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Business Segments
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Business Segments

 

10.Business Segments.

 

The Company is reporting its financial performance based on four reportable segments, Asset Management, Mining Royalty Lands, Development and Stabilized Joint Venture, as described below.

 

The Asset Management segment owns, leases and manages commercial properties. The flex/office warehouses in the Asset Management Segment were sold and reclassified to discontinued operations leaving only two commercial properties and one recent industrial acquisition, Cranberry Run Business Park, which we purchased in 2019. In July 2020 we sold our property located at 1801 62nd Street in Hollander Business Park, which had joined Asset Management April 1, 2019. During the fourth quarter of 2021 we completed construction on two buildings in our Hollander Business Park.

 

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 Development segment, we own and are continuously assessing for their highest and best use for 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. Additionally, our Development segment will form joint ventures on new developments of land not previously owned by the Company.

 

The Stabilized Joint Venture segment includes joint ventures which own, lease and manage buildings that have met our initial lease up criteria. Two of our joint ventures in the segment, Riverfront Investment Partners I, LLC (“Dock 79”) and Riverfront Investment Partners II, LLC (“The Maren”) are consolidated. The Maren was consolidated effective March 31, 2021 and prior periods are still reflected under the equity method. The ownership of Dock 79 and The Maren (commencing March, 2021) attributable to our partner MidAtlantic Realty Partners, LLC (MRP) is reflected on our consolidated balance sheet as a noncontrolling interest. Such noncontrolling interests are reported on the Consolidated Balance Sheets within equity but separately from shareholders' equity. On the Consolidated Statements of Income, all of the revenues and expenses from Dock 79 are reported in net income, including both the amounts attributable to the Company and the noncontrolling interest. The Maren is reflected in Equity in loss of joint ventures on the Consolidated Statements of Income for the periods up to March 31, 2021 but is reflected like Dock 79 for periods commencing April 1, 2021. The amounts of consolidated net income attributable to the noncontrolling interest is clearly identified on the accompanying Consolidated Statements of Income.

 

On May 21, 2018, the Company completed the disposition of 40 industrial warehouse properties and three additional land parcels to an affiliate of Blackstone Real Estate Partners VIII, L.P. for $347.2 million. One warehouse property valued at $11.7 million was excluded from the sale due to the tenant exercising its right of first refusal to purchase the property. On June 28, 2019, the Company completed the sale of the excluded property to the same buyer for $11.7 million. This sale constituted a major strategic shift and as a result, these properties have been reclassified as discontinued operations for all periods presented.

 

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

 

                           
      Years Ended December 31,
      2021   2020   2019
  Revenues:            
Revenues  Asset management   $ 2,575       2,747       2,190  
Revenues  Mining royalty lands     9,465       9,477       9,438  
Revenues  Development     1,563       1,152       1,164  
Revenues  Stabilized Joint Venture     17,617       10,207       10,964  
Revenues     $ 31,220       23,583       23,756  
  Operating profit:                        
  Before corporate expenses:                        
Operating profit before corporate expenses  Asset management   $ 612       907       196  
Operating profit before corporate expenses  Mining royalty lands     8,558       8,629       8,690  
Operating profit before corporate expenses  Development     (2,548 )     (2,576 )     (2,817 )
Operating profit before corporate expenses  Stabilized Joint Venture     (1,277 )      1,685       2,243  
Operating profit before corporate expenses  Operating profit before corporate expenses     5,345       8,645       8,312  
   Corporate expenses:                        
Corporate expenses   Allocated to asset management     (843 )     (909 )     (646 )
Corporate expenses   Allocated to mining royalty lands     (318 )     (288 )     (169 )

 

 

Corporate expenses   Allocated to Development     (1,557 )     (2,108 )     (1,581 )
Corporate expenses   Allocated to Stabilized Joint Venture     (353 )     (206 )     (160 )
Corporate expenses       (3,071 )     (3,511 )     (2,556 )
Operating profit     $ 2,274       5,134       5,756  
                           
Interest expense Interest expense   $ 2,304       1,100       1,054  
                           
  Depreciation, depletion and amortization:                        
Depreciation, depletion and amortization  Asset management   $ 578       652       708  
Depreciation, depletion and amortization  Mining royalty lands     199       218       177  
Depreciation, depletion and amortization  Development     208       214       214  
Depreciation, depletion and amortization  Stabilized Joint Venture     11,752       4,744       4,756  
Depreciation, depletion and amortization     $ 12,737       5,828       5,855  
  Capital expenditures:                        
Capital expenditures  Asset management   $ 852       924       9,487  
Capital expenditures  Mining royalty lands     522       —         —    
Capital expenditures  Development     14,242       16,547       631  
Capital expenditures  Stabilized Joint Venture     914       73       316  
Capital expenditures     $ 16,530       17,544       10,434  

 

                           
  Identifiable net assets at end of period:                        
Assets   Asset management   $ 23,897       11,172       18,468  
Assets   Mining royalty lands     37,627       37,387       38,409  
Assets   Development     176,386       196,212       179,357  
Assets   Stabilized Joint Venture     266,429       130,472       133,956  
Investments available for sale   Investments available for sale at fair value     4,317       75,609       137,867  
Cash   Cash items     162,273       74,105       26,793  
Assets   Unallocated corporate assets     7,261       11,403       3,298  
Assets     $ 678,190       536,360       538,148