RELATED PARTY MANAGEMENT SERVICES BUSINESS

6 Months Ended

Jun. 30, 2020

RELATED PARTY MANAGEMENT SERVICES BUSINESS

RELATED PARTY MANAGEMENT SERVICES BUSINESS

NOTE 5. RELATED PARTY MANAGEMENT SERVICES BUSINESS

PINE. Pursuant to the Company’s management agreement with PINE, we will generate a base management fee equal to 1.5% of PINE’s total equity. The structure of the base fee provides us with an opportunity for our base fee to grow should PINE’s independent board members determine to raise additional equity capital in the future. We also have an opportunity to achieve additional cash flows as Manager of PINE pursuant to the incentive fee provisions of the management agreement.

During the three and six months ended June 30, 2020, the Company earned management fee revenue from PINE totaling approximately $644,000 and $1.3 million, respectively, which is included in management services in the accompanying consolidated statements of operations. Dividend income for the three and six months ended June 30, 2020 totaled approximately $408,000 and $816,000, respectively, and is included in investment and other income in the accompanying consolidated statements of operations.

The following table represents amounts due from PINE to the Company as of June 30, 2020 and December 31, 2019 which are included in Other Assets on the consolidated balance sheets:

	As of
Description	June 30, 2020 ($000’s)		December 31, 2019 ($000’s)
Management Services Fee due from PINE	$	644	$	254
Dividend Receivable		79		71
Other		7		56
Total	$	730	$	381

Land JV. Pursuant to the terms of the operating agreement for the Land JV, the initial amount of the management fee is $20,000 per month. The management fee is evaluated quarterly and as land sales occur in the Land JV, the basis for our management fee will be reduced as the management fee is based on the value of real property that remains in the Land JV. During the three and six months ended June 30, 2020, the Company earned management fee revenue from the Land JV totaling approximately $51,000 and $105,000, respectively, which is included in management services in the accompanying consolidated statements of operations and was collected in full during the periods earned.