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Business Segments
 12 Months Ended
Dec. 31, 2022
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 in-service commercial properties wholly owned by the Company. Currently this includes seven warehouses in two business parks, an office building partially occupied by the Company, and two ground leases.

 

Our Mining Royalty Lands segment owns several properties comprising approximately 16,650 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.

 

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

                           
      Years Ended December 31,
      2022   2021   2020
  Revenues:            
Revenues  Asset management   $ 3,681       2,575       2,747  
Revenues  Mining royalty lands     10,683       9,465       9,477  
Revenues  Development     1,674       1,563       1,152  
Revenues  Stabilized Joint Venture     21,443       17,617       10,207  
Revenues     $ 37,481       31,220       23,583  
  Operating profit:                        
  Before corporate expenses:                        
Operating profit before corporate expenses  Asset management   $ 1,592       612       907  
Operating profit before corporate expenses  Mining royalty lands     9,305       8,558       8,629  
Operating profit before corporate expenses  Development     (2,791 )     (2,548 )     (2,576 )
Operating profit before corporate expenses  Stabilized Joint Venture     3,552       (1,277 )      1,685  
Operating profit before corporate expenses  Operating profit before corporate expenses     11,658       5,345       8,645  
   Corporate expenses:                        
Corporate expenses   Allocated to asset management     (632 )     (843 )     (909 )
Corporate expenses   Allocated to mining royalty lands     (414 )     (318 )     (288 )
Corporate expenses   Allocated to Development     (2,284 )     (1,557 )     (2,108 )
Corporate expenses   Allocated to Stabilized Joint Venture     (332 )     (353 )     (206 )
Corporate expenses       (3,662 )     (3,071 )     (3,511 )
Operating profit     $ 7,996       2,274       5,134  
                           
Interest expense Interest expense   $ 3,045       2,304       1,100  
                           
  Depreciation, depletion and amortization:                        
Depreciation, depletion and amortization  Asset management   $ 907       578       652  
Depreciation, depletion and amortization  Mining royalty lands     586       199       218  
Depreciation, depletion and amortization  Development     189       208       214  
Depreciation, depletion and amortization  Stabilized Joint Venture     9,535       11,752       4,744  
Depreciation, depletion and amortization     $ 11,217       12,737       5,828  
  Capital expenditures:                        
Capital expenditures  Asset management   $ 1,284       852       924  
Capital expenditures  Mining royalty lands     11,218       522       —    
Capital expenditures  Development     14,521       14,242       16,547  
Capital expenditures  Stabilized Joint Venture     592       914       73  
Capital expenditures     $ 27,615       16,530       17,544  

 

 

                           
  Identifiable net assets at end of period:                        
Assets   Asset management   $ 26,053       23,897       11,172  
Assets   Mining royalty lands     48,494       37,627       37,387  
Assets   Development     188,834       176,386       196,212  
Assets   Stabilized Joint Venture     257,535       266,429       130,472  
Investments available for sale   Investments available for sale at fair value     —         4,317       75,609  
Cash   Cash items     178,294       162,273       74,105  
Assets   Unallocated corporate assets     1,874       7,261       11,403  
Assets     $ 701,084       678,190       536,360