Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 19, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CONSOLIDATED TOMOKA LAND CO | |
Entity Central Index Key | 23,795 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 5,553,605 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Property, Plant, and Equipment: | ||
Income Properties, Land, Buildings, and Improvements | $ 396,259,302 | $ 358,130,350 |
Golf Buildings, Improvements, and Equipment | 6,640,581 | 6,617,396 |
Other Furnishings and Equipment | 726,380 | 715,042 |
Construction in Progress | 581,611 | 6,005,397 |
Total Property, Plant, and Equipment | 404,207,874 | 371,468,185 |
Less, Accumulated Depreciation and Amortization | (25,840,495) | (23,779,780) |
Property, Plant, and Equipment - Net | 378,367,379 | 347,688,405 |
Land and Development Costs | 31,371,995 | 39,477,697 |
Intangible Lease Assets - Net | 38,606,046 | 38,758,059 |
Investment in Joint Venture | 6,701,017 | |
Impact Fee and Mitigation Credits | 725,236 | 1,125,269 |
Commercial Loan Investments | 2,994,916 | 11,925,699 |
Cash and Cash Equivalents | 4,312,324 | 6,559,409 |
Restricted Cash | 2,419,686 | 6,508,131 |
Refundable Income Taxes | 1,075,662 | 1,116,580 |
Other Assets | 13,975,385 | 12,971,129 |
Total Assets | 480,549,646 | 466,130,378 |
Liabilities: | ||
Accounts Payable | 1,745,714 | 1,880,516 |
Accrued and Other Liabilities | 7,838,466 | 10,160,526 |
Deferred Revenue | 6,868,665 | 2,030,459 |
Intangible Lease Liabilities - Net | 29,139,535 | 29,770,441 |
Deferred Income Taxes - Net | 50,603,916 | 42,293,864 |
Long-Term Debt | 177,133,608 | 195,816,364 |
Total Liabilities | 273,329,904 | 281,952,170 |
Commitments and Contingencies - See Note 18 | ||
Shareholders' Equity: | ||
Common Stock – 25,000,000 shares authorized; $1 par value, 6,042,966 shares issued and 5,559,507 shares outstanding at June 30, 2018; 6,030,990 shares issued and 5,584,335 shares outstanding at December 31, 2017 | 5,984,747 | 5,963,850 |
Treasury Stock – 483,459 shares at June 30, 2018 and 446,655 shares at December 31, 2017 | (24,700,205) | (22,507,760) |
Additional Paid-In Capital | 23,228,788 | 22,735,228 |
Retained Earnings | 202,024,986 | 177,614,274 |
Accumulated Other Comprehensive Income | 681,426 | 372,616 |
Total Shareholders' Equity | 207,219,742 | 184,178,208 |
Total Liabilities and Shareholders’ Equity | $ 480,549,646 | $ 466,130,378 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Common Stock | ||
Common Stock, shares authorized | 25,000,000 | 25,000,000 |
Common Stock, par value (in dollars per share) | $ 1 | $ 1 |
Common Stock, shares issued | 6,042,966 | 6,030,990 |
Common Stock, shares outstanding | 5,559,507 | 5,584,335 |
Treasury Stock | ||
Treasury Stock, shares held | 483,459 | 446,655 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Revenues | $ 13,833,185 | $ 22,837,783 | $ 38,684,784 | $ 61,551,067 |
Direct Cost of Revenues | ||||
Total Direct Cost of Revenues | (4,435,384) | (8,854,499) | (9,227,072) | (20,962,176) |
General and Administrative Expenses | (2,429,181) | (2,727,187) | (5,252,729) | (5,947,334) |
Depreciation and Amortization | (3,854,938) | (3,215,690) | (7,755,317) | (5,978,265) |
Total Operating Expenses | (10,719,503) | (14,797,376) | (22,235,118) | (32,887,775) |
Gain on Disposition of Assets | 18,384,808 | 22,035,666 | ||
Land Lease Income | 2,226,526 | |||
Other Gains and Income | 18,384,808 | 22,035,666 | 2,226,526 | |
Total Operating Income | 21,498,490 | 8,040,407 | 38,485,332 | 30,889,818 |
Investment Income | 11,892 | 8,524 | 24,204 | 17,707 |
Interest Expense | (2,537,301) | (2,144,176) | (5,098,766) | (4,206,067) |
Income Before Income Tax Expense | 18,973,081 | 5,904,755 | 33,410,770 | 26,701,458 |
Income Tax Expense | (4,810,173) | (2,225,847) | (8,335,563) | (10,276,158) |
Net Income | $ 14,162,908 | $ 3,678,908 | $ 25,075,207 | $ 16,425,300 |
Per Share Information- See Note 10: | ||||
Basic Net Income per Share (in dollars per share) | $ 2.56 | $ 0.67 | $ 4.53 | $ 2.95 |
Diluted Net Income per Share (in dollars per share) | 2.56 | 0.66 | 4.51 | 2.94 |
Dividends Declared (in dollars per share) | 0.06 | 0.04 | 0.12 | 0.08 |
Dividends Paid (in dollars per share) | $ 0.06 | $ 0.04 | $ 0.12 | $ 0.08 |
Income Properties | ||||
Revenues | ||||
Revenues | $ 9,781,299 | $ 7,565,007 | $ 18,987,026 | $ 14,638,247 |
Direct Cost of Revenues | ||||
Total Direct Cost of Revenues | (2,034,889) | (1,629,515) | (3,903,918) | (3,041,228) |
Depreciation and Amortization | (3,746,762) | (3,108,494) | (7,534,177) | (5,794,806) |
Commercial Loan Investments | ||||
Revenues | ||||
Revenues | 273,467 | 553,159 | 574,466 | 1,089,648 |
Real Estate Operations | ||||
Revenues | ||||
Revenues | 2,484,314 | 13,257,355 | 16,463,644 | 42,731,815 |
Direct Cost of Revenues | ||||
Total Direct Cost of Revenues | (870,270) | (5,792,529) | (2,405,932) | (14,949,378) |
Golf Operations | ||||
Revenues | ||||
Revenues | 1,282,918 | 1,383,513 | 2,637,274 | 2,858,457 |
Direct Cost of Revenues | ||||
Total Direct Cost of Revenues | (1,525,053) | (1,401,919) | (2,906,878) | (2,900,597) |
Depreciation and Amortization | (99,393) | (95,323) | (202,949) | (160,690) |
Agriculture and Other Income | ||||
Revenues | ||||
Revenues | 11,187 | 78,749 | 22,374 | 232,900 |
Direct Cost of Revenues | ||||
Total Direct Cost of Revenues | (5,172) | (30,536) | (10,344) | (70,973) |
Depreciation and Amortization | $ (8,783) | $ (11,873) | $ (18,191) | $ (22,769) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net Income | $ 14,162,908 | $ 3,678,908 | $ 25,075,207 | $ 16,425,300 |
Other Comprehensive Income | ||||
Cash Flow Hedging Derivative - Interest Rate Swap (Net of Income Tax of $17,227 and $(35,818) for the three months ended June 30, 2018 and 2017, respectively, and Net of Income Tax of $77,593 and $(6,268) for the six months ended June 30, 2018 and 2017, respectively) | 50,744 | (57,036) | 308,810 | (9,980) |
Total Other Comprehensive Income, Net of Income Tax | 50,744 | (57,036) | 308,810 | (9,980) |
Total Comprehensive Income | $ 14,213,652 | $ 3,621,872 | $ 25,384,017 | $ 16,415,320 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Cash Flow Hedging Derivative - Interest Rate Swap, Income Tax | $ 17,227 | $ (35,818) | $ 77,593 | $ (6,268) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - 6 months ended Jun. 30, 2018 - USD ($) | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2017 | $ 5,963,850 | $ (22,507,760) | $ 22,735,228 | $ 177,614,274 | $ 372,616 | $ 184,178,208 |
Increase (decrease) in shareholders' equity | ||||||
Net Income | 25,075,207 | 25,075,207 | ||||
Stock Repurchase | (2,192,445) | (2,192,445) | ||||
Vested Restricted Stock | 19,065 | (517,439) | (498,374) | |||
Stock Issuance | 1,832 | 113,674 | 115,506 | |||
Stock Compensation Expense from Restricted Stock Grants and Equity Classified Stock Options | 897,325 | 897,325 | ||||
Cash Dividends ($0.12 per share) | (664,495) | (664,495) | ||||
Other Comprehensive Income, Net of Income Tax | 308,810 | 308,810 | ||||
Balance at Jun. 30, 2018 | $ 5,984,747 | $ (24,700,205) | $ 23,228,788 | $ 202,024,986 | $ 681,426 | $ 207,219,742 |
CONSOLIDATED STATEMENTS OF SHA8
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Common Stock | ||||
Cash Dividends (in dollars per share) | $ 0.06 | $ 0.04 | $ 0.12 | $ 0.08 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash Flow from Operating Activities: | ||||
Net Income | $ 25,075,207 | $ 16,425,300 | ||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||||
Depreciation and Amortization | $ 3,854,938 | $ 3,215,690 | 7,755,317 | 5,978,265 |
Amortization of Intangible Liabilities to Income Property Revenue | (600,000) | (550,000) | (1,179,345) | (1,081,262) |
Loan Cost Amortization | 137,000 | 112,000 | 286,639 | 224,987 |
Amortization of Discount on Convertible Debt | 316,000 | 296,000 | 626,562 | 587,828 |
Gain on Disposition of Property, Plant, and Equipment and Intangible Assets | (18,384,808) | (22,035,666) | ||
Impairment Charges | 0 | 0 | ||
Accretion of Commercial Loan Origination Fees | (29,684) | |||
Deferred Income Taxes | 8,618,862 | 11,042,346 | ||
Non-Cash Compensation | 897,325 | 743,164 | ||
Decrease (Increase) in Assets: | ||||
Refundable Income Taxes | 40,918 | (255,568) | ||
Land and Development Costs | (2,690,531) | 11,741,518 | ||
Impact Fees and Mitigation Credits | 400,033 | 807,000 | ||
Other Assets | (1,261,751) | 1,144,668 | ||
Increase (Decrease) in Liabilities: | ||||
Accounts Payable | (134,802) | (159,045) | ||
Accrued and Other Liabilities | (2,622,060) | (1,632,249) | ||
Deferred Revenue | 515,483 | (271,800) | ||
Net Cash Provided By Operating Activities | 14,262,507 | 45,295,152 | ||
Cash Flow from Investing Activities: | ||||
Acquisition of Property, Plant, and Equipment and Intangible Lease Assets and Liabilities | (28,908,410) | (46,621,871) | ||
Acquisition of Land | (2,141,853) | |||
Cash Contribution for Interest in Joint Venture | (2,050,001) | |||
Proceeds from Disposition of Property, Plant, and Equipment | 26,377,525 | |||
Principal Payments Received on Commercial Loan Investments | 8,960,467 | |||
Net Cash Provided By (Used In) Investing Activities | 2,237,728 | (46,621,871) | ||
Cash Flow from Financing Activities: | ||||
Proceeds from Long-Term Debt | 36,300,000 | 19,500,000 | ||
Payments on Long-Term Debt | (55,667,484) | (17,800,000) | ||
Cash Paid for Loan Fees | (228,473) | (48,095) | ||
Cash Proceeds from Exercise of Stock Options and Stock Issuance | 115,506 | 141,184 | ||
Cash Used to Purchase Common Stock | (2,192,445) | (5,512,960) | ||
Cash Paid for Vesting of Restricted Stock | (498,374) | (261,621) | ||
Dividends Paid | (664,495) | (446,070) | ||
Net Cash Used In Financing Activities | (22,835,765) | (4,427,562) | ||
Net Decrease in Cash | (6,335,530) | (5,754,281) | ||
Cash, Beginning of Year | 13,067,540 | 17,635,031 | ||
Cash, End of Period | 6,732,010 | 11,880,750 | 6,732,010 | 11,880,750 |
Reconciliation of Cash to the Consolidated Balance Sheets: | ||||
Cash and Cash Equivalents | 4,312,324 | 7,153,369 | 4,312,324 | 7,153,369 |
Restricted Cash | 2,419,686 | 4,727,381 | 2,419,686 | 4,727,381 |
Total Cash as of June 30, 2018 and 2017, respectively | $ 6,732,010 | $ 11,880,750 | $ 13,067,540 | $ 17,635,031 |
CONSOLIDATED STATEMENTS OF CA10
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 6 Months Ended | |
Jun. 30, 2018USD ($)$ / item | Jun. 30, 2017USD ($) | |
Supplemental Disclosure of Cash Flows: | ||
Income taxes refunded | $ 18,000 | $ 531,000 |
Interest paid | 4,190,000 | 3,438,000 |
Interest capitalized | 0 | 0 |
Accrued and Other Liabilities | (2,622,060) | (1,632,249) |
Land and Development Costs | $ (2,690,531) | 11,741,518 |
Supplemental disclosure of investing and financing activities | ||
Annual surcharge, per round of golf played | $ / item | 1 | |
Minimum annual per round surcharge | $ 70,000 | |
Maximum aggregate amount of per round surcharge | 700,000 | |
Contingent consideration on Golf Course Land Purchase reflected as an increase in increase in Golf Buildings, Improvements, and Equipment and also as an increase in Accrued and Other Liabilities | 700,000 | |
Aspen, Colorado | ||
Supplemental disclosure of investing and financing activities | ||
Tenant contribution | 1,500,000 | |
Florida | ||
Supplemental disclosure of investing and financing activities | ||
Tenant contribution | 1,900,000 | |
Surface land over subsurface interests | ||
Supplemental Disclosure of Cash Flows: | ||
Gain on Sale | 435,000 | |
Real Estate Operations | ||
Supplemental disclosure of investing and financing activities | ||
Purchase price | 40,000,000 | |
Single-tenant | Aspen, Colorado | ||
Supplemental disclosure of investing and financing activities | ||
Purchase price | 28,000,000 | |
Land Sales | ||
Supplemental Disclosure of Cash Flows: | ||
Gain on Sale | 13,004,000 | $ 26,910,000 |
Land Sales | Mitigation Bank West of Interstate Ninety Five | ||
Supplemental Disclosure of Cash Flows: | ||
Gain on Sale | 18,400,000 | |
Gain on Sale, noncash | 5,100,000 | |
Investment in Joint Venture | 6,700,000 | |
Accrued and Other Liabilities | 300,000 | |
Land and Development Costs | $ 1,300,000 |
DESCRIPTION OF BUSINESS AND PRI
DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS | 6 Months Ended |
Jun. 30, 2018 | |
DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS | |
DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS | NOTE 1. DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS Description of Business The terms “us,” “we,” “our,” and “the Company” as used in this report refer to Consolidated-Tomoka Land Co. together with our consolidated subsidiaries. We are a diversified real estate operating company. We own and manage thirty-six commercial real estate properties in thirteen states in the United States. As of June 30, 2018, we owned twenty-nine single-tenant and seven multi-tenant income-producing properties with approximately 2.1 million square feet of gross leasable space. We also own and manage a portfolio of undeveloped land totaling approximately 5,500 acres in Daytona Beach, Florida. As of June 30, 2018, we have one commercial loan investment, a fixed-rate first mortgage loan. We have golf operations which consist of the LPGA International Golf Club, also located in Daytona Beach, which is managed by a third party. We also lease some of our land for eighteen billboards, have agricultural operations that are managed by a third party, which consist of leasing land for hay production, timber harvesting, and hunting leases, and own and manage Subsurface Interests (hereinafter defined). The results of our agricultural and subsurface leasing operations are included in Agriculture and Other Income and Real Estate Operations, respectively, in our consolidated statements of operations. Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited consolidated financial statements do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, which provides a more complete understanding of the Company’s accounting policies, financial position, operating results, business properties, and other matters. The unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the financial position of the Company and the results of operations for the interim periods. The results of operations for the six months ended June 30, 2018 are not necessarily indicative of results to be expected for the year ending December 31, 2018. Principles of Consolidation The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and other entities in which we have a controlling interest. Any real estate entities or properties included in the consolidated financial statements have been consolidated only for the periods that such entities or properties were owned or under control by us. All inter-company balances and transactions have been eliminated in the consolidated financial statements. Use of Estimates in Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which amends its guidance on the recognition and reporting of revenue from contracts with customers. In April 2016, the FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers was issued. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company completed its evaluation of the provisions during the year ended December 31, 2017 and determined there was no impact on the Company’s revenue recognition within the consolidated financial statements. All required disclosures relating to FASB ASC Topic 606 have been implemented herein as required by the standard. The Company adopted FASB ASC Topic 606 effective January 1, 2018 utilizing the modified retrospective method. In January 2016, the FASB issued ASU 2016-01, relating to the recognition and measurement of financial assets and financial liabilities. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2016-01 effective January 1, 2018 and determined there was no material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, which requires entities to recognize assets and liabilities that arise from financing and operating leases and to classify those finance and operating lease payments in the financing or operating sections, respectively, of the statement of cash flows pursuant to FASB ASC Topic 842, Leases . The amendments in this update are effective for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating FASB ASC Topic 842, Leases to determine the potential impact, if any, the adoption will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, which clarifies the appropriate classification of certain cash receipts and payments in the statement of cash flows. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2016-15 effective January 1, 2018 and determined there was no material impact on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, which addresses diversity in the classification and presentation of changes in restricted cash in the statement of cash flows as operating, investing, or financing activities. The Company adopted ASU 2016-18 effective January 1, 2018 and has classified the changes in restricted cash between operating, investing, and financing in the consolidated statements of cash flows as applicable per the new guidance. In February 2018, the FASB issued ASU 2018-02, which amends the guidance allowing for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this update are effective for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the provisions to determine the potential impact, if any, the adoption will have on its consolidated financial statements. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, bank demand accounts, and money market accounts having original maturities of 90 days or less. The Company’s bank balances as of June 30, 2018 include certain amounts over the Federal Deposit Insurance Corporation limits. Restricted Cash Restricted cash totaled approximately $2.4 million at June 30, 2018 of which approximately $1.2 million is being held in three separate escrow accounts related to three separate land transactions which closed in December 2013, February 2017, and March 2018; approximately $127,000 is being held in a reserve for interest and property taxes for the $3.0 million first mortgage loan investment originated in July 2017; approximately $185,000 is being held in a capital replacement reserve account in connection with our financing of six income properties with Wells Fargo Bank, NA (“Wells Fargo”); and approximately $918,000 is being held in a leasing reserve in connection with our acquisition of the property in Aspen, Colorado in February 2018. Derivative Financial Instruments and Hedging Activity Interest Rate Swap. In conjunction with the variable-rate mortgage loan secured by our property located in Raleigh, North Carolina leased to Wells Fargo, the Company entered into an interest rate swap to fix the interest rate (the “Interest Rate Swap”). The Company accounts for its cash flow hedging derivative in accordance with FASB ASC Topic 815-20, Derivatives and Hedging . Depending upon the hedge’s value at each balance sheet date, the derivative is included in either Other Assets or Accrued and Other Liabilities on the consolidated balance sheet at its fair value. On the date the Interest Rate Swap was entered into, the Company designated the derivative as a hedge of the variability of cash flows to be paid related to the recognized long-term debt liability. The Company formally documented the relationship between the hedging instrument and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. At the hedge’s inception, the Company formally assessed whether the derivative that is used in hedging the transaction is highly effective in offsetting changes in cash flows of the hedged item, and we will continue to do so on an ongoing basis. As the terms of the Interest Rate Swap and the associated debt are identical, the Interest Rate Swap qualifies for the shortcut method, therefore, it is assumed that there is no hedge ineffectiveness throughout the entire term of the Interest Rate Swap. Changes in fair value of the Interest Rate Swap that are highly effective and designated and qualified as a cash-flow hedge are recorded in other comprehensive income and loss, until earnings are affected by the variability in cash flows of the designated hedged item. Fair Value of Financial Instruments The carrying amounts of the Company’s financial assets and liabilities including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued and other liabilities at June 30, 2018 and December 31, 2017, approximate fair value because of the short maturity of these instruments. The carrying amount of the Company’s investments in variable rate commercial loans approximates fair value at December 31, 2017, since the floating rates of the loans reasonably approximate current market rates for notes with similar risks and maturities. There were no investments in variable rate commercial loans as of June 30, 2018. The carrying value of the Company’s credit facility approximates current market rates for revolving credit arrangements with similar risks and maturities. The face value of the Company’s fixed rate commercial loan investment, mortgage notes, and convertible debt is measured at fair value based on current market rates for financial instruments with similar risks and maturities. See Note 7, “Fair Value of Financial Instruments.” Fair Value Measurements The Company’s estimates of fair value of financial and non-financial assets and liabilities is based on the framework established by GAAP. The framework specifies a hierarchy of valuation inputs which was established to increase consistency, clarity and comparability in fair value measurements and related disclosures. GAAP describes a fair value hierarchy based upon three levels of inputs that may be used to measure fair value, two of which are considered observable and one that is considered unobservable. The following describes the three levels: · Level 1 – Valuation is based upon quoted prices in active markets for identical assets or liabilities. · Level 2 – Valuation is based upon inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include option pricing models, discounted cash flow models and similar techniques. Classification of Commercial Loan Investments Loans held for investment are stated at the principal amount outstanding and include the unamortized deferred loan fees offset by any applicable unaccreted purchase discounts and origination fees, if applicable. Loans held for sale are classified separately and stated at the lower of cost or fair value once a decision has been made to sell loans not previously for sale. Commercial Loan Investment Impairment For each of the Company’s commercial loans held for investment, the Company evaluates the performance of the collateral property and the financial and operating capabilities of the borrower/guarantor, in part to assess whether any deterioration in the credit has occurred, and for possible impairment of the loan. Impairment would reflect the Company’s determination that it is probable that all amounts due according to the contractual terms of the loan would not be collected. Impairment is measured based on the present value of the expected future cash flows from the loan discounted at the effective rate of the loan or the fair value of the collateral. Upon measurement of impairment, the Company would record an allowance to reduce the carrying value of the loan with a corresponding recognition of loss in the results of operations. Significant exercise of judgment is required in determining impairment, including assumptions regarding the estimate of expected future cash flows, collectability of the loan, the value of the underlying collateral and other provisions including guarantees. The Company has determined that, as of June 30, 2018 and December 31, 2017, no allowance for impairment was required. Recognition of Interest Income from Commercial Loan Investments Interest income on commercial loan investments includes interest payments made by the borrower and the accretion of purchase discounts and loan origination fees, offset by the amortization of loan costs. Interest payments are accrued based on the actual coupon rate and the outstanding principal balance, and purchase discounts and loan origination fees are accreted into income using the effective yield method, adjusted for prepayments. Impact Fees and Mitigation Credits Impact fees and mitigation credits are stated at historical cost. As these assets are sold, the related revenues and cost basis are reported as revenues from, and direct costs of, real estate operations, respectively, in the consolidated statements of operations. Accounts Receivable Accounts receivable related to income properties, which are classified in other assets on the consolidated balance sheets, primarily consist of tenant reimbursable expenses. Receivables related to tenant reimbursable expenses totaled approximately $1.3 million and $895,000 as of June 30, 2018 and December 31, 2017, respectively. Accounts receivable related to real estate operations, which are classified in other assets on the consolidated balance sheets, totaled approximately $2.1 million and $2.2 million as of as of June 30, 2018 and December 31, 2017, respectively. As more fully described in Note 10, “Other Assets,” these accounts receivable are primarily related to the reimbursement of certain infrastructure costs completed by the Company in conjunction with two land sale transactions that closed during the fourth quarter of 2015. Trade accounts receivable primarily consist of receivables related to the golf operations, which are classified in other assets on the consolidated balance sheets. Trade accounts receivable related to golf operations, which primarily consist of amounts due from members or from private events, totaled approximately $287,000 and $349,000 as of June 30, 2018 and December 31, 2017, respectively. The collectability of the aforementioned receivables is determined based on the aging of the receivable and a review of the specifically identified accounts using judgments. As of June 30, 2018 and December 31, 2017, no allowance for doubtful accounts was required. Purchase Accounting for Acquisitions of Real Estate Subject to a Lease In accordance with the FASB guidance on business combinations, the fair value of the real estate acquired with in-place leases is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their relative fair values. The fair value of the tangible assets of an acquired leased property is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, building and tenant improvements based on the determination of the fair values of these assets. In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as other assets or liabilities based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease, including the probability of renewal periods. The capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. The capitalized below-market lease values are amortized as an increase to rental income over the initial term unless the Company believes that it is likely that the tenant will renew the option whereby the Company amortizes the value attributable to the renewal over the renewal period. The aggregate value of other acquired intangible assets, consisting of in-place leases, is measured by the excess of (i) the purchase price paid for a property after adjusting existing in-place leases to market rental rates over (ii) the estimated fair value of the property as-if-vacant, determined as set forth above. The value of in-place leases exclusive of the value of above-market and below-market in-place leases is amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off. The value of tenant relationships is reviewed on individual transactions to determine if future value was derived from the acquisition. In January 2017, the FASB issued ASU 2017-01, Business Combinations which clarified the definition of a business. Pursuant to ASU 2017-01, the acquisition of an income property subject to a lease no longer qualifies as a business combination, but rather an asset acquisition, accordingly acquisition costs have been capitalized. Sales of Real Estate Gains and losses on sales of real estate are accounted for as required by FASB ASC Topic 606, Revenue from Contracts with Customers . The Company recognizes revenue from the sales of real estate when the Company transfers the promised goods and/or services in the contract based on the transaction price allocated to the performance obligations within the contract. As market information becomes available, real estate cost basis is analyzed and recorded at the lower of cost or market. Income Taxes The Company uses the asset and liability method to account for income taxes. Deferred income taxes result primarily from the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. See Note 18, “Income Taxes.” In June 2006, the FASB issued additional guidance, which clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements included in income taxes. The interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The interpretation also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. In accordance with FASB guidance included in income taxes, the Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. Additionally, the Company believes that its accruals for tax liabilities are adequate. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to the FASB guidance. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2018 | |
REVENUE RECOGNITION | |
REVENUE RECOGNITION | NOTE 2. REVENUE RECOGNITION The Company implemented FASB ASC Topic 606, Revenue from Contracts with Customers effective January 1, 2018 utilizing the modified retrospective method. The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the three months ended June 30, 2018: Interest Income Income from Commercial Real Estate Golf Agriculture and Total Properties Loan Investments Operations Operations Other Income Revenues ($000's) ($000's) ($000's) ($000's) ($000's) ($000's) Major Good / Service: Lease Revenue - Base Rent $ 7,365 $ — $ — $ — $ 11 $ 7,376 Lease Revenue - CAM 891 — — — — 891 Lease Revenue - Reimbursements 801 — — — — 801 Lease Revenue - Billboards 70 — — — — 70 Above / Below Market Lease Accretion 600 — — — — 600 Contributed Leased Assets Accretion 85 — — — — 85 Lease Incentive Amortization (76) — — — — (76) Interest from Commercial Loan Investments — 274 — — — 274 Land Sale Revenue — — 1,734 — — 1,734 Impact Fee and Mitigation Credit Sales — — 470 — — 470 Subsurface Lease Revenue — — 201 — — 201 Subsurface Revenue - Other — — 79 — — 79 Golf Operations — — — 1,283 — 1,283 Interest and Other Revenue 45 — — — — 45 Total Revenues $ 9,781 $ 274 $ 2,484 $ 1,283 $ 11 $ 13,833 Timing of Revenue Recognition: Asset/Good Transferred at a Point in Time $ — $ — $ 2,283 $ 1,041 $ — $ 3,324 Services Transferred Over Time 45 — — 242 — 287 Over Lease Term 9,736 — 201 — 11 9,948 Commercial Loan Investment Related Revenue — 274 — — — 274 Total Revenues $ 9,781 $ 274 $ 2,484 $ 1,283 $ 11 $ 13,833 The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the three months ended June 30, 2017: Interest Income Income from Commercial Real Estate Golf Agriculture and Total Properties Loan Investments Operations Operations Other Income Revenues ($000's) ($000's) ($000's) ($000's) ($000's) ($000's) Major Good / Service: Lease Revenue - Base Rent $ 6,114 $ — $ — $ — $ 11 $ 6,125 Lease Revenue - CAM 466 — — — — 466 Lease Revenue - Reimbursements 371 — — — — 371 Lease Revenue - Billboards 65 — — — — 65 Above / Below Market Lease Accretion 550 — — — — 550 Interest from Commercial Loan Investments — 553 — — — 553 Land Sale Revenue — — 10,858 — — 10,858 Revenue from Reimbursement of Infrastructure Costs — — 955 — — 955 Impact Fee and Mitigation Credit Sales — — 1,222 — — 1,222 Subsurface Lease Revenue — — 201 — — 201 Subsurface Revenue - Other — — 21 — — 21 Golf Operations — — — 1,384 — 1,384 Timber Sales Revenue — — — — 68 68 Interest and Other Revenue (1) — — — — (1) Total Revenues $ 7,565 $ 553 $ 13,257 $ 1,384 $ 79 $ 22,838 Timing of Revenue Recognition: Asset/Good Transferred at a Point in Time $ — $ — $ 12,101 $ 1,316 $ 68 $ 13,485 Services Transferred Over Time (1) — 955 68 — 1,022 Over Lease Term 7,566 — 201 — 11 7,778 Commercial Loan Investment Related Revenue — 553 — — — 553 Total Revenues $ 7,565 $ 553 $ 13,257 $ 1,384 $ 79 $ 22,838 The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the six months ended June 30, 2018: Interest Income Income from Commercial Real Estate Golf Agriculture and Total Properties Loan Investments Operations Operations Other Income Revenues ($000's) ($000's) ($000's) ($000's) ($000's) ($000's) Major Good / Service: Lease Revenue - Base Rent $ 14,787 $ — $ — $ — $ 22 $ 14,809 Lease Revenue - CAM 1,505 — — — — 1,505 Lease Revenue - Reimbursements 1,365 — — — — 1,365 Lease Revenue - Billboards 134 — — — — 134 Above / Below Market Lease Accretion 1,179 — — — — 1,179 Contributed Leased Assets Accretion 95 — — — — 95 Lease Incentive Amortization (151) — — — — (151) Interest from Commercial Loan Investments — 575 — — — 575 Land Sale Revenue — — 14,851 — — 14,851 Impact Fee and Mitigation Credit Sales — — 586 — — 586 Subsurface Lease Revenue — — 400 — — 400 Subsurface Revenue - Other — — 626 — — 626 Golf Operations — — — 2,638 — 2,638 Interest and Other Revenue 73 — — — — 73 Total Revenues $ 18,987 $ 575 $ 16,463 $ 2,638 $ 22 $ 38,685 Timing of Revenue Recognition: Asset/Good Transferred at a Point in Time $ — $ — $ 16,063 $ 2,136 $ — $ 18,199 Services Transferred Over Time 73 — — 502 — 575 Over Lease Term 18,914 — 400 — 22 19,336 Commercial Loan Investment Related Revenue — 575 — — — 575 Total Revenues $ 18,987 $ 575 $ 16,463 $ 2,638 $ 22 $ 38,685 The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the six months ended June 30, 2017: Interest Income Income from Commercial Real Estate Golf Agriculture and Total Properties Loan Investments Operations Operations Other Income Revenues ($000's) ($000's) ($000's) ($000's) ($000's) ($000's) Major Good / Service: Lease Revenue - Base Rent $ 11,668 $ — $ — $ — $ 22 $ 11,690 Lease Revenue - CAM 965 — — — — 965 Lease Revenue - Reimbursements 791 — — — — 791 Lease Revenue - Billboards 126 — — — — 126 Above / Below Market Lease Accretion 1,081 — — — — 1,081 Interest from Commercial Loan Investments — 1,090 — — — 1,090 Land Sale Revenue — — 39,564 — — 39,564 Revenue from Reimbursement of Infrastructure Costs — — 1,276 — — 1,276 Impact Fee and Mitigation Credit Sales — — 1,439 — — 1,439 Subsurface Lease Revenue — — 400 — — 400 Subsurface Revenue - Other — — 53 — — 53 Golf Operations — — — 2,858 — 2,858 Timber Sales Revenue — — — — 211 211 Interest and Other Revenue 7 — — — — 7 Total Revenues $ 14,638 $ 1,090 $ 42,732 $ 2,858 $ 233 $ 61,551 Timing of Revenue Recognition: Asset/Good Transferred at a Point in Time $ — $ — $ 41,056 $ 2,647 $ 211 $ 43,914 Services Transferred Over Time 7 — 1,276 211 — 1,494 Over Lease Term 14,631 — 400 — 22 15,053 Commercial Loan Investment Related Revenue — 1,090 — — — 1,090 Total Revenues $ 14,638 $ 1,090 $ 42,732 $ 2,858 $ 233 $ 61,551 |
INCOME PROPERTIES
INCOME PROPERTIES | 6 Months Ended |
Jun. 30, 2018 | |
INCOME PROPERTIES | |
INCOME PROPERTIES | NOTE 3. INCOME PROPERTIES During the six months ended June 30, 2018, the Company acquired one single-tenant income property for a purchase price of $28.0 million, or an acquisition cost of approximately $29.0 million including capitalized acquisition costs. Of the total acquisition cost, approximately $12.0 million was allocated to land, approximately $15.0 million was allocated to buildings and improvements, approximately $2.8 million was allocated to intangible assets pertaining to the in-place lease value, leasing fees and above market lease value, and approximately $0.8 million was allocated to intangible liabilities for the below market lease value. The weighted average amortization period for the intangible assets and liabilities was approximately 20.0 years at acquisition. The property acquired during the six months ended June 30, 2018 is described below: Tenant Description Tenant Type Property Location Date of Acquisition Property Square-Feet Property Acres Purchase Price Percentage Leased Remaining Lease Term (in years) Master Tenant for Commercial Building Single-Tenant Aspen, Colorado 02/21/18 19,596 0.18 $ 28,000,000 20.0 In conjunction with the closing of the property in Aspen, Colorado, the master tenant contributed approximately $1.5 million of the purchase price, resulting in a net cash investment by the Company of approximately $26.5 million. The $1.5 million purchase price contribution is reflected as deferred revenue and will be accreted into income property rental revenue over the term of the lease. As more fully described in Note 5, “Land and Subsurface Interests,” in January 2018, construction was completed and the leases commenced on two restaurant properties on the Company’s six-acre beachfront parcel. The tenants, LandShark Bar & Grill and Cocina 214 Restaurant & Bar, both commenced operations in January 2018. Four income properties were disposed of during the six months ended June 30, 2018. On March 26, 2018, the Company sold its four self-developed, multi-tenant office properties located in Daytona Beach, Florida for approximately $11.4 million (the “Self-Developed Properties Sale”). The sale included the 22,012 square-foot Concierge office building, the 30,720 square-foot Mason Commerce Center comprising two office buildings, and the 15,360 Williamson Business Park office building. The gain on the sale totaled approximately $3.7 million, or approximately $0.49 per share, after tax. The Company utilized the proceeds to fund a portion of the previously acquired income property located near Portland, Oregon leased to Wells Fargo, through a reverse 1031 like-kind exchange structure. As part of the transaction, the Company entered into a lease of its approximately 7,600 square foot office space in Williamson Business Park for approximately 5 years at a market rental rate. During the six months ended June 30, 2017, the Company acquired three single-tenant income properties and two multi-tenant income properties, for an aggregate purchase price of approximately $40.0 million, or an aggregate acquisition cost of approximately $40.7 million including capitalized acquisition costs. Of the total acquisition cost, approximately $18.0 million was allocated to land, approximately $19.3 million was allocated to buildings and improvements, approximately $4.9 million was allocated to intangible assets pertaining to the in-place lease value, leasing fees and above market lease value, and approximately $1.5 million was allocated to intangible liabilities for the below market lease value. The weighted average amortization period for the intangible assets and liabilities is approximately 9.8 years. No income properties were disposed of during the six months ended June 30, 2017. |
COMMERCIAL LOAN INVESTMENTS
COMMERCIAL LOAN INVESTMENTS | 6 Months Ended |
Jun. 30, 2018 | |
COMMERCIAL LOAN INVESTMENTS | |
COMMERCIAL LOAN INVESTMENTS | NOTE 4. COMMERCIAL LOAN INVESTMENTS Our investments in commercial loans or similar structured finance investments, such as mezzanine loans or other subordinated debt, have been and are expected to continue to be secured by commercial or residential real estate or the borrower’s pledge of its ownership interest in the entity that owns the real estate. The first mortgage loans we invest in or originate are for commercial real estate located in the United States and its territories, and are current or performing with either a fixed or floating rate. Some of these loans may be syndicated in either a pari-passu or senior/subordinated structure. Commercial first mortgage loans generally provide for a higher recovery rate due to their senior position in the underlying collateral. Commercial mezzanine loans are typically secured by a pledge of the borrower’s equity ownership in the underlying commercial real estate. Unlike a mortgage, a mezzanine loan is not secured by a lien on the property. An investor’s rights in a mezzanine loan are usually governed by an intercreditor agreement that provides holders with the rights to cure defaults and exercise control on certain decisions of any senior debt secured by the same commercial property. On June 13, 2018, the variable rate B-Note (the “B-Note”) held by the Company and secured by real estate located in Sarasota, Florida matured and was repaid by the borrower. The Company purchased the B-Note in May 2014. The proceeds of approximately $9.0 million were used to pay down the Company’s Credit Facility. As of June 30, 2018, the Company owned one performing commercial loan investment with an outstanding principal balance of approximately $3.0 million. The loan is secured by real estate located in Daytona Beach Shores, Florida. The Company’s commercial loan investment was comprised of the following at June 30, 2018: Date of Maturity Original Face Current Face Carrying Description Investment Date Amount Amount Value Coupon Rate First Mortgage – Land Parcel, Daytona Beach Shores, FL July 2017 August 2018 3,000,000 3,000,000 2,994,916 11.00% The carrying value of the commercial loan investment portfolio at June 30, 2018 consisted of the following: Total Current Face Amount $ 3,000,000 Unamortized Fees — Unaccreted Origination Fees (5,084) Total Commercial Loan Investments $ 2,994,916 The Company’s commercial loan investment portfolio was comprised of the following at December 31, 2017: Date of Maturity Original Face Current Face Carrying Description Investment Date Amount Amount Value Coupon Rate B-Note – Retail Shopping Center, Sarasota, FL May 2014 June 2018 $ 8,960,467 $ 8,960,467 $ 8,960,467 30 ‑day LIBOR First Mortgage – Land Parcel, Daytona Beach Shores, FL July 2017 August 2018 3,000,000 3,000,000 2,965,232 11.00% Total $ 11,960,467 $ 11,960,467 $ 11,925,699 The carrying value of the commercial loan investment portfolio at December 31, 2017 consisted of the following: Total Current Face Amount $ 11,960,467 Unamortized Fees — Unaccreted Origination Fees (34,768) Total Commercial Loan Investments $ 11,925,699 |
LAND AND SUBSURFACE INTERESTS
LAND AND SUBSURFACE INTERESTS | 6 Months Ended |
Jun. 30, 2018 | |
LAND AND SUBSURFACE INTERESTS | |
LAND AND SUBSURFACE INTERESTS | NOTE 5. LAND AND SUBSURFACE INTERESTS As of June 30, 2018, the Company owned approximately 5,500 acres of undeveloped land in Daytona Beach, Florida, along six miles of the west and east sides of Interstate 95. Currently, the majority of this land is used for agricultural purposes. As of August 1, 2018, approximately 78% of this acreage, or nearly 4,300 acres, is under contract to be sold. Approximately 1,000 acres of our land holdings are located on the east side of Interstate 95 and are generally well suited for commercial development. Approximately 4,500 acres of our land holdings are located on the west side of Interstate 95 and the majority of this land is generally well suited for residential development. Included in the western land is approximately 1,000 acres, primarily an 850-acre parcel and three smaller parcels, which are located further west of Interstate 95 and a few miles north of Interstate 4 that are generally well suited for industrial purposes. Real estate operations revenue consisted of the following for the three and six months ended June 30, 2018 and 2017, respectively: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Revenue Description ($000's) ($000's) ($000's) ($000's) Land Sales Revenue $ 1,734 $ 10,858 $ 14,851 $ 39,564 Revenue from Reimbursement of Infrastructure Costs — 955 — 1,276 Impact Fee and Mitigation Credit Sales 470 1,222 586 1,439 Subsurface Revenue 280 222 1,026 453 Total Real Estate Operations Revenue $ 2,484 $ 13,257 $ 16,463 $ 42,732 2018 Land Sales. During the six months ended June 30, 2018, the Company completed land transactions representing approximately 2,559 acres of land including: (i) the sale of a 70% interest in the Mitigation Bank (hereinafter defined) that holds approximately 2,492 acres of land for proceeds of $15.3 million and (ii) four land sales totaling approximately 67 acres for aggregate proceeds of approximately $15.7 million, as described below: Gross Sales Gain Date of No. of Price Price on Sale (1) Buyer (or Description) Location Sale Acres ($000's) per Acre ($000's) 1 Buc-ee's East of I-95 03/16/18 34.9 $ 13,948 $ $ 11,926 Subtotal - Q1 2018 34.9 13,948 11,926 2 Residential West of I-95 06/12/18 19.0 265 226 3 Commercial / Retail East of I-95 06/25/18 5.7 625 224 4 Commercial / Retail East of I-95 06/28/18 7.7 819 628 Subtotal - Q2 2018 32.4 1,709 1,078 YTD Q2 2018 67.3 $ 15,657 $ $ 13,004 (1) The gain recognized during the six months ended June 30, 2018 on the Buc-ee’s sale totaling approximately $11.9 million excludes approximately $831,000 held in an escrow reserve related to the portion of the acreage sold for which the Company remains obligated to perform wetlands mitigation. The Company expects to recognize the remaining gain of approximately $831,000 upon completion of the mitigation work. See Note 16, “Deferred Revenue”. Mitigation Bank. The mitigation bank transaction consists of the sale of a 70% interest in the entity that holds approximately 2,492 acres of land that has been permitted for the creation of a wetland mitigation bank (the “Venture” or the “Mitigation Bank”). The purchaser of the 70% interest in the Mitigation Bank is comprised of certain funds and accounts managed by an investment advisor subsidiary of BlackRock, Inc. (“BlackRock”). The Company retained an approximately 30% non-controlling interest. A third-party was retained by the Venture as the day-to-day manager of the Mitigation Bank property; responsible for the maintenance, generation, tracking, and other aspects of wetland mitigation credits. The Mitigation Bank intends to engage in the creation and sale of both federal and state wetland mitigation credits. These credits will be created pursuant to the applicable permits that have been or will be issued to the Venture from the federal and state regulatory agencies that exercise jurisdiction over the awarding of such credits, but no assurances can be given as to the issuance, marketability or value of the credits. The Venture received the permit from the state regulatory agency on June 8, 2018 with the potential for 355 state credits to be awarded. Receipt of the remaining federal permit and the award of the initial state credits is anticipated to occur prior to the end of the year. The gain on the sale of the 70% interest in the Mitigation Bank totaled approximately $18.4 million and is comprised of the gain on the sale of 70% interest for proceeds of $15.3 million as well as the gain on the retained 30% interest pursuant to FASB ASC Topic 610-20, Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets. The gain is included in the Gain on Disposition of Assets in the Company’s consolidated statements of operations. As of June 30, 2018, the approximately $6.7 million Investment in Joint Venture included on the Company’s consolidated balance sheets is comprised of the fair market value of the 30% retained interest in the Venture. The operating agreement of the Venture (the “Operating Agreement”) executed in conjunction with the mitigation bank transaction, stipulates that the Company shall arrange for sales to unrelated third parties of mitigation credits of the Mitigation Bank totaling no less than $6 million of revenue to the Mitigation Bank, net of commissions, by the end of 2020, utilizing a maximum of 60 mitigation credits to achieve the minimum sales requirement (the “Minimum Sales Requirement”). The Operating Agreement stipulates that if the Minimum Sales Requirement is not achieved, then BlackRock has the right, but is not required, to have the Company purchase the number of combined mitigation credits necessary to reach the Minimum Sales Requirement (the “Minimum Sales Guarantee”). The Company estimates the fair value of the Minimum Sales Guarantee to be approximately $100,000 which was recorded as a reduction in the gain on the transaction and is included in Accrued and Other Liabilities in the Company’s consolidated balance sheet as of June 30, 2018. Additionally, the Operating Agreement provides BlackRock the right to cause the Company to purchase a maximum of 8.536 mitigation credits per quarter from the Mitigation Bank Venture at a price equal to 60% of the then fair market value for mitigation credits (the “Put Right”). The Put Right is applicable even if the Mitigation Bank has not yet had sufficient mitigation credits released to the Mitigation Bank by the applicable federal and state regulatory agencies. Further, in any quarter that BlackRock does not exercise its Put Right, the permitted amount of mitigation credits for the applicable quarter can be rolled forward to future calendar quarters. However, the Operating Agreement also stipulates that any amount of third-party sales of mitigation credits will reduce the Put Rights outstanding on a one-for-one basis, if the sales price of the third-party sales equals or exceeds the prices stipulated by the Put Right. Further, any sales of mitigation credits to third parties at the requisite minimum prices in a quarter that exceeds the quarterly amount of BlackRock’s Put Right, will reduce BlackRock’s Put Rights in future calendar quarters also on a one-for-one basis. The maximum potential of future payments for the Company pursuant to the Put Right is approximately $27 million. The Company estimates the fair value of the Put Right to be approximately $200,000, which was recorded as a reduction in the gain on the transaction and is included in Accrued and Other Liabilities in the Company’s consolidated balance sheet as of June 30, 2018. 2017 Land Sales. During the six months ended June 30, 2017, a total of approximately 1,669 acres were sold for approximately $40.5 million as described below: Gross Sales Gain Date of No. of Price Price on Sale (1) Buyer (or Description) Location Sale Acres ($000's) per Acre ($000's) 1 Minto Communities, LLC West of I-95 02/10/17 1,581.0 $ 27,151 $ $ 20,041 2 Commercial East of I-95 03/22/17 6.4 1,556 11 Subtotal - Q1 2017 1,587.4 28,707 20,052 3 Commercial East of I-95 04/05/17 27.5 3,218 2,955 4 Commercial East of I-95 04/13/17 4.5 1,235 13 5 Commercial West of I-95 04/25/17 30.0 2,938 627 6 Third NADG Land Sale East of I-95 06/27/17 19.4 4,422 3,263 Subtotal - Q2 2017 81.4 11,813 6,858 YTD Q2 2017 1,668.8 $ 40,520 $ $ 26,910 (1) The gain of approximately $3.3 million on the Third NADG Land Sale includes an infrastructure reimbursement payment of approximately $955,000 received in conjunction with the closing on June 27, 2017. Pipeline. For a description of our land which is currently under contract, see the land pipeline in Note 19, “Commitment and Contingencies.” Land Impairments. There were no impairment charges related to the Company’s undeveloped land during the six months ended June 30, 2018 or 2017. Beachfront Development. During the first quarter of 2018, the Company completed the construction of two single-tenant restaurants located on the Company’s six-acre beachfront property with a cost basis of approximately $11.7 million, which was included in Land and Development Costs on the Company’s consolidated balance sheet as of December 31, 2017. The total cost of construction was approximately $6.8 million. Upon completion of the construction and commencement of the tenant leases (described herein), the total basis of approximately $18.5 million was transferred to Income Properties, Land, Buildings, and Improvements from Land and Development Costs and Construction in Process on the Company’s consolidated balance sheets. The Company’s 15-year lease agreement with the operator of LandShark Bar & Grill, for the approximately 6,264 square foot restaurant property, includes annual rent based on a percentage of the tenant’s net operating income (“NOI”) until the Company has received its investment basis in the property; thereafter, the Company will receive a lower percentage of the tenant’s NOI during the remaining lease term. The Company’s 15-year lease agreement with the operator of Cocina 214 Restaurant & Bar, for the second restaurant property includes annual rent equal to the greater of $360,000 per year or a certain percentage of gross sales, and also provides for additional percentage rent upon the achievement of certain gross sales thresholds. Daytona Beach Development. We may selectively acquire other real estate in the downtown and beachside areas of Daytona Beach, Florida. We may target either vacant land or land with existing structures that we would demolish and develop into additional income properties. During the first quarter of 2018, the Company acquired a 3-acre parcel of land with existing structures in downtown Daytona Beach, Florida for a purchase price of approximately $2.0 million. As of June 30, 2018, the Company has also acquired other contiguous parcels for a total of approximately 0.9-acres for approximately $1.5 million. We intend to pursue the potential redevelopment of these parcels, which are located nearly adjacent to the location of the future new headquarters of Brown & Brown, Inc. (NYSE: BRO) along with certain other adjacent land parcels, some of which we have under contract for purchase. We intend for our investments in the Daytona Beach area to target opportunistic acquisitions of select catalyst sites, which are typically distressed, with an objective of having short investment horizons. We may seek to partner with developers to develop the sites acquired during the six months ended June 30, 2018, and any other sites we acquire, rather than self-develop the properties. Other Real Estate Assets. The Company owns impact fees with a cost basis of approximately $199,000 and mitigation credits with a cost basis of approximately $526,000 for a combined total of approximately $725,000 as of June 30, 2018. During the six months ended June 30, 2018, the Company transferred mitigation credits with a basis of approximately $124,000 to the land acquired by Buc-ee’s. During the six months ended June 30, 2018, the Company sold mitigation credits for approximately $455,000, for a gain of approximately $403,000, or $0.05 per share, after tax. During the six months ended June 30, 2017, the Company sold mitigation credits for approximately $1.1 million, for a gain of approximately $932,000, or $0.10 per share, after tax. During the six months ended June 30, 2018 and 2017, the Company received cash payments of approximately $131,000 and $291,000, respectively, for impact fees with a cost basis that was generally of equal value. Additionally, during the six months ended June 30, 2018, impact fees with a cost basis of approximately $72,000 were transferred to the beachfront restaurant leased to LandShark Bar & Grill. As of December 31, 2017, the Company owned impact fees with a cost basis of approximately $402,000 and mitigation credits with a cost basis of approximately $723,000 for a combined total of approximately $1.1 million. Subsurface Interests. As of June 30, 2018, the Company owns full or fractional subsurface oil, gas, and mineral interests underlying approximately 461,000 “surface” acres of land owned by others in 20 counties in Florida (the “Subsurface Interests”). The Company leases certain of the Subsurface Interests to mineral exploration firms for exploration. Our subsurface operations consist of revenue from the leasing of exploration rights and in some instances, additional revenues from royalties applicable to production from the leased acreage. During 2011, an eight-year oil exploration lease was executed covering a portion of our Subsurface Interests. On September 20, 2017, the Company amended the oil exploration lease to, among other things, extend the expiration of the original term for five additional years to the new expiration date of September 22, 2024. The lease is effectively thirteen one-year terms as the lessee has the option to terminate the lease at the end of each lease year. The lessee has exercised renewal options through lease year seven ending September 22, 2018. The terms of the lease state the Company will receive royalty payments if production occurs, and may receive additional annual rental payments if the lease is continued in years eight through thirteen. The lease calls for annual lease payments which are recognized as revenue ratably over the respective twelve-month lease periods. In addition, non-refundable drilling penalty payments are made as required by the drilling requirements in the lease which are recognized as revenue when received. Lease payments on the respective acreages and drilling penalties received through lease year seven are as follows: Acreage Lease Year (Approximate) Florida County Lease Payment (1) Drilling Penalty (1) Lease Year 1 - 9/23/2011 - 9/22/2012 136,000 Lee and Hendry $ 913,657 $ — Lease Year 2 - 9/23/2012 - 9/22/2013 136,000 Lee and Hendry 922,114 — Lease Year 3 - 9/23/2013 - 9/22/2014 82,000 Hendry 3,293,000 1,000,000 Lease Year 4 - 9/23/2014 - 9/22/2015 42,000 Hendry 1,866,146 600,000 Lease Year 5 - 9/23/2015 - 9/22/2016 25,000 Hendry 1,218,838 175,000 Lease Year 6 - 9/23/2016 - 9/22/2017 15,000 Hendry 806,683 150,000 Lease Year 7 - 9/23/2017 - 9/22/2018 15,000 Hendry 806,683 50,000 Total Payments Received to Date $ 9,827,121 $ 1,975,000 (1) Generally, cash payment for the Lease Payment and Drilling Penalty is received on or before the first day of the lease year. The Drilling Penalty, which is due within thirty days from the end of the prior lease year, is recorded as revenue when received, while the Lease Payment is recognized on a straight-line basis over the respective lease term. Pursuant to the amendment for the Year 7 renewal, the Lease Payment and Drilling Penalty were both received on October 11, 2017. See separate disclosure of revenue recognized per period below. Lease income generated by the annual lease payments is recognized on a straight-line basis over the guaranteed lease term. For both the three and six months ended June 30, 2018 and 2017, respectively, lease income of approximately $201,000 and $400,000 was recognized. There can be no assurance that the oil exploration lease will be extended beyond the expiration of the current term of September 22, 2018 or, if extended, the terms or conditions of such extension. During the six months ended June 30, 2018 and 2017, the Company also received oil royalties from operating oil wells on 800 acres under a separate lease with a separate operator. Revenues received from oil royalties totaled approximately $12,000 and $18,000, during the three months ended June 30, 2018 and 2017, respectively. Revenues received from oil royalties totaled approximately $44,000 and $49,000, during the six months ended June 30, 2018 and 2017, respectively. The Company is not prohibited from the disposition of any or all of its Subsurface Interests. Should the Company complete a transaction to sell all or a portion of its Subsurface Interests, the Company may utilize the like-kind exchange structure in acquiring one or more replacement investments including income-producing properties. The Company may release surface entry rights or other rights upon request of a surface owner for a negotiated release fee typically based on a percentage of the surface value. During the six months ended June 30, 2018, the Company completed a transaction releasing our surface entry rights on approximately 600 acres in exchange for approximately $185,000 in cash and fee title to approximately 40 additional acres in Hendry County, valued at approximately $320,000. Including the non-cash value received, the gain from the transaction totaled approximately $435,000, or $0.06 per share, after tax. The Company also received cash payments for the release of surface entry rights of approximately $68,000 during the six months ended June 30, 2018. There were no releases of surface entry rights during the six months ended June 30, 2017. |
INVESTMENT IN JOINT VENTURE
INVESTMENT IN JOINT VENTURE | 6 Months Ended |
Jun. 30, 2018 | |
INVESTMENT IN JOINT VENTURE | |
INVESTMENT IN JOINT VENTURE | NOTE 6. INVESTMENT IN JOINT VENTURE The Investment in Joint Venture on the Company’s consolidated balance sheet represents the Company’s ownership interest in the Mitigation Bank (the “JV Investment”). We have concluded the Mitigation Bank is a variable interest entity and is accounted for under the equity method of accounting as the Company is not the primary beneficiary as defined in FASB ASC Topic 810, Consolidation . The Mitigation Bank is jointly controlled by the members. Under the guidance of FASB ASC 323, Investments-Equity Method and Joint Ventures , the Company uses the equity method to account for the JV Investment. The following table provides summarized financial information of the Venture as of June 30, 2018: As of June 30, 2018 ($000's) Assets, cash and cash equivalents $ 2,409 Assets, investment in mitigation credit assets 1,424 Total Assets $ 3,833 Equity $ 3,833 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 7. FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the carrying value and estimated fair value of the Company’s financial instruments at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Cash and Cash Equivalents - Level 1 $ 4,312,324 $ 4,312,324 $ 6,559,409 $ 6,559,409 Restricted Cash - Level 1 2,419,686 2,419,686 6,508,131 6,508,131 Commercial Loan Investments - Level 2 2,994,916 3,031,501 11,925,699 12,015,628 Long-Term Debt - Level 2 177,133,608 179,596,049 195,816,364 200,000,776 To determine estimated fair values of the financial instruments listed above, market rates of interest, which include credit assumptions, were used to discount contractual cash flows. The estimated fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments. The use of different market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts. The following table presents the fair value of assets measured on a recurring basis by Level as of June 30, 2018: Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets Significant Other Unobservable for Identical Observable Inputs Inputs 6/30/2018 Assets (Level 1) (Level 2) (Level 3) Cash Flow Hedge - Interest Rate Swap $ 912,767 $ — $ 912,767 $ — Total $ 912,767 $ — $ 912,767 $ — The following table presents the fair value of assets measured on a recurring basis by Level as of December 31, 2017: Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets Significant Other Unobservable for Identical Observable Inputs Inputs 12/31/2017 Assets (Level 1) (Level 2) (Level 3) Cash Flow Hedge - Interest Rate Swap $ 606,621 $ — $ 606,621 $ — Total $ 606,621 $ — $ 606,621 $ — |
INTANGIBLE LEASE ASSETS AND LIA
INTANGIBLE LEASE ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 30, 2018 | |
INTANGIBLE LEASE ASSETS AND LIABILITIES | |
INTANGIBLE LEASE ASSETS AND LIABILITIES | NOTE 8. INTANGIBLE LEASE ASSETS AND LIABILITIES Intangible lease assets and liabilities consist of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their fair values. Intangible lease assets and liabilities consisted of the following as of June 30, 2018 and December 31, 2017: As of June 30, 2018 December 31, 2017 Intangible Lease Assets: Value of In-Place Leases $ 38,046,241 $ 36,827,226 Value of Above Market In-Place Leases 2,966,322 2,966,322 Value of Intangible Leasing Costs 12,004,653 10,405,135 Sub-total Intangible Lease Assets 53,017,216 50,198,683 Accumulated Amortization (14,411,170) (11,440,624) Sub-total Intangible Lease Assets—Net 38,606,046 38,758,059 Intangible Lease Liabilities (included in accrued and other liabilities): Value of Below Market In-Place Leases (36,109,518) (35,312,017) Sub-total Intangible Lease Liabilities (36,109,518) (35,312,017) Accumulated Amortization 6,969,983 5,541,576 Sub-total Intangible Lease Liabilities—Net (29,139,535) (29,770,441) Total Intangible Assets and Liabilities—Net $ 9,466,511 $ 8,987,618 The following table reflects the amortization of intangible assets and liabilities during the three and six months ended June 30, 2018 and 2017: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, ($000's) ($000's) ($000's) ($000's) Depreciation and Amortization Expense $ 1,368 $ 1,189 $ 2,721 $ 2,277 Increase to Income Properties Revenue (600) (550) (1,179) (1,081) Net Amortization of Intangible Assets and Liabilities $ 768 $ 639 $ 1,542 $ 1,196 The estimated future amortization and accretion of intangible lease assets and liabilities is as follows: Future Accretion Net Future Future to Income Amortization of Amortization Property Intangible Assets Year Ending December 31, Amount Revenue and Liabilities Remainder of 2018 $ 2,916,475 $ (1,182,672) $ 1,733,803 2019 5,452,670 (2,394,193) 3,058,477 2020 5,011,249 (2,327,464) 2,683,785 2021 3,320,813 (2,478,319) 842,494 2022 2,702,885 (2,549,480) 153,405 2023 2,359,734 (2,557,950) (198,216) Thereafter 14,985,245 (13,792,482) 1,192,763 Total $ 36,749,071 $ (27,282,560) $ 9,466,511 |
IMPAIRMENT OF LONG-LIVED ASSETS
IMPAIRMENT OF LONG-LIVED ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
IMPAIRMENT OF LONG-LIVED ASSETS | |
IMPAIRMENT OF LONG-LIVED ASSETS | NOTE 9. IMPAIRMENT OF LONG-LIVED ASSETS The Company assesses the impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The fair value of long-lived assets required to be assessed for impairment is determined on a non-recurring basis using Level 3 inputs in the fair value hierarchy. These Level 3 inputs may include, but are not limited to, executed purchase and sale agreements on specific properties, third party valuations, discounted cash flow models, and other model-based techniques. There were no impairment charges during the six months ended June 30, 2018 and 2017. |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
OTHER ASSETS | |
OTHER ASSETS | NOTE 10. OTHER ASSETS Other assets consisted of the following: As of June 30, 2018 December 31, Income Property Tenant Receivables $ 1,318,042 $ 895,476 Income Property Straight-line Rent Adjustment 3,439,530 2,517,195 Income Property Lease Incentive 2,545,461 2,696,678 Interest Receivable from Commercial Loan Investments — 38,078 Cash Flow Hedge - Interest Rate Swap 912,767 606,621 Infrastructure Reimbursement Receivables 2,117,840 2,213,305 Golf Operations Receivables 286,995 349,220 Deferred Deal Costs 471,966 480,257 Prepaid Expenses, Deposits, and Other 2,882,784 3,174,299 Total Other Assets $ 13,975,385 $ 12,971,129 Income Property Lease Incentive. As of June 30, 2018, the Income Property Lease Incentive of approximately $2.5 million relates to a tenant improvement allowance of approximately $2.7 million provided to Hilton Grand Vacations in conjunction with the extension of their leases of two buildings from November 30, 2021 to November 30, 2026, offset by approximately $202,000 of accumulated amortization which has been recognized as an offset to rental revenue. The remaining balance will be amortized over the remaining term of the leases. Infrastructure Reimbursement Receivables. As of June 30, 2018 and December 31, 2017, the Infrastructure Reimbursement Receivables were all related to the land sales within the Tomoka Town Center. The balance as of June 30, 2018 consisted of approximately $1.6 million due from Tanger for infrastructure reimbursement to be repaid in nine remaining annual installments of $175,000, net of a discount of approximately $162,000, and approximately $770,000 due from Sam’s Club for infrastructure reimbursement to be repaid in seven remaining annual installments of $110,000, net of a discount of approximately $65,000. Deferred Deal Costs. Deferred Deal Costs represent legal costs incurred in advance of the potential execution of and/or closing of a contract for the disposition of assets, primarily land sales. The costs are deferred and expensed at the time the transaction closes or at the time it becomes evident that the transaction will not be completed. |
COMMON STOCK AND EARNINGS PER S
COMMON STOCK AND EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2018 | |
COMMON STOCK AND EARNINGS PER SHARE | |
COMMON STOCK AND EARNINGS PER SHARE | NOTE 11. COMMON STOCK AND EARNINGS PER SHARE Basic earnings per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share is based on the assumption of the conversion of stock options and vesting of restricted stock at the beginning of each period using the treasury stock method at average cost for the periods. Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Income Available to Common Shareholders: Net Income $ 14,162,908 $ 3,678,908 $ 25,075,207 $ 16,425,300 Weighted Average Shares Outstanding 5,529,360 5,531,444 5,530,108 5,566,595 Common Shares Applicable to Stock Options Using the Treasury Stock Method — 14,008 31,683 16,463 Total Shares Applicable to Diluted Earnings Per Share 5,529,360 5,545,452 5,561,791 5,583,058 Per Share Information: Basic Net Income $ 2.56 $ 0.67 $ 4.53 $ 2.95 Diluted Net Income $ 2.56 $ 0.66 $ 4.51 $ 2.94 There were no potentially dilutive securities for the three months ended June 30, 2018. The effect of 70,000 potentially dilutive securities was not included for the three months ended June 30, 2017 as the effect would be anti-dilutive. The effect of 15,000 and 77,750 potentially dilutive securities was not included for the six months ended June 30, 2018 and 2017, respectively, as the effect would be anti-dilutive. The Company intends to settle its 4.50% Convertible Senior Notes due 2020 (the “Convertible Notes”) in cash upon conversion with any excess conversion value to be settled in shares of our common stock. Therefore, only the amount in excess of the par value of the Convertible Notes will be included in our calculation of diluted net income per share using the treasury stock method. As such, the Convertible Notes have no impact on diluted net income per share until the price of our common stock exceeds the current conversion price of $68.63. The average price of our common stock during the six months ended June 30, 2018 and 2017 did not exceed the conversion price which resulted in no additional diluted outstanding shares. |
TREASURY STOCK
TREASURY STOCK | 6 Months Ended |
Jun. 30, 2018 | |
TREASURY STOCK | |
TREASURY STOCK | NOTE 12. TREASURY STOCK In the first quarter of 2017, the Company announced a $10 million stock repurchase program (the “$10 Million Repurchase Program”) under which approximately $4.6 million of the Company’s common stock had been repurchased as of December 31, 2017. During the three months ended June 30, 2018, the Company repurchased 36,804 shares of its common stock on the open market for a total cost of approximately $2.2 million, or an average price per share of $59.57. The shares of the Company’s common stock repurchased during the three months ended June 30, 2018 were returned to the Company’s treasury. On July 18, 2018, the Company’s Board of Directors approved an increase of approximately $7.1 million to the stock repurchase program, refreshing the total program to an aggregate of $10 million. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2018 | |
LONG-TERM DEBT | |
LONG-TERM DEBT | NOTE 13. LONG-TERM DEBT As of June 30, 2018, the Company’s outstanding indebtedness, at face value, was as follows: Face Maturity Interest Value Debt Date Rate Credit Facility $ 50,745,579 September 2021 30 ‑day LIBOR Mortgage Note Payable (originated with Wells Fargo) (1) 30,000,000 October 2034 4.330% Mortgage Note Payable (originated with Wells Fargo) (2) 24,886,938 April 2021 30 ‑day LIBOR 4.50% Convertible Senior Notes due 2020, net of discount 75,000,000 March 2020 4.500% Total Long-Term Face Value Debt $ 180,632,517 (1) Secured by the Company’s interest in six income properties. The mortgage loan carries a fixed rate of 4.33% per annum during the first ten years of the term, and requires payments of interest only during the first ten years of the loan. After the tenth anniversary of the effective date of the loan, the cash flows, as defined in the related loan agreement, generated by the underlying six income properties must be used to pay down the principal balance of the loan until paid off or until the loan matures. The loan is fully pre-payable after the tenth anniversary of the effective date of the loan. (2) Secured by the Company’s income property leased to Wells Fargo located in Raleigh, North Carolina. The mortgage loan has a 5-year term with two years interest only, and interest and a 25-year amortization for the balance of the term. The mortgage loan bears a variable rate of interest based on the 30-day LIBOR plus a rate of 190 basis points. The interest rate for this mortgage loan has been fixed through the use of an interest rate swap that fixed the rate at 3.17%. The mortgage loan can be prepaid at any time subject to the termination of the interest rate swap. Amortization of the principal balance began in May 2018. Credit Facility. The Company’s revolving credit facility (the “Credit Facility”), with Bank of Montreal (“BMO”) serving as the administrative agent for the lenders thereunder, is unsecured with regard to our income property portfolio but is guaranteed by certain wholly-owned subsidiaries of the Company. The Credit Facility bank group is led by BMO and also includes Wells Fargo and Branch Banking & Trust Company. On September 7, 2017, the Company executed the second amendment and restatement of the Credit Facility (the “2017 Revolver Amendment”). Pursuant to the 2017 Revolver Amendment, the Credit Facility matures on September 7, 2021, with the ability to extend the term for 1 year. On May 14, 2018, the Company executed the first amendment to the 2017 Revolver Amendment (the “2018 Revolver Amendment”). As a result of the 2018 Revolver Amendment, the Credit Facility has a total borrowing capacity of $150.0 million with the ability to increase that capacity up to $250.0 million during the term. The Credit Facility provides the lenders with a secured interest in the equity of the Company subsidiaries that own the properties included in the borrowing base. The indebtedness outstanding under the Credit Facility accrues interest at a rate ranging from the 30-day LIBOR plus 150 basis points to the 30-day LIBOR plus 220 basis points based on the total balance outstanding under the Credit Facility as a percentage of the total asset value of the Company, as defined in the 2017 Revolver Amendment, as amended by the 2018 Revolver Amendment. The Credit Facility also accrues a fee of 15 to 25 basis points for any unused portion of the borrowing capacity based on whether the unused portion is greater or less than 50% of the total borrowing capacity. At June 30, 2018, the current commitment level under the Credit Facility was $150.0 million. The available borrowing capacity under the Credit Facility was approximately $99.1 million, based on the level of borrowing base assets. As of June 30, 2018, the Credit Facility had a $50.7 million balance outstanding. The Credit Facility is subject to customary restrictive covenants including, but not limited to, limitations on the Company’s ability to: (a) incur indebtedness; (b) make certain investments; (c) incur certain liens; (d) engage in certain affiliate transactions; and (e) engage in certain major transactions such as mergers. In addition, the Company is subject to various financial maintenance covenants including, but not limited to, a maximum indebtedness ratio, a maximum secured indebtedness ratio, and a minimum fixed charge coverage ratio. The Credit Facility also contains affirmative covenants and events of default including, but not limited to, a cross default to the Company’s other indebtedness and upon the occurrence of a change of control. The Company’s failure to comply with these covenants or the occurrence of an event of default could result in acceleration of the Company’s debt and other financial obligations under the Credit Facility. Mortgage Notes Payable. In addition to the Credit Facility, the Company has certain other borrowings, as noted in the table above, all of which are non-recourse. Convertible Debt. The Company’s $75.0 million aggregate principal amount of 4.50% Convertible Notes will mature on March 15, 2020, unless earlier purchased or converted. The initial conversion rate was 14.5136 shares of common stock for each $1,000 principal amount of Convertible Notes, which represented an initial conversion price of approximately $68.90 per share of common stock. Since July of 2016, when the Company’s Board of Directors implemented a quarterly dividend in place of the previous semi-annual dividend, the conversion rate has been adjusted with each successive quarterly dividend and is currently, after the second quarter 2018 dividend, equal to 14.5701 shares of common stock for each $1,000 principal amount of Convertible Notes, which represents an adjusted conversion price of approximately $68.63 per share of common stock. The conversion rate is subject to adjustment in certain circumstances. Holders may not surrender their Convertible Notes for conversion prior to December 15, 2019 except upon the occurrence of certain conditions relating to the closing sale price of the Company’s common stock, the trading price per $1,000 principal amount of Convertible Notes, or specified corporate events including a change in control of the Company. The Company may not redeem the Convertible Notes prior to the stated maturity date and no sinking fund is provided for the Convertible Notes. The Convertible Notes are convertible, at the election of the Company, into solely cash, solely shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock. The Company intends to settle the Convertible Notes in cash upon conversion, with any excess conversion value to be settled in shares of our common stock. In accordance with GAAP, the Convertible Notes are accounted for as a liability with a separate equity component recorded for the conversion option. A liability was recorded for the Convertible Notes on the issuance date at fair value based on a discounted cash flow analysis using current market rates for debt instruments with similar terms. The difference between the initial proceeds from the Convertible Notes and the estimated fair value of the debt instruments resulted in a debt discount, with an offset recorded to additional paid-in capital representing the equity component. The discount on the Convertible Notes was approximately $6.1 million at issuance, which represents the cash discount paid of approximately $2.6 million and the approximate $3.5 million attributable to the value of the conversion option recorded in equity, which is being amortized into interest expense through the maturity date of the Convertible Notes. As of June 30, 2018, the unamortized debt discount of our Convertible Notes was approximately $2.3 million. Long-term debt as of June 30, 2018 and December 31, 2017 consisted of the following: June 30, 2018 December 31, 2017 Due Within Due Within Total One Year Total One Year Credit Facility $ 50,745,579 $ — $ 70,000,000 $ — Mortgage Note Payable (originated with Wells Fargo) 30,000,000 — 30,000,000 — Mortgage Note Payable (originated with Wells Fargo) 24,886,938 — 25,000,000 — 4.50% Convertible Senior Notes due 2020, net of discount 72,701,857 — 72,075,295 — Loan Costs, net of accumulated amortization (1,200,766) — (1,258,931) — Total Long-Term Debt $ 177,133,608 $ — $ 195,816,364 $ — Payments applicable to reduction of principal amounts as of June 30, 2018 will be required as follows: Year Ending December 31, Amount 2019 $ — 2020 75,000,000 2021 75,632,517 2022 — 2023 — Thereafter 30,000,000 Total Long-Term Debt - Face Value $ 180,632,517 The carrying value of long-term debt as of June 30, 2018 consisted of the following: Total Current Face Amount $ 180,632,517 Unamortized Discount on Convertible Debt (2,298,143) Loan Costs, net of accumulated amortization (1,200,766) Total Long-Term Debt $ 177,133,608 The following table reflects a summary of interest expense incurred and paid during the three and six months ended June 30, 2018 and 2017: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, ($000's) ($000's) ($000's) ($000's) Interest Expense $ 2,085 $ 1,736 $ 4,185 $ 3,393 Amortization of Loan Costs 137 112 287 225 Amortization of Discount on Convertible Notes 316 296 627 588 Total Interest Expense $ 2,538 $ 2,144 $ 5,099 $ 4,206 Total Interest Paid $ 1,291 $ 887 $ 4,190 $ 3,438 The Company was in compliance with all of its debt covenants as of June 30, 2018 and December 31, 2017. |
INTEREST RATE SWAP
INTEREST RATE SWAP | 6 Months Ended |
Jun. 30, 2018 | |
INTEREST RATE SWAP | |
INTEREST RATE SWAP | NOTE 14. INTEREST RATE SWAP The Company entered into an interest rate swap agreement to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR for the $24.9 million mortgage note payable as discussed in Note 13, “Long-Term Debt.” During the six months ended June 30, 2018, the interest rate swap agreement was 100% effective. Accordingly, the change in fair value on the interest rate swap has been classified in accumulated other comprehensive income. As of June 30, 2018, the fair value of our interest rate swap agreement, which was a gain of approximately $913,000, was included in other assets on the consolidated balance sheets. The interest rate swap was effective on April 7, 2016 and matures on April 7, 2021. The interest rate swap fixed the variable rate debt on the notional amount of related debt of $24.9 million to a rate of 3.17%. |
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2018 | |
ACCRUED AND OTHER LIABILITIES | |
ACCRUED AND OTHER LIABILITIES | NOTE 15. ACCRUED AND OTHER LIABILITIES Accrued and other liabilities consisted of the following: As of June 30, 2018 December 31, Golf $1 Round Surcharge $ 630,000 $ 700,000 Accrued Property Taxes 1,372,678 66,909 Tenant Leasing Reserve Escrow 917,748 — Reserve for Tenant Improvements 136,157 3,302,831 Accrued Construction Costs 190,998 1,360,950 Accrued Interest 1,189,668 1,194,681 Environmental Reserve and Restoration Cost Accrual 572,197 866,936 Other 2,829,020 2,668,219 Total Accrued and Other Liabilities $ 7,838,466 $ 10,160,526 Golf $1 Round Surcharge. On January 24, 2017, the Company acquired the land and improvements comprising the golf courses, previously leased from the City, for approximately $1.5 million (the “Golf Course Land Purchase”). In connection with the Golf Course Land Purchase, each year the Company is obligated to pay the City additional consideration in the amount of an annual surcharge of $1 per golf round played (the “Per-Round Surcharge”) with an annual minimum Per-Round Surcharge of $70,000 and a maximum aggregate amount of the Per-Round Surcharges paid equal to $700,000. The maximum amount of $700,000 represents contingent consideration and was recorded as an increase in Golf Buildings, Improvements, and Equipment and Accrued and Other Liabilities in the accompany consolidated balance sheets. The first annual payment was made in January 2018 leaving a remaining commitment of approximately $630,000 as of June 30, 2018. Tenant Leasing Reserve Escrow. In connection with the acquisition of the property in Aspen, Colorado on February 21, 2018, the master tenant funded approximately $2.25 million at closing which is being held by the Company in a leasing reserve. During the six months ended June 30, 2018 eligible costs totaling approximately $1.3 million were funded from the escrow account which included approximately $935,000 of the Company’s costs incurred related to the property acquisition and approximately $398,000 in base rent payments, leaving a remaining escrow balance of approximately $918,000. The balance can be used for eligible costs which, pursuant to the lease, include rent payments up to a maximum of $1.0 million and taxes, insurance, leasing commissions, tenant improvements, or other third-party operating expenses incurred in connection with the operation of the property. Reserve for Tenant Improvements. The reduction of the balance during the six months ended June 30, 2018 represents the payment of approximately $2.7 million for a tenant improvement allowance provided to Hilton Grand Vacations in conjunction with the extension of their leases of two buildings from November 30, 2021 to November 30, 2026 which was accrued for as of December 31, 2017. In connection with the acquisition on April 28, 2017 of the property in Tampa, Florida leased to LA Fitness, the Company was credited approximately $400,000 at closing for certain tenant improvements. During the quarter ended June 30, 2018, the tenant completed the improvements and the Company funded $400,000 to LA Fitness. Environmental Reserve. During the year ended December 31, 2014, the Company accrued an environmental reserve of approximately $110,000 in connection with an estimate of additional costs required to monitor a parcel of less than one acre of land owned by the Company in Highlands County, Florida on which environmental remediation work had previously been performed. The Company engaged legal counsel who, in turn, engaged environmental engineers to review the site and the prior monitoring test results. During the year ended December 31, 2015, their review was completed, and the Company made an additional accrual of approximately $500,000, representing the low end of the range of possible costs estimated by the engineers to be between approximately $500,000 and $1.0 million to resolve this matter subject to the approval of the state department of environmental protection (the “FDEP”). The FDEP issued a Remedial Action Plan Modification Approval Order (the “FDEP Approval”) in August 2016 which supports the approximate $500,000 accrual made in 2015. The Company is implementing the remediation plan pursuant to the FDEP Approval. During the fourth quarter of 2017, the Company made an additional accrual of approximately $51,000 for the second year of monitoring as the low end of the original range of estimated costs was increased for the amount of monitoring now anticipated. Since the total accrual of approximately $661,000 was made, approximately $552,000 in costs have been incurred through June 30, 2018, leaving a remaining accrual of approximately $109,000. Restoration Accrual. As part of the resolution of a regulatory matter pertaining to the Company’s prior agricultural activities on certain of the Company’s land located in Daytona Beach, Florida, as of December 31, 2015, the Company accrued an obligation of approximately $1.7 million, representing the low end of the estimated range of possible wetlands restoration costs for approximately 148.4 acres within such land, and such estimated costs were included on the consolidated balance sheets as an increase in the basis of our land and development costs associated with those and benefitting surrounding acres. The final proposal for restoration work was received during the second quarter of 2016 which totaled approximately $2.0 million. Accordingly, an increase in the accrual of approximately $300,000 was recorded during the second quarter of 2016. The Company funded approximately $1.6 million of the total $2.0 million of estimated costs through the period ended June 30, 2018, leaving a remaining accrual of approximately $464,000. This matter is more fully described in Note 19 “Commitments and Contingencies.” |
DEFERRED REVENUE
DEFERRED REVENUE | 6 Months Ended |
Jun. 30, 2018 | |
DEFERRED REVENUE | |
DEFERRED REVENUE | NOTE 16. DEFERRED REVENUE Deferred revenue consisted of the following: As of June 30, 2018 December 31, Deferred Oil Exploration Lease Revenue $ 185,648 $ 585,675 Deferred Revenue on Land Sales 846,545 — Prepaid Rent 1,079,747 1,126,408 Tenant Contributions 4,227,953 — Other Deferred Revenue 528,772 318,376 Total Deferred Revenue $ 6,868,665 $ 2,030,459 Deferred Oil Exploration Lease Revenue. On October 11, 2017, the Company received an approximate $807,000 rent payment for the seventh year of the Company’s thirteen-year oil exploration lease, which is being recognized ratably over the twelve-month lease period ending in September 2018. The oil exploration lease is more fully described in Note 5 “Land and Subsurface Interests.” Deferred Revenue on Land Sales. In conjunction with the land sale to Buc-ee’s in March 2018, the Company funded an escrow account for approximately $831,000 related to the portion of the acreage sold for which the Company remains obligated to perform wetlands mitigation. As a result of the Company’s continuing obligation, approximately $831,000 of the sales price collected at closing was deferred and the revenue will be recognized upon the Company’s performance of the obligation. The Company estimates the obligation related to the wetlands mitigation will total approximately $25,000. Tenant Contributions. In connection with the acquisition of the property in Aspen, Colorado, the master tenant contributed $1.5 million of the $28.0 million purchase price at closing on February 21, 2018. Additionally, the master tenant funded, from its leasing reserve escrow, approximately $935,000 of the Company’s acquisition-related costs. Approximately $41,000 was recognized into income property rental revenue through June 30, 2018, leaving an aggregate balance of approximately $2.4 million, related to the Company’s total acquisition cost of approximately $29.0 million, to be recognized over the remaining term of the lease. In connection with the construction of the beachfront restaurant leased to Cocina 214 Restaurant & Bar in Daytona Beach, Florida, the tenant contributed approximately $1.9 million of the building and tenant improvements owned by the Company through direct payments to various third-party construction vendors. Approximately $54,000 was recognized into income property rental revenue through June 30, 2018, leaving a balance of approximately $1.8 million to be recognized over the remaining term of the lease. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2018 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | NOTE 17. STOCK-BASED COMPENSATION SUMMARY OF STOCK-BASED COMPENSATION A summary of share activity for all equity classified stock compensation during the six months ended June 30, 2018, is presented below: Shares Vested / Shares Outstanding Granted Exercised Expired Forfeited Outstanding Type of Award at 1/1/2018 Shares Shares Shares Shares at 6/30/2018 Equity Classified - Performance Share Awards - Peer Group Market Condition Vesting 12,635 15,445 — — — 28,080 Equity Classified - Market Condition Restricted Shares - Stock Price Vesting 29,750 — (7,750) — — 22,000 Equity Classified - Three Year Vest Restricted Shares 37,390 17,712 (18,883) — — 36,219 Equity Classified - Non-Qualified Stock Option Awards 90,000 — — — — 90,000 Total Shares 169,775 33,157 (26,633) — — 176,299 Amounts recognized in the consolidated financial statements related to stock compensation are as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Total Cost of Share-Based Plans Charged Against Income Before Tax Effect $ 430,054 $ 389,585 $ 897,325 $ 743,164 Income Tax Expense Recognized in Income $ (108,997) $ (150,283) $ (227,427) $ (286,676) EQUITY-CLASSIFIED STOCK COMPENSATION Performance Share Awards – Peer Group Market Condition Vesting On February 3, 2017, the Company awarded to certain employees 12,635 Performance Shares under the Amended and Restated 2010 Equity Incentive Plan (the “2010 Plan”). The Performance Shares awards entitle the recipient to receive, upon the vesting thereof, shares of common stock of the Company equal to between 0% and 150% of the number of Performance Shares awarded. The number of shares of common stock so vesting will be determined based on the Company’s total shareholder return as compared to the total shareholder return of a certain peer group during a three-year performance period commencing on January 1, 2017 and ending on December 31, 2019. On January 24, 2018, the Company awarded to certain employees 15,445 Performance Shares under the 2010 Plan. The Performance Shares awards entitle the recipient to receive, upon the vesting thereof, shares of common stock of the Company equal to between 0% and 150% of the number of Performance Shares awarded. The number of shares of common stock so vesting will be determined based on the Company’s total shareholder return as compared to the total shareholder return of a certain peer group during a three-year performance period commencing on January 1, 2018 and ending on December 31, 2020. Pursuant to amendments to the employment agreements and certain restricted share award agreements entered into by the Company on August 4, 2017, the restricted shares granted thereunder, if they are subject to performance-based vesting conditions, will fully vest following a change in control only if the executive’s employment is terminated without cause or if the executive resigns for good reason (as such terms are defined in the executive’s employment agreement), in each case, at any time during the 24-month period following the change in control (as defined in the executive’s employment agreement). The Company used a Monte Carlo simulation pricing model to determine the fair value of its awards that are based on market conditions. The determination of the fair value of market condition-based awards is affected by the Company’s stock price as well as assumptions regarding a number of other variables. These variables include expected stock price volatility over the requisite performance term of the awards, the relative performance of the Company’s stock price and shareholder returns to companies in its peer group, annual dividends, and a risk-free interest rate assumption. Compensation cost is recognized regardless of the achievement of the market conditions, provided the requisite service period is met. A summary of activity during the six months ended June 30, 2018, is presented below: Wtd. Avg. Performance Shares with Market Conditions Shares Fair Value Outstanding at January 1, 2018 12,635 $ 55.66 Granted 15,445 74.99 Vested — — Expired — — Forfeited — — Outstanding at June 30, 2018 28,080 $ 66.29 As of June 30, 2018, there was approximately $1.3 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to Performance Share awards, which will be recognized over a remaining weighted average period of 2.2 years. Market Condition Restricted Shares – Stock Price Vesting “Inducement” grants of 96,000 and 17,000 shares of restricted Company common stock were awarded to John P. Albright and Mark E. Patten in 2011 and 2012, respectively. Mr. Albright’s restricted shares were granted outside of the 2010 Plan while Mr. Patten’s restricted shares were awarded under the 2010 Plan. The Company filed a registration statement with the Securities and Exchange Commission on Form S-8 to register the resale of Mr. Albright’s restricted stock under this award. The restricted shares were to vest in six increments based upon the price per share of the Company’s common stock during the term of their employment (or within sixty days after termination of employment by the Company without cause) meeting or exceeding the target trailing sixty-day average closing prices ranging from $36 per share for the first increment to $65 per share for the final increment. If any increment of the restricted shares were to fail to satisfy the applicable stock price condition prior to six years from the grant date, that increment of the restricted shares would have been forfeited. The first four increments of Mr. Albright’s awards vested, while the remaining 32,000 unvested “inducement” grant restricted shares, for the $60 and $65 price increments, awarded to Mr. Albright in 2011, expired without vesting on August 1, 2017. As of June 30, 2018, all six increments of Mr. Patten’s grants had vested. Additional grants of 2,500 and 3,000 shares of restricted Company common stock were awarded to Daniel E. Smith and Steven R. Greathouse under the 2010 Plan, during the fourth quarter of 2014 and the first quarter of 2015, respectively. The restricted shares were to vest in two increments based upon the price per share of Company common stock during the term of their employment (or within sixty days after termination of employment by the Company without cause), meeting or exceeding the target trailing sixty-day average closing prices of $60 per share and $65 per share for the two increments. If any increment of the restricted shares were to fail to satisfy the applicable stock price condition prior to six years from the grant date, that increment of the restricted shares would have been forfeited. As of June 30, 2018, both increments of Mr. Smith’s and Mr. Greathouse’s awards had vested. A grant of 94,000 shares of restricted Company common stock was awarded to Mr. Albright under the 2010 Plan during the second quarter of 2015 under a new five-year employment agreement. On February 26, 2016, 72,000 of these shares were surrendered due to an over-grant by the Company, of which (i) 4,000 were re-granted on February 26, 2016 with terms identical to those of the surrendered restricted stock, and (ii) 68,000 were permanently surrendered. The 26,000 shares of restricted Company common stock outstanding from these grants were to vest in four increments based upon the price per share of Company common stock during the term of his employment (or within sixty days after termination of employment by the Company without cause), meeting or exceeding the target trailing thirty-day average closing prices ranging from $60 and $65 per share for the first two increments of 2,000 shares each, $70 per share for the third increment of 18,000 shares, and $75 per share for the fourth increment of 4,000 shares. If any increment of the restricted shares fails to satisfy the applicable stock price condition prior to January 28, 2021, that increment of the restricted shares will be forfeited. As of June 30, 2018, the first two increments of this award had vested. Pursuant to amendments to the employment agreements and certain restricted share award agreements entered into by the Company on February 26, 2016 and August 4, 2017, the restricted shares granted thereunder, if they are subject to performance-based vesting conditions, will fully vest following a change in control only if the executive’s employment is terminated without cause or if the executive resigns for good reason (as such terms are defined in the executive’s employment agreement), in each case, at any time during the 24-month period following the change in control (as defined in the executive’s employment agreement). The Company used a Monte Carlo simulation pricing model to determine the fair value of its awards that are based on market conditions. The determination of the fair value of market condition-based awards is affected by the Company’s stock price as well as assumptions regarding a number of other variables. These variables include expected stock price volatility over the requisite performance term of the awards, the relative performance of the Company’s stock price and shareholder returns to companies in its peer group, annual dividends, and a risk-free interest rate assumption. Compensation cost is recognized regardless of the achievement of the market conditions, provided the requisite service period is met. A summary of the activity for these awards during the six months ended June 30, 2018, is presented below: Wtd. Avg. Market Condition Non-Vested Restricted Shares Shares Fair Value Outstanding at January 1, 2018 29,750 $ 39.07 Granted — — Vested (7,750) 31.58 Expired — — Forfeited — — Outstanding at June 30, 2018 22,000 $ 41.71 As of June 30, 2018, there is no unrecognized compensation cost related to market condition restricted stock. Three Year Vest Restricted Shares On January 22, 2014, the Company granted to certain employees 14,500 shares of restricted Company common stock under the 2010 Plan. One-third of the restricted shares vested on each of the first, second, and third anniversaries of the grant date, provided the grantee was an employee of the Company on those dates. On January 28, 2015, the Company granted to certain employees, which did not include Mr. Albright, 11,700 shares of restricted Company common stock under the 2010 Plan. Additionally, on February 9, 2015, the Company granted 8,000 shares of restricted Company common stock to Mr. Albright under the 2010 Plan. One-third of both awards of restricted shares vested on each of the first, second, and third anniversaries of the January 28, 2015 grant date, provided the grantee was an employee of the Company on those dates. On January 27, 2016, the Company granted to certain employees 21,100 shares of restricted Company common stock under the 2010 Plan. One-third of the restricted shares will vest on each of the first, second, and third anniversaries of January 28, 2016, provided the grantee is an employee of the Company on those dates. In addition, any unvested portion of the restricted shares will vest upon a change in control. On January 25, 2017, the Company granted to certain employees 17,451 shares of restricted Company common stock under the 2010 Plan. One-third of the restricted shares will vest on each of the first, second, and third anniversaries of January 28, 2017 provided the grantee is an employee of the Company on those dates. In addition, any unvested portion of the restricted shares will vest upon a change in control. On January 24, 2018, the Company granted to certain employees 17,712 shares of restricted Company common stock under the 2010 Plan. One-third of the restricted shares will vest on each of the first, second, and third anniversaries of January 28, 2018 provided the grantee is an employee of the Company on those dates. In addition, any unvested portion of the restricted shares will vest upon a change in control. Effective as of August 4, 2017, the Company entered into amendments to the employment agreements and certain stock option award agreements and restricted share award agreements whereby such awards will fully vest following a change in control (as defined in the executive’s employment agreement) only if the executive’s employment is terminated without cause or if the executive resigns for good reason (as such terms are defined in the executive’s employment agreement), in each case, at any time during the 24-month period following the change in control. The Company’s determination of the fair value of the three-year vest restricted stock awards was calculated by multiplying the number of shares issued by the Company’s stock price at the grant date, less the present value of expected dividends during the vesting period. Compensation cost is recognized on a straight-line basis over the vesting period. A summary of activity during the six months ended June 30, 2018, is presented below: Wtd. Avg. Fair Value Three Year Vest Non-Vested Restricted Shares Shares Per Share Outstanding at January 1, 2018 37,390 $ 51.39 Granted 17,712 65.33 Vested (18,883) 51.57 Expired — — Forfeited — — Outstanding at June 30, 2018 36,219 $ 58.12 As of June 30, 2018, there was approximately $1.7 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to the three-year vest non-vested restricted shares, which will be recognized over a remaining weighted average period of 2.10 years. Non-Qualified Stock Option Awards Pursuant to the Non-Qualified Stock Option Award Agreements between the Company and Messrs. Albright, Patten, and Smith, each of these Company employees was granted an option to purchase 50,000, 10,000, and 10,000 shares of Company common stock, in 2011, 2012, and 2014, respectively, under the 2010 Plan, with an exercise price per share equal to the fair market value on their respective grant dates. One-third of the options vested on each of the first, second, and third anniversaries of their respective grant dates, provided the recipient was an employee of the Company on those dates. In addition, any unvested portion of the options will vest upon a change in control. The options expire on the earliest of: (a) the tenth anniversary of the grant date; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability. On January 23, 2013, the Company granted options to purchase 51,000 shares of the Company’s common stock under the 2010 Plan to certain employees of the Company, including 10,000 shares to Mr. Patten, with an exercise price per share equal to the fair market value at the date of grant. One-third of these options vested on each of the first, second, and third anniversaries of the grant date, provided the recipient was an employee of the Company on those dates. The options expire on the earliest of: (a) the fifth anniversary of the grant date; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability. On February 9, 2015, the Company granted to Mr. Albright an option to purchase 20,000 shares of the Company’s common stock under the 2010 Plan with an exercise price of $57.50. The option vested on January 28, 2016. The option expires on the earliest of: (a) January 28, 2025; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability. On May 20, 2015, the Company granted to Mr. Albright an option to purchase 40,000 shares of the Company’s common stock under the 2010 Plan, with an exercise price of $55.62. On February 26, 2016, this option was surrendered and an option to purchase 40,000 shares was granted on February 26, 2016 with identical terms. One-third of the option vested immediately and the remaining two-thirds vested on January 28, 2017 and January 28, 2018. The option expires on the earliest of: (a) January 28, 2025; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability. On June 29, 2015, the Company granted to an officer of the Company an option to purchase 10,000 shares of the Company’s common stock under the 2010 Plan, with an exercise price of $57.54. One-third of the option will vest on each of the first, second, and third anniversaries of the grant date, provided the recipient is an employee of the Company on such dates. In addition, any unvested portion of the option will vest upon a change in control. The option expires on the earliest of: (a) June 29, 2025; (b) twelve months after the employee’s death or termination for disability; or (c) thirty days after the termination of employment for any reason other than death or disability. Effective as of August 4, 2017, the Company entered into amendments to the employment agreements and certain stock option award agreements and restricted share award agreements whereby such awards will fully vest following a change in control (as defined in the executive’s employment agreement) only if the executive’s employment is terminated without cause or if the executive resigns for good reason (as such terms are defined in the executive’s employment agreement), in each case, at any time during the 24-month period following the change in control. The Company used the Black-Scholes valuation pricing model to determine the fair value of its non-qualified stock option awards. The determination of the fair value of the awards is affected by the stock price as well as assumptions regarding a number of other variables. These variables include expected stock price volatility over the term of the awards, annual dividends, and a risk-free interest rate assumption. A summary of the activity for the awards during the six months ended June 30, 2018, is presented below: Wtd. Avg. Remaining Contractual Aggregate Wtd. Avg. Term Intrinsic Non-Qualified Stock Option Awards Shares Ex. Price (Years) Value Outstanding at January 1, 2018 90,000 $ 52.71 Granted — — Exercised — — Expired — — Forfeited — — Outstanding at June 30, 2018 90,000 $ 52.71 6.48 $ 792,300 Exercisable at January 1, 2018 73,000 $ 51.94 6.88 $ 843,968 Exercisable at June 30, 2018 90,000 $ 52.71 6.48 $ 792,300 A summary of the non-vested options for these awards during the six months ended June 30, 2018, is presented below: Fair Value of Shares Non-Qualified Stock Option Awards Shares Vested Non-Vested at January 1, 2018 17,000 Granted — Vested (17,000) $ 952,068 Expired — Forfeited — Non-Vested at June 30, 2018 — No options were granted during the six months ended June 30, 2018. No options were exercised during the six months ended June 30, 2018. As of June 30, 2018, there is no unrecognized compensation cost related to non-qualified, non-vested stock option awards. LIABILITY-CLASSIFIED STOCK COMPENSATION The Company previously had a stock option plan (the “2001 Plan”) pursuant to which 500,000 shares of the Company’s common stock were eligible for issuance. The 2001 Plan expired in 2010, and no new stock options may be issued under the 2001 Plan. Under the 2001 Plan, both stock options and stock appreciation rights were issued in prior years and such issuances were deemed to be liability-classified awards under the Share-Based Payment Topic of FASB ASC, which are required to be remeasured at fair value at each balance sheet date until the award is settled. There was no remaining liability as of December 31, 2017 because there were no options outstanding and exercisable as of December 31, 2017. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
INCOME TAXES | |
INCOME TAXES | NOTE 18. INCOME TAXES The Company’s effective income tax rate was 24.9% and 38.5% for the six months ended June 30, 2018 and 2017, respectively, with the reduction being primarily attributable to the reduction in the Federal corporate tax rate from 35% to 21% resulting from the Tax Cuts and Jobs Act effective January 1, 2018. The provision for income taxes reflects the Company’s estimate of the effective rate expected to be applicable for the full fiscal year, adjusted for any discrete events, which are reported in the period that they occur. There were no discrete events during the six months ended June 30, 2018 or 2017. The Company files a consolidated income tax return in the United States Federal jurisdiction and the states of Arizona, Colorado, California, Florida, Illinois, Georgia, Maryland, Massachusetts, North Carolina, Oregon, Texas, Virginia and Washington. The Internal Revenue Service has audited the federal tax returns through the year 2012, with all proposed adjustments settled. The Florida Department of Revenue has audited the Florida tax returns through the year 2014, with all proposed adjustments settled. The Company recognizes all potential accrued interest and penalties to unrecognized tax benefits in income tax expense. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 19. COMMITMENTS AND CONTINGENCIES Legal Proceedings From time to time, the Company may be a party to certain legal proceedings, incidental to the normal course of its business. While the outcome of the legal proceedings cannot be predicted with certainty, the Company does not expect that these proceedings will have a material effect upon our financial condition or results of operations. On November 21, 2011, the Company, Indigo Mallard Creek LLC and Indigo Development LLC, as owners of the property leased to Harris Teeter, Inc. (“Harris Teeter”) in Charlotte, North Carolina, were served with pleadings filed in the General Court of Justice, Superior Court Division for Mecklenburg County, North Carolina, for a highway condemnation action involving this property. The proposed road modifications would impact access to the property. The Company does not believe the road modifications provided a basis for Harris Teeter to terminate the Lease. Regardless, in January 2013, the North Carolina Department of Transportation (“NCDOT”) proposed to redesign the road modifications to keep the all access intersection open for ingress with no change to the planned limitation on egress to the right-in/right-out only. Additionally, NCDOT and the City of Charlotte proposed to build and maintain a new access road/point into the property. Construction has begun and is not expected to be completed before mid-2018 to 2019. Harris Teeter has expressed satisfaction with the redesigned project and indicated that it will not attempt to terminate its lease if this project is built as currently redesigned. Because the redesigned project will not be completed until mid-2018 to 2019, the condemnation case has been placed in administrative closure. As a result, the trial and mediation will not likely be scheduled until requested by the parties, most likely in 2019. On April 5, 2018, a complaint was filed in the United States District Court for the Eastern District of New York (the “Complaint”) which alleged that certain aspects of Proposal 4 (the “Equity Plan Proposal”) contained in the Company’s Notice of Annual Meeting of Shareholders and 2018 Proxy Statement filed with the SEC on March 12, 2018 (the “2018 Proxy Statement”) did not comply with the disclosure requirements for proxy statements pursuant to SEC regulations. The Complaint alleged that the Equity Plan Proposal did not state the number of participants, employees, and nonemployee directors of the Company and its subsidiaries who may be eligible to participate in the Company’s equity incentive plan (the “CTO Equity Plan”). The Complaint sought injunctive relief and an award of attorney’s fees and expenses. While the Company believes the 2018 Proxy Statement was compliant with applicable SEC disclosure rules and that the Complaint is without merit, the Company voluntarily made a supplemental disclosure in its additional proxy materials reiterating that the Company currently has 14 employees and 7 nonemployee directors, and that the Company’s subsidiaries have no employees, and therefore the total number of persons currently eligible to receive equity awards under the CTO Equity Plan is 21. On July 2, 2018, the Company paid an immaterial settlement amount associated with the legal fees of the plaintiff and the Complaint was dismissed. Contractual Commitments – Expenditures In conjunction with the Company’s sale of approximately 3.4 acres of land to RaceTrac in December 2013, the Company agreed to reimburse RaceTrac for a portion of the costs for road improvements and the other costs associated with bringing multiple ingress/egress points to the entire 23-acre Williamson Crossing site, including the Company’s remaining 19.6 acres. The total cost for the improvements was approximately $1.26 million and the Company has committed to reimburse RaceTrac in an amount equal to $976,500. In 2013 the Company deposited $283,500 of cash in escrow related to the improvements, which was previously classified as restricted cash in the consolidated balance sheets. In the second quarter of 2018, the Company received confirmation that the required improvements were completed by RaceTrac. Accordingly, $283,500 was paid to RaceTrac leaving no remaining escrow balance as of June 30, 2018. As of June 30, 2018, the remaining commitment is approximately $693,000 which can be paid over five years from the proceeds from sales of the remaining land or at the end of the fifth year. In conjunction with the Company’s sale of approximately 18.1 acres of land to an affiliate of Sam’s Club (“Sam’s”) in December 2015, the Company agreed to reimburse Sam’s for a portion of their construction costs applicable to adjacent outparcels retained by the Company. As a result, in December 2015, the Company deposited $125,000 of cash in escrow related to construction work which is classified as restricted cash in the consolidated balance sheets. The total amount in escrow as of June 30, 2018 was approximately $125,000, including accrued interest. Accordingly, the Company’s maximum commitment related to the construction work benefitting the outparcels adjacent to Sam’s land parcel is approximately $125,000, to be paid from escrow upon completion. During April of 2018, the Company executed a contract with a third party to complete tenant improvements at The Grove at Winter Park property in Winter Park, Florida for a total of approximately $638,000. The Company has incurred approximately $596,000 of these costs as of June 30, 2018, leaving a remaining commitment of approximately $42,000. In connection with the Golf Course Land Purchase, each year the Company is obligated to pay the Per-Round Surcharge with an annual minimum Per-Round Surcharge of $70,000 and a maximum aggregate amount of the Per-Round Surcharges paid equal to $700,000. The maximum amount of $700,000 represents contingent consideration and was recorded as an increase in Golf Buildings, Improvements, and Equipment and Accrued and Other Liabilities in the accompany consolidated balance sheets during the year ended December 31, 2017. The first annual payment of $70,000 was made in January of 2018, leaving a remaining commitment of $630,000 as of June 30, 2018. Contractual Commitments – Land Pipeline As of August 1, 2018, the Company’s pipeline of potential land sales transactions included the following seventeen potential transactions with fourteen different buyers, representing nearly 4,300 acres or approximately 78% of our land holdings: No. of Acres Amount Price Estimated Transaction (Buyer) (Rounded) ($000's) per Acre Timing 1 Commercial/Retail - O'Connor - West of I-95 850 $ 34,000 $ '19 - '20 2 Commercial/Retail - O'Connor - East of I-95 (1) 123 29,250 '19 3 Residential (AR) - Minto Communities - West of I-95 1,614 26,500 Q4 '18 4 Residential (SF) - ICI Homes - West of I-95 1,016 21,000 '19 5 Residential (MF) - East of I-95 80 16,000 '19 6 Mixed-Use Retail - North American - East of I-95 (2) 35 14,362 409,000 Q4 '18 7 Commercial/Medical Office - East of I-95 32 8,089 '19 - '20 8 Residential (MF) - East of I-95 (3) 45 5,200 Q3 '18 & '20 9 Distribution/Warehouse - VanTrust - East of I-95 71 5,000 '19 10 Commercial/Retail - East of I-95 20 4,250 Q4 '18 11 Commercial/Retail - East of I-95 9 3,300 Q4 '18 - '19 12 Commercial/Distribution - VanTrust - East of I-95 26 3,215 '18 - '19 13 Residential (SF) - West of I-95 (4) 200 3,175 Q4 '18 & '20 14 Auto Dealership - West of I-95 13 2,000 Q4 '18 15 Commercial/Retail - East of I-95 2 1,500 '19 - '20 16 Residential (SF) - ICI Homes - West of I-95 146 1,400 '19 17 Commercial/Medical Office - East of I-95 4 935 Q4 '18 Total (Average) 4,286 $ 179,176 $ (1) Land sales transaction which requires the Company to incur the cost to provide the requisite mitigation credits necessary for obtaining the applicable regulatory permits for the buyer, with such costs representing either our basis in the credits that we own, or potentially up to 5% - 10% of the contract amount noted. (2) Pursuant to the contract, amount includes the reimbursement of infrastructure costs incurred by the Company for Tomoka Town Center plus interest accrued as of December 31, 2017. (3) The acres and amount include the buyer’s option to acquire approximately 19 acres for $2.0 million, in addition to the base contract of approximately 26 acres for $3.2 million. (4) The acres and amount include the buyer’s option to acquire approximately 71 acres for $925,000, in addition to the base contract of approximately 129 acres for $2.25 million. As noted above, these agreements contemplate closing dates ranging from the second half of 2018 through fiscal year 2020, and although some of the transactions may close in 2018, the buyers are not contractually obligated to close until after 2018. Each of the transactions are in varying stages of due diligence by the various buyers including, in some instances, having made submissions to the planning and development departments of the City, and other permitting activities with other applicable governmental authorities including wetlands permits from the St. John’s River Water Management District and the U.S. Army Corps of Engineers and traffic analysis with the Florida Department of Transportation and Volusia County. In addition to other customary closing conditions, the majority of these transactions are conditioned upon the receipt of approvals or permits from those various governmental authorities, as well as other matters that are beyond our control. If such approvals are not obtained, the prospective buyers may have the ability to terminate their respective agreements prior to closing. As a result, there can be no assurances regarding the likelihood or timing of any one of these potential land transactions being completed or the final terms thereof, including the sales price. Other Matters In connection with a certain land sale contract to which the Company is a party, the purchaser’s pursuit of customary development entitlements gave rise to an inquiry by federal regulatory agencies regarding prior agricultural activities by the Company on such land. During the second quarter of 2015, we received a written information request regarding such activities. We submitted a written response to the information request along with supporting documentation. During the fourth quarter of 2015, based on discussions with the agency, a penalty related to this matter was deemed probable, and accordingly the estimated penalty of $187,500 was accrued as of December 31, 2015, for which payment was made during the quarter ended September 30, 2016. Also during the fourth quarter of 2015, the agency advised the Company that the resolution to the inquiry would likely require the Company to incur costs associated with wetlands restoration relating to approximately 148.4 acres of the Company’s land. At December 31, 2015, the Company’s third-party environmental engineers estimated the cost for such restoration activities to range from approximately $1.7 million to approximately $1.9 million. Accordingly, as of December 31, 2015, the Company accrued an obligation of approximately $1.7 million, representing the low end of the estimated range of possible restoration costs, and included such estimated costs on the consolidated balance sheets as an increase in the basis of our land and development costs associated with those and benefitting surrounding acres. As of June 30, 2016, the final proposal from the Company’s third-party environmental engineer was received reflecting a total cost of approximately $2.0 million. Accordingly, an increase in the accrual of approximately $300,000 was made during the second quarter of 2016. The Company has funded approximately $1.6 million of the total $2.0 million of estimated costs through June 30, 2018. The Company believes there is at least a reasonable possibility that the estimated remaining liability of approximately $464,000 could change within one year of the date of the consolidated financial statements, which in turn could have a material impact on the Company’s consolidated balance sheets and future cash flows. The Company evaluates its estimates on an ongoing basis; however, actual results may differ from those estimates. During the first quarter of 2017, the Company completed the sale of approximately 1,581 acres of land to Minto Communities LLC which acreage represents a portion of the Company’s remaining $708,000 obligation. Accordingly, the Company deposited $423,000 of cash in escrow to secure performance on the obligation. The funds in escrow can be drawn upon completion of certain milestones including completion of restoration and annual required monitoring. The first such milestone was achieved during the fourth quarter of 2017 and $189,500 of the escrow was refunded leaving an escrow balance of approximately $234,000 as of June 30, 2018. Additionally, resolution of the regulatory matter required the Company to apply for an additional permit pertaining to an additional approximately 54.66 acres, which permit may require mitigation activities which the Company anticipates could be satisfied through the utilization of existing mitigation credits owned by the Company or the acquisition of mitigation credits. Resolution of this matter allowed the Company to obtain certain permits from the applicable federal or state regulatory agencies needed in connection with the closing of the land sale contract that gave rise to this matter. As of June 30, 2017, the Company determined that approximately 36 mitigation credits were required to be utilized, which represents approximately $298,000 in cost basis of the Company’s mitigation credits. Accordingly, the Company transferred the mitigation credits through a charge to direct cost of revenues of real estate operations during the three months ended June 30, 2017, thereby resolving the required mitigation activities related to the approximately 54.66 acres. In addition, in connection with other land sale contracts to which the Company is or may become a party, the pursuit of customary development entitlements by the potential purchasers may require the Company to utilize or acquire mitigation credits for the purpose of obtaining certain permits from the applicable federal or state regulatory agencies. Any costs incurred in connection with utilizing or acquiring such credits would be incorporated into the basis of the land under contract. No amounts related to such potential future costs have been accrued as of June 30, 2018. During the period from the fourth quarter of 2015 through the first quarter of 2016, the Company received communications from Wintergreen Advisers, LLC (“Wintergreen”), some of which have been filed publicly. In investigating Wintergreen’s allegations contained in certain of these communications, in pursuing the strategic alternatives process suggested by Wintergreen, and in engaging in a proxy contest in 2017, the Company has incurred costs of approximately $3.0 million through December 31, 2017. Approximately $1.6 million of the approximately $3.0 million was incurred during the year ended December 31, 2017, of which approximately $1.2 million is specifically for legal representation and third-party costs related to the proxy contest. In addition to the costs incurred through December 31, 2017, during the six months ended June 30, 2018, the Company incurred approximately $944,000, which includes legal representation and third-party costs arising from shareholder-related matters, including the proxy contest in 2018. None of Wintergreen’s allegations, which included allegations regarding inadequate disclosure and other wrong-doing by the Company and its directors and officers, were found to have any basis or merit. |
BUSINESS SEGMENT DATA
BUSINESS SEGMENT DATA | 6 Months Ended |
Jun. 30, 2018 | |
BUSINESS SEGMENT DATA | |
BUSINESS SEGMENT DATA | NOTE 20. BUSINESS SEGMENT DATA The Company operates in four primary business segments: income properties, commercial loan investments, real estate operations, and golf operations. Our income property operations consist primarily of income-producing properties, and our business plan is focused on investing in additional income-producing properties. Our income property operations accounted for 87.5% and 83.4% of our identifiable assets as of June 30, 2018 and December 31, 2017, respectively, and 49.1% and 23.8% of our consolidated revenues for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, we have one commercial loan investment, a fixed-rate first mortgage loan. Our real estate operations primarily consist of revenues generated from land transactions and leasing, royalty income, and revenue from the release of surface entry rights from our Subsurface Interests. Our golf operations consist of a single property located in Daytona Beach, Florida, with two 18-hole championship golf courses, a practice facility, and clubhouse facilities, including a restaurant and bar operation, fitness facility, and pro-shop with retail merchandise. The majority of the revenues generated by our golf operations are derived from members and public customers playing golf, club memberships, and food and beverage operations. The Company reports performance based on profit or loss from operations before income taxes. The Company’s reportable segments are strategic business units that offer different products. They are managed separately because each segment requires different management techniques, knowledge, and skills. Information about the Company’s operations in the different segments for the three and six months ended June 30, 2018 and 2017 is as follows: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Revenues: Income Properties $ 9,781,299 $ 7,565,007 $ 18,987,026 $ 14,638,247 Commercial Loan Investments 273,467 553,159 574,466 1,089,648 Real Estate Operations 2,484,314 13,257,355 16,463,644 42,731,815 Golf Operations 1,282,918 1,383,513 2,637,274 2,858,457 Agriculture and Other Income 11,187 78,749 22,374 232,900 Total Revenues $ 13,833,185 $ 22,837,783 $ 38,684,784 $ 61,551,067 Operating Income: Income Properties $ 7,746,410 $ 5,935,492 $ 15,083,108 $ 11,597,019 Commercial Loan Investments 273,467 553,159 574,466 1,089,648 Real Estate Operations 1,614,044 7,464,826 14,057,712 27,782,437 Golf Operations (242,135) (18,406) (269,604) (42,140) Agriculture and Other Income 6,015 48,213 12,030 161,927 General and Corporate Expense (6,284,119) (5,942,877) (13,008,046) (11,925,599) Other Gains and Income 18,384,808 — 22,035,666 2,226,526 Total Operating Income $ 21,498,490 $ 8,040,407 $ 38,485,332 $ 30,889,818 Depreciation and Amortization: Income Properties $ 3,746,762 $ 3,108,494 $ 7,534,177 $ 5,794,806 Golf Operations 99,393 95,323 202,949 160,690 Agriculture and Other 8,783 11,873 18,191 22,769 Total Depreciation and Amortization $ 3,854,938 $ 3,215,690 $ 7,755,317 $ 5,978,265 Capital Expenditures: Income Properties $ 969,326 $ 22,748,812 $ 28,884,588 $ 44,686,344 Real Estate Operations 1,393,811 — 3,505,794 — Golf Operations 22,217 266,758 24,880 1,874,500 Agriculture and Other 10,785 38,945 11,338 51,028 Total Capital Expenditures $ 2,396,139 $ 23,054,515 $ 32,426,600 $ 46,611,872 As of June 30, 2018 December 31, 2017 Identifiable Assets: Income Properties $ 420,261,037 $ 388,602,721 Commercial Loan Investments 2,994,916 11,963,777 Real Estate Operations 41,388,054 43,296,528 Golf Operations 5,709,161 6,262,634 Agriculture and Other 10,196,478 16,004,718 Total Assets $ 480,549,646 $ 466,130,378 Operating income represents income from continuing operations before loss on early extinguishment of debt, interest expense, investment income, and income taxes. General and corporate expenses are an aggregate of general and administrative expenses, impairment charges, and depreciation and amortization expense. Other gains and income consist of land lease termination income and gains (losses) on the disposition of assets. Identifiable assets by segment are those assets that are used in the Company’s operations in each segment. Other assets consist primarily of cash, property, plant, and equipment related to the other operations, as well as the general and corporate operations. |
DESCRIPTION OF BUSINESS AND P31
DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS | |
Interim Financial Information | Interim Financial Information The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). These unaudited consolidated financial statements do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, which provides a more complete understanding of the Company’s accounting policies, financial position, operating results, business properties, and other matters. The unaudited consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the financial position of the Company and the results of operations for the interim periods. The results of operations for the six months ended June 30, 2018 are not necessarily indicative of results to be expected for the year ending December 31, 2018. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and other entities in which we have a controlling interest. Any real estate entities or properties included in the consolidated financial statements have been consolidated only for the periods that such entities or properties were owned or under control by us. All inter-company balances and transactions have been eliminated in the consolidated financial statements. |
Use of Estimates in Preparation of Financial Statements | Use of Estimates in Preparation of Financial Statements The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which amends its guidance on the recognition and reporting of revenue from contracts with customers. In April 2016, the FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers was issued. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company completed its evaluation of the provisions during the year ended December 31, 2017 and determined there was no impact on the Company’s revenue recognition within the consolidated financial statements. All required disclosures relating to FASB ASC Topic 606 have been implemented herein as required by the standard. The Company adopted FASB ASC Topic 606 effective January 1, 2018 utilizing the modified retrospective method. In January 2016, the FASB issued ASU 2016-01, relating to the recognition and measurement of financial assets and financial liabilities. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2016-01 effective January 1, 2018 and determined there was no material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, which requires entities to recognize assets and liabilities that arise from financing and operating leases and to classify those finance and operating lease payments in the financing or operating sections, respectively, of the statement of cash flows pursuant to FASB ASC Topic 842, Leases . The amendments in this update are effective for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating FASB ASC Topic 842, Leases to determine the potential impact, if any, the adoption will have on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, which clarifies the appropriate classification of certain cash receipts and payments in the statement of cash flows. The amendments in this update are effective for annual reporting periods beginning after December 15, 2017. The Company adopted ASU 2016-15 effective January 1, 2018 and determined there was no material impact on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, which addresses diversity in the classification and presentation of changes in restricted cash in the statement of cash flows as operating, investing, or financing activities. The Company adopted ASU 2016-18 effective January 1, 2018 and has classified the changes in restricted cash between operating, investing, and financing in the consolidated statements of cash flows as applicable per the new guidance. In February 2018, the FASB issued ASU 2018-02, which amends the guidance allowing for a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this update are effective for annual reporting periods beginning after December 15, 2018. The Company is currently evaluating the provisions to determine the potential impact, if any, the adoption will have on its consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, bank demand accounts, and money market accounts having original maturities of 90 days or less. The Company’s bank balances as of June 30, 2018 include certain amounts over the Federal Deposit Insurance Corporation limits. |
Restricted Cash | Restricted Cash Restricted cash totaled approximately $2.4 million at June 30, 2018 of which approximately $1.2 million is being held in three separate escrow accounts related to three separate land transactions which closed in December 2013, February 2017, and March 2018; approximately $127,000 is being held in a reserve for interest and property taxes for the $3.0 million first mortgage loan investment originated in July 2017; approximately $185,000 is being held in a capital replacement reserve account in connection with our financing of six income properties with Wells Fargo Bank, NA (“Wells Fargo”); and approximately $918,000 is being held in a leasing reserve in connection with our acquisition of the property in Aspen, Colorado in February 2018. |
Derivative Financial Instruments and Hedging Activity | Derivative Financial Instruments and Hedging Activity Interest Rate Swap. In conjunction with the variable-rate mortgage loan secured by our property located in Raleigh, North Carolina leased to Wells Fargo, the Company entered into an interest rate swap to fix the interest rate (the “Interest Rate Swap”). The Company accounts for its cash flow hedging derivative in accordance with FASB ASC Topic 815-20, Derivatives and Hedging . Depending upon the hedge’s value at each balance sheet date, the derivative is included in either Other Assets or Accrued and Other Liabilities on the consolidated balance sheet at its fair value. On the date the Interest Rate Swap was entered into, the Company designated the derivative as a hedge of the variability of cash flows to be paid related to the recognized long-term debt liability. The Company formally documented the relationship between the hedging instrument and the hedged item, as well as its risk-management objective and strategy for undertaking the hedge transaction. At the hedge’s inception, the Company formally assessed whether the derivative that is used in hedging the transaction is highly effective in offsetting changes in cash flows of the hedged item, and we will continue to do so on an ongoing basis. As the terms of the Interest Rate Swap and the associated debt are identical, the Interest Rate Swap qualifies for the shortcut method, therefore, it is assumed that there is no hedge ineffectiveness throughout the entire term of the Interest Rate Swap. Changes in fair value of the Interest Rate Swap that are highly effective and designated and qualified as a cash-flow hedge are recorded in other comprehensive income and loss, until earnings are affected by the variability in cash flows of the designated hedged item. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of the Company’s financial assets and liabilities including cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and accrued and other liabilities at June 30, 2018 and December 31, 2017, approximate fair value because of the short maturity of these instruments. The carrying amount of the Company’s investments in variable rate commercial loans approximates fair value at December 31, 2017, since the floating rates of the loans reasonably approximate current market rates for notes with similar risks and maturities. There were no investments in variable rate commercial loans as of June 30, 2018. The carrying value of the Company’s credit facility approximates current market rates for revolving credit arrangements with similar risks and maturities. The face value of the Company’s fixed rate commercial loan investment, mortgage notes, and convertible debt is measured at fair value based on current market rates for financial instruments with similar risks and maturities. See Note 7, “Fair Value of Financial Instruments.” |
Fair Value Measurements | Fair Value Measurements The Company’s estimates of fair value of financial and non-financial assets and liabilities is based on the framework established by GAAP. The framework specifies a hierarchy of valuation inputs which was established to increase consistency, clarity and comparability in fair value measurements and related disclosures. GAAP describes a fair value hierarchy based upon three levels of inputs that may be used to measure fair value, two of which are considered observable and one that is considered unobservable. The following describes the three levels: · Level 1 – Valuation is based upon quoted prices in active markets for identical assets or liabilities. · Level 2 – Valuation is based upon inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include option pricing models, discounted cash flow models and similar techniques. |
Classification of Commercial Loan Investments | Classification of Commercial Loan Investments Loans held for investment are stated at the principal amount outstanding and include the unamortized deferred loan fees offset by any applicable unaccreted purchase discounts and origination fees, if applicable. Loans held for sale are classified separately and stated at the lower of cost or fair value once a decision has been made to sell loans not previously for sale. |
Commercial Loan Investment Impairment | Commercial Loan Investment Impairment For each of the Company’s commercial loans held for investment, the Company evaluates the performance of the collateral property and the financial and operating capabilities of the borrower/guarantor, in part to assess whether any deterioration in the credit has occurred, and for possible impairment of the loan. Impairment would reflect the Company’s determination that it is probable that all amounts due according to the contractual terms of the loan would not be collected. Impairment is measured based on the present value of the expected future cash flows from the loan discounted at the effective rate of the loan or the fair value of the collateral. Upon measurement of impairment, the Company would record an allowance to reduce the carrying value of the loan with a corresponding recognition of loss in the results of operations. Significant exercise of judgment is required in determining impairment, including assumptions regarding the estimate of expected future cash flows, collectability of the loan, the value of the underlying collateral and other provisions including guarantees. The Company has determined that, as of June 30, 2018 and December 31, 2017, no allowance for impairment was required. |
Recognition of Interest Income from Commercial Loan Investments | Recognition of Interest Income from Commercial Loan Investments Interest income on commercial loan investments includes interest payments made by the borrower and the accretion of purchase discounts and loan origination fees, offset by the amortization of loan costs. Interest payments are accrued based on the actual coupon rate and the outstanding principal balance, and purchase discounts and loan origination fees are accreted into income using the effective yield method, adjusted for prepayments. |
Impact Fees and Mitigation Credits | Impact Fees and Mitigation Credits Impact fees and mitigation credits are stated at historical cost. As these assets are sold, the related revenues and cost basis are reported as revenues from, and direct costs of, real estate operations, respectively, in the consolidated statements of operations. |
Accounts Receivable | Accounts Receivable Accounts receivable related to income properties, which are classified in other assets on the consolidated balance sheets, primarily consist of tenant reimbursable expenses. Receivables related to tenant reimbursable expenses totaled approximately $1.3 million and $895,000 as of June 30, 2018 and December 31, 2017, respectively. Accounts receivable related to real estate operations, which are classified in other assets on the consolidated balance sheets, totaled approximately $2.1 million and $2.2 million as of as of June 30, 2018 and December 31, 2017, respectively. As more fully described in Note 10, “Other Assets,” these accounts receivable are primarily related to the reimbursement of certain infrastructure costs completed by the Company in conjunction with two land sale transactions that closed during the fourth quarter of 2015. Trade accounts receivable primarily consist of receivables related to the golf operations, which are classified in other assets on the consolidated balance sheets. Trade accounts receivable related to golf operations, which primarily consist of amounts due from members or from private events, totaled approximately $287,000 and $349,000 as of June 30, 2018 and December 31, 2017, respectively. The collectability of the aforementioned receivables is determined based on the aging of the receivable and a review of the specifically identified accounts using judgments. As of June 30, 2018 and December 31, 2017, no allowance for doubtful accounts was required. |
Purchase Accounting for Acquisitions of Real Estate Subject to a Lease | Purchase Accounting for Acquisitions of Real Estate Subject to a Lease In accordance with the FASB guidance on business combinations, the fair value of the real estate acquired with in-place leases is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, the value of in-place leases, and the value of leasing costs, based in each case on their relative fair values. The fair value of the tangible assets of an acquired leased property is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land, building and tenant improvements based on the determination of the fair values of these assets. In allocating the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded as other assets or liabilities based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases, and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease, including the probability of renewal periods. The capitalized above-market lease values are amortized as a reduction of rental income over the remaining terms of the respective leases. The capitalized below-market lease values are amortized as an increase to rental income over the initial term unless the Company believes that it is likely that the tenant will renew the option whereby the Company amortizes the value attributable to the renewal over the renewal period. The aggregate value of other acquired intangible assets, consisting of in-place leases, is measured by the excess of (i) the purchase price paid for a property after adjusting existing in-place leases to market rental rates over (ii) the estimated fair value of the property as-if-vacant, determined as set forth above. The value of in-place leases exclusive of the value of above-market and below-market in-place leases is amortized to expense over the remaining non-cancelable periods of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts relating to that lease would be written off. The value of tenant relationships is reviewed on individual transactions to determine if future value was derived from the acquisition. In January 2017, the FASB issued ASU 2017-01, Business Combinations which clarified the definition of a business. Pursuant to ASU 2017-01, the acquisition of an income property subject to a lease no longer qualifies as a business combination, but rather an asset acquisition, accordingly acquisition costs have been capitalized. |
Sales of Real Estate | Sales of Real Estate Gains and losses on sales of real estate are accounted for as required by FASB ASC Topic 606, Revenue from Contracts with Customers . The Company recognizes revenue from the sales of real estate when the Company transfers the promised goods and/or services in the contract based on the transaction price allocated to the performance obligations within the contract. As market information becomes available, real estate cost basis is analyzed and recorded at the lower of cost or market. |
Income Taxes | Income Taxes The Company uses the asset and liability method to account for income taxes. Deferred income taxes result primarily from the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. See Note 18, “Income Taxes.” In June 2006, the FASB issued additional guidance, which clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements included in income taxes. The interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The interpretation also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. In accordance with FASB guidance included in income taxes, the Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. Additionally, the Company believes that its accruals for tax liabilities are adequate. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to the FASB guidance. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
REVENUE RECOGNITION | |
Summary of revenue by segment, major good and/or service, and the related timing of revenue recognition | The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the three months ended June 30, 2018: Interest Income Income from Commercial Real Estate Golf Agriculture and Total Properties Loan Investments Operations Operations Other Income Revenues ($000's) ($000's) ($000's) ($000's) ($000's) ($000's) Major Good / Service: Lease Revenue - Base Rent $ 7,365 $ — $ — $ — $ 11 $ 7,376 Lease Revenue - CAM 891 — — — — 891 Lease Revenue - Reimbursements 801 — — — — 801 Lease Revenue - Billboards 70 — — — — 70 Above / Below Market Lease Accretion 600 — — — — 600 Contributed Leased Assets Accretion 85 — — — — 85 Lease Incentive Amortization (76) — — — — (76) Interest from Commercial Loan Investments — 274 — — — 274 Land Sale Revenue — — 1,734 — — 1,734 Impact Fee and Mitigation Credit Sales — — 470 — — 470 Subsurface Lease Revenue — — 201 — — 201 Subsurface Revenue - Other — — 79 — — 79 Golf Operations — — — 1,283 — 1,283 Interest and Other Revenue 45 — — — — 45 Total Revenues $ 9,781 $ 274 $ 2,484 $ 1,283 $ 11 $ 13,833 Timing of Revenue Recognition: Asset/Good Transferred at a Point in Time $ — $ — $ 2,283 $ 1,041 $ — $ 3,324 Services Transferred Over Time 45 — — 242 — 287 Over Lease Term 9,736 — 201 — 11 9,948 Commercial Loan Investment Related Revenue — 274 — — — 274 Total Revenues $ 9,781 $ 274 $ 2,484 $ 1,283 $ 11 $ 13,833 The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the three months ended June 30, 2017: Interest Income Income from Commercial Real Estate Golf Agriculture and Total Properties Loan Investments Operations Operations Other Income Revenues ($000's) ($000's) ($000's) ($000's) ($000's) ($000's) Major Good / Service: Lease Revenue - Base Rent $ 6,114 $ — $ — $ — $ 11 $ 6,125 Lease Revenue - CAM 466 — — — — 466 Lease Revenue - Reimbursements 371 — — — — 371 Lease Revenue - Billboards 65 — — — — 65 Above / Below Market Lease Accretion 550 — — — — 550 Interest from Commercial Loan Investments — 553 — — — 553 Land Sale Revenue — — 10,858 — — 10,858 Revenue from Reimbursement of Infrastructure Costs — — 955 — — 955 Impact Fee and Mitigation Credit Sales — — 1,222 — — 1,222 Subsurface Lease Revenue — — 201 — — 201 Subsurface Revenue - Other — — 21 — — 21 Golf Operations — — — 1,384 — 1,384 Timber Sales Revenue — — — — 68 68 Interest and Other Revenue (1) — — — — (1) Total Revenues $ 7,565 $ 553 $ 13,257 $ 1,384 $ 79 $ 22,838 Timing of Revenue Recognition: Asset/Good Transferred at a Point in Time $ — $ — $ 12,101 $ 1,316 $ 68 $ 13,485 Services Transferred Over Time (1) — 955 68 — 1,022 Over Lease Term 7,566 — 201 — 11 7,778 Commercial Loan Investment Related Revenue — 553 — — — 553 Total Revenues $ 7,565 $ 553 $ 13,257 $ 1,384 $ 79 $ 22,838 The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the six months ended June 30, 2018: Interest Income Income from Commercial Real Estate Golf Agriculture and Total Properties Loan Investments Operations Operations Other Income Revenues ($000's) ($000's) ($000's) ($000's) ($000's) ($000's) Major Good / Service: Lease Revenue - Base Rent $ 14,787 $ — $ — $ — $ 22 $ 14,809 Lease Revenue - CAM 1,505 — — — — 1,505 Lease Revenue - Reimbursements 1,365 — — — — 1,365 Lease Revenue - Billboards 134 — — — — 134 Above / Below Market Lease Accretion 1,179 — — — — 1,179 Contributed Leased Assets Accretion 95 — — — — 95 Lease Incentive Amortization (151) — — — — (151) Interest from Commercial Loan Investments — 575 — — — 575 Land Sale Revenue — — 14,851 — — 14,851 Impact Fee and Mitigation Credit Sales — — 586 — — 586 Subsurface Lease Revenue — — 400 — — 400 Subsurface Revenue - Other — — 626 — — 626 Golf Operations — — — 2,638 — 2,638 Interest and Other Revenue 73 — — — — 73 Total Revenues $ 18,987 $ 575 $ 16,463 $ 2,638 $ 22 $ 38,685 Timing of Revenue Recognition: Asset/Good Transferred at a Point in Time $ — $ — $ 16,063 $ 2,136 $ — $ 18,199 Services Transferred Over Time 73 — — 502 — 575 Over Lease Term 18,914 — 400 — 22 19,336 Commercial Loan Investment Related Revenue — 575 — — — 575 Total Revenues $ 18,987 $ 575 $ 16,463 $ 2,638 $ 22 $ 38,685 The following table summarizes the Company’s revenue by segment, major good and/or service, and the related timing of revenue recognition for the six months ended June 30, 2017: Interest Income Income from Commercial Real Estate Golf Agriculture and Total Properties Loan Investments Operations Operations Other Income Revenues ($000's) ($000's) ($000's) ($000's) ($000's) ($000's) Major Good / Service: Lease Revenue - Base Rent $ 11,668 $ — $ — $ — $ 22 $ 11,690 Lease Revenue - CAM 965 — — — — 965 Lease Revenue - Reimbursements 791 — — — — 791 Lease Revenue - Billboards 126 — — — — 126 Above / Below Market Lease Accretion 1,081 — — — — 1,081 Interest from Commercial Loan Investments — 1,090 — — — 1,090 Land Sale Revenue — — 39,564 — — 39,564 Revenue from Reimbursement of Infrastructure Costs — — 1,276 — — 1,276 Impact Fee and Mitigation Credit Sales — — 1,439 — — 1,439 Subsurface Lease Revenue — — 400 — — 400 Subsurface Revenue - Other — — 53 — — 53 Golf Operations — — — 2,858 — 2,858 Timber Sales Revenue — — — — 211 211 Interest and Other Revenue 7 — — — — 7 Total Revenues $ 14,638 $ 1,090 $ 42,732 $ 2,858 $ 233 $ 61,551 Timing of Revenue Recognition: Asset/Good Transferred at a Point in Time $ — $ — $ 41,056 $ 2,647 $ 211 $ 43,914 Services Transferred Over Time 7 — 1,276 211 — 1,494 Over Lease Term 14,631 — 400 — 22 15,053 Commercial Loan Investment Related Revenue — 1,090 — — — 1,090 Total Revenues $ 14,638 $ 1,090 $ 42,732 $ 2,858 $ 233 $ 61,551 |
INCOME PROPERTIES (Tables)
INCOME PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
INCOME PROPERTIES | |
Schedule of income properties acquired | Tenant Description Tenant Type Property Location Date of Acquisition Property Square-Feet Property Acres Purchase Price Percentage Leased Remaining Lease Term (in years) Master Tenant for Commercial Building Single-Tenant Aspen, Colorado 02/21/18 19,596 0.18 $ 28,000,000 20.0 |
COMMERCIAL LOAN INVESTMENTS (Ta
COMMERCIAL LOAN INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
COMMERCIAL LOAN INVESTMENTS | |
Schedule of components of commercial loan investment portfolio | The Company’s commercial loan investment was comprised of the following at June 30, 2018: Date of Maturity Original Face Current Face Carrying Description Investment Date Amount Amount Value Coupon Rate First Mortgage – Land Parcel, Daytona Beach Shores, FL July 2017 August 2018 3,000,000 3,000,000 2,994,916 11.00% The carrying value of the commercial loan investment portfolio at June 30, 2018 consisted of the following: Total Current Face Amount $ 3,000,000 Unamortized Fees — Unaccreted Origination Fees (5,084) Total Commercial Loan Investments $ 2,994,916 The Company’s commercial loan investment portfolio was comprised of the following at December 31, 2017: Date of Maturity Original Face Current Face Carrying Description Investment Date Amount Amount Value Coupon Rate B-Note – Retail Shopping Center, Sarasota, FL May 2014 June 2018 $ 8,960,467 $ 8,960,467 $ 8,960,467 30 ‑day LIBOR First Mortgage – Land Parcel, Daytona Beach Shores, FL July 2017 August 2018 3,000,000 3,000,000 2,965,232 11.00% Total $ 11,960,467 $ 11,960,467 $ 11,925,699 The carrying value of the commercial loan investment portfolio at December 31, 2017 consisted of the following: Total Current Face Amount $ 11,960,467 Unamortized Fees — Unaccreted Origination Fees (34,768) Total Commercial Loan Investments $ 11,925,699 |
LAND AND SUBSURFACE INTERESTS (
LAND AND SUBSURFACE INTERESTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
LAND AND SUBSURFACE INTERESTS | |
Schedule of components of real estate operations revenue | Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Revenue Description ($000's) ($000's) ($000's) ($000's) Land Sales Revenue $ 1,734 $ 10,858 $ 14,851 $ 39,564 Revenue from Reimbursement of Infrastructure Costs — 955 — 1,276 Impact Fee and Mitigation Credit Sales 470 1,222 586 1,439 Subsurface Revenue 280 222 1,026 453 Total Real Estate Operations Revenue $ 2,484 $ 13,257 $ 16,463 $ 42,732 |
Schedule of lease payments on respective acreages and drilling penalties received | Acreage Lease Year (Approximate) Florida County Lease Payment (1) Drilling Penalty (1) Lease Year 1 - 9/23/2011 - 9/22/2012 136,000 Lee and Hendry $ 913,657 $ — Lease Year 2 - 9/23/2012 - 9/22/2013 136,000 Lee and Hendry 922,114 — Lease Year 3 - 9/23/2013 - 9/22/2014 82,000 Hendry 3,293,000 1,000,000 Lease Year 4 - 9/23/2014 - 9/22/2015 42,000 Hendry 1,866,146 600,000 Lease Year 5 - 9/23/2015 - 9/22/2016 25,000 Hendry 1,218,838 175,000 Lease Year 6 - 9/23/2016 - 9/22/2017 15,000 Hendry 806,683 150,000 Lease Year 7 - 9/23/2017 - 9/22/2018 15,000 Hendry 806,683 50,000 Total Payments Received to Date $ 9,827,121 $ 1,975,000 (1) Generally, cash payment for the Lease Payment and Drilling Penalty is received on or before the first day of the lease year. The Drilling Penalty, which is due within thirty days from the end of the prior lease year, is recorded as revenue when received, while the Lease Payment is recognized on a straight-line basis over the respective lease term. Pursuant to the amendment for the Year 7 renewal, the Lease Payment and Drilling Penalty were both received on October 11, 2017. See separate disclosure of revenue recognized per period below. |
INVESTMENT IN JOINT VENTURE (Ta
INVESTMENT IN JOINT VENTURE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
INVESTMENT IN JOINT VENTURE | |
Summarized financial information of the Company’s JV Investment | As of June 30, 2018 ($000's) Assets, cash and cash equivalents $ 2,409 Assets, investment in mitigation credit assets 1,424 Total Assets $ 3,833 Equity $ 3,833 |
FAIR VALUE OF FINANCIAL INSTR37
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | |
Schedule of carrying value and estimated fair value of financial instruments | June 30, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Value Fair Value Value Fair Value Cash and Cash Equivalents - Level 1 $ 4,312,324 $ 4,312,324 $ 6,559,409 $ 6,559,409 Restricted Cash - Level 1 2,419,686 2,419,686 6,508,131 6,508,131 Commercial Loan Investments - Level 2 2,994,916 3,031,501 11,925,699 12,015,628 Long-Term Debt - Level 2 177,133,608 179,596,049 195,816,364 200,000,776 |
Schedule of fair value of assets measured on recurring basis by Level | The following table presents the fair value of assets measured on a recurring basis by Level as of June 30, 2018: Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets Significant Other Unobservable for Identical Observable Inputs Inputs 6/30/2018 Assets (Level 1) (Level 2) (Level 3) Cash Flow Hedge - Interest Rate Swap $ 912,767 $ — $ 912,767 $ — Total $ 912,767 $ — $ 912,767 $ — The following table presents the fair value of assets measured on a recurring basis by Level as of December 31, 2017: Fair Value at Reporting Date Using Quoted Prices in Significant Active Markets Significant Other Unobservable for Identical Observable Inputs Inputs 12/31/2017 Assets (Level 1) (Level 2) (Level 3) Cash Flow Hedge - Interest Rate Swap $ 606,621 $ — $ 606,621 $ — Total $ 606,621 $ — $ 606,621 $ — |
INTANGIBLE LEASE ASSETS AND L38
INTANGIBLE LEASE ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
INTANGIBLE LEASE ASSETS AND LIABILITIES | |
Schedule of components of intangible lease assets and liabilities | As of June 30, 2018 December 31, 2017 Intangible Lease Assets: Value of In-Place Leases $ 38,046,241 $ 36,827,226 Value of Above Market In-Place Leases 2,966,322 2,966,322 Value of Intangible Leasing Costs 12,004,653 10,405,135 Sub-total Intangible Lease Assets 53,017,216 50,198,683 Accumulated Amortization (14,411,170) (11,440,624) Sub-total Intangible Lease Assets—Net 38,606,046 38,758,059 Intangible Lease Liabilities (included in accrued and other liabilities): Value of Below Market In-Place Leases (36,109,518) (35,312,017) Sub-total Intangible Lease Liabilities (36,109,518) (35,312,017) Accumulated Amortization 6,969,983 5,541,576 Sub-total Intangible Lease Liabilities—Net (29,139,535) (29,770,441) Total Intangible Assets and Liabilities—Net $ 9,466,511 $ 8,987,618 |
Schedule of amortization of intangible assets and liabilities | Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, ($000's) ($000's) ($000's) ($000's) Depreciation and Amortization Expense $ 1,368 $ 1,189 $ 2,721 $ 2,277 Increase to Income Properties Revenue (600) (550) (1,179) (1,081) Net Amortization of Intangible Assets and Liabilities $ 768 $ 639 $ 1,542 $ 1,196 |
Schedule of estimated future amortization and accretion of intangible lease assets and liabilities | Future Accretion Net Future Future to Income Amortization of Amortization Property Intangible Assets Year Ending December 31, Amount Revenue and Liabilities Remainder of 2018 $ 2,916,475 $ (1,182,672) $ 1,733,803 2019 5,452,670 (2,394,193) 3,058,477 2020 5,011,249 (2,327,464) 2,683,785 2021 3,320,813 (2,478,319) 842,494 2022 2,702,885 (2,549,480) 153,405 2023 2,359,734 (2,557,950) (198,216) Thereafter 14,985,245 (13,792,482) 1,192,763 Total $ 36,749,071 $ (27,282,560) $ 9,466,511 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
OTHER ASSETS | |
Schedule of components of other assets | As of June 30, 2018 December 31, Income Property Tenant Receivables $ 1,318,042 $ 895,476 Income Property Straight-line Rent Adjustment 3,439,530 2,517,195 Income Property Lease Incentive 2,545,461 2,696,678 Interest Receivable from Commercial Loan Investments — 38,078 Cash Flow Hedge - Interest Rate Swap 912,767 606,621 Infrastructure Reimbursement Receivables 2,117,840 2,213,305 Golf Operations Receivables 286,995 349,220 Deferred Deal Costs 471,966 480,257 Prepaid Expenses, Deposits, and Other 2,882,784 3,174,299 Total Other Assets $ 13,975,385 $ 12,971,129 |
COMMON STOCK AND EARNINGS PER40
COMMON STOCK AND EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
COMMON STOCK AND EARNINGS PER SHARE | |
Schedule of computation of earnings per share | Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Income Available to Common Shareholders: Net Income $ 14,162,908 $ 3,678,908 $ 25,075,207 $ 16,425,300 Weighted Average Shares Outstanding 5,529,360 5,531,444 5,530,108 5,566,595 Common Shares Applicable to Stock Options Using the Treasury Stock Method — 14,008 31,683 16,463 Total Shares Applicable to Diluted Earnings Per Share 5,529,360 5,545,452 5,561,791 5,583,058 Per Share Information: Basic Net Income $ 2.56 $ 0.67 $ 4.53 $ 2.95 Diluted Net Income $ 2.56 $ 0.66 $ 4.51 $ 2.94 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
LONG-TERM DEBT | |
Schedule of outstanding indebtedness, at face value | As of June 30, 2018, the Company’s outstanding indebtedness, at face value, was as follows: Face Maturity Interest Value Debt Date Rate Credit Facility $ 50,745,579 September 2021 30 ‑day LIBOR Mortgage Note Payable (originated with Wells Fargo) (1) 30,000,000 October 2034 4.330% Mortgage Note Payable (originated with Wells Fargo) (2) 24,886,938 April 2021 30 ‑day LIBOR 4.50% Convertible Senior Notes due 2020, net of discount 75,000,000 March 2020 4.500% Total Long-Term Face Value Debt $ 180,632,517 (1) Secured by the Company’s interest in six income properties. The mortgage loan carries a fixed rate of 4.33% per annum during the first ten years of the term, and requires payments of interest only during the first ten years of the loan. After the tenth anniversary of the effective date of the loan, the cash flows, as defined in the related loan agreement, generated by the underlying six income properties must be used to pay down the principal balance of the loan until paid off or until the loan matures. The loan is fully pre-payable after the tenth anniversary of the effective date of the loan. (2) Secured by the Company’s income property leased to Wells Fargo located in Raleigh, North Carolina. The mortgage loan has a 5-year term with two years interest only, and interest and a 25-year amortization for the balance of the term. The mortgage loan bears a variable rate of interest based on the 30-day LIBOR plus a rate of 190 basis points. The interest rate for this mortgage loan has been fixed through the use of an interest rate swap that fixed the rate at 3.17%. The mortgage loan can be prepaid at any time subject to the termination of the interest rate swap. |
Schedule of components of long-term debt | June 30, 2018 December 31, 2017 Due Within Due Within Total One Year Total One Year Credit Facility $ 50,745,579 $ — $ 70,000,000 $ — Mortgage Note Payable (originated with Wells Fargo) 30,000,000 — 30,000,000 — Mortgage Note Payable (originated with Wells Fargo) 24,886,938 — 25,000,000 — 4.50% Convertible Senior Notes due 2020, net of discount 72,701,857 — 72,075,295 — Loan Costs, net of accumulated amortization (1,200,766) — (1,258,931) — Total Long-Term Debt $ 177,133,608 $ — $ 195,816,364 $ — |
Schedule of payments applicable to reduction of principal amounts | Payments applicable to reduction of principal amounts as of June 30, 2018 will be required as follows: Year Ending December 31, Amount 2019 $ — 2020 75,000,000 2021 75,632,517 2022 — 2023 — Thereafter 30,000,000 Total Long-Term Debt - Face Value $ 180,632,517 |
Schedule of carrying value of long-term debt | The carrying value of long-term debt as of June 30, 2018 consisted of the following: Total Current Face Amount $ 180,632,517 Unamortized Discount on Convertible Debt (2,298,143) Loan Costs, net of accumulated amortization (1,200,766) Total Long-Term Debt $ 177,133,608 |
Schedule of interest expense on debt | The following table reflects a summary of interest expense incurred and paid during the three and six months ended June 30, 2018 and 2017: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, ($000's) ($000's) ($000's) ($000's) Interest Expense $ 2,085 $ 1,736 $ 4,185 $ 3,393 Amortization of Loan Costs 137 112 287 225 Amortization of Discount on Convertible Notes 316 296 627 588 Total Interest Expense $ 2,538 $ 2,144 $ 5,099 $ 4,206 Total Interest Paid $ 1,291 $ 887 $ 4,190 $ 3,438 |
ACCRUED AND OTHER LIABILITIES (
ACCRUED AND OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
ACCRUED AND OTHER LIABILITIES | |
Schedule of components of accrued and other liabilities | As of June 30, 2018 December 31, Golf $1 Round Surcharge $ 630,000 $ 700,000 Accrued Property Taxes 1,372,678 66,909 Tenant Leasing Reserve Escrow 917,748 — Reserve for Tenant Improvements 136,157 3,302,831 Accrued Construction Costs 190,998 1,360,950 Accrued Interest 1,189,668 1,194,681 Environmental Reserve and Restoration Cost Accrual 572,197 866,936 Other 2,829,020 2,668,219 Total Accrued and Other Liabilities $ 7,838,466 $ 10,160,526 |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
DEFERRED REVENUE | |
Schedule of components of deferred revenue | As of June 30, 2018 December 31, Deferred Oil Exploration Lease Revenue $ 185,648 $ 585,675 Deferred Revenue on Land Sales 846,545 — Prepaid Rent 1,079,747 1,126,408 Tenant Contributions 4,227,953 — Other Deferred Revenue 528,772 318,376 Total Deferred Revenue $ 6,868,665 $ 2,030,459 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
STOCK-BASED COMPENSATION | |
Summary of share activity for all equity and liability classified stock compensation | A summary of share activity for all equity classified stock compensation during the six months ended June 30, 2018, is presented below: Shares Vested / Shares Outstanding Granted Exercised Expired Forfeited Outstanding Type of Award at 1/1/2018 Shares Shares Shares Shares at 6/30/2018 Equity Classified - Performance Share Awards - Peer Group Market Condition Vesting 12,635 15,445 — — — 28,080 Equity Classified - Market Condition Restricted Shares - Stock Price Vesting 29,750 — (7,750) — — 22,000 Equity Classified - Three Year Vest Restricted Shares 37,390 17,712 (18,883) — — 36,219 Equity Classified - Non-Qualified Stock Option Awards 90,000 — — — — 90,000 Total Shares 169,775 33,157 (26,633) — — 176,299 |
Schedule of amounts recognized for stock options, stock appreciation rights, and restricted stock | Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Total Cost of Share-Based Plans Charged Against Income Before Tax Effect $ 430,054 $ 389,585 $ 897,325 $ 743,164 Income Tax Expense Recognized in Income $ (108,997) $ (150,283) $ (227,427) $ (286,676) |
Peer Group Market Condition Vesting | |
STOCK-BASED COMPENSATION | |
Summary of performance share awards activity | A summary of activity during the six months ended June 30, 2018, is presented below: Wtd. Avg. Performance Shares with Market Conditions Shares Fair Value Outstanding at January 1, 2018 12,635 $ 55.66 Granted 15,445 74.99 Vested — — Expired — — Forfeited — — Outstanding at June 30, 2018 28,080 $ 66.29 |
Stock Price Vesting | |
STOCK-BASED COMPENSATION | |
Summary of nonvested restricted stock award activity | A summary of the activity for these awards during the six months ended June 30, 2018, is presented below: Wtd. Avg. Market Condition Non-Vested Restricted Shares Shares Fair Value Outstanding at January 1, 2018 29,750 $ 39.07 Granted — — Vested (7,750) 31.58 Expired — — Forfeited — — Outstanding at June 30, 2018 22,000 $ 41.71 |
Three-Year Vesting | |
STOCK-BASED COMPENSATION | |
Summary of nonvested restricted stock award activity | A summary of activity during the six months ended June 30, 2018, is presented below: Wtd. Avg. Fair Value Three Year Vest Non-Vested Restricted Shares Shares Per Share Outstanding at January 1, 2018 37,390 $ 51.39 Granted 17,712 65.33 Vested (18,883) 51.57 Expired — — Forfeited — — Outstanding at June 30, 2018 36,219 $ 58.12 |
Amended and Restated 2010 Equity Incentive Plan | |
STOCK-BASED COMPENSATION | |
Summary of activity for stock option awards | A summary of the activity for the awards during the six months ended June 30, 2018, is presented below: Wtd. Avg. Remaining Contractual Aggregate Wtd. Avg. Term Intrinsic Non-Qualified Stock Option Awards Shares Ex. Price (Years) Value Outstanding at January 1, 2018 90,000 $ 52.71 Granted — — Exercised — — Expired — — Forfeited — — Outstanding at June 30, 2018 90,000 $ 52.71 6.48 $ 792,300 Exercisable at January 1, 2018 73,000 $ 51.94 6.88 $ 843,968 Exercisable at June 30, 2018 90,000 $ 52.71 6.48 $ 792,300 |
Summary of non-vested stock option awards | A summary of the non-vested options for these awards during the six months ended June 30, 2018, is presented below: Fair Value of Shares Non-Qualified Stock Option Awards Shares Vested Non-Vested at January 1, 2018 17,000 Granted — Vested (17,000) $ 952,068 Expired — Forfeited — Non-Vested at June 30, 2018 — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of potential land sales transactions | No. of Acres Amount Price Estimated Transaction (Buyer) (Rounded) ($000's) per Acre Timing 1 Commercial/Retail - O'Connor - West of I-95 850 $ 34,000 $ '19 - '20 2 Commercial/Retail - O'Connor - East of I-95 (1) 123 29,250 '19 3 Residential (AR) - Minto Communities - West of I-95 1,614 26,500 Q4 '18 4 Residential (SF) - ICI Homes - West of I-95 1,016 21,000 '19 5 Residential (MF) - East of I-95 80 16,000 '19 6 Mixed-Use Retail - North American - East of I-95 (2) 35 14,362 409,000 Q4 '18 7 Commercial/Medical Office - East of I-95 32 8,089 '19 - '20 8 Residential (MF) - East of I-95 (3) 45 5,200 Q3 '18 & '20 9 Distribution/Warehouse - VanTrust - East of I-95 71 5,000 '19 10 Commercial/Retail - East of I-95 20 4,250 Q4 '18 11 Commercial/Retail - East of I-95 9 3,300 Q4 '18 - '19 12 Commercial/Distribution - VanTrust - East of I-95 26 3,215 '18 - '19 13 Residential (SF) - West of I-95 (4) 200 3,175 Q4 '18 & '20 14 Auto Dealership - West of I-95 13 2,000 Q4 '18 15 Commercial/Retail - East of I-95 2 1,500 '19 - '20 16 Residential (SF) - ICI Homes - West of I-95 146 1,400 '19 17 Commercial/Medical Office - East of I-95 4 935 Q4 '18 Total (Average) 4,286 $ 179,176 $ (1) Land sales transaction which requires the Company to incur the cost to provide the requisite mitigation credits necessary for obtaining the applicable regulatory permits for the buyer, with such costs representing either our basis in the credits that we own, or potentially up to 5% - 10% of the contract amount noted. (2) Pursuant to the contract, amount includes the reimbursement of infrastructure costs incurred by the Company for Tomoka Town Center plus interest accrued as of December 31, 2017. (3) The acres and amount include the buyer’s option to acquire approximately 19 acres for $2.0 million, in addition to the base contract of approximately 26 acres for $3.2 million. (4) The acres and amount include the buyer’s option to acquire approximately 71 acres for $925,000, in addition to the base contract of approximately 129 acres for $2.25 million. |
BUSINESS SEGMENT DATA (Tables)
BUSINESS SEGMENT DATA (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
BUSINESS SEGMENT DATA | |
Schedule of operations in different segments | Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, Revenues: Income Properties $ 9,781,299 $ 7,565,007 $ 18,987,026 $ 14,638,247 Commercial Loan Investments 273,467 553,159 574,466 1,089,648 Real Estate Operations 2,484,314 13,257,355 16,463,644 42,731,815 Golf Operations 1,282,918 1,383,513 2,637,274 2,858,457 Agriculture and Other Income 11,187 78,749 22,374 232,900 Total Revenues $ 13,833,185 $ 22,837,783 $ 38,684,784 $ 61,551,067 Operating Income: Income Properties $ 7,746,410 $ 5,935,492 $ 15,083,108 $ 11,597,019 Commercial Loan Investments 273,467 553,159 574,466 1,089,648 Real Estate Operations 1,614,044 7,464,826 14,057,712 27,782,437 Golf Operations (242,135) (18,406) (269,604) (42,140) Agriculture and Other Income 6,015 48,213 12,030 161,927 General and Corporate Expense (6,284,119) (5,942,877) (13,008,046) (11,925,599) Other Gains and Income 18,384,808 — 22,035,666 2,226,526 Total Operating Income $ 21,498,490 $ 8,040,407 $ 38,485,332 $ 30,889,818 Depreciation and Amortization: Income Properties $ 3,746,762 $ 3,108,494 $ 7,534,177 $ 5,794,806 Golf Operations 99,393 95,323 202,949 160,690 Agriculture and Other 8,783 11,873 18,191 22,769 Total Depreciation and Amortization $ 3,854,938 $ 3,215,690 $ 7,755,317 $ 5,978,265 Capital Expenditures: Income Properties $ 969,326 $ 22,748,812 $ 28,884,588 $ 44,686,344 Real Estate Operations 1,393,811 — 3,505,794 — Golf Operations 22,217 266,758 24,880 1,874,500 Agriculture and Other 10,785 38,945 11,338 51,028 Total Capital Expenditures $ 2,396,139 $ 23,054,515 $ 32,426,600 $ 46,611,872 As of June 30, 2018 December 31, 2017 Identifiable Assets: Income Properties $ 420,261,037 $ 388,602,721 Commercial Loan Investments 2,994,916 11,963,777 Real Estate Operations 41,388,054 43,296,528 Golf Operations 5,709,161 6,262,634 Agriculture and Other 10,196,478 16,004,718 Total Assets $ 480,549,646 $ 466,130,378 |
DESCRIPTION OF BUSINESS AND P47
DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS - Description of Business (Details) ft² in Millions | 6 Months Ended | |
Jun. 30, 2018aft²itemstateloanproperty | Mar. 31, 2018a | |
Land | ||
Description of business | ||
Number under lease | item | 18 | |
Commercial loans | ||
Description of business | ||
Number of mortgage loan investments | loan | 1 | |
Real Estate Operations | ||
Description of business | ||
Number of real estate properties | 36 | |
Number of states in which entity operates | state | 13 | |
Gross leasable space | ft² | 2.1 | |
Single-tenant | ||
Description of business | ||
Number of real estate properties | 29 | |
Multi-tenant | ||
Description of business | ||
Number of real estate properties | 7 | |
Daytona Beach, FL | ||
Description of business | ||
Acres | a | 0.9 | 3 |
Daytona Beach, FL | Undeveloped land | ||
Description of business | ||
Acres | a | 5,500 |
DESCRIPTION OF BUSINESS AND P48
DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS - Restricted Cash and Investment Securities (Details) | 1 Months Ended | |||||
Jul. 31, 2017USD ($) | Jun. 30, 2018USD ($)Transactionitemproperty | Feb. 28, 2018USD ($) | Feb. 21, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | |
Restricted Cash | ||||||
Restricted Cash | $ 2,419,686 | $ 918,000 | $ 6,508,131 | $ 4,727,381 | ||
First mortgage loan | ||||||
Restricted Cash | ||||||
Mortgage loan originated | $ 3,000,000 | |||||
Restricted cash, escrow deposit related to land transactions | ||||||
Restricted Cash | ||||||
Restricted Cash | $ 1,200,000 | |||||
Number of separate escrow accounts | item | 3 | |||||
Number of separate land transactions | Transaction | 3 | |||||
Restricted cash reserve for interest and property taxes for first mortgage loan investment | ||||||
Restricted Cash | ||||||
Restricted Cash | $ 127,000 | |||||
Capital replacement reserve account | ||||||
Restricted Cash | ||||||
Restricted Cash | $ 185,000 | |||||
Number of real estate properties in financing | property | 6 | |||||
Leasing reserve account | ||||||
Restricted Cash | ||||||
Restricted Cash | $ 918,000 |
DESCRIPTION OF BUSINESS AND P49
DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS - Fair Value of Financial Instruments (Details) - Commercial loans - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Commercial loan investment portfolio | ||
Carrying Value | $ 11,925,699 | |
Variable-rate B-Note Junior Mortgage | ||
Commercial loan investment portfolio | ||
Carrying Value | $ 0 | $ 8,960,467 |
DESCRIPTION OF BUSINESS AND P50
DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS - Commercial Loan Investments and Accounts Receivable (Details) | 3 Months Ended | ||
Dec. 31, 2015Transaction | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Commercial Loan Investment Impairment | |||
Allowance for impairment of loans | $ 0 | $ 0 | |
Accounts Receivable | |||
Allowance for doubtful accounts | 0 | 0 | |
Trade Accounts Receivable Golf Operations | |||
Accounts Receivable | |||
Accounts receivable | 287,000 | 349,000 | |
Accounts Receivable Income Properties Tenant Reimbursable Expenses | |||
Accounts Receivable | |||
Accounts receivable | 1,300,000 | 895,000 | |
Accounts Receivable Real Estate Operations [Member] | |||
Accounts Receivable | |||
Accounts receivable | $ 2,100,000 | $ 2,200,000 | |
Number of closed land transactions | Transaction | 2 |
DESCRIPTION OF BUSINESS AND P51
DESCRIPTION OF BUSINESS AND PRINCIPLES OF INTERIM STATEMENTS - Income Taxes (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Income Taxes | |
Reserves for uncertain income tax positions | $ 0 |
REVENUE RECOGNITION - Major Goo
REVENUE RECOGNITION - Major Good or Service (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Lease Revenue | $ 9,948,000 | $ 7,778,000 | $ 19,336,000 | $ 15,053,000 |
Lease Incentive Amortization | (76,000) | (151,000) | ||
Interest from Commercial Loan Investments | 274,000 | 553,000 | 575,000 | 1,090,000 |
Total Revenues | 13,833,185 | 22,837,783 | 38,684,784 | 61,551,067 |
Lease Revenue - Base Rent | ||||
Revenues | ||||
Lease Revenue | 7,376,000 | 6,125,000 | 14,809,000 | 11,690,000 |
Lease Revenue - CAM | ||||
Revenues | ||||
Lease Revenue | 891,000 | 466,000 | 1,505,000 | 965,000 |
Lease Revenue - Reimbursements | ||||
Revenues | ||||
Lease Revenue | 801,000 | 371,000 | 1,365,000 | 791,000 |
Lease Revenue - Billboards | ||||
Revenues | ||||
Lease Revenue | 70,000 | 65,000 | 134,000 | 126,000 |
Above / Below Market Lease Accretion | ||||
Revenues | ||||
Lease Revenue | 600,000 | 550,000 | 1,179,000 | 1,081,000 |
Contributed Leased Assets Accretion | ||||
Revenues | ||||
Lease Revenue | 85,000 | 95,000 | ||
Land | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 1,734,000 | 10,858,000 | 14,851,000 | 39,564,000 |
Revenue from Reimbursement of Infrastructure Costs | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 955,000 | 1,276,000 | ||
Impact Fee and Mitigation Credit Sales | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 470,000 | 1,222,000 | 586,000 | 1,439,000 |
Subsurface Lease Revenue | ||||
Revenues | ||||
Lease Revenue | 201,000 | 201,000 | 400,000 | 400,000 |
Subsurface Revenue - Other | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 79,000 | 21,000 | 626,000 | 53,000 |
Golf Operations | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 1,283,000 | 1,384,000 | 2,638,000 | 2,858,000 |
Timber Sales Revenue | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 68,000 | 211,000 | ||
Interest and Other Revenue | ||||
Revenues | ||||
Interest and Other Revenue | 45,000 | (1,000) | 73,000 | 7,000 |
Income Properties | ||||
Revenues | ||||
Lease Revenue | 9,736,000 | 7,566,000 | 18,914,000 | 14,631,000 |
Lease Incentive Amortization | (76,000) | (151,000) | ||
Total Revenues | 9,781,299 | 7,565,007 | 18,987,026 | 14,638,247 |
Income Properties | Lease Revenue - Base Rent | ||||
Revenues | ||||
Lease Revenue | 7,365,000 | 6,114,000 | 14,787,000 | 11,668,000 |
Income Properties | Lease Revenue - CAM | ||||
Revenues | ||||
Lease Revenue | 891,000 | 466,000 | 1,505,000 | 965,000 |
Income Properties | Lease Revenue - Reimbursements | ||||
Revenues | ||||
Lease Revenue | 801,000 | 371,000 | 1,365,000 | 791,000 |
Income Properties | Lease Revenue - Billboards | ||||
Revenues | ||||
Lease Revenue | 70,000 | 65,000 | 134,000 | 126,000 |
Income Properties | Above / Below Market Lease Accretion | ||||
Revenues | ||||
Lease Revenue | 600,000 | 550,000 | 1,179,000 | 1,081,000 |
Income Properties | Contributed Leased Assets Accretion | ||||
Revenues | ||||
Lease Revenue | 85,000 | 95,000 | ||
Income Properties | Interest and Other Revenue | ||||
Revenues | ||||
Interest and Other Revenue | 45,000 | (1,000) | 73,000 | 7,000 |
Commercial Loan Investments | ||||
Revenues | ||||
Interest from Commercial Loan Investments | 274,000 | 553,000 | 575,000 | 1,090,000 |
Total Revenues | 273,467 | 553,159 | 574,466 | 1,089,648 |
Real Estate Operations | ||||
Revenues | ||||
Lease Revenue | 201,000 | 201,000 | 400,000 | 400,000 |
Total Revenues | 2,484,314 | 13,257,355 | 16,463,644 | 42,731,815 |
Real Estate Operations | Land | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 1,734,000 | 10,858,000 | 14,851,000 | 39,564,000 |
Real Estate Operations | Revenue from Reimbursement of Infrastructure Costs | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 955,000 | 1,276,000 | ||
Real Estate Operations | Impact Fee and Mitigation Credit Sales | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 470,000 | 1,222,000 | 586,000 | 1,439,000 |
Real Estate Operations | Subsurface Lease Revenue | ||||
Revenues | ||||
Lease Revenue | 201,000 | 201,000 | 400,000 | 400,000 |
Real Estate Operations | Subsurface Revenue - Other | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 79,000 | 21,000 | 626,000 | 53,000 |
Golf Operations | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 1,283,000 | 1,384,000 | 2,638,000 | 2,858,000 |
Total Revenues | 1,282,918 | 1,383,513 | 2,637,274 | 2,858,457 |
Agriculture and Other Income | ||||
Revenues | ||||
Lease Revenue | 11,000 | 11,000 | 22,000 | 22,000 |
Revenue from contract with customer, including assessed tax | $ 68,000 | $ 211,000 | ||
Type of revenue | us-gaap:TimberMember | us-gaap:TimberMember | ||
Total Revenues | 11,187 | $ 78,749 | 22,374 | $ 232,900 |
Agriculture and Other Income | Lease Revenue - Base Rent | ||||
Revenues | ||||
Lease Revenue | $ 11,000 | $ 11,000 | $ 22,000 | $ 22,000 |
REVENUE RECOGNITION - Timing of
REVENUE RECOGNITION - Timing of Revenue Recognition (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Over Lease Term | $ 9,948,000 | $ 7,778,000 | $ 19,336,000 | $ 15,053,000 |
Commercial Loan Investment Related Revenue | 274,000 | 553,000 | 575,000 | 1,090,000 |
Total Revenues | 13,833,185 | 22,837,783 | 38,684,784 | 61,551,067 |
Asset/Good Transferred at a Point in Time | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 3,324,000 | 13,485,000 | 18,199,000 | 43,914,000 |
Services Transferred Over Time | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 287,000 | 1,022,000 | 575,000 | 1,494,000 |
Income Properties | ||||
Revenues | ||||
Over Lease Term | 9,736,000 | 7,566,000 | 18,914,000 | 14,631,000 |
Total Revenues | 9,781,299 | 7,565,007 | 18,987,026 | 14,638,247 |
Income Properties | Services Transferred Over Time | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 45,000 | (1,000) | 73,000 | 7,000 |
Commercial Loan Investments | ||||
Revenues | ||||
Commercial Loan Investment Related Revenue | 274,000 | 553,000 | 575,000 | 1,090,000 |
Total Revenues | 273,467 | 553,159 | 574,466 | 1,089,648 |
Real Estate Operations | ||||
Revenues | ||||
Over Lease Term | 201,000 | 201,000 | 400,000 | 400,000 |
Total Revenues | 2,484,314 | 13,257,355 | 16,463,644 | 42,731,815 |
Real Estate Operations | Asset/Good Transferred at a Point in Time | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 2,283,000 | 12,101,000 | 16,063,000 | 41,056,000 |
Real Estate Operations | Services Transferred Over Time | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 955,000 | 1,276,000 | ||
Golf Operations | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 1,283,000 | 1,384,000 | 2,638,000 | 2,858,000 |
Total Revenues | 1,282,918 | 1,383,513 | 2,637,274 | 2,858,457 |
Golf Operations | Asset/Good Transferred at a Point in Time | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 1,041,000 | 1,316,000 | 2,136,000 | 2,647,000 |
Golf Operations | Services Transferred Over Time | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 242,000 | 68,000 | 502,000 | 211,000 |
Agriculture and Other Income | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 68,000 | 211,000 | ||
Over Lease Term | 11,000 | 11,000 | 22,000 | 22,000 |
Total Revenues | $ 11,187 | 78,749 | $ 22,374 | 232,900 |
Agriculture and Other Income | Asset/Good Transferred at a Point in Time | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | $ 68,000 | $ 211,000 |
INCOME PROPERTIES - Acquisition
INCOME PROPERTIES - Acquisitions (Details) $ in Millions | Feb. 21, 2018USD ($) | Jun. 30, 2018USD ($)aproperty | Jun. 30, 2017USD ($)property | Jan. 31, 2018arestaurant |
LandShark Bar and Grill | ||||
Amount allocated of total acquisition cost | ||||
Number of restaurants | restaurant | 2 | |||
Acres | a | 6 | |||
Florida | ||||
Amount allocated of total acquisition cost | ||||
Tenant Contributions | $ 1.9 | |||
Net cash investment | 26.5 | |||
Aspen, Colorado | ||||
Amount allocated of total acquisition cost | ||||
Tenant Contributions | $ 1.5 | 1.5 | ||
Real Estate Operations | ||||
Acquisitions of Income Properties | ||||
Aggregate acquisition cost including capitalized acquisition costs | $ 29 | $ 40.7 | ||
Amount allocated of total acquisition cost | ||||
Weighted average amortization period of intangible assets | 20 years | 9 years 9 months 18 days | ||
Weighted average amortization period of intangible liabilities | 20 years | 9 years 9 months 18 days | ||
Real Estate Operations | Nonrecurring basis | ||||
Acquisitions of Income Properties | ||||
Land | $ 12 | $ 18 | ||
Buildings and improvements | 15 | $ 19.3 | ||
Intangible assets | 2.8 | |||
Intangible liabilities | $ 0.8 | |||
Single-tenant | ||||
Acquisitions of Income Properties | ||||
Number of real estate properties | property | 1 | 3 | ||
Single-tenant | Aspen, Colorado | ||||
Amount allocated of total acquisition cost | ||||
Acres | a | 0.18 |
INCOME PROPERTIES - Properties
INCOME PROPERTIES - Properties Acquired (Details) | 6 Months Ended | |
Jun. 30, 2018USD ($)aft² | Jun. 30, 2017USD ($) | |
Real Estate Operations | ||
Description of properties acquired | ||
Purchase price | $ 40,000,000 | |
Aspen, Colorado | Single-tenant | ||
Description of properties acquired | ||
Square-Feet | ft² | 19,596 | |
Acres | a | 0.18 | |
Purchase price | $ 28,000,000 | |
Percentage Leased | 100.00% | |
Remaining Lease Term | 20 years |
INCOME PROPERTIES - Disposition
INCOME PROPERTIES - Dispositions and Impairment Charges (Details) | 6 Months Ended | |
Jun. 30, 2018USD ($)ft²buildingproperty | Mar. 26, 2018USD ($) | |
Dispositions of Income Properties | ||
Number of properties in the disposal group | property | 4 | |
Daytona Beach, FL | ||
Dispositions of Income Properties | ||
Sales price | $ | $ 11,400,000 | |
Concierge Office Building | ||
Dispositions of Income Properties | ||
Area of real estate property | 22,012 | |
Williamson Business Park office building | ||
Dispositions of Income Properties | ||
Area of real estate property | 15,360 | |
Area of real estate property leased | 7,600 | |
Gain on Sale | $ | $ 3,700,000 | |
Gain on sale of properties (in dollars per share) | $ | $ 0.49 | |
Lease term | 5 years | |
Mason Commerce Center | ||
Dispositions of Income Properties | ||
Area of real estate property | 30,720 | |
Number of office building | building | 2 |
INCOME PROPERTIES - Acquisiti57
INCOME PROPERTIES - Acquisitions (Detail) $ in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($)property | Jun. 30, 2017USD ($)property | |
Acquisitions | ||
Number of properties in the disposal group | property | 4 | |
Single-tenant | ||
Acquisitions | ||
Number of real estate properties | property | 29 | |
Multi-tenant | ||
Acquisitions | ||
Number of real estate properties | property | 7 | |
Real Estate Operations | ||
Acquisitions | ||
Purchase price | $ | $ 40 | |
Aggregate acquisition cost including capitalized acquisition costs | $ | $ 29 | $ 40.7 |
Weighted average amortization period of intangible assets | 20 years | 9 years 9 months 18 days |
Weighted average amortization period of intangible liabilities | 20 years | 9 years 9 months 18 days |
Real Estate Operations | Nonrecurring basis | ||
Acquisitions | ||
Land | $ | $ 12 | $ 18 |
Buildings and improvements | $ | $ 15 | 19.3 |
Intangible assets pertaining to the in-place lease value, leasing fees and above market lease value | $ | 4.9 | |
Intangible liabilities for below market lease value | $ | $ 1.5 | |
Single-tenant | ||
Acquisitions | ||
Number of real estate properties | property | 1 | 3 |
Multi-tenant | ||
Acquisitions | ||
Number of real estate properties | property | 2 | |
2018 acquisitions of income property subject to a lease | Sold | ||
Acquisitions | ||
Number of properties in the disposal group | property | 0 |
COMMERCIAL LOAN INVESTMENTS - P
COMMERCIAL LOAN INVESTMENTS - Portfolio Information (Details) $ in Millions | Jun. 13, 2018USD ($) | Jun. 30, 2018USD ($)loan |
Commercial loan investment portfolio | ||
Proceeds from loans sold | $ | $ 9 | |
Commercial loans | ||
Commercial loan investment portfolio | ||
Number of mortgage loan investments | loan | 1 | |
Commercial loans | Performing | ||
Commercial loan investment portfolio | ||
Number of mortgage loan investments | loan | 1 | |
Aggregate outstanding principal balance | $ | $ 3 |
COMMERCIAL LOAN INVESTMENTS - C
COMMERCIAL LOAN INVESTMENTS - Composition of Portfolio (Details) - Commercial loans - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Commercial loan investment portfolio | ||
Original Face Amount | $ 11,960,467 | |
Current Face Amount | $ 3,000,000 | 11,960,467 |
Carrying Value | 11,925,699 | |
Variable-rate B-Note Junior Mortgage | ||
Commercial loan investment portfolio | ||
Original Face Amount | 8,960,467 | |
Current Face Amount | 8,960,467 | |
Carrying Value | 0 | $ 8,960,467 |
Variable-rate B-Note Junior Mortgage | LIBOR | ||
Commercial loan investment portfolio | ||
Loans receivable basis spread on variable rate (as a percent) | 7.50% | |
Fixed-rate first mortgage | ||
Commercial loan investment portfolio | ||
Original Face Amount | 3,000,000 | $ 3,000,000 |
Current Face Amount | 3,000,000 | 3,000,000 |
Carrying Value | $ 2,994,916 | $ 2,965,232 |
Interest Rate (as a percent) | 11.00% | 11.00% |
COMMERCIAL LOAN INVESTMENTS -60
COMMERCIAL LOAN INVESTMENTS - Carrying Value of Held for Investment and Loans Classified as Held for Sale (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Carrying value of the commercial loan investment portfolio | ||
Total Commercial Loan Investments | $ 2,994,916 | $ 11,925,699 |
Commercial loans | ||
Carrying value of the commercial loan investment portfolio | ||
Current Face Amount | 3,000,000 | 11,960,467 |
Unaccreted Origination Fees | (5,084) | (34,768) |
Total Commercial Loan Investments | $ 2,994,916 | $ 11,925,699 |
LAND AND SUBSURFACE INTERESTS -
LAND AND SUBSURFACE INTERESTS - Daytona Beach, Florida Land (Details) $ in Thousands | Aug. 01, 2018a | Jun. 30, 2018USD ($)apropertymi | Mar. 31, 2018USD ($)a | Jun. 30, 2017a | Mar. 31, 2017a | Dec. 31, 2009USD ($) |
Land and development costs and subsurface interests | ||||||
Area of land sales as a percentage of land holdings | 78.00% | |||||
Land sale acres | 4,286 | 81.4 | 1,587.4 | |||
Net realized loss on investments | $ | $ 0 | |||||
Daytona Beach, FL | ||||||
Land and development costs and subsurface interests | ||||||
Acres | 0.9 | 3 | ||||
Purchase price | $ | $ 1,500 | $ 2,000 | ||||
Undeveloped land | Daytona Beach, FL | ||||||
Land and development costs and subsurface interests | ||||||
Acres | 5,500 | |||||
Undeveloped land | Daytona Beach, FL | Property west of Interstate 95 | ||||||
Land and development costs and subsurface interests | ||||||
Acres | 4,500 | |||||
Distance of land owned along Interstate | mi | 6 | |||||
Undeveloped land | Daytona Beach, FL | Property west of Interstate 95 and north of Interstate 4 | ||||||
Land and development costs and subsurface interests | ||||||
Acres | 1,000 | |||||
Undeveloped land | Daytona Beach, FL | Property east of Interstate 95 | ||||||
Land and development costs and subsurface interests | ||||||
Acres | 1,000 | |||||
Distance of land owned along Interstate | mi | 6 | |||||
Undeveloped land, parcel one | Daytona Beach, FL | Property west of Interstate 95 and north of Interstate 4 | ||||||
Land and development costs and subsurface interests | ||||||
Acres | 850 | |||||
Undeveloped land, smaller parcels | Daytona Beach, FL | Property west of Interstate 95 and north of Interstate 4 | ||||||
Land and development costs and subsurface interests | ||||||
Number of land parcels | property | 3 |
LAND AND SUBSURFACE INTERESTS62
LAND AND SUBSURFACE INTERESTS - Real Estate Operations Revenues (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | ||||
Total Revenues | $ 13,833,185 | $ 22,837,783 | $ 38,684,784 | $ 61,551,067 |
Real Estate Operations | ||||
Revenues | ||||
Subsurface Revenue | 280,000 | 222,000 | 1,026,000 | 453,000 |
Total Revenues | 2,484,314 | 13,257,355 | 16,463,644 | 42,731,815 |
Land | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 1,734,000 | 10,858,000 | 14,851,000 | 39,564,000 |
Land | Real Estate Operations | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 1,734,000 | 10,858,000 | 14,851,000 | 39,564,000 |
Revenue from Reimbursement of Infrastructure Costs | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 955,000 | 1,276,000 | ||
Revenue from Reimbursement of Infrastructure Costs | Real Estate Operations | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 955,000 | 1,276,000 | ||
Impact Fee and Mitigation Credit Sales | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | 470,000 | 1,222,000 | 586,000 | 1,439,000 |
Impact Fee and Mitigation Credit Sales | Real Estate Operations | ||||
Revenues | ||||
Revenue from contract with customer, including assessed tax | $ 470,000 | $ 1,222,000 | $ 586,000 | $ 1,439,000 |
LAND AND SUBSURFACE INTERESTS63
LAND AND SUBSURFACE INTERESTS - Land Sales and Impairments (Details) | Aug. 01, 2018a$ / a | Jun. 28, 2018USD ($)a$ / a | Jun. 25, 2018USD ($)a$ / a | Jun. 12, 2018USD ($)a$ / a | Mar. 16, 2018USD ($)a$ / a | Jun. 27, 2017USD ($)a$ / a | Apr. 25, 2017USD ($)a$ / a | Apr. 13, 2017USD ($)a$ / a | Apr. 05, 2017USD ($)a$ / a | Mar. 22, 2017USD ($)a$ / a | Feb. 10, 2017USD ($)a$ / a | Jun. 30, 2018USD ($)aitemproperty$ / a | Mar. 31, 2018USD ($)a$ / a | Jun. 30, 2017USD ($)a$ / a | Mar. 31, 2017USD ($)a$ / a | Jun. 30, 2018USD ($)aitemproperty$ / a | Jun. 30, 2017USD ($)a$ / a |
Land and development costs and subsurface interests | |||||||||||||||||
No. of Acres | a | 4,286 | 81.4 | 1,587.4 | ||||||||||||||
Gross Sales Price | $ 11,813,000 | $ 28,707,000 | |||||||||||||||
Price per Acre | $ / a | 145,000 | 18,000 | |||||||||||||||
Price per Acre | $ / a | 42,000 | ||||||||||||||||
Impairment charges | $ 0 | $ 0 | |||||||||||||||
Real Estate Operations | |||||||||||||||||
Land and development costs and subsurface interests | |||||||||||||||||
Number of real estate properties | property | 36 | 36 | |||||||||||||||
Undeveloped land | |||||||||||||||||
Land and development costs and subsurface interests | |||||||||||||||||
Impairment charges | $ 0 | $ 0 | |||||||||||||||
Buc'ees - East of I-95 | |||||||||||||||||
Land and development costs and subsurface interests | |||||||||||||||||
Escrow reserve | 831,000 | $ 831,000 | $ 831,000 | ||||||||||||||
Remaining gain to be recognized | $ 831,000 | $ 831,000 | $ 831,000 | ||||||||||||||
Land Sales | |||||||||||||||||
Land and development costs and subsurface interests | |||||||||||||||||
Number of real estate properties | item | 4 | 4 | |||||||||||||||
Area of land in land sale transactions | a | 2,559 | ||||||||||||||||
No. of Acres | a | 32.4 | 34.9 | 67.3 | 1,668.8 | |||||||||||||
Gross Sales Price | $ 1,709,000 | $ 13,948,000 | $ 15,657,000 | $ 40,520,000 | |||||||||||||
Price per Acre | $ / a | 53,000 | 400,000 | 233,000 | 24,000 | |||||||||||||
Gain on Sale | $ 1,078,000 | $ 11,926,000 | $ 6,858,000 | $ 20,052,000 | $ 13,004,000 | $ 26,910,000 | |||||||||||
Land Sales | Minto Communities LLC | |||||||||||||||||
Land and development costs and subsurface interests | |||||||||||||||||
No. of Acres | a | 1,581 | ||||||||||||||||
Gross Sales Price | $ 27,151,000 | ||||||||||||||||
Price per Acre | $ / a | 17,000 | ||||||||||||||||
Gain on Sale | $ 20,041,000 | ||||||||||||||||
Land Sales | Buc'ees - East of I-95 | |||||||||||||||||
Land and development costs and subsurface interests | |||||||||||||||||
No. of Acres | a | 34.9 | ||||||||||||||||
Gross Sales Price | $ 13,948,000 | ||||||||||||||||
Price per Acre | $ / a | 400,000 | ||||||||||||||||
Gain on Sale | $ 11,926,000 | ||||||||||||||||
Land Sales | Residential | |||||||||||||||||
Land and development costs and subsurface interests | |||||||||||||||||
No. of Acres | a | 19 | ||||||||||||||||
Gross Sales Price | $ 265,000 | ||||||||||||||||
Price per Acre | $ / a | 14,000 | ||||||||||||||||
Gain on Sale | $ 226,000 | ||||||||||||||||
Land Sales | Mitigation Bank West of Interstate Ninety Five | |||||||||||||||||
Land and development costs and subsurface interests | |||||||||||||||||
Area of land belonging to interest in entity sold | a | 2,492 | ||||||||||||||||
No. of Acres | a | 2,492 | ||||||||||||||||
Land sales, ownership interest sold (as a percent) | 70.00% | 70.00% | |||||||||||||||
Gross Sales Price | $ 15,300,000 | ||||||||||||||||
Gain on Sale | $ 18,400,000 | ||||||||||||||||
Land Sales | Commercial/Retail Site | |||||||||||||||||
Land and development costs and subsurface interests | |||||||||||||||||
No. of Acres | a | 7.7 | 5.7 | |||||||||||||||
Gross Sales Price | $ 819,000 | $ 625,000 | |||||||||||||||
Price per Acre | $ / a | 106,000 | 110,000 | |||||||||||||||
Gain on Sale | $ 628,000 | $ 224,000 | |||||||||||||||
Land Sales | Commercial | |||||||||||||||||
Land and development costs and subsurface interests | |||||||||||||||||
No. of Acres | a | 30 | 4.5 | 27.5 | 6.4 | |||||||||||||
Gross Sales Price | $ 2,938,000 | $ 1,235,000 | $ 3,218,000 | $ 1,556,000 | |||||||||||||
Price per Acre | $ / a | 98,000 | 274,000 | 117,000 | 245,000 | |||||||||||||
Gain on Sale | $ 627,000 | $ 13,000 | $ 2,955,000 | $ 11,000 | |||||||||||||
Land Sales | Third Nadg Land Sale | |||||||||||||||||
Land and development costs and subsurface interests | |||||||||||||||||
No. of Acres | a | 19.4 | ||||||||||||||||
Gross Sales Price | $ 4,422,000 | ||||||||||||||||
Price per Acre | $ / a | 228,000 | ||||||||||||||||
Gain on Sale | $ 3,263,000 |
LAND AND SUBSURFACE INTERESTS64
LAND AND SUBSURFACE INTERESTS - Tiger Bay Mitigation (Details) | Aug. 01, 2018a | Jun. 12, 2018a | Jun. 27, 2017USD ($)a | Jun. 30, 2018USD ($)ainstrument | Mar. 31, 2018a | Jun. 30, 2017a | Mar. 31, 2017a | Jun. 30, 2018USD ($)ainstrument | Jun. 30, 2017a | Jun. 08, 2018item |
Real Estate [Line Items] | ||||||||||
Land sale acres | a | 4,286 | 81.4 | 1,587.4 | |||||||
Investment in Joint Venture | $ 6,701,017 | $ 6,701,017 | ||||||||
Number of state credits awarded | item | 355 | |||||||||
Area of land sales as a percentage of land holdings | 78.00% | |||||||||
Land Sales | ||||||||||
Real Estate [Line Items] | ||||||||||
Land sale acres | a | 32.4 | 34.9 | 67.3 | 1,668.8 | ||||||
Land Sales | Mitigation Bank West of Interstate Ninety Five | ||||||||||
Real Estate [Line Items] | ||||||||||
Land sales, ownership interest sold (as a percent) | 70.00% | 70.00% | ||||||||
Land sales, non-controlling interest (as a percent) | 30.00% | 30.00% | ||||||||
Land sale acres | a | 2,492 | |||||||||
Land Sales | Third Nadg Land Sale | ||||||||||
Real Estate [Line Items] | ||||||||||
Land sale acres | a | 19.4 | |||||||||
Payment made for infrastructure reimbursement | $ 955,000 | |||||||||
Consolidated Tomoka Land Co | ||||||||||
Real Estate [Line Items] | ||||||||||
Land sales, non-controlling interest (as a percent) | 30.00% | |||||||||
Interest in the joint venture (as a percent) | 30.00% | |||||||||
Investment in Joint Venture | $ 6,700,000 | $ 6,700,000 | ||||||||
Mitigation Bank | ||||||||||
Real Estate [Line Items] | ||||||||||
Mitigation credits, Operating Agreement, credit sales, Minimum Sales Requirement, minimum revenue, net of commissions | $ 6,000,000 | $ 6,000,000 | ||||||||
Mitigation credits, Operating Agreement, credit sales, Minimum Sales Requirement, maximum credits, number | instrument | 60 | 60 | ||||||||
Mitigation credits, Operating Agreement, credit sales, Minimum Sales Guarantee, fair value | $ 100,000 | $ 100,000 | ||||||||
Mitigation credits, Put Right, maximum credits the Company must purchase, per quarter, number | instrument | 8.536 | 8.536 | ||||||||
Mitigation credits, Put Right, maximum credits the Company must purchase, per quarter, price to fair value (as a percent) | 60.00% | 60.00% | ||||||||
Mitigation credits, Put Right, third-party cedit sales, reduction in Put Rights outstanding if sales price equals or exceeds price stipulated by Put Right, ratio | 1 | 1 | ||||||||
Mitigation credits, Put Right, maximum potential future payments | $ 27,000,000 | $ 27,000,000 | ||||||||
Mitigation credits, Put Right, fair value | $ 200,000 | $ 200,000 | ||||||||
Black Rock | ||||||||||
Real Estate [Line Items] | ||||||||||
Sale of interest in joint venture | 70.00% |
LAND AND SUBSURFACE INTERESTS65
LAND AND SUBSURFACE INTERESTS - Beachfront Venture and Daytona Beach (Details) | 6 Months Ended | |||
Jun. 30, 2018USD ($)arestaurant | Mar. 31, 2018a | Dec. 31, 2017USD ($)a | Jun. 30, 2016 | |
Land and subsurface interests | ||||
Acquisition of property | $ 2,141,853 | |||
Cost basis | $ 31,371,995 | $ 39,477,697 | ||
Daytona Beach, FL | ||||
Land and subsurface interests | ||||
Acres | a | 0.9 | 3 | ||
Land Parcel - Beachfront Property | ||||
Land and subsurface interests | ||||
Acres | a | 6 | |||
Cost basis | $ 6,800,000 | |||
Land Parcel - Beachfront Property | Land and Development | ||||
Land and subsurface interests | ||||
Cost basis | $ 11,700,000 | |||
Land Parcel - Beachfront Property | Income Properties Land Buildings and Improvements | ||||
Land and subsurface interests | ||||
Cost basis | $ 18,500,000 | |||
Land Parcel - Beachfront Property | Restaurant property | ||||
Land and subsurface interests | ||||
Number of properties | restaurant | 2 | |||
Land Parcel - Beachfront Property | Restaurant property | LandShark Bar and Grill | ||||
Land and subsurface interests | ||||
Lease term | 15 years | |||
Square-Feet | a | 6,264 | |||
Land Parcel - Beachfront Property | Restaurant property | Cocina 214 Restaurant and Bar | ||||
Land and subsurface interests | ||||
Lease term | 15 years | |||
Annual minimum rent per year | $ 360,000 |
LAND AND SUBSURFACE INTERESTS66
LAND AND SUBSURFACE INTERESTS - Other Real Estate Assets (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Land and development costs and subsurface interests | |||
Impact fees | $ 199,000 | $ 402,000 | |
Mitigation credits | 526,000 | 723,000 | |
Impact Fee and Mitigation Credits | 725,236 | $ 1,125,269 | |
Mitigation credits sold | 455,000 | $ 1,100,000 | |
Gain on mitigation credits sold | $ 403,000 | $ 932,000 | |
Gain on mitigation credits sold (in dollars per share) | $ 0.05 | $ 0.10 | |
Cash payments received for impact fees | $ 131,000 | $ 291,000 | |
LandShark Bar and Grill | |||
Land and development costs and subsurface interests | |||
Cash payments received for impact fees | 72,000 | ||
Real Estate Operations | Buc'ees - East of I-95 | |||
Land and development costs and subsurface interests | |||
Mitigation credits transferred | $ 124,000 |
LAND AND SUBSURFACE INTERESTS67
LAND AND SUBSURFACE INTERESTS - Subsurface Interests (Details) | Aug. 01, 2018a | Jun. 30, 2018USD ($)acounty | Jun. 30, 2017USD ($)a | Mar. 31, 2017a | Jun. 30, 2018USD ($)acounty$ / shares | Jun. 30, 2017USD ($)a | Dec. 31, 2017USD ($)a | Oct. 11, 2017 | Sep. 20, 2017 | Dec. 31, 2011 |
Subsurface interests | ||||||||||
Acres sold | a | 4,286 | 81.4 | 1,587.4 | |||||||
Lease income | ||||||||||
Over Lease Term | $ 9,948,000 | $ 7,778,000 | $ 19,336,000 | $ 15,053,000 | ||||||
Number of acres with operating oil wells | a | 800 | 800 | 800 | 800 | ||||||
Subsurface Interests | ||||||||||
Lease income | ||||||||||
Revenue recognized for cash payments for the release of surface entry rights | $ 68,000 | $ 0 | ||||||||
Oil exploration | ||||||||||
Subsurface interests | ||||||||||
Lease term | 13 years | |||||||||
Period of extended lease term | 5 years | |||||||||
Period of lease term after which lessee has option to terminate lease | 1 year | |||||||||
Lease payments on the respective acreages and drilling penalties received | ||||||||||
Lease Payment | $ 9,827,121 | |||||||||
Drilling Penalty | $ 1,975,000 | |||||||||
Lease income | ||||||||||
Period from end of prior lease year payment for drilling penalty is due | 30 days | |||||||||
Over Lease Term | $ 201,000 | $ 201,000 | $ 400,000 | 400,000 | ||||||
Hendry County | ||||||||||
Lease income | ||||||||||
Area of land for which surface entry rights were released | a | 40 | |||||||||
Minimum | Oil exploration | ||||||||||
Lease income | ||||||||||
Period of lease term after which additional rental payments may be received | 8 years | |||||||||
Maximum | Oil exploration | ||||||||||
Subsurface interests | ||||||||||
Lease term | 13 years | 8 years | ||||||||
Lease income | ||||||||||
Period of lease term after which additional rental payments may be received | 13 years | |||||||||
Surface land over subsurface interests | ||||||||||
Subsurface interests | ||||||||||
Acres | a | 461,000 | 461,000 | ||||||||
Number of counties in which Subsurface Interests are owned | county | 20 | 20 | ||||||||
Gain on Sale | $ 435,000 | |||||||||
After tax gain on sale (in dollars per share) | $ / shares | $ 0.06 | |||||||||
Lease income | ||||||||||
Area of land for which surface entry rights were released | a | 600 | |||||||||
Surface land over subsurface interests | Hendry County | ||||||||||
Subsurface interests | ||||||||||
Revenue from contract with customer, including assessed tax | $ 320,000 | |||||||||
Real Estate Operations | ||||||||||
Lease income | ||||||||||
Over Lease Term | $ 201,000 | 201,000 | 400,000 | 400,000 | ||||||
Real Estate Operations | Subsurface Interests | ||||||||||
Subsurface interests | ||||||||||
Revenue from contract with customer, including assessed tax | $ 12,000 | $ 18,000 | $ 44,000 | $ 49,000 | ||||||
Type of revenue | us-gaap:RoyaltyMember | us-gaap:RoyaltyMember | us-gaap:RoyaltyMember | us-gaap:RoyaltyMember | ||||||
Real Estate Operations | Surface land over subsurface interests | ||||||||||
Subsurface interests | ||||||||||
Revenue from contract with customer, including assessed tax | $ 185,000 | |||||||||
Lease Year 1 - 9/23/2011 - 9/22/2012 | Lee and Hendry County | Oil exploration | ||||||||||
Lease payments on the respective acreages and drilling penalties received | ||||||||||
Acreage | a | 136,000 | |||||||||
Lease Payment | $ 913,657 | |||||||||
Lease Year 2 - 9/23/2012 - 9/22/2013 | Lee and Hendry County | Oil exploration | ||||||||||
Lease payments on the respective acreages and drilling penalties received | ||||||||||
Acreage | a | 136,000 | |||||||||
Lease Payment | $ 922,114 | |||||||||
Lease Year 3 - 9/23/2013 - 9/22/2014 | Hendry County | Oil exploration | ||||||||||
Lease payments on the respective acreages and drilling penalties received | ||||||||||
Acreage | a | 82,000 | |||||||||
Lease Payment | $ 3,293,000 | |||||||||
Drilling Penalty | $ 1,000,000 | |||||||||
Lease Year 4 - 9/23/2014 - 9/22/2015 | Hendry County | Oil exploration | ||||||||||
Lease payments on the respective acreages and drilling penalties received | ||||||||||
Acreage | a | 42,000 | |||||||||
Lease Payment | $ 1,866,146 | |||||||||
Drilling Penalty | $ 600,000 | |||||||||
Lease Year 5 - 9/23/2015 - 9/22/2016 | Hendry County | Oil exploration | ||||||||||
Lease payments on the respective acreages and drilling penalties received | ||||||||||
Acreage | a | 25,000 | |||||||||
Lease Payment | $ 1,218,838 | |||||||||
Drilling Penalty | $ 175,000 | |||||||||
Lease Year 6 - 9/23/2016 - 9/22/2017 | Hendry County | Oil exploration | ||||||||||
Lease payments on the respective acreages and drilling penalties received | ||||||||||
Acreage | a | 15,000 | |||||||||
Lease Payment | $ 806,683 | |||||||||
Drilling Penalty | $ 150,000 | |||||||||
Lease Year 7 - 9/23/2017 - 9/22/2018 | Oil exploration | ||||||||||
Lease payments on the respective acreages and drilling penalties received | ||||||||||
Acreage | a | 15,000 | |||||||||
Lease Payment | $ 806,683 | |||||||||
Drilling Penalty | $ 50,000 |
INVESTMENT IN JOINT VENTURE (De
INVESTMENT IN JOINT VENTURE (Details) - Mitigation Bank $ in Thousands | Jun. 30, 2018USD ($) |
Summarized financial information of the Company’s JV Investment | |
Assets, cash and cash equivalents | $ 2,409 |
Assets, investment in mitigation credit assets | 1,424 |
Total Assets | 3,833 |
Equity | $ 3,833 |
FAIR VALUE OF FINANCIAL INSTR69
FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying Value and Estimated Fair Value (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Carrying value and estimated fair value of financial instruments | ||
Cash and Cash Equivalents | $ 4,312,324 | $ 6,559,409 |
Restricted Cash | 2,419,686 | 6,508,131 |
Commercial Loan Investments | 2,994,916 | 11,925,699 |
Long-Term Debt | 177,133,608 | 195,816,364 |
Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Carrying value and estimated fair value of financial instruments | ||
Cash and Cash Equivalents | 4,312,324 | 6,559,409 |
Restricted Cash | 2,419,686 | 6,508,131 |
Estimated Fair Value | Significant Other Observable Inputs (Level 2) | ||
Carrying value and estimated fair value of financial instruments | ||
Commercial Loan Investments | 3,031,501 | 12,015,628 |
Long-Term Debt | $ 179,596,049 | $ 200,000,776 |
FAIR VALUE OF FINANCIAL INSTR70
FAIR VALUE OF FINANCIAL INSTRUMENTS - Measured on a Recurring Basis (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Fair value of assets | ||
Cash Flow Hedge | $ 912,767 | $ 606,621 |
Total | 606,621 | |
Significant Other Observable Inputs (Level 2) | ||
Fair value of assets | ||
Total | 606,621 | |
Interest Rate Swap | ||
Fair value of assets | ||
Cash Flow Hedge | 606,621 | |
Interest Rate Swap | Significant Other Observable Inputs (Level 2) | ||
Fair value of assets | ||
Cash Flow Hedge | $ 606,621 | |
Recurring basis | ||
Fair value of assets | ||
Total | 912,767 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Fair value of assets | ||
Total | 912,767 | |
Recurring basis | Interest Rate Swap | ||
Fair value of assets | ||
Cash Flow Hedge | 912,767 | |
Recurring basis | Interest Rate Swap | Significant Other Observable Inputs (Level 2) | ||
Fair value of assets | ||
Cash Flow Hedge | $ 912,767 |
INTANGIBLE LEASE ASSETS AND L71
INTANGIBLE LEASE ASSETS AND LIABILITIES - Components (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Intangible Assets And Liabilities [Line Items] | ||
Sub-total Intangible Lease Assets | $ 53,017,216 | $ 50,198,683 |
Accumulated Amortization | (14,411,170) | (11,440,624) |
Total Intangible Lease Assets—Net | 38,606,046 | 38,758,059 |
Intangible Lease Liabilities | ||
Value of Below Market In-Place Leases | (36,109,518) | (35,312,017) |
Sub-total Intangible Lease Liabilities | (36,109,518) | (35,312,017) |
Accumulated Amortization | 6,969,983 | 5,541,576 |
Total Intangible Lease Liabilities—Net | (29,139,535) | (29,770,441) |
Total Intangible Assets and Liabilities—Net | 9,466,511 | 8,987,618 |
Value of In-Place Leases | ||
Intangible Assets And Liabilities [Line Items] | ||
Sub-total Intangible Lease Assets | 38,046,241 | 36,827,226 |
Value of Above Market In-Place Leases | ||
Intangible Assets And Liabilities [Line Items] | ||
Sub-total Intangible Lease Assets | 2,966,322 | 2,966,322 |
Value of Intangible Leasing Costs | ||
Intangible Assets And Liabilities [Line Items] | ||
Sub-total Intangible Lease Assets | $ 12,004,653 | $ 10,405,135 |
INTANGIBLE LEASE ASSETS AND L72
INTANGIBLE LEASE ASSETS AND LIABILITIES - Amortization (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
INTANGIBLE LEASE ASSETS AND LIABILITIES | ||||
Depreciation and Amortization Expense | $ 1,368,000 | $ 1,189,000 | $ 2,721,000 | $ 2,277,000 |
Increase to Income Properties Revenue | (600,000) | (550,000) | (1,179,345) | (1,081,262) |
Net Amortization of Intangible Assets and Liabilities | $ 768,000 | $ 639,000 | $ 1,542,000 | $ 1,196,000 |
INTANGIBLE LEASE ASSETS AND L73
INTANGIBLE LEASE ASSETS AND LIABILITIES - Summary of Estimated Amortization and Accretion (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Future Amortization Amount | ||
Total Intangible Lease Assets—Net | $ 38,606,046 | $ 38,758,059 |
Future Accretion to Income Property Revenue | ||
Total Intangible Lease Liabilities—Net | (29,139,535) | $ (29,770,441) |
Net Future Amortization of Intangible Assets and Liabilities | ||
Remainder of 2018 | 1,733,803 | |
2,019 | 3,058,477 | |
2,020 | 2,683,785 | |
2,021 | 842,494 | |
2,022 | 153,405 | |
2,023 | (198,216) | |
Thereafter | 1,192,763 | |
Total | 9,466,511 | |
Value of In-Place Leases and Intangible Leasing Costs | ||
Future Amortization Amount | ||
Remainder of 2018 | 2,916,475 | |
2,019 | 5,452,670 | |
2,020 | 5,011,249 | |
2,021 | 3,320,813 | |
2,022 | 2,702,885 | |
2,023 | 2,359,734 | |
Thereafter | 14,985,245 | |
Total Intangible Lease Assets—Net | 36,749,071 | |
Value of Below Market, net of Above Market In-Place Leases | ||
Future Accretion to Income Property Revenue | ||
Remainder of 2018 | (1,182,672) | |
2,019 | (2,394,193) | |
2,020 | (2,327,464) | |
2,021 | (2,478,319) | |
2,022 | (2,549,480) | |
2,023 | (2,557,950) | |
Thereafter | (13,792,482) | |
Total Intangible Lease Liabilities—Net | $ (27,282,560) |
IMPAIRMENT OF LONG-LIVED ASSE74
IMPAIRMENT OF LONG-LIVED ASSETS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Impairment of Long-Lived Assets | ||||
Impairment Charges | $ 0 | $ 0 | ||
Undeveloped land | ||||
Impairment of Long-Lived Assets | ||||
Impairment Charges | $ 0 | $ 0 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) | 6 Months Ended | |
Jun. 30, 2018USD ($)building | Dec. 31, 2017USD ($)installment | |
Income properties | ||
Income Property Tenant Receivables | $ 1,318,042 | $ 895,476 |
Income Property Straight-line Rent Adjustment | 3,439,530 | 2,517,195 |
Income Property Lease Incentive | 2,545,461 | 2,696,678 |
Interest Receivable from Commercial Loan Investments | 38,078 | |
Cash Flow Hedge | 912,767 | 606,621 |
Infrastructure Reimbursement Receivables | 2,117,840 | 2,213,305 |
Golf Operations Receivables | 286,995 | 349,220 |
Deferred Deal Costs | 471,966 | 480,257 |
Prepaid Expenses, Deposits, and Other | 2,882,784 | 3,174,299 |
Total Other Assets | 13,975,385 | $ 12,971,129 |
Tanger | ||
Income properties | ||
Infrastructure Reimbursement Receivables | 1,600,000 | |
Infrastructure reimbursement receivables, installment payment amounts | 175,000 | |
Infrastructure reimbursement receivable, discount | 162,000 | |
Sam's Club | ||
Income properties | ||
Infrastructure Reimbursement Receivables | 770,000 | |
Number of installments to repay infrastructure reimbursement receivable | installment | 7 | |
Infrastructure reimbursement receivables, installment payment amounts | $ 110,000 | |
Infrastructure reimbursement receivable, discount | $ 65,000 | |
Hilton Grand Vacations | ||
Income properties | ||
Income Property Lease Incentive | $ 2,500,000 | |
Number of real estate properties | building | 2 | |
Funding for tenant improvements | $ 2,700,000 | |
Accumulated amortization | $ 202,000 |
COMMON STOCK AND EARNINGS PER76
COMMON STOCK AND EARNINGS PER SHARE - Summary of Common Stock and Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Available to Common Shareholders: | ||||
Net Income | $ 14,162,908 | $ 3,678,908 | $ 25,075,207 | $ 16,425,300 |
Weighted Average Shares Outstanding | 5,529,360 | 5,531,444 | 5,530,108 | 5,566,595 |
Common Shares Applicable to Stock | ||||
Options Using the Treasury Stock Method | 14,008 | 31,683 | 16,463 | |
Total Shares Applicable to Diluted Earnings Per Share | 5,529,360 | 5,545,452 | 5,561,791 | 5,583,058 |
Per Share Information: | ||||
Basic Net Income per Share (in dollars per share) | $ 2.56 | $ 0.67 | $ 4.53 | $ 2.95 |
Diluted Net Income per Share (in dollars per share) | $ 2.56 | $ 0.66 | $ 4.51 | $ 2.94 |
COMMON STOCK AND EARNINGS PER77
COMMON STOCK AND EARNINGS PER SHARE - Anti-dilutive Securities and Convertible Notes (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 11, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive securities (in shares) | 0 | 70,000 | 15,000 | 77,750 | |
Additional diluted outstanding shares related to Convertible Notes | 0 | 0 | |||
4.50% Convertible Senior Notes due 2020 | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Stated interest rate (as a percent) | 4.50% | 4.50% | |||
Conversion price per share | $ 68.63 | $ 68.63 | $ 68.90 |
TREASURY STOCK (Details)
TREASURY STOCK (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jul. 18, 2018 | Mar. 31, 2017 | |
Treasury Stock | |||||
Stock repurchase program authorized amount | $ 10,000,000 | ||||
Number of shares authorized to be repurchased | 7,100,000 | ||||
Stock repurchased (in shares) | 36,804 | ||||
Stock repurchased amount | $ 2,192,445 | $ 2,192,445 | |||
Average price per share of stock repurchased | $ 59.57 | ||||
First quarter 2017 $10 Million Repurchase Program | |||||
Treasury Stock | |||||
Stock repurchase program authorized amount | $ 10,000,000 | ||||
Stock repurchased amount | $ 4,600,000 |
LONG-TERM DEBT - Outstanding In
LONG-TERM DEBT - Outstanding Indebtedness (Details) | 6 Months Ended | ||
Jun. 30, 2018USD ($)property | Apr. 30, 2016USD ($) | Mar. 11, 2015USD ($) | |
Long-term debt | |||
Face Value of Debt | $ 180,632,517 | ||
Interest Rate Swap | |||
Long-term debt | |||
Fixed interest rate through use of derivative (as a percent) | 3.17% | ||
Credit Facility | |||
Long-term debt | |||
Face Value of Debt | $ 50,745,579 | ||
Credit Facility | LIBOR | Minimum | |||
Long-term debt | |||
Margin added to variable rate basis (as a percent) | 1.50% | ||
Credit Facility | LIBOR | Maximum | |||
Long-term debt | |||
Margin added to variable rate basis (as a percent) | 2.20% | ||
Wells Fargo Mortgage Note Payable Originated September 30, 2014 | |||
Long-term debt | |||
Face Value of Debt | $ 30,000,000 | ||
Stated interest rate (as a percent) | 4.33% | ||
Number of income properties securing debt | property | 6 | ||
Period of fixed interest rate | 10 years | ||
Period of interest only payments | 10 years | ||
Period after which cash flows generated by underlying income properties must be used to pay down principal balance | 10 years | ||
Period to when loan is pre-payable | 10 years | ||
Wells Fargo Mortgage Note Payable Originated April 15, 2016 | |||
Long-term debt | |||
Face Value of Debt | $ 24,886,938 | $ 24,900,000 | |
Term of loan | 5 years | ||
Period of interest only payments | 2 years | ||
Period of amortization for principal payments | 25 years | ||
Fixed interest rate through use of derivative (as a percent) | 3.17% | ||
Wells Fargo Mortgage Note Payable Originated April 15, 2016 | LIBOR | |||
Long-term debt | |||
Margin added to variable rate basis (as a percent) | 1.90% | ||
4.50% Convertible Senior Notes due 2020 | |||
Long-term debt | |||
Face Value of Debt | $ 75,000,000 | $ 75,000,000 | |
Stated interest rate (as a percent) | 4.50% |
LONG-TERM DEBT - Credit Facilit
LONG-TERM DEBT - Credit Facility (Details) - Credit Facility - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Sep. 07, 2017 | |
Long-term debt | ||
Extension term | 1 year | |
Maximum borrowing capacity | $ 150 | $ 150 |
Maximum borrowing capacity, after possible increase | $ 250 | |
Unused portion of the borrowing capacity fee percentage condition | 50.00% | |
Available borrowing capacity | $ 99.1 | |
Amount outstanding | $ 50.7 | |
Minimum | ||
Long-term debt | ||
Commitment fee percentage on unused portion of the borrowing capacity | 0.15% | |
Maximum | ||
Long-term debt | ||
Commitment fee percentage on unused portion of the borrowing capacity | 0.25% | |
LIBOR | Minimum | ||
Long-term debt | ||
Margin added to variable rate basis (as a percent) | 1.50% | |
LIBOR | Maximum | ||
Long-term debt | ||
Margin added to variable rate basis (as a percent) | 2.20% |
LONG-TERM DEBT - Convertible No
LONG-TERM DEBT - Convertible Notes (Details) | Mar. 11, 2015USD ($)$ / shares | Jun. 30, 2018USD ($)$ / shares |
Long-term debt | ||
Face amount of debt | $ 180,632,517 | |
Unamortized debt discount of notes | 2,298,143 | |
4.50% Convertible Senior Notes due 2020 | ||
Long-term debt | ||
Face amount of debt | $ 75,000,000 | $ 75,000,000 |
Stated interest rate (as a percent) | 4.50% | |
Debt instrument conversion ratio | 0.0145136 | 0.0145439 |
Conversion price per share | $ / shares | $ 68.90 | $ 68.63 |
Unamortized debt discount of notes | $ 6,100,000 | $ 2,300,000 |
Debt discount, cash portion | 2,600,000 | |
Debt discount, equity component | $ 3,500,000 |
LONG-TERM DEBT - Components (De
LONG-TERM DEBT - Components (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Long-term debt | ||
Long-term debt | $ 180,632,517 | |
Loan Costs, net of accumulated amortization | (1,200,766) | $ (1,258,931) |
Long-Term Debt | 177,133,608 | 195,816,364 |
Credit Facility | ||
Long-term debt | ||
Long-term debt | 50,745,579 | 70,000,000 |
Wells Fargo Mortgage Note Payable Originated September 30, 2014 | ||
Long-term debt | ||
Long-term debt | $ 30,000,000 | 30,000,000 |
Long-term debt due within one year | ||
Stated interest rate (as a percent) | 4.33% | |
Wells Fargo Mortgage Note Payable Originated April 15, 2016 | ||
Long-term debt | ||
Long-term debt | $ 24,886,938 | 25,000,000 |
4.50% Convertible Senior Notes due 2020 | ||
Long-term debt | ||
Long-term debt, net of discount | $ 72,701,857 | $ 72,075,295 |
Long-term debt due within one year | ||
Stated interest rate (as a percent) | 4.50% |
LONG-TERM DEBT - Payments Appli
LONG-TERM DEBT - Payments Applicable to Reduction of Principal (Details) | Jun. 30, 2018USD ($) |
Payments applicable to reduction of principal amounts | |
2,020 | $ 75,000,000 |
2,021 | 75,632,517 |
Thereafter | 30,000,000 |
Total Long-Term Debt - Face Value | $ 180,632,517 |
LONG-TERM DEBT - Carrying Value
LONG-TERM DEBT - Carrying Value (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
LONG-TERM DEBT | ||
Current Face Amount | $ 180,632,517 | |
Unamortized Discount on Convertible Debt | (2,298,143) | |
Loan Costs, net of accumulated amortization | (1,200,766) | $ (1,258,931) |
Total Long-Term Debt | $ 177,133,608 | $ 195,816,364 |
LONG-TERM DEBT - Interest Expen
LONG-TERM DEBT - Interest Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
LONG-TERM DEBT | ||||
Interest expense | $ 2,085,000 | $ 1,736,000 | $ 4,185,000 | $ 3,393,000 |
Amortization of Loan Costs | 137,000 | 112,000 | 286,639 | 224,987 |
Amortization of Discount on Convertible Notes | 316,000 | 296,000 | 626,562 | 587,828 |
Total Interest Expense | 2,538,000 | 2,144,000 | 5,099,000 | 4,206,000 |
Total Interest Paid | $ 1,291,000 | $ 887,000 | $ 4,190,000 | $ 3,438,000 |
INTEREST RATE SWAP (Details)
INTEREST RATE SWAP (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Apr. 30, 2016 | |
Derivative [Line Items] | ||
Face amount of debt | $ 180,632,517 | |
Wells Fargo Mortgage Note Payable Originated April 15, 2016 | ||
Derivative [Line Items] | ||
Face amount of debt | $ 24,886,938 | $ 24,900,000 |
Derivative fixed interest rate (as a percent) | 3.17% | |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Effectiveness of interest rate cash flow hedge (as a percent) | 100.00% | |
Notional amount | $ 24,900,000 | |
Derivative fixed interest rate (as a percent) | 3.17% | |
Interest Rate Swap | Other Assets | ||
Derivative [Line Items] | ||
Fair value of interest rate swap agreement to hedge cash flows | $ 913,000 |
ACCRUED AND OTHER LIABILITIES -
ACCRUED AND OTHER LIABILITIES - Components (Details) | 6 Months Ended | |
Jun. 30, 2018USD ($)$ / item | Dec. 31, 2017USD ($) | |
ACCRUED AND OTHER LIABILITIES | ||
Golf $1 Round Surcharge | $ 630,000 | $ 700,000 |
Accrued Property Taxes | 1,372,678 | 66,909 |
Tenant Leasing Reserve Escrow | 917,748 | |
Reserve for Tenant Improvements | 136,157 | 3,302,831 |
Accrued Construction Costs | 190,998 | 1,360,950 |
Accrued Interest | 1,189,668 | 1,194,681 |
Environmental Reserve and Restoration Cost Accrual | 572,197 | 866,936 |
Other | 2,829,020 | 2,668,219 |
Total Accrued and Other Liabilities | $ 7,838,466 | $ 10,160,526 |
Annual surcharge, per round of golf played | $ / item | 1 |
ACCRUED AND OTHER LIABILITIES88
ACCRUED AND OTHER LIABILITIES - Golf Course Lease and Surcharge (Details) | Jan. 24, 2017USD ($) | Jun. 30, 2018USD ($)$ / item | Dec. 31, 2017USD ($) |
Accrued and other liabilities | |||
Land and land improvements acquired | $ 2,141,853 | ||
Annual surcharge, per round of golf played | $ / item | 1 | ||
Minimum annual per round surcharge | $ 70,000 | ||
Maximum Aggregate Amount of Per Round Surcharge | 700,000 | ||
Accrued surcharge commitment | $ 630,000 | $ 700,000 | |
Golf course land purchase | |||
Accrued and other liabilities | |||
Land and land improvements acquired | $ 1,500,000 |
ACCRUED AND OTHER LIABILITIES89
ACCRUED AND OTHER LIABILITIES - Tenant Leasing Reserve Escrow (Details) - USD ($) | Feb. 21, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
ACCRUED AND OTHER LIABILITIES | ||||
Master Tenant Funded Incurred Related To Leasing Reserve Escrow | $ 2,250,000 | $ 935,000 | ||
Eligible costs funded from escrow account | 1,300,000 | |||
Cost incurred related to property acquisition | 935,000 | |||
Base rent payments | 398,000 | |||
Escrow balance | 918,000 | $ 2,419,686 | $ 6,508,131 | $ 4,727,381 |
Maximum rent payments | $ 1,000,000 |
ACCRUED AND OTHER LIABILITIES90
ACCRUED AND OTHER LIABILITIES - Tenant Improvement Credits (Details) | Apr. 28, 2017USD ($) | Jun. 30, 2018USD ($)building | Dec. 31, 2017USD ($) |
Accrued and other liabilities | |||
Tenant improvements | $ 136,157 | $ 3,302,831 | |
Hilton Grand Vacations | |||
Accrued and other liabilities | |||
Tenant improvements | $ 2,700,000 | ||
Number of real estate properties | building | 2 | ||
Tenant improvements completed and funded | $ 2,700,000 | ||
Tampa, Florida | Property | Tenant reimbursement commitment | 2017 acquisitions of income property subject to a lease | |||
Accrued and other liabilities | |||
Liability incurred | $ 400,000 |
ACCRUED AND OTHER LIABILITIES91
ACCRUED AND OTHER LIABILITIES - Environmental Reserves (Details) | Jun. 30, 2016USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2015USD ($)a | Dec. 31, 2014USD ($)a | Dec. 31, 2015USD ($)a | Jun. 30, 2018USD ($) | Mar. 31, 2017USD ($) |
Environmental Reserve for Monitoring Environmental Remediation Work Previously Performed | |||||||||
Environmental reserves | |||||||||
Additional environmental reserve accrued | $ 51,000 | $ 500,000 | $ 110,000 | $ 661,000 | |||||
Environmental costs funded | $ 552,000 | ||||||||
Environmental reserve accrued | 109,000 | $ 109,000 | |||||||
Wetlands restoration | |||||||||
Environmental reserves | |||||||||
Acres | a | 148.4 | 148.4 | |||||||
Estimated cost | $ 2,000,000 | $ 2,000,000 | 2,000,000 | 2,000,000 | |||||
Environmental costs funded | 1,600,000 | 1,600,000 | |||||||
Accrued restoration cost | $ 464,000 | $ 1,700,000 | $ 1,700,000 | $ 464,000 | $ 708,000 | ||||
Area of previously disposed land subject to remediation | a | 148.4 | 148.4 | |||||||
Increase in accrual of remediation costs | $ 300,000 | ||||||||
Minimum | Environmental Reserve for Monitoring Environmental Remediation Work Previously Performed | |||||||||
Environmental reserves | |||||||||
Estimated cost | $ 500,000 | ||||||||
Minimum | Wetlands restoration | |||||||||
Environmental reserves | |||||||||
Estimated cost | 1,700,000 | ||||||||
Maximum | Environmental Reserve for Monitoring Environmental Remediation Work Previously Performed | |||||||||
Environmental reserves | |||||||||
Acres | a | 1 | ||||||||
Estimated cost | 1,000,000 | ||||||||
Maximum | Wetlands restoration | |||||||||
Environmental reserves | |||||||||
Estimated cost | $ 1,900,000 |
DEFERRED REVENUE - Summary of D
DEFERRED REVENUE - Summary of Deferred Revenue (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
DEFERRED REVENUE | ||
Deferred Oil Exploration Lease Revenue | $ 185,648 | $ 585,675 |
Deferred Revenue on Land Sales | 846,545 | |
Prepaid Rent | 1,079,747 | 1,126,408 |
Tenant Contributions | 4,227,953 | |
Other Deferred Revenue | 528,772 | 318,376 |
Total Deferred Revenue | $ 6,868,665 | $ 2,030,459 |
DEFERRED REVENUE - Rent Paid in
DEFERRED REVENUE - Rent Paid in Advance (Details) - USD ($) | Feb. 21, 2018 | Oct. 11, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 20, 2017 | Dec. 31, 2011 |
Deferred revenue | ||||||||||
Rent payment received | $ 807,000 | |||||||||
Period over which rent received in advance is recognized | 12 months | |||||||||
Deferred Revenue | $ 6,868,665 | $ 6,868,665 | $ 2,030,459 | |||||||
Acquisition of Property, Plant, and Equipment and Intangible Lease Assets and Liabilities | 28,908,410 | $ 46,621,871 | ||||||||
Lease Revenue | 9,948,000 | $ 7,778,000 | 19,336,000 | 15,053,000 | ||||||
Master tenant funded incurred related to property acquisition from their leasing reserve escrow | $ 2,250,000 | 935,000 | 935,000 | |||||||
Aggregate contributions related to total acquisition cost will be recognized into income property rental revenue over the remaining term of the lease | 29,000,000 | 29,000,000 | ||||||||
Oil exploration | ||||||||||
Deferred revenue | ||||||||||
Lease term | 13 years | |||||||||
Lease Revenue | 201,000 | $ 201,000 | 400,000 | $ 400,000 | ||||||
Aspen, Colorado | ||||||||||
Deferred revenue | ||||||||||
Deferred Revenue | 2,400,000 | 2,400,000 | ||||||||
Tenant Contributions | 1,500,000 | 1,500,000 | ||||||||
Acquisition of Property, Plant, and Equipment and Intangible Lease Assets and Liabilities | $ 28,000,000 | |||||||||
Lease Revenue | 41,000 | |||||||||
Florida | ||||||||||
Deferred revenue | ||||||||||
Deferred Revenue | 1,800,000 | 1,800,000 | ||||||||
Tenant Contributions | 1,900,000 | |||||||||
Lease Revenue | 54,000 | |||||||||
Maximum | Oil exploration | ||||||||||
Deferred revenue | ||||||||||
Lease term | 13 years | 8 years | ||||||||
Buc'ees - East of I-95 | ||||||||||
Deferred revenue | ||||||||||
Escrow reserve | 831,000 | 831,000 | $ 831,000 | |||||||
Remaining gain to be recognized | $ 831,000 | $ 831,000 | 831,000 | |||||||
Deferred Revenue | $ 25,000 |
STOCK-BASED COMPENSATION - All
STOCK-BASED COMPENSATION - All Equity and Liability Classified Award Activity (Details) - USD ($) | Jan. 24, 2018 | Feb. 03, 2017 | Jan. 25, 2017 | Jan. 27, 2016 | Jan. 22, 2014 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Shares | |||||||||
Outstanding (in shares) | 169,775 | ||||||||
Granted (in shares) | 33,157 | ||||||||
Vested / Exercised (in shares) | (26,633) | ||||||||
Outstanding (in shares) | 176,299 | 176,299 | |||||||
Total Cost of Share-Based Plans Charged Against Income Before Tax Effect | $ 430,054 | $ 389,585 | $ 897,325 | $ 743,164 | |||||
Income Tax Expense Recognized in Income | $ (108,997) | $ (150,283) | $ (227,427) | $ (286,676) | |||||
Stock Option Awards | |||||||||
Shares | |||||||||
Outstanding (in shares) | 0 | ||||||||
Peer Group Market Condition Vesting | Performance Shares | |||||||||
Shares | |||||||||
Outstanding (in shares) | 12,635 | ||||||||
Granted (in shares) | 15,445 | 12,635 | 15,445 | ||||||
Outstanding (in shares) | 28,080 | 28,080 | |||||||
Stock Price Vesting | Restricted Shares | |||||||||
Shares | |||||||||
Outstanding (in shares) | 29,750 | ||||||||
Exercised (in shares) | (7,750) | ||||||||
Outstanding (in shares) | 22,000 | 22,000 | |||||||
Three-Year Vesting | Restricted Shares | |||||||||
Shares | |||||||||
Outstanding (in shares) | 37,390 | ||||||||
Granted (in shares) | 17,712 | 17,451 | 21,100 | 14,500 | 17,712 | ||||
Vested (in shares) | (18,883) | ||||||||
Outstanding (in shares) | 36,219 | 36,219 | |||||||
Shares | |||||||||
Outstanding (in shares) | 37,390 | ||||||||
Granted (in shares) | 17,712 | ||||||||
Exercised (in shares) | (18,883) | ||||||||
Outstanding (in shares) | 36,219 | 36,219 | |||||||
Amended and Restated 2010 Equity Incentive Plan | Stock Option Awards | |||||||||
Shares | |||||||||
Outstanding (in shares) | 90,000 | ||||||||
Granted (in shares) | 0 | ||||||||
Exercised (in shares) | 0 | ||||||||
Outstanding (in shares) | 90,000 | 90,000 | |||||||
Shares | |||||||||
Outstanding (in shares) | 90,000 | ||||||||
Outstanding (in shares) | 90,000 | 90,000 |
STOCK-BASED COMPENSATION - Perf
STOCK-BASED COMPENSATION - Performance Share Awards – Peer Group Market Condition Vesting (Details) - Performance Shares - Peer Group Market Condition Vesting - USD ($) $ / shares in Units, $ in Millions | Jan. 24, 2018 | Feb. 03, 2017 | Jun. 30, 2018 |
Stock-based compensation | |||
Performance period | 3 years | 3 years | |
Shares | |||
Outstanding (in shares) | 12,635 | ||
Granted (in shares) | 15,445 | 12,635 | 15,445 |
Outstanding (in shares) | 28,080 | ||
Weighted Average Fair Value | |||
Outstanding (in dollars per share) | $ 55.66 | ||
Granted (in dollars per share | 74.99 | ||
Outstanding (in dollars per share) | $ 66.29 | ||
Compensation cost | |||
Unrecognized compensation cost | $ 1.3 | ||
Weighted average period of recognition of unrecognized compensation cost | 2 years 2 months 12 days | ||
Minimum | |||
Stock-based compensation | |||
Vesting percentage | 0.00% | 0.00% | |
Maximum | |||
Stock-based compensation | |||
Vesting percentage | 150.00% | 150.00% |
STOCK-BASED COMPENSATION - Mark
STOCK-BASED COMPENSATION - Market Condition Restricted Shares - Stock Price Vesting (Details) | Aug. 04, 2017 | Aug. 01, 2017$ / sharesshares | Feb. 26, 2016item$ / sharesshares | Jun. 30, 2015itemshares | Mar. 31, 2015$ / sharesshares | Dec. 31, 2014shares | Jun. 30, 2018USD ($)item$ / sharesshares | Mar. 31, 2015item$ / shares | Dec. 31, 2012$ / sharesshares | Dec. 31, 2011shares | Dec. 31, 2012item$ / shares |
Stock Price Vesting | Restricted Shares | Mr. Albright | 2015 and February 26, 2016 grants | |||||||||||
Stock-based compensation | |||||||||||
Number of increments vested | item | 2 | ||||||||||
Stock Price Vesting | Restricted Shares | Mr. Patten | |||||||||||
Stock-based compensation | |||||||||||
Number of increments vested | item | 6 | ||||||||||
Stock Price Vesting | Restricted Shares | |||||||||||
Shares | |||||||||||
Outstanding (in shares) | 29,750 | ||||||||||
Vested (in shares) | (7,750) | ||||||||||
Outstanding (in shares) | 22,000 | ||||||||||
Weighted Average Fair Value | |||||||||||
Outstanding (in dollars per share) | $ / shares | $ 39.07 | ||||||||||
Vested (in dollars per share) | $ / shares | 31.58 | ||||||||||
Outstanding (in dollars per share) | $ / shares | $ 41.71 | ||||||||||
Compensation cost | |||||||||||
Unrecognized compensation cost | $ | $ 0 | ||||||||||
Stock Price Vesting | Restricted Shares | Mr. Albright | |||||||||||
Stock-based compensation | |||||||||||
Number of increments to vest | item | 4 | 4 | |||||||||
Restricted share award period after termination of employment | 60 days | 60 days | |||||||||
Period for average closing price | 30 days | 30 days | |||||||||
Stock based compensation, shares, surrendered | 72,000 | ||||||||||
Stock based compensation, shares, permanently surrendered | 68,000 | ||||||||||
Shares | |||||||||||
Granted (in shares) | 4,000 | 94,000 | 96,000 | ||||||||
Outstanding (in shares) | 26,000 | ||||||||||
Stock Price Vesting | Restricted Shares | Mr. Patten | |||||||||||
Shares | |||||||||||
Granted (in shares) | 17,000 | ||||||||||
Stock Price Vesting | Restricted Shares | Mr. Smith | |||||||||||
Shares | |||||||||||
Granted (in shares) | 2,500 | ||||||||||
Stock Price Vesting | Restricted Shares | Mr. Albright and Mr. Patten | |||||||||||
Stock-based compensation | |||||||||||
Number of increments to vest | item | 6 | ||||||||||
Restricted share award period after termination of employment | 60 days | ||||||||||
Period for average closing price | 60 days | ||||||||||
Period subject to stock price condition | 6 years | ||||||||||
Number of increments vested | item | 4 | ||||||||||
Stock Price Vesting | Restricted Shares | Mr. Albright and Mr. Patten | Minimum | |||||||||||
Stock-based compensation | |||||||||||
Closing share price (in dollars per share) | $ / shares | $ 36 | $ 36 | |||||||||
Stock Price Vesting | Restricted Shares | Mr. Albright and Mr. Patten | Maximum | |||||||||||
Stock-based compensation | |||||||||||
Closing share price (in dollars per share) | $ / shares | $ 65 | $ 65 | |||||||||
Stock Price Vesting | Restricted Shares | Mr. Smith and other Officer | |||||||||||
Stock-based compensation | |||||||||||
Number of increments to vest | item | 2 | ||||||||||
Restricted share award period after termination of employment | 60 days | ||||||||||
Period for average closing price | 60 days | ||||||||||
Period subject to stock price condition | 6 years | ||||||||||
Stock Price Vesting | Restricted Shares | Mr. Smith and other Officer | Minimum | |||||||||||
Stock-based compensation | |||||||||||
Closing share price (in dollars per share) | $ / shares | $ 60 | $ 60 | |||||||||
Stock Price Vesting | Restricted Shares | Mr. Smith and other Officer | Maximum | |||||||||||
Stock-based compensation | |||||||||||
Closing share price (in dollars per share) | $ / shares | $ 65 | $ 65 | |||||||||
Stock Price Vesting | Restricted Shares | Officer | |||||||||||
Shares | |||||||||||
Granted (in shares) | 3,000 | ||||||||||
Share-based Compensation Award Stock Price Vesting Price Increment One | Restricted Shares | Mr. Albright | |||||||||||
Stock-based compensation | |||||||||||
Number of increments to vest | item | 2 | ||||||||||
Number of shares in each vesting increment | 2,000 | ||||||||||
Shares | |||||||||||
Expired (in shares) | 32,000 | ||||||||||
Share-based Compensation Award Stock Price Vesting Price Increment One | Restricted Shares | Mr. Albright | Minimum | |||||||||||
Stock-based compensation | |||||||||||
Closing share price (in dollars per share) | $ / shares | $ 60 | $ 60 | |||||||||
Share-based Compensation Award Stock Price Vesting Price Increment One | Restricted Shares | Mr. Albright | Maximum | |||||||||||
Stock-based compensation | |||||||||||
Closing share price (in dollars per share) | $ / shares | $ 65 | 65 | |||||||||
Share-based Compensation Award Stock Price Vesting Price Increment Two | Restricted Shares | Mr. Albright | |||||||||||
Stock-based compensation | |||||||||||
Closing share price (in dollars per share) | $ / shares | $ 70 | ||||||||||
Number of shares in each vesting increment | 18,000 | ||||||||||
Share-based Compensation Award Stock Price Vesting Price Increment Three | Restricted Shares | Mr. Albright | |||||||||||
Stock-based compensation | |||||||||||
Closing share price (in dollars per share) | $ / shares | $ 75 | ||||||||||
Number of shares in each vesting increment | 4,000 | ||||||||||
Equity Award Agreements | Mr. Albright | |||||||||||
Stock-based compensation | |||||||||||
Term of employment agreement | 5 years | ||||||||||
Equity Award Agreements | Stock Price Vesting | |||||||||||
Award agreements | |||||||||||
Period after change of control for equity award to fully vest upon termination of employment without cause or resignation | 24 months | ||||||||||
Equity Award Agreements | Stock Price Vesting | |||||||||||
Award agreements | |||||||||||
Period after change of control for equity award to fully vest upon termination of employment without cause or resignation | 24 months | 24 months |
STOCK-BASED COMPENSATION - Thre
STOCK-BASED COMPENSATION - Three Year Vest Restricted Shares (Details) - Three-Year Vesting - USD ($) $ / shares in Units, $ in Millions | Jan. 24, 2018 | Aug. 04, 2017 | Jan. 25, 2017 | Jan. 27, 2016 | Feb. 09, 2015 | Jan. 28, 2015 | Jan. 22, 2014 | Jun. 30, 2018 |
Restricted Shares | ||||||||
Stock-based compensation | ||||||||
Vesting per year (as a percent) | 33.00% | 33.00% | 33.00% | 33.00% | ||||
Shares | ||||||||
Outstanding (in shares) | 37,390 | |||||||
Granted (in shares) | 17,712 | 17,451 | 21,100 | 14,500 | 17,712 | |||
Vested (in shares) | (18,883) | |||||||
Outstanding (in shares) | 36,219 | |||||||
Weighted Average Fair Value | ||||||||
Outstanding (in dollars per share) | $ 51.39 | |||||||
Granted (in dollars per share | 65.33 | |||||||
Vested (in dollars per share) | 51.57 | |||||||
Outstanding (in dollars per share) | $ 58.12 | |||||||
Compensation cost | ||||||||
Unrecognized compensation cost | $ 1.7 | |||||||
Weighted average period of recognition of unrecognized compensation cost | 2 years 1 month 6 days | |||||||
Restricted Shares | Certain employees, excluding Mr. Albright | ||||||||
Stock-based compensation | ||||||||
Vesting per year (as a percent) | 33.00% | |||||||
Shares | ||||||||
Granted (in shares) | 11,700 | |||||||
Restricted Shares | Mr. Albright | ||||||||
Stock-based compensation | ||||||||
Vesting per year (as a percent) | 33.00% | |||||||
Shares | ||||||||
Granted (in shares) | 8,000 | |||||||
Equity Award Agreements | ||||||||
Award agreements | ||||||||
Period after change of control for equity award to fully vest upon termination of employment without cause or resignation | 24 months |
STOCK-BASED COMPENSATION - Non-
STOCK-BASED COMPENSATION - Non-Qualified Stock Option Awards Granted (Details) - Stock Option Awards - Amended and Restated 2010 Equity Incentive Plan - $ / shares | Aug. 04, 2017 | Feb. 26, 2016 | Jun. 29, 2015 | May 20, 2015 | Feb. 09, 2015 | Jan. 23, 2013 | Jun. 30, 2018 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock-based compensation | ||||||||||
Granted (in shares) | 0 | |||||||||
Exercised (in shares) | 0 | |||||||||
Albright, Patten, and Smith | ||||||||||
Stock-based compensation | ||||||||||
Granted (in shares) | 10,000 | 10,000 | 50,000 | |||||||
Vesting per year (as a percent) | 33.33% | 33.33% | 33.33% | |||||||
Period of expiration from grant date | 10 years | 10 years | 10 years | |||||||
Period of expiration after death or termination for disability | 12 months | 12 months | 12 months | |||||||
Period of expiration after termination of employment for reason other than death or disability | 30 days | 30 days | 30 days | |||||||
Certain employees | ||||||||||
Stock-based compensation | ||||||||||
Granted (in shares) | 51,000 | |||||||||
Vesting per year (as a percent) | 33.00% | |||||||||
Period of expiration from grant date | 5 years | |||||||||
Period of expiration after death or termination for disability | 12 months | |||||||||
Period of expiration after termination of employment for reason other than death or disability | 30 days | |||||||||
Mr. Patten | ||||||||||
Stock-based compensation | ||||||||||
Granted (in shares) | 10,000 | |||||||||
Mr. Albright | ||||||||||
Stock-based compensation | ||||||||||
Granted (in shares) | 40,000 | 40,000 | 20,000 | |||||||
Period of expiration after death or termination for disability | 12 months | 12 months | ||||||||
Period of expiration after termination of employment for reason other than death or disability | 30 days | 30 days | ||||||||
Exercise price (in dollars per share) | $ 55.62 | $ 57.50 | ||||||||
Surrendered (in shares) | 40,000 | |||||||||
Mr. Albright | Immediate vesting | ||||||||||
Stock-based compensation | ||||||||||
Vesting percentage | 33.00% | |||||||||
Mr. Albright | Vesting on designated anniversary dates | ||||||||||
Stock-based compensation | ||||||||||
Vesting percentage | 67.00% | |||||||||
Officer | ||||||||||
Stock-based compensation | ||||||||||
Granted (in shares) | 10,000 | |||||||||
Vesting per year (as a percent) | 33.00% | |||||||||
Period of expiration after death or termination for disability | 12 months | |||||||||
Period of expiration after termination of employment for reason other than death or disability | 30 days | |||||||||
Exercise price (in dollars per share) | $ 57.54 | |||||||||
Equity Award Agreements | ||||||||||
Award agreements | ||||||||||
Period after change of control for equity award to fully vest upon termination of employment without cause or resignation | 24 months |
STOCK-BASED COMPENSATION - No99
STOCK-BASED COMPENSATION - Non-Qualified Stock Option Award Activity (Details) - Stock Option Awards - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Shares | ||
Outstanding (in shares) | 0 | |
Outstanding (in shares) | 0 | |
Exercisable (in shares) | 0 | |
Amended and Restated 2010 Equity Incentive Plan | ||
Shares | ||
Outstanding (in shares) | 90,000 | |
Granted (in shares) | 0 | |
Exercised (in shares) | 0 | |
Outstanding (in shares) | 90,000 | 90,000 |
Exercisable (in shares) | 90,000 | 73,000 |
Weighted Average Exercise Price (in dollars per share) | ||
Outstanding (in dollars per share) | $ 52.71 | |
Outstanding (in dollars per share) | 52.71 | $ 52.71 |
Exercisable (in dollars per share) | $ 52.71 | $ 51.94 |
Weighted Average Remaining Contractual Term | ||
Outstanding | 6 years 5 months 23 days | |
Exercisable | 6 years 5 months 23 days | 6 years 10 months 17 days |
Stock-based compensation | ||
Aggregate Intrinsic Value, Outstanding (in dollars) | $ 792,300 | |
Aggregate Intrinsic Value, Exercisable (in dollars) | $ 792,300 | $ 843,968 |
STOCK-BASED COMPENSATION - N100
STOCK-BASED COMPENSATION - Non-Qualified Stock Option Non-Vested Award Activity (Details) - Amended and Restated 2010 Equity Incentive Plan - Stock Option Awards | 6 Months Ended |
Jun. 30, 2018USD ($)shares | |
Non-Vested Shares | |
Outstanding (in shares) | 17,000 |
Granted (in shares) | 0 |
Vested (in shares) | (17,000) |
Stock-based compensation | |
Fair Value of Shares Vested | $ | $ 952,068 |
STOCK-BASED COMPENSATION - Liab
STOCK-BASED COMPENSATION - Liability-Classified Stock Compensation Activity (Details) - shares | Dec. 31, 2017 | Dec. 31, 2010 | Dec. 31, 2009 |
Stock Option Awards | |||
Shares | |||
Exercisable (in shares) | 0 | ||
2001 Stock Option Plan | |||
Stock-based compensation | |||
Shares eligible for issuance | 500,000 | ||
2001 Stock Option Plan | Stock Option Awards | |||
Stock-based compensation | |||
Awards available for issue ( in shares) | 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
INCOME TAXES | |||
Effective income tax rate | 24.90% | 38.50% | |
Corporate tax rate (as a percent) | 21.00% | 35.00% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Contractual Commitments - Expenditures (Details) | Aug. 01, 2018a | Apr. 05, 2018plan | Jan. 31, 2018USD ($) | Dec. 31, 2015USD ($)a | Dec. 31, 2013USD ($)a | Jun. 30, 2017USD ($)a | Mar. 31, 2017a | Jun. 30, 2018USD ($)plan$ / item | Dec. 31, 2013USD ($)a | Apr. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Feb. 21, 2018USD ($) | Dec. 31, 2017USD ($) |
Commitments | |||||||||||||
Number of equity incentive plan | plan | 21 | ||||||||||||
Restricted Cash | $ 4,727,381 | $ 2,419,686 | $ 918,000 | $ 6,508,131 | |||||||||
Acres sold | a | 4,286 | 81.4 | 1,587.4 | ||||||||||
Obligations | |||||||||||||
Annual surcharge, per round of golf played | $ / item | 1 | ||||||||||||
Minimum annual per round surcharge | $ 70,000 | ||||||||||||
Maximum aggregate amount of per round surcharge | 700,000 | ||||||||||||
Accrued surcharge commitment | 630,000 | $ 700,000 | |||||||||||
Annual payment | $ 70,000 | ||||||||||||
Race Trac | |||||||||||||
Commitments | |||||||||||||
Acres sold | a | 3.4 | ||||||||||||
Sam's Club affiliate | |||||||||||||
Commitments | |||||||||||||
Acres sold | a | 18.1 | ||||||||||||
Sam's Club affiliate | Buyer reimbursement | |||||||||||||
Commitments | |||||||||||||
Deposit of cash in escrow classified as restricted cash | $ 125,000 | ||||||||||||
Restricted Cash | 125,000 | ||||||||||||
Williamson Crossing site | |||||||||||||
Commitments | |||||||||||||
Acres | a | 19.6 | 19.6 | |||||||||||
Williamson Crossing site | Road and other land improvements | |||||||||||||
Commitments | |||||||||||||
Area of land subject to contractual commitment | a | 23 | ||||||||||||
Estimated cost for improvements | $ 1,260,000 | ||||||||||||
Williamson Crossing site | Buyer reimbursement | |||||||||||||
Commitments | |||||||||||||
Commitment amount | $ 976,500 | $ 976,500 | |||||||||||
Deposit of cash in escrow classified as restricted cash | $ 283,500 | ||||||||||||
Reimbursement period of land improvement cost | 5 years | ||||||||||||
Funding from escrow | 283,500 | ||||||||||||
The Grove at Winter Park | Construction commitment | |||||||||||||
Commitments | |||||||||||||
Cost of contractual obligation incurred | 596,000 | ||||||||||||
Commitment amount | $ 638,000 | $ 42,000 | |||||||||||
Maximum | Sam's Club affiliate | Buyer reimbursement | |||||||||||||
Commitments | |||||||||||||
Commitment amount | 125,000 | ||||||||||||
Maximum | Williamson Crossing site | Buyer reimbursement | |||||||||||||
Commitments | |||||||||||||
Commitment amount | $ 693,000 | ||||||||||||
Employees | |||||||||||||
Commitments | |||||||||||||
Number of equity incentive plan | plan | 14 | ||||||||||||
Non Employees | |||||||||||||
Commitments | |||||||||||||
Number of equity incentive plan | plan | 7 | ||||||||||||
Subsidiaries | Employees | |||||||||||||
Commitments | |||||||||||||
Number of equity incentive plan | plan | 0 |
COMMITMENTS AND CONTINGENCIE104
COMMITMENTS AND CONTINGENCIES - Contractual Commitments - Land Pipeline (Details) $ in Thousands | Aug. 01, 2018USD ($)aentity$ / a | Jun. 30, 2017a | Mar. 31, 2017a |
Contracts | |||
Number of purchase and sale agreements | entity | 17 | ||
Number of buyers | entity | 14 | ||
No. of Acres | a | 4,286 | 81.4 | 1,587.4 |
Area of land sales as a percentage of land holdings | 78.00% | ||
Contract Amount | $ | $ 179,176 | ||
Price per Acre | $ / a | 42,000 | ||
Buyer's option | |||
Contracts | |||
No. of Acres | a | 71 | ||
Contract Amount | $ | $ 925 | ||
Base contract | |||
Contracts | |||
No. of Acres | a | 129 | ||
Contract Amount | $ | $ 2,250 | ||
Commercial/Retail | O'Connor - West of I-95 | |||
Contracts | |||
No. of Acres | a | 850 | ||
Contract Amount | $ | $ 34,000 | ||
Price per Acre | $ / a | 40,000 | ||
Commercial/Retail | O'Connor - East Of I-95 | |||
Contracts | |||
No. of Acres | a | 123 | ||
Contract Amount | $ | $ 29,250 | ||
Price per Acre | $ / a | 238,000 | ||
Commercial/Retail | Buc'ees - East of I-95 | Minimum | |||
Contracts | |||
Cost of requisite mitigation credits as a percentage of land sale contract amount | 5.00% | ||
Commercial/Retail | Buc'ees - East of I-95 | Maximum | |||
Contracts | |||
Cost of requisite mitigation credits as a percentage of land sale contract amount | 10.00% | ||
Commercial/Retail | Property East of I-95, one | |||
Contracts | |||
No. of Acres | a | 20 | ||
Contract Amount | $ | $ 4,250 | ||
Price per Acre | $ / a | 213,000 | ||
Commercial/Retail | Property East of I-95, one | Minimum | |||
Contracts | |||
Cost of requisite mitigation credits as a percentage of land sale contract amount | 5.00% | ||
Commercial/Retail | Property East of I-95, one | Maximum | |||
Contracts | |||
Cost of requisite mitigation credits as a percentage of land sale contract amount | 10.00% | ||
Commercial/Retail | Property East of I-95, two | |||
Contracts | |||
No. of Acres | a | 9 | ||
Contract Amount | $ | $ 3,300 | ||
Price per Acre | $ / a | 367,000 | ||
Commercial/Retail | Property East of I-95, three | |||
Contracts | |||
No. of Acres | a | 2 | ||
Contract Amount | $ | $ 1,500 | ||
Price per Acre | $ / a | 682,000 | ||
Residential (AR) | Minto Communities - West of I-95 | |||
Contracts | |||
No. of Acres | a | 1,614 | ||
Contract Amount | $ | $ 26,500 | ||
Price per Acre | $ / a | 16,000 | ||
Residential (SF) | ICI Homes - West of I-95 | |||
Contracts | |||
No. of Acres | a | 1,016 | ||
Contract Amount | $ | $ 21,000 | ||
Price per Acre | $ / a | 21,000 | ||
Residential (SF) | ICI Homes - West of I-95, property two | |||
Contracts | |||
No. of Acres | a | 146 | ||
Contract Amount | $ | $ 1,400 | ||
Price per Acre | $ / a | 10,000 | ||
Residential (SF) | Property west of Interstate 95 | |||
Contracts | |||
No. of Acres | a | 200 | ||
Contract Amount | $ | $ 3,175 | ||
Price per Acre | $ / a | 16,000 | ||
Real Estate Operations | BlackRock - West of I-95 | |||
Contracts | |||
No. of Acres | a | 80 | ||
Contract Amount | $ | $ 16,000 | ||
Price per Acre | $ / a | 200,000 | ||
Mixed-Use Retail | North American - East of I-95 | |||
Contracts | |||
No. of Acres | a | 35 | ||
Contract Amount | $ | $ 14,362 | ||
Price per Acre | $ / a | 409,000 | ||
Commercial/Medical Office | Property East of I-95, one | |||
Contracts | |||
No. of Acres | a | 32 | ||
Contract Amount | $ | $ 8,089 | ||
Price per Acre | $ / a | 253,000 | ||
Commercial/Medical Office | Property East of I-95, four | |||
Contracts | |||
No. of Acres | a | 4 | ||
Contract Amount | $ | $ 935 | ||
Price per Acre | $ / a | 234,000 | ||
Residential (Multi-Family) | Property east of Interstate 95 | |||
Contracts | |||
No. of Acres | a | 45 | ||
Contract Amount | $ | $ 5,200 | ||
Price per Acre | $ / a | 116,000 | ||
Residential (Multi-Family) | Buyer's option | Property east of Interstate 95 | |||
Contracts | |||
No. of Acres | a | 19 | ||
Contract Amount | $ | $ 2,000 | ||
Residential (Multi-Family) | Base contract | Property east of Interstate 95 | |||
Contracts | |||
No. of Acres | a | 26 | ||
Contract Amount | $ | $ 3,200 | ||
Distribution/Warehouse | Property east of Interstate 95 | |||
Contracts | |||
No. of Acres | a | 71 | ||
Contract Amount | $ | $ 5,000 | ||
Price per Acre | $ / a | 70,000 | ||
Commercial/Distribution | Property east of Interstate 95 | |||
Contracts | |||
No. of Acres | a | 26 | ||
Contract Amount | $ | $ 3,215 | ||
Price per Acre | $ / a | 124,000 | ||
Auto Dealership | Property west of Interstate 95 | |||
Contracts | |||
No. of Acres | a | 13 | ||
Contract Amount | $ | $ 2,000 | ||
Price per Acre | $ / a | 154,000 |
COMMITMENTS AND CONTINGENCIE105
COMMITMENTS AND CONTINGENCIES - Other Matters (Details) | Aug. 01, 2018a | Jun. 30, 2017USD ($)aitem | Jun. 30, 2016USD ($) | Jun. 30, 2018USD ($)a | Mar. 31, 2018a | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($)a | Mar. 31, 2017USD ($)a | Jun. 30, 2016USD ($) | Jun. 30, 2018USD ($)a | Jun. 30, 2017USD ($)a | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($)a | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) | Feb. 21, 2018USD ($) |
Contingencies | ||||||||||||||||
Acres sold | a | 4,286 | 81.4 | 1,587.4 | |||||||||||||
Escrow balance | $ 4,727,381 | $ 2,419,686 | $ 6,508,131 | $ 4,727,381 | $ 2,419,686 | $ 4,727,381 | $ 6,508,131 | $ 6,508,131 | $ 2,419,686 | $ 918,000 | ||||||
Unfavorable regulatory action | ||||||||||||||||
Contingencies | ||||||||||||||||
Accrued loss contingency | $ 187,500 | |||||||||||||||
Wintergreen Advisers, LLC maters | ||||||||||||||||
Contingencies | ||||||||||||||||
Cost incurred | 1,600,000 | 3,000,000 | ||||||||||||||
Legal representation and third party costs | $ 944,000 | 1,200,000 | ||||||||||||||
Minto Communities LLC | ||||||||||||||||
Contingencies | ||||||||||||||||
Acres sold | a | 1,581 | |||||||||||||||
Number of mitigation credits required to be utilized | item | 36 | |||||||||||||||
Land Sales | ||||||||||||||||
Contingencies | ||||||||||||||||
Acres sold | a | 32.4 | 34.9 | 67.3 | 1,668.8 | ||||||||||||
Wetlands restoration | ||||||||||||||||
Contingencies | ||||||||||||||||
Acres | a | 148.4 | |||||||||||||||
Estimated cost | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | 2,000,000 | ||||||||||||
Increase in accrual of remediation costs | $ 300,000 | |||||||||||||||
Environmental costs funded | 1,600,000 | 1,600,000 | ||||||||||||||
Accrued restoration cost | $ 464,000 | $ 708,000 | $ 464,000 | $ 1,700,000 | $ 464,000 | |||||||||||
Wetlands restoration | Minto Communities LLC | ||||||||||||||||
Contingencies | ||||||||||||||||
Cash deposited in (refunded from) escrow | 189,500 | $ 423,000 | ||||||||||||||
Escrow balance | $ 234,000 | $ 234,000 | $ 234,000 | |||||||||||||
Wetlands restoration | Minimum | ||||||||||||||||
Contingencies | ||||||||||||||||
Estimated cost | 1,700,000 | |||||||||||||||
Wetlands restoration | Maximum | ||||||||||||||||
Contingencies | ||||||||||||||||
Estimated cost | $ 1,900,000 | |||||||||||||||
Mitigation activities | ||||||||||||||||
Contingencies | ||||||||||||||||
Acres | a | 54.66 | 54.66 | 54.66 | |||||||||||||
Mitigation credits transferred | $ 298,000 |
BUSINESS SEGMENT DATA - Descrip
BUSINESS SEGMENT DATA - Description (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018segmentloanitemproperty | Jun. 30, 2017 | Dec. 31, 2017 | |
Business segment data | |||
Number of business segments | segment | 4 | ||
Golf Operations | |||
Business segment data | |||
Number of golf courses owned | property | 2 | ||
Number of holes to the golf course | item | 18 | ||
Commercial loans | |||
Business segment data | |||
Number of mortgage loan investments | loan | 1 | ||
Product concentration | Identifiable assets | Income Properties | |||
Business segment data | |||
Percentage of total | 87.50% | 83.40% | |
Product concentration | Consolidated revenues | Income Properties | |||
Business segment data | |||
Percentage of total | 49.10% | 23.80% |
BUSINESS SEGMENT DATA - Summary
BUSINESS SEGMENT DATA - Summary of Operations in Different Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Business segment data | |||||
Revenues | $ 13,833,185 | $ 22,837,783 | $ 38,684,784 | $ 61,551,067 | |
Operating Income | 21,498,490 | 8,040,407 | 38,485,332 | 30,889,818 | |
Other Gains and Income | 18,384,808 | 22,035,666 | 2,226,526 | ||
Depreciation and Amortization | 3,854,938 | 3,215,690 | 7,755,317 | 5,978,265 | |
Identifiable Assets | 480,549,646 | 480,549,646 | $ 466,130,378 | ||
Operating Segments | |||||
Business segment data | |||||
Capital Expenditures | 2,396,139 | 23,054,515 | 32,426,600 | 46,611,872 | |
General and Corporate Expense | |||||
Business segment data | |||||
Operating Income | (6,284,119) | (5,942,877) | (13,008,046) | (11,925,599) | |
Income Properties | |||||
Business segment data | |||||
Revenues | 9,781,299 | 7,565,007 | 18,987,026 | 14,638,247 | |
Depreciation and Amortization | 3,746,762 | 3,108,494 | 7,534,177 | 5,794,806 | |
Identifiable Assets | 420,261,037 | 420,261,037 | 388,602,721 | ||
Income Properties | Operating Segments | |||||
Business segment data | |||||
Operating Income | 7,746,410 | 5,935,492 | 15,083,108 | 11,597,019 | |
Capital Expenditures | 969,326 | 22,748,812 | 28,884,588 | 44,686,344 | |
Commercial Loan Investments | |||||
Business segment data | |||||
Revenues | 273,467 | 553,159 | 574,466 | 1,089,648 | |
Identifiable Assets | 2,994,916 | 2,994,916 | 11,963,777 | ||
Commercial Loan Investments | Operating Segments | |||||
Business segment data | |||||
Operating Income | 273,467 | 553,159 | 574,466 | 1,089,648 | |
Real Estate Operations | |||||
Business segment data | |||||
Revenues | 2,484,314 | 13,257,355 | 16,463,644 | 42,731,815 | |
Identifiable Assets | 41,388,054 | 41,388,054 | 43,296,528 | ||
Real Estate Operations | Operating Segments | |||||
Business segment data | |||||
Operating Income | 1,614,044 | 7,464,826 | 14,057,712 | 27,782,437 | |
Capital Expenditures | 1,393,811 | 3,505,794 | |||
Golf Operations | |||||
Business segment data | |||||
Revenues | 1,282,918 | 1,383,513 | 2,637,274 | 2,858,457 | |
Depreciation and Amortization | 99,393 | 95,323 | 202,949 | 160,690 | |
Identifiable Assets | 5,709,161 | 5,709,161 | 6,262,634 | ||
Golf Operations | Operating Segments | |||||
Business segment data | |||||
Operating Income | (242,135) | (18,406) | (269,604) | (42,140) | |
Capital Expenditures | 22,217 | 266,758 | 24,880 | 1,874,500 | |
Agriculture and Other Income | |||||
Business segment data | |||||
Revenues | 11,187 | 78,749 | 22,374 | 232,900 | |
Depreciation and Amortization | 8,783 | 11,873 | 18,191 | 22,769 | |
Identifiable Assets | 10,196,478 | 10,196,478 | $ 16,004,718 | ||
Agriculture and Other Income | Operating Segments | |||||
Business segment data | |||||
Operating Income | 6,015 | 48,213 | 12,030 | 161,927 | |
Capital Expenditures | $ 10,785 | $ 38,945 | $ 11,338 | $ 51,028 |