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Business Segments | 9 Months Ended
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Sep. 30, 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. The flex/office warehouses in the Asset Management Segment were sold (with one remaining warehouse held for sale) and reclassified to discontinued operations leaving only three office buildings. 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 MidAtlantic Realty Partners (“MRP”), reached stabilization, meaning 90% of the individual apartments have been leased and are occupied by third party tenants. Upon reaching stabilization, the Company had, 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. On May 21, 2018, the Company completed the disposition of 40 industrial warehouse properties and 3 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. 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):
|  | Three Months ended |  | Nine Months ended
|  | September 30, |  | September 30,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset management |  | $ | 568 |  |  |  | 559 |  |  |  | 1,717 |  |  |  | 1,710 |
Mining royalty lands |  |  | 2,125 |  |  |  | 1,786 |  |  |  | 5,952 |  |  |  | 5,381 |
Land development and construction |  |  | 330 |  |  |  | 323 |  |  |  | 944 |  |  |  | 931 |
RiverFront on the Anacostia |  |  | 2,719 |  |  |  | 2,367 |  |  |  | 7,757 |  |  |  | 2,367 |
|  |  | 5,742 |  |  |  | 5,035 |  |  |  | 16,370 |  |  |  | 10,389 |
Operating profit (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Before corporate expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset management |  | $ | 276 |  |  |  | 249 |  |  |  | 783 |  |  |  | 771 |
Mining royalty lands |  |  | 1,961 |  |  |  | 1,667 |  |  |  | 5,497 |  |  |  | 4,993 |
Land development and construction |  |  | (139 | ) |  |  | (390 | ) |  |  | (1,146 | ) |  |  | (1,168 | )
RiverFront on the Anacostia |  |  | 92 |  |  |  | (1,168 | ) |  |  | (915 | ) |  |  | (1,168 | )
Operating profit before corporate expenses |  |  | 2,190 |  |  |  | 358 |  |  |  | 4,219 |  |  |  | 3,428 |
Corporate expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allocated to asset management |  |  | (34 | ) |  |  | (27 | ) |  |  | (146 | ) |  |  | (118 | )
Allocated to mining royalty lands |  |  | (28 | ) |  |  | (30 | ) |  |  | (157 | ) |  |  | (124 | )
Allocated to land development and construction |  |  | (408 | ) |  |  | (210 | ) |  |  | (1,110 | ) |  |  | (935 | )
Allocated to RiverFront on the Anacostia |  |  | (52 | ) |  |  | (27 | ) |  |  | (289 | ) |  |  | (27 | )
Unallocated |  |  | — |  |  |  | (323 | ) |  |  | (1,208 | ) |  |  | (1,306 | )
Total corporate expenses |  |  | (522 | ) |  |  | (617 | ) |  |  | (2,910 | ) |  |  | (2,510 | )
|  | $ | 1,668 |  |  |  | (259 | ) |  |  | 1,309 |  |  |  | 918 |
Interest expense |  | $ | 768 |  |  |  | 783 |  |  |  | 2,418 |  |  |  | 783 |
Depreciation, depletion and amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset management |  | $ | 145 |  |  |  | 125 |  |  |  | 405 |  |  |  | 385 |
Mining royalty lands |  |  | 55 |  |  |  | 17 |  |  |  | 145 |  |  |  | 91 |
Land development and construction |  |  | 57 |  |  |  | 98 |  |  |  | 171 |  |  |  | 263 |
RiverFront on the Anacostia |  |  | 1,564 |  |  |  | 2,564 |  |  |  | 5,629 |  |  |  | 2,564 |
|  | $ | 1,821 |  |  |  | 2,804 |  |  |  | 6,350 |  |  |  | 3,303 |
Capital expenditures: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Asset management |  | $ | 17 |  |  |  | 131 |  |  |  | 184 |  |  |  | 162 |
Mining royalty lands |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Land development and construction |  |  | 4,268 |  |  |  | 292 |  |  |  | 5,578 |  |  |  | 1,999 |
RiverFront on the Anacostia |  |  | 25 |  |  |  | 331 |  |  |  | (33 | ) |  |  | 331 |
|  | $ | 4,310 |  |  |  | 754 |  |  |  | 5,729 |  |  |  | 2,492 |
|  | September 30, |  |  |  | December 31, |  |
Identifiable net assets |  | 2018 |  |  |  | 2017 |  |
Asset management | $ | 10,687 |  |  |  | 2,960 |  |
Discontinued operations |  | 3,194 |  |  |  | 176,694 |  |
Mining royalty lands |  | 38,307 |  |  |  | 38,656 |  |
Land development and construction |  | 51,801 |  |  |  | 46,684 |  |
Riverfront on the Anacostia |  | 138,853 |  |  |  | 144,386 |  |
Investments available for sale |  | 191,288 |  |  |  | — |  |
Cash items |  | 69,052 |  |  |  | 4,524 |  |
Unallocated corporate assets |  | 4,077 |  |  |  | 4,830 |  |
| $ | 507,259 |  |  |  | 418,734 |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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