Business Segments

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Business Segments

(3) Business Segments. The Company is reporting its financial performance based on four reportable segments, Asset Management, Mining Royalty Lands, Land Development and Construction and RiverFront on the Anacostia, as described below.

The Asset Management segment owns, leases and manages warehouse/office buildings located predominately in the Baltimore/Northern Virginia/Washington, DC market area.

Our Mining Royalty Lands segment owns several properties comprising approximately 15,000 acres currently under lease for mining rents or royalties (this does not include the 4,280 acres owned in our Brooksville joint venture with Vulcan Materials).  Other than one location in Virginia, all of these properties are located in Florida and Georgia. 

Through our Land Development and Construction segment, we own and are continuously monitoring for their “highest and best use” several parcels of land that are in various stages of development.  Our overall strategy in this segment is to convert all of our non-income producing lands into income production through (i) an orderly process of constructing new buildings for us to own and operate or (ii) a sale to, or joint venture with, third parties.

In July 2017, Phase I (Dock 79) of the development known as RiverFront on the Anacostia in Washington, D.C., a 300,000 square foot residential apartment building developed by a joint venture between the Company and MRP SE Waterfront Residential, LLC (“MRP”), reached stabilization, meaning 90% of the individual apartments have been leased and are occupied by third party tenants. Upon reaching stabilization, the Company has, for a period of one year, the exclusive right to (i) cause the joint venture to sell the property or (ii) cause the Company’s and MRP’s percentage interests in the joint venture to be adjusted so as to take into account the value of the development at the time of stabilization. The attainment of stabilization also resulted in a change of control for accounting purposes as the veto rights of the minority shareholder lapsed and the Company became the primary beneficiary. As such, beginning July 1, 2017, the Company consolidated the assets (at current fair value), liabilities and operating results of the joint venture as a new segment called RiverFront on the Anacostia.

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

	Three Months ended
	March 31,
		2018		2017
Revenues:
Asset management	$	8,128		7,285
Mining royalty lands		1,772		1,762
Land development and construction		297		275
Riverfront on the Anacostia		2,425		—
	$	12,622		9,322
Operating profit (Loss):
Before corporate expenses: Asset management	$	3,767		3,501
Mining royalty lands		1,618		1,625
Land development and construction		(387	)	(395	)
Riverfront on the Anacostia		(714	)	—
Corporate expenses:
Allocated to asset management		(788	)	(753	)
Allocated to mining royalty		(77	)	(66	)
Allocated to land development and construction		(419	)	(508	)
Allocated to Riverfront on the Anacostia		(142	)	—
		(1,426	)	(1,327	)
	$	2,858		3,404
Interest expense:
Asset management	$	290		248
Riverfront on the Anacostia		953		—
	$	1,243		248
Depreciation, depletion and amortization:
Asset management	$	2,016		1,965
Mining royalty lands		54		39
Land development and construction		57		55
Riverfront on the Anacostia		2,156		—
	$	4,283		2,059
Capital expenditures:
Asset management	$	902		2,259
Mining royalty lands		—		—
Land development and construction		925		1,470
Riverfront on the Anacostia		(243	)	—
	$	1,584		3,729
		March 31,		December 31,
Identifiable net assets		2018		2017
Asset management	$	186,711		179,654
Mining royalty lands		38,579		38,656
Land development and construction		39,220		46,684
Riverfront on the Anacostia		142,121		144,386
Cash items		6,961		4,524
Unallocated corporate assets		4,392		4,830
	$	417,984		418,734