anticipated to occur prior to the end of the year.

The gain on the sale of the 70% interest in the Mitigation Bank totaled approximately $18.4 million and is comprised of the gain on the sale of 70% interest for proceeds of $15.3 million as well as the gain on the retained 30% interest pursuant to FASB ASC Topic 610-20, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets. The gain is included in the Gain on Disposition of Assets in the Company’s consolidated statements of operations. As of June 30, 2018, the approximately $6.7 million Investment in Joint Venture included on the Company’s consolidated balance sheets is comprised of the fair market value of the 30% retained interest in the Venture.

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The operating agreement of the Venture (the “Operating Agreement”) executed in conjunction with the mitigation bank transaction, stipulates that the Company shall arrange for sales to unrelated third parties of mitigation credits of the Mitigation Bank totaling no less than $6 million of revenue to the Mitigation Bank, net of commissions, by the end of 2020, utilizing a maximum of 60 mitigation credits to achieve the minimum sales requirement (the “Minimum Sales Requirement”). The Operating Agreement stipulates that if the Minimum Sales Requirement is not achieved, then BlackRock has the right, but is not required, to have the Company purchase the number of combined mitigation credits necessary to reach the Minimum Sales Requirement (the “Minimum Sales Guarantee”). The Company estimates the fair value of the Minimum Sales Guarantee to be approximately $100,000 which was recorded as a reduction in the gain on the transaction and is included in Accrued and Other Liabilities in the Company’s consolidated balance sheet as of June 30, 2018.

Additionally, the Operating Agreement provides BlackRock the right to cause the Company to purchase a maximum of 8.536 mitigation credits per quarter from the Mitigation Bank Venture at a price equal to 60% of the then fair market value for mitigation credits (the “Put Right”). The Put Right is applicable even if the Mitigation Bank has not yet had sufficient mitigation credits released to the Mitigation Bank by the applicable federal and state regulatory agencies. Further, in any quarter that BlackRock does not exercise its Put Right, the permitted amount of mitigation credits for the applicable quarter can be rolled forward to future calendar quarters. However, the Operating Agreement also stipulates that any amount of third-party sales of mitigation credits will reduce the Put Rights outstanding on a one-for-one basis, if the sales price of the third-party sales equals or exceeds the prices stipulated by the Put Right. Further, any sales of mitigation credits to third parties at the requisite minimum prices in a quarter that exceeds the quarterly amount of BlackRock’s Put Right, will reduce BlackRock’s Put Rights in future calendar quarters also on a one-for-one basis. The maximum potential of future payments for the Company pursuant to the Put Right is approximately $27 million. The Company estimates the fair value of the Put Right to be approximately $200,000, which was recorded as a reduction in the gain on the transaction and is included in Accrued and Other Liabilities in the Company’s consolidated balance sheet as of June 30, 2018.

2017 Land Sales. During the six months ended June 30, 2017, a total of approximately 1,669 acres were sold for approximately $40.5 million as described below:

					Gross Sales				Gain
			Date of	No. of	Price		Price		on Sale (1)
	Buyer (or Description)	Location	Sale	Acres	($000's)		per Acre		($000's)
1	Minto Communities, LLC	West of I-95	02/10/17	1,581.0	$	27,151	$	17,000	$	20,041
2	Commercial	East of I-95	03/22/17	6.4		1,556		245,000		11
		Subtotal - Q1 2017		1,587.4		28,707		18,000		20,052
3	Commercial	East of I-95	04/05/17	27.5		3,218		117,000		2,955
4	Commercial	East of I-95	04/13/17	4.5		1,235		274,000		13
5	Commercial	West of I-95	04/25/17	30.0		2,938		98,000		627
6	Third NADG Land Sale	East of I-95	06/27/17	19.4		4,422		228,000		3,263
		Subtotal - Q2 2017		81.4		11,813		145,000		6,858
		YTD Q2 2017		1,668.8	$	40,520	$	24,000	$	26,910

(1)The gain of approximately $3.3 million on the Third NADG Land Sale includes an infrastructure reimbursement payment of approximately $955,000 received in conjunction with the closing on June 27, 2017.

Pipeline. For a description of our land which is currently under contract, see the land pipeline in Note 19, “Commitment and Contingencies.”

Land Impairments. There were no impairment charges related to the Company’s undeveloped land during the six months ended June 30, 2018 or 2017. 

Beachfront Development. During the first quarter of 2018, the Company completed the construction of two single-tenant restaurants located on the Company’s six-acre beachfront property with a cost basis of approximately $11.7 million, which was included in Land and Development Costs on the Company’s consolidated balance sheet as of December 31, 2017. The total cost of construction was approximately $6.8 million. Upon completion of the construction and commencement of the tenant leases (described herein), the total basis of approximately $18.5 million was transferred to Income Properties, Land, Buildings, and Improvements from Land and Development Costs and Construction in Process

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on the Company’s consolidated balance sheets. The Company’s 15-year lease agreement with the operator of LandShark Bar & Grill, for the approximately 6,264 square foot restaurant property, includes annual rent based on a percentage of the tenant’s net operating income (“NOI”) until the Company has received its investment basis in the property; thereafter, the Company will receive a lower percentage of the tenant’s NOI during the remaining lease term. The Company’s 15-year lease agreement with the operator of Cocina 214 Restaurant & Bar, for the second restaurant property includes annual rent equal to the greater of $360,000 per year or a certain percentage of gross sales, and also provides for additional percentage rent upon the achievement of certain gross sales thresholds.

Daytona Beach Development. We may selectively acquire other real estate in the downtown and beachside areas of Daytona Beach, Florida. We may target either vacant land or land with existing structures that we would demolish and develop into additional income properties. During the first quarter of 2018, the Company acquired a 3-acre parcel of land with existing structures in downtown Daytona Beach, Florida for a purchase price of approximately $2.0 million. As of June 30, 2018, the Company has also acquired other contiguous parcels for a total of approximately 0.9-acres for approximately $1.5 million. We intend to pursue the potential redevelopment of these parcels, which are located nearly adjacent to the location of the future new headquarters of Brown & Brown, Inc. (NYSE: BRO) along with certain other adjacent land parcels, some of which we have under contract for purchase. We intend for our investments in the Daytona Beach area to target opportunistic acquisitions of select catalyst sites, which are typically distressed, with an objective of having short investment horizons. We may seek to partner with developers to develop the sites acquired during the six months ended June 30, 2018, and any other sites we acquire, rather than self-develop the properties.

Other Real Estate Assets. The Company owns impact fees with a cost basis of approximately $199,000 and mitigation credits with a cost basis of approximately $526,000 for a combined total of approximately $725,000 as of June 30, 2018. During the six months ended June 30, 2018, the Company transferred mitigation credits with a basis of approximately $124,000 to the land acquired by Buc-ee’s. During the six months ended June 30, 2018, the Company sold mitigation credits for approximately $455,000, for a gain of approximately $403,000, or $0.05 per share, after tax. During the six months ended June 30, 2017, the Company sold mitigation credits for approximately $1.1 million, for a gain of approximately $932,000, or $0.10 per share, after tax. During the six months ended June 30, 2018 and 2017, the Company received cash payments of approximately $131,000 and $291,000, respectively, for impact fees with a cost basis that was generally of equal value. Additionally, during the six months ended June 30, 2018, impact fees with a cost basis of approximately $72,000 were transferred to the beachfront restaurant leased to LandShark Bar & Grill.

As of December 31, 2017, the Company owned impact fees with a cost basis of approximately $402,000 and mitigation credits with a cost basis of approximately $723,000 for a combined total of approximately $1.1 million.

Subsurface Interests. As of June 30, 2018, the Company owns full or fractional subsurface oil, gas, and mineral interests underlying approximately 461,000 “surface” acres of land owned by others in 20 counties in Florida (the “Subsurface Interests”). The Company leases certain of the Subsurface Interests to mineral exploration firms for exploration. Our subsurface operations consist of revenue from the leasing of exploration rights and in some instances, additional revenues from royalties applicable to production from the leased acreage.

During 2011, an eight-year oil exploration lease was executed covering a portion of our Subsurface Interests. On September 20, 2017, the Company amended the oil exploration lease to, among other things, extend the expiration of the original term for five additional years to the new expiration date of September 22, 2024. The lease is effectively thirteen one-year terms as the lessee has the option to terminate the lease at the end of each lease year. The lessee has exercised renewal options through lease year seven ending September 22, 2018. The terms of the lease state the Company will receive royalty payments if production occurs, and may receive additional annual rental payments if the lease is continued in years eight through thirteen. The lease calls for annual lease payments which are recognized as revenue ratably over the respective twelve-month lease periods. In addition, non-refundable drilling penalty payments are made as required by the drilling requirements in the lease which are recognized as revenue when received.

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Lease payments on the respective acreages and drilling penalties received through lease year seven 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
Lease Year 7 - 9/23/2017 - 9/22/2018	15,000	Hendry		806,683		50,000
Total Payments Received to Date			$	9,827,121	$	1,975,000

(1)Generally, cash payment for the Lease Payment and Drilling Penalty is received on or before the first day of the lease year. The Drilling Penalty, which is due within thirty days from the end of the prior lease year, is recorded as revenue when received, while the Lease Payment is recognized on a straight-line basis over the respective lease term. Pursuant to the amendment for the Year 7 renewal, the Lease Payment and Drilling Penalty were both received on October 11, 2017. See separate disclosure of revenue recognized per period below.

Lease income generated by the annual lease payments is recognized on a straight-line basis over the guaranteed lease term. For both the three and six months ended June 30, 2018 and 2017, respectively, lease income of approximately $201,000 and $400,000 was recognized. There can be no assurance that the oil exploration lease will be extended beyond the expiration of the current term of September 22, 2018 or, if extended, the terms or conditions of such extension.

During the six months ended June 30, 2018 and 2017, the Company also received oil royalties from operating oil wells on 800 acres under a separate lease with a separate operator. Revenues received from oil royalties totaled approximately $12,000 and $18,000, during the three months ended June 30, 2018 and 2017, respectively. Revenues received from oil royalties totaled approximately $44,000 and $49,000, during the six months ended June 30, 2018 and 2017, respectively.

The Company is not prohibited from the disposition of any or all of its Subsurface Interests. Should the Company complete a transaction to sell all or a portion of its Subsurface Interests, the Company may utilize the like-kind exchange structure in acquiring one or more replacement investments including income-producing properties. The Company may release surface entry rights or other rights upon request of a surface owner for a negotiated release fee typically based on a percentage of the surface value. 

During the six months ended June 30, 2018, the Company completed a transaction releasing our surface entry rights on approximately 600 acres in exchange for approximately $185,000 in cash and fee title to approximately 40 additional acres in Hendry County, valued at approximately $320,000. Including the non-cash value received, the gain from the transaction totaled approximately $435,000, or $0.06 per share, after tax. The Company also received cash payments for the release of surface entry rights of approximately $68,000 during the six months ended June 30, 2018. There were no releases of surface entry rights during the six months ended June 30, 2017.  

NOTE 6. INVESTMENT IN JOINT VENTURE

The Investment in Joint Venture on the Company’s consolidated balance sheet represents the Company’s ownership interest in the Mitigation Bank (the “JV Investment”). We have concluded the Mitigation Bank is a variable interest entity and is accounted for under the equity method of accounting as the Company is not the primary beneficiary as defined in FASB ASC Topic 810, Consolidation. The Mitigation Bank is jointly controlled by the members. Under the guidance of FASB ASC 323, Investments-Equity Method and Joint Ventures, the Company uses the equity method to account for the JV Investment.

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The following table provides summarized financial information of the Venture as of June 30, 2018:

	As of
	June 30, 2018
	($000's)
Assets, cash and cash equivalents	$	2,409
Assets, investment in mitigation credit assets		1,424
Total Assets	$	3,833
Equity	$	3,833

NOTE 7. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents the carrying value and estimated fair value of the Company’s financial instruments at June 30, 2018 and December 31, 2017:

	June 30, 2018				December 31, 2017
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Cash and Cash Equivalents - Level 1	$	4,312,324	$	4,312,324	$	6,559,409	$	6,559,409
Restricted Cash - Level 1		2,419,686		2,419,686		6,508,131		6,508,131
Commercial Loan Investments - Level 2		2,994,916		3,031,501		11,925,699		12,015,628
Long-Term Debt - Level 2		177,133,608		179,596,049		195,816,364		200,000,776

To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, were used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts.

The following table presents the fair value of assets measured on a recurring basis by Level as of June 30, 2018:

			Fair Value at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets		Significant Other		Unobservable
			for Identical		Observable Inputs		Inputs
	6/30/2018		Assets (Level 1)		(Level 2)		(Level 3)
Cash Flow Hedge - Interest Rate Swap	$	912,767	$	—	$	912,767	$	—
Total	$	912,767	$	—	$	912,767	$	—

The following table presents the fair value of assets measured on a recurring basis by Level as of December 31, 2017:

			Fair Value at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets		Significant Other		Unobservable
			for Identical		Observable Inputs		Inputs
	12/31/2017		Assets (Level 1)		(Level 2)		(Level 3)
Cash Flow Hedge - Interest Rate Swap	$	606,621	$	—	$	606,621	$	—
Total	$	606,621	$	—	$	606,621	$	—

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NOTE 8. INTANGIBLE LEASE ASSETS AND LIABILITIES

Intangible lease assets and liabilities consist of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their fair values.

Intangible lease assets and liabilities consisted of the following as of June 30, 2018 and December 31, 2017:

	As of
	June 30, 2018		December 31, 2017
Intangible Lease Assets:
Value of In-Place Leases	$	38,046,241	$	36,827,226
Value of Above Market In-Place Leases		2,966,322		2,966,322
Value of Intangible Leasing Costs		12,004,653		10,405,135
Sub-total Intangible Lease Assets		53,017,216		50,198,683
Accumulated Amortization		(14,411,170)		(11,440,624)
Sub-total Intangible Lease Assets—Net		38,606,046		38,758,059
Intangible Lease Liabilities (included in accrued and other liabilities):
Value of Below Market In-Place Leases		(36,109,518)		(35,312,017)
Sub-total Intangible Lease Liabilities		(36,109,518)		(35,312,017)
Accumulated Amortization		6,969,983		5,541,576
Sub-total Intangible Lease Liabilities—Net		(29,139,535)		(29,770,441)
Total Intangible Assets and Liabilities—Net	$	9,466,511	$	8,987,618

The following table reflects the amortization of intangible assets and liabilities during the three and six months ended June 30, 2018 and 2017:

	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
	($000's)		($000's)		($000's)		($000's)
Depreciation and Amortization Expense	$	1,368	$	1,189	$	2,721	$	2,277
Increase to Income Properties Revenue		(600)		(550)		(1,179)		(1,081)
Net Amortization of Intangible Assets and Liabilities	$	768	$	639	$	1,542	$	1,196

The estimated future amortization and accretion of intangible lease assets and liabilities is as follows:

			Future Accretion		Net Future
	Future		to Income		Amortization of
	Amortization		Property		Intangible Assets
Year Ending December 31,	Amount		Revenue		and Liabilities
Remainder of 2018	$	2,916,475	$	(1,182,672)	$	1,733,803
2019		5,452,670		(2,394,193)		3,058,477
2020		5,011,249		(2,327,464)		2,683,785
2021		3,320,813		(2,478,319)		842,494
2022		2,702,885		(2,549,480)		153,405
2023		2,359,734		(2,557,950)		(198,216)
Thereafter		14,985,245		(13,792,482)		1,192,763
Total	$	36,749,071	$	(27,282,560)	$	9,466,511

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NOTE 9. IMPAIRMENT OF LONG-LIVED ASSETS

The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The fair value of long-lived assets required to be assessed for impairment is determined on a non-recurring basis using Level 3 inputs in the fair value hierarchy. These Level 3 inputs may include, but are not limited to, executed purchase and sale agreements on specific properties, third party valuations, discounted cash flow models, and other model-based techniques.

There were no impairment charges during the six months ended June 30, 2018 and 2017.

NOTE 10. OTHER ASSETS

Other assets consisted of the following:

	As of
	June 30, 2018		December 31, 2017
Income Property Tenant Receivables	$	1,318,042	$	895,476
Income Property Straight-line Rent Adjustment		3,439,530		2,517,195
Income Property Lease Incentive		2,545,461		2,696,678
Interest Receivable from Commercial Loan Investments		—		38,078
Cash Flow Hedge - Interest Rate Swap		912,767		606,621
Infrastructure Reimbursement Receivables		2,117,840		2,213,305
Golf Operations Receivables		286,995		349,220
Deferred Deal Costs		471,966		480,257
Prepaid Expenses, Deposits, and Other		2,882,784		3,174,299
Total Other Assets	$	13,975,385	$	12,971,129

Income Property Lease Incentive. As of June 30, 2018, the Income Property Lease Incentive of approximately $2.5 million relates to a tenant improvement allowance of approximately $2.7 million provided to Hilton Grand Vacations in conjunction with the extension of their leases of two buildings from November 30, 2021 to November 30, 2026, offset by approximately $202,000 of accumulated amortization which has been recognized as an offset to rental revenue. The remaining balance will be amortized over the remaining term of the leases.

Infrastructure Reimbursement Receivables. As of June 30, 2018 and December 31, 2017, the Infrastructure Reimbursement Receivables were all related to the land sales within the Tomoka Town Center. The balance as of June 30, 2018 consisted of approximately $1.6 million due from Tanger for infrastructure reimbursement to be repaid in nine remaining annual installments of $175,000, net of a discount of approximately $162,000, and approximately $770,000 due from Sam’s Club for infrastructure reimbursement to be repaid in seven remaining annual installments of $110,000, net of a discount of approximately $65,000.

Deferred Deal Costs. Deferred Deal Costs represent legal costs incurred in advance of the potential execution of and/or closing of a contract for the disposition of assets, primarily land sales. The costs are deferred and expensed at the time the transaction closes or at the time it becomes evident that the transaction will not be completed.

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NOTE 11. COMMON STOCK AND EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is based on the assumption of the conversion of stock options and vesting of restricted stock at the beginning of each period using the treasury stock method at average cost for the periods.

		Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Income Available to Common Shareholders:
Net Income	$	14,162,908	$	3,678,908	$	25,075,207	$	16,425,300
Weighted Average Shares Outstanding		5,529,360		5,531,444		5,530,108		5,566,595
Common Shares Applicable to Stock
Options Using the Treasury Stock Method		—		14,008		31,683		16,463
Total Shares Applicable to Diluted Earnings Per Share		5,529,360		5,545,452		5,561,791		5,583,058
Per Share Information:
Basic
Net Income	$	2.56	$	0.67	$	4.53	$	2.95
Diluted
Net Income	$	2.56	$	0.66	$	4.51	$	2.94

There were no potentially dilutive securities for the three months ended June 30, 2018. The effect of 70,000 potentially dilutive securities was not included for the three months ended June 30, 2017 as the effect would be anti-dilutive. The effect of 15,000 and 77,750 potentially dilutive securities was not included for the six months ended June 30, 2018 and 2017, respectively, as the effect would be anti-dilutive.

The Company intends to settle its 4.50% Convertible Senior Notes due 2020 (the “Convertible Notes”) in cash upon conversion with any excess conversion value to be settled in shares of our common stock. Therefore, only the amount in excess of the par value of the Convertible Notes will be included in our calculation of diluted net income per share using the treasury stock method. As such, the Convertible Notes have no impact on diluted net income per share until the price of our common stock exceeds the current conversion price of $68.63. The average price of our common stock during the six months ended June 30, 2018 and 2017 did not exceed the conversion price which resulted in no additional diluted outstanding shares.

NOTE 12. TREASURY STOCK

In the first quarter of 2017, the Company announced a $10 million stock repurchase program (the “$10 Million Repurchase Program”) under which approximately $4.6 million of the Company’s common stock had been repurchased as of December 31, 2017. During the three months ended June 30, 2018, the Company repurchased 36,804 shares of its common stock on the open market for a total cost of approximately $2.2 million, or an average price per share of $59.57. The shares of the Company’s common stock repurchased during the three months ended June 30, 2018 were returned to the Company’s treasury. On July 18, 2018, the Company’s Board of Directors approved an increase of approximately $7.1 million to the stock repurchase program, refreshing the total program to an aggregate of $10 million.

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NOTE 13. LONG-TERM DEBT

As of June 30, 2018, the Company’s outstanding indebtedness, at face value, was as follows:

	Face		Maturity	Interest
	Value Debt		Date	Rate
Credit Facility	$	50,745,579	September 2021		30 ‑day LIBOR plus 1.50% -2.20%
Mortgage Note Payable (originated with Wells Fargo) (1)		30,000,000	October 2034		4.330%
Mortgage Note Payable (originated with Wells Fargo) (2)		24,886,938	April 2021		30 ‑day LIBOR plus 1.90%
4.50% Convertible Senior Notes due 2020, net of discount		75,000,000	March 2020		4.500%
Total Long-Term Face Value Debt	$	180,632,517

(1)Secured by the Company’s interest in six income properties. The mortgage loan carries a fixed rate of 4.33% per annum during the first ten years of the term, and requires payments of interest only during the first ten years of the loan. After the tenth anniversary of the effective date of the loan, the cash flows, as defined in the related loan agreement, generated by the underlying six income properties must be used to pay down the principal balance of the loan until paid off or until the loan matures. The loan is fully pre-payable after the tenth anniversary of the effective date of the loan.

(2)Secured by the Company’s income property leased to Wells Fargo located in Raleigh, North Carolina. The mortgage loan has a 5-year term with two years interest only, and interest and a 25-year amortization for the balance of the term. The mortgage loan bears a variable rate of interest based on the 30-day LIBOR plus a rate of 190 basis points. The interest rate for this mortgage loan has been fixed through the use of an interest rate swap that fixed the rate at 3.17%. The mortgage loan can be prepaid at any time subject to the termination of the interest rate swap. Amortization of the principal balance began in May 2018.

Credit Facility. The Company’s revolving credit facility (the “Credit Facility”), with Bank of Montreal (“BMO”) serving as the administrative agent for the lenders thereunder, is unsecured with regard to our income property portfolio but is guaranteed by certain wholly-owned subsidiaries of the Company. The Credit Facility bank group is led by BMO and also includes Wells Fargo and Branch Banking & Trust Company. On September 7, 2017, the Company executed the second amendment and restatement of the Credit Facility (the “2017 Revolver Amendment”). Pursuant to the 2017 Revolver Amendment, the Credit Facility matures on September 7, 2021,  with the ability to extend the term for 1 year.

On May 14, 2018, the Company executed the first amendment to the 2017 Revolver Amendment (the “2018 Revolver Amendment”). As a result of the 2018 Revolver Amendment, the Credit Facility has a total borrowing capacity of $150.0 million with the ability to increase that capacity up to $250.0 million during the term. The Credit Facility provides the lenders with a secured interest in the equity of the Company subsidiaries that own the properties included in the borrowing base. The indebtedness outstanding under the Credit Facility accrues interest at a rate ranging from the 30-day LIBOR plus 150 basis points to the 30-day LIBOR plus 220 basis points based on the total balance outstanding under the Credit Facility as a percentage of the total asset value of the Company, as defined in the 2017 Revolver Amendment, as amended by the 2018 Revolver Amendment. The Credit Facility also accrues a fee of 15 to 25 basis points for any unused portion of the borrowing capacity based on whether the unused portion is greater or less than 50% of the total borrowing capacity.

At June 30, 2018, the current commitment level under the Credit Facility was $150.0 million. The available borrowing capacity under the Credit Facility was approximately $99.1 million, based on the level of borrowing base assets. As of June 30, 2018, the Credit Facility had a $50.7 million balance outstanding.

The Credit Facility is subject to customary restrictive covenants including, but not limited to, limitations on the Company’s ability to: (a) incur indebtedness; (b) make certain investments; (c) incur certain liens; (d) engage in certain affiliate transactions; and (e) engage in certain major transactions such as mergers. In addition, the Company is subject to various financial maintenance covenants including, but not limited to, a maximum indebtedness ratio, a maximum secured indebtedness ratio, and a minimum fixed charge coverage ratio. The Credit Facility also contains affirmative covenants and events of default including, but not limited to, a cross default to the Company’s other indebtedness and upon the occurrence of a change of control. The Company’s failure to comply with these covenants or the occurrence of an event of default could result in acceleration of the Company’s debt and other financial obligations under the Credit Facility.

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Mortgage Notes Payable. In addition to the Credit Facility, the Company has certain other borrowings, as noted in the table above, all of which are non-recourse.

Convertible Debt. The Company’s $75.0 million aggregate principal amount of 4.50% Convertible Notes will mature on March 15, 2020, unless earlier purchased or converted. The initial conversion rate was 14.5136 shares of common stock for each $1,000 principal amount of Convertible Notes, which represented an initial conversion price of approximately $68.90 per share of common stock. Since July of 2016, when the Company’s Board of Directors implemented a quarterly dividend in place of the previous semi-annual dividend, the conversion rate has been adjusted with each successive quarterly dividend and is currently, after the second quarter 2018 dividend, equal to 14.5701 shares of common stock for each $1,000 principal amount of Convertible Notes, which represents an adjusted conversion price of approximately $68.63 per share of common stock.

The conversion rate is subject to adjustment in certain circumstances. Holders may not surrender their Convertible Notes for conversion prior to December 15, 2019 except upon the occurrence of certain conditions relating to the closing sale price of the Company’s common stock, the trading price per $1,000 principal amount of Convertible Notes, or specified corporate events including a change in control of the Company. The Company may not redeem the Convertible Notes prior to the stated maturity date and no sinking fund is provided for the Convertible Notes. The Convertible Notes are convertible, at the election of the Company, into solely cash, solely shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock. The Company intends to settle the Convertible Notes in cash upon conversion, with any excess conversion value to be settled in shares of our common stock. In accordance with GAAP, the Convertible Notes are accounted for as a liability with a separate equity component recorded for the conversion option. A liability was recorded for the Convertible Notes on the issuance date at fair value based on a discounted cash flow analysis using current market rates for debt instruments with similar terms. The difference between the initial proceeds from the Convertible Notes and the estimated fair value of the debt instruments resulted in a debt discount, with an offset recorded to additional paid-in capital representing the equity component. The discount on the Convertible Notes was approximately $6.1 million at issuance, which represents the cash discount paid of approximately $2.6 million and the approximate $3.5 million attributable to the value of the conversion option recorded in equity, which is being amortized into interest expense through the maturity date of the Convertible Notes. As of June 30, 2018, the unamortized debt discount of our Convertible Notes was approximately $2.3 million.

Long-term debt as of June 30, 2018 and December 31, 2017 consisted of the following: 

	June 30, 2018				December 31, 2017
			Due Within				Due Within
	Total		One Year		Total		One Year
Credit Facility	$	50,745,579	$	—	$	70,000,000	$	—
Mortgage Note Payable (originated with Wells Fargo)		30,000,000		—		30,000,000		—
Mortgage Note Payable (originated with Wells Fargo)		24,886,938		—		25,000,000		—
4.50% Convertible Senior Notes due 2020, net of discount		72,701,857		—		72,075,295		—
Loan Costs, net of accumulated amortization		(1,200,766)		—		(1,258,931)		—
Total Long-Term Debt	$	177,133,608	$	—	$	195,816,364	$	—

Payments applicable to reduction of principal amounts as of June 30, 2018 will be required as follows:

Year Ending December 31,	Amount
2019	$	—
2020		75,000,000
2021		75,632,517
2022		—
2023		—
Thereafter		30,000,000
Total Long-Term Debt - Face Value	$	180,632,517

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The carrying value of long-term debt as of June 30, 2018 consisted of the following:

	Total
Current Face Amount	$	180,632,517
Unamortized Discount on Convertible Debt		(2,298,143)
Loan Costs, net of accumulated amortization		(1,200,766)
Total Long-Term Debt	$	177,133,608

The following table reflects a summary of interest expense incurred and paid during the three and six months ended June 30, 2018 and 2017:

	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
	($000's)		($000's)		($000's)		($000's)
Interest Expense	$	2,085	$	1,736	$	4,185	$	3,393
Amortization of Loan Costs		137		112		287		225
Amortization of Discount on Convertible Notes		316		296		627		588
Total Interest Expense	$	2,538	$	2,144	$	5,099	$	4,206
Total Interest Paid	$	1,291	$	887	$	4,190	$	3,438

The Company was in compliance with all of its debt covenants as of June 30, 2018 and December 31, 2017.

NOTE 14. INTEREST RATE SWAP

The Company entered into an interest rate swap agreement to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR for the $24.9 million mortgage note payable as discussed in Note 13, “Long-Term Debt.” During the six months ended June 30, 2018, the interest rate swap agreement was 100% effective. Accordingly, the change in fair value on the interest rate swap has been classified in accumulated other comprehensive income. As of June 30, 2018, the fair value of our interest rate swap agreement, which was a gain of approximately $913,000, was included in other assets on the consolidated balance sheets. The interest rate swap was effective on April 7, 2016 and matures on April 7, 2021. The interest rate swap fixed the variable rate debt on the notional amount of related debt of $24.9 million to a rate of 3.17%.

NOTE 15. ACCRUED AND OTHER LIABILITIES

Accrued and other liabilities consisted of the following: 

	As of
	June 30, 2018		December 31, 2017
Golf $1 Round Surcharge	$	630,000	$	700,000
Accrued Property Taxes		1,372,678		66,909
Tenant Leasing Reserve Escrow		917,748		—
Reserve for Tenant Improvements		136,157		3,302,831
Accrued Construction Costs		190,998		1,360,950
Accrued Interest		1,189,668		1,194,681
Environmental Reserve and Restoration Cost Accrual		572,197		866,936
Other		2,829,020		2,668,219
Total Accrued and Other Liabilities	$	7,838,466	$	10,160,526

Golf $1 Round Surcharge. On January 24, 2017, the Company acquired the land and improvements comprising the golf courses, previously leased from the City, for approximately $1.5 million (the “Golf Course Land Purchase”). In connection with the Golf Course Land Purchase,  each year the Company is obligated to pay the City additional consideration in the amount of an annual surcharge of $1 per golf round played (the “Per-Round Surcharge”) with an annual minimum Per-Round Surcharge of $70,000 and a maximum aggregate amount of the Per-Round Surcharges paid equal to $700,000. The maximum amount of $700,000 represents contingent consideration and was recorded as an

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increase in Golf Buildings, Improvements, and Equipment and Accrued and Other Liabilities in the accompany consolidated balance sheets. The first annual payment was made in January 2018 leaving a remaining commitment of approximately $630,000 as of June 30, 2018.

Tenant Leasing Reserve Escrow. In connection with the acquisition of the property in Aspen, Colorado on February 21, 2018, the master tenant funded approximately $2.25 million at closing which is being held by the Company in a leasing reserve. During the six months ended June 30, 2018 eligible costs totaling approximately $1.3 million were funded from the escrow account which included approximately $935,000 of the Company’s costs incurred related to the property acquisition and approximately $398,000 in base rent payments, leaving a remaining escrow balance of approximately $918,000. The balance can be used for eligible costs which, pursuant to the lease, include rent payments up to a maximum of $1.0 million and taxes, insurance, leasing commissions, tenant improvements, or other third-party operating expenses incurred in connection with the operation of the property.

Reserve for Tenant Improvements. The reduction of the balance during the six months ended June 30, 2018 represents the payment of approximately $2.7 million for a tenant improvement allowance provided to Hilton Grand Vacations in conjunction with the extension of their leases of two buildings from November 30, 2021 to November 30, 2026 which was accrued for as of December 31, 2017. In connection with the acquisition on April 28, 2017 of the property in Tampa, Florida leased to LA Fitness, the Company was credited approximately $400,000 at closing for certain tenant improvements. During the quarter ended June 30, 2018, the tenant completed the improvements and the Company funded $400,000 to LA Fitness.

Environmental Reserve. During the year ended December 31, 2014, the Company accrued an environmental reserve of approximately $110,000 in connection with an estimate of additional costs required to monitor a parcel of less than one acre of land owned by the Company in Highlands County, Florida on which environmental remediation work had previously been performed. The Company engaged legal counsel who, in turn, engaged environmental engineers to review the site and the prior monitoring test results. During the year ended December 31, 2015, their review was completed, and the Company made an additional accrual of approximately $500,000, representing the low end of the range of possible costs estimated by the engineers to be between approximately $500,000 and $1.0 million to resolve this matter subject to the approval of the state department of environmental protection (the “FDEP”). The FDEP issued a Remedial Action Plan Modification Approval Order (the “FDEP Approval”) in August 2016 which supports the approximate $500,000 accrual made in 2015. The Company is implementing the remediation plan pursuant to the FDEP Approval. During the fourth quarter of 2017, the Company made an additional accrual of approximately $51,000 for the second year of monitoring as the low end of the original range of estimated costs was increased for the amount of monitoring now anticipated. Since the total accrual of approximately $661,000 was made, approximately $552,000 in costs have been incurred through June 30, 2018, leaving a remaining accrual of approximately $109,000.

Restoration Accrual. As part of the resolution of a regulatory matter pertaining to the Company’s prior agricultural activities on certain of the Company’s land located in Daytona Beach, Florida, as of December 31, 2015, the Company accrued an obligation of approximately $1.7 million, representing the low end of the estimated range of possible wetlands restoration costs for approximately 148.4 acres within such land, and such estimated costs were included on the consolidated balance sheets as an increase in the basis of our land and development costs associated with those and benefitting surrounding acres. The final proposal for restoration work was received during the second quarter of 2016 which totaled approximately $2.0 million. Accordingly, an increase in the accrual of approximately $300,000 was recorded during the second quarter of 2016. The Company funded approximately $1.6 million of the total $2.0 million of estimated costs through the period ended June 30, 2018, leaving a remaining accrual of approximately $464,000. This matter is more fully described in Note 19 “Commitments and Contingencies.”

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NOTE 16. DEFERRED REVENUE

Deferred revenue consisted of the following:

	As of
	June 30, 2018		December 31, 2017
Deferred Oil Exploration Lease Revenue	$	185,648	$	585,675
Deferred Revenue on Land Sales		846,545		—
Prepaid Rent		1,079,747		1,126,408
Tenant Contributions		4,227,953		—
Other Deferred Revenue		528,772		318,376
Total Deferred Revenue	$	6,868,665	$	2,030,459

Deferred Oil Exploration Lease Revenue. On October 11, 2017, the Company received an approximate $807,000 rent payment for the seventh year of the Company’s thirteen-year oil exploration lease, which is being recognized ratably over the twelve-month lease period ending in September 2018. The oil exploration lease is more fully described in Note 5 “Land and Subsurface Interests.”

Deferred Revenue on Land Sales. In conjunction with the land sale to Buc-ee’s in March 2018, the Company funded an escrow account for approximately $831,000 related to the portion of the acreage sold for which the Company remains obligated to perform wetlands mitigation. As a result of the Company’s continuing obligation, approximately $831,000 of the sales price collected at closing was deferred and the revenue will be recognized upon the Company’s performance of the obligation. The Company estimates the obligation related to the wetlands mitigation will total approximately $25,000.

Tenant Contributions. In connection with the acquisition of the property in Aspen, Colorado, the master tenant contributed $1.5 million of the $28.0 million purchase price at closing on February 21, 2018. Additionally, the master tenant funded, from its leasing reserve escrow, approximately $935,000 of the Company’s acquisition-related costs. Approximately $41,000 was recognized into income property rental revenue through June 30, 2018, leaving an aggregate balance of approximately $2.4 million, related to the Company’s total acquisition cost of approximately $29.0 million, to be recognized over the remaining term of the lease.

In connection with the construction of the beachfront restaurant leased to Cocina 214 Restaurant & Bar in Daytona Beach, Florida, the tenant contributed approximately $1.9 million of the building and tenant improvements owned by the Company through direct payments to various third-party construction vendors. Approximately $54,000 was recognized into income property rental revenue through June 30, 2018, leaving a balance of approximately $1.8 million to be recognized over the remaining term of the lease.

NOTE 17. STOCK-BASED COMPENSATION

SUMMARY OF STOCK-BASED COMPENSATION

A summary of share activity for all equity classified stock compensation during the six months ended June 30, 2018, is presented below:

	Shares		Vested /			Shares
	Outstanding	Granted	Exercised	Expired	Forfeited	Outstanding
Type of Award	at 1/1/2018	Shares	Shares	Shares	Shares	at 6/30/2018
Equity Classified - Performance Share Awards - Peer Group Market Condition Vesting	12,635	15,445	—	—	—	28,080
Equity Classified - Market Condition Restricted Shares - Stock Price Vesting	29,750	—	(7,750)	—	—	22,000
Equity Classified - Three Year Vest Restricted Shares	37,390	17,712	(18,883)	—	—	36,219
Equity Classified - Non-Qualified Stock Option Awards	90,000	—	—	—	—	90,000
Total Shares	169,775	33,157	(26,633)	—	—	176,299

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Amounts recognized in the consolidated financial statements related to stock compensation are as follows:

	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Total Cost of Share-Based Plans Charged Against Income Before Tax Effect	$	430,054	$	389,585	$	897,325	$	743,164
Income Tax Expense Recognized in Income	$	(108,997)	$	(150,283)	$	(227,427)	$	(286,676)

EQUITY-CLASSIFIED STOCK COMPENSATION

Performance Share Awards – Peer Group Market Condition Vesting

On February 3, 2017, the Company awarded to certain employees 12,635 Performance Shares under the Amended and Restated 2010 Equity Incentive Plan (the “2010 Plan”). The Performance Shares awards entitle the recipient to receive, upon the vesting thereof, shares of common stock of the Company equal to between 0% and 150% of the number of Performance Shares awarded. The number of shares of common stock so vesting will be determined based on the Company’s total shareholder return as compared to the total shareholder return of a certain peer group during a three-year performance period commencing on January 1, 2017 and ending on December 31, 2019.

On January 24, 2018, the Company awarded to certain employees 15,445 Performance Shares under the 2010 Plan. The Performance Shares awards entitle the recipient to receive, upon the vesting thereof, shares of common stock of the Company equal to between 0% and 150% of the number of Performance Shares awarded. The number of shares of common stock so vesting will be determined based on the Company’s total shareholder return as compared to the total shareholder return of a certain peer group during a three-year performance period commencing on January 1, 2018 and ending on December 31, 2020.

Pursuant to amendments to the employment agreements and certain restricted share award agreements entered into by the Company on August 4, 2017, the restricted shares granted thereunder, if they are subject to performance-based vesting conditions, will fully vest following a change in control only if the executive’s employment is terminated without cause or if the executive resigns for good reason (as such terms are defined in the executive’s employment agreement), in each case, at any time during the 24-month period following the change in control (as defined in the executive’s employment agreement).

The Company used a Monte Carlo simulation pricing model to determine the fair value of its awards that are based on market conditions. The determination of the fair value of market condition-based awards is affected by the Company’s stock price as well as assumptions regarding a number of other variables. These variables include expected stock price volatility over the requisite performance term of the awards, the relative performance of the Company’s stock price and shareholder returns to companies in its peer group, annual dividends, and a risk-free interest rate assumption. Compensation cost is recognized regardless of the achievement of the market conditions, provided the requisite service period is met.

A summary of activity during the six months ended June 30, 2018, is presented below: 

		Wtd. Avg.
Performance Shares with Market Conditions	Shares	Fair Value
Outstanding at January 1, 2018	12,635	$	55.66
Granted	15,445		74.99
Vested	—		—
Expired	—		—
Forfeited	—		—
Outstanding at June 30, 2018	28,080	$	66.29

As of June 30, 2018, there was approximately $1.3 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to Performance Share awards, which will be recognized over a remaining weighted average period of 2.2 years.

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Market Condition Restricted Shares – Stock Price Vesting

“Inducement” grants of 96,000 and 17,000 shares of restricted Company common stock were awarded to John P. Albright and Mark E. Patten in 2011 and 2012, respectively. Mr. Albright’s restricted shares were granted outside of the 2010 Plan while Mr. Patten’s restricted shares were awarded under the 2010 Plan. The Company filed a registration statement with the Securities and Exchange Commission on Form S-8 to register the resale of Mr. Albright’s restricted stock under this award. The restricted shares were to vest in six increments based upon the price per share of the Company’s common stock during the term of their employment (or within sixty days after termination of employment by the Company without cause) meeting or exceeding the target trailing sixty-day average closing prices ranging from $36 per share for the first increment to $65 per share for the final increment. If any increment of the restricted shares were to fail to satisfy the applicable stock price condition prior to six years from the grant date, that increment of the restricted shares would have been forfeited. The first four increments of Mr. Albright’s awards vested, while the remaining 32,000 unvested “inducement” grant restricted shares, for the $60 and $65 price increments, awarded to Mr. Albright in 2011, expired without vesting on August 1, 2017. As of June 30, 2018, all six increments of Mr. Patten’s grants had vested.

Additional grants of 2,500 and 3,000 shares of restricted Company common stock were awarded to Daniel E. Smith and Steven R. Greathouse under the 2010 Plan, during the fourth quarter of 2014 and the first quarter of 2015, respectively. The restricted shares were to vest in two increments based upon the price per share of Company common stock during the term of their employment (or within sixty days after termination of employment by the Company without cause), meeting or exceeding the target trailing sixty-day average closing prices of $60 per share and $65 per share for the two increments. If any increment of the restricted shares were to fail to satisfy the applicable stock price condition prior to six years from the grant date, that increment of the restricted shares would have been forfeited. As of June 30, 2018, both increments of Mr. Smith’s and Mr. Greathouse’s awards had vested.

A grant of 94,000 shares of restricted Company common stock was awarded to Mr. Albright under the 2010 Plan during the second quarter of 2015 under a new five-year employment agreement. On February 26, 2016, 72,000 of these shares were surrendered due to an over-grant by the Company, of which (i) 4,000 were re-granted on February 26, 2016 with terms identical to those of the surrendered restricted stock, and (ii) 68,000 were permanently surrendered. The 26,000 shares of restricted Company common stock outstanding from these grants were to vest in four increments based upon the price per share of Company common stock during the term of his employment (or within sixty days after termination of employment by the Company without cause), meeting or exceeding the target trailing thirty-day average closing prices ranging from $60 and $65 per share for the first two increments of 2,000 shares each, $70 per share for the third increment of 18,000 shares, and $75 per share for the fourth increment of 4,000 shares. If any increment of the restricted shares fails to satisfy the applicable stock price condition prior to January 28, 2021, that increment of the restricted shares will be forfeited. As of June 30, 2018, the first two increments of this award had vested.

Pursuant to amendments to the employment agreements and certain restricted share award agreements entered into by the Company on February 26, 2016 and August 4, 2017, the restricted shares granted thereunder, if they are subject to performance-based vesting conditions, will fully vest following a change in control only if the executive’s employment is terminated without cause or if the executive resigns for good reason (as such terms are defined in the executive’s employment agreement), in each case, at any time during the 24-month period following the change in control (as defined in the executive’s employment agreement).

The Company used a Monte Carlo simulation pricing model to determine the fair value of its awards that are based on market conditions. The determination of the fair value of market condition-based awards is affected by the Company’s stock price as well as assumptions regarding a number of other variables. These variables include expected stock price volatility over the requisite performance term of the awards, the relative performance of the Company’s stock price and shareholder returns to companies in its peer group, annual dividends, and a risk-free interest rate assumption. Compensation cost is recognized regardless of the achievement of the market conditions, provided the requisite service period is met.

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A summary of the activity for these awards during the six months ended June 30, 2018, is presented below:

		Wtd. Avg.
Market Condition Non-Vested Restricted Shares	Shares	Fair Value
Outstanding at January 1, 2018	29,750	$	39.07
Granted	—		—
Vested	(7,750)		31.58
Expired	—		—
Forfeited	—		—
Outstanding at June 30, 2018	22,000	$	41.71

As of June 30, 2018, there is no unrecognized compensation cost related to market condition restricted stock.

Three Year Vest Restricted Shares

On January 22, 2014, the Company granted to certain employees 14,500 shares of restricted Company common stock under the 2010 Plan. One-third of the restricted shares vested on each of the first, second, and third anniversaries of the grant date, provided the grantee was an employee of the Company on those dates.

On January 28, 2015, the Company granted to certain employees, which did not include Mr. Albright, 11,700 shares of restricted Company common stock under the 2010 Plan. Additionally, on February 9, 2015, the Company granted 8,000 shares of restricted Company common stock to Mr. Albright under the 2010 Plan. One-third of both awards of restricted shares vested on each of the first, second, and third anniversaries of the January 28, 2015 grant date, provided the grantee was an employee of the Company on those dates.

On January 27, 2016, the Company granted to certain employees 21,100 shares of restricted Company common stock under the 2010 Plan. One-third of the restricted shares will vest on each of the first, second, and third anniversaries of January 28, 2016, provided the grantee is an employee of the Company on those dates. In addition, any unvested portion of the restricted shares will vest upon a change in control.

On January 25, 2017, the Company granted to certain employees 17,451 shares of restricted Company common stock under the 2010 Plan. One-third of the restricted shares will vest on each of the first, second, and third anniversaries of January 28, 2017 provided the grantee is an employee of the Company on those dates. In addition, any unvested portion of the restricted shares will vest upon a change in control.

On January 24, 2018, the Company granted to certain employees 17,712 shares of restricted Company common stock under the 2010 Plan. One-third of the restricted shares will vest on each of the first, second, and third anniversaries of January 28, 2018 provided the grantee is an employee of the Company on those dates. In addition, any unvested portion of the restricted shares will vest upon a change in control.

Effective as of August 4, 2017, the Company entered into amendments to the employment agreements and certain stock option award agreements and restricted share award agreements whereby such awards will fully vest following a change in control (as defined in the executive’s employment agreement) only if the executive’s employment is terminated without cause or if the executive resigns for good reason (as such terms are defined in the executive’s employment agreement), in each case, at any time during the 24-month period following the change in control.  

The Company’s determination of the fair value of the three-year vest restricted stock awards was calculated by multiplying the number of shares issued by the Company’s stock price at the grant date, less the present value of expected dividends during the vesting period. Compensation cost is recognized on a straight-line basis over the vesting period.

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A summary of activity during the six months ended June 30, 2018, is presented below:

		Wtd. Avg.
		Fair Value
Three Year Vest Non-Vested Restricted Shares	Shares	Per Share
Outstanding at January 1, 2018	37,390	$	51.39
Granted	17,712		65.33
Vested	(18,883)		51.57
Expired	—		—
Forfeited	—		—
Outstanding at June 30, 2018	36,219	$	58.12

As of June 30, 2018, there was approximately $1.7 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to the three-year vest non-vested restricted shares, which will be recognized over a remaining weighted average period of 2.10 years.

Non-Qualified Stock Option Awards

Pursuant to the Non-Qualified Stock Option Award Agreements between the Company and Messrs. Albright, Patten, and Smith, each of these Company employees was granted an option to purchase 50,000, 10,000, and 10,000 shares of Company common stock, in 2011, 2012, and 2014, respectively, under the 2010 Plan, with an exercise price per share equal to the fair market value on their respective grant dates. One-third of the options vested on each of the first, second, and third anniversaries of their respective grant dates, provided the recipient was an employee of the Company on those dates. In addition, any unvested portion of the options will vest upon a change in control. The options expire on the earliest of: (a) the tenth anniversary of the grant date; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability.

On January 23, 2013, the Company granted options to purchase 51,000 shares of the Company’s common stock under the 2010 Plan to certain employees of the Company, including 10,000 shares to Mr. Patten, with an exercise price per share equal to the fair market value at the date of grant. One-third of these options vested on each of the first, second, and third anniversaries of the grant date, provided the recipient was an employee of the Company on those dates. The options expire on the earliest of: (a) the fifth anniversary of the grant date; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability.

On February 9, 2015, the Company granted to Mr. Albright an option to purchase 20,000 shares of the Company’s common stock under the 2010 Plan with an exercise price of $57.50. The option vested on January 28, 2016. The option expires on the earliest of: (a) January 28, 2025; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability.

On May 20, 2015, the Company granted to Mr. Albright an option to purchase 40,000 shares of the Company’s common stock under the 2010 Plan, with an exercise price of $55.62. On February 26, 2016, this option was surrendered and an option to purchase 40,000 shares was granted on February 26, 2016 with identical terms. One-third of the option vested immediately and the remaining two-thirds vested on January 28, 2017 and January 28, 2018. The option expires on the earliest of: (a) January 28, 2025; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability.

On June 29, 2015, the Company granted to an officer of the Company an option to purchase 10,000 shares of the Company’s common stock under the 2010 Plan, with an exercise price of $57.54. One-third of the option will vest on each of the first, second, and third anniversaries of the grant date, provided the recipient is an employee of the Company on such dates. In addition, any unvested portion of the option will vest upon a change in control. The option expires on the earliest of: (a) June 29, 2025; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability.

Effective as of August 4, 2017, the Company entered into amendments to the employment agreements and certain stock option award agreements and restricted share award agreements whereby such awards will fully vest following a change in control (as defined in the executive’s employment agreement) only if the executive’s employment is terminated without cause or if the executive resigns for good reason (as such terms are defined in the executive’s employment agreement), in each case, at any time during the 24-month period following the change in control.  

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The Company used the Black-Scholes valuation pricing model to determine the fair value of its non-qualified stock option awards. The determination of the fair value of the awards is affected by the stock price as well as assumptions regarding a number of other variables. These variables include expected stock price volatility over the term of the awards, annual dividends, and a risk-free interest rate assumption.

A summary of the activity for the awards during the six months ended June 30, 2018, is presented below: 

				Wtd. Avg.
				Remaining
				Contractual		Aggregate
		Wtd. Avg.		Term		Intrinsic
Non-Qualified Stock Option Awards	Shares	Ex. Price		(Years)		Value
Outstanding at January 1, 2018	90,000	$	52.71
Granted	—		—
Exercised	—		—
Expired	—		—
Forfeited	—		—
Outstanding at June 30, 2018	90,000	$	52.71	6.48	$	792,300
Exercisable at January 1, 2018	73,000	$	51.94	6.88	$	843,968
Exercisable at June 30, 2018	90,000	$	52.71	6.48	$	792,300

A summary of the non-vested options for these awards during the six months ended June 30, 2018, is presented below:

		Fair Value
		of Shares
Non-Qualified Stock Option Awards	Shares	Vested
Non-Vested at January 1, 2018	17,000
Granted	—
Vested	(17,000)	$	952,068
Expired	—
Forfeited	—
Non-Vested at June 30, 2018	—

No options were granted during the six months ended June 30, 2018. No options were exercised during the six months ended June 30, 2018. As of June 30, 2018, there is no unrecognized compensation cost related to non-qualified, non-vested stock option awards.

LIABILITY-CLASSIFIED STOCK COMPENSATION

The Company previously had a stock option plan (the “2001 Plan”) pursuant to which 500,000 shares of the Company’s common stock were eligible for issuance. The 2001 Plan expired in 2010, and no new stock options may be issued under the 2001 Plan. Under the 2001 Plan, both stock options and stock appreciation rights were issued in prior years and such issuances were deemed to be liability-classified awards under the Share-Based Payment Topic of FASB ASC, which are required to be remeasured at fair value at each balance sheet date until the award is settled.

There was no remaining liability as of December 31, 2017 because there were no options outstanding and exercisable as of December 31, 2017.

NOTE 18. INCOME TAXES

The Company’s effective income tax rate was 24.9% and 38.5% for the six months ended June 30, 2018 and 2017, respectively, with the reduction being primarily attributable to the reduction in the Federal corporate tax rate from 35% to 21% resulting from the Tax Cuts and Jobs Act effective January 1, 2018. The provision for income taxes reflects the Company’s estimate of the effective rate expected to be applicable for the full fiscal year, adjusted for any discrete events, which are reported in the period that they occur. There were no discrete events during the six months ended June 30, 2018 or 2017.

The Company files a consolidated income tax return in the United States Federal jurisdiction and the states of Arizona, Colorado, California, Florida, Illinois, Georgia, Maryland, Massachusetts, North Carolina, Oregon, Texas, Virginia and

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Washington. The Internal Revenue Service has audited the federal tax returns through the year 2012, with all proposed adjustments settled. The Florida Department of Revenue has audited the Florida tax returns through the year 2014, with all proposed adjustments settled. The Company recognizes all potential accrued interest and penalties to unrecognized tax benefits in income tax expense.

NOTE 19. COMMITMENTS AND CONTINGENCIES

Legal Proceedings

From time to time, the Company may be a party to certain legal proceedings, incidental to the normal course of its business. While the outcome of the legal proceedings cannot be predicted with certainty, the Company does not expect that these proceedings will have a material effect upon our financial condition or results of operations.

On November 21, 2011, the Company, Indigo Mallard Creek LLC and Indigo Development LLC, as owners of the property leased to Harris Teeter, Inc. (“Harris Teeter”) in Charlotte, North Carolina, were served with pleadings filed in the General Court of Justice, Superior Court Division for Mecklenburg County, North Carolina, for a highway condemnation action involving this property. The proposed road modifications would impact access to the property. The Company does not believe the road modifications provided a basis for Harris Teeter to terminate the Lease. Regardless, in January 2013, the North Carolina Department of Transportation (“NCDOT”) proposed to redesign the road modifications to keep the all access intersection open for ingress with no change to the planned limitation on egress to the right-in/right-out only. Additionally, NCDOT and the City of Charlotte proposed to build and maintain a new access road/point into the property. Construction has begun and is not expected to be completed before mid-2018 to 2019. Harris Teeter has expressed satisfaction with the redesigned project and indicated that it will not attempt to terminate its lease if this project is built as currently redesigned. Because the redesigned project will not be completed until mid-2018 to 2019, the condemnation case has been placed in administrative closure. As a result, the trial and mediation will not likely be scheduled until requested by the parties, most likely in 2019.

On April 5, 2018, a complaint was filed in the United States District Court for the Eastern District of New York (the “Complaint”) which alleged that certain aspects of Proposal 4 (the “Equity Plan Proposal”) contained in the Company’s Notice of Annual Meeting of Shareholders and 2018 Proxy Statement filed with the SEC on March 12, 2018 (the “2018 Proxy Statement”) did not comply with the disclosure requirements for proxy statements pursuant to SEC regulations. The Complaint alleged that the Equity Plan Proposal did not state the number of participants, employees, and nonemployee directors of the Company and its subsidiaries who may be eligible to participate in the Company’s equity incentive plan (the “CTO Equity Plan”). The Complaint sought injunctive relief and an award of attorney’s fees and expenses. While the Company believes the 2018 Proxy Statement was compliant with applicable SEC disclosure rules and that the Complaint is without merit, the Company voluntarily made a supplemental disclosure in its additional proxy materials reiterating that the Company currently has 14 employees and 7 nonemployee directors, and that the Company’s subsidiaries have no employees, and therefore the total number of persons currently eligible to receive equity awards under the CTO Equity Plan is 21. On July 2, 2018, the Company paid an immaterial settlement amount associated with the legal fees of the plaintiff and the Complaint was dismissed.

Contractual Commitments – Expenditures

In conjunction with the Company’s sale of approximately 3.4 acres of land to RaceTrac in December 2013, the Company agreed to reimburse RaceTrac for a portion of the costs for road improvements and the other costs associated with bringing multiple ingress/egress points to the entire 23-acre Williamson Crossing site, including the Company’s remaining 19.6 acres. The total cost for the improvements was approximately $1.26 million and the Company has committed to reimburse RaceTrac in an amount equal to $976,500.  In 2013 the Company deposited $283,500 of cash in escrow related to the improvements, which was previously classified as restricted cash in the consolidated balance sheets. In the second quarter of 2018, the Company received confirmation that the required improvements were completed by RaceTrac. Accordingly, $283,500 was paid to RaceTrac leaving no remaining escrow balance as of June 30, 2018. As of June 30, 2018, the remaining commitment is approximately $693,000 which can be paid over five years from the proceeds from sales of the remaining land or at the end of the fifth year.

In conjunction with the Company’s sale of approximately 18.1 acres of land to an affiliate of Sam’s Club (“Sam’s”) in December 2015, the Company agreed to reimburse Sam’s for a portion of their construction costs applicable to adjacent outparcels retained by the Company. As a result, in December 2015, the Company deposited $125,000 of cash in escrow related to construction work which is classified as restricted cash in the consolidated balance sheets. The total amount in escrow as of June 30, 2018 was approximately $125,000, including accrued interest. Accordingly, the Company’s

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maximum commitment related to the construction work benefitting the outparcels adjacent to Sam’s land parcel is approximately $125,000, to be paid from escrow upon completion.

During April of 2018, the Company executed a contract with a third party to complete tenant improvements at The Grove at Winter Park property in Winter Park, Florida for a total of approximately $638,000. The Company has incurred approximately $596,000 of these costs as of June 30, 2018, leaving a remaining commitment of approximately $42,000.

In connection with the Golf Course Land Purchase, each year the Company is obligated to pay the Per-Round Surcharge with an annual minimum Per-Round Surcharge of $70,000 and a maximum aggregate amount of the Per-Round Surcharges paid equal to $700,000. The maximum amount of $700,000 represents contingent consideration and was recorded as an increase in Golf Buildings, Improvements, and Equipment and Accrued and Other Liabilities in the accompany consolidated balance sheets during the year ended December 31, 2017. The first annual payment of $70,000 was made in January of 2018, leaving a remaining commitment of $630,000 as of June 30, 2018.

Contractual Commitments – Land Pipeline

As of August 1, 2018, the Company’s pipeline of potential land sales transactions included the following seventeen potential transactions with fourteen different buyers, representing nearly 4,300 acres or approximately 78% of our land holdings:

		No. of Acres	Amount		Price		Estimated
	Transaction (Buyer)	(Rounded)	($000's)		per Acre		Timing
1	Commercial/Retail - O'Connor - West of I-95	850	$	34,000	$	40,000	'19 - '20
2	Commercial/Retail - O'Connor - East of I-95 (1)	123		29,250		238,000	'19
3	Residential (AR) - Minto Communities - West of I-95	1,614		26,500		16,000	Q4 '18
4	Residential (SF) - ICI Homes - West of I-95	1,016		21,000		21,000	'19
5	Residential (MF) - East of I-95	80		16,000		200,000	'19
6	Mixed-Use Retail - North American - East of I-95 (2)	35		14,362		409,000	Q4 '18
7	Commercial/Medical Office - East of I-95	32		8,089		253,000	'19 - '20
8	Residential (MF) - East of I-95 (3)	45		5,200		116,000	Q3 '18 & '20
9	Distribution/Warehouse - VanTrust - East of I-95	71		5,000		70,000	'19
10	Commercial/Retail - East of I-95	20		4,250		213,000	Q4 '18
11	Commercial/Retail - East of I-95	9		3,300		367,000	Q4 '18 - '19
12	Commercial/Distribution - VanTrust - East of I-95	26		3,215		124,000	'18 - '19
13	Residential (SF) - West of I-95 (4)	200		3,175		16,000	Q4 '18 & '20
14	Auto Dealership - West of I-95	13		2,000		154,000	Q4 '18
15	Commercial/Retail - East of I-95	2		1,500		682,000	'19 - '20
16	Residential (SF) - ICI Homes - West of I-95	146		1,400		10,000	'19
17	Commercial/Medical Office - East of I-95	4		935		234,000	Q4 '18
	Total (Average)	4,286	$	179,176	$	42,000

(1)Land sales transaction which requires the Company to incur the cost to provide the requisite mitigation credits necessary for obtaining the applicable regulatory permits for the buyer, with such costs representing either our basis in the credits that we own, or potentially up to 5% - 10% of the contract amount noted.

(2)Pursuant to the contract, amount includes the reimbursement of infrastructure costs incurred by the Company for Tomoka Town Center plus interest accrued as of December 31, 2017.

(3)The acres and amount include the buyer’s option to acquire approximately 19 acres for $2.0 million, in addition to the base contract of approximately 26 acres for $3.2 million.

(4)The acres and amount include the buyer’s option to acquire approximately 71 acres for $925,000, in addition to the base contract of approximately 129 acres for $2.25 million.

As noted above, these agreements contemplate closing dates ranging from the second half of 2018 through fiscal year 2020, and although some of the transactions may close in 2018, the buyers are not contractually obligated to close until after 2018. Each of the transactions are in varying stages of due diligence by the various buyers including, in some instances, having made submissions to the planning and development departments of the City, and other permitting activities with other applicable governmental authorities including wetlands permits from the St. John’s River Water Management District and the U.S. Army Corps of Engineers and traffic analysis with the Florida Department of Transportation and Volusia County. In addition to other customary closing conditions, the majority of these transactions are conditioned upon the receipt of approvals or permits from those various governmental authorities, as well as other matters that are beyond our control. If such approvals are not obtained, the prospective buyers may have the ability to

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terminate their respective agreements prior to closing. As a result, there can be no assurances regarding the likelihood or timing of any one of these potential land transactions being completed or the final terms thereof, including the sales price.

Other Matters

In connection with a certain land sale contract to which the Company is a party, the purchaser’s pursuit of customary development entitlements gave rise to an inquiry by federal regulatory agencies regarding prior agricultural activities by the Company on such land. During the second quarter of 2015, we received a written information request regarding such activities. We submitted a written response to the information request along with supporting documentation. During the fourth quarter of 2015, based on discussions with the agency, a penalty related to this matter was deemed probable, and accordingly the estimated penalty of $187,500 was accrued as of December 31, 2015, for which payment was made during the quarter ended September 30, 2016. Also during the fourth quarter of 2015, the agency advised the Company that the resolution to the inquiry would likely require the Company to incur costs associated with wetlands restoration relating to approximately 148.4 acres of the Company’s land. At December 31, 2015, the Company’s third-party environmental engineers estimated the cost for such restoration activities to range from approximately $1.7 million to approximately $1.9 million. Accordingly, as of December 31, 2015, the Company accrued an obligation of approximately $1.7 million, representing the low end of the estimated range of possible restoration costs, and included such estimated costs on the consolidated balance sheets as an increase in the basis of our land and development costs associated with those and benefitting surrounding acres. As of June 30, 2016, the final proposal from the Company’s third-party environmental engineer was received reflecting a total cost of approximately $2.0 million. Accordingly, an increase in the accrual of approximately $300,000 was made during the second quarter of 2016. The Company has funded approximately $1.6 million of the total $2.0 million of estimated costs through June 30, 2018. The Company believes there is at least a reasonable possibility that the estimated remaining liability of approximately $464,000 could change within one year of the date of the consolidated financial statements, which in turn could have a material impact on the Company’s consolidated balance sheets and future cash flows. The Company evaluates its estimates on an ongoing basis; however, actual results may differ from those estimates.

During the first quarter of 2017, the Company completed the sale of approximately 1,581 acres of land to Minto Communities LLC which acreage represents a portion of the Company’s remaining $708,000 obligation. Accordingly, the Company deposited $423,000 of cash in escrow to secure performance on the obligation. The funds in escrow can be drawn upon completion of certain milestones including completion of restoration and annual required monitoring. The first such milestone was achieved during the fourth quarter of 2017 and $189,500 of the escrow was refunded leaving an escrow balance of approximately $234,000 as of June 30, 2018. Additionally, resolution of the regulatory matter required the Company to apply for an additional permit pertaining to an additional approximately 54.66 acres, which permit may require mitigation activities which the Company anticipates could be satisfied through the utilization of existing mitigation credits owned by the Company or the acquisition of mitigation credits. Resolution of this matter allowed the Company to obtain certain permits from the applicable federal or state regulatory agencies needed in connection with the closing of the land sale contract that gave rise to this matter. As of June 30, 2017, the Company determined that approximately 36 mitigation credits were required to be utilized, which represents approximately $298,000 in cost basis of the Company’s mitigation credits. Accordingly, the Company transferred the mitigation credits through a charge to direct cost of revenues of real estate operations during the three months ended June 30, 2017, thereby resolving the required mitigation activities related to the approximately 54.66 acres. In addition, in connection with other land sale contracts to which the Company is or may become a party, the pursuit of customary development entitlements by the potential purchasers may require the Company to utilize or acquire mitigation credits for the purpose of obtaining certain permits from the applicable federal or state regulatory agencies. Any costs incurred in connection with utilizing or acquiring such credits would be incorporated into the basis of the land under contract. No amounts related to such potential future costs have been accrued as of June 30, 2018.

During the period from the fourth quarter of 2015 through the first quarter of 2016, the Company received communications from Wintergreen Advisers, LLC (“Wintergreen”), some of which have been filed publicly. In investigating Wintergreen’s allegations contained in certain of these communications, in pursuing the strategic alternatives process suggested by Wintergreen, and in engaging in a proxy contest in 2017, the Company has incurred costs of approximately $3.0 million through December 31, 2017. Approximately $1.6 million of the approximately $3.0 million was incurred during the year ended December 31, 2017, of which approximately $1.2 million is specifically for legal representation and third-party costs related to the proxy contest. In addition to the costs incurred through December 31, 2017, during the six months ended June 30, 2018, the Company incurred approximately $944,000, which includes legal representation and third-party costs arising from shareholder-related matters, including the proxy contest in 2018.

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None of Wintergreen’s allegations, which included allegations regarding inadequate disclosure and other wrong-doing by the Company and its directors and officers, were found to have any basis or merit.

NOTE 20. BUSINESS SEGMENT DATA

The Company operates in four primary business segments: income properties, commercial loan investments, real estate operations, and golf operations. Our income property operations consist primarily of income-producing properties, and our business plan is focused on investing in additional income-producing properties. Our income property operations accounted for 87.5% and 83.4% of our identifiable assets as of June 30, 2018 and December 31, 2017, respectively, and 49.1% and 23.8% of our consolidated revenues for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, we have one commercial loan investment, a fixed-rate first mortgage loan. Our real estate operations primarily consist of revenues generated from land transactions and leasing, royalty income, and revenue from the release of surface entry rights from our Subsurface Interests. Our golf operations consist of a single property located in Daytona Beach, Florida, with two 18-hole championship golf courses, a practice facility, and clubhouse facilities, including a restaurant and bar operation, fitness facility, and pro-shop with retail merchandise. The majority of the revenues generated by our golf operations are derived from members and public customers playing golf, club memberships, and food and beverage operations.

The Company reports performance based on profit or loss from operations before income taxes. The Company’s reportable segments are strategic business units that offer different products. They are managed separately because each segment requires different management techniques, knowledge, and skills.

Information about the Company’s operations in the different segments for the three and six months ended June 30, 2018 and 2017 is as follows: 

	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Revenues:
Income Properties	$	9,781,299	$	7,565,007	$	18,987,026	$	14,638,247
Commercial Loan Investments		273,467		553,159		574,466		1,089,648
Real Estate Operations		2,484,314		13,257,355		16,463,644		42,731,815
Golf Operations		1,282,918		1,383,513		2,637,274		2,858,457
Agriculture and Other Income		11,187		78,749		22,374		232,900
Total Revenues	$	13,833,185	$	22,837,783	$	38,684,784	$	61,551,067
Operating Income:
Income Properties	$	7,746,410	$	5,935,492	$	15,083,108	$	11,597,019
Commercial Loan Investments		273,467		553,159		574,466		1,089,648
Real Estate Operations		1,614,044		7,464,826		14,057,712		27,782,437
Golf Operations		(242,135)		(18,406)		(269,604)		(42,140)
Agriculture and Other Income		6,015		48,213		12,030		161,927
General and Corporate Expense		(6,284,119)		(5,942,877)		(13,008,046)		(11,925,599)
Other Gains and Income		18,384,808		—		22,035,666		2,226,526
Total Operating Income	$	21,498,490	$	8,040,407	$	38,485,332	$	30,889,818
Depreciation and Amortization:
Income Properties	$	3,746,762	$	3,108,494	$	7,534,177	$	5,794,806
Golf Operations		99,393		95,323		202,949		160,690
Agriculture and Other		8,783		11,873		18,191		22,769
Total Depreciation and Amortization	$	3,854,938	$	3,215,690	$	7,755,317	$	5,978,265
Capital Expenditures:
Income Properties	$	969,326	$	22,748,812	$	28,884,588	$	44,686,344
Real Estate Operations		1,393,811		—		3,505,794		—
Golf Operations		22,217		266,758		24,880		1,874,500
Agriculture and Other		10,785		38,945		11,338		51,028
Total Capital Expenditures	$	2,396,139	$	23,054,515	$	32,426,600	$	46,611,872

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	As of
	June 30, 2018		December 31, 2017
Identifiable Assets:
Income Properties	$	420,261,037	$	388,602,721
Commercial Loan Investments		2,994,916		11,963,777
Real Estate Operations		41,388,054		43,296,528
Golf Operations		5,709,161		6,262,634
Agriculture and Other		10,196,478		16,004,718
Total Assets	$	480,549,646	$	466,130,378

Operating income represents income from continuing operations before loss on early extinguishment of debt, interest expense, investment income, and income taxes. General and corporate expenses are an aggregate of general and administrative expenses, impairment charges, and depreciation and amortization expense. Other gains and income consist of land lease termination income and gains (losses) on the disposition of assets. Identifiable assets by segment are those assets that are used in the Company’s operations in each segment. Other assets consist primarily of cash, property, plant, and equipment related to the other operations, as well as the general and corporate operations.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

When the Company uses any of the words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” or similar expressions, the Company is making forward-looking statements. Although management believes that the expectations reflected in such forward-looking statements are based upon present expectations and reasonable assumptions, the Company’s actual results could differ materially from those set forth in the forward-looking statements. Certain factors that could cause actual results or events to differ materially from those the Company anticipates or projects are described in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K, for year ended December 31, 2017. Given these uncertainties, readers are cautioned not to place undue reliance on such statements, which speak only as of the date of this Quarterly Report on Form 10-Q or any document incorporated herein by reference. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q, or the aforementioned risk factors. The terms “us,” “we,” “our,” and “the Company” as used in this report refer to Consolidated-Tomoka Land Co. together with our consolidated subsidiaries.

OVERVIEW

We are a diversified real estate operating company. We own and manage thirty-six commercial real estate properties in thirteen states in the United States. As of June 30, 2018, we owned twenty-nine single-tenant and seven multi-tenant income-producing properties with approximately 2.1 million square feet of gross leasable space. We also own and manage a portfolio of undeveloped land totaling approximately 5,500 acres in Daytona Beach, Florida. As of June 30, 2018, we have one commercial loan investment, a fixed-rate first mortgage loan. We have golf operations which consist of the LPGA International Golf Club, also located in Daytona Beach, which is managed by a third party. We also lease some of our land for eighteen billboards, have agricultural operations that are managed by a third party, which consist of leasing land for hay production, timber harvesting, and hunting leases, and own and manage Subsurface Interests (hereinafter defined). The results of our agricultural and subsurface leasing operations are included in Agriculture and Other Income and Real Estate Operations, respectively, in our consolidated statements of operations.

Income Property Operations. We have pursued a strategy of investing in income-producing properties, when possible by utilizing the proceeds from real estate transactions qualifying for income tax deferral through like-kind exchange treatment for tax purposes.

Our strategy for investing in income-producing properties is focused on long-term real estate fundamentals and target major markets and markets experiencing significant economic growth. We employ a methodology for evaluating targeted investments in income-producing properties which includes an evaluation of: (i) the attributes of the real estate (e.g. location, market demographics, comparable properties in the market, etc.); (ii) an evaluation of the existing tenant (e.g. credit-worthiness, property level sales, rent levels compared to the market, etc.); (iii) other market conditions (e.g. tenant industry, job and population growth in the market, local economy, etc.); and (iv) considerations relating to the Company’s business and strategy (e.g. strategic fit of the asset type, property management needs, alignment with the Company’s 1031 like-kind exchange structure, etc.).

During the six months ended June 30, 2018, the Company acquired one single-tenant income property for a purchase price of $28.0 million, or an acquisition cost of approximately $29.0 million including capitalized acquisition costs.

Our current portfolio of twenty-nine single-tenant income properties generates approximately $21.5 million of revenues from base lease payments on an annualized basis and had an average remaining lease term of 9.4 years as of June 30, 2018. Our current portfolio of seven multi-tenant properties generates approximately $9.3 million of revenue from base lease payments on an annualized basis and has a weighted average remaining lease term of 4.8 years as of June 30, 2018. We expect to continue to focus on acquiring additional income-producing properties during fiscal year 2018, and in the near term thereafter, maintaining our use of the aforementioned tax deferral structure whenever possible.

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As part of our overall strategy for investing in income-producing investments, we self-developed five multi-tenant office properties, all of which are located in Daytona Beach, Florida, four of which we still owned as of December 31, 2017. The first self-developed property, located at the northeast corner of LPGA and Williamson Boulevards, is an approximately 22,000 square foot, two-story, building, known as the Concierge Office Building. The second two properties, known as the Mason Commerce Center, consist of two buildings totaling approximately 31,000 square-feet (15,360 each). The final two properties, known as the Williamson Business Park, are adjacent to the Mason Commerce Center. One of the two 15,360 square-foot Williamson Business Park buildings was sold in April 2016. The remaining four self-developed multi-tenant office properties were sold in March 2018 at a sales price of approximately $11.4 million (the “Self-Developed Properties Sale”). The gain on the sale totaled approximately $3.7 million, or approximately $0.49 per share, after tax. As part of the transaction, the Company entered into a lease of its approximately 7,600 square foot current office space in Williamson Business Park for approximately 5 years at a market rental rate.

We also self-developed two single-tenant net lease restaurant properties on a 6-acre beachfront parcel in Daytona Beach, Florida. The development was completed in January of 2018; therefore, during the first quarter of 2018, these two properties have been added to our income property portfolio.

Our focus on acquiring or selectively developing income-producing assets includes a continual review of our existing income property portfolio to identify opportunities to recycle our capital through the sale of income properties based on, among other possible factors, the current or expected performance of the property and favorable market conditions.

Real Estate Operations.  As of June 30, 2018, the Company owned approximately 5,500 acres of undeveloped land in Daytona Beach, Florida, along six miles of the west and east sides of Interstate 95. Currently, the majority of this land is used for agricultural purposes. As of August 1, 2018, approximately 78% of this acreage, or nearly 4,300 acres, is under contract to be sold. Approximately 1,000 acres of our land holdings are located on the east side of Interstate 95 and are generally well suited for commercial development. Approximately 4,500 acres of our land holdings are located on the west side of Interstate 95 and the majority of this land is generally well suited for residential development. Included in the western land is approximately 1,000 acres, primarily an 850-acre parcel and three smaller parcels, which are located further west of Interstate 95 and a few miles north of Interstate 4 that are generally well suited for industrial purposes.

Real estate operations revenue consisted of the following for the three and six months ended June 30, 2018 and 2017, respectively:

		Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Revenue Description	($000's)		($000's)		($000's)		($000's)
Land Sales Revenue	$	1,734	$	10,858	$	14,851	$	39,564
Revenue from Reimbursement of Infrastructure Costs		—		955		—		1,276
Impact Fee and Mitigation Credit Sales		470		1,222		586		1,439
Subsurface Revenue		280		222		1,026		453
Total Real Estate Operations Revenue	$	2,484	$	13,257	$	16,463	$	42,732

2018 Land Sales. During the six months ended June 30, 2018, the Company completed land transactions representing approximately 2,559 acres of land including: (i) the sale of a 70% interest in the Mitigation Bank (hereinafter defined) that holds approximately 2,492 acres of land for proceeds of $15.3 million and (ii) four land sales totaling approximately 67 acres for aggregate proceeds of approximately $15.7 million, as described below:

					Gross Sales				Gain
			Date of	No. of	Price		Price		on Sale (1)
	Buyer (or Description)	Location	Sale	Acres	($000's)		per Acre		($000's)
1	Buc-ee's	East of I-95	03/16/18	34.9	$	13,948	$	400,000	$	11,926
		Subtotal - Q1 2018		34.9		13,948		400,000		11,926
2	Residential	West of I-95	06/12/18	19.0		265		14,000		226
3	Commercial / Retail	East of I-95	06/25/18	5.7		625		110,000		224
4	Commercial / Retail	East of I-95	06/28/18	7.7		819		106,000		628
		Subtotal - Q2 2018		32.4		1,709		53,000		1,078
		YTD Q2 2018		67.3	$	15,657	$	233,000	$	13,004

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(1)The gain recognized during the six months ended June 30, 2018 on the Buc-ee’s sale totaling approximately $11.9 million excludes approximately $831,000 held in an escrow reserve related to the portion of the acreage sold for which the Company remains obligated to perform wetlands mitigation. The Company expects to recognize the remaining gain of approximately $831,000 upon completion of the mitigation work. See Note 16, “Deferred Revenue”.

Mitigation Bank. The mitigation bank transaction consists of the sale of a 70% interest in the entity that holds approximately 2,492 acres of land that has been permitted for the creation of a wetland mitigation bank (the “Venture” or the “Mitigation Bank”). The purchaser of the 70% interest in the Mitigation Bank is comprised of certain funds and accounts managed by an investment advisor subsidiary of BlackRock, Inc. (“BlackRock”). The Company retained an approximately 30% non-controlling interest. A third-party was retained by the Venture as the day-to-day manager of the Mitigation Bank property; responsible for the maintenance, generation, tracking, and other aspects of wetland mitigation credits.

The Mitigation Bank intends to engage in the creation and sale of both federal and state wetland mitigation credits. These credits will be created pursuant to the applicable permits that have been or will be issued to the Venture from the federal and state regulatory agencies that exercise jurisdiction over the awarding of such credits, but no assurances can be given as to the issuance, marketability or value of the credits. The Venture received the permit from the state regulatory agency on June 8, 2018 with the potential for 355 state credits to be awarded. Receipt of the remaining federal permit and the award of the initial state credits is anticipated to occur prior to the end of the year.

The gain on the sale of the 70% interest in the Mitigation Bank totaled approximately $18.4 million and is comprised of the gain on the sale of 70% interest for proceeds of $15.3 million as well as the gain on the retained 30% interest pursuant to FASB ASC Topic 610-20, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets. The gain is included in the Gain on Disposition of Assets in the Company’s consolidated statements of operations. As of June 30, 2018, the approximately $6.7 million Investment in Joint Venture included on the Company’s consolidated balance sheets is comprised of the fair market value of the 30% retained interest in the Venture.

The operating agreement of the Venture (the “Operating Agreement”) executed in conjunction with the mitigation bank transaction, stipulates that the Company shall arrange for sales to unrelated third parties of mitigation credits of the Mitigation Bank totaling no less than $6 million of revenue to the Mitigation Bank, net of commissions, by the end of 2020, utilizing a maximum of 60 mitigation credits to achieve the minimum sales requirement (the “Minimum Sales Requirement”). The Operating Agreement stipulates that if the Minimum Sales Requirement is not achieved, then BlackRock has the right, but is not required, to have the Company purchase the number of combined mitigation credits necessary to reach the Minimum Sales Requirement (the “Minimum Sales Guarantee”). The Company estimates the fair value of the Minimum Sales Guarantee to be approximately $100,000 which was recorded as a reduction in the gain on the transaction and is included in Accrued and Other Liabilities in the Company’s consolidated balance sheet as of June 30, 2018.

Additionally, the Operating Agreement provides BlackRock the right to cause the Company to purchase a maximum of 8.536 mitigation credits per quarter from the Mitigation Bank Venture at a price equal to 60% of the then fair market value for mitigation credits (the “Put Right”). The Put Right is applicable even if the Mitigation Bank has not yet had sufficient mitigation credits released to the Mitigation Bank by the applicable federal and state regulatory agencies. Further, in any quarter that BlackRock does not exercise its Put Right, the permitted amount of mitigation credits for the applicable quarter can be rolled forward to future calendar quarters. However, the Operating Agreement also stipulates that any amount of third-party sales of mitigation credits will reduce the Put Rights outstanding on a one-for-one basis, if the sales price of the third-party sales equals or exceeds the prices stipulated by the Put Right. Further, any sales of mitigation credits to third parties at the requisite minimum prices in a quarter that exceeds the quarterly amount of BlackRock’s Put Right, will reduce BlackRock’s Put Rights in future calendar quarters also on a one-for-one basis. The maximum potential of future payments for the Company pursuant to the Put Right is approximately $27 million. The Company estimates the fair value of the Put Right to be approximately $200,000, which was recorded as a reduction in the gain on the transaction and is included in Accrued and Other Liabilities in the Company’s consolidated balance sheet as of June 30, 2018.

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2017 Land Sales. During the six months ended June 30, 2017, a total of approximately 1,669 acres were sold for approximately $40.5 million as described below:

					Gross Sales				Gain
			Date of	No. of	Price		Price		on Sale (1)
	Buyer (or Description)	Location	Sale	Acres	($000's)		per Acre		($000's)
1	Minto Communities, LLC	West of I-95	02/10/17	1,581.0	$	27,151	$	17,000	$	20,041
2	Commercial	East of I-95	03/22/17	6.4		1,556		245,000		11
		Subtotal - Q1 2017		1,587.4		28,707		18,000		20,052
3	Commercial	East of I-95	04/05/17	27.5		3,218		117,000		2,955
4	Commercial	East of I-95	04/13/17	4.5		1,235		274,000		13
5	Commercial	West of I-95	04/25/17	30.0		2,938		98,000		627
6	Third NADG Land Sale	East of I-95	06/27/17	19.4		4,422		228,000		3,263
		Subtotal - Q2 2017		81.4		11,813		145,000		6,858
		YTD Q2 2017		1,668.8	$	40,520	$	24,000	$	26,910

Land Pipeline. As of August 1, 2018, the Company’s pipeline of potential land sales transactions included the following seventeen potential transactions with fourteen different buyers, representing nearly 4,300 acres or approximately 78% of our land holdings:

		No. of Acres	Amount		Price		Estimated
	Transaction (Buyer)	(Rounded)	($000's)		per Acre		Timing
1	Commercial/Retail - O'Connor - West of I-95	850	$	34,000	$	40,000	'19 - '20
2	Commercial/Retail - O'Connor - East of I-95 (1)	123		29,250		238,000	'19
3	Residential (AR) - Minto Communities - West of I-95	1,614		26,500		16,000	Q4 '18
4	Residential (SF) - ICI Homes - West of I-95	1,016		21,000		21,000	'19
5	Residential (MF) - East of I-95	80		16,000		200,000	'19
6	Mixed-Use Retail - North American - East of I-95 (2)	35		14,362		409,000	Q4 '18
7	Commercial/Medical Office - East of I-95	32		8,089		253,000	'19 - '20
8	Residential (MF) - East of I-95 (3)	45		5,200		116,000	Q3 '18 & '20
9	Distribution/Warehouse - VanTrust - East of I-95	71		5,000		70,000	'19
10	Commercial/Retail - East of I-95	20		4,250		213,000	Q4 '18
11	Commercial/Retail - East of I-95	9		3,300		367,000	Q4 '18 - '19
12	Commercial/Distribution - VanTrust - East of I-95	26		3,215		124,000	'18 - '19
13	Residential (SF) - West of I-95 (4)	200		3,175		16,000	Q4 '18 & '20
14	Auto Dealership - West of I-95	13		2,000		154,000	Q4 '18
15	Commercial/Retail - East of I-95	2		1,500		682,000	'19 - '20
16	Residential (SF) - ICI Homes - West of I-95	146		1,400		10,000	'19
17	Commercial/Medical Office - East of I-95	4		935		234,000	Q4 '18
	Total (Average)	4,286	$	179,176	$	42,000

(1)Land sales transaction which requires the Company to incur the cost to provide the requisite mitigation credits necessary for obtaining the applicable regulatory permits for the buyer, with such costs representing either our basis in the credits that we own, or potentially up to 5% - 10% of the contract amount noted.

(2)Pursuant to the contract, amount includes the reimbursement of infrastructure costs incurred by the Company for Tomoka Town Center plus interest accrued as of June 30, 2018.

(3)The acres and amount include the buyer’s option to acquire approximately 19 acres for $2.0 million, in addition to the base contract of approximately 26 acres for $3.2 million.

(4)The acres and amount include the buyer’s option to acquire approximately 71 acres for $925,000, in addition to the base contract of approximately 129 acres for $2.25 million.

As noted above, these agreements contemplate closing dates ranging from the second half of 2018 through fiscal year 2020, and although some of the transactions may close in 2018, the buyers are not contractually obligated to close until after 2018. Each of the transactions are in varying stages of due diligence by the various buyers including, in some instances, having made submissions to the planning and development departments of the City of Daytona Beach (the “City”), and other permitting activities with other applicable governmental authorities including wetlands permits from the St. John’s River Water Management District and the U.S. Army Corps of Engineers and traffic analysis with the Florida Department of Transportation and Volusia County. In addition to other customary closing conditions, the

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majority of these transactions are conditioned upon the receipt of approvals or permits from those various governmental authorities, as well as other matters that are beyond our control. If such approvals are not obtained, the prospective buyers may have the ability to terminate their respective agreements prior to closing. As a result, there can be no assurances regarding the likelihood or timing of any one of these potential land transactions being completed or the final terms thereof, including the sales price.

Land Impairments. There were no impairment charges related to the Company’s undeveloped land during the six months ended June 30, 2018 or 2017.

Beachfront Development. During the first quarter of 2018, the Company completed the construction of two single-tenant restaurants located on the Company’s six-acre beachfront property with a cost basis of approximately $11.7 million, which was included in Land and Development Costs on the Company’s consolidated balance sheet as of December 31, 2017. The total cost of construction was approximately $6.8 million. Upon completion of the construction and commencement of the tenant leases (described herein), the total basis of approximately $18.5 million was transferred to Income Properties, Land, Buildings, and Improvements from Land and Development Costs and Construction in Process on the Company’s consolidated balance sheets. The Company’s 15-year lease agreement with the operator of LandShark Bar & Grill, for the approximately 6,264 square foot restaurant property, includes annual rent based on a percentage of the tenant’s net operating income (“NOI”) until the Company has received its investment basis in the property; thereafter, the Company will receive a lower percentage of the tenant’s NOI during the remaining lease term. The Company’s 15-year lease agreement with the operator of Cocina 214 Restaurant & Bar, for the second restaurant property includes annual rent equal to the greater of $360,000 per year or a certain percentage of gross sales, and also provides for additional percentage rent upon the achievement of certain gross sales thresholds.

Daytona Beach Development. We may selectively acquire other real estate in the downtown and beachside areas of Daytona Beach, Florida. We may target either vacant land or land with existing structures that we would demolish and develop into additional income properties. During the first quarter of 2018, the Company acquired a 3-acre parcel of land with existing structures in downtown Daytona Beach, Florida for a purchase price of approximately $2.0 million. As of June 30, 2018, the Company has also acquired other contiguous parcels for a total of approximately 0.9-acres for approximately $1.5 million. We intend to pursue the potential redevelopment of these parcels, which are located nearly adjacent to the location of the future new headquarters of Brown & Brown, Inc. (NYSE: BRO) along with certain other adjacent land parcels, some of which we have under contract for purchase. We intend for our investments in the Daytona Beach area to target opportunistic acquisitions of select catalyst sites, which are typically distressed, with an objective of having short investment horizons. We may seek to partner with developers to develop the sites acquired during the six months ended June 30, 2018, and any other sites we acquire, rather than self-develop the properties.

Opportunity Zones. Approximately 257 acres of the Company’s land holdings, of which 164 acres are already under contract for approximately $23 million, are located in one of Florida’s newly-established Opportunity Zones created by the Tax Cuts and Jobs Act Bill (the “Act”) passed in December 2017, which provides significant tax advantages to developers and businesses who conduct business within these zones pursuant to the Act.

Other Real Estate Assets. The Company owns impact fees with a cost basis of approximately $199,000 and mitigation credits with a cost basis of approximately $526,000 for a combined total of approximately $725,000 as of June 30, 2018. During the six months ended June 30, 2018, the Company transferred mitigation credits with a basis of approximately $124,000 to the land acquired by Buc-ee’s. During the six months ended June 30, 2018, the Company sold mitigation credits for approximately $455,000, for a gain of approximately $403,000, or $0.05 per share, after tax. During the six months ended June 30, 2017, the Company sold mitigation credits for approximately $1.1 million, for a gain of approximately $932,000, or $0.10 per share, after tax. During the six months ended June 30, 2018 and 2017, the Company received cash payments of approximately $131,000 and $291,000, respectively, for impact fees with a cost basis that was generally of equal value. Additionally, during the six months ended June 30, 2018, impact fees with a cost basis of approximately $72,000 were transferred to the beachfront restaurant leased to LandShark Bar & Grill.

As of December 31, 2017, the Company owned impact fees with a cost basis of approximately $402,000 and mitigation credits with a cost basis of approximately $723,000 for a combined total of approximately $1.1 million.

Subsurface Interests. As of June 30, 2018, the Company owns full or fractional subsurface oil, gas, and mineral interests underlying approximately 461,000 “surface” acres of land owned by others in 20 counties in Florida (the “Subsurface Interests”). The Company leases certain of the Subsurface Interests to mineral exploration firms for exploration. Our

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subsurface operations consist of revenue from the leasing of exploration rights and in some instances, additional revenues from royalties applicable to production from the leased acreage.

During 2011, an eight-year oil exploration lease was executed covering a portion of our Subsurface Interests. On September 20, 2017, the Company amended the oil exploration lease to, among other things, extend the expiration of the original term for five additional years to the new expiration date of September 22, 2024. The lease is effectively thirteen one-year terms as the lessee has the option to terminate the lease at the end of each lease year. The lessee has exercised renewal options through lease year seven ending September 22, 2018. The terms of the lease state the Company will receive royalty payments if production occurs, and may receive additional annual rental payments if the lease is continued in years eight through thirteen. The lease calls for annual lease payments which are recognized as revenue ratably over the respective twelve-month lease periods. In addition, non-refundable drilling penalty payments are made as required by the drilling requirements in the lease which are recognized as revenue when received.

Lease payments on the respective acreages and drilling penalties received through lease year seven 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
Lease Year 7 - 9/23/2017 - 9/22/2018	15,000	Hendry		806,683		50,000
Total Payments Received to Date			$	9,827,121	$	1,975,000

(1)Generally, cash payment for the Lease Payment and Drilling Penalty is received on or before the first day of the lease year. The Drilling Penalty, which is due within thirty days from the end of the prior lease year, is recorded as revenue when received, while the Lease Payment is recognized on a straight-line basis over the respective lease term. Pursuant to the amendment for the Year 7 renewal, the Lease Payment and Drilling Penalty were both received on October 11, 2017. See separate disclosure of revenue recognized per period below.

Lease income generated by the annual lease payments is recognized on a straight-line basis over the guaranteed lease term. For both the three and six months ended June 30, 2018 and 2017, respectively, lease income of approximately $201,000 and $400,000 was recognized. There can be no assurance that the oil exploration lease will be extended beyond the expiration of the current term of September 22, 2018 or, if extended, the terms or conditions of such extension.

During the six months ended June 30, 2018 and 2017, the Company also received oil royalties from operating oil wells on 800 acres under a separate lease with a separate operator. Revenues received from oil royalties totaled approximately $12,000 and $18,000, during the three months ended June 30, 2018 and 2017, respectively. Revenues received from oil royalties totaled approximately $44,000 and $49,000, during the six months ended June 30, 2018 and 2017, respectively.

The Company is not prohibited from the disposition of any or all of its Subsurface Interests. Should the Company complete a transaction to sell all or a portion of its Subsurface Interests, the Company may utilize the like-kind exchange structure in acquiring one or more replacement investments including income-producing properties. The Company may release surface entry rights or other rights upon request of a surface owner for a negotiated release fee typically based on a percentage of the surface value. 

During the six months ended June 30, 2018, the Company completed a transaction releasing our surface entry rights on approximately 600 acres in exchange for approximately $185,000 in cash and fee title to approximately 40 additional acres in Hendry County, valued at approximately $320,000. Including the non-cash value received, the gain from the transaction totaled approximately $435,000, or $0.06 per share, after tax. The Company also received cash payments for the release of surface entry rights of approximately $68,000 during the six months ended June 30, 2018. There were no releases of surface entry rights during the six months ended June 30, 2017.

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Golf Operations. Golf operations, which are managed by a third party, consist of the LPGA International Golf Club, a semi-private golf club, located in Daytona Beach, Florida, consisting of two 18-hole championship golf courses, one designed by Rees Jones and the other designed by Arthur Hills, with a three-hole practice facility also designed by Rees Jones, a clubhouse facility, food and beverage operations, and a fitness facility located within the LPGA International mixed-use residential community on the west side of Interstate 95.

In July 2012, the Company entered into an agreement with the City to, among other things, amend the lease payments under its golf course lease (the “Lease Amendment”). Under the Lease Amendment, the base rent payment, which was scheduled to increase from $250,000 to $500,000 as of September 1, 2012, remained at $250,000 for the remainder of the lease term and any extensions would have been subject to an annual rate increase of 1.75% beginning September 1, 2013. On January 24, 2017, the Company acquired the land and improvements comprising the golf courses, previously leased from the City, for approximately $1.5 million (the “Golf Course Land Purchase”). In conjunction with the Golf Course Land Purchase, the lease between the Company and the City was terminated. Therefore, during the first quarter of 2017, the Company eliminated the remaining accrued liability of approximately $2.2 million, resulting in the recognition of approximately $0.40 per share in non-cash earnings, or $0.24 per share after tax, which comprises the land lease termination in the consolidated statements of operations. The $2.2 million consisted of approximately $1.7 million which reflects the acceleration of the remaining amount of accrued rent that was no longer owed to the City as a result of the Lease Amendment, which prior to the Golf Course Land Purchase was being recognized into income over the remaining lease term which was originally to expire in 2022. The remaining approximately $500,000 reflects the amount of rent accrued pursuant to the lease, as amended, which will no longer be owed to the City due to the lease termination on January 24, 2017.  

As a part of the Golf Course Land Purchase, the Company donated to the City three land parcels totaling approximately 14.3 acres located on the west side of Interstate 95 that are adjacent to the City’s Municipal Stadium. The Company had a cost basis of $0 in the donated land and paid approximately $100,000 to satisfy the community development district bonds associated with the acreage. Other terms of the Golf Course Land Purchase include the following:

· The Company is obligated to pay the City additional consideration in the form of an annual surcharge of $1 per golf round played each year (the “Per-Round Surcharge”) with an annual minimum Per-Round Surcharge of $70,000 and a maximum aggregate amount of the Per-Round Surcharges paid equal to $700,000. The first annual payment was made in January 2018 leaving a remaining commitment of approximately $630,000 as of June 30, 2018;

· Within one year following the date of the closing of the Golf Course Land Purchase, unless extended due to weather related delays outside the Company’s control, the Company is obligated to renovate the greens on the Jones Course; and

· If the Company sells the LPGA International Golf Club within six years of the closing of the Golf Course Land Purchase, the Company is obligated to pay the City an amount equal to 10% of the difference between the sales price, less closing costs and any other costs required to be incurred in connection with the sale, and $4.0 million.

Commercial Loan Investments. Our investments in commercial loans or similar structured finance investments, such as mezzanine loans or other subordinated debt, have been and are expected to continue to be secured by commercial or residential real estate or the borrower’s pledge of its ownership interest in the entity that owns the real estate. The first mortgage loans we invest in or originate are for commercial real estate located in the United States and its territories, and are current or performing with either a fixed or floating rate. Some of these loans may be syndicated in either a pari-passu or senior/subordinated structure. Commercial first mortgage loans generally provide for a higher recovery rate due to their senior position in the underlying collateral. Commercial mezzanine loans are typically secured by a pledge of the borrower’s equity ownership in the underlying commercial real estate. Unlike a mortgage, a mezzanine loan is not secured by a lien on the property. An investor’s rights in a mezzanine loan are usually governed by an intercreditor agreement that provides holders with the rights to cure defaults and exercise control on certain decisions of any senior debt secured by the same commercial property.

On June 13, 2018, the variable rate B-Note (the “B-Note”) held by the Company and secured by real estate located in Sarasota, Florida matured and was repaid by the borrower. The Company purchased the B-Note in May 2014. The proceeds of approximately $9.0 million were used to pay down the Company’s Credit Facility.

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As of June 30, 2018, the Company owned one performing commercial loan investment with an outstanding principal balance of approximately $3.0 million. The loan is secured by real estate located in Daytona Beach Shores, Florida.

Agriculture and Other Income. Effectively all of our agriculture and other income consists of revenues generated by our agricultural operations. The Company’s agricultural lands encompass approximately 4,500 acres on the west side of Daytona Beach, Florida. Our agricultural operations are managed by a third-party and consist of leasing land for hay production and timber harvesting, as well as hunting leases.

SUMMARY OF OPERATING RESULTS FOR THE QUARTER ENDED JUNE 30, 2018 COMPARED TO JUNE 30, 2017

REVENUE

Total revenue for the three months ended June 30, 2018 is presented in the following summary and indicates the changes as compared to three months ended June 30, 2017:

	Revenue for the		Increase (Decrease)
	Quarter Ended		Vs. Same Period		Vs. Same Period
	6/30/2018		in 2017		in 2017
Operating Segment	($000's)		($000's)		(%)
Income Properties	$	9,781	$	2,216		29%
Interest Income from Commercial Loan Investments		274		(279)		-50%
Real Estate Operations		2,484		(10,773)		-81%
Golf Operations		1,283		(101)		-7%
Agriculture & Other Income		11		(68)		-86%
Total Revenue	$	13,833	$	(9,005)		-39%

The decrease in total revenue was primarily the result of the decrease in Real Estate Operations Revenue which was partially offset by the increase in Income Property Operations Revenue, both of which are outlined in the following tables, respectively:

	Revenue for the		Increase (Decrease)
	Quarter Ended		Vs. Same Period
	6/30/2018		in 2017
Real Estate Operations Revenue	($000's)		($000's)
Land Sales Revenue	$	1,734	$	(9,124)
Revenue from Reimbursement of Infrastructure Costs		—		(955)
Impact Fee and Mitigation Credit Sales		470		(752)
Subsurface Revenue		280		58
Total Real Estate Operations Revenue	$	2,484	$	(10,773)

	Revenue for the		Increase (Decrease)
	Quarter Ended		Vs. Same Period
	6/30/2018		in 2017
Income Property Operations Revenue	($000's)		($000's)
Revenue from Recent Acquisitions	$	2,467	$	1,952
Revenue from Recent Dispositions		16		(300)
Revenue from The Grove at Winter Park and Beachfront Restaurants		430		297
Revenue from Remaining Portfolio		6,268		217
Accretion of Above Market/Below Market Intangibles		600		50
Total Income Property Operations Revenue	$	9,781	$	2,216

Total revenue for the quarter ended June 30, 2018 was also impacted by a decrease of approximately $280,000 in the revenue generated by our commercial loan investments, primarily as a result of the sale of our two mezzanine loans in October 2017.

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NET INCOME

Net income and basic net income per share for the quarter ended June 30, 2018, compared to the same period in 2017, was as follows:

					Increase (Decrease)
	Quarter Ended		Quarter Ended		Vs. Same Period		Vs. Same Period
	6/30/2018		6/30/2017		in 2017		in 2017
Net Income	$	14,162,908	$	3,678,908	$	10,484,000		285%
Basic Earnings Per Share	$	2.56	$	0.67	$	1.89		282%

The above results for the second quarter of 2018, compared to the same period in 2017, reflected the following significant operating elements in addition to the impacts from the changes in revenues described above:

· The approximately $18.4 million gain on disposition of assets recognized during the three months ended June 30, 2018 on the Mitigation Bank transaction, comprised of (i) the gain on the sale of the 70% interest for proceeds of $15.3 million and (ii) the gain on the 30% retained interest, with no such gain on disposition of assets recognized during the same period in 2017;

· A decrease in direct cost of revenues of approximately $4.4 million primarily reflecting the impact of the second quarter of 2017 land sales consisting of higher basis land parcels for a decrease of approximately $4.9 million in the direct cost of revenues of real estate operations, partially offset by an increase of approximately $0.4 million in the operating costs of the income property operations segment reflecting the larger income property portfolio;

· Increased interest expense of approximately $0.4 million resulting from increased borrowings on our credit facility; and

· An increase in depreciation and amortization of approximately $0.6 million resulting from the growth in our income property portfolio.

In addition, net income was impacted by a decrease in general and administrative expenses of approximately $0.3 million which is summarized as follows:

	G&A Expense		Increase (Decrease)
	Quarter Ended		Vs. Same Period
	6/30/2018		in 2017
General and Administrative Expenses	($000's)		($000's)
Recurring General and Administrative Expenses	$	1,578	$	(303)
Non-Cash Stock Compensation		430		41
Shareholder  and Proxy Matter Legal and Related Costs		421		(36)
Total General and Administrative Expenses	$	2,429	$	(298)

INCOME PROPERTIES

Total revenue and operating income from our income property operations totaled approximately $9.8 million and $7.7 million, respectively, during the quarter ended June 30, 2018, compared to total revenue and operating income of approximately $7.6 million and $5.9 million, respectively, for the quarter ended June 30, 2017. The direct costs of revenues for our income property operations totaled approximately $2.0 million and $1.6 million for the quarters ended June 30, 2018 and 2017, respectively. The increase in revenues of approximately $2.2 million, or 29%, during the quarter ended June 30, 2018 reflects our expanded portfolio of income properties including increases of approximately $1.9 million due to recent acquisitions, and an increase of approximately $297,000 in revenue generated by the lease-up of our multi-tenant property, The Grove at Winter Park in Winter Park, Florida, and the rent from our two self-developed single-tenant beachfront restaurant properties that opened in January 2018, offset by the decrease of approximately $300,000 related to the recent Self-Developed Properties Sale. Revenue from our income properties during the quarters ended June 30, 2018 and 2017 also includes approximately $600,000 and $550,000, respectively, in revenue from the accretion of the below-market lease intangible, of which a significant portion is attributable to the property located in Raleigh, North Carolina leased to Wells Fargo. Our increased operating income from our income property operations reflects increased rent revenues offset by an increase of approximately $405,000 in our direct costs of revenues which was primarily comprised of approximately $271,000 in increased operating expenses related to our recent acquisitions and increased costs associated with The Grove at Winter Park in Winter Park, Florida, and the two single-tenant beachfront restaurant properties, offset by the reduction in operating expenses related to the recent Self-Developed Properties Sale.

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REAL ESTATE OPERATIONS

During the quarter ended June 30, 2018, operating income from real estate operations was approximately $1.6 million on revenues totaling approximately $2.5 million. During the quarter ended June 30, 2017, operating income was approximately $7.5 million on revenues totaling approximately $13.3 million. The decrease in revenue of approximately $10.8 million and operating income of approximately $5.9 million is primarily attributable to the decrease in the gross sales price from land sales transactions of approximately $10.1 million. The decrease of approximately $4.9 million in direct costs of real estate operations is primarily the result of the second quarter of 2017 land sales consisting of higher basis land parcels.

GOLF OPERATIONS

Revenues from golf operations totaled approximately $1.3 million and $1.4 million for the three months ended June 30, 2018 and 2017, respectively. The total direct cost of golf operations revenues totaled approximately $1.5 million and $1.4 million for the three months ended June 30, 2018 and 2017, respectively. The Company’s golf operations had a net operating loss of approximately $242,000 and approximately $18,000 during the three months ended June 30, 2018 and 2017, respectively. 

INTEREST INCOME FROM COMMERCIAL LOAN INVESTMENTS

Interest income from our commercial loan investments totaled approximately $273,000 and $553,000 during the three months ended June 30, 2018 and 2017, respectively. The decrease is primarily attributable to the sale of the Company’s two mezzanine loans in October 2017. With the payoff of the approximately $9.0 million B-Note at its maturity in June 2018, interest income is expected to continue to decrease in future quarters.

AGRICULTURE AND OTHER INCOME

For the three months ended June 30, 2018 and 2017, revenues from agriculture and other income totaled approximately $11,000 and $79,000, respectively, with the decrease due to a timber harvesting contract that generated approximately $68,000 of revenue in the second quarter of 2017, with none in the second quarter of 2018. For the three months ended June 30, 2018 and 2017, the direct cost of revenues totaled approximately $5,000 and $31,000, respectively.

GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses totaled approximately $2.4 million and $2.7 million for the three months ended June 30, 2018 and 2017, respectively, a decrease of approximately $0.3 million. The decrease is primarily related to decreases in general professional and consulting costs as well as reduced costs incurred quarter-over-quarter with respect to shareholder matters, including the proxy contests, in both 2017 and 2018.

GAINS ON DISPOSITION OF ASSETS AND IMPAIRMENT CHARGES

During the three months ended June 30, 2018, the Company completed the sale of a 70% interest in the Mitigation Bank that holds approximately 2,492 acres of land for proceeds of $15.3 million. The gain on the sale totaled approximately $18.4 million and is comprised of (i) the gain on the sale of the 70% interest for proceeds of $15.3 million and (ii) the gain on the 30% retained interest.

No income properties were disposed of during the three months ended June 30, 2017.

There were no impairment charges during the three months ended June 30, 2018 or 2017.

INTEREST EXPENSE

Interest expense totaled approximately $2.5 million and $2.1 million for the three months ended June 30, 2018 and 2017, respectively. The increase of approximately $393,000 is primarily the result of increased borrowings on the Company’s credit facility for recent acquisitions.

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SUMMARY OF OPERATING RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2018 COMPARED TO JUNE 30, 2017

REVENUE

Total revenue for the six months ended June 30, 2018 is presented in the following summary and indicates the changes as compared to six months ended June 30, 2017:

	Revenue for		Increase (Decrease)
	Six Months Ended		Vs. Same Period		Vs. Same Period
	6/30/2018		in 2017		in 2017
Operating Segment	($000's)		($000's)		(%)
Income Properties	$	18,987	$	4,349		30%
Interest Income from Commercial Loan Investments		575		(515)		-47%
Real Estate Operations		16,463		(26,269)		-61%
Golf Operations		2,638		(220)		-8%
Agriculture & Other Income		22		(211)		-91%
Total Revenue	$	38,685	$	(22,866)		-37%

The decrease in total revenue was primarily the result of the decrease in Real Estate Operations Revenue which was partially offset by the increase in Income Property Operations Revenue, both of which are outlined in the following tables, respectively:

	Revenue for		Increase (Decrease)
	Six Months Ended		Vs. Same Period
	6/30/2018		in 2017
Real Estate Operations Revenue	($000's)		($000's)
Land Sales Revenue	$	14,851	$	(24,713)
Revenue from Reimbursement of Infrastructure Costs		—		(1,276)
Impact Fee and Mitigation Credit Sales		586		(853)
Subsurface Revenue		1,026		573
Total Real Estate Operations Revenue	$	16,463	$	(26,269)

	Revenue for		Increase (Decrease)
	Six Months Ended		Vs. Same Period
	6/30/2018		in 2017
Income Property Operations Revenue	($000's)		($000's)
Revenue from Recent Acquisitions	$	3,955	$	3,124
Revenue from Recent Dispositions		350		(299)
Revenue from The Grove at Winter Park and Beachfront Restaurants		831		694
Revenue from Remaining Portfolio		12,671		731
Accretion of Above Market/Below Market Intangibles		1,180		99
Total Income Property Operations Revenue	$	18,987	$	4,349

Total revenue for the six months ended June 30, 2018 was also impacted by a decrease of approximately $515,000 in the revenue generated by our commercial loan investments, primarily as a result of the sale of our two mezzanine loans in October 2017.

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NET INCOME

Net income and basic net income per share for the six months ended June 30, 2018 and 2017, compared to the same period in 2017, was as follows:

					Increase (Decrease)
	Six Months Ended		Six Months Ended		Vs. Same Period		Vs. Same Period
	6/30/2018		6/30/2017		in 2017		in 2017
Net Income	$	25,075,207	$	16,425,300	$	8,649,907		53%
Basic Earnings Per Share	$	4.53	$	2.95	$	1.58		54%

The above results for the six months ended June 30, 2018, compared to the same period in 2017, reflected the following significant operating elements in addition to the impact of the changes in revenues as described above:

· The approximately $22.1 million gain on disposition of assets recognized during the six months ended June 30, 2018 consisting of the approximately $18.4 million gain on the Mitigation Bank transaction, comprised of (i) the gain on the sale of the 70% interest for proceeds of $15.3 million and (ii) the gain on the 30% retained interest, and the approximately $3.7 million gain on the Self-Developed Properties Sale, with no such gain on disposition of assets recognized during the same period in 2017;

· A decrease in direct cost of revenues of approximately $11.7 million primarily reflecting the impact of the larger level of land sales during the six months ended June 30, 2017 including the second quarter of 2017 land sales consisting of higher basis land parcels for a decrease of approximately $12.5 million in the direct cost of revenues of real estate operations, partially offset by an increase of approximately $0.9 million in the operating costs of the income property operations segment reflecting the larger income property portfolio;

· Income of approximately $2.2 million recognized in the first quarter of 2017 in connection with the Company’s purchase of the golf leased fee interest in the 690-acre golf course which terminated the land lease affiliated with the golf operations and triggered an elimination of the previously recognized straight-line rent under the lease;

· Increased interest expense of approximately $0.9 million resulting from increased borrowings on our credit facility; and

· An increase in depreciation and amortization of approximately $1.8 million resulting from the growth in our income property portfolio.

In addition, net income was impacted by a decrease in general and administrative expenses of approximately $0.7 million which is summarized as follows:

	G&A Expense		Decrease (Increase)
	Six Months Ended		Vs. Same Period
	6/30/2018		in 2017
General and Administrative Expenses	($000's)		($000's)
Recurring General and Administrative Expenses	$	3,411	$	(410)
Non-Cash Stock Compensation		898		155
Shareholder  and Proxy Matter Legal and Related Costs		944		(439)
Total General and Administrative Expenses	$	5,253	$	(694)

INCOME PROPERTIES

Revenues and operating income from our income property operations totaled approximately $19.0 million and $15.1 million, respectively, during the six months ended June 30, 2018, compared to total revenue and operating income of approximately $14.6 million and $11.6 million, respectively, for the six months ended June 30, 2017. The direct costs of revenues for our income property operations totaled approximately $3.9 million and $3.0 million for the six months ended June 30, 2018 and 2017, respectively. The increase in revenues of approximately $4.3 million, or 30%, during the six months ended June 30, 2018 reflects our expanded portfolio of income properties including increases of approximately $3.1 million due to recent acquisitions, and an increase of approximately $731,000 in revenue generated by the lease-up of our multi-tenant property, The Grove at Winter Park in Winter Park, Florida, and the rent from our two self-developed single-tenant beachfront restaurant properties that opened in January 2018, offset by the decrease of approximately $298,000 related to the recent Self-Developed Properties Sale. Revenue from our income properties

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during the six months ended June 30, 2018 and 2017 also includes approximately $1.2 million and $1.1 million, respectively, in revenue from the accretion of the below-market lease intangible, of which a significant portion is attributable to the property located in Raleigh, North Carolina leased to Wells Fargo. Our increased operating income from our income property operations reflects increased rent revenues offset by an increase of approximately $863,000 in our direct costs of revenues which was primarily comprised of approximately $456,000 in increased operating expenses related to our recent acquisitions and increased costs associated with The Grove at Winter Park in Winter Park, Florida, and the two single-tenant beachfront restaurant properties, offset by the reduction in operating expenses related to the recent Self-Developed Properties Sale.

REAL ESTATE OPERATIONS

During the six months ended June 30, 2018, operating income from real estate operations was approximately $14.1 million on revenues totaling approximately $16.5 million. During the six months ended June 30, 2017, operating income was approximately $27.8 million on revenues totaling approximately $42.7 million. The decreases in revenue of approximately $26.3 million and operating income of approximately $13.7 million is primarily attributable to the decrease in the gross sales price from land sales transactions of approximately $24.8 million. The decrease of approximately $12.5 million in direct costs of real estate operations is primarily the result of the 2017 land sales consisting of higher basis land parcels.

GOLF OPERATIONS

Revenues from golf operations totaled approximately $2.6 million and $2.9 million for the six months ended June 30, 2018 and 2017, respectively. The total direct cost of golf operations revenues totaled approximately $2.9 million for the six months ended June 30, 2018 and 2017. The Company’s golf operations had a net operating loss of approximately $270,000 and approximately $42,000 during the six months ended June 30, 2018 and 2017, respectively. 

INTEREST INCOME FROM COMMERCIAL LOAN INVESTMENTS

Interest income from our commercial loan investments totaled approximately $574,000 and $1.1 million during the six months ended June 30, 2018 and 2017, respectively. The decrease is primarily attributable to the sale of the Company’s two mezzanine loans in October 2017. With the payoff of the approximately $9.0 million B-Note at its maturity in June 2018, interest income is expected to continue to decrease in future quarters.

AGRICULTURE AND OTHER INCOME

For the six months ended June 30, 2018 and 2017, revenues from agriculture and other income totaled approximately $22,000 and $233,000, respectively, with the decrease due to a timber harvesting contract that generated approximately $211,000 of revenue during the six months ended June 30, 2017, with none in the six months ended June 30, 2018. For the six months ended June 30, 2018 and 2017, the direct cost of revenues totaled approximately $10,000 and $71,000, respectively.

GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses totaled approximately $5.3 million and $5.9 million for the six months ended June 30, 2018 and 2017, respectively, a decrease of approximately $0.7 million. The decrease is primarily related to decreases in general professional and consulting costs as well as reduced costs incurred quarter-over-quarter with respect to shareholder matters, including the proxy contests, in both 2017 and 2018.

GAINS ON DISPOSITION OF ASSETS AND IMPAIRMENT CHARGES

No income properties were disposed of during the six months ended June 30, 2017.

During the six months ended June 30, 2018, the Company completed the sale of a 70% interest in the Mitigation Bank that holds approximately 2,492 acres of land for proceeds of $15.3 million. The gain on the sale totaled approximately $18.4 million and is comprised of the gain on the sale of the 70% interest for proceeds of $15.3 million as well as the gain on the 30% interest retained.

Four income properties were disposed of during the six months ended June 30, 2018. On March 26, 2018, the Company sold its four self-developed, multi-tenant office properties located in Daytona Beach, Florida for approximately $11.4 million (the “Self-Developed Properties Sale”). The sale included the 22,012 square-foot Concierge office building, the 30,720 square-foot Mason Commerce Center comprising two office buildings, and the 15,360 Williamson Business Park

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office building. The gain on the sale totaled approximately $3.7 million, or approximately $0.49 per share, after tax. The Company utilized the proceeds to fund a portion of the previously acquired income property located near Portland, Oregon leased to Wells Fargo, through a reverse 1031 like-kind exchange structure.

There were no impairment charges during the six months ended June 30, 2018 or 2017.

INTEREST EXPENSE

Interest expense totaled approximately $5.1 million and $4.2 million for the six months ended June 30, 2018 and 2017, respectively. The increase of approximately $893,000 is primarily the result of increased borrowings on the Company’s credit facility for recent acquisitions.

LIQUIDITY AND CAPITAL RESOURCES

Cash and equivalents totaled approximately $4.3 million at June 30, 2018, excluding restricted cash. Restricted cash totaled approximately $2.4 million at June 30, 2018 of which approximately $1.2 million is being held in three separate escrow accounts related to three separate land transactions which closed in December 2013, February 2017, and March 2018; approximately $127,000 is being held in a reserve for interest and property taxes for the $3.0 million first mortgage loan investment originated in July 2017; approximately $185,000 is being held in a capital replacement reserve account in connection with our financing of six income properties with Wells Fargo Bank, NA (“Wells Fargo”); and approximately $918,000 is being held in a leasing reserve in connection with our acquisition of the single-tenant master leased property in Aspen, Colorado in February 2018.

Our total cash balance at June 30, 2018 benefited from cash flows provided by our operating activities totaling approximately $14.3 million during the six months ended June 30, 2018, compared to the prior year’s cash flows provided by operating activities totaling approximately $45.3 million in the same period in 2017, for a decrease of approximately $31.0 million. The decrease is primarily the result of the decrease in proceeds received from our land sales quarter-over-quarter, a decrease in gross sales price of approximately $24.8  million.

Our cash flows from investing activities totaled approximately $2.2 million for the six months ended June 30, 2018 while cash flows used in investing activities totaled approximately $46.6 million for the six months ended June 30, 2017, an increase of approximately $48.8 million. Cash outflows used for income property acquisitions were approximately $17.7 million more during the six months ended June 30, 2017 and the Company received proceeds of approximately $11.1 million from the Self-Developed Properties Sale, $15.3 million from the sale of a 70% interest in the Mitigation Bank, and approximately $9.0 million from the payoff of the commercial loan investment B-Note which offset the income property acquisition costs for the six months ended June 30, 2018.

Our cash flows used in financing activities totaled approximately $22.8 million and $4.4 million for the six months ended June 30, 2018 and 2017, respectively, an increase of approximately $18.4 million. The increase in cash used in financing activities is primarily related to net payments on long-term debt of approximately $19.4 million during the six months ended June 30, 2018 versus net borrowings on long-term debt totaling approximately $1.7 million, for a total increase in cash used to repay long-term debt of approximately $21.1 million. This was partially offset by approximately $3.3 million of increased stock buybacks during the six months ended June 30, 2017 compared to the same period in 2018.

Our long-term debt balance, at face value, totaled approximately $180.6 million at June 30, 2018, representing a decrease of approximately $19.4 million from the face value balance of approximately $200.0 million at December 31, 2017. The decrease was due to the approximately $19.3 million in net repayments on our revolving credit facility.

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As of June 30, 2018, the Company’s outstanding indebtedness, at face value, was as follows:

	Face		Maturity	Interest
	Value Debt		Date	Rate
Credit Facility	$	50,745,579	September 2021		30 ‑day LIBOR plus 1.50% -2.20%
Mortgage Note Payable (originated with Wells Fargo) (1)		30,000,000	October 2034		4.330%
Mortgage Note Payable (originated with Wells Fargo) (2)		24,886,938	April 2021		30 ‑day LIBOR plus 1.90%
4.50% Convertible Senior Notes due 2020, net of discount		75,000,000	March 2020		4.500%
Total Long-Term Face Value Debt	$	180,632,517

(1)Secured by the Company’s interest in six income properties. The mortgage loan carries a fixed rate of 4.33% per annum during the first ten years of the term, and requires payments of interest only during the first ten years of the loan. After the tenth anniversary of the effective date of the loan, the cash flows, as defined in the related loan agreement, generated by the underlying six income properties must be used to pay down the principal balance of the loan until paid off or until the loan matures. The loan is fully pre-payable after the tenth anniversary of the effective date of the loan.

(2)Secured by the Company’s income property leased to Wells Fargo located in Raleigh, North Carolina. The mortgage loan has a 5-year term with two years interest only, and interest and a 25-year amortization for the balance of the term. The mortgage loan bears a variable rate of interest based on the 30-day LIBOR plus a rate of 190 basis points. The interest rate for this mortgage loan has been fixed through the use of an interest rate swap that fixed the rate at 3.17%. The mortgage loan can be prepaid at any time subject to the termination of the interest rate swap. Amortization of the principal balance began in May 2018.

Credit Facility. The Company’s revolving credit facility (the “Credit Facility”), with Bank of Montreal (“BMO”) serving as the administrative agent for the lenders thereunder, is unsecured with regard to our income property portfolio but is guaranteed by certain wholly-owned subsidiaries of the Company. The Credit Facility bank group is led by BMO and also includes Wells Fargo and Branch Banking & Trust Company. On September 7, 2017, the Company executed the second amendment and restatement of the Credit Facility (the “2017 Revolver Amendment”). Pursuant to the 2017 Revolver Amendment, the Credit Facility matures on September 7, 2021, with the ability to extend the term for 1 year.

On May 14, 2018, the Company executed the first amendment to the 2017 Revolver Amendment (the “2018 Revolver Amendment”). As a result of the 2018 Revolver Amendment, the Credit Facility has a total borrowing capacity of $150.0 million with the ability to increase that capacity up to $250.0 million during the term. The Credit Facility provides the lenders with a secured interest in the equity of the Company subsidiaries that own the properties included in the borrowing base. The indebtedness outstanding under the Credit Facility accrues interest at a rate ranging from the 30-day LIBOR plus 150 basis points to the 30-day LIBOR plus 220 basis points based on the total balance outstanding under the Credit Facility as a percentage of the total asset value of the Company, as defined in the 2017 Revolver Amendment, as amended by the 2018 Revolver Amendment. The Credit Facility also accrues a fee of 15 to 25 basis points for any unused portion of the borrowing capacity based on whether the unused portion is greater or less than 50% of the total borrowing capacity.

At June 30, 2018, the current commitment level under the Credit Facility was $150.0 million. The available borrowing capacity under the Credit Facility was approximately $99.1 million, based on the level of borrowing base assets. As of June 30, 2018, the Credit Facility had a $50.7 million balance outstanding.

The Credit Facility is subject to customary restrictive covenants including, but not limited to, limitations on the Company’s ability to: (a) incur indebtedness; (b) make certain investments; (c) incur certain liens; (d) engage in certain affiliate transactions; and (e) engage in certain major transactions such as mergers. In addition, the Company is subject to various financial maintenance covenants including, but not limited to, a maximum indebtedness ratio, a maximum secured indebtedness ratio, and a minimum fixed charge coverage ratio. The Credit Facility also contains affirmative covenants and events of default including, but not limited to, a cross default to the Company’s other indebtedness and upon the occurrence of a change of control. The Company’s failure to comply with these covenants or the occurrence of an event of default could result in acceleration of the Company’s debt and other financial obligations under the Credit Facility.

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Mortgage Notes Payable. In addition to the Credit Facility, the Company has certain other borrowings, as noted in the table above, all of which are non-recourse.

Convertible Debt. The Company’s $75.0 million aggregate principal amount of 4.50% Convertible Notes will mature on March 15, 2020, unless earlier purchased or converted. The initial conversion rate was 14.5136 shares of common stock for each $1,000 principal amount of Convertible Notes, which represented an initial conversion price of approximately $68.90 per share of common stock. Since July of 2016, when the Company’s Board of Directors implemented a quarterly dividend in place of the previous semi-annual dividend, the conversion rate has been adjusted with each successive quarterly dividend and is currently, after the second quarter 2018 dividend, equal to 14.5701 shares of common stock for each $1,000 principal amount of Convertible Notes, which represents an adjusted conversion price of approximately $68.63 per share of common stock.

The conversion rate is subject to adjustment in certain circumstances. Holders may not surrender their Convertible Notes for conversion prior to December 15, 2019 except upon the occurrence of certain conditions relating to the closing sale price of the Company’s common stock, the trading price per $1,000 principal amount of Convertible Notes, or specified corporate events including a change in control of the Company. The Company may not redeem the Convertible Notes prior to the stated maturity date and no sinking fund is provided for the Convertible Notes. The Convertible Notes are convertible, at the election of the Company, into solely cash, solely shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock. The Company intends to settle the Convertible Notes in cash upon conversion, with any excess conversion value to be settled in shares of our common stock. In accordance with GAAP, the Convertible Notes are accounted for as a liability with a separate equity component recorded for the conversion option. A liability was recorded for the Convertible Notes on the issuance date at fair value based on a discounted cash flow analysis using current market rates for debt instruments with similar terms. The difference between the initial proceeds from the Convertible Notes and the estimated fair value of the debt instruments resulted in a debt discount, with an offset recorded to additional paid-in capital representing the equity component. The discount on the Convertible Notes was approximately $6.1 million at issuance, which represents the cash discount paid of approximately $2.6 million and the approximate $3.5 million attributable to the value of the conversion option recorded in equity, which is being amortized into interest expense through the maturity date of the Convertible Notes. As of June 30, 2018, the unamortized debt discount of our Convertible Notes was approximately $2.3 million

The Company was in compliance with all of its debt covenants as of June 30, 2018 and December 31, 2017.

Acquisitions and Investments. During the six months ended June 30, 2018, the Company acquired one single-tenant income property for a purchase price of $28.0 million, or an acquisition cost of approximately $29.0 million including capitalized acquisition costs. The property acquired during the six months ended June 30, 2018 is described below:

Tenant Description	Tenant Type	Property Location	Date of Acquisition	Property Square-Feet	Property Acres	Purchase Price		Percentage Leased		Remaining Lease Term (in years)
Master Tenant for Commercial Building	Single-Tenant	Aspen, Colorado	02/21/18	19,596	0.18	$	28,000,000		100%		20.0

In conjunction with the closing of the property in Aspen, Colorado, the master tenant contributed approximately $1.5 million of the purchase price, resulting in a net investment by the Company of approximately $26.5 million. The $1.5 million purchase price contribution is reflected as deferred revenue and will be accreted into income property rental revenue over the term of the lease.

We are targeting investments between approximately $53.5 million to $93.5 million in income-producing properties during the remainder of 2018. We currently are not planning to make investments in commercial loans secured by commercial real estate during the remainder of 2018. We expect to fund our acquisitions utilizing available capacity under our credit facility, cash from operations, proceeds from land sales transactions, possibly the dispositions of income properties, and potentially the sale of all or a portion of our Subsurface Interests, each of which we expect will qualify under the like-kind exchange deferred-tax structure, and additional financing sources.

Dispositions. Four income properties were disposed of during the six months ended June 30, 2018. On March 26, 2018, the Company completed the Self-Developed Properties Sale for approximately $11.4 million. The sale included the 22,012 square-foot Concierge office building, the 30,720 square-foot Mason Commerce Center comprising two office

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buildings, and the 15,360 Williamson Business Park office building. The gain on the sale totaled approximately $3.7 million, or approximately $0.49 per share, after tax. The Company utilized the proceeds to fund a portion of the previously acquired income property located near Portland, Oregon leased to Wells Fargo, through a reverse 1031 like-kind exchange structure. As part of the transaction, the Company entered into a lease of its approximately 7,600 square foot office space in Williamson Business Park for approximately 5 years at a market rental rate.

Capital Expenditures. In conjunction with the Company’s sale of approximately 3.4 acres of land to RaceTrac in December 2013, the Company agreed to reimburse RaceTrac for a portion of the costs for road improvements and the other costs associated with bringing multiple ingress/egress points to the entire 23-acre Williamson Crossing site, including the Company’s remaining 19.6 acres. The total cost for the improvements was approximately $1.26 million and the Company has committed to reimburse RaceTrac in an amount equal to $976,500.  In 2013 the Company deposited $283,500 of cash in escrow related to the improvements, which was previously classified as restricted cash in the consolidated balance sheets. In the second quarter of 2018, the Company received confirmation that the required improvements were completed by RaceTrac. Accordingly, $283,500 was paid to RaceTrac leaving no remaining escrow balance as of June 30, 2018. As of June 30, 2018, the remaining commitment is approximately $693,000 which can be paid over five years from the proceeds from sales of the remaining land or at the end of the fifth year.

In conjunction with the Company’s sale of approximately 18.1 acres of land to an affiliate of Sam’s Club (“Sam’s”) in December 2015, the Company agreed to reimburse Sam’s for a portion of their construction costs applicable to adjacent outparcels retained by the Company. As a result, in December 2015, the Company deposited $125,000 of cash in escrow related to construction work which is classified as restricted cash in the consolidated balance sheets. The total amount in escrow as of June 30, 2018 was approximately $125,000, including accrued interest. Accordingly, the Company’s maximum commitment related to the construction work benefitting the outparcels adjacent to Sam’s land parcel is approximately $125,000, to be paid from escrow upon completion.

During April of 2018, the Company executed a contract with a third party to complete tenant improvements at The Grove at Winter Park property in Winter Park, Florida for a total of approximately $638,000. The Company has incurred approximately $596,000 of these costs as of June 30, 2018, leaving a remaining commitment of approximately $42,000.

In connection with the Golf Course Land Purchase, each year the Company is obligated to pay the City additional consideration in the amount of an annual surcharge of $1 per golf round played (the “Per-Round Surcharge”) with an annual minimum Per-Round Surcharge of $70,000 and a maximum aggregate amount of the Per-Round Surcharges paid equal to $700,000. The maximum amount of $700,000 represents contingent consideration and was recorded as an increase in Golf Buildings, Improvements, and Equipment and Accrued and Other Liabilities in the accompany consolidated balance sheets during the year ended December 31, 2017. The first annual payment of $70,000 was made in January of 2018, leaving a remaining commitment of $630,000 as of June 30, 2018.

As of June 30, 2018, we have no other contractual requirements to make capital expenditures.

In connection with a certain land sale contract to which the Company is a party, the purchaser’s pursuit of customary development entitlements gave rise to an inquiry by federal regulatory agencies regarding prior agricultural activities by the Company on such land. During the second quarter of 2015, we received a written information request regarding such activities. We submitted a written response to the information request along with supporting documentation. During the fourth quarter of 2015, based on discussions with the agency, a penalty related to this matter was deemed probable, and accordingly the estimated penalty of $187,500 was accrued as of December 31, 2015, for which payment was made during the quarter ended September 30, 2016. Also during the fourth quarter of 2015, the agency advised the Company that the resolution to the inquiry would likely require the Company to incur costs associated with wetlands restoration relating to approximately 148.4 acres of the Company’s land. At December 31, 2015, the Company’s third-party environmental engineers estimated the cost for such restoration activities to range from approximately $1.7 million to approximately $1.9 million. Accordingly, as of December 31, 2015, the Company accrued an obligation of approximately $1.7 million, representing the low end of the estimated range of possible restoration costs, and included such estimated costs on the consolidated balance sheets as an increase in the basis of our land and development costs associated with those and benefitting surrounding acres. As of June 30, 2016, the final proposal from the Company’s third-party environmental engineer was received reflecting a total cost of approximately $2.0 million. Accordingly, an increase in the accrual of approximately $300,000 was made during the second quarter of 2016. The Company has funded approximately $1.6 million of the total $2.0 million of estimated costs through June 30, 2018. The Company believes there is at least a reasonable possibility that the estimated remaining liability of approximately $464,000 could

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change within one year of the date of the consolidated financial statements, which in turn could have a material impact on the Company’s consolidated balance sheets and future cash flows. The Company evaluates its estimates on an ongoing basis; however, actual results may differ from those estimates.

During the first quarter of 2017, the Company completed the sale of approximately 1,581 acres of land to Minto Communities LLC which acreage represents a portion of the Company’s remaining $708,000 obligation. Accordingly, the Company deposited $423,000 of cash in escrow to secure performance on the obligation. The funds in escrow can be drawn upon completion of certain milestones including completion of restoration and annual required monitoring. The first such milestone was achieved during the fourth quarter of 2017 and $189,500 of the escrow was refunded leaving an escrow balance of approximately $234,000 as of June 30, 2018. Additionally, resolution of the regulatory matter required the Company to apply for an additional permit pertaining to an additional approximately 54.66 acres, which permit may require mitigation activities which the Company anticipates could be satisfied through the utilization of existing mitigation credits owned by the Company or the acquisition of mitigation credits. Resolution of this matter allowed the Company to obtain certain permits from the applicable federal or state regulatory agencies needed in connection with the closing of the land sale contract that gave rise to this matter. As of June 30, 2017, the Company determined that approximately 36 mitigation credits were required to be utilized, which represents approximately $298,000 in cost basis of the Company’s mitigation credits. Accordingly, the Company transferred the mitigation credits through a charge to direct cost of revenues of real estate operations during the three months ended June 30, 2017, thereby resolving the required mitigation activities related to the approximately 54.66 acres. In addition, in connection with other land sale contracts to which the Company is or may become a party, the pursuit of customary development entitlements by the potential purchasers may require the Company to utilize or acquire mitigation credits for the purpose of obtaining certain permits from the applicable federal or state regulatory agencies. Any costs incurred in connection with utilizing or acquiring such credits would be incorporated into the basis of the land under contract. No amounts related to such potential future costs have been accrued as of June 30, 2018.

During the period from the fourth quarter of 2015 through the first quarter of 2016, the Company received communications from Wintergreen Advisers, LLC (“Wintergreen”), some of which have been filed publicly. In investigating Wintergreen’s allegations contained in certain of these communications, in pursuing the strategic alternatives process suggested by Wintergreen, and in engaging in a proxy contest in 2017, the Company has incurred costs of approximately $3.0 million through December 31, 2017. Approximately $1.6 million of the approximately $3.0 million was incurred during the year ended December 31, 2017, of which approximately $1.2 million is specifically for legal representation and third-party costs related to the proxy contest. In addition to the costs incurred through December 31, 2017, during the six months ended June 30, 2018, the Company incurred approximately $944,000, which includes legal representation and third-party costs arising from shareholder-related matters, including the proxy contest in 2018. None of Wintergreen’s allegations, which included allegations regarding inadequate disclosure and other wrong-doing by the Company and its directors and officers, were found to have any basis or merit. 

We believe we will have sufficient liquidity to fund our operations, capital requirements, and debt service requirements over the next twelve months and into the foreseeable future, with our cash on hand, cash flow from our operations, cash from the completion of 1031 like-kind exchanges, and the available borrowing capacity of approximately $99.1 million under the Credit Facility, based on the level of borrowing base assets, as of June 30, 2018.

Our Board of Directors and management consistently review the allocation of capital with the goal of maximizing the long-term return for our shareholders. These reviews consider various alternatives, including increasing or decreasing regular dividends, repurchasing stock, and retaining funds for reinvestment.

Otherwise, at least annually, the Board of Directors reviews our business plan and corporate strategies and makes adjustments as circumstances warrant.

Management’s focus is to continue to execute on our strategy, which is to monetize our land holdings and redeploy the proceeds, when possible from like-kind exchange transactions, and utilizing leverage including the borrowing capacity available under our Credit Facility and possibly the disposition or payoffs on our commercial loan investments and subsurface transactions to increase and diversify our portfolio of income-producing properties, to provide stabilized cash flows with good risk adjusted returns primarily in major metropolitan areas and growth markets.

58

We believe that we currently have a reasonable level of leverage. Proceeds from closed land transactions provide us with investible capital. Our strategy is to utilize leverage, when appropriate and necessary, and proceeds from land transactions, sales of income properties, the disposition or payoffs on our commercial loan investments, and certain transactions in our subsurface interests, to acquire income properties. We may also acquire or originate commercial loan investments, invest in securities of real estate companies, or make other shorter-term investments. Our targeted investment classes may include the following:

· Single-tenant retail and office, double or triple net leased, properties in major metropolitan areas and growth markets;

· Multi-tenant office and retail properties in major metropolitan areas and growth markets, typically stabilized;

· Purchase or origination of ground leases;

· Self-developed properties on Company owned land including select office, flex, industrial, and retail;

· Joint venture development using Company owned land;

· Origination or purchase of commercial loan investments of loans with terms of 1-10 years with strong risk-adjusted yields with property types to include hotel, office, retail, land and industrial;

· Select regional area investments using Company market knowledge and expertise to earn strong risk-adjusted yields; and

· Real estate related investment securities, including commercial mortgage backed securities, preferred or common stock, and corporate bonds.

59

CRITICAL ACCOUNTING POLICIES

The consolidated financial statements are prepared in conformity with United States generally accepted accounting principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses. Actual results could differ from those estimates.

Our significant accounting policies are described in the notes to the consolidated financial statements included in our Annual Report on Form 10-K for the year-ended December 31, 2017. Judgments and estimates of uncertainties are required in applying our accounting policies in many areas. During the six months ended June 30, 2018, there have been no material changes to the critical accounting policies affecting the application of those accounting policies as noted in our Annual Report on Form 10-K for the year ended December 31, 2017.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

The principal market risk (i.e. the risk of loss arising from adverse changes in market rates and prices), to which we are exposed is interest rate risk, relating to our debt. We may utilize overnight sweep accounts and short-term investments as a means to minimize the interest rate risk. We do not believe that interest rate risk related to cash equivalents and short-term investments, if any, is material due to the nature of the investments.

We are primarily exposed to interest rate risk relating to our own debt in connection with our credit facility, as this facility carries a variable rate of interest. Our borrowings on our $150.0 million revolving credit facility bear a variable rate of interest based on the 30-day LIBOR plus a rate of between 150 basis points and 220 basis points based on our level of borrowing as a percentage of our total asset value. As of June 30, 2018, the outstanding balance on our credit facility was approximately $50.7 million. A hypothetical change in the interest rate of 100 basis points (i.e., 1%) would affect our financial position, results of operations, and cash flows by approximately $507,000. The $25.0 million mortgage loan which closed on April 15, 2016, bears a variable rate of interest based on the 30-day LIBOR plus a rate of 190 basis points. The interest rate for this mortgage loan has been fixed through the use of an interest rate swap that fixed the rate at 3.17%. By virtue of fixing the variable rate, our exposure to changes in interest rates is minimal but for the impact on Other Comprehensive Income. Management’s objective is to limit the impact of interest rate changes on earnings and cash flows and to manage our overall borrowing costs.

ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, an evaluation, as required by Rules 13a-15 and 15d-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), was carried out under the supervision and with the participation of the Company’s management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act). Based on that evaluation, our CEO and CFO have concluded that the design and operation of the Company’s disclosure controls and procedures were effective as of June 30, 2018, to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and to provide reasonable assurance that information required to be disclosed by the Company in such reports is accumulated and communicated to the Company’s management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. There were no changes in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) or 15d-15(f) under the Exchange Act) during the six months ended June 30, 2018, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, the Company may be a party to certain legal proceedings, incidental to the normal course of its business. While the outcome of the legal proceedings cannot be predicted with certainty, the Company does not expect that these proceedings will have a material effect upon our financial condition or results of operations.

60

On November 21, 2011, the Company, Indigo Mallard Creek LLC and Indigo Development LLC, as owners of the property leased to Harris Teeter, Inc. (“Harris Teeter”) in Charlotte, North Carolina, were served with pleadings filed in the General Court of Justice, Superior Court Division for Mecklenburg County, North Carolina, for a highway condemnation action involving this property. The proposed road modifications would impact access to the property. The Company does not believe the road modifications provided a basis for Harris Teeter to terminate the Lease. Regardless, in January 2013, the North Carolina Department of Transportation (“NCDOT”) proposed to redesign the road modifications to keep the all access intersection open for ingress with no change to the planned limitation on egress to the right-in/right-out only. Additionally, NCDOT and the City of Charlotte proposed to build and maintain a new access road/point into the property. Construction has begun and is not expected to be completed before mid-2018 to 2019. Harris Teeter has expressed satisfaction with the redesigned project and indicated that it will not attempt to terminate its lease if this project is built as currently redesigned. Because the redesigned project will not be completed until mid-2018 to 2019, the condemnation case has been placed in administrative closure. As a result, the trial and mediation will not likely be scheduled until requested by the parties, most likely in 2019.

On April 5, 2018, a complaint was filed in the United States District Court for the Eastern District of New York (the “Complaint”) which alleged that certain aspects of Proposal 4 (the “Equity Plan Proposal”) contained in the Company’s Notice of Annual Meeting of Shareholders and 2018 Proxy Statement filed with the SEC on March 12, 2018 (the “2018 Proxy Statement”) did not comply with the disclosure requirements for proxy statements pursuant to SEC regulations. The Complaint alleged that the Equity Plan Proposal did not state the number of participants, employees, and nonemployee directors of the Company and its subsidiaries who may be eligible to participate in the Company’s equity incentive plan (the “CTO Equity Plan”). The Complaint sought injunctive relief and an award of attorney’s fees and expenses. While the Company believes the 2018 Proxy Statement was compliant with applicable SEC disclosure rules and that the Complaint is without merit, the Company voluntarily made a supplemental disclosure in its additional proxy materials reiterating that the Company currently has 14 employees and 7 nonemployee directors, and that the Company’s subsidiaries have no employees, and therefore the total number of persons currently eligible to receive equity awards under the CTO Equity Plan is 21. On July 2, 2018, the Company paid an immaterial settlement amount associated with the legal fees of the plaintiff and the Complaint was dismissed.

ITEM 1A. RISK FACTORS

Certain statements contained in this report (other than statements of historical fact) are forward-looking statements. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. Forward-looking statements are made based upon management’s expectations and beliefs concerning future developments and their potential effect upon the Company.

There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management.

We wish to caution readers that the assumptions, which form the basis for forward-looking statements with respect to or that may impact earnings for the year-ended December 31, 2018, and thereafter, include many factors that are beyond the Company’s ability to control or estimate precisely. These risks and uncertainties include, but are not limited to, the strength of the real estate market in Daytona Beach and Volusia County, Florida; the impact of a prolonged recession or downturn in economic conditions; our ability to successfully execute acquisition or development strategies; any loss of key management personnel; changes in local, regional, and national economic conditions affecting the real estate development business and income properties; the impact of environmental and land use regulations generally and on certain land sale transactions specifically; extreme or severe weather conditions; the impact of competitive real estate activity; variability in quarterly results due to the unpredictable timing of land transactions; the loss of any major income property tenants; the timing of land sale transactions; and the availability of capital. These risks and uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements.

61

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. There have been no material changes to those risk factors. The risks described in the Annual Report on Form 10-K are not the only risks facing the Company. Additional risks and uncertainties not currently known to the Company or that the Company currently deems to be immaterial also may materially adversely affect the Company.

While we periodically reassess material trends and uncertainties affecting our results of operations and financial condition, we do not intend to review or revise any particular forward-looking statement referenced herein in light of future events. The following risk factor has been identified as it relates to the Investment Act of 1940:

Certain of the Company’s shareholders are registered investment companies under the Investment Company Act of 1940 (the “1940 Act”).  Registered investment companies that beneficially own more than 10% of the Company’s shares are deemed affiliates of the Company for various purposes under the 1940 Act and the Securities Act of 1933 (the “1933 Act”). Affiliate status under the 1933 Act limits a shareholder’s ability to sell its shares in market transactions, and also limits its ability to sell its shares in private transactions, as the shares acquired by the purchasers would be “restricted stock” under the 1933 Act, which would limit the purchasers’ ability to sell their shares. Affiliate status under the 1940 Act also may restrict a shareholder’s ability sell its shares to the Company. As a result, substantial sales of shares by an affiliated shareholder that wishes to liquidate its position may have to be made to third parties, which may adversely impact the price of our shares and, as a consequence, our ability to raise equity capital. Our largest group of shareholders, Wintergreen Advisers, LLC, an institutional investment advisory firm (“Wintergreen Advisers”), and the investment vehicles Wintergreen Advisers manages including Wintergreen Fund (NYSE: WGRNX), a public mutual fund (the “Fund”) and other investment vehicles (collectively “Wintergreen”), beneficially owns more than 10% of the outstanding common stock of the Company, and consequently the Wintergreen entities may be deemed “affiliates” of the Company under the 1933 Act. Their affiliate status would limit Wintergreen’s ability to sell their shares in market transactions, and also limit their ability to sell their shares in private transactions, as the shares acquired by the purchasers would be “restricted stock” under the 1933 Act, which would limit the purchasers’ ability to sell their acquired shares. Certain of our shareholders, including the Fund, that are registered investment companies under the 1940 Act also may be considered affiliates of the Company for purposes of the 1940 Act, which, among other things, would restrict the Company’s ability to purchase shares from those shareholders. If a shareholder that is subject to the restrictions described above wishes to liquidate its position in the Company, it may be required to sell its shares on the market, within limits imposed by the 1933 Act, or in an offering registered under the 1933 Act, or in private transactions. Any substantial sales of the Company’s shares by the Wintergreen entities or other significant shareholders could have an adverse impact on the trading price of the Company’s stock, which may adversely impact our ability to raise capital through equity financing and, which may adversely impact our ability to execute our business plan.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no unregistered sales of equity securities during the six months ended June 30, 2018, which were not previously reported.

The following share repurchases were made during the quarter ended June 30, 2018:

	TotalNumber of Shares Purchas	Average Price Paid per Share		Total Number of Shares Purchased as a Part of Publicly Announced Plans or Programs (1)	Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Plans or Programs (1)
4/1/2018 - 4/30/2018	—	$	—	—	$	5,387,591
5/1/2018 - 5/31/2018	—		—	—		5,387,591
6/1/2018 - 6/30/2018	36,804		59.57	36,804		3,195,147
Total	36,804	$	59.57	36,804	$	3,195,147

(1)In the first quarter of 2017, the Company announced a $10 million stock repurchase program (the $10 Million Repurchase Program”) under which approximately $4.6 million of the Company’s stock had been repurchased as of December 31, 2017.

62

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

Not Applicable

63

ITEM 6. EXHIBITS

(a) Exhibits:

Exhibit 31.1	Certification filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 31.2	Certification filed pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
Exhibit 32.1	Certification furnished pursuant to 18 U.S.C. Section 1350, as Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.2	Certification furnished pursuant to 18 U.S.C. Section 1350, as Adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 101.INS	XBRL Instance Document
Exhibit 101.SCH	XBRL Taxonomy Extension Schema Document
Exhibit 101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
Exhibit 101.DEF	XBRL Taxonomy Definition Linkbase Document
Exhibit 101.LAB	XBRL Taxonomy Extension Label Linkbase Document
Exhibit 101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

64

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CONSOLIDATED-TOMOKA LAND CO.
	(Registrant)
August 1, 2018	By:	/s/ John P. Albright
		John P. Albright President and Chief Executive Officer (Principal Executive Officer)
August 1, 2018	By:	/s/ Mark E. Patten
		Mark E. Patten, Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

65

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, John P. Albright, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Consolidated-Tomoka Land Co.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 1, 2018

By:	/s/ John P. Albright
	John P. Albright
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Mark E. Patten, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Consolidated-Tomoka Land Co.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 1, 2018

By:	/s/ Mark E. Patten
	Mark E. Patten
	Senior Vice President Chief Financial Officer
	(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Consolidated-Tomoka Land Co. (the “Company”) on Form 10-Q for the period ended June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, John P. Albright, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 1, 2018

By:	/s/ John P. Albright
	John P. Albright
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Consolidated-Tomoka Land Co. (the “Company”) on Form 10-Q for the period ended June 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Mark E. Patten, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 1, 2018

By:	/s/ Mark E. Patten
	Mark E. Patten
	Senior Vice President Chief Financial Officer
	(Principal Financial and Accounting Officer)

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 19, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	CONSOLIDATED TOMOKA LAND CO
Entity Central Index Key	0000023795
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		5,553,605
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Property, Plant, and Equipment:
Income Properties, Land, Buildings, and Improvements	$ 396,259,302	$ 358,130,350
Golf Buildings, Improvements, and Equipment	6,640,581	6,617,396
Other Furnishings and Equipment	726,380	715,042
Construction in Progress	581,611	6,005,397
Total Property, Plant, and Equipment	404,207,874	371,468,185
Less, Accumulated Depreciation and Amortization	(25,840,495)	(23,779,780)
Property, Plant, and Equipment - Net	378,367,379	347,688,405
Land and Development Costs	31,371,995	39,477,697
Intangible Lease Assets - Net	38,606,046	38,758,059
Investment in Joint Venture	6,701,017
Impact Fee and Mitigation Credits	725,236	1,125,269
Commercial Loan Investments	2,994,916	11,925,699
Cash and Cash Equivalents	4,312,324	6,559,409
Restricted Cash	2,419,686	6,508,131
Refundable Income Taxes	1,075,662	1,116,580
Other Assets	13,975,385	12,971,129
Total Assets	480,549,646	466,130,378
Liabilities:
Accounts Payable	1,745,714	1,880,516
Accrued and Other Liabilities	7,838,466	10,160,526
Deferred Revenue	6,868,665	2,030,459
Intangible Lease Liabilities - Net	29,139,535	29,770,441
Deferred Income Taxes - Net	50,603,916	42,293,864
Long-Term Debt	177,133,608	195,816,364
Total Liabilities	273,329,904	281,952,170
Commitments and Contingencies - See Note 18
Shareholders' Equity:
Common Stock – 25,000,000 shares authorized; $1 par value, 6,042,966 shares issued and 5,559,507 shares outstanding at June 30, 2018; 6,030,990 shares issued and 5,584,335 shares outstanding at December 31, 2017	5,984,747	5,963,850
Treasury Stock – 483,459 shares at June 30, 2018 and 446,655 shares at December 31, 2017	(24,700,205)	(22,507,760)
Additional Paid-In Capital	23,228,788	22,735,228
Retained Earnings	202,024,986	177,614,274
Accumulated Other Comprehensive Income	681,426	372,616
Total Shareholders' Equity	207,219,742	184,178,208
Total Liabilities and Shareholders’ Equity	$ 480,549,646	$ 466,130,378

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Common Stock
Common Stock, shares authorized	25,000,000	25,000,000
Common Stock, par value (in dollars per share)	$ 1	$ 1
Common Stock, shares issued	6,042,966	6,030,990
Common Stock, shares outstanding	5,559,507	5,584,335
Treasury Stock
Treasury Stock, shares held	483,459	446,655

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues
Revenues	$ 13,833,185	$ 22,837,783	$ 38,684,784	$ 61,551,067
Direct Cost of Revenues
Total Direct Cost of Revenues	(4,435,384)	(8,854,499)	(9,227,072)	(20,962,176)
General and Administrative Expenses	(2,429,181)	(2,727,187)	(5,252,729)	(5,947,334)
Depreciation and Amortization	(3,854,938)	(3,215,690)	(7,755,317)	(5,978,265)
Total Operating Expenses	(10,719,503)	(14,797,376)	(22,235,118)	(32,887,775)
Gain on Disposition of Assets	18,384,808		22,035,666
Land Lease Income				2,226,526
Other Gains and Income	18,384,808		22,035,666	2,226,526
Total Operating Income	21,498,490	8,040,407	38,485,332	30,889,818
Investment Income	11,892	8,524	24,204	17,707
Interest Expense	(2,537,301)	(2,144,176)	(5,098,766)	(4,206,067)
Income Before Income Tax Expense	18,973,081	5,904,755	33,410,770	26,701,458
Income Tax Expense	(4,810,173)	(2,225,847)	(8,335,563)	(10,276,158)
Net Income	$ 14,162,908	$ 3,678,908	$ 25,075,207	$ 16,425,300
Per Share Information- See Note 10:
Basic Net Income per Share (in dollars per share)	$ 2.56	$ 0.67	$ 4.53	$ 2.95
Diluted Net Income per Share (in dollars per share)	2.56	0.66	4.51	2.94
Dividends Declared (in dollars per share)	0.06	0.04	0.12	0.08
Dividends Paid (in dollars per share)	$ 0.06	$ 0.04	$ 0.12	$ 0.08
Income Properties
Revenues
Revenues	$ 9,781,299	$ 7,565,007	$ 18,987,026	$ 14,638,247
Direct Cost of Revenues
Total Direct Cost of Revenues	(2,034,889)	(1,629,515)	(3,903,918)	(3,041,228)
Depreciation and Amortization	(3,746,762)	(3,108,494)	(7,534,177)	(5,794,806)
Commercial Loan Investments
Revenues
Revenues	273,467	553,159	574,466	1,089,648
Real Estate Operations
Revenues
Revenues	2,484,314	13,257,355	16,463,644	42,731,815
Direct Cost of Revenues
Total Direct Cost of Revenues	(870,270)	(5,792,529)	(2,405,932)	(14,949,378)
Golf Operations
Revenues
Revenues	1,282,918	1,383,513	2,637,274	2,858,457
Direct Cost of Revenues
Total Direct Cost of Revenues	(1,525,053)	(1,401,919)	(2,906,878)	(2,900,597)
Depreciation and Amortization	(99,393)	(95,323)	(202,949)	(160,690)
Agriculture and Other Income
Revenues
Revenues	11,187	78,749	22,374	232,900
Direct Cost of Revenues
Total Direct Cost of Revenues	(5,172)	(30,536)	(10,344)	(70,973)
Depreciation and Amortization	$ (8,783)	$ (11,873)	$ (18,191)	$ (22,769)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net Income	$ 14,162,908	$ 3,678,908	$ 25,075,207	$ 16,425,300
Other Comprehensive Income
Cash Flow Hedging Derivative - Interest Rate Swap (Net of Income Tax of $17,227 and $(35,818) for the three months ended June 30, 2018 and 2017, respectively, and Net of Income Tax of $77,593 and $(6,268) for the six months ended June 30, 2018 and 2017, respectively)	50,744	(57,036)	308,810	(9,980)
Total Other Comprehensive Income, Net of Income Tax	50,744	(57,036)	308,810	(9,980)
Total Comprehensive Income	$ 14,213,652	$ 3,621,872	$ 25,384,017	$ 16,415,320

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Cash Flow Hedging Derivative - Interest Rate Swap, Income Tax	$ 17,227	$ (35,818)	$ 77,593	$ (6,268)

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - 6 months ended Jun. 30, 2018 - USD ($)	Common Stock	Treasury Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Dec. 31, 2017	$ 5,963,850	$ (22,507,760)	$ 22,735,228	$ 177,614,274	$ 372,616	$ 184,178,208
Increase (decrease) in shareholders' equity
Net Income				25,075,207		25,075,207
Stock Repurchase		(2,192,445)				(2,192,445)
Vested Restricted Stock	19,065		(517,439)			(498,374)
Stock Issuance	1,832		113,674			115,506
Stock Compensation Expense from Restricted Stock Grants and Equity Classified Stock Options			897,325			897,325
Cash Dividends ($0.12 per share)				(664,495)		(664,495)
Other Comprehensive Income, Net of Income Tax					308,810	308,810
Balance at Jun. 30, 2018	$ 5,984,747	$ (24,700,205)	$ 23,228,788	$ 202,024,986	$ 681,426	$ 207,219,742

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Common Stock
Cash Dividends (in dollars per share)	$ 0.06	$ 0.04	$ 0.12	$ 0.08

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Cash Flow from Operating Activities:
Net Income			$ 25,075,207	$ 16,425,300
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization	$ 3,854,938	$ 3,215,690	7,755,317	5,978,265
Amortization of Intangible Liabilities to Income Property Revenue	(600,000)	(550,000)	(1,179,345)	(1,081,262)
Loan Cost Amortization	137,000	112,000	286,639	224,987
Amortization of Discount on Convertible Debt	316,000	296,000	626,562	587,828
Gain on Disposition of Property, Plant, and Equipment and Intangible Assets	(18,384,808)		(22,035,666)
Impairment Charges			0	0
Accretion of Commercial Loan Origination Fees			(29,684)
Deferred Income Taxes			8,618,862	11,042,346
Non-Cash Compensation			897,325	743,164
Decrease (Increase) in Assets:
Refundable Income Taxes			40,918	(255,568)
Land and Development Costs			(2,690,531)	11,741,518
Impact Fees and Mitigation Credits			400,033	807,000
Other Assets			(1,261,751)	1,144,668
Increase (Decrease) in Liabilities:
Accounts Payable			(134,802)	(159,045)
Accrued and Other Liabilities			(2,622,060)	(1,632,249)
Deferred Revenue			515,483	(271,800)
Net Cash Provided By Operating Activities			14,262,507	45,295,152
Cash Flow from Investing Activities:
Acquisition of Property, Plant, and Equipment and Intangible Lease Assets and Liabilities			(28,908,410)	(46,621,871)
Acquisition of Land			(2,141,853)
Cash Contribution for Interest in Joint Venture			(2,050,001)
Proceeds from Disposition of Property, Plant, and Equipment			26,377,525
Principal Payments Received on Commercial Loan Investments			8,960,467
Net Cash Provided By (Used In) Investing Activities			2,237,728	(46,621,871)
Cash Flow from Financing Activities:
Proceeds from Long-Term Debt			36,300,000	19,500,000
Payments on Long-Term Debt			(55,667,484)	(17,800,000)
Cash Paid for Loan Fees			(228,473)	(48,095)
Cash Proceeds from Exercise of Stock Options and Stock Issuance			115,506	141,184
Cash Used to Purchase Common Stock			(2,192,445)	(5,512,960)
Cash Paid for Vesting of Restricted Stock			(498,374)	(261,621)
Dividends Paid			(664,495)	(446,070)
Net Cash Used In Financing Activities			(22,835,765)	(4,427,562)
Net Decrease in Cash			(6,335,530)	(5,754,281)
Cash, Beginning of Year			13,067,540	17,635,031
Cash, End of Period	6,732,010	11,880,750	6,732,010	11,880,750
Reconciliation of Cash to the Consolidated Balance Sheets:
Cash and Cash Equivalents	4,312,324	7,153,369	4,312,324	7,153,369
Restricted Cash	2,419,686	4,727,381	2,419,686	4,727,381
Total Cash as of June 30, 2018 and 2017, respectively	$ 6,732,010	$ 11,880,750	$ 13,067,540	$ 17,635,031

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	6 Months Ended
	Jun. 30, 2018 USD ($) $ / item	Jun. 30, 2017 USD ($)
Supplemental Disclosure of Cash Flows:
Income taxes refunded	$ 18,000	$ 531,000
Interest paid	4,190,000	3,438,000
Interest capitalized	0	0
Accrued and Other Liabilities	(2,622,060)	(1,632,249)
Land and Development Costs	$ (2,690,531)	11,741,518
Supplemental disclosure of investing and financing activities
Annual surcharge, per round of golf played | $ / item	1
Minimum annual per round surcharge	$ 70,000
Maximum aggregate amount of per round surcharge	700,000
Contingent consideration on Golf Course Land Purchase reflected as an increase in increase in Golf Buildings, Improvements, and Equipment and also as an increase in Accrued and Other Liabilities	700,000
Aspen, Colorado
Supplemental disclosure of investing and financing activities
Tenant contribution	1,500,000
Florida
Supplemental disclosure of investing and financing activities
Tenant contribution	1,900,000
Surface land over subsurface interests
Supplemental Disclosure of Cash Flows:
Gain on Sale	435,000
Real Estate Operations
Supplemental disclosure of investing and financing activities
Purchase price		40,000,000
Single-tenant | Aspen, Colorado
Supplemental disclosure of investing and financing activities
Purchase price	28,000,000
Land Sales
Supplemental Disclosure of Cash Flows:
Gain on Sale	13,004,000	$ 26,910,000
Land Sales | Mitigation Bank West of Interstate Ninety Five
Supplemental Disclosure of Cash Flows:
Gain on Sale	18,400,000
Gain on Sale, noncash	5,100,000
Investment in Joint Venture	6,700,000
Accrued and Other Liabilities	300,000
Land and Development Costs	$ 1,300,000

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DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS

6 Months Ended

Jun. 30, 2018

DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS

DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS

NOTE 1. DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS

Description of Business

The terms “us,” “we,” “our,” and “the Company” as used in this report refer to Consolidated-Tomoka Land Co. together with our consolidated subsidiaries.

We are a diversified real estate operating company. We own and manage thirty-six commercial real estate properties in thirteen states in the United States. As of June 30, 2018, we owned twenty-nine single-tenant and seven multi-tenant income-producing properties with approximately 2.1 million square feet of gross leasable space. We also own and manage a portfolio of undeveloped land totaling approximately 5,500 acres in Daytona Beach, Florida. As of June 30, 2018, we have one commercial loan investment, a fixed-rate first mortgage loan. We have golf operations which consist of the LPGA International Golf Club, also located in Daytona Beach, which is managed by a third party. We also lease some of our land for eighteen billboards, have agricultural operations that are managed by a third party, which consist of leasing land for hay production, timber harvesting, and hunting leases, and own and manage Subsurface Interests (hereinafter defined). The results of our agricultural and subsurface leasing operations are included in Agriculture and Other Income and Real Estate Operations, respectively, in our consolidated statements of operations.

Interim Financial Information

The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited consolidated financial statements do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, which provides a more complete understanding of the Company’s accounting policies, financial position, operating results, business properties, and other matters. The unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the financial position of the Company and the results of operations for the interim periods.

The results of operations for the six months ended June 30, 2018 are not necessarily indicative of results to be expected for the year ending December 31, 2018.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and other entities in which we have a controlling interest. Any real estate entities or properties included in the consolidated financial statements have been consolidated only for the periods that such entities or properties were owned or under control by us. All inter-company balances and transactions have been eliminated in the consolidated financial statements.

Use of Estimates in Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which amends its guidance on the recognition and reporting of revenue from contracts with customers. In April 2016, the FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers was issued. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company completed its evaluation of the provisions during the year ended December 31, 2017 and determined there was no impact on the Company’s revenue recognition within the consolidated financial statements. All required disclosures relating to FASB ASC Topic 606 have been implemented herein as required by the standard. The Company adopted FASB ASC Topic 606 effective January 1, 2018 utilizing the modified retrospective method.

In January 2016, the FASB issued ASU 2016-01, relating to the recognition and measurement of financial assets and financial liabilities. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2016-01 effective January 1, 2018 and determined there was no material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, which requires entities to recognize assets and liabilities that arise from financing and operating leases and to classify those finance and operating lease payments in the financing or operating sections, respectively, of the statement of cash flows pursuant to FASB ASC Topic 842, Leases. The amendments in this update are effective for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating FASB ASC Topic 842, Leases to determine the potential impact, if any, the adoption will have on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, which clarifies the appropriate classification of certain cash receipts and payments in the statement of cash flows. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2016-15 effective January 1, 2018 and determined there was no material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, which addresses diversity in the classification and presentation of changes in restricted cash in the statement of cash flows as operating, investing, or financing activities. The Company adopted ASU 2016-18 effective January 1, 2018 and has classified the changes in restricted cash between operating, investing, and financing in the consolidated statements of cash flows as applicable per the new guidance. 

In February 2018, the FASB issued ASU 2018-02, which amends the guidance allowing for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this update are effective for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the provisions to determine the potential impact, if any, the adoption will have on its consolidated financial statements. 

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, bank demand accounts, and money market accounts having original maturities of 90 days or less. The Company’s bank balances as of June 30, 2018 include certain amounts over the Federal Deposit Insurance Corporation limits. 

Restricted Cash

Restricted cash totaled approximately $2.4 million at June 30, 2018 of which approximately $1.2 million is being held in three separate escrow accounts related to three separate land transactions which closed in December 2013, February 2017, and March 2018; approximately $127,000 is being held in a reserve for interest and property taxes for the $3.0 million first mortgage loan investment originated in July 2017; approximately $185,000 is being held in a capital replacement reserve account in connection with our financing of six income properties with Wells Fargo Bank, NA (“Wells Fargo”); and approximately $918,000 is being held in a leasing reserve in connection with our acquisition of the property in Aspen, Colorado in February 2018.

Derivative Financial Instruments and Hedging Activity

Interest Rate Swap. In conjunction with the variable-rate mortgage loan secured by our property located in Raleigh, North Carolina leased to Wells Fargo, the Company entered into an interest rate swap to fix the interest rate (the “Interest Rate Swap”). The Company accounts for its cash flow hedging derivative in accordance with FASB ASC Topic 815-20, Derivatives and Hedging. Depending upon the hedge’s value at each balance sheet date, the derivative is included in either Other Assets or Accrued and Other Liabilities on the consolidated balance sheet at its fair value. On the date the Interest Rate Swap was entered into, the Company designated the derivative as a hedge of the variability of cash flows to be paid related to the recognized long-term debt liability.

The Company formally documented the relationship between the hedging instrument and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. At the hedge’s inception, the Company formally assessed whether the derivative that is used in hedging the transaction is highly effective in offsetting changes in cash flows of the hedged item, and we will continue to do so on an ongoing basis. As the terms of the Interest Rate Swap and the associated debt are identical, the Interest Rate Swap qualifies for the shortcut method, therefore, it is assumed that there is no hedge ineffectiveness throughout the entire term of the Interest Rate Swap.

Changes in fair value of the Interest Rate Swap that are highly effective and designated and qualified as a cash-flow hedge are recorded in other comprehensive income and loss, until earnings are affected by the variability in cash flows of the designated hedged item.

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial assets and liabilities including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued and other liabilities at June 30, 2018 and December 31, 2017, approximate fair value because of the short maturity of these instruments. The carrying amount of the Company’s investments in variable rate commercial loans approximates fair value at December 31, 2017, since the floating rates of the loans reasonably approximate current market rates for notes with similar risks and maturities. There were no investments in variable rate commercial loans as of June 30, 2018. The carrying value of the Company’s credit facility approximates current market rates for revolving credit arrangements with similar risks and maturities. The face value of the Company’s fixed rate commercial loan investment, mortgage notes, and convertible debt is measured at fair value based on current market rates for financial instruments with similar risks and maturities. See Note 7, “Fair Value of Financial Instruments.”

Fair Value Measurements

The Company’s estimates of fair value of financial and non-financial assets and liabilities is based on the framework established by GAAP. The framework specifies a hierarchy of valuation inputs which was established to increase consistency, clarity and comparability in fair value measurements and related disclosures. GAAP describes a fair value hierarchy based upon three levels of inputs that may be used to measure fair value, two of which are considered observable and one that is considered unobservable. The following describes the three levels:

· Level 1 – Valuation is based upon quoted prices in active markets for identical assets or liabilities.

· Level 2 – Valuation is based upon inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

· Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include option pricing models, discounted cash flow models and similar techniques.

Classification of Commercial Loan Investments

Loans held for investment are stated at the principal amount outstanding and include the unamortized deferred loan fees offset by any applicable unaccreted purchase discounts and origination fees, if applicable. Loans held for sale are classified separately and stated at the lower of cost or fair value once a decision has been made to sell loans not previously for sale.

Commercial Loan Investment Impairment

For each of the Company’s commercial loans held for investment, the Company evaluates the performance of the collateral property and the financial and operating capabilities of the borrower/guarantor, in part to assess whether any deterioration in the credit has occurred, and for possible impairment of the loan. Impairment would reflect the Company’s determination that it is probable that all amounts due according to the contractual terms of the loan would not be collected. Impairment is measured based on the present value of the expected future cash flows from the loan discounted at the effective rate of the loan or the fair value of the collateral. Upon measurement of impairment, the Company would record an allowance to reduce the carrying value of the loan with a corresponding recognition of loss in the results of operations. Significant exercise of judgment is required in determining impairment, including assumptions regarding the estimate of expected future cash flows, collectability of the loan, the value of the underlying collateral and other provisions including guarantees. The Company has determined that, as of June 30, 2018 and December 31, 2017, no allowance for impairment was required.

Recognition of Interest Income from Commercial Loan Investments

Interest income on commercial loan investments includes interest payments made by the borrower and the accretion of purchase discounts and loan origination fees, offset by the amortization of loan costs. Interest payments are accrued based on the actual coupon rate and the outstanding principal balance, and purchase discounts and loan origination fees are accreted into income using the effective yield method, adjusted for prepayments.

Impact Fees and Mitigation Credits

Impact fees and mitigation credits are stated at historical cost. As these assets are sold, the related revenues and cost basis are reported as revenues from, and direct costs of, real estate operations, respectively, in the consolidated statements of operations.

Accounts Receivable

Accounts receivable related to income properties, which are classified in other assets on the consolidated balance sheets, primarily consist of tenant reimbursable expenses. Receivables related to tenant reimbursable expenses totaled approximately $1.3 million and $895,000 as of June 30, 2018 and December 31, 2017, respectively.

Accounts receivable related to real estate operations, which are classified in other assets on the consolidated balance sheets, totaled approximately $2.1 million and $2.2 million as of as of June 30, 2018 and December 31, 2017, respectively. As more fully described in Note 10, “Other Assets,” these accounts receivable are primarily related to the reimbursement of certain infrastructure costs completed by the Company in conjunction with two land sale transactions that closed during the fourth quarter of 2015.

Trade accounts receivable primarily consist of receivables related to the golf operations, which are classified in other assets on the consolidated balance sheets. Trade accounts receivable related to golf operations, which primarily consist of amounts due from members or from private events, totaled approximately $287,000 and $349,000 as of June 30, 2018 and December 31, 2017, respectively.  

The collectability of the aforementioned receivables is determined based on the aging of the receivable and a review of the specifically identified accounts using judgments. As of June 30, 2018 and December 31, 2017, no allowance for doubtful accounts was required.

Purchase Accounting for Acquisitions of Real Estate Subject to a Lease

In accordance with the FASB guidance on business combinations, the fair value of the real estate acquired with in-place leases is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their relative fair values.

The fair value of the tangible assets of an acquired leased property is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, building and tenant improvements based on the determination of the fair values of these assets.

In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as other assets or liabilities based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease, including the probability of renewal periods. The capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. The capitalized below-market lease values are amortized as an increase to rental income over the initial term unless the Company believes that it is likely that the tenant will renew the option whereby the Company amortizes the value attributable to the renewal over the renewal period.

The aggregate value of other acquired intangible assets, consisting of in-place leases, is measured by the excess of (i) the purchase price paid for a property after adjusting existing in-place leases to market rental rates over (ii) the estimated fair value of the property as-if-vacant, determined as set forth above. The value of in-place leases exclusive of the value of above-market and below-market in-place leases is amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off. The value of tenant relationships is reviewed on individual transactions to determine if future value was derived from the acquisition.

In January 2017, the FASB issued ASU 2017-01, Business Combinations which clarified the definition of a business. Pursuant to ASU 2017-01, the acquisition of an income property subject to a lease no longer qualifies as a business combination, but rather an asset acquisition, accordingly acquisition costs have been capitalized. 

Sales of Real Estate

Gains and losses on sales of real estate are accounted for as required by FASB ASC Topic 606, Revenue from Contracts with Customers. The Company recognizes revenue from the sales of real estate when the Company transfers the promised goods and/or services in the contract based on the transaction price allocated to the performance obligations within the contract. As market information becomes available, real estate cost basis is analyzed and recorded at the lower of cost or market.

Income Taxes

The Company uses the asset and liability method to account for income taxes. Deferred income taxes result primarily from the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. See Note 18, “Income Taxes.” In June 2006, the FASB issued additional guidance, which clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements included in income taxes. The interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The interpretation also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. In accordance with FASB guidance included in income taxes, the Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. Additionally, the Company believes that its accruals for tax liabilities are adequate. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to the FASB guidance.

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REVENUE RECOGNITION

6 Months Ended

Jun. 30, 2018

REVENUE RECOGNITION

REVENUE RECOGNITION

NOTE 2. REVENUE RECOGNITION

The Company implemented FASB ASC Topic 606, Revenue from Contracts with Customers effective January 1, 2018 utilizing the modified retrospective method.

The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the three months ended June 30, 2018:

				Interest Income
		Income		from Commercial		Real Estate		Golf		Agriculture and		Total
		Properties		Loan Investments		Operations		Operations		Other Income		Revenues
		($000's)		($000's)		($000's)		($000's)		($000's)		($000's)
Major Good / Service:
	Lease Revenue - Base Rent	$	7,365	$	—	$	—	$	—	$	11	$	7,376
	Lease Revenue - CAM		891		—		—		—		—		891
	Lease Revenue - Reimbursements		801		—		—		—		—		801
	Lease Revenue - Billboards		70		—		—		—		—		70
	Above / Below Market Lease Accretion		600		—		—		—		—		600
	Contributed Leased Assets Accretion		85		—		—		—		—		85
	Lease Incentive Amortization		(76)		—		—		—		—		(76)
	Interest from Commercial Loan Investments		—		274		—		—		—		274
	Land Sale Revenue		—		—		1,734		—		—		1,734
	Impact Fee and Mitigation Credit Sales		—		—		470		—		—		470
	Subsurface Lease Revenue		—		—		201		—		—		201
	Subsurface Revenue - Other		—		—		79		—		—		79
	Golf Operations		—		—		—		1,283		—		1,283
	Interest and Other Revenue		45		—		—		—		—		45
	Total Revenues	$	9,781	$	274	$	2,484	$	1,283	$	11	$	13,833
Timing of Revenue Recognition:
	Asset/Good Transferred at a Point in Time	$	—	$	—	$	2,283	$	1,041	$	—	$	3,324
	Services Transferred Over Time		45		—		—		242		—		287
	Over Lease Term		9,736		—		201		—		11		9,948
	Commercial Loan Investment Related Revenue		—		274		—		—		—		274
	Total Revenues	$	9,781	$	274	$	2,484	$	1,283	$	11	$	13,833

The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the three months ended June 30, 2017:

				Interest Income
		Income		from Commercial		Real Estate		Golf		Agriculture and		Total
		Properties		Loan Investments		Operations		Operations		Other Income		Revenues
		($000's)		($000's)		($000's)		($000's)		($000's)		($000's)
Major Good / Service:
	Lease Revenue - Base Rent	$	6,114	$	—	$	—	$	—	$	11	$	6,125
	Lease Revenue - CAM		466		—		—		—		—		466
	Lease Revenue - Reimbursements		371		—		—		—		—		371
	Lease Revenue - Billboards		65		—		—		—		—		65
	Above / Below Market Lease Accretion		550		—		—		—		—		550
	Interest from Commercial Loan Investments		—		553		—		—		—		553
	Land Sale Revenue		—		—		10,858		—		—		10,858
	Revenue from Reimbursement of Infrastructure Costs		—		—		955		—		—		955
	Impact Fee and Mitigation Credit Sales		—		—		1,222		—		—		1,222
	Subsurface Lease Revenue		—		—		201		—		—		201
	Subsurface Revenue - Other		—		—		21		—		—		21
	Golf Operations		—		—		—		1,384		—		1,384
	Timber Sales Revenue		—		—		—		—		68		68
	Interest and Other Revenue		(1)		—		—		—		—		(1)
	Total Revenues	$	7,565	$	553	$	13,257	$	1,384	$	79	$	22,838
Timing of Revenue Recognition:
	Asset/Good Transferred at a Point in Time	$	—	$	—	$	12,101	$	1,316	$	68	$	13,485
	Services Transferred Over Time		(1)		—		955		68		—		1,022
	Over Lease Term		7,566		—		201		—		11		7,778
	Commercial Loan Investment Related Revenue		—		553		—		—		—		553
	Total Revenues	$	7,565	$	553	$	13,257	$	1,384	$	79	$	22,838

The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the six months ended June 30, 2018:

				Interest Income
		Income		from Commercial		Real Estate		Golf		Agriculture and		Total
		Properties		Loan Investments		Operations		Operations		Other Income		Revenues
		($000's)		($000's)		($000's)		($000's)		($000's)		($000's)
Major Good / Service:
	Lease Revenue - Base Rent	$	14,787	$	—	$	—	$	—	$	22	$	14,809
	Lease Revenue - CAM		1,505		—		—		—		—		1,505
	Lease Revenue - Reimbursements		1,365		—		—		—		—		1,365
	Lease Revenue - Billboards		134		—		—		—		—		134
	Above / Below Market Lease Accretion		1,179		—		—		—		—		1,179
	Contributed Leased Assets Accretion		95		—		—		—		—		95
	Lease Incentive Amortization		(151)		—		—		—		—		(151)
	Interest from Commercial Loan Investments		—		575		—		—		—		575
	Land Sale Revenue		—		—		14,851		—		—		14,851
	Impact Fee and Mitigation Credit Sales		—		—		586		—		—		586
	Subsurface Lease Revenue		—		—		400		—		—		400
	Subsurface Revenue - Other		—		—		626		—		—		626
	Golf Operations		—		—		—		2,638		—		2,638
	Interest and Other Revenue		73		—		—		—		—		73
	Total Revenues	$	18,987	$	575	$	16,463	$	2,638	$	22	$	38,685
Timing of Revenue Recognition:
	Asset/Good Transferred at a Point in Time	$	—	$	—	$	16,063	$	2,136	$	—	$	18,199
	Services Transferred Over Time		73		—		—		502		—		575
	Over Lease Term		18,914		—		400		—		22		19,336
	Commercial Loan Investment Related Revenue		—		575		—		—		—		575
	Total Revenues	$	18,987	$	575	$	16,463	$	2,638	$	22	$	38,685

The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the six months ended June 30, 2017:

				Interest Income
		Income		from Commercial		Real Estate		Golf		Agriculture and		Total
		Properties		Loan Investments		Operations		Operations		Other Income		Revenues
		($000's)		($000's)		($000's)		($000's)		($000's)		($000's)
Major Good / Service:
	Lease Revenue - Base Rent	$	11,668	$	—	$	—	$	—	$	22	$	11,690
	Lease Revenue - CAM		965		—		—		—		—		965
	Lease Revenue - Reimbursements		791		—		—		—		—		791
	Lease Revenue - Billboards		126		—		—		—		—		126
	Above / Below Market Lease Accretion		1,081		—		—		—		—		1,081
	Interest from Commercial Loan Investments		—		1,090		—		—		—		1,090
	Land Sale Revenue		—		—		39,564		—		—		39,564
	Revenue from Reimbursement of Infrastructure Costs		—		—		1,276		—		—		1,276
	Impact Fee and Mitigation Credit Sales		—		—		1,439		—		—		1,439
	Subsurface Lease Revenue		—		—		400		—		—		400
	Subsurface Revenue - Other		—		—		53		—		—		53
	Golf Operations		—		—		—		2,858		—		2,858
	Timber Sales Revenue		—		—		—		—		211		211
	Interest and Other Revenue		7		—		—		—		—		7
	Total Revenues	$	14,638	$	1,090	$	42,732	$	2,858	$	233	$	61,551
Timing of Revenue Recognition:
	Asset/Good Transferred at a Point in Time	$	—	$	—	$	41,056	$	2,647	$	211	$	43,914
	Services Transferred Over Time		7		—		1,276		211		—		1,494
	Over Lease Term		14,631		—		400		—		22		15,053
	Commercial Loan Investment Related Revenue		—		1,090		—		—		—		1,090
	Total Revenues	$	14,638	$	1,090	$	42,732	$	2,858	$	233	$	61,551

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INCOME PROPERTIES

6 Months Ended

Jun. 30, 2018

INCOME PROPERTIES

INCOME PROPERTIES

NOTE 3. INCOME PROPERTIES

During the six months ended June 30, 2018, the Company acquired one single-tenant income property for a purchase price of $28.0 million, or an acquisition cost of approximately $29.0 million including capitalized acquisition costs. Of the total acquisition cost, approximately $12.0 million was allocated to land, approximately $15.0 million was allocated to buildings and improvements, approximately $2.8 million was allocated to intangible assets pertaining to the in-place lease value, leasing fees and above market lease value, and approximately $0.8 million was allocated to intangible liabilities for the below market lease value. The weighted average amortization period for the intangible assets and liabilities was approximately 20.0 years at acquisition. The property acquired during the six months ended June 30, 2018 is described below:

Tenant Description	Tenant Type	Property Location	Date of Acquisition	Property Square-Feet	Property Acres	Purchase Price		Percentage Leased		Remaining Lease Term (in years)
Master Tenant for Commercial Building	Single-Tenant	Aspen, Colorado	02/21/18	19,596	0.18	$	28,000,000		100%		20.0

In conjunction with the closing of the property in Aspen, Colorado, the master tenant contributed approximately $1.5 million of the purchase price, resulting in a net cash investment by the Company of approximately $26.5 million. The $1.5 million purchase price contribution is reflected as deferred revenue and will be accreted into income property rental revenue over the term of the lease.

As more fully described in Note 5, “Land and Subsurface Interests,” in January 2018, construction was completed and the leases commenced on two restaurant properties on the Company’s six-acre beachfront parcel. The tenants, LandShark Bar & Grill and Cocina 214 Restaurant & Bar, both commenced operations in January 2018.

Four income properties were disposed of during the six months ended June 30, 2018. On March 26, 2018, the Company sold its four self-developed, multi-tenant office properties located in Daytona Beach, Florida for approximately $11.4 million (the “Self-Developed Properties Sale”). The sale included the 22,012 square-foot Concierge office building, the 30,720 square-foot Mason Commerce Center comprising two office buildings, and the 15,360 Williamson Business Park office building. The gain on the sale totaled approximately $3.7 million, or approximately $0.49 per share, after tax. The Company utilized the proceeds to fund a portion of the previously acquired income property located near Portland, Oregon leased to Wells Fargo, through a reverse 1031 like-kind exchange structure. As part of the transaction, the Company entered into a lease of its approximately 7,600 square foot office space in Williamson Business Park for approximately 5 years at a market rental rate.

During the six months ended June 30, 2017, the Company acquired three single-tenant income properties and two multi-tenant income properties, for an aggregate purchase price of approximately $40.0 million, or an aggregate acquisition cost of approximately $40.7 million including capitalized acquisition costs. Of the total acquisition cost, approximately $18.0 million was allocated to land, approximately $19.3 million was allocated to buildings and improvements, approximately $4.9 million was allocated to intangible assets pertaining to the in-place lease value, leasing fees and above market lease value, and approximately $1.5 million was allocated to intangible liabilities for the below market lease value. The weighted average amortization period for the intangible assets and liabilities is approximately 9.8 years.

No income properties were disposed of during the six months ended June 30, 2017.

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COMMERCIAL LOAN INVESTMENTS

6 Months Ended

Jun. 30, 2018

COMMERCIAL LOAN INVESTMENTS

COMMERCIAL LOAN INVESTMENTS

NOTE 4. COMMERCIAL LOAN INVESTMENTS

Our investments in commercial loans or similar structured finance investments, such as mezzanine loans or other subordinated debt, have been and are expected to continue to be secured by commercial or residential real estate or the borrower’s pledge of its ownership interest in the entity that owns the real estate. The first mortgage loans we invest in or originate are for commercial real estate located in the United States and its territories, and are current or performing with either a fixed or floating rate. Some of these loans may be syndicated in either a pari-passu or senior/subordinated structure. Commercial first mortgage loans generally provide for a higher recovery rate due to their senior position in the underlying collateral. Commercial mezzanine loans are typically secured by a pledge of the borrower’s equity ownership in the underlying commercial real estate. Unlike a mortgage, a mezzanine loan is not secured by a lien on the property. An investor’s rights in a mezzanine loan are usually governed by an intercreditor agreement that provides holders with the rights to cure defaults and exercise control on certain decisions of any senior debt secured by the same commercial property.

On June 13, 2018, the variable rate B-Note (the “B-Note”) held by the Company and secured by real estate located in Sarasota, Florida matured and was repaid by the borrower. The Company purchased the B-Note in May 2014. The proceeds of approximately $9.0 million were used to pay down the Company’s Credit Facility.

As of June 30, 2018, the Company owned one performing commercial loan investment with an outstanding principal balance of approximately $3.0 million. The loan is secured by real estate located in Daytona Beach Shores, Florida.  

The Company’s commercial loan investment was comprised of the following at June 30, 2018:

	Date of	Maturity	Original Face		Current Face		Carrying
Description	Investment	Date	Amount		Amount		Value		Coupon Rate
First Mortgage – Land Parcel, Daytona Beach Shores, FL	July 2017	August 2018		3,000,000		3,000,000		2,994,916	11.00%

The carrying value of the commercial loan investment portfolio at June 30, 2018 consisted of the following:

	Total
Current Face Amount	$	3,000,000
Unamortized Fees		—
Unaccreted Origination Fees		(5,084)
Total Commercial Loan Investments	$	2,994,916

The Company’s commercial loan investment portfolio was comprised of the following at December 31, 2017:

	Date of	Maturity	Original Face		Current Face		Carrying
Description	Investment	Date	Amount		Amount		Value		Coupon Rate
B-Note – Retail Shopping Center, Sarasota, FL	May 2014	June 2018	$	8,960,467	$	8,960,467	$	8,960,467	30 ‑day LIBOR plus 7.50%
First Mortgage – Land Parcel, Daytona Beach Shores, FL	July 2017	August 2018		3,000,000		3,000,000		2,965,232	11.00%
Total			$	11,960,467	$	11,960,467	$	11,925,699

The carrying value of the commercial loan investment portfolio at December 31, 2017 consisted of the following:

	Total
Current Face Amount	$	11,960,467
Unamortized Fees		—
Unaccreted Origination Fees		(34,768)
Total Commercial Loan Investments	$	11,925,699

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LAND AND SUBSURFACE INTERESTS

6 Months Ended

Jun. 30, 2018

LAND AND SUBSURFACE INTERESTS

LAND AND SUBSURFACE INTERESTS

NOTE 5. LAND AND SUBSURFACE INTERESTS

As of June 30, 2018, the Company owned approximately 5,500 acres of undeveloped land in Daytona Beach, Florida, along six miles of the west and east sides of Interstate 95. Currently, the majority of this land is used for agricultural purposes. As of August 1, 2018, approximately 78% of this acreage, or nearly 4,300 acres, is under contract to be sold. Approximately 1,000 acres of our land holdings are located on the east side of Interstate 95 and are generally well suited for commercial development. Approximately 4,500 acres of our land holdings are located on the west side of Interstate 95 and the majority of this land is generally well suited for residential development. Included in the western land is approximately 1,000 acres, primarily an 850-acre parcel and three smaller parcels, which are located further west of Interstate 95 and a few miles north of Interstate 4 that are generally well suited for industrial purposes.

Real estate operations revenue consisted of the following for the three and six months ended June 30, 2018 and 2017, respectively:

		Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Revenue Description	($000's)		($000's)		($000's)		($000's)
Land Sales Revenue	$	1,734	$	10,858	$	14,851	$	39,564
Revenue from Reimbursement of Infrastructure Costs		—		955		—		1,276
Impact Fee and Mitigation Credit Sales		470		1,222		586		1,439
Subsurface Revenue		280		222		1,026		453
Total Real Estate Operations Revenue	$	2,484	$	13,257	$	16,463	$	42,732

2018 Land Sales. During the six months ended June 30, 2018, the Company completed land transactions representing approximately 2,559 acres of land including: (i) the sale of a 70% interest in the Mitigation Bank (hereinafter defined) that holds approximately 2,492 acres of land for proceeds of $15.3 million and (ii) four land sales totaling approximately 67 acres for aggregate proceeds of approximately $15.7 million, as described below:

					Gross Sales				Gain
			Date of	No. of	Price		Price		on Sale (1)
	Buyer (or Description)	Location	Sale	Acres	($000's)		per Acre		($000's)
1	Buc-ee's	East of I-95	03/16/18	34.9	$	13,948	$	400,000	$	11,926
		Subtotal - Q1 2018		34.9		13,948		400,000		11,926
2	Residential	West of I-95	06/12/18	19.0		265		14,000		226
3	Commercial / Retail	East of I-95	06/25/18	5.7		625		110,000		224
4	Commercial / Retail	East of I-95	06/28/18	7.7		819		106,000		628
		Subtotal - Q2 2018		32.4		1,709		53,000		1,078
		YTD Q2 2018		67.3	$	15,657	$	233,000	$	13,004

(1)The gain recognized during the six months ended June 30, 2018 on the Buc-ee’s sale totaling approximately $11.9 million excludes approximately $831,000 held in an escrow reserve related to the portion of the acreage sold for which the Company remains obligated to perform wetlands mitigation. The Company expects to recognize the remaining gain of approximately $831,000 upon completion of the mitigation work. See Note 16, “Deferred Revenue”.

Mitigation Bank. The mitigation bank transaction consists of the sale of a 70% interest in the entity that holds approximately 2,492 acres of land that has been permitted for the creation of a wetland mitigation bank (the “Venture” or the “Mitigation Bank”). The purchaser of the 70% interest in the Mitigation Bank is comprised of certain funds and accounts managed by an investment advisor subsidiary of BlackRock, Inc. (“BlackRock”). The Company retained an approximately 30% non-controlling interest. A third-party was retained by the Venture as the day-to-day manager of the Mitigation Bank property; responsible for the maintenance, generation, tracking, and other aspects of wetland mitigation credits.

The Mitigation Bank intends to engage in the creation and sale of both federal and state wetland mitigation credits. These credits will be created pursuant to the applicable permits that have been or will be issued to the Venture from the federal and state regulatory agencies that exercise jurisdiction over the awarding of such credits, but no assurances can be given as to the issuance, marketability or value of the credits. The Venture received the permit from the state regulatory agency on June 8, 2018 with the potential for 355 state credits to be awarded. Receipt of the remaining federal permit and the award of the initial state credits is anticipated to occur prior to the end of the year.

The gain on the sale of the 70% interest in the Mitigation Bank totaled approximately $18.4 million and is comprised of the gain on the sale of 70% interest for proceeds of $15.3 million as well as the gain on the retained 30% interest pursuant to FASB ASC Topic 610-20, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets. The gain is included in the Gain on Disposition of Assets in the Company’s consolidated statements of operations. As of June 30, 2018, the approximately $6.7 million Investment in Joint Venture included on the Company’s consolidated balance sheets is comprised of the fair market value of the 30% retained interest in the Venture.

The operating agreement of the Venture (the “Operating Agreement”) executed in conjunction with the mitigation bank transaction, stipulates that the Company shall arrange for sales to unrelated third parties of mitigation credits of the Mitigation Bank totaling no less than $6 million of revenue to the Mitigation Bank, net of commissions, by the end of 2020, utilizing a maximum of 60 mitigation credits to achieve the minimum sales requirement (the “Minimum Sales Requirement”). The Operating Agreement stipulates that if the Minimum Sales Requirement is not achieved, then BlackRock has the right, but is not required, to have the Company purchase the number of combined mitigation credits necessary to reach the Minimum Sales Requirement (the “Minimum Sales Guarantee”). The Company estimates the fair value of the Minimum Sales Guarantee to be approximately $100,000 which was recorded as a reduction in the gain on the transaction and is included in Accrued and Other Liabilities in the Company’s consolidated balance sheet as of June 30, 2018.

Additionally, the Operating Agreement provides BlackRock the right to cause the Company to purchase a maximum of 8.536 mitigation credits per quarter from the Mitigation Bank Venture at a price equal to 60% of the then fair market value for mitigation credits (the “Put Right”). The Put Right is applicable even if the Mitigation Bank has not yet had sufficient mitigation credits released to the Mitigation Bank by the applicable federal and state regulatory agencies. Further, in any quarter that BlackRock does not exercise its Put Right, the permitted amount of mitigation credits for the applicable quarter can be rolled forward to future calendar quarters. However, the Operating Agreement also stipulates that any amount of third-party sales of mitigation credits will reduce the Put Rights outstanding on a one-for-one basis, if the sales price of the third-party sales equals or exceeds the prices stipulated by the Put Right. Further, any sales of mitigation credits to third parties at the requisite minimum prices in a quarter that exceeds the quarterly amount of BlackRock’s Put Right, will reduce BlackRock’s Put Rights in future calendar quarters also on a one-for-one basis. The maximum potential of future payments for the Company pursuant to the Put Right is approximately $27 million. The Company estimates the fair value of the Put Right to be approximately $200,000, which was recorded as a reduction in the gain on the transaction and is included in Accrued and Other Liabilities in the Company’s consolidated balance sheet as of June 30, 2018.

2017 Land Sales. During the six months ended June 30, 2017, a total of approximately 1,669 acres were sold for approximately $40.5 million as described below:

					Gross Sales				Gain
			Date of	No. of	Price		Price		on Sale (1)
	Buyer (or Description)	Location	Sale	Acres	($000's)		per Acre		($000's)
1	Minto Communities, LLC	West of I-95	02/10/17	1,581.0	$	27,151	$	17,000	$	20,041
2	Commercial	East of I-95	03/22/17	6.4		1,556		245,000		11
		Subtotal - Q1 2017		1,587.4		28,707		18,000		20,052
3	Commercial	East of I-95	04/05/17	27.5		3,218		117,000		2,955
4	Commercial	East of I-95	04/13/17	4.5		1,235		274,000		13
5	Commercial	West of I-95	04/25/17	30.0		2,938		98,000		627
6	Third NADG Land Sale	East of I-95	06/27/17	19.4		4,422		228,000		3,263
		Subtotal - Q2 2017		81.4		11,813		145,000		6,858
		YTD Q2 2017		1,668.8	$	40,520	$	24,000	$	26,910

(1)The gain of approximately $3.3 million on the Third NADG Land Sale includes an infrastructure reimbursement payment of approximately $955,000 received in conjunction with the closing on June 27, 2017.

Pipeline. For a description of our land which is currently under contract, see the land pipeline in Note 19, “Commitment and Contingencies.”

Land Impairments. There were no impairment charges related to the Company’s undeveloped land during the six months ended June 30, 2018 or 2017. 

Beachfront Development. During the first quarter of 2018, the Company completed the construction of two single-tenant restaurants located on the Company’s six-acre beachfront property with a cost basis of approximately $11.7 million, which was included in Land and Development Costs on the Company’s consolidated balance sheet as of December 31, 2017. The total cost of construction was approximately $6.8 million. Upon completion of the construction and commencement of the tenant leases (described herein), the total basis of approximately $18.5 million was transferred to Income Properties, Land, Buildings, and Improvements from Land and Development Costs and Construction in Process on the Company’s consolidated balance sheets. The Company’s 15-year lease agreement with the operator of LandShark Bar & Grill, for the approximately 6,264 square foot restaurant property, includes annual rent based on a percentage of the tenant’s net operating income (“NOI”) until the Company has received its investment basis in the property; thereafter, the Company will receive a lower percentage of the tenant’s NOI during the remaining lease term. The Company’s 15-year lease agreement with the operator of Cocina 214 Restaurant & Bar, for the second restaurant property includes annual rent equal to the greater of $360,000 per year or a certain percentage of gross sales, and also provides for additional percentage rent upon the achievement of certain gross sales thresholds.

Daytona Beach Development. We may selectively acquire other real estate in the downtown and beachside areas of Daytona Beach, Florida. We may target either vacant land or land with existing structures that we would demolish and develop into additional income properties. During the first quarter of 2018, the Company acquired a 3-acre parcel of land with existing structures in downtown Daytona Beach, Florida for a purchase price of approximately $2.0 million. As of June 30, 2018, the Company has also acquired other contiguous parcels for a total of approximately 0.9-acres for approximately $1.5 million. We intend to pursue the potential redevelopment of these parcels, which are located nearly adjacent to the location of the future new headquarters of Brown & Brown, Inc. (NYSE: BRO) along with certain other adjacent land parcels, some of which we have under contract for purchase. We intend for our investments in the Daytona Beach area to target opportunistic acquisitions of select catalyst sites, which are typically distressed, with an objective of having short investment horizons. We may seek to partner with developers to develop the sites acquired during the six months ended June 30, 2018, and any other sites we acquire, rather than self-develop the properties.

Other Real Estate Assets. The Company owns impact fees with a cost basis of approximately $199,000 and mitigation credits with a cost basis of approximately $526,000 for a combined total of approximately $725,000 as of June 30, 2018. During the six months ended June 30, 2018, the Company transferred mitigation credits with a basis of approximately $124,000 to the land acquired by Buc-ee’s. During the six months ended June 30, 2018, the Company sold mitigation credits for approximately $455,000, for a gain of approximately $403,000, or $0.05 per share, after tax. During the six months ended June 30, 2017, the Company sold mitigation credits for approximately $1.1 million, for a gain of approximately $932,000, or $0.10 per share, after tax. During the six months ended June 30, 2018 and 2017, the Company received cash payments of approximately $131,000 and $291,000, respectively, for impact fees with a cost basis that was generally of equal value. Additionally, during the six months ended June 30, 2018, impact fees with a cost basis of approximately $72,000 were transferred to the beachfront restaurant leased to LandShark Bar & Grill.

As of December 31, 2017, the Company owned impact fees with a cost basis of approximately $402,000 and mitigation credits with a cost basis of approximately $723,000 for a combined total of approximately $1.1 million.

Subsurface Interests. As of June 30, 2018, the Company owns full or fractional subsurface oil, gas, and mineral interests underlying approximately 461,000 “surface” acres of land owned by others in 20 counties in Florida (the “Subsurface Interests”). The Company leases certain of the Subsurface Interests to mineral exploration firms for exploration. Our subsurface operations consist of revenue from the leasing of exploration rights and in some instances, additional revenues from royalties applicable to production from the leased acreage.

During 2011, an eight-year oil exploration lease was executed covering a portion of our Subsurface Interests. On September 20, 2017, the Company amended the oil exploration lease to, among other things, extend the expiration of the original term for five additional years to the new expiration date of September 22, 2024. The lease is effectively thirteen one-year terms as the lessee has the option to terminate the lease at the end of each lease year. The lessee has exercised renewal options through lease year seven ending September 22, 2018. The terms of the lease state the Company will receive royalty payments if production occurs, and may receive additional annual rental payments if the lease is continued in years eight through thirteen. The lease calls for annual lease payments which are recognized as revenue ratably over the respective twelve-month lease periods. In addition, non-refundable drilling penalty payments are made as required by the drilling requirements in the lease which are recognized as revenue when received.

Lease payments on the respective acreages and drilling penalties received through lease year seven 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
Lease Year 7 - 9/23/2017 - 9/22/2018	15,000	Hendry		806,683		50,000
Total Payments Received to Date			$	9,827,121	$	1,975,000

(1)Generally, cash payment for the Lease Payment and Drilling Penalty is received on or before the first day of the lease year. The Drilling Penalty, which is due within thirty days from the end of the prior lease year, is recorded as revenue when received, while the Lease Payment is recognized on a straight-line basis over the respective lease term. Pursuant to the amendment for the Year 7 renewal, the Lease Payment and Drilling Penalty were both received on October 11, 2017. See separate disclosure of revenue recognized per period below.

Lease income generated by the annual lease payments is recognized on a straight-line basis over the guaranteed lease term. For both the three and six months ended June 30, 2018 and 2017, respectively, lease income of approximately $201,000 and $400,000 was recognized. There can be no assurance that the oil exploration lease will be extended beyond the expiration of the current term of September 22, 2018 or, if extended, the terms or conditions of such extension.

During the six months ended June 30, 2018 and 2017, the Company also received oil royalties from operating oil wells on 800 acres under a separate lease with a separate operator. Revenues received from oil royalties totaled approximately $12,000 and $18,000, during the three months ended June 30, 2018 and 2017, respectively. Revenues received from oil royalties totaled approximately $44,000 and $49,000, during the six months ended June 30, 2018 and 2017, respectively.

The Company is not prohibited from the disposition of any or all of its Subsurface Interests. Should the Company complete a transaction to sell all or a portion of its Subsurface Interests, the Company may utilize the like-kind exchange structure in acquiring one or more replacement investments including income-producing properties. The Company may release surface entry rights or other rights upon request of a surface owner for a negotiated release fee typically based on a percentage of the surface value. 

During the six months ended June 30, 2018, the Company completed a transaction releasing our surface entry rights on approximately 600 acres in exchange for approximately $185,000 in cash and fee title to approximately 40 additional acres in Hendry County, valued at approximately $320,000. Including the non-cash value received, the gain from the transaction totaled approximately $435,000, or $0.06 per share, after tax. The Company also received cash payments for the release of surface entry rights of approximately $68,000 during the six months ended June 30, 2018. There were no releases of surface entry rights during the six months ended June 30, 2017.  

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INVESTMENT IN JOINT VENTURE

6 Months Ended

Jun. 30, 2018

INVESTMENT IN JOINT VENTURE

INVESTMENT IN JOINT VENTURE

NOTE 6. INVESTMENT IN JOINT VENTURE

The Investment in Joint Venture on the Company’s consolidated balance sheet represents the Company’s ownership interest in the Mitigation Bank (the “JV Investment”). We have concluded the Mitigation Bank is a variable interest entity and is accounted for under the equity method of accounting as the Company is not the primary beneficiary as defined in FASB ASC Topic 810, Consolidation. The Mitigation Bank is jointly controlled by the members. Under the guidance of FASB ASC 323, Investments-Equity Method and Joint Ventures, the Company uses the equity method to account for the JV Investment.

The following table provides summarized financial information of the Venture as of June 30, 2018:

	As of
	June 30, 2018
	($000's)
Assets, cash and cash equivalents	$	2,409
Assets, investment in mitigation credit assets		1,424
Total Assets	$	3,833
Equity	$	3,833

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FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2018

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 7. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table presents the carrying value and estimated fair value of the Company’s financial instruments at June 30, 2018 and December 31, 2017:

	June 30, 2018				December 31, 2017
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Cash and Cash Equivalents - Level 1	$	4,312,324	$	4,312,324	$	6,559,409	$	6,559,409
Restricted Cash - Level 1		2,419,686		2,419,686		6,508,131		6,508,131
Commercial Loan Investments - Level 2		2,994,916		3,031,501		11,925,699		12,015,628
Long-Term Debt - Level 2		177,133,608		179,596,049		195,816,364		200,000,776

To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, were used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts.

The following table presents the fair value of assets measured on a recurring basis by Level as of June 30, 2018:

			Fair Value at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets		Significant Other		Unobservable
			for Identical		Observable Inputs		Inputs
	6/30/2018		Assets (Level 1)		(Level 2)		(Level 3)
Cash Flow Hedge - Interest Rate Swap	$	912,767	$	—	$	912,767	$	—
Total	$	912,767	$	—	$	912,767	$	—

The following table presents the fair value of assets measured on a recurring basis by Level as of December 31, 2017:

			Fair Value at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets		Significant Other		Unobservable
			for Identical		Observable Inputs		Inputs
	12/31/2017		Assets (Level 1)		(Level 2)		(Level 3)
Cash Flow Hedge - Interest Rate Swap	$	606,621	$	—	$	606,621	$	—
Total	$	606,621	$	—	$	606,621	$	—

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INTANGIBLE LEASE ASSETS AND LIABILITIES

6 Months Ended

Jun. 30, 2018

INTANGIBLE LEASE ASSETS AND LIABILITIES

INTANGIBLE LEASE ASSETS AND LIABILITIES

NOTE 8. INTANGIBLE LEASE ASSETS AND LIABILITIES

Intangible lease assets and liabilities consist of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their fair values.

Intangible lease assets and liabilities consisted of the following as of June 30, 2018 and December 31, 2017:

	As of
	June 30, 2018		December 31, 2017
Intangible Lease Assets:
Value of In-Place Leases	$	38,046,241	$	36,827,226
Value of Above Market In-Place Leases		2,966,322		2,966,322
Value of Intangible Leasing Costs		12,004,653		10,405,135
Sub-total Intangible Lease Assets		53,017,216		50,198,683
Accumulated Amortization		(14,411,170)		(11,440,624)
Sub-total Intangible Lease Assets—Net		38,606,046		38,758,059
Intangible Lease Liabilities (included in accrued and other liabilities):
Value of Below Market In-Place Leases		(36,109,518)		(35,312,017)
Sub-total Intangible Lease Liabilities		(36,109,518)		(35,312,017)
Accumulated Amortization		6,969,983		5,541,576
Sub-total Intangible Lease Liabilities—Net		(29,139,535)		(29,770,441)
Total Intangible Assets and Liabilities—Net	$	9,466,511	$	8,987,618

The following table reflects the amortization of intangible assets and liabilities during the three and six months ended June 30, 2018 and 2017:

	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
	($000's)		($000's)		($000's)		($000's)
Depreciation and Amortization Expense	$	1,368	$	1,189	$	2,721	$	2,277
Increase to Income Properties Revenue		(600)		(550)		(1,179)		(1,081)
Net Amortization of Intangible Assets and Liabilities	$	768	$	639	$	1,542	$	1,196

The estimated future amortization and accretion of intangible lease assets and liabilities is as follows:

			Future Accretion		Net Future
	Future		to Income		Amortization of
	Amortization		Property		Intangible Assets
Year Ending December 31,	Amount		Revenue		and Liabilities
Remainder of 2018	$	2,916,475	$	(1,182,672)	$	1,733,803
2019		5,452,670		(2,394,193)		3,058,477
2020		5,011,249		(2,327,464)		2,683,785
2021		3,320,813		(2,478,319)		842,494
2022		2,702,885		(2,549,480)		153,405
2023		2,359,734		(2,557,950)		(198,216)
Thereafter		14,985,245		(13,792,482)		1,192,763
Total	$	36,749,071	$	(27,282,560)	$	9,466,511

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IMPAIRMENT OF LONG-LIVED ASSETS

6 Months Ended

Jun. 30, 2018

IMPAIRMENT OF LONG-LIVED ASSETS

IMPAIRMENT OF LONG-LIVED ASSETS

NOTE 9. IMPAIRMENT OF LONG-LIVED ASSETS

The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The fair value of long-lived assets required to be assessed for impairment is determined on a non-recurring basis using Level 3 inputs in the fair value hierarchy. These Level 3 inputs may include, but are not limited to, executed purchase and sale agreements on specific properties, third party valuations, discounted cash flow models, and other model-based techniques.

There were no impairment charges during the six months ended June 30, 2018 and 2017.

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OTHER ASSETS

6 Months Ended

Jun. 30, 2018

OTHER ASSETS

OTHER ASSETS

NOTE 10. OTHER ASSETS

Other assets consisted of the following:

	As of
	June 30, 2018		December 31, 2017
Income Property Tenant Receivables	$	1,318,042	$	895,476
Income Property Straight-line Rent Adjustment		3,439,530		2,517,195
Income Property Lease Incentive		2,545,461		2,696,678
Interest Receivable from Commercial Loan Investments		—		38,078
Cash Flow Hedge - Interest Rate Swap		912,767		606,621
Infrastructure Reimbursement Receivables		2,117,840		2,213,305
Golf Operations Receivables		286,995		349,220
Deferred Deal Costs		471,966		480,257
Prepaid Expenses, Deposits, and Other		2,882,784		3,174,299
Total Other Assets	$	13,975,385	$	12,971,129

Income Property Lease Incentive. As of June 30, 2018, the Income Property Lease Incentive of approximately $2.5 million relates to a tenant improvement allowance of approximately $2.7 million provided to Hilton Grand Vacations in conjunction with the extension of their leases of two buildings from November 30, 2021 to November 30, 2026, offset by approximately $202,000 of accumulated amortization which has been recognized as an offset to rental revenue. The remaining balance will be amortized over the remaining term of the leases.

Infrastructure Reimbursement Receivables. As of June 30, 2018 and December 31, 2017, the Infrastructure Reimbursement Receivables were all related to the land sales within the Tomoka Town Center. The balance as of June 30, 2018 consisted of approximately $1.6 million due from Tanger for infrastructure reimbursement to be repaid in nine remaining annual installments of $175,000, net of a discount of approximately $162,000, and approximately $770,000 due from Sam’s Club for infrastructure reimbursement to be repaid in seven remaining annual installments of $110,000, net of a discount of approximately $65,000.

Deferred Deal Costs. Deferred Deal Costs represent legal costs incurred in advance of the potential execution of and/or closing of a contract for the disposition of assets, primarily land sales. The costs are deferred and expensed at the time the transaction closes or at the time it becomes evident that the transaction will not be completed.

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COMMON STOCK AND EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2018

COMMON STOCK AND EARNINGS PER SHARE

COMMON STOCK AND EARNINGS PER SHARE

NOTE 11. COMMON STOCK AND EARNINGS PER SHARE

Basic earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is based on the assumption of the conversion of stock options and vesting of restricted stock at the beginning of each period using the treasury stock method at average cost for the periods.

		Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Income Available to Common Shareholders:
Net Income	$	14,162,908	$	3,678,908	$	25,075,207	$	16,425,300
Weighted Average Shares Outstanding		5,529,360		5,531,444		5,530,108		5,566,595
Common Shares Applicable to Stock
Options Using the Treasury Stock Method		—		14,008		31,683		16,463
Total Shares Applicable to Diluted Earnings Per Share		5,529,360		5,545,452		5,561,791		5,583,058
Per Share Information:
Basic
Net Income	$	2.56	$	0.67	$	4.53	$	2.95
Diluted
Net Income	$	2.56	$	0.66	$	4.51	$	2.94

There were no potentially dilutive securities for the three months ended June 30, 2018. The effect of 70,000 potentially dilutive securities was not included for the three months ended June 30, 2017 as the effect would be anti-dilutive. The effect of 15,000 and 77,750 potentially dilutive securities was not included for the six months ended June 30, 2018 and 2017, respectively, as the effect would be anti-dilutive.

The Company intends to settle its 4.50% Convertible Senior Notes due 2020 (the “Convertible Notes”) in cash upon conversion with any excess conversion value to be settled in shares of our common stock. Therefore, only the amount in excess of the par value of the Convertible Notes will be included in our calculation of diluted net income per share using the treasury stock method. As such, the Convertible Notes have no impact on diluted net income per share until the price of our common stock exceeds the current conversion price of $68.63. The average price of our common stock during the six months ended June 30, 2018 and 2017 did not exceed the conversion price which resulted in no additional diluted outstanding shares.

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TREASURY STOCK

6 Months Ended

Jun. 30, 2018

TREASURY STOCK

TREASURY STOCK

NOTE 12. TREASURY STOCK

In the first quarter of 2017, the Company announced a $10 million stock repurchase program (the “$10 Million Repurchase Program”) under which approximately $4.6 million of the Company’s common stock had been repurchased as of December 31, 2017.  During the three months ended June 30, 2018, the Company repurchased 36,804 shares of its common stock on the open market for a total cost of approximately $2.2 million, or an average price per share of $59.57. The shares of the Company’s common stock repurchased during the three months ended June 30, 2018 were returned to the Company’s treasury. On July 18, 2018, the Company’s Board of Directors approved an increase of approximately $7.1 million to the stock repurchase program, refreshing the total program to an aggregate of $10 million.

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LONG-TERM DEBT

6 Months Ended

Jun. 30, 2018

LONG-TERM DEBT

LONG-TERM DEBT

NOTE 13. LONG-TERM DEBT

As of June 30, 2018, the Company’s outstanding indebtedness, at face value, was as follows:

	Face		Maturity	Interest
	Value Debt		Date	Rate
Credit Facility	$	50,745,579	September 2021		30 ‑day LIBOR plus 1.50% -2.20%
Mortgage Note Payable (originated with Wells Fargo) (1)		30,000,000	October 2034		4.330%
Mortgage Note Payable (originated with Wells Fargo) (2)		24,886,938	April 2021		30 ‑day LIBOR plus 1.90%
4.50% Convertible Senior Notes due 2020, net of discount		75,000,000	March 2020		4.500%
Total Long-Term Face Value Debt	$	180,632,517

(1)Secured by the Company’s interest in six income properties. The mortgage loan carries a fixed rate of 4.33% per annum during the first ten years of the term, and requires payments of interest only during the first ten years of the loan. After the tenth anniversary of the effective date of the loan, the cash flows, as defined in the related loan agreement, generated by the underlying six income properties must be used to pay down the principal balance of the loan until paid off or until the loan matures. The loan is fully pre-payable after the tenth anniversary of the effective date of the loan.

(2)Secured by the Company’s income property leased to Wells Fargo located in Raleigh, North Carolina. The mortgage loan has a 5-year term with two years interest only, and interest and a 25-year amortization for the balance of the term.  The mortgage loan bears a variable rate of interest based on the 30-day LIBOR plus a rate of 190 basis points. The interest rate for this mortgage loan has been fixed through the use of an interest rate swap that fixed the rate at 3.17%.  The mortgage loan can be prepaid at any time subject to the termination of the interest rate swap. Amortization of the principal balance began in May 2018.

Credit Facility. The Company’s revolving credit facility (the “Credit Facility”), with Bank of Montreal (“BMO”) serving as the administrative agent for the lenders thereunder, is unsecured with regard to our income property portfolio but is guaranteed by certain wholly-owned subsidiaries of the Company. The Credit Facility bank group is led by BMO and also includes Wells Fargo and Branch Banking & Trust Company. On September 7, 2017, the Company executed the second amendment and restatement of the Credit Facility (the “2017 Revolver Amendment”). Pursuant to the 2017 Revolver Amendment, the Credit Facility matures on September 7, 2021,  with the ability to extend the term for 1 year.

On May 14, 2018, the Company executed the first amendment to the 2017 Revolver Amendment (the “2018 Revolver Amendment”). As a result of the 2018 Revolver Amendment, the Credit Facility has a total borrowing capacity of $150.0 million with the ability to increase that capacity up to $250.0 million during the term. The Credit Facility provides the lenders with a secured interest in the equity of the Company subsidiaries that own the properties included in the borrowing base. The indebtedness outstanding under the Credit Facility accrues interest at a rate ranging from the 30-day LIBOR plus 150 basis points to the 30-day LIBOR plus 220 basis points based on the total balance outstanding under the Credit Facility as a percentage of the total asset value of the Company, as defined in the 2017 Revolver Amendment, as amended by the 2018 Revolver Amendment. The Credit Facility also accrues a fee of 15 to 25 basis points for any unused portion of the borrowing capacity based on whether the unused portion is greater or less than 50% of the total borrowing capacity.

At June 30, 2018, the current commitment level under the Credit Facility was $150.0 million. The available borrowing capacity under the Credit Facility was approximately $99.1 million, based on the level of borrowing base assets. As of June 30, 2018, the Credit Facility had a $50.7 million balance outstanding.

The Credit Facility is subject to customary restrictive covenants including, but not limited to, limitations on the Company’s ability to: (a) incur indebtedness; (b) make certain investments; (c) incur certain liens; (d) engage in certain affiliate transactions; and (e) engage in certain major transactions such as mergers. In addition, the Company is subject to various financial maintenance covenants including, but not limited to, a maximum indebtedness ratio, a maximum secured indebtedness ratio, and a minimum fixed charge coverage ratio. The Credit Facility also contains affirmative covenants and events of default including, but not limited to, a cross default to the Company’s other indebtedness and upon the occurrence of a change of control. The Company’s failure to comply with these covenants or the occurrence of an event of default could result in acceleration of the Company’s debt and other financial obligations under the Credit Facility.

Mortgage Notes Payable. In addition to the Credit Facility, the Company has certain other borrowings, as noted in the table above, all of which are non-recourse.

Convertible Debt. The Company’s $75.0 million aggregate principal amount of 4.50% Convertible Notes will mature on March 15, 2020, unless earlier purchased or converted. The initial conversion rate was 14.5136 shares of common stock for each $1,000 principal amount of Convertible Notes, which represented an initial conversion price of approximately $68.90 per share of common stock. Since July of 2016, when the Company’s Board of Directors implemented a quarterly dividend in place of the previous semi-annual dividend, the conversion rate has been adjusted with each successive quarterly dividend and is currently, after the second quarter 2018 dividend, equal to 14.5701 shares of common stock for each $1,000 principal amount of Convertible Notes, which represents an adjusted conversion price of approximately $68.63 per share of common stock.

The conversion rate is subject to adjustment in certain circumstances. Holders may not surrender their Convertible Notes for conversion prior to December 15, 2019 except upon the occurrence of certain conditions relating to the closing sale price of the Company’s common stock, the trading price per $1,000 principal amount of Convertible Notes, or specified corporate events including a change in control of the Company. The Company may not redeem the Convertible Notes prior to the stated maturity date and no sinking fund is provided for the Convertible Notes. The Convertible Notes are convertible, at the election of the Company, into solely cash, solely shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock. The Company intends to settle the Convertible Notes in cash upon conversion, with any excess conversion value to be settled in shares of our common stock. In accordance with GAAP, the Convertible Notes are accounted for as a liability with a separate equity component recorded for the conversion option. A liability was recorded for the Convertible Notes on the issuance date at fair value based on a discounted cash flow analysis using current market rates for debt instruments with similar terms. The difference between the initial proceeds from the Convertible Notes and the estimated fair value of the debt instruments resulted in a debt discount, with an offset recorded to additional paid-in capital representing the equity component. The discount on the Convertible Notes was approximately $6.1 million at issuance, which represents the cash discount paid of approximately $2.6 million and the approximate $3.5 million attributable to the value of the conversion option recorded in equity, which is being amortized into interest expense through the maturity date of the Convertible Notes. As of June 30, 2018, the unamortized debt discount of our Convertible Notes was approximately $2.3 million.

Long-term debt as of June 30, 2018 and December 31, 2017 consisted of the following: 

	June 30, 2018				December 31, 2017
			Due Within				Due Within
	Total		One Year		Total		One Year
Credit Facility	$	50,745,579	$	—	$	70,000,000	$	—
Mortgage Note Payable (originated with Wells Fargo)		30,000,000		—		30,000,000		—
Mortgage Note Payable (originated with Wells Fargo)		24,886,938		—		25,000,000		—
4.50% Convertible Senior Notes due 2020, net of discount		72,701,857		—		72,075,295		—
Loan Costs, net of accumulated amortization		(1,200,766)		—		(1,258,931)		—
Total Long-Term Debt	$	177,133,608	$	—	$	195,816,364	$	—

Payments applicable to reduction of principal amounts as of June 30, 2018 will be required as follows:

Year Ending December 31,	Amount
2019	$	—
2020		75,000,000
2021		75,632,517
2022		—
2023		—
Thereafter		30,000,000
Total Long-Term Debt - Face Value	$	180,632,517

The carrying value of long-term debt as of June 30, 2018 consisted of the following:

	Total
Current Face Amount	$	180,632,517
Unamortized Discount on Convertible Debt		(2,298,143)
Loan Costs, net of accumulated amortization		(1,200,766)
Total Long-Term Debt	$	177,133,608

The following table reflects a summary of interest expense incurred and paid during the three and six months ended June 30, 2018 and 2017:

	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
	($000's)		($000's)		($000's)		($000's)
Interest Expense	$	2,085	$	1,736	$	4,185	$	3,393
Amortization of Loan Costs		137		112		287		225
Amortization of Discount on Convertible Notes		316		296		627		588
Total Interest Expense	$	2,538	$	2,144	$	5,099	$	4,206
Total Interest Paid	$	1,291	$	887	$	4,190	$	3,438

The Company was in compliance with all of its debt covenants as of June 30, 2018 and December 31, 2017.

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INTEREST RATE SWAP

6 Months Ended

Jun. 30, 2018

INTEREST RATE SWAP

INTEREST RATE SWAP

NOTE 14. INTEREST RATE SWAP

The Company entered into an interest rate swap agreement to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR for the $24.9 million mortgage note payable as discussed in Note 13, “Long-Term Debt.” During the six months ended June 30, 2018, the interest rate swap agreement was 100% effective. Accordingly, the change in fair value on the interest rate swap has been classified in accumulated other comprehensive income. As of June 30, 2018, the fair value of our interest rate swap agreement, which was a gain of approximately $913,000, was included in other assets on the consolidated balance sheets. The interest rate swap was effective on April 7, 2016 and matures on April 7, 2021. The interest rate swap fixed the variable rate debt on the notional amount of related debt of $24.9 million to a rate of 3.17%.

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ACCRUED AND OTHER LIABILITIES

6 Months Ended

Jun. 30, 2018

ACCRUED AND OTHER LIABILITIES

ACCRUED AND OTHER LIABILITIES

NOTE 15. ACCRUED AND OTHER LIABILITIES

Accrued and other liabilities consisted of the following: 

	As of
	June 30, 2018		December 31, 2017
Golf $1 Round Surcharge	$	630,000	$	700,000
Accrued Property Taxes		1,372,678		66,909
Tenant Leasing Reserve Escrow		917,748		—
Reserve for Tenant Improvements		136,157		3,302,831
Accrued Construction Costs		190,998		1,360,950
Accrued Interest		1,189,668		1,194,681
Environmental Reserve and Restoration Cost Accrual		572,197		866,936
Other		2,829,020		2,668,219
Total Accrued and Other Liabilities	$	7,838,466	$	10,160,526

Golf $1 Round Surcharge. On January 24, 2017, the Company acquired the land and improvements comprising the golf courses, previously leased from the City, for approximately $1.5 million (the “Golf Course Land Purchase”). In connection with the Golf Course Land Purchase,  each year the Company is obligated to pay the City additional consideration in the amount of an annual surcharge of $1 per golf round played (the “Per-Round Surcharge”) with an annual minimum Per-Round Surcharge of $70,000 and a maximum aggregate amount of the Per-Round Surcharges paid equal to $700,000. The maximum amount of $700,000 represents contingent consideration and was recorded as an increase in Golf Buildings, Improvements, and Equipment and Accrued and Other Liabilities in the accompany consolidated balance sheets. The first annual payment was made in January 2018 leaving a remaining commitment of approximately $630,000 as of June 30, 2018.

Tenant Leasing Reserve Escrow. In connection with the acquisition of the property in Aspen, Colorado on February 21, 2018, the master tenant funded approximately $2.25 million at closing which is being held by the Company in a leasing reserve. During the six months ended June 30, 2018 eligible costs totaling approximately $1.3 million were funded from the escrow account which included approximately $935,000 of the Company’s costs incurred related to the property acquisition and approximately $398,000 in base rent payments, leaving a remaining escrow balance of approximately $918,000. The balance can be used for eligible costs which, pursuant to the lease, include rent payments up to a maximum of $1.0 million and taxes, insurance, leasing commissions, tenant improvements, or other third-party operating expenses incurred in connection with the operation of the property.

Reserve for Tenant Improvements. The reduction of the balance during the six months ended June 30, 2018 represents the payment of approximately $2.7 million for a tenant improvement allowance provided to Hilton Grand Vacations in conjunction with the extension of their leases of two buildings from November 30, 2021 to November 30, 2026 which was accrued for as of December 31, 2017. In connection with the acquisition on April 28, 2017 of the property in Tampa, Florida leased to LA Fitness, the Company was credited approximately $400,000 at closing for certain tenant improvements. During the quarter ended June 30, 2018, the tenant completed the improvements and the Company funded $400,000 to LA Fitness.

Environmental Reserve. During the year ended December 31, 2014, the Company accrued an environmental reserve of approximately $110,000 in connection with an estimate of additional costs required to monitor a parcel of less than one acre of land owned by the Company in Highlands County, Florida on which environmental remediation work had previously been performed. The Company engaged legal counsel who, in turn, engaged environmental engineers to review the site and the prior monitoring test results. During the year ended December 31, 2015, their review was completed, and the Company made an additional accrual of approximately $500,000, representing the low end of the range of possible costs estimated by the engineers to be between approximately $500,000 and $1.0 million to resolve this matter subject to the approval of the state department of environmental protection (the “FDEP”). The FDEP issued a Remedial Action Plan Modification Approval Order (the “FDEP Approval”) in August 2016 which supports the approximate $500,000 accrual made in 2015. The Company is implementing the remediation plan pursuant to the FDEP Approval. During the fourth quarter of 2017, the Company made an additional accrual of approximately $51,000 for the second year of monitoring as the low end of the original range of estimated costs was increased for the amount of monitoring now anticipated. Since the total accrual of approximately $661,000 was made, approximately $552,000 in costs have been incurred through June 30, 2018, leaving a remaining accrual of approximately $109,000.

Restoration Accrual. As part of the resolution of a regulatory matter pertaining to the Company’s prior agricultural activities on certain of the Company’s land located in Daytona Beach, Florida, as of December 31, 2015, the Company accrued an obligation of approximately $1.7 million, representing the low end of the estimated range of possible wetlands restoration costs for approximately 148.4 acres within such land, and such estimated costs were included on the consolidated balance sheets as an increase in the basis of our land and development costs associated with those and benefitting surrounding acres. The final proposal for restoration work was received during the second quarter of 2016 which totaled approximately $2.0 million. Accordingly, an increase in the accrual of approximately $300,000 was recorded during the second quarter of 2016. The Company funded approximately $1.6 million of the total $2.0 million of estimated costs through the period ended June 30, 2018, leaving a remaining accrual of approximately $464,000. This matter is more fully described in Note 19 “Commitments and Contingencies.”

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DEFERRED REVENUE

6 Months Ended

Jun. 30, 2018

DEFERRED REVENUE

DEFERRED REVENUE

NOTE 16. DEFERRED REVENUE

Deferred revenue consisted of the following:

	As of
	June 30, 2018		December 31, 2017
Deferred Oil Exploration Lease Revenue	$	185,648	$	585,675
Deferred Revenue on Land Sales		846,545		—
Prepaid Rent		1,079,747		1,126,408
Tenant Contributions		4,227,953		—
Other Deferred Revenue		528,772		318,376
Total Deferred Revenue	$	6,868,665	$	2,030,459

Deferred Oil Exploration Lease Revenue. On October 11, 2017, the Company received an approximate $807,000 rent payment for the seventh year of the Company’s thirteen-year oil exploration lease, which is being recognized ratably over the twelve-month lease period ending in September 2018. The oil exploration lease is more fully described in Note 5 “Land and Subsurface Interests.”

Deferred Revenue on Land Sales. In conjunction with the land sale to Buc-ee’s in March 2018, the Company funded an escrow account for approximately $831,000 related to the portion of the acreage sold for which the Company remains obligated to perform wetlands mitigation. As a result of the Company’s continuing obligation, approximately $831,000 of the sales price collected at closing was deferred and the revenue will be recognized upon the Company’s performance of the obligation. The Company estimates the obligation related to the wetlands mitigation will total approximately $25,000.

Tenant Contributions. In connection with the acquisition of the property in Aspen, Colorado, the master tenant contributed $1.5 million of the $28.0 million purchase price at closing on February 21, 2018. Additionally, the master tenant funded, from its leasing reserve escrow, approximately $935,000 of the Company’s acquisition-related costs. Approximately $41,000 was recognized into income property rental revenue through June 30, 2018, leaving an aggregate balance of approximately $2.4 million, related to the Company’s total acquisition cost of approximately $29.0 million, to be recognized over the remaining term of the lease.

In connection with the construction of the beachfront restaurant leased to Cocina 214 Restaurant & Bar in Daytona Beach, Florida, the tenant contributed approximately $1.9 million of the building and tenant improvements owned by the Company through direct payments to various third-party construction vendors. Approximately $54,000 was recognized into income property rental revenue through June 30, 2018, leaving a balance of approximately $1.8 million to be recognized over the remaining term of the lease.

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STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2018

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

NOTE 17. STOCK-BASED COMPENSATION

SUMMARY OF STOCK-BASED COMPENSATION

A summary of share activity for all equity classified stock compensation during the six months ended June 30, 2018, is presented below:

	Shares		Vested /			Shares
	Outstanding	Granted	Exercised	Expired	Forfeited	Outstanding
Type of Award	at 1/1/2018	Shares	Shares	Shares	Shares	at 6/30/2018
Equity Classified - Performance Share Awards - Peer Group Market Condition Vesting	12,635	15,445	—	—	—	28,080
Equity Classified - Market Condition Restricted Shares - Stock Price Vesting	29,750	—	(7,750)	—	—	22,000
Equity Classified - Three Year Vest Restricted Shares	37,390	17,712	(18,883)	—	—	36,219
Equity Classified - Non-Qualified Stock Option Awards	90,000	—	—	—	—	90,000
Total Shares	169,775	33,157	(26,633)	—	—	176,299

Amounts recognized in the consolidated financial statements related to stock compensation are as follows:

	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Total Cost of Share-Based Plans Charged Against Income Before Tax Effect	$	430,054	$	389,585	$	897,325	$	743,164
Income Tax Expense Recognized in Income	$	(108,997)	$	(150,283)	$	(227,427)	$	(286,676)

EQUITY-CLASSIFIED STOCK COMPENSATION

Performance Share Awards – Peer Group Market Condition Vesting

On February 3, 2017, the Company awarded to certain employees 12,635 Performance Shares under the Amended and Restated 2010 Equity Incentive Plan (the “2010 Plan”). The Performance Shares awards entitle the recipient to receive, upon the vesting thereof, shares of common stock of the Company equal to between 0% and 150% of the number of Performance Shares awarded. The number of shares of common stock so vesting will be determined based on the Company’s total shareholder return as compared to the total shareholder return of a certain peer group during a three-year performance period commencing on January 1, 2017 and ending on December 31, 2019.

On January 24, 2018, the Company awarded to certain employees 15,445 Performance Shares under the 2010 Plan. The Performance Shares awards entitle the recipient to receive, upon the vesting thereof, shares of common stock of the Company equal to between 0% and 150% of the number of Performance Shares awarded. The number of shares of common stock so vesting will be determined based on the Company’s total shareholder return as compared to the total shareholder return of a certain peer group during a three-year performance period commencing on January 1, 2018 and ending on December 31, 2020.

Pursuant to amendments to the employment agreements and certain restricted share award agreements entered into by the Company on August 4, 2017, the restricted shares granted thereunder, if they are subject to performance-based vesting conditions, will fully vest following a change in control only if the executive’s employment is terminated without cause or if the executive resigns for good reason (as such terms are defined in the executive’s employment agreement), in each case, at any time during the 24-month period following the change in control (as defined in the executive’s employment agreement).

The Company used a Monte Carlo simulation pricing model to determine the fair value of its awards that are based on market conditions. The determination of the fair value of market condition-based awards is affected by the Company’s stock price as well as assumptions regarding a number of other variables. These variables include expected stock price volatility over the requisite performance term of the awards, the relative performance of the Company’s stock price and shareholder returns to companies in its peer group, annual dividends, and a risk-free interest rate assumption. Compensation cost is recognized regardless of the achievement of the market conditions, provided the requisite service period is met.

A summary of activity during the six months ended June 30, 2018, is presented below: 

		Wtd. Avg.
Performance Shares with Market Conditions	Shares	Fair Value
Outstanding at January 1, 2018	12,635	$	55.66
Granted	15,445		74.99
Vested	—		—
Expired	—		—
Forfeited	—		—
Outstanding at June 30, 2018	28,080	$	66.29

As of June 30, 2018, there was approximately $1.3 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to Performance Share awards, which will be recognized over a remaining weighted average period of 2.2 years.

Market Condition Restricted Shares – Stock Price Vesting

“Inducement” grants of 96,000 and 17,000 shares of restricted Company common stock were awarded to John P. Albright and Mark E. Patten in 2011 and 2012, respectively. Mr. Albright’s restricted shares were granted outside of the 2010 Plan while Mr. Patten’s restricted shares were awarded under the 2010 Plan. The Company filed a registration statement with the Securities and Exchange Commission on Form S-8 to register the resale of Mr. Albright’s restricted stock under this award. The restricted shares were to vest in six increments based upon the price per share of the Company’s common stock during the term of their employment (or within sixty days after termination of employment by the Company without cause) meeting or exceeding the target trailing sixty-day average closing prices ranging from $36 per share for the first increment to $65 per share for the final increment. If any increment of the restricted shares were to fail to satisfy the applicable stock price condition prior to six years from the grant date, that increment of the restricted shares would have been forfeited. The first four increments of Mr. Albright’s awards vested, while the remaining 32,000 unvested “inducement” grant restricted shares, for the $60 and $65 price increments, awarded to Mr. Albright in 2011, expired without vesting on August 1, 2017. As of June 30, 2018, all six increments of Mr. Patten’s grants had vested.

Additional grants of 2,500 and 3,000 shares of restricted Company common stock were awarded to Daniel E. Smith and Steven R. Greathouse under the 2010 Plan, during the fourth quarter of 2014 and the first quarter of 2015, respectively. The restricted shares were to vest in two increments based upon the price per share of Company common stock during the term of their employment (or within sixty days after termination of employment by the Company without cause), meeting or exceeding the target trailing sixty-day average closing prices of $60 per share and $65 per share for the two increments. If any increment of the restricted shares were to fail to satisfy the applicable stock price condition prior to six years from the grant date, that increment of the restricted shares would have been forfeited. As of June 30, 2018, both increments of Mr. Smith’s and Mr. Greathouse’s awards had vested.

A grant of 94,000 shares of restricted Company common stock was awarded to Mr. Albright under the 2010 Plan during the second quarter of 2015 under a new five-year employment agreement. On February 26, 2016, 72,000 of these shares were surrendered due to an over-grant by the Company, of which (i) 4,000 were re-granted on February 26, 2016 with terms identical to those of the surrendered restricted stock, and (ii) 68,000 were permanently surrendered. The 26,000 shares of restricted Company common stock outstanding from these grants were to vest in four increments based upon the price per share of Company common stock during the term of his employment (or within sixty days after termination of employment by the Company without cause), meeting or exceeding the target trailing thirty-day average closing prices ranging from $60 and $65 per share for the first two increments of 2,000 shares each, $70 per share for the third increment of 18,000 shares, and $75 per share for the fourth increment of 4,000 shares. If any increment of the restricted shares fails to satisfy the applicable stock price condition prior to January 28, 2021, that increment of the restricted shares will be forfeited. As of June 30, 2018, the first two increments of this award had vested.

Pursuant to amendments to the employment agreements and certain restricted share award agreements entered into by the Company on February 26, 2016 and August 4, 2017, the restricted shares granted thereunder, if they are subject to performance-based vesting conditions, will fully vest following a change in control only if the executive’s employment is terminated without cause or if the executive resigns for good reason (as such terms are defined in the executive’s employment agreement), in each case, at any time during the 24-month period following the change in control (as defined in the executive’s employment agreement).

The Company used a Monte Carlo simulation pricing model to determine the fair value of its awards that are based on market conditions. The determination of the fair value of market condition-based awards is affected by the Company’s stock price as well as assumptions regarding a number of other variables. These variables include expected stock price volatility over the requisite performance term of the awards, the relative performance of the Company’s stock price and shareholder returns to companies in its peer group, annual dividends, and a risk-free interest rate assumption. Compensation cost is recognized regardless of the achievement of the market conditions, provided the requisite service period is met.

A summary of the activity for these awards during the six months ended June 30, 2018, is presented below:

		Wtd. Avg.
Market Condition Non-Vested Restricted Shares	Shares	Fair Value
Outstanding at January 1, 2018	29,750	$	39.07
Granted	—		—
Vested	(7,750)		31.58
Expired	—		—
Forfeited	—		—
Outstanding at June 30, 2018	22,000	$	41.71

As of June 30, 2018, there is no unrecognized compensation cost related to market condition restricted stock.

Three Year Vest Restricted Shares

On January 22, 2014, the Company granted to certain employees 14,500 shares of restricted Company common stock under the 2010 Plan. One-third of the restricted shares vested on each of the first, second, and third anniversaries of the grant date, provided the grantee was an employee of the Company on those dates. 

On January 28, 2015, the Company granted to certain employees, which did not include Mr. Albright, 11,700 shares of restricted Company common stock under the 2010 Plan. Additionally, on February 9, 2015, the Company granted 8,000 shares of restricted Company common stock to Mr. Albright under the 2010 Plan. One-third of both awards of restricted shares vested on each of the first, second, and third anniversaries of the January 28, 2015 grant date, provided the grantee was an employee of the Company on those dates. 

On January 27, 2016, the Company granted to certain employees 21,100 shares of restricted Company common stock under the 2010 Plan. One-third of the restricted shares will vest on each of the first, second, and third anniversaries of January 28, 2016, provided the grantee is an employee of the Company on those dates. In addition, any unvested portion of the restricted shares will vest upon a change in control.

On January 25, 2017, the Company granted to certain employees 17,451 shares of restricted Company common stock under the 2010 Plan. One-third of the restricted shares will vest on each of the first, second, and third anniversaries of January 28, 2017 provided the grantee is an employee of the Company on those dates. In addition, any unvested portion of the restricted shares will vest upon a change in control.

On January 24, 2018, the Company granted to certain employees 17,712 shares of restricted Company common stock under the 2010 Plan. One-third of the restricted shares will vest on each of the first, second, and third anniversaries of January 28, 2018 provided the grantee is an employee of the Company on those dates. In addition, any unvested portion of the restricted shares will vest upon a change in control.

Effective as of August 4, 2017, the Company entered into amendments to the employment agreements and certain stock option award agreements and restricted share award agreements whereby such awards will fully vest following a change in control (as defined in the executive’s employment agreement) only if the executive’s employment is terminated without cause or if the executive resigns for good reason (as such terms are defined in the executive’s employment agreement), in each case, at any time during the 24-month period following the change in control.  

The Company’s determination of the fair value of the three-year vest restricted stock awards was calculated by multiplying the number of shares issued by the Company’s stock price at the grant date, less the present value of expected dividends during the vesting period. Compensation cost is recognized on a straight-line basis over the vesting period.

A summary of activity during the six months ended June 30, 2018, is presented below:

		Wtd. Avg.
		Fair Value
Three Year Vest Non-Vested Restricted Shares	Shares	Per Share
Outstanding at January 1, 2018	37,390	$	51.39
Granted	17,712		65.33
Vested	(18,883)		51.57
Expired	—		—
Forfeited	—		—
Outstanding at June 30, 2018	36,219	$	58.12

As of June 30, 2018, there was approximately $1.7 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to the three-year vest non-vested restricted shares, which will be recognized over a remaining weighted average period of 2.10 years.

Non-Qualified Stock Option Awards

Pursuant to the Non-Qualified Stock Option Award Agreements between the Company and Messrs. Albright, Patten, and Smith, each of these Company employees was granted an option to purchase 50,000,  10,000, and 10,000 shares of Company common stock, in 2011, 2012, and 2014, respectively, under the 2010 Plan, with an exercise price per share equal to the fair market value on their respective grant dates. One-third of the options vested on each of the first, second, and third anniversaries of their respective grant dates, provided the recipient was an employee of the Company on those dates. In addition, any unvested portion of the options will vest upon a change in control. The options expire on the earliest of: (a) the tenth anniversary of the grant date; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability.

On January 23, 2013, the Company granted options to purchase 51,000 shares of the Company’s common stock under the 2010 Plan to certain employees of the Company, including 10,000 shares to Mr. Patten, with an exercise price per share equal to the fair market value at the date of grant. One-third of these options vested on each of the first, second, and third anniversaries of the grant date, provided the recipient was an employee of the Company on those dates. The options expire on the earliest of: (a) the fifth anniversary of the grant date; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability.

On February 9, 2015, the Company granted to Mr. Albright an option to purchase 20,000 shares of the Company’s common stock under the 2010 Plan with an exercise price of $57.50.  The option vested on January 28, 2016. The option expires on the earliest of: (a) January 28, 2025; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability.

On May 20, 2015, the Company granted to Mr. Albright an option to purchase 40,000 shares of the Company’s common stock under the 2010 Plan, with an exercise price of $55.62. On February 26, 2016, this option was surrendered and an option to purchase 40,000 shares was granted on February 26, 2016 with identical terms. One-third of the option vested immediately and the remaining two-thirds vested on January 28, 2017 and January 28, 2018. The option expires on the earliest of: (a) January 28, 2025; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability.

On June 29, 2015, the Company granted to an officer of the Company an option to purchase 10,000 shares of the Company’s common stock under the 2010 Plan, with an exercise price of $57.54.  One-third of the option will vest on each of the first, second, and third anniversaries of the grant date, provided the recipient is an employee of the Company on such dates. In addition, any unvested portion of the option will vest upon a change in control. The option expires on the earliest of: (a) June 29, 2025; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability.

Effective as of August 4, 2017, the Company entered into amendments to the employment agreements and certain stock option award agreements and restricted share award agreements whereby such awards will fully vest following a change in control (as defined in the executive’s employment agreement) only if the executive’s employment is terminated without cause or if the executive resigns for good reason (as such terms are defined in the executive’s employment agreement), in each case, at any time during the 24-month period following the change in control.  

The Company used the Black-Scholes valuation pricing model to determine the fair value of its non-qualified stock option awards. The determination of the fair value of the awards is affected by the stock price as well as assumptions regarding a number of other variables. These variables include expected stock price volatility over the term of the awards, annual dividends, and a risk-free interest rate assumption.

A summary of the activity for the awards during the six months ended June 30, 2018, is presented below: 

				Wtd. Avg.
				Remaining
				Contractual		Aggregate
		Wtd. Avg.		Term		Intrinsic
Non-Qualified Stock Option Awards	Shares	Ex. Price		(Years)		Value
Outstanding at January 1, 2018	90,000	$	52.71
Granted	—		—
Exercised	—		—
Expired	—		—
Forfeited	—		—
Outstanding at June 30, 2018	90,000	$	52.71	6.48	$	792,300
Exercisable at January 1, 2018	73,000	$	51.94	6.88	$	843,968
Exercisable at June 30, 2018	90,000	$	52.71	6.48	$	792,300

A summary of the non-vested options for these awards during the six months ended June 30, 2018, is presented below:

		Fair Value
		of Shares
Non-Qualified Stock Option Awards	Shares	Vested
Non-Vested at January 1, 2018	17,000
Granted	—
Vested	(17,000)	$	952,068
Expired	—
Forfeited	—
Non-Vested at June 30, 2018	—

No options were granted during the six months ended June 30, 2018. No options were exercised during the six months ended June 30, 2018. As of June 30, 2018, there is no unrecognized compensation cost related to non-qualified, non-vested stock option awards.

LIABILITY-CLASSIFIED STOCK COMPENSATION

The Company previously had a stock option plan (the “2001 Plan”) pursuant to which 500,000 shares of the Company’s common stock were eligible for issuance. The 2001 Plan expired in 2010, and no new stock options may be issued under the 2001 Plan. Under the 2001 Plan, both stock options and stock appreciation rights were issued in prior years and such issuances were deemed to be liability-classified awards under the Share-Based Payment Topic of FASB ASC, which are required to be remeasured at fair value at each balance sheet date until the award is settled.

There was no remaining liability as of December 31, 2017 because there were no options outstanding and exercisable as of December 31, 2017.

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INCOME TAXES

6 Months Ended

Jun. 30, 2018

INCOME TAXES

INCOME TAXES

NOTE 18. INCOME TAXES

The Company’s effective income tax rate was 24.9% and 38.5% for the six months ended June 30, 2018 and 2017, respectively, with the reduction being primarily attributable to the reduction in the Federal corporate tax rate from 35% to 21% resulting from the Tax Cuts and Jobs Act effective January 1, 2018. The provision for income taxes reflects the Company’s estimate of the effective rate expected to be applicable for the full fiscal year, adjusted for any discrete events, which are reported in the period that they occur. There were no discrete events during the six months ended June 30, 2018 or 2017.

The Company files a consolidated income tax return in the United States Federal jurisdiction and the states of Arizona, Colorado, California, Florida, Illinois, Georgia, Maryland, Massachusetts, North Carolina, Oregon, Texas, Virginia and Washington. The Internal Revenue Service has audited the federal tax returns through the year 2012, with all proposed adjustments settled. The Florida Department of Revenue has audited the Florida tax returns through the year 2014, with all proposed adjustments settled. The Company recognizes all potential accrued interest and penalties to unrecognized tax benefits in income tax expense.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2018

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 19. COMMITMENTS AND CONTINGENCIES

Legal Proceedings

From time to time, the Company may be a party to certain legal proceedings, incidental to the normal course of its business. While the outcome of the legal proceedings cannot be predicted with certainty, the Company does not expect that these proceedings will have a material effect upon our financial condition or results of operations.

On November 21, 2011, the Company, Indigo Mallard Creek LLC and Indigo Development LLC, as owners of the property leased to Harris Teeter, Inc. (“Harris Teeter”) in Charlotte, North Carolina, were served with pleadings filed in the General Court of Justice, Superior Court Division for Mecklenburg County, North Carolina, for a highway condemnation action involving this property. The proposed road modifications would impact access to the property. The Company does not believe the road modifications provided a basis for Harris Teeter to terminate the Lease. Regardless, in January 2013, the North Carolina Department of Transportation (“NCDOT”) proposed to redesign the road modifications to keep the all access intersection open for ingress with no change to the planned limitation on egress to the right-in/right-out only. Additionally, NCDOT and the City of Charlotte proposed to build and maintain a new access road/point into the property. Construction has begun and is not expected to be completed before mid-2018 to 2019. Harris Teeter has expressed satisfaction with the redesigned project and indicated that it will not attempt to terminate its lease if this project is built as currently redesigned. Because the redesigned project will not be completed until mid-2018 to 2019, the condemnation case has been placed in administrative closure. As a result, the trial and mediation will not likely be scheduled until requested by the parties, most likely in 2019.

On April 5, 2018, a complaint was filed in the United States District Court for the Eastern District of New York (the “Complaint”) which alleged that certain aspects of Proposal 4 (the “Equity Plan Proposal”) contained in the Company’s Notice of Annual Meeting of Shareholders and 2018 Proxy Statement filed with the SEC on March 12, 2018 (the “2018 Proxy Statement”) did not comply with the disclosure requirements for proxy statements pursuant to SEC regulations. The Complaint alleged that the Equity Plan Proposal did not state the number of participants, employees, and nonemployee directors of the Company and its subsidiaries who may be eligible to participate in the Company’s equity incentive plan (the “CTO Equity Plan”). The Complaint sought injunctive relief and an award of attorney’s fees and expenses. While the Company believes the 2018 Proxy Statement was compliant with applicable SEC disclosure rules and that the Complaint is without merit, the Company voluntarily made a supplemental disclosure in its additional proxy materials reiterating that the Company currently has 14 employees and 7 nonemployee directors, and that the Company’s subsidiaries have no employees, and therefore the total number of persons currently eligible to receive equity awards under the CTO Equity Plan is 21. On July 2, 2018, the Company paid an immaterial settlement amount associated with the legal fees of the plaintiff and the Complaint was dismissed.

Contractual Commitments – Expenditures

In conjunction with the Company’s sale of approximately 3.4 acres of land to RaceTrac in December 2013, the Company agreed to reimburse RaceTrac for a portion of the costs for road improvements and the other costs associated with bringing multiple ingress/egress points to the entire 23-acre Williamson Crossing site, including the Company’s remaining 19.6 acres. The total cost for the improvements was approximately $1.26 million and the Company has committed to reimburse RaceTrac in an amount equal to $976,500.  In 2013 the Company deposited $283,500 of cash in escrow related to the improvements, which was previously classified as restricted cash in the consolidated balance sheets. In the second quarter of 2018, the Company received confirmation that the required improvements were completed by RaceTrac. Accordingly, $283,500 was paid to RaceTrac leaving no remaining escrow balance as of June 30, 2018. As of June 30, 2018, the remaining commitment is approximately $693,000 which can be paid over five years from the proceeds from sales of the remaining land or at the end of the fifth year.

In conjunction with the Company’s sale of approximately 18.1 acres of land to an affiliate of Sam’s Club (“Sam’s”) in December 2015, the Company agreed to reimburse Sam’s for a portion of their construction costs applicable to adjacent outparcels retained by the Company. As a result, in December 2015, the Company deposited $125,000 of cash in escrow related to construction work which is classified as restricted cash in the consolidated balance sheets. The total amount in escrow as of June 30, 2018 was approximately $125,000, including accrued interest. Accordingly, the Company’s maximum commitment related to the construction work benefitting the outparcels adjacent to Sam’s land parcel is approximately $125,000, to be paid from escrow upon completion.

During April of 2018, the Company executed a contract with a third party to complete tenant improvements at The Grove at Winter Park property in Winter Park, Florida for a total of approximately $638,000. The Company has incurred approximately $596,000 of these costs as of June 30, 2018, leaving a remaining commitment of approximately $42,000.

In connection with the Golf Course Land Purchase, each year the Company is obligated to pay the Per-Round Surcharge with an annual minimum Per-Round Surcharge of $70,000 and a maximum aggregate amount of the Per-Round Surcharges paid equal to $700,000. The maximum amount of $700,000 represents contingent consideration and was recorded as an increase in Golf Buildings, Improvements, and Equipment and Accrued and Other Liabilities in the accompany consolidated balance sheets during the year ended December 31, 2017. The first annual payment of $70,000 was made in January of 2018, leaving a remaining commitment of $630,000 as of June 30, 2018.

Contractual Commitments – Land Pipeline

As of August 1, 2018, the Company’s pipeline of potential land sales transactions included the following seventeen potential transactions with fourteen different buyers, representing nearly 4,300 acres or approximately 78% of our land holdings:

		No. of Acres	Amount		Price		Estimated
	Transaction (Buyer)	(Rounded)	($000's)		per Acre		Timing
1	Commercial/Retail - O'Connor - West of I-95	850	$	34,000	$	40,000	'19 - '20
2	Commercial/Retail - O'Connor - East of I-95 (1)	123		29,250		238,000	'19
3	Residential (AR) - Minto Communities - West of I-95	1,614		26,500		16,000	Q4 '18
4	Residential (SF) - ICI Homes - West of I-95	1,016		21,000		21,000	'19
5	Residential (MF) - East of I-95	80		16,000		200,000	'19
6	Mixed-Use Retail - North American - East of I-95 (2)	35		14,362		409,000	Q4 '18
7	Commercial/Medical Office - East of I-95	32		8,089		253,000	'19 - '20
8	Residential (MF) - East of I-95 (3)	45		5,200		116,000	Q3 '18 & '20
9	Distribution/Warehouse - VanTrust - East of I-95	71		5,000		70,000	'19
10	Commercial/Retail - East of I-95	20		4,250		213,000	Q4 '18
11	Commercial/Retail - East of I-95	9		3,300		367,000	Q4 '18 - '19
12	Commercial/Distribution - VanTrust - East of I-95	26		3,215		124,000	'18 - '19
13	Residential (SF) - West of I-95 (4)	200		3,175		16,000	Q4 '18 & '20
14	Auto Dealership - West of I-95	13		2,000		154,000	Q4 '18
15	Commercial/Retail - East of I-95	2		1,500		682,000	'19 - '20
16	Residential (SF) - ICI Homes - West of I-95	146		1,400		10,000	'19
17	Commercial/Medical Office - East of I-95	4		935		234,000	Q4 '18
	Total (Average)	4,286	$	179,176	$	42,000

(1)Land sales transaction which requires the Company to incur the cost to provide the requisite mitigation credits necessary for obtaining the applicable regulatory permits for the buyer, with such costs representing either our basis in the credits that we own, or potentially up to 5% - 10% of the contract amount noted.

(2)Pursuant to the contract, amount includes the reimbursement of infrastructure costs incurred by the Company for Tomoka Town Center plus interest accrued as of December 31, 2017.

(3)The acres and amount include the buyer’s option to acquire approximately 19 acres for $2.0 million, in addition to the base contract of approximately 26 acres for $3.2 million.

(4)The acres and amount include the buyer’s option to acquire approximately 71 acres for $925,000, in addition to the base contract of approximately 129 acres for $2.25 million.

As noted above, these agreements contemplate closing dates ranging from the second half of 2018 through fiscal year 2020, and although some of the transactions may close in 2018, the buyers are not contractually obligated to close until after 2018. Each of the transactions are in varying stages of due diligence by the various buyers including, in some instances, having made submissions to the planning and development departments of the City, and other permitting activities with other applicable governmental authorities including wetlands permits from the St. John’s River Water Management District and the U.S. Army Corps of Engineers and traffic analysis with the Florida Department of Transportation and Volusia County. In addition to other customary closing conditions, the majority of these transactions are conditioned upon the receipt of approvals or permits from those various governmental authorities, as well as other matters that are beyond our control. If such approvals are not obtained, the prospective buyers may have the ability to terminate their respective agreements prior to closing. As a result, there can be no assurances regarding the likelihood or timing of any one of these potential land transactions being completed or the final terms thereof, including the sales price.

Other Matters

In connection with a certain land sale contract to which the Company is a party, the purchaser’s pursuit of customary development entitlements gave rise to an inquiry by federal regulatory agencies regarding prior agricultural activities by the Company on such land. During the second quarter of 2015, we received a written information request regarding such activities. We submitted a written response to the information request along with supporting documentation. During the fourth quarter of 2015, based on discussions with the agency, a penalty related to this matter was deemed probable, and accordingly the estimated penalty of $187,500 was accrued as of December 31, 2015, for which payment was made during the quarter ended September 30, 2016. Also during the fourth quarter of 2015, the agency advised the Company that the resolution to the inquiry would likely require the Company to incur costs associated with wetlands restoration relating to approximately 148.4 acres of the Company’s land. At December 31, 2015, the Company’s third-party environmental engineers estimated the cost for such restoration activities to range from approximately $1.7 million to approximately $1.9 million. Accordingly, as of December 31, 2015, the Company accrued an obligation of approximately $1.7 million, representing the low end of the estimated range of possible restoration costs, and included such estimated costs on the consolidated balance sheets as an increase in the basis of our land and development costs associated with those and benefitting surrounding acres. As of June 30, 2016, the final proposal from the Company’s third-party environmental engineer was received reflecting a total cost of approximately $2.0 million. Accordingly, an increase in the accrual of approximately $300,000 was made during the second quarter of 2016. The Company has funded approximately $1.6 million of the total $2.0 million of estimated costs through June 30, 2018. The Company believes there is at least a reasonable possibility that the estimated remaining liability of approximately $464,000 could change within one year of the date of the consolidated financial statements, which in turn could have a material impact on the Company’s consolidated balance sheets and future cash flows. The Company evaluates its estimates on an ongoing basis; however, actual results may differ from those estimates.

During the first quarter of 2017, the Company completed the sale of approximately 1,581 acres of land to Minto Communities LLC which acreage represents a portion of the Company’s remaining $708,000 obligation. Accordingly, the Company deposited $423,000 of cash in escrow to secure performance on the obligation. The funds in escrow can be drawn upon completion of certain milestones including completion of restoration and annual required monitoring. The first such milestone was achieved during the fourth quarter of 2017 and $189,500 of the escrow was refunded leaving an escrow balance of approximately $234,000 as of June 30, 2018. Additionally, resolution of the regulatory matter required the Company to apply for an additional permit pertaining to an additional approximately 54.66 acres, which permit may require mitigation activities which the Company anticipates could be satisfied through the utilization of existing mitigation credits owned by the Company or the acquisition of mitigation credits. Resolution of this matter allowed the Company to obtain certain permits from the applicable federal or state regulatory agencies needed in connection with the closing of the land sale contract that gave rise to this matter. As of June 30, 2017, the Company determined that approximately 36 mitigation credits were required to be utilized, which represents approximately $298,000 in cost basis of the Company’s mitigation credits. Accordingly, the Company transferred the mitigation credits through a charge to direct cost of revenues of real estate operations during the three months ended June 30, 2017, thereby resolving the required mitigation activities related to the approximately 54.66 acres. In addition, in connection with other land sale contracts to which the Company is or may become a party, the pursuit of customary development entitlements by the potential purchasers may require the Company to utilize or acquire mitigation credits for the purpose of obtaining certain permits from the applicable federal or state regulatory agencies. Any costs incurred in connection with utilizing or acquiring such credits would be incorporated into the basis of the land under contract. No amounts related to such potential future costs have been accrued as of June 30, 2018.

During the period from the fourth quarter of 2015 through the first quarter of 2016, the Company received communications from Wintergreen Advisers, LLC (“Wintergreen”), some of which have been filed publicly. In investigating Wintergreen’s allegations contained in certain of these communications, in pursuing the strategic alternatives process suggested by Wintergreen, and in engaging in a proxy contest in 2017, the Company has incurred costs of approximately $3.0 million through December 31, 2017. Approximately $1.6 million of the approximately $3.0 million was incurred during the year ended December 31, 2017, of which approximately $1.2 million is specifically for legal representation and third-party costs related to the proxy contest. In addition to the costs incurred through December 31, 2017, during the six months ended June 30, 2018, the Company incurred approximately $944,000, which includes legal representation and third-party costs arising from shareholder-related matters, including the proxy contest in 2018. None of Wintergreen’s allegations, which included allegations regarding inadequate disclosure and other wrong-doing by the Company and its directors and officers, were found to have any basis or merit.

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BUSINESS SEGMENT DATA

6 Months Ended

Jun. 30, 2018

BUSINESS SEGMENT DATA

BUSINESS SEGMENT DATA

NOTE 20. BUSINESS SEGMENT DATA

The Company operates in four primary business segments: income properties, commercial loan investments, real estate operations, and golf operations. Our income property operations consist primarily of income-producing properties, and our business plan is focused on investing in additional income-producing properties. Our income property operations accounted for 87.5% and 83.4% of our identifiable assets as of June 30, 2018 and December 31, 2017, respectively, and 49.1% and 23.8% of our consolidated revenues for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, we have one commercial loan investment, a fixed-rate first mortgage loan. Our real estate operations primarily consist of revenues generated from land transactions and leasing, royalty income, and revenue from the release of surface entry rights from our Subsurface Interests. Our golf operations consist of a single property located in Daytona Beach, Florida, with two 18-hole championship golf courses, a practice facility, and clubhouse facilities, including a restaurant and bar operation, fitness facility, and pro-shop with retail merchandise. The majority of the revenues generated by our golf operations are derived from members and public customers playing golf, club memberships, and food and beverage operations.

The Company reports performance based on profit or loss from operations before income taxes. The Company’s reportable segments are strategic business units that offer different products. They are managed separately because each segment requires different management techniques, knowledge, and skills.

Information about the Company’s operations in the different segments for the three and six months ended June 30, 2018 and 2017 is as follows: 

	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Revenues:
Income Properties	$	9,781,299	$	7,565,007	$	18,987,026	$	14,638,247
Commercial Loan Investments		273,467		553,159		574,466		1,089,648
Real Estate Operations		2,484,314		13,257,355		16,463,644		42,731,815
Golf Operations		1,282,918		1,383,513		2,637,274		2,858,457
Agriculture and Other Income		11,187		78,749		22,374		232,900
Total Revenues	$	13,833,185	$	22,837,783	$	38,684,784	$	61,551,067
Operating Income:
Income Properties	$	7,746,410	$	5,935,492	$	15,083,108	$	11,597,019
Commercial Loan Investments		273,467		553,159		574,466		1,089,648
Real Estate Operations		1,614,044		7,464,826		14,057,712		27,782,437
Golf Operations		(242,135)		(18,406)		(269,604)		(42,140)
Agriculture and Other Income		6,015		48,213		12,030		161,927
General and Corporate Expense		(6,284,119)		(5,942,877)		(13,008,046)		(11,925,599)
Other Gains and Income		18,384,808		—		22,035,666		2,226,526
Total Operating Income	$	21,498,490	$	8,040,407	$	38,485,332	$	30,889,818
Depreciation and Amortization:
Income Properties	$	3,746,762	$	3,108,494	$	7,534,177	$	5,794,806
Golf Operations		99,393		95,323		202,949		160,690
Agriculture and Other		8,783		11,873		18,191		22,769
Total Depreciation and Amortization	$	3,854,938	$	3,215,690	$	7,755,317	$	5,978,265
Capital Expenditures:
Income Properties	$	969,326	$	22,748,812	$	28,884,588	$	44,686,344
Real Estate Operations		1,393,811		—		3,505,794		—
Golf Operations		22,217		266,758		24,880		1,874,500
Agriculture and Other		10,785		38,945		11,338		51,028
Total Capital Expenditures	$	2,396,139	$	23,054,515	$	32,426,600	$	46,611,872

	As of
	June 30, 2018		December 31, 2017
Identifiable Assets:
Income Properties	$	420,261,037	$	388,602,721
Commercial Loan Investments		2,994,916		11,963,777
Real Estate Operations		41,388,054		43,296,528
Golf Operations		5,709,161		6,262,634
Agriculture and Other		10,196,478		16,004,718
Total Assets	$	480,549,646	$	466,130,378

Operating income represents income from continuing operations before loss on early extinguishment of debt, interest expense, investment income, and income taxes. General and corporate expenses are an aggregate of general and administrative expenses, impairment charges, and depreciation and amortization expense. Other gains and income consist of land lease termination income and gains (losses) on the disposition of assets. Identifiable assets by segment are those assets that are used in the Company’s operations in each segment. Other assets consist primarily of cash, property, plant, and equipment related to the other operations, as well as the general and corporate operations.

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DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS (Policies)

6 Months Ended

Jun. 30, 2018

DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS

Interim Financial Information

Interim Financial Information

The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited consolidated financial statements do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, which provides a more complete understanding of the Company’s accounting policies, financial position, operating results, business properties, and other matters. The unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the financial position of the Company and the results of operations for the interim periods.

The results of operations for the six months ended June 30, 2018 are not necessarily indicative of results to be expected for the year ending December 31, 2018.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and other entities in which we have a controlling interest. Any real estate entities or properties included in the consolidated financial statements have been consolidated only for the periods that such entities or properties were owned or under control by us. All inter-company balances and transactions have been eliminated in the consolidated financial statements.

Use of Estimates in Preparation of Financial Statements

Use of Estimates in Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which amends its guidance on the recognition and reporting of revenue from contracts with customers. In April 2016, the FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers was issued. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company completed its evaluation of the provisions during the year ended December 31, 2017 and determined there was no impact on the Company’s revenue recognition within the consolidated financial statements. All required disclosures relating to FASB ASC Topic 606 have been implemented herein as required by the standard. The Company adopted FASB ASC Topic 606 effective January 1, 2018 utilizing the modified retrospective method.

In January 2016, the FASB issued ASU 2016-01, relating to the recognition and measurement of financial assets and financial liabilities. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2016-01 effective January 1, 2018 and determined there was no material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, which requires entities to recognize assets and liabilities that arise from financing and operating leases and to classify those finance and operating lease payments in the financing or operating sections, respectively, of the statement of cash flows pursuant to FASB ASC Topic 842, Leases. The amendments in this update are effective for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating FASB ASC Topic 842, Leases to determine the potential impact, if any, the adoption will have on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, which clarifies the appropriate classification of certain cash receipts and payments in the statement of cash flows. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2016-15 effective January 1, 2018 and determined there was no material impact on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, which addresses diversity in the classification and presentation of changes in restricted cash in the statement of cash flows as operating, investing, or financing activities. The Company adopted ASU 2016-18 effective January 1, 2018 and has classified the changes in restricted cash between operating, investing, and financing in the consolidated statements of cash flows as applicable per the new guidance. 

In February 2018, the FASB issued ASU 2018-02, which amends the guidance allowing for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this update are effective for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the provisions to determine the potential impact, if any, the adoption will have on its consolidated financial statements. 

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, bank demand accounts, and money market accounts having original maturities of 90 days or less. The Company’s bank balances as of June 30, 2018 include certain amounts over the Federal Deposit Insurance Corporation limits. 

Restricted Cash

Restricted Cash

Restricted cash totaled approximately $2.4 million at June 30, 2018 of which approximately $1.2 million is being held in three separate escrow accounts related to three separate land transactions which closed in December 2013, February 2017, and March 2018; approximately $127,000 is being held in a reserve for interest and property taxes for the $3.0 million first mortgage loan investment originated in July 2017; approximately $185,000 is being held in a capital replacement reserve account in connection with our financing of six income properties with Wells Fargo Bank, NA (“Wells Fargo”); and approximately $918,000 is being held in a leasing reserve in connection with our acquisition of the property in Aspen, Colorado in February 2018.

Derivative Financial Instruments and Hedging Activity

Derivative Financial Instruments and Hedging Activity

Interest Rate Swap. In conjunction with the variable-rate mortgage loan secured by our property located in Raleigh, North Carolina leased to Wells Fargo, the Company entered into an interest rate swap to fix the interest rate (the “Interest Rate Swap”). The Company accounts for its cash flow hedging derivative in accordance with FASB ASC Topic 815-20, Derivatives and Hedging. Depending upon the hedge’s value at each balance sheet date, the derivative is included in either Other Assets or Accrued and Other Liabilities on the consolidated balance sheet at its fair value. On the date the Interest Rate Swap was entered into, the Company designated the derivative as a hedge of the variability of cash flows to be paid related to the recognized long-term debt liability.

The Company formally documented the relationship between the hedging instrument and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. At the hedge’s inception, the Company formally assessed whether the derivative that is used in hedging the transaction is highly effective in offsetting changes in cash flows of the hedged item, and we will continue to do so on an ongoing basis. As the terms of the Interest Rate Swap and the associated debt are identical, the Interest Rate Swap qualifies for the shortcut method, therefore, it is assumed that there is no hedge ineffectiveness throughout the entire term of the Interest Rate Swap.

Changes in fair value of the Interest Rate Swap that are highly effective and designated and qualified as a cash-flow hedge are recorded in other comprehensive income and loss, until earnings are affected by the variability in cash flows of the designated hedged item.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial assets and liabilities including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued and other liabilities at June 30, 2018 and December 31, 2017, approximate fair value because of the short maturity of these instruments. The carrying amount of the Company’s investments in variable rate commercial loans approximates fair value at December 31, 2017, since the floating rates of the loans reasonably approximate current market rates for notes with similar risks and maturities. There were no investments in variable rate commercial loans as of June 30, 2018. The carrying value of the Company’s credit facility approximates current market rates for revolving credit arrangements with similar risks and maturities. The face value of the Company’s fixed rate commercial loan investment, mortgage notes, and convertible debt is measured at fair value based on current market rates for financial instruments with similar risks and maturities. See Note 7, “Fair Value of Financial Instruments.”

Fair Value Measurements

Fair Value Measurements

The Company’s estimates of fair value of financial and non-financial assets and liabilities is based on the framework established by GAAP. The framework specifies a hierarchy of valuation inputs which was established to increase consistency, clarity and comparability in fair value measurements and related disclosures. GAAP describes a fair value hierarchy based upon three levels of inputs that may be used to measure fair value, two of which are considered observable and one that is considered unobservable. The following describes the three levels:

· Level 1 – Valuation is based upon quoted prices in active markets for identical assets or liabilities.

· Level 2 – Valuation is based upon inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

· Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include option pricing models, discounted cash flow models and similar techniques.

Classification of Commercial Loan Investments

Classification of Commercial Loan Investments

Loans held for investment are stated at the principal amount outstanding and include the unamortized deferred loan fees offset by any applicable unaccreted purchase discounts and origination fees, if applicable. Loans held for sale are classified separately and stated at the lower of cost or fair value once a decision has been made to sell loans not previously for sale.

Commercial Loan Investment Impairment

Commercial Loan Investment Impairment

For each of the Company’s commercial loans held for investment, the Company evaluates the performance of the collateral property and the financial and operating capabilities of the borrower/guarantor, in part to assess whether any deterioration in the credit has occurred, and for possible impairment of the loan. Impairment would reflect the Company’s determination that it is probable that all amounts due according to the contractual terms of the loan would not be collected. Impairment is measured based on the present value of the expected future cash flows from the loan discounted at the effective rate of the loan or the fair value of the collateral. Upon measurement of impairment, the Company would record an allowance to reduce the carrying value of the loan with a corresponding recognition of loss in the results of operations. Significant exercise of judgment is required in determining impairment, including assumptions regarding the estimate of expected future cash flows, collectability of the loan, the value of the underlying collateral and other provisions including guarantees. The Company has determined that, as of June 30, 2018 and December 31, 2017, no allowance for impairment was required.

Recognition of Interest Income from Commercial Loan Investments

Recognition of Interest Income from Commercial Loan Investments

Interest income on commercial loan investments includes interest payments made by the borrower and the accretion of purchase discounts and loan origination fees, offset by the amortization of loan costs. Interest payments are accrued based on the actual coupon rate and the outstanding principal balance, and purchase discounts and loan origination fees are accreted into income using the effective yield method, adjusted for prepayments.

Impact Fees and Mitigation Credits

Impact Fees and Mitigation Credits

Impact fees and mitigation credits are stated at historical cost. As these assets are sold, the related revenues and cost basis are reported as revenues from, and direct costs of, real estate operations, respectively, in the consolidated statements of operations.

Accounts Receivable

Accounts Receivable

Accounts receivable related to income properties, which are classified in other assets on the consolidated balance sheets, primarily consist of tenant reimbursable expenses. Receivables related to tenant reimbursable expenses totaled approximately $1.3 million and $895,000 as of June 30, 2018 and December 31, 2017, respectively.

Accounts receivable related to real estate operations, which are classified in other assets on the consolidated balance sheets, totaled approximately $2.1 million and $2.2 million as of as of June 30, 2018 and December 31, 2017, respectively. As more fully described in Note 10, “Other Assets,” these accounts receivable are primarily related to the reimbursement of certain infrastructure costs completed by the Company in conjunction with two land sale transactions that closed during the fourth quarter of 2015.

Trade accounts receivable primarily consist of receivables related to the golf operations, which are classified in other assets on the consolidated balance sheets. Trade accounts receivable related to golf operations, which primarily consist of amounts due from members or from private events, totaled approximately $287,000 and $349,000 as of June 30, 2018 and December 31, 2017, respectively.  

The collectability of the aforementioned receivables is determined based on the aging of the receivable and a review of the specifically identified accounts using judgments. As of June 30, 2018 and December 31, 2017, no allowance for doubtful accounts was required.

Purchase Accounting for Acquisitions of Real Estate Subject to a Lease

Purchase Accounting for Acquisitions of Real Estate Subject to a Lease

In accordance with the FASB guidance on business combinations, the fair value of the real estate acquired with in-place leases is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their relative fair values.

The fair value of the tangible assets of an acquired leased property is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, building and tenant improvements based on the determination of the fair values of these assets.

In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as other assets or liabilities based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease, including the probability of renewal periods. The capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. The capitalized below-market lease values are amortized as an increase to rental income over the initial term unless the Company believes that it is likely that the tenant will renew the option whereby the Company amortizes the value attributable to the renewal over the renewal period.

The aggregate value of other acquired intangible assets, consisting of in-place leases, is measured by the excess of (i) the purchase price paid for a property after adjusting existing in-place leases to market rental rates over (ii) the estimated fair value of the property as-if-vacant, determined as set forth above. The value of in-place leases exclusive of the value of above-market and below-market in-place leases is amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off. The value of tenant relationships is reviewed on individual transactions to determine if future value was derived from the acquisition.

In January 2017, the FASB issued ASU 2017-01, Business Combinations which clarified the definition of a business. Pursuant to ASU 2017-01, the acquisition of an income property subject to a lease no longer qualifies as a business combination, but rather an asset acquisition, accordingly acquisition costs have been capitalized.

Sales of Real Estate

Sales of Real Estate

Gains and losses on sales of real estate are accounted for as required by FASB ASC Topic 606, Revenue from Contracts with Customers. The Company recognizes revenue from the sales of real estate when the Company transfers the promised goods and/or services in the contract based on the transaction price allocated to the performance obligations within the contract. As market information becomes available, real estate cost basis is analyzed and recorded at the lower of cost or market.

Income Taxes

Income Taxes

The Company uses the asset and liability method to account for income taxes. Deferred income taxes result primarily from the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. See Note 18, “Income Taxes.” In June 2006, the FASB issued additional guidance, which clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements included in income taxes. The interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The interpretation also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. In accordance with FASB guidance included in income taxes, the Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. Additionally, the Company believes that its accruals for tax liabilities are adequate. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to the FASB guidance.

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REVENUE RECOGNITION (Tables)

6 Months Ended

Jun. 30, 2018

REVENUE RECOGNITION

Summary of revenue by segment, major good and/or service, and the related timing of revenue recognition

The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the three months ended June 30, 2018:

				Interest Income
		Income		from Commercial		Real Estate		Golf		Agriculture and		Total
		Properties		Loan Investments		Operations		Operations		Other Income		Revenues
		($000's)		($000's)		($000's)		($000's)		($000's)		($000's)
Major Good / Service:
	Lease Revenue - Base Rent	$	7,365	$	—	$	—	$	—	$	11	$	7,376
	Lease Revenue - CAM		891		—		—		—		—		891
	Lease Revenue - Reimbursements		801		—		—		—		—		801
	Lease Revenue - Billboards		70		—		—		—		—		70
	Above / Below Market Lease Accretion		600		—		—		—		—		600
	Contributed Leased Assets Accretion		85		—		—		—		—		85
	Lease Incentive Amortization		(76)		—		—		—		—		(76)
	Interest from Commercial Loan Investments		—		274		—		—		—		274
	Land Sale Revenue		—		—		1,734		—		—		1,734
	Impact Fee and Mitigation Credit Sales		—		—		470		—		—		470
	Subsurface Lease Revenue		—		—		201		—		—		201
	Subsurface Revenue - Other		—		—		79		—		—		79
	Golf Operations		—		—		—		1,283		—		1,283
	Interest and Other Revenue		45		—		—		—		—		45
	Total Revenues	$	9,781	$	274	$	2,484	$	1,283	$	11	$	13,833
Timing of Revenue Recognition:
	Asset/Good Transferred at a Point in Time	$	—	$	—	$	2,283	$	1,041	$	—	$	3,324
	Services Transferred Over Time		45		—		—		242		—		287
	Over Lease Term		9,736		—		201		—		11		9,948
	Commercial Loan Investment Related Revenue		—		274		—		—		—		274
	Total Revenues	$	9,781	$	274	$	2,484	$	1,283	$	11	$	13,833

The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the three months ended June 30, 2017:

				Interest Income
		Income		from Commercial		Real Estate		Golf		Agriculture and		Total
		Properties		Loan Investments		Operations		Operations		Other Income		Revenues
		($000's)		($000's)		($000's)		($000's)		($000's)		($000's)
Major Good / Service:
	Lease Revenue - Base Rent	$	6,114	$	—	$	—	$	—	$	11	$	6,125
	Lease Revenue - CAM		466		—		—		—		—		466
	Lease Revenue - Reimbursements		371		—		—		—		—		371
	Lease Revenue - Billboards		65		—		—		—		—		65
	Above / Below Market Lease Accretion		550		—		—		—		—		550
	Interest from Commercial Loan Investments		—		553		—		—		—		553
	Land Sale Revenue		—		—		10,858		—		—		10,858
	Revenue from Reimbursement of Infrastructure Costs		—		—		955		—		—		955
	Impact Fee and Mitigation Credit Sales		—		—		1,222		—		—		1,222
	Subsurface Lease Revenue		—		—		201		—		—		201
	Subsurface Revenue - Other		—		—		21		—		—		21
	Golf Operations		—		—		—		1,384		—		1,384
	Timber Sales Revenue		—		—		—		—		68		68
	Interest and Other Revenue		(1)		—		—		—		—		(1)
	Total Revenues	$	7,565	$	553	$	13,257	$	1,384	$	79	$	22,838
Timing of Revenue Recognition:
	Asset/Good Transferred at a Point in Time	$	—	$	—	$	12,101	$	1,316	$	68	$	13,485
	Services Transferred Over Time		(1)		—		955		68		—		1,022
	Over Lease Term		7,566		—		201		—		11		7,778
	Commercial Loan Investment Related Revenue		—		553		—		—		—		553
	Total Revenues	$	7,565	$	553	$	13,257	$	1,384	$	79	$	22,838

The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the six months ended June 30, 2018:

				Interest Income
		Income		from Commercial		Real Estate		Golf		Agriculture and		Total
		Properties		Loan Investments		Operations		Operations		Other Income		Revenues
		($000's)		($000's)		($000's)		($000's)		($000's)		($000's)
Major Good / Service:
	Lease Revenue - Base Rent	$	14,787	$	—	$	—	$	—	$	22	$	14,809
	Lease Revenue - CAM		1,505		—		—		—		—		1,505
	Lease Revenue - Reimbursements		1,365		—		—		—		—		1,365
	Lease Revenue - Billboards		134		—		—		—		—		134
	Above / Below Market Lease Accretion		1,179		—		—		—		—		1,179
	Contributed Leased Assets Accretion		95		—		—		—		—		95
	Lease Incentive Amortization		(151)		—		—		—		—		(151)
	Interest from Commercial Loan Investments		—		575		—		—		—		575
	Land Sale Revenue		—		—		14,851		—		—		14,851
	Impact Fee and Mitigation Credit Sales		—		—		586		—		—		586
	Subsurface Lease Revenue		—		—		400		—		—		400
	Subsurface Revenue - Other		—		—		626		—		—		626
	Golf Operations		—		—		—		2,638		—		2,638
	Interest and Other Revenue		73		—		—		—		—		73
	Total Revenues	$	18,987	$	575	$	16,463	$	2,638	$	22	$	38,685
Timing of Revenue Recognition:
	Asset/Good Transferred at a Point in Time	$	—	$	—	$	16,063	$	2,136	$	—	$	18,199
	Services Transferred Over Time		73		—		—		502		—		575
	Over Lease Term		18,914		—		400		—		22		19,336
	Commercial Loan Investment Related Revenue		—		575		—		—		—		575
	Total Revenues	$	18,987	$	575	$	16,463	$	2,638	$	22	$	38,685

The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the six months ended June 30, 2017:

				Interest Income
		Income		from Commercial		Real Estate		Golf		Agriculture and		Total
		Properties		Loan Investments		Operations		Operations		Other Income		Revenues
		($000's)		($000's)		($000's)		($000's)		($000's)		($000's)
Major Good / Service:
	Lease Revenue - Base Rent	$	11,668	$	—	$	—	$	—	$	22	$	11,690
	Lease Revenue - CAM		965		—		—		—		—		965
	Lease Revenue - Reimbursements		791		—		—		—		—		791
	Lease Revenue - Billboards		126		—		—		—		—		126
	Above / Below Market Lease Accretion		1,081		—		—		—		—		1,081
	Interest from Commercial Loan Investments		—		1,090		—		—		—		1,090
	Land Sale Revenue		—		—		39,564		—		—		39,564
	Revenue from Reimbursement of Infrastructure Costs		—		—		1,276		—		—		1,276
	Impact Fee and Mitigation Credit Sales		—		—		1,439		—		—		1,439
	Subsurface Lease Revenue		—		—		400		—		—		400
	Subsurface Revenue - Other		—		—		53		—		—		53
	Golf Operations		—		—		—		2,858		—		2,858
	Timber Sales Revenue		—		—		—		—		211		211
	Interest and Other Revenue		7		—		—		—		—		7
	Total Revenues	$	14,638	$	1,090	$	42,732	$	2,858	$	233	$	61,551
Timing of Revenue Recognition:
	Asset/Good Transferred at a Point in Time	$	—	$	—	$	41,056	$	2,647	$	211	$	43,914
	Services Transferred Over Time		7		—		1,276		211		—		1,494
	Over Lease Term		14,631		—		400		—		22		15,053
	Commercial Loan Investment Related Revenue		—		1,090		—		—		—		1,090
	Total Revenues	$	14,638	$	1,090	$	42,732	$	2,858	$	233	$	61,551

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INCOME PROPERTIES (Tables)

6 Months Ended

Jun. 30, 2018

INCOME PROPERTIES

Schedule of income properties acquired

Tenant Description	Tenant Type	Property Location	Date of Acquisition	Property Square-Feet	Property Acres	Purchase Price		Percentage Leased		Remaining Lease Term (in years)
Master Tenant for Commercial Building	Single-Tenant	Aspen, Colorado	02/21/18	19,596	0.18	$	28,000,000		100%		20.0

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COMMERCIAL LOAN INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2018

COMMERCIAL LOAN INVESTMENTS

Schedule of components of commercial loan investment portfolio

The Company’s commercial loan investment was comprised of the following at June 30, 2018:

	Date of	Maturity	Original Face		Current Face		Carrying
Description	Investment	Date	Amount		Amount		Value		Coupon Rate
First Mortgage – Land Parcel, Daytona Beach Shores, FL	July 2017	August 2018		3,000,000		3,000,000		2,994,916	11.00%

The carrying value of the commercial loan investment portfolio at June 30, 2018 consisted of the following:

	Total
Current Face Amount	$	3,000,000
Unamortized Fees		—
Unaccreted Origination Fees		(5,084)
Total Commercial Loan Investments	$	2,994,916

The Company’s commercial loan investment portfolio was comprised of the following at December 31, 2017:

	Date of	Maturity	Original Face		Current Face		Carrying
Description	Investment	Date	Amount		Amount		Value		Coupon Rate
B-Note – Retail Shopping Center, Sarasota, FL	May 2014	June 2018	$	8,960,467	$	8,960,467	$	8,960,467	30 ‑day LIBOR plus 7.50%
First Mortgage – Land Parcel, Daytona Beach Shores, FL	July 2017	August 2018		3,000,000		3,000,000		2,965,232	11.00%
Total			$	11,960,467	$	11,960,467	$	11,925,699

The carrying value of the commercial loan investment portfolio at December 31, 2017 consisted of the following:

	Total
Current Face Amount	$	11,960,467
Unamortized Fees		—
Unaccreted Origination Fees		(34,768)
Total Commercial Loan Investments	$	11,925,699

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LAND AND SUBSURFACE INTERESTS (Tables)

6 Months Ended

Jun. 30, 2018

LAND AND SUBSURFACE INTERESTS

Schedule of components of real estate operations revenue

		Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Revenue Description	($000's)		($000's)		($000's)		($000's)
Land Sales Revenue	$	1,734	$	10,858	$	14,851	$	39,564
Revenue from Reimbursement of Infrastructure Costs		—		955		—		1,276
Impact Fee and Mitigation Credit Sales		470		1,222		586		1,439
Subsurface Revenue		280		222		1,026		453
Total Real Estate Operations Revenue	$	2,484	$	13,257	$	16,463	$	42,732

Schedule of lease payments on respective acreages and drilling penalties received

	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
Lease Year 7 - 9/23/2017 - 9/22/2018	15,000	Hendry		806,683		50,000
Total Payments Received to Date			$	9,827,121	$	1,975,000

(1)Generally, cash payment for the Lease Payment and Drilling Penalty is received on or before the first day of the lease year. The Drilling Penalty, which is due within thirty days from the end of the prior lease year, is recorded as revenue when received, while the Lease Payment is recognized on a straight-line basis over the respective lease term. Pursuant to the amendment for the Year 7 renewal, the Lease Payment and Drilling Penalty were both received on October 11, 2017. See separate disclosure of revenue recognized per period below.

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INVESTMENT IN JOINT VENTURE (Tables)

6 Months Ended

Jun. 30, 2018

INVESTMENT IN JOINT VENTURE

Summarized financial information of the Company’s JV Investment

	As of
	June 30, 2018
	($000's)
Assets, cash and cash equivalents	$	2,409
Assets, investment in mitigation credit assets		1,424
Total Assets	$	3,833
Equity	$	3,833

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2018

FAIR VALUE OF FINANCIAL INSTRUMENTS

Schedule of carrying value and estimated fair value of financial instruments

	June 30, 2018				December 31, 2017
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
Cash and Cash Equivalents - Level 1	$	4,312,324	$	4,312,324	$	6,559,409	$	6,559,409
Restricted Cash - Level 1		2,419,686		2,419,686		6,508,131		6,508,131
Commercial Loan Investments - Level 2		2,994,916		3,031,501		11,925,699		12,015,628
Long-Term Debt - Level 2		177,133,608		179,596,049		195,816,364		200,000,776

Schedule of fair value of assets measured on recurring basis by Level

The following table presents the fair value of assets measured on a recurring basis by Level as of June 30, 2018:

			Fair Value at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets		Significant Other		Unobservable
			for Identical		Observable Inputs		Inputs
	6/30/2018		Assets (Level 1)		(Level 2)		(Level 3)
Cash Flow Hedge - Interest Rate Swap	$	912,767	$	—	$	912,767	$	—
Total	$	912,767	$	—	$	912,767	$	—

The following table presents the fair value of assets measured on a recurring basis by Level as of December 31, 2017:

			Fair Value at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets		Significant Other		Unobservable
			for Identical		Observable Inputs		Inputs
	12/31/2017		Assets (Level 1)		(Level 2)		(Level 3)
Cash Flow Hedge - Interest Rate Swap	$	606,621	$	—	$	606,621	$	—
Total	$	606,621	$	—	$	606,621	$	—

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INTANGIBLE LEASE ASSETS AND LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2018

INTANGIBLE LEASE ASSETS AND LIABILITIES

Schedule of components of intangible lease assets and liabilities

	As of
	June 30, 2018		December 31, 2017
Intangible Lease Assets:
Value of In-Place Leases	$	38,046,241	$	36,827,226
Value of Above Market In-Place Leases		2,966,322		2,966,322
Value of Intangible Leasing Costs		12,004,653		10,405,135
Sub-total Intangible Lease Assets		53,017,216		50,198,683
Accumulated Amortization		(14,411,170)		(11,440,624)
Sub-total Intangible Lease Assets—Net		38,606,046		38,758,059
Intangible Lease Liabilities (included in accrued and other liabilities):
Value of Below Market In-Place Leases		(36,109,518)		(35,312,017)
Sub-total Intangible Lease Liabilities		(36,109,518)		(35,312,017)
Accumulated Amortization		6,969,983		5,541,576
Sub-total Intangible Lease Liabilities—Net		(29,139,535)		(29,770,441)
Total Intangible Assets and Liabilities—Net	$	9,466,511	$	8,987,618

Schedule of amortization of intangible assets and liabilities

	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
	($000's)		($000's)		($000's)		($000's)
Depreciation and Amortization Expense	$	1,368	$	1,189	$	2,721	$	2,277
Increase to Income Properties Revenue		(600)		(550)		(1,179)		(1,081)
Net Amortization of Intangible Assets and Liabilities	$	768	$	639	$	1,542	$	1,196

Schedule of estimated future amortization and accretion of intangible lease assets and liabilities

			Future Accretion		Net Future
	Future		to Income		Amortization of
	Amortization		Property		Intangible Assets
Year Ending December 31,	Amount		Revenue		and Liabilities
Remainder of 2018	$	2,916,475	$	(1,182,672)	$	1,733,803
2019		5,452,670		(2,394,193)		3,058,477
2020		5,011,249		(2,327,464)		2,683,785
2021		3,320,813		(2,478,319)		842,494
2022		2,702,885		(2,549,480)		153,405
2023		2,359,734		(2,557,950)		(198,216)
Thereafter		14,985,245		(13,792,482)		1,192,763
Total	$	36,749,071	$	(27,282,560)	$	9,466,511

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OTHER ASSETS (Tables)

6 Months Ended

Jun. 30, 2018

OTHER ASSETS

Schedule of components of other assets

	As of
	June 30, 2018		December 31, 2017
Income Property Tenant Receivables	$	1,318,042	$	895,476
Income Property Straight-line Rent Adjustment		3,439,530		2,517,195
Income Property Lease Incentive		2,545,461		2,696,678
Interest Receivable from Commercial Loan Investments		—		38,078
Cash Flow Hedge - Interest Rate Swap		912,767		606,621
Infrastructure Reimbursement Receivables		2,117,840		2,213,305
Golf Operations Receivables		286,995		349,220
Deferred Deal Costs		471,966		480,257
Prepaid Expenses, Deposits, and Other		2,882,784		3,174,299
Total Other Assets	$	13,975,385	$	12,971,129

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COMMON STOCK AND EARNINGS PER SHARE (Tables)

6 Months Ended

Jun. 30, 2018

COMMON STOCK AND EARNINGS PER SHARE

Schedule of computation of earnings per share

		Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Income Available to Common Shareholders:
Net Income	$	14,162,908	$	3,678,908	$	25,075,207	$	16,425,300
Weighted Average Shares Outstanding		5,529,360		5,531,444		5,530,108		5,566,595
Common Shares Applicable to Stock
Options Using the Treasury Stock Method		—		14,008		31,683		16,463
Total Shares Applicable to Diluted Earnings Per Share		5,529,360		5,545,452		5,561,791		5,583,058
Per Share Information:
Basic
Net Income	$	2.56	$	0.67	$	4.53	$	2.95
Diluted
Net Income	$	2.56	$	0.66	$	4.51	$	2.94

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LONG-TERM DEBT (Tables)

6 Months Ended

Jun. 30, 2018

LONG-TERM DEBT

Schedule of outstanding indebtedness, at face value

As of June 30, 2018, the Company’s outstanding indebtedness, at face value, was as follows:

	Face		Maturity	Interest
	Value Debt		Date	Rate
Credit Facility	$	50,745,579	September 2021		30 ‑day LIBOR plus 1.50% -2.20%
Mortgage Note Payable (originated with Wells Fargo) (1)		30,000,000	October 2034		4.330%
Mortgage Note Payable (originated with Wells Fargo) (2)		24,886,938	April 2021		30 ‑day LIBOR plus 1.90%
4.50% Convertible Senior Notes due 2020, net of discount		75,000,000	March 2020		4.500%
Total Long-Term Face Value Debt	$	180,632,517

(1)Secured by the Company’s interest in six income properties. The mortgage loan carries a fixed rate of 4.33% per annum during the first ten years of the term, and requires payments of interest only during the first ten years of the loan. After the tenth anniversary of the effective date of the loan, the cash flows, as defined in the related loan agreement, generated by the underlying six income properties must be used to pay down the principal balance of the loan until paid off or until the loan matures. The loan is fully pre-payable after the tenth anniversary of the effective date of the loan.

(2)Secured by the Company’s income property leased to Wells Fargo located in Raleigh, North Carolina. The mortgage loan has a 5-year term with two years interest only, and interest and a 25-year amortization for the balance of the term.  The mortgage loan bears a variable rate of interest based on the 30-day LIBOR plus a rate of 190 basis points. The interest rate for this mortgage loan has been fixed through the use of an interest rate swap that fixed the rate at 3.17%.  The mortgage loan can be prepaid at any time subject to the termination of the interest rate swap.

Schedule of components of long-term debt

	June 30, 2018				December 31, 2017
			Due Within				Due Within
	Total		One Year		Total		One Year
Credit Facility	$	50,745,579	$	—	$	70,000,000	$	—
Mortgage Note Payable (originated with Wells Fargo)		30,000,000		—		30,000,000		—
Mortgage Note Payable (originated with Wells Fargo)		24,886,938		—		25,000,000		—
4.50% Convertible Senior Notes due 2020, net of discount		72,701,857		—		72,075,295		—
Loan Costs, net of accumulated amortization		(1,200,766)		—		(1,258,931)		—
Total Long-Term Debt	$	177,133,608	$	—	$	195,816,364	$	—

Schedule of payments applicable to reduction of principal amounts

Payments applicable to reduction of principal amounts as of June 30, 2018 will be required as follows:

Year Ending December 31,	Amount
2019	$	—
2020		75,000,000
2021		75,632,517
2022		—
2023		—
Thereafter		30,000,000
Total Long-Term Debt - Face Value	$	180,632,517

Schedule of carrying value of long-term debt

The carrying value of long-term debt as of June 30, 2018 consisted of the following:

	Total
Current Face Amount	$	180,632,517
Unamortized Discount on Convertible Debt		(2,298,143)
Loan Costs, net of accumulated amortization		(1,200,766)
Total Long-Term Debt	$	177,133,608

Schedule of interest expense on debt

The following table reflects a summary of interest expense incurred and paid during the three and six months ended June 30, 2018 and 2017:

	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
	($000's)		($000's)		($000's)		($000's)
Interest Expense	$	2,085	$	1,736	$	4,185	$	3,393
Amortization of Loan Costs		137		112		287		225
Amortization of Discount on Convertible Notes		316		296		627		588
Total Interest Expense	$	2,538	$	2,144	$	5,099	$	4,206
Total Interest Paid	$	1,291	$	887	$	4,190	$	3,438

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ACCRUED AND OTHER LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2018

ACCRUED AND OTHER LIABILITIES

Schedule of components of accrued and other liabilities

	As of
	June 30, 2018		December 31, 2017
Golf $1 Round Surcharge	$	630,000	$	700,000
Accrued Property Taxes		1,372,678		66,909
Tenant Leasing Reserve Escrow		917,748		—
Reserve for Tenant Improvements		136,157		3,302,831
Accrued Construction Costs		190,998		1,360,950
Accrued Interest		1,189,668		1,194,681
Environmental Reserve and Restoration Cost Accrual		572,197		866,936
Other		2,829,020		2,668,219
Total Accrued and Other Liabilities	$	7,838,466	$	10,160,526

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DEFERRED REVENUE (Tables)

6 Months Ended

Jun. 30, 2018

DEFERRED REVENUE

Schedule of components of deferred revenue

	As of
	June 30, 2018		December 31, 2017
Deferred Oil Exploration Lease Revenue	$	185,648	$	585,675
Deferred Revenue on Land Sales		846,545		—
Prepaid Rent		1,079,747		1,126,408
Tenant Contributions		4,227,953		—
Other Deferred Revenue		528,772		318,376
Total Deferred Revenue	$	6,868,665	$	2,030,459

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STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2018

STOCK-BASED COMPENSATION

Summary of share activity for all equity and liability classified stock compensation

A summary of share activity for all equity classified stock compensation during the six months ended June 30, 2018, is presented below:

	Shares		Vested /			Shares
	Outstanding	Granted	Exercised	Expired	Forfeited	Outstanding
Type of Award	at 1/1/2018	Shares	Shares	Shares	Shares	at 6/30/2018
Equity Classified - Performance Share Awards - Peer Group Market Condition Vesting	12,635	15,445	—	—	—	28,080
Equity Classified - Market Condition Restricted Shares - Stock Price Vesting	29,750	—	(7,750)	—	—	22,000
Equity Classified - Three Year Vest Restricted Shares	37,390	17,712	(18,883)	—	—	36,219
Equity Classified - Non-Qualified Stock Option Awards	90,000	—	—	—	—	90,000
Total Shares	169,775	33,157	(26,633)	—	—	176,299

Schedule of amounts recognized for stock options, stock appreciation rights, and restricted stock

	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Total Cost of Share-Based Plans Charged Against Income Before Tax Effect	$	430,054	$	389,585	$	897,325	$	743,164
Income Tax Expense Recognized in Income	$	(108,997)	$	(150,283)	$	(227,427)	$	(286,676)

Peer Group Market Condition Vesting

STOCK-BASED COMPENSATION

Summary of performance share awards activity

A summary of activity during the six months ended June 30, 2018, is presented below: 

		Wtd. Avg.
Performance Shares with Market Conditions	Shares	Fair Value
Outstanding at January 1, 2018	12,635	$	55.66
Granted	15,445		74.99
Vested	—		—
Expired	—		—
Forfeited	—		—
Outstanding at June 30, 2018	28,080	$	66.29

Stock Price Vesting

STOCK-BASED COMPENSATION

Summary of nonvested restricted stock award activity

A summary of the activity for these awards during the six months ended June 30, 2018, is presented below:

		Wtd. Avg.
Market Condition Non-Vested Restricted Shares	Shares	Fair Value
Outstanding at January 1, 2018	29,750	$	39.07
Granted	—		—
Vested	(7,750)		31.58
Expired	—		—
Forfeited	—		—
Outstanding at June 30, 2018	22,000	$	41.71

Three-Year Vesting

STOCK-BASED COMPENSATION

Summary of nonvested restricted stock award activity

A summary of activity during the six months ended June 30, 2018, is presented below:

		Wtd. Avg.
		Fair Value
Three Year Vest Non-Vested Restricted Shares	Shares	Per Share
Outstanding at January 1, 2018	37,390	$	51.39
Granted	17,712		65.33
Vested	(18,883)		51.57
Expired	—		—
Forfeited	—		—
Outstanding at June 30, 2018	36,219	$	58.12

Amended and Restated 2010 Equity Incentive Plan

STOCK-BASED COMPENSATION

Summary of activity for stock option awards

A summary of the activity for the awards during the six months ended June 30, 2018, is presented below: 

				Wtd. Avg.
				Remaining
				Contractual		Aggregate
		Wtd. Avg.		Term		Intrinsic
Non-Qualified Stock Option Awards	Shares	Ex. Price		(Years)		Value
Outstanding at January 1, 2018	90,000	$	52.71
Granted	—		—
Exercised	—		—
Expired	—		—
Forfeited	—		—
Outstanding at June 30, 2018	90,000	$	52.71	6.48	$	792,300
Exercisable at January 1, 2018	73,000	$	51.94	6.88	$	843,968
Exercisable at June 30, 2018	90,000	$	52.71	6.48	$	792,300

Summary of non-vested stock option awards

A summary of the non-vested options for these awards during the six months ended June 30, 2018, is presented below:

		Fair Value
		of Shares
Non-Qualified Stock Option Awards	Shares	Vested
Non-Vested at January 1, 2018	17,000
Granted	—
Vested	(17,000)	$	952,068
Expired	—
Forfeited	—
Non-Vested at June 30, 2018	—

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COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2018

COMMITMENTS AND CONTINGENCIES

Schedule of potential land sales transactions

		No. of Acres	Amount		Price		Estimated
	Transaction (Buyer)	(Rounded)	($000's)		per Acre		Timing
1	Commercial/Retail - O'Connor - West of I-95	850	$	34,000	$	40,000	'19 - '20
2	Commercial/Retail - O'Connor - East of I-95 (1)	123		29,250		238,000	'19
3	Residential (AR) - Minto Communities - West of I-95	1,614		26,500		16,000	Q4 '18
4	Residential (SF) - ICI Homes - West of I-95	1,016		21,000		21,000	'19
5	Residential (MF) - East of I-95	80		16,000		200,000	'19
6	Mixed-Use Retail - North American - East of I-95 (2)	35		14,362		409,000	Q4 '18
7	Commercial/Medical Office - East of I-95	32		8,089		253,000	'19 - '20
8	Residential (MF) - East of I-95 (3)	45		5,200		116,000	Q3 '18 & '20
9	Distribution/Warehouse - VanTrust - East of I-95	71		5,000		70,000	'19
10	Commercial/Retail - East of I-95	20		4,250		213,000	Q4 '18
11	Commercial/Retail - East of I-95	9		3,300		367,000	Q4 '18 - '19
12	Commercial/Distribution - VanTrust - East of I-95	26		3,215		124,000	'18 - '19
13	Residential (SF) - West of I-95 (4)	200		3,175		16,000	Q4 '18 & '20
14	Auto Dealership - West of I-95	13		2,000		154,000	Q4 '18
15	Commercial/Retail - East of I-95	2		1,500		682,000	'19 - '20
16	Residential (SF) - ICI Homes - West of I-95	146		1,400		10,000	'19
17	Commercial/Medical Office - East of I-95	4		935		234,000	Q4 '18
	Total (Average)	4,286	$	179,176	$	42,000

(1)Land sales transaction which requires the Company to incur the cost to provide the requisite mitigation credits necessary for obtaining the applicable regulatory permits for the buyer, with such costs representing either our basis in the credits that we own, or potentially up to 5% - 10% of the contract amount noted.

(2)Pursuant to the contract, amount includes the reimbursement of infrastructure costs incurred by the Company for Tomoka Town Center plus interest accrued as of December 31, 2017.

(3)The acres and amount include the buyer’s option to acquire approximately 19 acres for $2.0 million, in addition to the base contract of approximately 26 acres for $3.2 million.

(4)The acres and amount include the buyer’s option to acquire approximately 71 acres for $925,000, in addition to the base contract of approximately 129 acres for $2.25 million.

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BUSINESS SEGMENT DATA (Tables)

6 Months Ended

Jun. 30, 2018

BUSINESS SEGMENT DATA

Schedule of operations in different segments

	Three Months Ended				Six Months Ended
	June 30, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Revenues:
Income Properties	$	9,781,299	$	7,565,007	$	18,987,026	$	14,638,247
Commercial Loan Investments		273,467		553,159		574,466		1,089,648
Real Estate Operations		2,484,314		13,257,355		16,463,644		42,731,815
Golf Operations		1,282,918		1,383,513		2,637,274		2,858,457
Agriculture and Other Income		11,187		78,749		22,374		232,900
Total Revenues	$	13,833,185	$	22,837,783	$	38,684,784	$	61,551,067
Operating Income:
Income Properties	$	7,746,410	$	5,935,492	$	15,083,108	$	11,597,019
Commercial Loan Investments		273,467		553,159		574,466		1,089,648
Real Estate Operations		1,614,044		7,464,826		14,057,712		27,782,437
Golf Operations		(242,135)		(18,406)		(269,604)		(42,140)
Agriculture and Other Income		6,015		48,213		12,030		161,927
General and Corporate Expense		(6,284,119)		(5,942,877)		(13,008,046)		(11,925,599)
Other Gains and Income		18,384,808		—		22,035,666		2,226,526
Total Operating Income	$	21,498,490	$	8,040,407	$	38,485,332	$	30,889,818
Depreciation and Amortization:
Income Properties	$	3,746,762	$	3,108,494	$	7,534,177	$	5,794,806
Golf Operations		99,393		95,323		202,949		160,690
Agriculture and Other		8,783		11,873		18,191		22,769
Total Depreciation and Amortization	$	3,854,938	$	3,215,690	$	7,755,317	$	5,978,265
Capital Expenditures:
Income Properties	$	969,326	$	22,748,812	$	28,884,588	$	44,686,344
Real Estate Operations		1,393,811		—		3,505,794		—
Golf Operations		22,217		266,758		24,880		1,874,500
Agriculture and Other		10,785		38,945		11,338		51,028
Total Capital Expenditures	$	2,396,139	$	23,054,515	$	32,426,600	$	46,611,872

	As of
	June 30, 2018		December 31, 2017
Identifiable Assets:
Income Properties	$	420,261,037	$	388,602,721
Commercial Loan Investments		2,994,916		11,963,777
Real Estate Operations		41,388,054		43,296,528
Golf Operations		5,709,161		6,262,634
Agriculture and Other		10,196,478		16,004,718
Total Assets	$	480,549,646	$	466,130,378

XML

DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS - Description of Business (Details) ft² in Millions	6 Months Ended
	Jun. 30, 2018 a ft² item state loan property	Mar. 31, 2018 a
Land
Description of business
Number under lease | item	18
Commercial loans
Description of business
Number of mortgage loan investments | loan	1
Real Estate Operations
Description of business
Number of real estate properties	36
Number of states in which entity operates | state	13
Gross leasable space | ft²	2.1
Single-tenant
Description of business
Number of real estate properties	29
Multi-tenant
Description of business
Number of real estate properties	7
Daytona Beach, FL
Description of business
Acres | a	0.9	3
Daytona Beach, FL | Undeveloped land
Description of business
Acres | a	5,500

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DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS - Restricted Cash and Investment Securities (Details)	1 Months Ended
	Jul. 31, 2017 USD ($)	Jun. 30, 2018 USD ($) Transaction item property	Feb. 28, 2018 USD ($)	Feb. 21, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jun. 30, 2017 USD ($)
Restricted Cash
Restricted Cash		$ 2,419,686		$ 918,000	$ 6,508,131	$ 4,727,381
First mortgage loan
Restricted Cash
Mortgage loan originated	$ 3,000,000
Restricted cash, escrow deposit related to land transactions
Restricted Cash
Restricted Cash		$ 1,200,000
Number of separate escrow accounts | item		3
Number of separate land transactions | Transaction		3
Restricted cash reserve for interest and property taxes for first mortgage loan investment
Restricted Cash
Restricted Cash		$ 127,000
Capital replacement reserve account
Restricted Cash
Restricted Cash		$ 185,000
Number of real estate properties in financing | property		6
Leasing reserve account
Restricted Cash
Restricted Cash			$ 918,000

XML

DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS - Fair Value of Financial Instruments (Details) - Commercial loans - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Commercial loan investment portfolio
Carrying Value		$ 11,925,699
Variable-rate B-Note Junior Mortgage
Commercial loan investment portfolio
Carrying Value	$ 0	$ 8,960,467

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DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS - Commercial Loan Investments and Accounts Receivable (Details)	3 Months Ended
	Dec. 31, 2015 Transaction	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Commercial Loan Investment Impairment
Allowance for impairment of loans		$ 0	$ 0
Accounts Receivable
Allowance for doubtful accounts		0	0
Trade Accounts Receivable Golf Operations
Accounts Receivable
Accounts receivable		287,000	349,000
Accounts Receivable Income Properties Tenant Reimbursable Expenses
Accounts Receivable
Accounts receivable		1,300,000	895,000
Accounts Receivable Real Estate Operations [Member]
Accounts Receivable
Accounts receivable		$ 2,100,000	$ 2,200,000
Number of closed land transactions | Transaction	2

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DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS - Income Taxes (Details) $ in Thousands	Jun. 30, 2018 USD ($)
Income Taxes
Reserves for uncertain income tax positions	$ 0

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REVENUE RECOGNITION - Major Good or Service (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues
Lease Revenue	$ 9,948,000	$ 7,778,000	$ 19,336,000	$ 15,053,000
Lease Incentive Amortization	(76,000)		(151,000)
Interest from Commercial Loan Investments	274,000	553,000	575,000	1,090,000
Total Revenues	13,833,185	22,837,783	38,684,784	61,551,067
Lease Revenue - Base Rent
Revenues
Lease Revenue	7,376,000	6,125,000	14,809,000	11,690,000
Lease Revenue - CAM
Revenues
Lease Revenue	891,000	466,000	1,505,000	965,000
Lease Revenue - Reimbursements
Revenues
Lease Revenue	801,000	371,000	1,365,000	791,000
Lease Revenue - Billboards
Revenues
Lease Revenue	70,000	65,000	134,000	126,000
Above / Below Market Lease Accretion
Revenues
Lease Revenue	600,000	550,000	1,179,000	1,081,000
Contributed Leased Assets Accretion
Revenues
Lease Revenue	85,000		95,000
Land
Revenues
Revenue from contract with customer, including assessed tax	1,734,000	10,858,000	14,851,000	39,564,000
Revenue from Reimbursement of Infrastructure Costs
Revenues
Revenue from contract with customer, including assessed tax		955,000		1,276,000
Impact Fee and Mitigation Credit Sales
Revenues
Revenue from contract with customer, including assessed tax	470,000	1,222,000	586,000	1,439,000
Subsurface Lease Revenue
Revenues
Lease Revenue	201,000	201,000	400,000	400,000
Subsurface Revenue - Other
Revenues
Revenue from contract with customer, including assessed tax	79,000	21,000	626,000	53,000
Golf Operations
Revenues
Revenue from contract with customer, including assessed tax	1,283,000	1,384,000	2,638,000	2,858,000
Timber Sales Revenue
Revenues
Revenue from contract with customer, including assessed tax		68,000		211,000
Interest and Other Revenue
Revenues
Interest and Other Revenue	45,000	(1,000)	73,000	7,000
Income Properties
Revenues
Lease Revenue	9,736,000	7,566,000	18,914,000	14,631,000
Lease Incentive Amortization	(76,000)		(151,000)
Total Revenues	9,781,299	7,565,007	18,987,026	14,638,247
Income Properties | Lease Revenue - Base Rent
Revenues
Lease Revenue	7,365,000	6,114,000	14,787,000	11,668,000
Income Properties | Lease Revenue - CAM
Revenues
Lease Revenue	891,000	466,000	1,505,000	965,000
Income Properties | Lease Revenue - Reimbursements
Revenues
Lease Revenue	801,000	371,000	1,365,000	791,000
Income Properties | Lease Revenue - Billboards
Revenues
Lease Revenue	70,000	65,000	134,000	126,000
Income Properties | Above / Below Market Lease Accretion
Revenues
Lease Revenue	600,000	550,000	1,179,000	1,081,000
Income Properties | Contributed Leased Assets Accretion
Revenues
Lease Revenue	85,000		95,000
Income Properties | Interest and Other Revenue
Revenues
Interest and Other Revenue	45,000	(1,000)	73,000	7,000
Commercial Loan Investments
Revenues
Interest from Commercial Loan Investments	274,000	553,000	575,000	1,090,000
Total Revenues	273,467	553,159	574,466	1,089,648
Real Estate Operations
Revenues
Lease Revenue	201,000	201,000	400,000	400,000
Total Revenues	2,484,314	13,257,355	16,463,644	42,731,815
Real Estate Operations | Land
Revenues
Revenue from contract with customer, including assessed tax	1,734,000	10,858,000	14,851,000	39,564,000
Real Estate Operations | Revenue from Reimbursement of Infrastructure Costs
Revenues
Revenue from contract with customer, including assessed tax		955,000		1,276,000
Real Estate Operations | Impact Fee and Mitigation Credit Sales
Revenues
Revenue from contract with customer, including assessed tax	470,000	1,222,000	586,000	1,439,000
Real Estate Operations | Subsurface Lease Revenue
Revenues
Lease Revenue	201,000	201,000	400,000	400,000
Real Estate Operations | Subsurface Revenue - Other
Revenues
Revenue from contract with customer, including assessed tax	79,000	21,000	626,000	53,000
Golf Operations
Revenues
Revenue from contract with customer, including assessed tax	1,283,000	1,384,000	2,638,000	2,858,000
Total Revenues	1,282,918	1,383,513	2,637,274	2,858,457
Agriculture and Other Income
Revenues
Lease Revenue	11,000	11,000	22,000	22,000
Revenue from contract with customer, including assessed tax		$ 68,000		$ 211,000
Type of revenue		us-gaap:TimberMember		us-gaap:TimberMember
Total Revenues	11,187	$ 78,749	22,374	$ 232,900
Agriculture and Other Income | Lease Revenue - Base Rent
Revenues
Lease Revenue	$ 11,000	$ 11,000	$ 22,000	$ 22,000

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REVENUE RECOGNITION - Timing of Revenue Recognition (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues
Over Lease Term	$ 9,948,000	$ 7,778,000	$ 19,336,000	$ 15,053,000
Commercial Loan Investment Related Revenue	274,000	553,000	575,000	1,090,000
Total Revenues	13,833,185	22,837,783	38,684,784	61,551,067
Asset/Good Transferred at a Point in Time
Revenues
Revenue from contract with customer, including assessed tax	3,324,000	13,485,000	18,199,000	43,914,000
Services Transferred Over Time
Revenues
Revenue from contract with customer, including assessed tax	287,000	1,022,000	575,000	1,494,000
Income Properties
Revenues
Over Lease Term	9,736,000	7,566,000	18,914,000	14,631,000
Total Revenues	9,781,299	7,565,007	18,987,026	14,638,247
Income Properties | Services Transferred Over Time
Revenues
Revenue from contract with customer, including assessed tax	45,000	(1,000)	73,000	7,000
Commercial Loan Investments
Revenues
Commercial Loan Investment Related Revenue	274,000	553,000	575,000	1,090,000
Total Revenues	273,467	553,159	574,466	1,089,648
Real Estate Operations
Revenues
Over Lease Term	201,000	201,000	400,000	400,000
Total Revenues	2,484,314	13,257,355	16,463,644	42,731,815
Real Estate Operations | Asset/Good Transferred at a Point in Time
Revenues
Revenue from contract with customer, including assessed tax	2,283,000	12,101,000	16,063,000	41,056,000
Real Estate Operations | Services Transferred Over Time
Revenues
Revenue from contract with customer, including assessed tax		955,000		1,276,000
Golf Operations
Revenues
Revenue from contract with customer, including assessed tax	1,283,000	1,384,000	2,638,000	2,858,000
Total Revenues	1,282,918	1,383,513	2,637,274	2,858,457
Golf Operations | Asset/Good Transferred at a Point in Time
Revenues
Revenue from contract with customer, including assessed tax	1,041,000	1,316,000	2,136,000	2,647,000
Golf Operations | Services Transferred Over Time
Revenues
Revenue from contract with customer, including assessed tax	242,000	68,000	502,000	211,000
Agriculture and Other Income
Revenues
Revenue from contract with customer, including assessed tax		68,000		211,000
Over Lease Term	11,000	11,000	22,000	22,000
Total Revenues	$ 11,187	78,749	$ 22,374	232,900
Agriculture and Other Income | Asset/Good Transferred at a Point in Time
Revenues
Revenue from contract with customer, including assessed tax		$ 68,000		$ 211,000

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INCOME PROPERTIES - Acquisitions (Details) $ in Millions		6 Months Ended
	Feb. 21, 2018 USD ($)	Jun. 30, 2018 USD ($) a property	Jun. 30, 2017 USD ($) property	Jan. 31, 2018 a restaurant
LandShark Bar and Grill
Amount allocated of total acquisition cost
Number of restaurants | restaurant				2
Acres | a				6
Florida
Amount allocated of total acquisition cost
Tenant Contributions		$ 1.9
Net cash investment		26.5
Aspen, Colorado
Amount allocated of total acquisition cost
Tenant Contributions	$ 1.5	1.5
Real Estate Operations
Acquisitions of Income Properties
Aggregate acquisition cost including capitalized acquisition costs		$ 29.0	$ 40.7
Amount allocated of total acquisition cost
Weighted average amortization period of intangible assets		20 years	9 years 9 months 18 days
Weighted average amortization period of intangible liabilities		20 years	9 years 9 months 18 days
Real Estate Operations | Nonrecurring basis
Acquisitions of Income Properties
Land		$ 12.0	$ 18.0
Buildings and improvements		15.0	$ 19.3
Intangible assets		2.8
Intangible liabilities		$ 0.8
Single-tenant
Acquisitions of Income Properties
Number of real estate properties | property		1	3
Single-tenant | Aspen, Colorado
Amount allocated of total acquisition cost
Acres | a		0.18

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INCOME PROPERTIES - Properties Acquired (Details)	6 Months Ended
	Jun. 30, 2018 USD ($) a ft²	Jun. 30, 2017 USD ($)
Real Estate Operations
Description of properties acquired
Purchase price		$ 40,000,000
Aspen, Colorado | Single-tenant
Description of properties acquired
Square-Feet | ft²	19,596
Acres | a	0.18
Purchase price	$ 28,000,000
Percentage Leased	100.00%
Remaining Lease Term	20 years

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INCOME PROPERTIES - Dispositions and Impairment Charges (Details)	6 Months Ended
	Jun. 30, 2018 USD ($) ft² building property	Mar. 26, 2018 USD ($)
Dispositions of Income Properties
Number of properties in the disposal group | property	4
Daytona Beach, FL
Dispositions of Income Properties
Sales price | $		$ 11,400,000
Concierge Office Building
Dispositions of Income Properties
Area of real estate property	22,012
Williamson Business Park office building
Dispositions of Income Properties
Area of real estate property	15,360
Area of real estate property leased	7,600
Gain on Sale | $	$ 3,700,000
Gain on sale of properties (in dollars per share) | $	$ 0.49
Lease term	5 years
Mason Commerce Center
Dispositions of Income Properties
Area of real estate property	30,720
Number of office building | building	2

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INCOME PROPERTIES - Acquisitions (Detail) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($) property	Jun. 30, 2017 USD ($) property
Acquisitions
Number of properties in the disposal group | property	4
Single-tenant
Acquisitions
Number of real estate properties | property	29
Multi-tenant
Acquisitions
Number of real estate properties | property	7
Real Estate Operations
Acquisitions
Purchase price | $		$ 40.0
Aggregate acquisition cost including capitalized acquisition costs | $	$ 29.0	$ 40.7
Weighted average amortization period of intangible assets	20 years	9 years 9 months 18 days
Weighted average amortization period of intangible liabilities	20 years	9 years 9 months 18 days
Real Estate Operations | Nonrecurring basis
Acquisitions
Land | $	$ 12.0	$ 18.0
Buildings and improvements | $	$ 15.0	19.3
Intangible assets pertaining to the in-place lease value, leasing fees and above market lease value | $		4.9
Intangible liabilities for below market lease value | $		$ 1.5
Single-tenant
Acquisitions
Number of real estate properties | property	1	3
Multi-tenant
Acquisitions
Number of real estate properties | property		2
2018 acquisitions of income property subject to a lease | Sold
Acquisitions
Number of properties in the disposal group | property		0

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COMMERCIAL LOAN INVESTMENTS - Portfolio Information (Details) $ in Millions		6 Months Ended
	Jun. 13, 2018 USD ($)	Jun. 30, 2018 USD ($) loan
Commercial loan investment portfolio
Proceeds from loans sold | $	$ 9.0
Commercial loans
Commercial loan investment portfolio
Number of mortgage loan investments | loan		1
Commercial loans | Performing
Commercial loan investment portfolio
Number of mortgage loan investments | loan		1
Aggregate outstanding principal balance | $		$ 3.0

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COMMERCIAL LOAN INVESTMENTS - Composition of Portfolio (Details) - Commercial loans - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Commercial loan investment portfolio
Original Face Amount		$ 11,960,467
Current Face Amount	$ 3,000,000	11,960,467
Carrying Value		11,925,699
Variable-rate B-Note Junior Mortgage
Commercial loan investment portfolio
Original Face Amount		8,960,467
Current Face Amount		8,960,467
Carrying Value	0	$ 8,960,467
Variable-rate B-Note Junior Mortgage | LIBOR
Commercial loan investment portfolio
Loans receivable basis spread on variable rate (as a percent)		7.50%
Fixed-rate first mortgage
Commercial loan investment portfolio
Original Face Amount	3,000,000	$ 3,000,000
Current Face Amount	3,000,000	3,000,000
Carrying Value	$ 2,994,916	$ 2,965,232
Interest Rate (as a percent)	11.00%	11.00%

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COMMERCIAL LOAN INVESTMENTS - Carrying Value of Held for Investment and Loans Classified as Held for Sale (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Carrying value of the commercial loan investment portfolio
Total Commercial Loan Investments	$ 2,994,916	$ 11,925,699
Commercial loans
Carrying value of the commercial loan investment portfolio
Current Face Amount	3,000,000	11,960,467
Unaccreted Origination Fees	(5,084)	(34,768)
Total Commercial Loan Investments	$ 2,994,916	$ 11,925,699

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LAND AND SUBSURFACE INTERESTS - Daytona Beach, Florida Land (Details) $ in Thousands		3 Months Ended				12 Months Ended
	Aug. 01, 2018 a	Jun. 30, 2018 USD ($) a property mi	Mar. 31, 2018 USD ($) a	Jun. 30, 2017 a	Mar. 31, 2017 a	Dec. 31, 2009 USD ($)
Land and development costs and subsurface interests
Area of land sales as a percentage of land holdings	78.00%
Land sale acres	4,286			81.4	1,587.4
Net realized loss on investments | $						$ 0
Daytona Beach, FL
Land and development costs and subsurface interests
Acres		0.9	3
Purchase price | $		$ 1,500	$ 2,000
Undeveloped land | Daytona Beach, FL
Land and development costs and subsurface interests
Acres		5,500
Undeveloped land | Daytona Beach, FL | Property west of Interstate 95
Land and development costs and subsurface interests
Acres		4,500
Distance of land owned along Interstate | mi		6
Undeveloped land | Daytona Beach, FL | Property west of Interstate 95 and north of Interstate 4
Land and development costs and subsurface interests
Acres		1,000
Undeveloped land | Daytona Beach, FL | Property east of Interstate 95
Land and development costs and subsurface interests
Acres		1,000
Distance of land owned along Interstate | mi		6
Undeveloped land, parcel one | Daytona Beach, FL | Property west of Interstate 95 and north of Interstate 4
Land and development costs and subsurface interests
Acres		850
Undeveloped land, smaller parcels | Daytona Beach, FL | Property west of Interstate 95 and north of Interstate 4
Land and development costs and subsurface interests
Number of land parcels | property		3

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LAND AND SUBSURFACE INTERESTS - Real Estate Operations Revenues (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues
Total Revenues	$ 13,833,185	$ 22,837,783	$ 38,684,784	$ 61,551,067
Real Estate Operations
Revenues
Subsurface Revenue	280,000	222,000	1,026,000	453,000
Total Revenues	2,484,314	13,257,355	16,463,644	42,731,815
Land
Revenues
Revenue from contract with customer, including assessed tax	1,734,000	10,858,000	14,851,000	39,564,000
Land | Real Estate Operations
Revenues
Revenue from contract with customer, including assessed tax	1,734,000	10,858,000	14,851,000	39,564,000
Revenue from Reimbursement of Infrastructure Costs
Revenues
Revenue from contract with customer, including assessed tax		955,000		1,276,000
Revenue from Reimbursement of Infrastructure Costs | Real Estate Operations
Revenues
Revenue from contract with customer, including assessed tax		955,000		1,276,000
Impact Fee and Mitigation Credit Sales
Revenues
Revenue from contract with customer, including assessed tax	470,000	1,222,000	586,000	1,439,000
Impact Fee and Mitigation Credit Sales | Real Estate Operations
Revenues
Revenue from contract with customer, including assessed tax	$ 470,000	$ 1,222,000	$ 586,000	$ 1,439,000

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LAND AND SUBSURFACE INTERESTS - Land Sales and Impairments (Details)												3 Months Ended				6 Months Ended
	Aug. 01, 2018 a $ / a	Jun. 28, 2018 USD ($) a $ / a	Jun. 25, 2018 USD ($) a $ / a	Jun. 12, 2018 USD ($) a $ / a	Mar. 16, 2018 USD ($) a $ / a	Jun. 27, 2017 USD ($) a $ / a	Apr. 25, 2017 USD ($) a $ / a	Apr. 13, 2017 USD ($) a $ / a	Apr. 05, 2017 USD ($) a $ / a	Mar. 22, 2017 USD ($) a $ / a	Feb. 10, 2017 USD ($) a $ / a	Jun. 30, 2018 USD ($) a item property $ / a	Mar. 31, 2018 USD ($) a $ / a	Jun. 30, 2017 USD ($) a $ / a	Mar. 31, 2017 USD ($) a $ / a	Jun. 30, 2018 USD ($) a item property $ / a	Jun. 30, 2017 USD ($) a $ / a
Land and development costs and subsurface interests
No. of Acres | a	4,286													81.4	1,587.4
Gross Sales Price														$ 11,813,000	$ 28,707,000
Price per Acre | $ / a														145,000	18,000
Price per Acre | $ / a	42,000
Impairment charges																$ 0	$ 0
Real Estate Operations
Land and development costs and subsurface interests
Number of real estate properties | property												36				36
Undeveloped land
Land and development costs and subsurface interests
Impairment charges												$ 0		$ 0
Buc'ees - East of I-95
Land and development costs and subsurface interests
Escrow reserve												831,000	$ 831,000			$ 831,000
Remaining gain to be recognized												$ 831,000	$ 831,000			$ 831,000
Land Sales
Land and development costs and subsurface interests
Number of real estate properties | item												4				4
Area of land in land sale transactions | a																2,559
No. of Acres | a												32.4	34.9			67.3	1,668.8
Gross Sales Price												$ 1,709,000	$ 13,948,000			$ 15,657,000	$ 40,520,000
Price per Acre | $ / a												53,000	400,000			233,000	24,000
Gain on Sale												$ 1,078,000	$ 11,926,000	$ 6,858,000	$ 20,052,000	$ 13,004,000	$ 26,910,000
Land Sales | Minto Communities LLC
Land and development costs and subsurface interests
No. of Acres | a											1,581.0
Gross Sales Price											$ 27,151,000
Price per Acre | $ / a											17,000
Gain on Sale											$ 20,041,000
Land Sales | Buc'ees - East of I-95
Land and development costs and subsurface interests
No. of Acres | a					34.9
Gross Sales Price					$ 13,948,000
Price per Acre | $ / a					400,000
Gain on Sale					$ 11,926,000
Land Sales | Residential
Land and development costs and subsurface interests
No. of Acres | a				19.0
Gross Sales Price				$ 265,000
Price per Acre | $ / a				14,000
Gain on Sale				$ 226,000
Land Sales | Mitigation Bank West of Interstate Ninety Five
Land and development costs and subsurface interests
Area of land belonging to interest in entity sold | a																2,492
No. of Acres | a				2,492
Land sales, ownership interest sold (as a percent)				70.00%												70.00%
Gross Sales Price																$ 15,300,000
Gain on Sale																$ 18,400,000
Land Sales | Commercial/Retail Site
Land and development costs and subsurface interests
No. of Acres | a		7.7	5.7
Gross Sales Price		$ 819,000	$ 625,000
Price per Acre | $ / a		106,000	110,000
Gain on Sale		$ 628,000	$ 224,000
Land Sales | Commercial
Land and development costs and subsurface interests
No. of Acres | a							30.0	4.5	27.5	6.4
Gross Sales Price							$ 2,938,000	$ 1,235,000	$ 3,218,000	$ 1,556,000
Price per Acre | $ / a							98,000	274,000	117,000	245,000
Gain on Sale							$ 627,000	$ 13,000	$ 2,955,000	$ 11,000
Land Sales | Third Nadg Land Sale
Land and development costs and subsurface interests
No. of Acres | a						19.4
Gross Sales Price						$ 4,422,000
Price per Acre | $ / a						228,000
Gain on Sale						$ 3,263,000

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LAND AND SUBSURFACE INTERESTS - Tiger Bay Mitigation (Details)				3 Months Ended				6 Months Ended
	Aug. 01, 2018 a	Jun. 12, 2018 a	Jun. 27, 2017 USD ($) a	Jun. 30, 2018 USD ($) a instrument	Mar. 31, 2018 a	Jun. 30, 2017 a	Mar. 31, 2017 a	Jun. 30, 2018 USD ($) a instrument	Jun. 30, 2017 a	Jun. 08, 2018 item
Real Estate [Line Items]
Land sale acres | a	4,286					81.4	1,587.4
Investment in Joint Venture				$ 6,701,017				$ 6,701,017
Number of state credits awarded | item										355
Area of land sales as a percentage of land holdings	78.00%
Land Sales
Real Estate [Line Items]
Land sale acres | a				32.4	34.9			67.3	1,668.8
Land Sales | Mitigation Bank West of Interstate Ninety Five
Real Estate [Line Items]
Land sales, ownership interest sold (as a percent)		70.00%						70.00%
Land sales, non-controlling interest (as a percent)				30.00%				30.00%
Land sale acres | a		2,492
Land Sales | Third Nadg Land Sale
Real Estate [Line Items]
Land sale acres | a			19.4
Payment made for infrastructure reimbursement			$ 955,000
Consolidated Tomoka Land Co
Real Estate [Line Items]
Land sales, non-controlling interest (as a percent)		30.00%
Interest in the joint venture (as a percent)								30.00%
Investment in Joint Venture				$ 6,700,000				$ 6,700,000
Mitigation Bank
Real Estate [Line Items]
Mitigation credits, Operating Agreement, credit sales, Minimum Sales Requirement, minimum revenue, net of commissions				$ 6,000,000				$ 6,000,000
Mitigation credits, Operating Agreement, credit sales, Minimum Sales Requirement, maximum credits, number | instrument				60				60
Mitigation credits, Operating Agreement, credit sales, Minimum Sales Guarantee, fair value				$ 100,000				$ 100,000
Mitigation credits, Put Right, maximum credits the Company must purchase, per quarter, number | instrument				8.536				8.536
Mitigation credits, Put Right, maximum credits the Company must purchase, per quarter, price to fair value (as a percent)				60.00%				60.00%
Mitigation credits, Put Right, third-party cedit sales, reduction in Put Rights outstanding if sales price equals or exceeds price stipulated by Put Right, ratio				1				1
Mitigation credits, Put Right, maximum potential future payments				$ 27,000,000				$ 27,000,000
Mitigation credits, Put Right, fair value				$ 200,000				$ 200,000
Black Rock
Real Estate [Line Items]
Sale of interest in joint venture		70.00%

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LAND AND SUBSURFACE INTERESTS - Beachfront Venture and Daytona Beach (Details)	6 Months Ended
	Jun. 30, 2018 USD ($) a restaurant	Mar. 31, 2018 a	Dec. 31, 2017 USD ($) a	Jun. 30, 2016
Land and subsurface interests
Acquisition of property	$ 2,141,853
Cost basis	$ 31,371,995		$ 39,477,697
Daytona Beach, FL
Land and subsurface interests
Acres | a	0.9	3
Land Parcel - Beachfront Property
Land and subsurface interests
Acres | a			6
Cost basis	$ 6,800,000
Land Parcel - Beachfront Property | Land and Development
Land and subsurface interests
Cost basis			$ 11,700,000
Land Parcel - Beachfront Property | Income Properties Land Buildings and Improvements
Land and subsurface interests
Cost basis	$ 18,500,000
Land Parcel - Beachfront Property | Restaurant property
Land and subsurface interests
Number of properties | restaurant	2
Land Parcel - Beachfront Property | Restaurant property | LandShark Bar and Grill
Land and subsurface interests
Lease term	15 years
Square-Feet | a	6,264
Land Parcel - Beachfront Property | Restaurant property | Cocina 214 Restaurant and Bar
Land and subsurface interests
Lease term				15 years
Annual minimum rent per year	$ 360,000

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LAND AND SUBSURFACE INTERESTS - Other Real Estate Assets (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Land and development costs and subsurface interests
Impact fees	$ 199,000		$ 402,000
Mitigation credits	526,000		723,000
Impact Fee and Mitigation Credits	725,236		$ 1,125,269
Mitigation credits sold	455,000	$ 1,100,000
Gain on mitigation credits sold	$ 403,000	$ 932,000
Gain on mitigation credits sold (in dollars per share)	$ 0.05	$ 0.10
Cash payments received for impact fees	$ 131,000	$ 291,000
LandShark Bar and Grill
Land and development costs and subsurface interests
Cash payments received for impact fees	72,000
Real Estate Operations | Buc'ees - East of I-95
Land and development costs and subsurface interests
Mitigation credits transferred	$ 124,000

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LAND AND SUBSURFACE INTERESTS - Subsurface Interests (Details)		3 Months Ended			6 Months Ended		84 Months Ended
	Aug. 01, 2018 a	Jun. 30, 2018 USD ($) a county	Jun. 30, 2017 USD ($) a	Mar. 31, 2017 a	Jun. 30, 2018 USD ($) a county $ / shares	Jun. 30, 2017 USD ($) a	Dec. 31, 2017 USD ($) a	Oct. 11, 2017	Sep. 20, 2017	Dec. 31, 2011
Subsurface interests
Acres sold | a	4,286		81.4	1,587.4
Lease income
Over Lease Term		$ 9,948,000	$ 7,778,000		$ 19,336,000	$ 15,053,000
Number of acres with operating oil wells | a		800	800		800	800
Subsurface Interests
Lease income
Revenue recognized for cash payments for the release of surface entry rights					$ 68,000	$ 0
Oil exploration
Subsurface interests
Lease term									13 years
Period of extended lease term									5 years
Period of lease term after which lessee has option to terminate lease					1 year
Lease payments on the respective acreages and drilling penalties received
Lease Payment							$ 9,827,121
Drilling Penalty							$ 1,975,000
Lease income
Period from end of prior lease year payment for drilling penalty is due					30 days
Over Lease Term		$ 201,000	$ 201,000		$ 400,000	400,000
Hendry County
Lease income
Area of land for which surface entry rights were released | a					40
Minimum | Oil exploration
Lease income
Period of lease term after which additional rental payments may be received					8 years
Maximum | Oil exploration
Subsurface interests
Lease term								13 years		8 years
Lease income
Period of lease term after which additional rental payments may be received					13 years
Surface land over subsurface interests
Subsurface interests
Acres | a		461,000			461,000
Number of counties in which Subsurface Interests are owned | county		20			20
Gain on Sale					$ 435,000
After tax gain on sale (in dollars per share) | $ / shares					$ 0.06
Lease income
Area of land for which surface entry rights were released | a					600
Surface land over subsurface interests | Hendry County
Subsurface interests
Revenue from contract with customer, including assessed tax					$ 320,000
Real Estate Operations
Lease income
Over Lease Term		$ 201,000	201,000		400,000	400,000
Real Estate Operations | Subsurface Interests
Subsurface interests
Revenue from contract with customer, including assessed tax		$ 12,000	$ 18,000		$ 44,000	$ 49,000
Type of revenue		us-gaap:RoyaltyMember	us-gaap:RoyaltyMember		us-gaap:RoyaltyMember	us-gaap:RoyaltyMember
Real Estate Operations | Surface land over subsurface interests
Subsurface interests
Revenue from contract with customer, including assessed tax					$ 185,000
Lease Year 1 - 9/23/2011 - 9/22/2012 | Lee and Hendry County | Oil exploration
Lease payments on the respective acreages and drilling penalties received
Acreage | a							136,000
Lease Payment							$ 913,657
Lease Year 2 - 9/23/2012 - 9/22/2013 | Lee and Hendry County | Oil exploration
Lease payments on the respective acreages and drilling penalties received
Acreage | a							136,000
Lease Payment							$ 922,114
Lease Year 3 - 9/23/2013 - 9/22/2014 | Hendry County | Oil exploration
Lease payments on the respective acreages and drilling penalties received
Acreage | a							82,000
Lease Payment							$ 3,293,000
Drilling Penalty							$ 1,000,000
Lease Year 4 - 9/23/2014 - 9/22/2015 | Hendry County | Oil exploration
Lease payments on the respective acreages and drilling penalties received
Acreage | a							42,000
Lease Payment							$ 1,866,146
Drilling Penalty							$ 600,000
Lease Year 5 - 9/23/2015 - 9/22/2016 | Hendry County | Oil exploration
Lease payments on the respective acreages and drilling penalties received
Acreage | a							25,000
Lease Payment							$ 1,218,838
Drilling Penalty							$ 175,000
Lease Year 6 - 9/23/2016 - 9/22/2017 | Hendry County | Oil exploration
Lease payments on the respective acreages and drilling penalties received
Acreage | a							15,000
Lease Payment							$ 806,683
Drilling Penalty							$ 150,000
Lease Year 7 - 9/23/2017 - 9/22/2018 | Oil exploration
Lease payments on the respective acreages and drilling penalties received
Acreage | a							15,000
Lease Payment							$ 806,683
Drilling Penalty							$ 50,000

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INVESTMENT IN JOINT VENTURE (Details) - Mitigation Bank $ in Thousands	Jun. 30, 2018 USD ($)
Summarized financial information of the Company’s JV Investment
Assets, cash and cash equivalents	$ 2,409
Assets, investment in mitigation credit assets	1,424
Total Assets	3,833
Equity	$ 3,833

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Value and Estimated Fair Value (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Carrying Value
Carrying value and estimated fair value of financial instruments
Cash and Cash Equivalents	$ 4,312,324	$ 6,559,409
Restricted Cash	2,419,686	6,508,131
Commercial Loan Investments	2,994,916	11,925,699
Long-Term Debt	177,133,608	195,816,364
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Carrying value and estimated fair value of financial instruments
Cash and Cash Equivalents	4,312,324	6,559,409
Restricted Cash	2,419,686	6,508,131
Estimated Fair Value | Significant Other Observable Inputs (Level 2)
Carrying value and estimated fair value of financial instruments
Commercial Loan Investments	3,031,501	12,015,628
Long-Term Debt	$ 179,596,049	$ 200,000,776

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FAIR VALUE OF FINANCIAL INSTRUMENTS - Measured on a Recurring Basis (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Fair value of assets
Cash Flow Hedge	$ 912,767	$ 606,621
Total		606,621
Significant Other Observable Inputs (Level 2)
Fair value of assets
Total		606,621
Interest Rate Swap
Fair value of assets
Cash Flow Hedge		606,621
Interest Rate Swap | Significant Other Observable Inputs (Level 2)
Fair value of assets
Cash Flow Hedge		$ 606,621
Recurring basis
Fair value of assets
Total	912,767
Recurring basis | Significant Other Observable Inputs (Level 2)
Fair value of assets
Total	912,767
Recurring basis | Interest Rate Swap
Fair value of assets
Cash Flow Hedge	912,767
Recurring basis | Interest Rate Swap | Significant Other Observable Inputs (Level 2)
Fair value of assets
Cash Flow Hedge	$ 912,767

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INTANGIBLE LEASE ASSETS AND LIABILITIES - Components (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Intangible Assets And Liabilities [Line Items]
Sub-total Intangible Lease Assets	$ 53,017,216	$ 50,198,683
Accumulated Amortization	(14,411,170)	(11,440,624)
Total Intangible Lease Assets—Net	38,606,046	38,758,059
Intangible Lease Liabilities
Value of Below Market In-Place Leases	(36,109,518)	(35,312,017)
Sub-total Intangible Lease Liabilities	(36,109,518)	(35,312,017)
Accumulated Amortization	6,969,983	5,541,576
Total Intangible Lease Liabilities—Net	(29,139,535)	(29,770,441)
Total Intangible Assets and Liabilities—Net	9,466,511	8,987,618
Value of In-Place Leases
Intangible Assets And Liabilities [Line Items]
Sub-total Intangible Lease Assets	38,046,241	36,827,226
Value of Above Market In-Place Leases
Intangible Assets And Liabilities [Line Items]
Sub-total Intangible Lease Assets	2,966,322	2,966,322
Value of Intangible Leasing Costs
Intangible Assets And Liabilities [Line Items]
Sub-total Intangible Lease Assets	$ 12,004,653	$ 10,405,135

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INTANGIBLE LEASE ASSETS AND LIABILITIES - Amortization (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
INTANGIBLE LEASE ASSETS AND LIABILITIES
Depreciation and Amortization Expense	$ 1,368,000	$ 1,189,000	$ 2,721,000	$ 2,277,000
Increase to Income Properties Revenue	(600,000)	(550,000)	(1,179,345)	(1,081,262)
Net Amortization of Intangible Assets and Liabilities	$ 768,000	$ 639,000	$ 1,542,000	$ 1,196,000

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INTANGIBLE LEASE ASSETS AND LIABILITIES - Summary of Estimated Amortization and Accretion (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Future Amortization Amount
Total Intangible Lease Assets—Net	$ 38,606,046	$ 38,758,059
Future Accretion to Income Property Revenue
Total Intangible Lease Liabilities—Net	(29,139,535)	$ (29,770,441)
Net Future Amortization of Intangible Assets and Liabilities
Remainder of 2018	1,733,803
2019	3,058,477
2020	2,683,785
2021	842,494
2022	153,405
2023	(198,216)
Thereafter	1,192,763
Total	9,466,511
Value of In-Place Leases and Intangible Leasing Costs
Future Amortization Amount
Remainder of 2018	2,916,475
2019	5,452,670
2020	5,011,249
2021	3,320,813
2022	2,702,885
2023	2,359,734
Thereafter	14,985,245
Total Intangible Lease Assets—Net	36,749,071
Value of Below Market, net of Above Market In-Place Leases
Future Accretion to Income Property Revenue
Remainder of 2018	(1,182,672)
2019	(2,394,193)
2020	(2,327,464)
2021	(2,478,319)
2022	(2,549,480)
2023	(2,557,950)
Thereafter	(13,792,482)
Total Intangible Lease Liabilities—Net	$ (27,282,560)

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IMPAIRMENT OF LONG-LIVED ASSETS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Impairment of Long-Lived Assets
Impairment Charges			$ 0	$ 0
Undeveloped land
Impairment of Long-Lived Assets
Impairment Charges	$ 0	$ 0

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OTHER ASSETS (Details)	6 Months Ended
	Jun. 30, 2018 USD ($) building	Dec. 31, 2017 USD ($) installment
Income properties
Income Property Tenant Receivables	$ 1,318,042	$ 895,476
Income Property Straight-line Rent Adjustment	3,439,530	2,517,195
Income Property Lease Incentive	2,545,461	2,696,678
Interest Receivable from Commercial Loan Investments		38,078
Cash Flow Hedge	912,767	606,621
Infrastructure Reimbursement Receivables	2,117,840	2,213,305
Golf Operations Receivables	286,995	349,220
Deferred Deal Costs	471,966	480,257
Prepaid Expenses, Deposits, and Other	2,882,784	3,174,299
Total Other Assets	13,975,385	$ 12,971,129
Tanger
Income properties
Infrastructure Reimbursement Receivables	1,600,000
Infrastructure reimbursement receivables, installment payment amounts	175,000
Infrastructure reimbursement receivable, discount	162,000
Sam's Club
Income properties
Infrastructure Reimbursement Receivables	770,000
Number of installments to repay infrastructure reimbursement receivable | installment		7
Infrastructure reimbursement receivables, installment payment amounts		$ 110,000
Infrastructure reimbursement receivable, discount		$ 65,000
Hilton Grand Vacations
Income properties
Income Property Lease Incentive	$ 2,500,000
Number of real estate properties | building	2
Funding for tenant improvements	$ 2,700,000
Accumulated amortization	$ 202,000

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COMMON STOCK AND EARNINGS PER SHARE - Summary of Common Stock and Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Available to Common Shareholders:
Net Income	$ 14,162,908	$ 3,678,908	$ 25,075,207	$ 16,425,300
Weighted Average Shares Outstanding	5,529,360	5,531,444	5,530,108	5,566,595
Common Shares Applicable to Stock
Options Using the Treasury Stock Method		14,008	31,683	16,463
Total Shares Applicable to Diluted Earnings Per Share	5,529,360	5,545,452	5,561,791	5,583,058
Per Share Information:
Basic Net Income per Share (in dollars per share)	$ 2.56	$ 0.67	$ 4.53	$ 2.95
Diluted Net Income per Share (in dollars per share)	$ 2.56	$ 0.66	$ 4.51	$ 2.94

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COMMON STOCK AND EARNINGS PER SHARE - Anti-dilutive Securities and Convertible Notes (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 11, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0	70,000	15,000	77,750
Additional diluted outstanding shares related to Convertible Notes	0	0
4.50% Convertible Senior Notes due 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stated interest rate (as a percent)	4.50%		4.50%
Conversion price per share	$ 68.63		$ 68.63		$ 68.90

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TREASURY STOCK (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Jul. 18, 2018	Mar. 31, 2017
Treasury Stock
Stock repurchase program authorized amount				$ 10,000,000
Number of shares authorized to be repurchased				7,100,000
Stock repurchased (in shares)	36,804
Stock repurchased amount	$ 2,192,445	$ 2,192,445
Average price per share of stock repurchased	$ 59.57
First quarter 2017 $10 Million Repurchase Program
Treasury Stock
Stock repurchase program authorized amount					$ 10,000,000
Stock repurchased amount			$ 4,600,000

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LONG-TERM DEBT - Outstanding Indebtedness (Details)	6 Months Ended
	Jun. 30, 2018 USD ($) property	Apr. 30, 2016 USD ($)	Mar. 11, 2015 USD ($)
Long-term debt
Face Value of Debt	$ 180,632,517
Interest Rate Swap
Long-term debt
Fixed interest rate through use of derivative (as a percent)	3.17%
Credit Facility
Long-term debt
Face Value of Debt	$ 50,745,579
Credit Facility | LIBOR | Minimum
Long-term debt
Margin added to variable rate basis (as a percent)	1.50%
Credit Facility | LIBOR | Maximum
Long-term debt
Margin added to variable rate basis (as a percent)	2.20%
Wells Fargo Mortgage Note Payable Originated September 30, 2014
Long-term debt
Face Value of Debt	$ 30,000,000
Stated interest rate (as a percent)	4.33%
Number of income properties securing debt | property	6
Period of fixed interest rate	10 years
Period of interest only payments	10 years
Period after which cash flows generated by underlying income properties must be used to pay down principal balance	10 years
Period to when loan is pre-payable	10 years
Wells Fargo Mortgage Note Payable Originated April 15, 2016
Long-term debt
Face Value of Debt	$ 24,886,938	$ 24,900,000
Term of loan	5 years
Period of interest only payments	2 years
Period of amortization for principal payments	25 years
Fixed interest rate through use of derivative (as a percent)	3.17%
Wells Fargo Mortgage Note Payable Originated April 15, 2016 | LIBOR
Long-term debt
Margin added to variable rate basis (as a percent)	1.90%
4.50% Convertible Senior Notes due 2020
Long-term debt
Face Value of Debt	$ 75,000,000		$ 75,000,000
Stated interest rate (as a percent)	4.50%

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LONG-TERM DEBT - Credit Facility (Details) - Credit Facility - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Sep. 07, 2017
Long-term debt
Extension term	1 year
Maximum borrowing capacity	$ 150.0	$ 150.0
Maximum borrowing capacity, after possible increase		$ 250.0
Unused portion of the borrowing capacity fee percentage condition	50.00%
Available borrowing capacity	$ 99.1
Amount outstanding	$ 50.7
Minimum
Long-term debt
Commitment fee percentage on unused portion of the borrowing capacity	0.15%
Maximum
Long-term debt
Commitment fee percentage on unused portion of the borrowing capacity	0.25%
LIBOR | Minimum
Long-term debt
Margin added to variable rate basis (as a percent)	1.50%
LIBOR | Maximum
Long-term debt
Margin added to variable rate basis (as a percent)	2.20%

XML

LONG-TERM DEBT - Convertible Notes (Details)		6 Months Ended
	Mar. 11, 2015 USD ($) $ / shares	Jun. 30, 2018 USD ($) $ / shares
Long-term debt
Face amount of debt		$ 180,632,517
Unamortized debt discount of notes		2,298,143
4.50% Convertible Senior Notes due 2020
Long-term debt
Face amount of debt	$ 75,000,000	$ 75,000,000
Stated interest rate (as a percent)		4.50%
Debt instrument conversion ratio	0.0145136	0.0145439
Conversion price per share | $ / shares	$ 68.90	$ 68.63
Unamortized debt discount of notes	$ 6,100,000	$ 2,300,000
Debt discount, cash portion	2,600,000
Debt discount, equity component	$ 3,500,000

XML

LONG-TERM DEBT - Components (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Long-term debt
Long-term debt	$ 180,632,517
Loan Costs, net of accumulated amortization	(1,200,766)	$ (1,258,931)
Long-Term Debt	177,133,608	195,816,364
Credit Facility
Long-term debt
Long-term debt	50,745,579	70,000,000
Wells Fargo Mortgage Note Payable Originated September 30, 2014
Long-term debt
Long-term debt	$ 30,000,000	30,000,000
Long-term debt due within one year
Stated interest rate (as a percent)	4.33%
Wells Fargo Mortgage Note Payable Originated April 15, 2016
Long-term debt
Long-term debt	$ 24,886,938	25,000,000
4.50% Convertible Senior Notes due 2020
Long-term debt
Long-term debt, net of discount	$ 72,701,857	$ 72,075,295
Long-term debt due within one year
Stated interest rate (as a percent)	4.50%

XML

LONG-TERM DEBT - Payments Applicable to Reduction of Principal (Details)	Jun. 30, 2018 USD ($)
Payments applicable to reduction of principal amounts
2020	$ 75,000,000
2021	75,632,517
Thereafter	30,000,000
Total Long-Term Debt - Face Value	$ 180,632,517

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LONG-TERM DEBT - Carrying Value (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
LONG-TERM DEBT
Current Face Amount	$ 180,632,517
Unamortized Discount on Convertible Debt	(2,298,143)
Loan Costs, net of accumulated amortization	(1,200,766)	$ (1,258,931)
Total Long-Term Debt	$ 177,133,608	$ 195,816,364

XML

LONG-TERM DEBT - Interest Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
LONG-TERM DEBT
Interest expense	$ 2,085,000	$ 1,736,000	$ 4,185,000	$ 3,393,000
Amortization of Loan Costs	137,000	112,000	286,639	224,987
Amortization of Discount on Convertible Notes	316,000	296,000	626,562	587,828
Total Interest Expense	2,538,000	2,144,000	5,099,000	4,206,000
Total Interest Paid	$ 1,291,000	$ 887,000	$ 4,190,000	$ 3,438,000

XML

INTEREST RATE SWAP (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Apr. 30, 2016
Derivative [Line Items]
Face amount of debt	$ 180,632,517
Wells Fargo Mortgage Note Payable Originated April 15, 2016
Derivative [Line Items]
Face amount of debt	$ 24,886,938	$ 24,900,000
Derivative fixed interest rate (as a percent)	3.17%
Interest Rate Swap
Derivative [Line Items]
Effectiveness of interest rate cash flow hedge (as a percent)	100.00%
Notional amount	$ 24,900,000
Derivative fixed interest rate (as a percent)	3.17%
Interest Rate Swap | Other Assets
Derivative [Line Items]
Fair value of interest rate swap agreement to hedge cash flows	$ 913,000

XML

ACCRUED AND OTHER LIABILITIES - Components (Details)	6 Months Ended
	Jun. 30, 2018 USD ($) $ / item	Dec. 31, 2017 USD ($)
ACCRUED AND OTHER LIABILITIES
Golf $1 Round Surcharge	$ 630,000	$ 700,000
Accrued Property Taxes	1,372,678	66,909
Tenant Leasing Reserve Escrow	917,748
Reserve for Tenant Improvements	136,157	3,302,831
Accrued Construction Costs	190,998	1,360,950
Accrued Interest	1,189,668	1,194,681
Environmental Reserve and Restoration Cost Accrual	572,197	866,936
Other	2,829,020	2,668,219
Total Accrued and Other Liabilities	$ 7,838,466	$ 10,160,526
Annual surcharge, per round of golf played | $ / item	1

XML

ACCRUED AND OTHER LIABILITIES - Golf Course Lease and Surcharge (Details)		6 Months Ended
	Jan. 24, 2017 USD ($)	Jun. 30, 2018 USD ($) $ / item	Dec. 31, 2017 USD ($)
Accrued and other liabilities
Land and land improvements acquired		$ 2,141,853
Annual surcharge, per round of golf played | $ / item		1
Minimum annual per round surcharge		$ 70,000
Maximum Aggregate Amount of Per Round Surcharge		700,000
Accrued surcharge commitment		$ 630,000	$ 700,000
Golf course land purchase
Accrued and other liabilities
Land and land improvements acquired	$ 1,500,000

XML

ACCRUED AND OTHER LIABILITIES - Tenant Leasing Reserve Escrow (Details) - USD ($)	Feb. 21, 2018	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
ACCRUED AND OTHER LIABILITIES
Master Tenant Funded Incurred Related To Leasing Reserve Escrow	$ 2,250,000	$ 935,000
Eligible costs funded from escrow account	1,300,000
Cost incurred related to property acquisition	935,000
Base rent payments	398,000
Escrow balance	918,000	$ 2,419,686	$ 6,508,131	$ 4,727,381
Maximum rent payments	$ 1,000,000

XML

ACCRUED AND OTHER LIABILITIES - Tenant Improvement Credits (Details)		6 Months Ended
	Apr. 28, 2017 USD ($)	Jun. 30, 2018 USD ($) building	Dec. 31, 2017 USD ($)
Accrued and other liabilities
Tenant improvements		$ 136,157	$ 3,302,831
Hilton Grand Vacations
Accrued and other liabilities
Tenant improvements		$ 2,700,000
Number of real estate properties | building		2
Tenant improvements completed and funded		$ 2,700,000
Tampa, Florida | Property | Tenant reimbursement commitment | 2017 acquisitions of income property subject to a lease
Accrued and other liabilities
Liability incurred	$ 400,000

XML

ACCRUED AND OTHER LIABILITIES - Environmental Reserves (Details)		3 Months Ended		6 Months Ended	12 Months Ended		24 Months Ended	30 Months Ended
	Jun. 30, 2016 USD ($)	Dec. 31, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2015 USD ($) a	Dec. 31, 2014 USD ($) a	Dec. 31, 2015 USD ($) a	Jun. 30, 2018 USD ($)	Mar. 31, 2017 USD ($)
Environmental Reserve for Monitoring Environmental Remediation Work Previously Performed
Environmental reserves
Additional environmental reserve accrued		$ 51,000			$ 500,000	$ 110,000	$ 661,000
Environmental costs funded				$ 552,000
Environmental reserve accrued				109,000				$ 109,000
Wetlands restoration
Environmental reserves
Acres | a					148.4		148.4
Estimated cost	$ 2,000,000		$ 2,000,000	2,000,000				2,000,000
Environmental costs funded				1,600,000				1,600,000
Accrued restoration cost				$ 464,000	$ 1,700,000		$ 1,700,000	$ 464,000	$ 708,000
Area of previously disposed land subject to remediation | a					148.4		148.4
Increase in accrual of remediation costs			$ 300,000
Minimum | Environmental Reserve for Monitoring Environmental Remediation Work Previously Performed
Environmental reserves
Estimated cost					$ 500,000
Minimum | Wetlands restoration
Environmental reserves
Estimated cost					1,700,000
Maximum | Environmental Reserve for Monitoring Environmental Remediation Work Previously Performed
Environmental reserves
Acres | a						1
Estimated cost					1,000,000
Maximum | Wetlands restoration
Environmental reserves
Estimated cost					$ 1,900,000

XML

DEFERRED REVENUE - Summary of Deferred Revenue (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
DEFERRED REVENUE
Deferred Oil Exploration Lease Revenue	$ 185,648	$ 585,675
Deferred Revenue on Land Sales	846,545
Prepaid Rent	1,079,747	1,126,408
Tenant Contributions	4,227,953
Other Deferred Revenue	528,772	318,376
Total Deferred Revenue	$ 6,868,665	$ 2,030,459

XML

DEFERRED REVENUE - Rent Paid in Advance (Details) - USD ($)			3 Months Ended		6 Months Ended
	Feb. 21, 2018	Oct. 11, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018	Dec. 31, 2017	Sep. 20, 2017	Dec. 31, 2011
Deferred revenue
Rent payment received		$ 807,000
Period over which rent received in advance is recognized		12 months
Deferred Revenue			$ 6,868,665		$ 6,868,665			$ 2,030,459
Acquisition of Property, Plant, and Equipment and Intangible Lease Assets and Liabilities					28,908,410	$ 46,621,871
Lease Revenue			9,948,000	$ 7,778,000	19,336,000	15,053,000
Master tenant funded incurred related to property acquisition from their leasing reserve escrow	$ 2,250,000		935,000		935,000
Aggregate contributions related to total acquisition cost will be recognized into income property rental revenue over the remaining term of the lease			29,000,000		29,000,000
Oil exploration
Deferred revenue
Lease term									13 years
Lease Revenue			201,000	$ 201,000	400,000	$ 400,000
Aspen, Colorado
Deferred revenue
Deferred Revenue			2,400,000		2,400,000
Tenant Contributions	1,500,000				1,500,000
Acquisition of Property, Plant, and Equipment and Intangible Lease Assets and Liabilities	$ 28,000,000
Lease Revenue					41,000
Florida
Deferred revenue
Deferred Revenue			1,800,000		1,800,000
Tenant Contributions					1,900,000
Lease Revenue					54,000
Maximum | Oil exploration
Deferred revenue
Lease term		13 years								8 years
Buc'ees - East of I-95
Deferred revenue
Escrow reserve			831,000		831,000		$ 831,000
Remaining gain to be recognized			$ 831,000		$ 831,000		831,000
Deferred Revenue							$ 25,000

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STOCK-BASED COMPENSATION - All Equity and Liability Classified Award Activity (Details) - USD ($)						3 Months Ended		6 Months Ended
	Jan. 24, 2018	Feb. 03, 2017	Jan. 25, 2017	Jan. 27, 2016	Jan. 22, 2014	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Shares
Outstanding (in shares)								169,775
Granted (in shares)								33,157
Vested / Exercised (in shares)								(26,633)
Outstanding (in shares)						176,299		176,299
Total Cost of Share-Based Plans Charged Against Income Before Tax Effect						$ 430,054	$ 389,585	$ 897,325	$ 743,164
Income Tax Expense Recognized in Income						$ (108,997)	$ (150,283)	$ (227,427)	$ (286,676)
Stock Option Awards
Shares
Outstanding (in shares)								0
Peer Group Market Condition Vesting | Performance Shares
Shares
Outstanding (in shares)								12,635
Granted (in shares)	15,445	12,635						15,445
Outstanding (in shares)						28,080		28,080
Stock Price Vesting | Restricted Shares
Shares
Outstanding (in shares)								29,750
Exercised (in shares)								(7,750)
Outstanding (in shares)						22,000		22,000
Three-Year Vesting | Restricted Shares
Shares
Outstanding (in shares)								37,390
Granted (in shares)	17,712		17,451	21,100	14,500			17,712
Vested (in shares)								(18,883)
Outstanding (in shares)						36,219		36,219
Shares
Outstanding (in shares)								37,390
Granted (in shares)								17,712
Exercised (in shares)								(18,883)
Outstanding (in shares)						36,219		36,219
Amended and Restated 2010 Equity Incentive Plan | Stock Option Awards
Shares
Outstanding (in shares)								90,000
Granted (in shares)								0
Exercised (in shares)								0
Outstanding (in shares)						90,000		90,000
Shares
Outstanding (in shares)								90,000
Outstanding (in shares)						90,000		90,000

XML

STOCK-BASED COMPENSATION - Performance Share Awards – Peer Group Market Condition Vesting (Details) - Performance Shares - Peer Group Market Condition Vesting - USD ($) $ / shares in Units, $ in Millions			6 Months Ended
	Jan. 24, 2018	Feb. 03, 2017	Jun. 30, 2018
Stock-based compensation
Performance period	3 years		3 years
Shares
Outstanding (in shares)			12,635
Granted (in shares)	15,445	12,635	15,445
Outstanding (in shares)			28,080
Weighted Average Fair Value
Outstanding (in dollars per share)			$ 55.66
Granted (in dollars per share			74.99
Outstanding (in dollars per share)			$ 66.29
Compensation cost
Unrecognized compensation cost			$ 1.3
Weighted average period of recognition of unrecognized compensation cost			2 years 2 months 12 days
Minimum
Stock-based compensation
Vesting percentage	0.00%	0.00%
Maximum
Stock-based compensation
Vesting percentage	150.00%	150.00%

XML

STOCK-BASED COMPENSATION - Market Condition Restricted Shares - Stock Price Vesting (Details)				3 Months Ended			6 Months Ended		12 Months Ended		24 Months Ended
	Aug. 04, 2017	Aug. 01, 2017 $ / shares shares	Feb. 26, 2016 item $ / shares shares	Jun. 30, 2015 item shares	Mar. 31, 2015 $ / shares shares	Dec. 31, 2014 shares	Jun. 30, 2018 USD ($) item $ / shares shares	Mar. 31, 2015 item $ / shares	Dec. 31, 2012 $ / shares shares	Dec. 31, 2011 shares	Dec. 31, 2012 item $ / shares
Stock Price Vesting | Restricted Shares | Mr. Albright | 2015 and February 26, 2016 grants
Stock-based compensation
Number of increments vested | item							2
Stock Price Vesting | Restricted Shares | Mr. Patten
Stock-based compensation
Number of increments vested | item							6
Stock Price Vesting | Restricted Shares
Shares
Outstanding (in shares)							29,750
Vested (in shares)							(7,750)
Outstanding (in shares)							22,000
Weighted Average Fair Value
Outstanding (in dollars per share) | $ / shares							$ 39.07
Vested (in dollars per share) | $ / shares							31.58
Outstanding (in dollars per share) | $ / shares							$ 41.71
Compensation cost
Unrecognized compensation cost | $							$ 0
Stock Price Vesting | Restricted Shares | Mr. Albright
Stock-based compensation
Number of increments to vest | item			4	4
Restricted share award period after termination of employment			60 days	60 days
Period for average closing price			30 days	30 days
Stock based compensation, shares, surrendered			72,000
Stock based compensation, shares, permanently surrendered			68,000
Shares
Granted (in shares)			4,000	94,000						96,000
Outstanding (in shares)			26,000
Stock Price Vesting | Restricted Shares | Mr. Patten
Shares
Granted (in shares)									17,000
Stock Price Vesting | Restricted Shares | Mr. Smith
Shares
Granted (in shares)						2,500
Stock Price Vesting | Restricted Shares | Mr. Albright and Mr. Patten
Stock-based compensation
Number of increments to vest | item											6
Restricted share award period after termination of employment											60 days
Period for average closing price											60 days
Period subject to stock price condition											6 years
Number of increments vested | item							4
Stock Price Vesting | Restricted Shares | Mr. Albright and Mr. Patten | Minimum
Stock-based compensation
Closing share price (in dollars per share) | $ / shares									$ 36		$ 36
Stock Price Vesting | Restricted Shares | Mr. Albright and Mr. Patten | Maximum
Stock-based compensation
Closing share price (in dollars per share) | $ / shares									$ 65		$ 65
Stock Price Vesting | Restricted Shares | Mr. Smith and other Officer
Stock-based compensation
Number of increments to vest | item								2
Restricted share award period after termination of employment								60 days
Period for average closing price								60 days
Period subject to stock price condition								6 years
Stock Price Vesting | Restricted Shares | Mr. Smith and other Officer | Minimum
Stock-based compensation
Closing share price (in dollars per share) | $ / shares					$ 60			$ 60
Stock Price Vesting | Restricted Shares | Mr. Smith and other Officer | Maximum
Stock-based compensation
Closing share price (in dollars per share) | $ / shares					$ 65			$ 65
Stock Price Vesting | Restricted Shares | Officer
Shares
Granted (in shares)					3,000
Share-based Compensation Award Stock Price Vesting Price Increment One | Restricted Shares | Mr. Albright
Stock-based compensation
Number of increments to vest | item			2
Number of shares in each vesting increment			2,000
Shares
Expired (in shares)		32,000
Share-based Compensation Award Stock Price Vesting Price Increment One | Restricted Shares | Mr. Albright | Minimum
Stock-based compensation
Closing share price (in dollars per share) | $ / shares		$ 60	$ 60
Share-based Compensation Award Stock Price Vesting Price Increment One | Restricted Shares | Mr. Albright | Maximum
Stock-based compensation
Closing share price (in dollars per share) | $ / shares		$ 65	65
Share-based Compensation Award Stock Price Vesting Price Increment Two | Restricted Shares | Mr. Albright
Stock-based compensation
Closing share price (in dollars per share) | $ / shares			$ 70
Number of shares in each vesting increment			18,000
Share-based Compensation Award Stock Price Vesting Price Increment Three | Restricted Shares | Mr. Albright
Stock-based compensation
Closing share price (in dollars per share) | $ / shares			$ 75
Number of shares in each vesting increment			4,000
Equity Award Agreements | Mr. Albright
Stock-based compensation
Term of employment agreement				5 years
Equity Award Agreements | Stock Price Vesting
Award agreements
Period after change of control for equity award to fully vest upon termination of employment without cause or resignation	24 months
Equity Award Agreements | Stock Price Vesting
Award agreements
Period after change of control for equity award to fully vest upon termination of employment without cause or resignation	24 months		24 months

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STOCK-BASED COMPENSATION - Three Year Vest Restricted Shares (Details) - Three-Year Vesting - USD ($) $ / shares in Units, $ in Millions								6 Months Ended
	Jan. 24, 2018	Aug. 04, 2017	Jan. 25, 2017	Jan. 27, 2016	Feb. 09, 2015	Jan. 28, 2015	Jan. 22, 2014	Jun. 30, 2018
Restricted Shares
Stock-based compensation
Vesting per year (as a percent)	33.00%		33.00%	33.00%			33.00%
Shares
Outstanding (in shares)								37,390
Granted (in shares)	17,712		17,451	21,100			14,500	17,712
Vested (in shares)								(18,883)
Outstanding (in shares)								36,219
Weighted Average Fair Value
Outstanding (in dollars per share)								$ 51.39
Granted (in dollars per share								65.33
Vested (in dollars per share)								51.57
Outstanding (in dollars per share)								$ 58.12
Compensation cost
Unrecognized compensation cost								$ 1.7
Weighted average period of recognition of unrecognized compensation cost								2 years 1 month 6 days
Restricted Shares | Certain employees, excluding Mr. Albright
Stock-based compensation
Vesting per year (as a percent)						33.00%
Shares
Granted (in shares)						11,700
Restricted Shares | Mr. Albright
Stock-based compensation
Vesting per year (as a percent)					33.00%
Shares
Granted (in shares)					8,000
Equity Award Agreements
Award agreements
Period after change of control for equity award to fully vest upon termination of employment without cause or resignation		24 months

XML

STOCK-BASED COMPENSATION - Non-Qualified Stock Option Awards Granted (Details) - Stock Option Awards - Amended and Restated 2010 Equity Incentive Plan - $ / shares							6 Months Ended	12 Months Ended
	Aug. 04, 2017	Feb. 26, 2016	Jun. 29, 2015	May 20, 2015	Feb. 09, 2015	Jan. 23, 2013	Jun. 30, 2018	Dec. 31, 2014	Dec. 31, 2012	Dec. 31, 2011
Stock-based compensation
Granted (in shares)							0
Exercised (in shares)							0
Albright, Patten, and Smith
Stock-based compensation
Granted (in shares)								10,000	10,000	50,000
Vesting per year (as a percent)								33.33%	33.33%	33.33%
Period of expiration from grant date								10 years	10 years	10 years
Period of expiration after death or termination for disability								12 months	12 months	12 months
Period of expiration after termination of employment for reason other than death or disability								30 days	30 days	30 days
Certain employees
Stock-based compensation
Granted (in shares)						51,000
Vesting per year (as a percent)						33.00%
Period of expiration from grant date						5 years
Period of expiration after death or termination for disability						12 months
Period of expiration after termination of employment for reason other than death or disability						30 days
Mr. Patten
Stock-based compensation
Granted (in shares)						10,000
Mr. Albright
Stock-based compensation
Granted (in shares)		40,000		40,000	20,000
Period of expiration after death or termination for disability		12 months			12 months
Period of expiration after termination of employment for reason other than death or disability		30 days			30 days
Exercise price (in dollars per share)				$ 55.62	$ 57.50
Surrendered (in shares)		40,000
Mr. Albright | Immediate vesting
Stock-based compensation
Vesting percentage		33.00%
Mr. Albright | Vesting on designated anniversary dates
Stock-based compensation
Vesting percentage		67.00%
Officer
Stock-based compensation
Granted (in shares)			10,000
Vesting per year (as a percent)			33.00%
Period of expiration after death or termination for disability			12 months
Period of expiration after termination of employment for reason other than death or disability			30 days
Exercise price (in dollars per share)			$ 57.54
Equity Award Agreements
Award agreements
Period after change of control for equity award to fully vest upon termination of employment without cause or resignation	24 months

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STOCK-BASED COMPENSATION - Non-Qualified Stock Option Award Activity (Details) - Stock Option Awards - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Shares
Outstanding (in shares)	0
Outstanding (in shares)		0
Exercisable (in shares)		0
Amended and Restated 2010 Equity Incentive Plan
Shares
Outstanding (in shares)	90,000
Granted (in shares)	0
Exercised (in shares)	0
Outstanding (in shares)	90,000	90,000
Exercisable (in shares)	90,000	73,000
Weighted Average Exercise Price (in dollars per share)
Outstanding (in dollars per share)	$ 52.71
Outstanding (in dollars per share)	52.71	$ 52.71
Exercisable (in dollars per share)	$ 52.71	$ 51.94
Weighted Average Remaining Contractual Term
Outstanding	6 years 5 months 23 days
Exercisable	6 years 5 months 23 days	6 years 10 months 17 days
Stock-based compensation
Aggregate Intrinsic Value, Outstanding (in dollars)	$ 792,300
Aggregate Intrinsic Value, Exercisable (in dollars)	$ 792,300	$ 843,968

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STOCK-BASED COMPENSATION - Non-Qualified Stock Option Non-Vested Award Activity (Details) - Amended and Restated 2010 Equity Incentive Plan - Stock Option Awards	6 Months Ended
	Jun. 30, 2018 USD ($) shares
Non-Vested Shares
Outstanding (in shares)	17,000
Granted (in shares)	0
Vested (in shares)	(17,000)
Stock-based compensation
Fair Value of Shares Vested | $	$ 952,068

XML

STOCK-BASED COMPENSATION - Liability-Classified Stock Compensation Activity (Details) - shares	Dec. 31, 2017	Dec. 31, 2010	Dec. 31, 2009
Stock Option Awards
Shares
Exercisable (in shares)	0
2001 Stock Option Plan
Stock-based compensation
Shares eligible for issuance			500,000
2001 Stock Option Plan | Stock Option Awards
Stock-based compensation
Awards available for issue ( in shares)		0

XML

INCOME TAXES (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
INCOME TAXES
Effective income tax rate	24.90%	38.50%
Corporate tax rate (as a percent)	21.00%		35.00%

XML

COMMITMENTS AND CONTINGENCIES - Contractual Commitments - Expenditures (Details)			1 Months Ended			3 Months Ended		6 Months Ended	12 Months Ended
	Aug. 01, 2018 a	Apr. 05, 2018 plan	Jan. 31, 2018 USD ($)	Dec. 31, 2015 USD ($) a	Dec. 31, 2013 USD ($) a	Jun. 30, 2017 USD ($) a	Mar. 31, 2017 a	Jun. 30, 2018 USD ($) plan $ / item	Dec. 31, 2013 USD ($) a	Apr. 30, 2018 USD ($)	Mar. 31, 2018 USD ($)	Feb. 21, 2018 USD ($)	Dec. 31, 2017 USD ($)
Commitments
Number of equity incentive plan | plan		21
Restricted Cash						$ 4,727,381		$ 2,419,686				$ 918,000	$ 6,508,131
Acres sold | a	4,286					81.4	1,587.4
Obligations
Annual surcharge, per round of golf played | $ / item								1
Minimum annual per round surcharge								$ 70,000
Maximum aggregate amount of per round surcharge								700,000
Accrued surcharge commitment								630,000					$ 700,000
Annual payment			$ 70,000
Race Trac
Commitments
Acres sold | a					3.4
Sam's Club affiliate
Commitments
Acres sold | a				18.1
Sam's Club affiliate | Buyer reimbursement
Commitments
Deposit of cash in escrow classified as restricted cash				$ 125,000
Restricted Cash								125,000
Williamson Crossing site
Commitments
Acres | a					19.6				19.6
Williamson Crossing site | Road and other land improvements
Commitments
Area of land subject to contractual commitment | a					23
Estimated cost for improvements					$ 1,260,000
Williamson Crossing site | Buyer reimbursement
Commitments
Commitment amount					$ 976,500				$ 976,500
Deposit of cash in escrow classified as restricted cash									$ 283,500
Reimbursement period of land improvement cost					5 years
Funding from escrow								283,500
The Grove at Winter Park | Construction commitment
Commitments
Cost of contractual obligation incurred								596,000
Commitment amount										$ 638,000	$ 42,000
Maximum | Sam's Club affiliate | Buyer reimbursement
Commitments
Commitment amount								125,000
Maximum | Williamson Crossing site | Buyer reimbursement
Commitments
Commitment amount								$ 693,000
Employees
Commitments
Number of equity incentive plan | plan		14
Non Employees
Commitments
Number of equity incentive plan | plan		7
Subsidiaries | Employees
Commitments
Number of equity incentive plan | plan								0

XML

COMMITMENTS AND CONTINGENCIES - Contractual Commitments - Land Pipeline (Details) $ in Thousands		3 Months Ended
	Aug. 01, 2018 USD ($) a entity $ / a	Jun. 30, 2017 a	Mar. 31, 2017 a
Contracts
Number of purchase and sale agreements | entity	17
Number of buyers | entity	14
No. of Acres | a	4,286	81.4	1,587.4
Area of land sales as a percentage of land holdings	78.00%
Contract Amount | $	$ 179,176
Price per Acre | $ / a	42,000
Buyer's option
Contracts
No. of Acres | a	71
Contract Amount | $	$ 925
Base contract
Contracts
No. of Acres | a	129
Contract Amount | $	$ 2,250
Commercial/Retail | O'Connor - West of I-95
Contracts
No. of Acres | a	850
Contract Amount | $	$ 34,000
Price per Acre | $ / a	40,000
Commercial/Retail | O'Connor - East Of I-95
Contracts
No. of Acres | a	123
Contract Amount | $	$ 29,250
Price per Acre | $ / a	238,000
Commercial/Retail | Buc'ees - East of I-95 | Minimum
Contracts
Cost of requisite mitigation credits as a percentage of land sale contract amount	5.00%
Commercial/Retail | Buc'ees - East of I-95 | Maximum
Contracts
Cost of requisite mitigation credits as a percentage of land sale contract amount	10.00%
Commercial/Retail | Property East of I-95, one
Contracts
No. of Acres | a	20
Contract Amount | $	$ 4,250
Price per Acre | $ / a	213,000
Commercial/Retail | Property East of I-95, one | Minimum
Contracts
Cost of requisite mitigation credits as a percentage of land sale contract amount	5.00%
Commercial/Retail | Property East of I-95, one | Maximum
Contracts
Cost of requisite mitigation credits as a percentage of land sale contract amount	10.00%
Commercial/Retail | Property East of I-95, two
Contracts
No. of Acres | a	9
Contract Amount | $	$ 3,300
Price per Acre | $ / a	367,000
Commercial/Retail | Property East of I-95, three
Contracts
No. of Acres | a	2
Contract Amount | $	$ 1,500
Price per Acre | $ / a	682,000
Residential (AR) | Minto Communities - West of I-95
Contracts
No. of Acres | a	1,614
Contract Amount | $	$ 26,500
Price per Acre | $ / a	16,000
Residential (SF) | ICI Homes - West of I-95
Contracts
No. of Acres | a	1,016
Contract Amount | $	$ 21,000
Price per Acre | $ / a	21,000
Residential (SF) | ICI Homes - West of I-95, property two
Contracts
No. of Acres | a	146
Contract Amount | $	$ 1,400
Price per Acre | $ / a	10,000
Residential (SF) | Property west of Interstate 95
Contracts
No. of Acres | a	200
Contract Amount | $	$ 3,175
Price per Acre | $ / a	16,000
Real Estate Operations | BlackRock - West of I-95
Contracts
No. of Acres | a	80
Contract Amount | $	$ 16,000
Price per Acre | $ / a	200,000
Mixed-Use Retail | North American - East of I-95
Contracts
No. of Acres | a	35
Contract Amount | $	$ 14,362
Price per Acre | $ / a	409,000
Commercial/Medical Office | Property East of I-95, one
Contracts
No. of Acres | a	32
Contract Amount | $	$ 8,089
Price per Acre | $ / a	253,000
Commercial/Medical Office | Property East of I-95, four
Contracts
No. of Acres | a	4
Contract Amount | $	$ 935
Price per Acre | $ / a	234,000
Residential (Multi-Family) | Property east of Interstate 95
Contracts
No. of Acres | a	45
Contract Amount | $	$ 5,200
Price per Acre | $ / a	116,000
Residential (Multi-Family) | Buyer's option | Property east of Interstate 95
Contracts
No. of Acres | a	19
Contract Amount | $	$ 2,000
Residential (Multi-Family) | Base contract | Property east of Interstate 95
Contracts
No. of Acres | a	26
Contract Amount | $	$ 3,200
Distribution/Warehouse | Property east of Interstate 95
Contracts
No. of Acres | a	71
Contract Amount | $	$ 5,000
Price per Acre | $ / a	70,000
Commercial/Distribution | Property east of Interstate 95
Contracts
No. of Acres | a	26
Contract Amount | $	$ 3,215
Price per Acre | $ / a	124,000
Auto Dealership | Property west of Interstate 95
Contracts
No. of Acres | a	13
Contract Amount | $	$ 2,000
Price per Acre | $ / a	154,000

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COMMITMENTS AND CONTINGENCIES - Other Matters (Details)				3 Months Ended						6 Months Ended		12 Months Ended		21 Months Ended	30 Months Ended
	Aug. 01, 2018 a	Jun. 30, 2017 USD ($) a item	Jun. 30, 2016 USD ($)	Jun. 30, 2018 USD ($) a	Mar. 31, 2018 a	Dec. 31, 2017 USD ($)	Jun. 30, 2017 USD ($) a	Mar. 31, 2017 USD ($) a	Jun. 30, 2016 USD ($)	Jun. 30, 2018 USD ($) a	Jun. 30, 2017 USD ($) a	Dec. 31, 2017 USD ($)	Dec. 31, 2015 USD ($) a	Dec. 31, 2017 USD ($)	Jun. 30, 2018 USD ($)	Feb. 21, 2018 USD ($)
Contingencies
Acres sold | a	4,286						81.4	1,587.4
Escrow balance		$ 4,727,381		$ 2,419,686		$ 6,508,131	$ 4,727,381			$ 2,419,686	$ 4,727,381	$ 6,508,131		$ 6,508,131	$ 2,419,686	$ 918,000
Unfavorable regulatory action
Contingencies
Accrued loss contingency													$ 187,500
Wintergreen Advisers, LLC maters
Contingencies
Cost incurred												1,600,000		3,000,000
Legal representation and third party costs										$ 944,000		1,200,000
Minto Communities LLC
Contingencies
Acres sold | a								1,581
Number of mitigation credits required to be utilized | item		36
Land Sales
Contingencies
Acres sold | a				32.4	34.9					67.3	1,668.8
Wetlands restoration
Contingencies
Acres | a													148.4
Estimated cost			$ 2,000,000						$ 2,000,000	$ 2,000,000					2,000,000
Increase in accrual of remediation costs									$ 300,000
Environmental costs funded										1,600,000					1,600,000
Accrued restoration cost				$ 464,000				$ 708,000		$ 464,000			$ 1,700,000		$ 464,000
Wetlands restoration | Minto Communities LLC
Contingencies
Cash deposited in (refunded from) escrow						189,500	$ 423,000
Escrow balance						$ 234,000						$ 234,000		$ 234,000
Wetlands restoration | Minimum
Contingencies
Estimated cost													1,700,000
Wetlands restoration | Maximum
Contingencies
Estimated cost													$ 1,900,000
Mitigation activities
Contingencies
Acres | a		54.66					54.66				54.66
Mitigation credits transferred							$ 298,000

XML

BUSINESS SEGMENT DATA - Description (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2018 segment loan item property	Jun. 30, 2017	Dec. 31, 2017
Business segment data
Number of business segments | segment	4
Golf Operations
Business segment data
Number of golf courses owned | property	2
Number of holes to the golf course | item	18
Commercial loans
Business segment data
Number of mortgage loan investments | loan	1
Product concentration | Identifiable assets | Income Properties
Business segment data
Percentage of total	87.50%		83.40%
Product concentration | Consolidated revenues | Income Properties
Business segment data
Percentage of total	49.10%	23.80%

XML

BUSINESS SEGMENT DATA - Summary of Operations in Different Segments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Business segment data
Revenues	$ 13,833,185	$ 22,837,783	$ 38,684,784	$ 61,551,067
Operating Income	21,498,490	8,040,407	38,485,332	30,889,818
Other Gains and Income	18,384,808		22,035,666	2,226,526
Depreciation and Amortization	3,854,938	3,215,690	7,755,317	5,978,265
Identifiable Assets	480,549,646		480,549,646		$ 466,130,378
Operating Segments
Business segment data
Capital Expenditures	2,396,139	23,054,515	32,426,600	46,611,872
General and Corporate Expense
Business segment data
Operating Income	(6,284,119)	(5,942,877)	(13,008,046)	(11,925,599)
Income Properties
Business segment data
Revenues	9,781,299	7,565,007	18,987,026	14,638,247
Depreciation and Amortization	3,746,762	3,108,494	7,534,177	5,794,806
Identifiable Assets	420,261,037		420,261,037		388,602,721
Income Properties | Operating Segments
Business segment data
Operating Income	7,746,410	5,935,492	15,083,108	11,597,019
Capital Expenditures	969,326	22,748,812	28,884,588	44,686,344
Commercial Loan Investments
Business segment data
Revenues	273,467	553,159	574,466	1,089,648
Identifiable Assets	2,994,916		2,994,916		11,963,777
Commercial Loan Investments | Operating Segments
Business segment data
Operating Income	273,467	553,159	574,466	1,089,648
Real Estate Operations
Business segment data
Revenues	2,484,314	13,257,355	16,463,644	42,731,815
Identifiable Assets	41,388,054		41,388,054		43,296,528
Real Estate Operations | Operating Segments
Business segment data
Operating Income	1,614,044	7,464,826	14,057,712	27,782,437
Capital Expenditures	1,393,811		3,505,794
Golf Operations
Business segment data
Revenues	1,282,918	1,383,513	2,637,274	2,858,457
Depreciation and Amortization	99,393	95,323	202,949	160,690
Identifiable Assets	5,709,161		5,709,161		6,262,634
Golf Operations | Operating Segments
Business segment data
Operating Income	(242,135)	(18,406)	(269,604)	(42,140)
Capital Expenditures	22,217	266,758	24,880	1,874,500
Agriculture and Other Income
Business segment data
Revenues	11,187	78,749	22,374	232,900
Depreciation and Amortization	8,783	11,873	18,191	22,769
Identifiable Assets	10,196,478		10,196,478		$ 16,004,718
Agriculture and Other Income | Operating Segments
Business segment data
Operating Income	6,015	48,213	12,030	161,927
Capital Expenditures	$ 10,785	$ 38,945	$ 11,338	$ 51,028