Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ST JOE CO | |
Trading Symbol | JOE | |
Entity Central Index Key | 0000745308 | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 60,200,534 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Investment in real estate, net | $ 364,715 | $ 350,994 |
Cash and cash equivalents | 190,821 | 195,155 |
Investments - debt securities | 9,817 | 8,958 |
Investments - equity securities | 38,186 | 36,132 |
Income tax receivable | 3,253 | 3,914 |
Other assets | 52,541 | 60,308 |
Property and equipment, net of accumulated depreciation of $60,874 and $60,271 at March 31, 2019 and December 31, 2018, respectively | 12,749 | 12,031 |
Investments held by special purpose entity | 207,011 | 207,384 |
Total assets | 875,840 | 870,962 |
Liabilities: | ||
Debt, net | 77,792 | 69,374 |
Other liabilities | 46,369 | 47,387 |
Deferred tax liabilities, net | 44,522 | 44,315 |
Senior Notes held by special purpose entity | 176,837 | 176,775 |
Total liabilities | 345,520 | 337,851 |
Commitments and contingencies (Note 18) | ||
Equity: | ||
Common stock, no par value; 180,000,000 shares authorized; 60,672,034 issued at March 31, 2019 and December 31, 2018; and 60,200,534 and 60,672,034 outstanding at March 31, 2019 and December 31, 2018, respectively | 331,408 | 331,395 |
Retained earnings | 189,447 | 187,450 |
Accumulated other comprehensive loss | (68) | (674) |
Treasury stock at cost, 471,500 shares held at March 31, 2019 | (7,073) | |
Total stockholders' equity | 513,714 | 518,171 |
Non-controlling interest | 16,606 | 14,940 |
Total equity | 530,320 | 533,111 |
Total liabilities and equity | $ 875,840 | $ 870,962 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Property and equipment, Accumulated depreciation | $ 60,874 | $ 60,271 |
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 180,000,000 | 180,000,000 |
Common stock, issued (in shares) | 60,672,034 | 60,672,034 |
Common stock, outstanding (in shares) | 60,200,534 | 60,672,034 |
Treasury stock (in shares) | 471,500 |
CONDENSED CONSOLIDATED BALANC_3
CONDENSED CONSOLIDATED BALANCE SHEETS - VIEs - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Investment in real estate | $ 364,715 | $ 350,994 |
Cash and cash equivalents | 190,821 | 195,155 |
Other assets | 52,541 | 60,308 |
Investments held by special purpose entity | 207,011 | 207,384 |
Total assets | 875,840 | 870,962 |
LIABILITIES | ||
Debt, net | 77,792 | 69,374 |
Other liabilities | 46,369 | 47,387 |
Senior Notes held by special purpose entity | 176,837 | 176,775 |
Total liabilities | 345,520 | 337,851 |
Variable Interest Entities | ||
ASSETS | ||
Investment in real estate | 77,557 | 70,124 |
Cash and cash equivalents | 4,763 | 2,113 |
Other assets | 14,139 | 16,165 |
Investments held by special purpose entity | 207,011 | 207,384 |
Total assets | 303,470 | 295,786 |
LIABILITIES | ||
Debt, net | 66,360 | 60,262 |
Other liabilities | 1,861 | 5,773 |
Senior Notes held by special purpose entity | 176,837 | 176,775 |
Total liabilities | $ 245,058 | $ 242,810 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Leasing revenue | $ 3,506 | |
Leasing revenue | $ 3,418 | |
Total revenue | 16,023 | 19,865 |
Expenses: | ||
Cost of leasing revenue | 1,066 | |
Cost of leasing revenue | 1,113 | |
Other operating and corporate expenses | 5,968 | 5,946 |
Depreciation, depletion and amortization | 2,111 | 2,255 |
Total expenses | 18,184 | 20,406 |
Operating loss | (2,161) | (541) |
Other income (expense): | ||
Investment income, net | 6,046 | 3,665 |
Interest expense | (2,942) | (3,025) |
Other income, net | 1,698 | 277 |
Total other income, net | 4,802 | 917 |
Income before income taxes | 2,641 | 376 |
Income tax (expense) benefit | (661) | 249 |
Net income | 1,980 | 625 |
Net loss attributable to non-controlling interest | 17 | 132 |
Net income attributable to the Company | $ 1,997 | $ 757 |
Basic and Diluted | ||
Weighted average shares outstanding (in shares) | 60,321,028 | 65,476,054 |
Net income per share attributable to the Company (in dollars per share) | $ 0.03 | $ 0.01 |
Real estate | ||
Revenue: | ||
Revenue | $ 4,591 | $ 7,702 |
Expenses: | ||
Cost of revenue | 1,833 | 4,169 |
Hospitality | ||
Revenue: | ||
Revenue | 7,431 | 7,079 |
Expenses: | ||
Cost of revenue | 7,065 | 6,710 |
Timber | ||
Revenue: | ||
Revenue | 495 | 1,666 |
Expenses: | ||
Cost of revenue | $ 141 | $ 213 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Net income: | $ 1,980 | $ 625 | |
Other comprehensive income (loss): | |||
Reclassification of net realized loss included in earnings | 2 | 1,078 | |
Reclassification into retained earnings | [1] | 932 | |
Reclassification of other-than-temporary impairment loss included in earnings | 63 | ||
Total before income taxes | 812 | 1,261 | |
Income tax expense | [2] | (206) | (632) |
Total other comprehensive income, net of tax | 606 | 629 | |
Total comprehensive income, net of tax | 2,586 | 1,254 | |
Unrestricted available-for-sale, Debt securities | |||
Other comprehensive income (loss): | |||
Net unrealized gain (loss) on investments | 799 | (803) | |
Restricted | |||
Other comprehensive income (loss): | |||
Net unrealized gain (loss) on investments | $ 11 | $ (9) | |
[1] | The reclassification into retained earnings for the three months ended March 31, 2018 relates to the adoption of Accounting Standards Update (“ASU”) 201601 Financial Instruments - Overall, as amended (“ASU 201601”). The new guidance was effective January 1, 2018, and required equity investments to be measured at fair value with changes in fair value recognized in results of operations rather than the condensed consolidated statements of comprehensive income. | ||
[2] | Income tax expense for the three months ended March 31, 2018 includes $0.3 million of income tax expense related to the adoption of ASU 201802 Income Statement - Reporting Comprehensive Income (“ASU 201802”). The new guidance was effective January 1, 2018, and allowed a reclassification from accumulated other comprehensive loss to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”). |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($) | ||
Income tax expense | $ (632) | [1] |
Scenario, Adjustment | ASU 2018-02 | ||
Income tax expense | $ (300) | |
[1] | Income tax expense for the three months ended March 31, 2018 includes $0.3 million of income tax expense related to the adoption of ASU 201802 Income Statement - Reporting Comprehensive Income (“ASU 201802”). The new guidance was effective January 1, 2018, and allowed a reclassification from accumulated other comprehensive loss to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”). |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Non-controlling Interest | Total |
Beginning Balance (in shares) at Dec. 31, 2017 | 65,897,866 | |||||
Beginning Balance at Dec. 31, 2017 | $ 424,694 | $ 154,324 | $ (1,461) | $ 15,027 | $ 592,584 | |
Increase (Decrease) in Stockholders' Equity | ||||||
Additional ownership interest acquired in Artisan Park, LLC | 297 | (297) | ||||
Capital contribution from non-controlling interest | 64 | 64 | ||||
Stock based compensation expense | 28 | 28 | ||||
Issuance of common stock for officer compensation, net of tax withholding | $ 204 | 204 | ||||
Issuance of common stock for officer compensation, net of tax withholding (in shares) | 9,956 | |||||
Repurchase of common shares | $ (13,695) | (13,695) | ||||
Repurchase of common shares (in shares) | (764,825) | |||||
Adoption of ASU 2018-02 Income Statement - Reporting Comprehensive Income | 313 | (313) | ||||
Other comprehensive income, net of tax | 246 | 246 | ||||
Net income | 757 | (132) | 625 | |||
Ending Balance at Mar. 31, 2018 | $ 425,223 | 155,838 | (832) | (13,695) | 14,662 | 581,196 |
Ending Balance (in shares) at Mar. 31, 2018 | 65,142,997 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Adoption of ASU, net of tax | ASU 2014-09 | 1,140 | $ 1,140 | ||||
Adoption of ASU, net of tax | ASU 2016-01 | (696) | 696 | ||||
Beginning Balance (in shares) at Dec. 31, 2018 | 60,672,034 | 60,672,034 | ||||
Beginning Balance at Dec. 31, 2018 | $ 331,395 | 187,450 | (674) | 14,940 | $ 533,111 | |
Increase (Decrease) in Stockholders' Equity | ||||||
Capital contribution from non-controlling interest | 1,683 | 1,683 | ||||
Stock based compensation expense | $ 13 | 13 | ||||
Repurchase of common shares | (7,073) | (7,073) | ||||
Repurchase of common shares (in shares) | (471,500) | |||||
Other comprehensive income, net of tax | 606 | 606 | ||||
Net income | 1,997 | (17) | 1,980 | |||
Ending Balance at Mar. 31, 2019 | $ 331,408 | $ 189,447 | $ (68) | $ (7,073) | $ 16,606 | $ 530,320 |
Ending Balance (in shares) at Mar. 31, 2019 | 60,200,534 | 60,200,534 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 1,980 | $ 625 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation, depletion and amortization | 2,111 | 2,255 |
Stock based compensation | 13 | 232 |
Net realized losses from sale of investments | 2 | 1,078 |
Unrealized (gain) loss on investments, net | (2,049) | 538 |
Other-than-temporary impairment loss | 63 | |
Deferred income tax benefit | (550) | |
Cost of real estate sold | 1,613 | 3,943 |
Expenditures for and acquisition of real estate to be sold | (7,085) | (3,045) |
Accretion income and other | (361) | (524) |
Loss on disposal of property and equipment | 7 | |
Gain on land contribution | (1,472) | |
Changes in operating assets and liabilities: | ||
Other assets | 4,645 | 596 |
Other liabilities | (1,284) | (2,999) |
Income taxes receivable | 661 | |
Net cash (used in) provided by operating activities | (1,226) | 2,219 |
Cash flows from investing activities: | ||
Expenditures for operating property | (8,834) | (3,914) |
Expenditures for property and equipment | (1,182) | (590) |
Proceeds from the disposition of assets | 5,000 | |
Proceeds from the settlement of insurance claims | 5,798 | |
Purchases of investments - equity securities | (5) | (10,442) |
Purchases of restricted investments | (23) | (20) |
Sales of investments - debt securities | 30,871 | |
Sales of restricted investments | 1,138 | 1,087 |
Maturities of assets held by special purpose entities | 414 | 415 |
Net cash (used in) provided by investing activities | (2,694) | 22,407 |
Cash flows from financing activities: | ||
Capital contribution from non-controlling interest | 64 | |
Capital contribution to unconsolidated affiliate | (254) | |
Repurchase of common shares | (7,073) | (13,695) |
Borrowings on debt | 7,279 | 33 |
Principal payments for debt | (236) | (215) |
Principal payments under finance lease obligation | (4) | |
Debt issuance costs | (21) | (27) |
Net cash used in financing activities | (309) | (13,840) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (4,229) | 10,786 |
Cash, cash equivalents and restricted cash at beginning of the period | 198,073 | 192,451 |
Cash, cash equivalents and restricted cash at end of the period | $ 193,844 | $ 203,237 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | $ 190,821 | $ 202,585 |
Restricted cash included in other assets | 3,023 | 652 |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows | 193,844 | 203,237 |
Cash paid during the period for: | ||
Interest | 5,135 | 5,128 |
Income taxes | 2,005 | |
Non-cash financing and investment activities: | ||
Non-cash contribution to equity method investment | (1,730) | |
Increase in capital contribution from non-controlling interest | 1,683 | 64 |
Increase in Community Development District debt | 1,371 | 15 |
Increase in expenditures for operating properties and property and equipment financed through accounts payable | $ 336 | $ 818 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2019 | |
Nature of Operations | |
Nature of Operations | 1. Nature of Operations The St. Joe Company together with its consolidated subsidiaries (“St. Joe” or the “Company”) is a Florida real estate development, asset management and operating company with real estate assets and operations concentrated in Northwest Florida. Approximately 90% of the Company’s real estate land holdings are located within fifteen miles of the Gulf of Mexico. The Company conducts primarily all of its business in the following four reportable operating segments: 1) residential real estate, 2) hospitality, 3) commercial leasing and sales and 4) forestry. Commencing in the fourth quarter of 2018, the Company’s previously titled “resorts and leisure” segment was retitled “hospitality,” with no effect on the condensed consolidated balance sheets, statements of income, statements of comprehensive income or statements of cash flows for the periods presented . |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10‑Q. Accordingly, certain information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements are not included herein. The unaudited interim condensed consolidated financial statements include the accounts of the Company and all of its majority-owned and controlled subsidiaries and variable interest entities where the Company deems itself the primary beneficiary. Investments in joint ventures (“JV”) and limited partnerships in which the Company is not the primary beneficiary are accounted for by the equity method. All significant intercompany transactions and balances have been eliminated in consolidation. The December 31, 2018 condensed consolidated balance sheet amounts have been derived from the Company’s December 31, 2018 audited consolidated financial statements. Certain prior period amounts in the accompanying condensed consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on the Company’s previously reported total assets and liabilities, stockholders’ equity or net income. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2019. A variable interest entity (“VIE”) is an entity in which a controlling financial interest may be achieved through arrangements that do not involve voting interests. A VIE is required to be consolidated by its primary beneficiary, which is the entity that possesses the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to the entity. The Company consolidates VIEs when it is the primary beneficiary of the VIE, including real estate JVs determined to be VIEs. See Note 9. Real Estate Joint Ventures . The interim condensed consolidated financial statements reflect all normal recurring adjustments that, in the opinion of management, are necessary for fair presentation of the information contained herein. The interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018. The Company adheres to the same accounting policies in preparation of its unaudited interim condensed consolidated financial statements as the Company’s December 31, 2018 annual financial statements, except for recently adopted accounting pronouncements detailed below. As required under GAAP, interim accounting for certain expenses, including income taxes, are based on full year assumptions. For interim financial reporting purposes, income taxes are recorded based upon estimated annual income tax rates. Concentration of Risks and Uncertainties The Company’s real estate investments are concentrated in Northwest Florida in a number of specific development projects. Uncertain economic conditions could have an adverse impact on the Company’s real estate values and could cause the Company to sell assets at depressed values in order to pay ongoing obligations. Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, investments, other receivables, investments held by special purpose entity or entities (“SPE”), and investments in retained interests. The Company deposits and invests cash with local and regional financial institutions, and as of March 31, 2019, these balances exceeded the amount of F.D.I.C. insurance provided on such deposits. In addition, as of March 31, 2019 the company had $7.0 million invested in U.S. Treasury securities, $2.8 million invested in two issuers of corporate debt securities that are non-investment grade, $38.2 million invested in five issuers of preferred stock that are non-investment grade and one issuer of preferred stock that is investment grade, as well as investments of $168.1 million in short term commercial paper from t wenty issuers. Earnings Per Share Basic and diluted earnings per share are calculated by dividing net income attributable to the Company by the average number of common shares outstanding for the period. For the three months ended March 31, 2019 and 2018, basic and diluted average shares outstanding were the same. There were no outstanding common stock equivalents as of March 31, 2019 or March 31, 2018. Non-vested restricted stock is included in outstanding shares at the time of grant. Recently Adopted Accounting Pronouncements Leases In February 2016, the FASB issued ASU 2016‑02, Leases (“ASU 2016-02”) that amended the existing accounting standards for lease accounting, including requiring lessees to recognize both finance and operating leases with terms of more than 12 months on the balance sheet. The accounting applied by a lessor is largely unchanged by this amendment. This amendment also required certain quantitative and qualitative disclosures about leasing arrangements. In January 2018, the FASB issued ASU 2018‑01, which provided an optional transition practical expedient to not evaluate under the new lease standard, existing or expired land easements that were not previously accounted for as leases. In July 2018, the FASB issued ASU 2018-10 that provided clarifications and improvements to ASU 2016-02. In July 2018, the FASB issued ASU 2018-11 that provided entities with an additional and optional transition method to apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the beginning balance of retained earnings in the period of adoption. In December 2018, the FASB issued ASU 2018-20 that provided an accounting policy election for certain narrow-scope improvements for lessors. In March 2019, the FASB issued ASU 2019-01 that provided clarifications and improvements to ASU 2016-02. During the Company’s evaluation of ASU 2016-02, as amended, (“Topic 842”) the following practical expedients and accounting policies with respect to Topic 842 have been elected and/or adopted effective January 1, 2019: · The Company, as lessee and as lessor, will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases or (iii) initial direct costs for any expired or existing leases. · The Company, as lessee, will not apply the recognition requirements of Topic 842 to short-term (twelve months or less) leases. Instead, the Company, as lessee, will recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. · The Company, as lessor, will not separate nonlease components from lease components and, instead, will account for each separate lease component and the nonlease components associated with that lease as a single component if the nonlease components otherwise would be accounted for under Accounting Standards Codification Topic 606, Revenue from Contracts with Customers . The primary reason for this election is related to instances where common area maintenance is, or may be, a component of base rent within a lease agreement. The Company adopted the new guidance, including amendments, as of January 1, 2019 and has elected to implement Topic 842 retrospectively using the cumulative-effect adjustment transition method as of the date of adoption. As a result, prior periods have not been restated. As of the date of adoption a cumulative-effect adjustment was not necessary and the Company recognized an operating lease right-of use assets of $0.4 million and corresponding operating lease liabilities of $0.4 million based on the present value of minimum rental payments related to leases for which the Company is the lessee. The operating lease right-of-use assets and corresponding operating lease liabilities are included within other assets and other liabilities, respectively, on the condensed consolidated balance sheets. There were no adjustments related to the leases for which the Company is the lessor. The adoption of this guidance did not materially impact results of operations or cash flows. Recently Issued Accounting Pronouncements Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016‑13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”), that requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected and requires that credit losses from available-for-sale debt securities be presented as an allowance for credit loss. In November 2018, the FASB issued ASU 2018-19, which clarifies that impairment of receivables from operating leases should be accounted for using lease guidance. This new guidance will be effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted for annual and interim periods beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of this guidance will have on its financial condition, results of operations and cash flows. |
Investment in Real Estate
Investment in Real Estate | 3 Months Ended |
Mar. 31, 2019 | |
Investment in Real Estate | |
Investment in Real Estate | 3. Investment in Real Estate Real estate by property type and segment includes the following: March 31, December 31, 2019 2018 Development property: Residential real estate $ 110,819 $ 105,323 Hospitality 5,429 3,726 Commercial leasing and sales 78,949 73,128 Forestry 2,144 2,144 Corporate 2,557 2,497 Total development property 199,898 186,818 Operating property: Residential real estate 7,344 7,344 Hospitality 93,046 93,046 Commercial leasing and sales 113,189 111,471 Forestry 20,141 19,765 Other 50 50 Total operating property 233,770 231,676 Less: Accumulated depreciation 68,953 67,500 Total operating property, net 164,817 164,176 Investment in real estate, net $ 364,715 $ 350,994 Development property consists of land the Company is developing or intends to develop for sale or future operations and includes direct costs associated with the land, development and construction costs and indirect costs. Residential real estate includes residential communities. Hospitality development property consists of the improvement and expansion of existing beach club property, land and construction costs related to two gulf-front vacation rental homes and development costs and improvements for other property. Commercial leasing and sales development property primarily consists of land and development costs for commercial and industrial uses, including the Pier Park Crossings JV, land holdings near the Northwest Florida Beaches International Airport and Port of Port St. Joe. Development property in the hospitality and commercial leasing and sales segments will be reclassified as operating property as it is placed into service. Operating property includes property that the Company uses for operations and activities. Residential real estate operating property consists primarily of residential utility assets. The hospitality operating property includes the WaterColor Inn, WaterSound Inn, golf courses, a beach club, marinas and certain vacation rental properties. Commercial leasing and sales operating property includes property developed or purchased by the Company and used for retail and commercial rental purposes, including property in the Pier Park North JV, VentureCrossings and Beckrich Office Park, as well as other properties. Forestry operating property includes the Company’s timberlands. Operating property may be sold in the future as part of the Company’s principal real estate business. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments | |
Investments | 4. Investments Available-For-Sale Investments Investments classified as available-for-sale securities were as follows: March 31, 2019 Gross Unrealized Gross Unrealized Amortized Cost Gains (Losses) Fair Value Investments - debt securities: U.S. Treasury securities $ 6,978 $ 1 $ — $ 6,979 Corporate debt securities 2,927 — (89) 2,838 9,905 1 (89) 9,817 Restricted investments: Short-term bond 2,210 5 — 2,215 Money market fund 113 — — 113 2,323 5 — 2,328 $ 12,228 $ 6 $ (89) $ 12,145 December 31, 2018 Gross Unrealized Gross Unrealized Amortized Cost Gains (Losses) Fair Value Investments - debt securities: U.S. Treasury securities $ 6,936 $ 1 $ — $ 6,937 Corporate debt securities 2,908 — (887) 2,021 9,844 1 (887) 8,958 Restricted investments: Short-term bond 3,274 — (9) 3,265 Money market fund 167 — — 167 3,441 — (9) 3,432 $ 13,285 $ 1 $ (896) $ 12,390 During the three months ended March 31, 2019, net realized losses from the sale of available-for-sale securities were less than $0.1 million, proceeds from the sale of available-for-sale securities were $1.1 million and purchases of available-for-sale securities were less than $0.1 million. During the three months ended March 31, 2018, net realized losses from the sale of available for-sale securities were $1.1 million, proceeds from the sale of available-for-sale securities were $32.0 million and purchases of available-for sale securities were less than $0.1 million. The following table provides the available-for-sale investments unrealized loss position and related fair values: March 31, 2019 Less Than 12 Months 12 Months or Greater Unrealized Unrealized Fair Value Losses Fair Value Losses Investments - debt securities: Corporate debt securities $ — $ — $ 2,838 $ 89 December 31, 2018 Less Than 12 Months 12 Months or Greater Unrealized Unrealized Fair Value Losses Fair Value Losses Investments - debt securities: Corporate debt securities $ — $ — $ 1,843 $ 887 Restricted investments: Short-term bond — — 3,265 9 $ — $ — $ 5,108 $ 896 As of March 31, 2019, the Company had unrealized losses of $0.1 million related to corporate debt securities. The Company had unrealized losses of $0.9 million as of December 31, 2018 related to corporate debt securities and restricted investments. As of March 31, 2019 and December 31, 2018, the Company did not intend to sell the investments with a material unrealized loss and it is more likely than not that the Company will not be required to sell any of these securities prior to their anticipated recovery, which could be maturity. During the three months ended March 31, 2018, the Company determined unrealized losses related to its corporate debt securities were other-than-temporarily impaired and recorded an impairment of $0.1 million for credit-related loss in investment income, net in the Company’s condensed consolidated statements of income. The amortized cost and estimated fair value of investments - debt securities and restricted investments classified as available-for-sale, by contractual maturity are shown in the following table. Actual maturities may differ from contractual maturities since certain borrowers have the right to call or prepay obligations. March 31, 2019 Amortized Cost Fair Value Due in one year or less $ 9,905 $ 9,817 Restricted investments 2,323 2,328 $ 12,228 $ 12,145 Investments - Equity Securities As of March 31, 2019 and December 31, 2018, investments - equity securities included $38.2 million and $36.1 million, respectively, of preferred stock investments recorded at fair value. During the three months ended March 31, 2019 the Company had an unrealized gain on investments - equity securities of $2.0 million, compared to an unrealized loss on investments – equity securities of $0.5 million during the three months ended March 31, 2018, which were included within investment income, net on the condensed consolidated statements of income. Investment Management Agreement Mr. Bruce R. Berkowitz is the Chairman of the Company’s Board of Directors (the “Board”). He is the Manager of, and controls entities that own and control, Fairholme Holdings, LLC (“Fairholme”), which wholly owns Fairholme Capital Management, L.L.C. (“FCM”, an investment advisor registered with the SEC) and the Fairholme Trust Company, L.L.C. (“FTC”, a non-depository trust company regulated by the Florida Office of Financial Regulation). Mr. Berkowitz is the Chief Investment Officer of FCM, and the Chief Executive Officer and a director of FTC. Since April 2013, FCM has provided investment advisory services to the Company directly, or more recently, as the sub-advisor to FTC. Neither FCM nor FTC receives any compensation for services as the Company’s investment advisor. As of March 31, 2019, clients of FCM and FTC beneficially owned approximately 41.47% of the Company’s common stock and Fairholme, including Mr. Berkowitz and clients of FCM and FTC, collectively beneficially owned 44.07% of the Company’s common stock. FCM and its client, The Fairholme Fund, a series of the Fairholme Funds, Inc., may be deemed affiliates of the Company. Both Mr. Cesar Alvarez and Mr. Howard Frank are members of the Company’s Board and also serve as directors of Fairholme Funds, Inc. Mr. Alvarez is also a director of FTC. Pursuant to the terms of an Investment Management Agreement, as amended, with the Company (the “Investment Management Agreement”), FTC agreed to supervise and direct the investments of investment accounts established by the Company in accordance with the investment guidelines and restrictions approved by the Investment Committee of the Company’s Board. The investment guidelines are set forth in the Investment Management Agreement and require that, as of the date of any investment: (i) no more than 15% of the investment account may be invested in securities of any one issuer (excluding the U.S. Government), (ii) any investment in any one issuer (excluding the U.S. Government) that exceeds 10% of the investment account, but not 15%, requires the consent of at least two members of the Investment Committee, (iii) 25% of the investment account must be held in cash or cash equivalents, (iv) the investment account is permitted to be invested in common equity securities; however, common stock investments shall be limited to exchange-traded common equities, shall not exceed 5% ownership of a single issuer and, cumulatively, the common stock held in the Company’s investment portfolio shall not exceed $100.0 million market value, and (v) the aggregate market value of investments in common stock, preferred stock or other equity investments cannot exceed 25% of the market value of the Company’s investment portfolio at the time of purchase. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Financial Instruments and Fair Value Measurements | |
Financial Instruments and Fair Value Measurements | 5. Financial Instruments and Fair Value Measurements Fair Value Measurements The financial instruments measured at fair value on a recurring basis are as follows: March 31, 2019 Total Fair Level 1 Level 2 Level 3 Value Cash equivalents: Money market funds $ 5,711 $ — $ — $ 5,711 Commercial paper 168,076 — — 168,076 173,787 — — 173,787 Investments - debt securities: U.S. Treasury securities 6,979 — — 6,979 Corporate debt securities — 2,838 — 2,838 6,979 2,838 — 9,817 Investments - equity securities: Preferred stock 10,755 27,431 — 38,186 Restricted investments: Short-term bond 2,215 — — 2,215 Money market fund 113 — — 113 2,328 — — 2,328 $ 193,849 $ 30,269 $ — $ 224,118 December 31, 2018 Total Fair Level 1 Level 2 Level 3 Value Cash equivalents: Money market funds $ 43,346 $ — $ — $ 43,346 Commercial paper 107,586 — — 107,586 U.S. Treasury securities 29,998 — — 29,998 180,930 — — 180,930 Investments - debt securities: U.S. Treasury securities 6,937 — — 6,937 Corporate debt securities — 2,021 — 2,021 6,937 2,021 — 8,958 Investments - equity securities: Preferred stock 10,470 25,662 — 36,132 Restricted investments: Short-term bond 3,265 — — 3,265 Money market fund 167 — — 167 3,432 — — 3,432 $ 201,769 $ 27,683 $ — $ 229,452 Money market funds, commercial paper, U.S. Treasury securities, certain preferred stock investments and short-term bonds are measured based on quoted market prices in an active market and categorized within Level 1 of the fair value hierarchy. Money market funds and commercial paper with a maturity date of 90 days or less from the date of purchase are classified as cash equivalents in the Company’s condensed consolidated balance sheets. The Company’s corporate debt securities and certain preferred stock investments are not traded on a nationally recognized exchange, but are traded in the U.S. over-the-counter market where there is less trading activity and the investments are measured primarily using pricing data from external pricing services that report prices observed for recently executed market transactions. For these reasons, the Company has determined that corporate debt securities and certain preferred stock investments are categorized as Level 2 financial instruments since their fair values were determined from market inputs in an inactive market. Restricted investments are included within other assets on the condensed consolidated balance sheets and include certain of the surplus assets that were transferred from the Company’s Pension Plan to a suspense account in the Company’s 401(k) Plan in December 2014. The Company has retained the risks and rewards of ownership of these assets; therefore, the assets held in the suspense account are included in the Company’s condensed consolidated financial statements until they are allocated to participants. As of March 31, 2019 and December 31, 2018, the assets held in the suspense account were invested in Vanguard Money Market Funds, which invest in short-term, high quality securities or short-term U.S. government securities and seek to provide current income and preserve shareholders’ principal investment and a Vanguard Short-Term Bond Fund, which invests in money market instruments and short-term high quality bonds, including asset-backed, government, and investment grade corporate securities with an expected maturity of 0‑3 years. The Vanguard Money Market Funds and Vanguard Short-Term Bond Fund are measured based on quoted market prices in an active market and categorized within Level 1 of the fair value hierarchy. The Company’s Retirement Plan Investment Committee is responsible for investing decisions and allocation decisions of the suspense account. Refer to Note 8. Other Assets . Fair Value of Financial Instruments The Company uses the following methods and assumptions in estimating fair value for financial instruments: · The fair value of the investments held by SPEs - time deposit is based on the present value of future cash flows at the current market rate. · The fair value of the investments held by SPEs - U.S. Treasury securities are measured based on quoted market prices in an active market. · The fair value of the senior notes held by SPE is based on the present value of future cash flows at the current market rate. The carrying amount and fair value, measured on a nonrecurring basis, of the Company’s financial instruments were as follows: March 31, 2019 December 31, 2018 Carrying Carrying value Fair value Level value Fair value Level Assets Investments held by SPEs: Time deposit $ 200,000 $ 200,000 3 $ 200,000 $ 200,000 3 U.S. Treasury securities and cash $ 7,011 $ 6,809 1 $ 7,384 $ 7,092 1 Liabilities Senior Notes held by SPE $ 176,837 $ 196,106 3 $ 176,775 $ 193,293 3 Investments and Senior Notes Held by Special Purpose Entities In connection with a real estate sale in 2014, the Company received consideration including a $200.0 million fifteen-year installment note (the “Timber Note”) issued by Panama City Timber Finance Company, LLC. The Company contributed the Timber Note and assigned its rights as a beneficiary under a letter of credit to Northwest Florida Timber Finance, LLC. Northwest Florida Timber Finance, LLC monetized the Timber Note by issuing $180.0 million aggregate principal amount of its 4.8% Senior Secured Notes due in 2029 (the “Senior Notes”) at an issue price of 98.5% of face value to third party investors. The investments held by Panama City Timber Finance Company, LLC as of March 31, 2019, consist of a $200.0 million time deposit that, subsequent to April 2, 2014, pays interest at 4.0% and matures in March 2029, U.S. Treasuries of $6.6 million and cash of $0.4 million. The Senior Notes held by Northwest Florida Timber Finance, LLC as of March 31, 2019 consist of $176.8 million, net of the $3.2 million discount and debt issuance costs. Panama City Timber Finance Company, LLC and Northwest Florida Timber Finance, LLC are VIEs, which the Company consolidates as the primary beneficiary of each entity. |
Hurricane Michael
Hurricane Michael | 3 Months Ended |
Mar. 31, 2019 | |
Hurricane Michael | |
Hurricane Michael | 6. Hurricane Michael On October 10, 2018, Hurricane Michael made landfall in the Florida Panhandle, which resulted in widespread damage to the area. The majority of the Company’s properties incurred minimal or no damage; however the Company’s Bay Point Marina in Bay County and Port St. Joe Marina in Gulf County, as well as certain timber and commercial leasing assets were impacted. The marinas suffered significant damage requiring long-term restoration and will remain closed during the reconstruction of significant portions of these assets, which is currently underway. The Company maintains property and business interruption insurance, subject to certain deductibles, and is currently assessing claims under such policies; however, the timing and amount of insurance proceeds are uncertain and may not be sufficient to cover all losses. Timing differences are likely to exist between the impairment losses, capital expenditures made to repair or restore properties and recognition and receipt of insurance proceeds reflected in the Company’s financial statements. GAAP guidance provides that property damaged by a natural disaster be evaluated for impairment loss in the period the loss occurs, recording an insurance receivable for the lesser of the expected net insurance recovery or the net book value of damaged assets that are planned to be replaced. Insurance recoveries for business interruption, clean-up and demolition costs, post-event costs or property damage in excess of net book value will be recognized in income in the period received or when all contingencies associated with the recoveries are resolved and the insurance companies have committed to a recovery amount. The impairment loss represents the Company’s estimate of property damage. The Company is continuing to make a full assessment of the extent of the impact. During the fourth quarter of 2018, the Company recorded a loss on disposal of assets related to the net book value of the marinas and certain forestry and commercial leasing assets. During the three months ended March 31, 2019, the Company recognized $0.3 million of insurance proceeds, included in other income, net on the condensed consolidated statements of income. As of March 31, 2019 and December 31, 2018, accounts receivable, net included $0.9 million and $6.7 million, respectively, related to insurance proceeds the Company believes is probable of receipt. The insurance proceeds receivable are included in other assets on the condensed consolidated balance sheets. During the three months ended March 31, 2019, the Company has incurred costs of $0.3 million for additional hurricane expenses for repairs, clean-up costs, landscape repairs, demolition costs, professional fees and temporary housing for employees included in other income, net on the condensed consolidated statements of income. No insurance recoveries have been recorded for these costs, however some of these costs may be covered by business interruption or property insurance. Costs incurred due to business interruption, primarily at the marinas, are currently being evaluated. The Company does not expect revenue at these locations until the properties have been rebuilt, but will incur costs for employee retention and property maintenance. As of March 31, 2019, no insurance proceeds have been recorded related to business interruption insurance. The Company expects that its results of operations related to the marinas and timber assets will be impacted in the near term. Subsequent to March 31, 2019, the Company received the $0.9 million of insurance proceeds receivable as of March 31, 2019 from its insurance carriers for property damage . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases | |
Leases | 7. Leases Leasing revenue consists of long term rental revenue from retail, office and commercial property, cell towers and other assets, which is recognized as earned, using the straight-line method over the life of each lease. The components of leasing revenue are as follows: Three Months Ended March 31, 2019 Leasing revenue Lease payments $ 2,680 Variable lease payments 826 Total leasing revenue $ 3,506 Minimum future base rental revenue on non-cancelable leases subsequent to March 31, 2019, for the next five years ending December 31 are: 2019 $ 8,480 2020 10,852 2021 9,788 2022 8,995 2023 7,110 $ 45,225 As of March 31, 2019, the Company leased certain office equipment under a finance lease and had operating leases for property and equipment used in hospitality operations with remaining lease terms up to the year 2024. Certain leases include options to purchase, terminate or renew for one or more years, which are included in the lease term used to establish right-of-use assets and lease liabilities when it is reasonably certain that the option will be exercised. Finance lease right-of-use assets are included within property, plant and equipment and operating lease right-of-use assets are included within other assets on the condensed consolidated balance sheets, which represent the Company’s right to use an underlying asset during a lease term for leases in excess of one year. Corresponding finance lease liability and operating lease liabilities are included within other liabilities on the condensed consolidated balance sheets and are related to the Company’s obligation to make lease payments for leases in excess of one year. Prior to the adoption ASU 2016-02 on January 1, 2019 lease assets and liabilities for operating leases were not recognized. The Company uses its incremental borrowing rate to determine the present value of the lease payments since the rate implicit in each lease is not readily determinable. The components of lease expense are as follows: Three Months Ended March 31, 2019 Lease cost Finance lease cost: Amortization of right-of-use assets $ 4 Interest on lease liability 1 Operating lease cost 52 Short-term lease cost 64 Total lease cost $ 121 Other information Weighted-average remaining lease term - finance lease (in years) 4.9 Weighted-average remaining lease term - operating leases (in years) 1.9 Weighted-average discount rate - finance lease 5.0 % Weighted-average discount rate - operating leases 5.0 % The aggregate payments of finance lease liability subsequent to March 31, 2019, for the years ending December 31 are: 2019 $ 41 2020 54 2021 54 2022 54 2023 54 Thereafter 10 Total 267 Less imputed interest (31) Total finance lease liability $ 236 The aggregate payments of operating lease liabilities subsequent to March 31, 2019, for the years ending December 31 are: 2019 $ 141 2020 145 2021 78 Total 364 Less imputed interest (20) Total operating lease liabilities $ 344 |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2019 | |
Other Assets | |
Other Assets | 8. Other Assets Other assets consist of the following: March 31, December 31, 2019 2018 Restricted investments $ 2,328 $ 3,432 Accounts receivable, net 7,373 14,061 Homesite sales receivable 2,691 2,977 Claim settlement receivable 2,699 2,679 Notes receivable 1,791 2,265 Income tax receivable 3,253 3,914 Prepaid expenses 6,727 6,751 Straight-line rent 3,534 3,581 Operating lease right-of-use assets 344 — Investment in unconsolidated joint venture 3,088 1,105 Other assets 6,133 5,069 Retained interest investments 11,645 11,536 Accrued interest receivable for Senior Notes held by SPE 935 2,938 Total other assets $ 52,541 $ 60,308 Restricted Investments Restricted investments include certain of the surplus assets that were transferred from the Company’s Pension Plan to a suspense account in the Company’s 401(k) Plan in December 2014. The Company has retained the risks and rewards of ownership of these assets; therefore, the assets held in the suspense account are included in the Company’s condensed consolidated financial statements until they are allocated to participants. The Company expenses the fair value of the assets at the time the assets are allocated to participants, which is expected to be allocated up to the next two years. During both the three months ended March 31, 2019 and 2018, the Company recorded an expense of $1.1 million, for the fair value of the assets, less expenses that were allocated to participants. Any gain or loss on these assets is reflected in the Company’s condensed consolidated statements of income and was less than a $0.1 million loss for the three months ended March 31, 2019 and 2018. Refer to Note 5. Financial Instruments and Fair Value Measurements . Accounts Receivable, Net As of March 31, 2019 and December 31, 2018, accounts receivable, net includes $0.9 million and $6.7 million of insurance proceeds receivable related to Hurricane Michael that the Company believes are probable of receipt. During the three months ended March 31, 2019, the Company received $5.8 million of insurance proceeds receivable from its insurance carriers for property damage. See Note 6. Hurricane Michael for additional information. Homesite Sales Receivable Homesite sales receivable from contracts with customers include estimated homesite residuals and certain estimated fees that are recognized as revenue at the time of sale to homebuilders, subject to constraints. Any change in circumstances from the estimated amounts will be updated at each reporting period. The receivable will be collected as the homebuilders build the homes and sell to retail consumers, which can occur over multiple years. The following table presents the changes in homesite sales receivable: Increases Due To Balance Revenue Recognized Decreases Due to Balance January 1, 2019 for Homesites Sold Amounts Received March 31, 2019 Homesite sales receivable $ 2,977 $ 138 $ (424) $ 2,691 Increases Due To Balance Revenue Recognized Decreases Due to Balance January 1, 2018 for Homesites Sold Amounts Received March 31, 2018 Homesite sales receivable $ 2,585 $ 629 $ (450) $ 2,764 Claim Settlement Receivable The remaining settlement amount of $2.7 million related to the Deepwater Horizon oil spill is due in October 2019. Notes Receivable Notes receivable consists of the following: March 31, December 31, 2019 2018 Pier Park Community Development District notes, non-interest bearing, due September 2022 $ 803 $ 803 Interest bearing homebuilder note, secured by the real estate sold — 5.5% interest rate, due September 2019 416 749 Interest bearing homebuilder note, secured by the real estate sold — 5.5% interest rate, due June 2019 337 422 Interest bearing homebuilder note, secured by the real estate sold — 6.3% interest rate, due March 2020 135 150 Various mortgage notes, secured by certain real estate, bearing interest at various rates 100 141 Total notes receivable $ 1,791 $ 2,265 The Company evaluates the carrying value of the notes receivable and the need for an allowance for doubtful notes receivable at each reporting date. As of March 31, 2019 and December 31, 2018, there was no allowance for doubtful notes receivable. Retained Interest Investments The Company has a beneficial interest in certain bankruptcy-remote qualified SPEs used in the installment sale monetization of certain sales of timberlands in 2007 and 2008. The SPEs’ assets are not available to satisfy the Company’s liabilities or obligations and the liabilities of the SPEs are not the Company’s liabilities or obligations. Therefore, the SPEs’ assets and liabilities are not consolidated in the Company’s condensed consolidated financial statements as of March 31, 2019 and December 31, 2018. The Company’s continuing involvement with the SPEs is the receipt of the net interest payments and the remaining principal of approximately $16.8 million to be received at the end of the installment notes’ fifteen year maturity period, in 2022 through 2024. The Company has a beneficial or retained interest investment related to these SPEs of $11.6 million and $11.5 million as of March 31, 2019 and December 31, 2018, respectively, recorded in other assets on the Company’s condensed consolidated balance sheets. |
Real Estate Joint Ventures
Real Estate Joint Ventures | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate Joint Ventures | |
Real Estate Joint Ventures | 9. Real Estate Joint Ventures The Company enters into real estate JVs, from time to time, for the purpose of developing real estate in which the Company may or may not have a controlling financial interest. GAAP requires consolidation of VIEs in which an enterprise has a controlling financial interest and is the primary beneficiary. A controlling financial interest will have both of the following characteristics: (a) the power to direct the VIE activities that most significantly impact economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company examines specific criteria and uses judgment when determining whether the Company is the primary beneficiary and must consolidate a VIE. The Company continues to assess whether it is the primary beneficiary on an ongoing basis. Consolidated Real Estate Joint Ventures Origins Crossings JV Origins Crossings JV was created in January 2019, when the Company entered into a JV agreement to develop, manage and lease apartments in Watersound, Florida. The JV parties are working together to design, develop and construct a 217 unit apartment community. The community will be located on land near the entrance to the Watersound Origins community that is currently owned by the Company and will be contributed to the JV. As of March 31, 2019, the Company owned a 75.0% equity interest in the consolidated JV. The Company’s partners are responsible for the day-to-day activities of the JV. However, the Company has significant involvement in the design of the development and approves all major decisions, including project development, annual budgets and financing. The Company determined Origins Crossings JV is a VIE and that the Company is the VIE’s primary beneficiary as of March 31, 2019. Pier Park Crossings JV In April 2017, the Company entered into a JV agreement to develop, manage and lease apartments in Panama City Beach, Florida. The JV parties are working together to develop and construct a 240 unit apartment community. The community is located on land in the Pier Park area that was contributed to the JV by the Company. As of March 31, 2019 and December 31, 2018, the Company owned a 75.0% equity interest in the consolidated JV. The Company’s partners are responsible for the day-to-day activities of the JV. However, the Company has significant involvement in the design of the development and approves all major decisions, including project development, annual budgets and financing. The Company determined Pier Park Crossings JV is a VIE and that the Company is the VIE’s primary beneficiary as of March 31, 2019 and December 31, 2018. Windmark JV In December 2016, the Company sold all of its interest in the Windmark Beach project to Windmark JV. As of March 31, 2019 and December 31, 2018, the Company owned a 49.0% equity interest in Windmark JV. A wholly owned subsidiary of the Company is the managing member of Windmark JV and runs its day-to-day operations. Windmark JV owns and its members make major decisions related to the management and development of the Windmark Beach project. The Company determined Windmark JV is a VIE and that the Company is the VIE’s primary beneficiary as of March 31, 2019 and December 31, 2018. Pier Park North JV During 2012, the Company entered into a JV agreement with a partner to develop a retail center at Pier Park North. As of March 31, 2019 and December 31, 2018, the Company owned a 60.0% equity interest in the consolidated JV. The Company’s partner is responsible for the day-to-day activities of the JV. However, the Company has significant involvement in the design of the development and approves all major decisions, including project development, annual budgets and financing. The Company determined the Pier Park North JV is a VIE and that the Company is the VIE’s primary beneficiary as of March 31, 2019 and December 31, 2018. Unconsolidated Joint Ventures Pier Park TPS, LLC Pier Park TPS, LLC (“Pier Park TPS JV”) was created in April 2018, when the Company entered into a JV agreement to develop and operate a 124 room hotel in Panama City Beach, Florida. The hotel will be located on land in the Pier Park area that the Company contributed to the JV on January 14, 2019 with a fair value of $1.7 million. In addition, during the three months ended March 31, 2019, the Company contributed cash of $0.2 million and mitigation bank credits of $0.1 million. As of December 31, 2018, the Company had an investment in the JV project of $1.1 million that was contributed to the JV during the first quarter of 2019. As of March 31, 2019 and December 31, 2018, the investment in the unconsolidated JV was $3.1 million and $1.1 million, respectively, which is included in other assets on the condensed consolidated balance sheets. The hotel is currently under construction and the Company did not recognize any income or loss on this investment for the three months ended March 31, 2019. As of March 31, 2019 and December 31, 2018, the Company owned a 50.0% equity interest in the JV. The Company’s partner is responsible for the day-to-day activities of the JV. The Company has determined that Pier Park TPS JV is a VIE, but that the Company is not the primary beneficiary since it does not have the power to direct the activities that most significantly impact the economic performance of the JV. The Company’s investment in Pier Park TPS JV is accounted for using the equity method. See Note 18. Commitments and Contingencies for additional information related to debt guaranteed by the Company. Summarized financial information for Pier Park TPS JV is as follows: March 31, December 31, 2019 2018 BALANCE SHEETS: Investment in real estate $ 4,614 $ 285 Cash and cash equivalents 2,369 64 Total assets $ 6,983 $ 349 Other liabilities $ 805 $ 3 Equity 6,178 346 Total liabilities and equity $ 6,983 $ 349 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt | |
Debt | 10. Debt, Net Debt consists of the following: March 31, 2019 December 31, 2018 Unamortized Unamortized Discount and Discount and Debt Issuance Debt Issuance Principal Costs Net Principal Costs Net PPN JV Loan, due November 2025, bearing interest at 4.1% $ 46,199 $ 429 $ 45,770 $ 46,423 $ 446 $ 45,977 Pier Park Crossings JV Loan, insured by HUD, due June 2060, bearing interest at 4.0% 21,697 1,107 20,590 15,399 1,114 14,285 Community Development District debt, secured by certain real estate or other collateral, due May 2023 through May 2039, bearing interest at 3.6% to 6.0% 7,695 — 7,695 6,324 — 6,324 Pier Park Outparcel Construction Loan, due March 2027, bearing interest at LIBOR plus 1.7% (effective rate of 4.2% at March 31, 2019) 1,574 16 1,558 1,585 16 1,569 WaterColor Crossings Construction Loan, due February 2029, bearing interest at LIBOR plus 1.7% (effective rate of 4.2% at March 31, 2019) 1,478 25 1,453 1,245 26 1,219 Beach Homes Loan, due May 2029, bearing interest at LIBOR plus 1.7% (effective rate of 4.2% at March 31, 2019) 747 21 726 — — — Total debt $ 79,390 $ 1,598 $ 77,792 $ 70,976 $ 1,602 $ 69,374 In October 2015, the Pier Park North JV entered into a $48.2 million loan (the “PPN JV Loan”), secured by a first lien on, and security interest in, a majority of the Pier Park North JV’s property. In connection with the PPN JV Loan, the Company entered into a limited guarantee in favor of the lender, based on its percentage ownership of the JV. In addition, the guarantee can become full recourse in the case of any fraud or intentional misrepresentation by the Pier Park North JV; any voluntary transfer or encumbrance of the property in violation of the due-on-sale clause in the security instrument; upon commencement of voluntary bankruptcy or insolvency proceedings and upon breach of covenants in the security instrument. In May 2018, the Pier Park Crossings JV entered into a $36.6 million loan, insured by the U.S. Department of Housing and Urban Development (“HUD”), to finance the construction of apartments in Panama City Beach, Florida (the “PPC JV Loan”). The PPC JV Loan provides for interest only payments during the first twenty-four months and monthly principal and interest payments thereafter through maturity in June 2060. The PPC JV Loan may not be prepaid prior to July 1, 2020. From July 1, 2020 through June 30, 2030, a prepayment premium is due to the lender of 1.0% - 10.0% of any prepaid principal. The PPC JV Loan is secured by the Pier Park Crossings JV’s real property and the assignment of rents and leases. Community Development District (“CDD”) bonds financed the construction of infrastructure improvements at some of the Company’s communities. The principal and interest payments on the bonds are paid by assessments on the properties benefited by the improvements financed by the bonds. The Company has recorded a liability for CDD debt that is associated with platted property, which is the point at which it becomes fixed or determinable. Additionally, the Company has recorded a liability for the portion of the CDD debt that is associated with unplatted property if it is probable and reasonably estimable that the Company will ultimately be responsible for repayment. The Company’s total CDD debt assigned to property it owns was $19.9 million as of each March 31, 2019 and December 31, 2018. The Company pays interest on this total outstanding CDD debt. In March 2017, a wholly owned subsidiary of the Company entered into a $1.6 million construction loan to finance the construction of a commercial leasing property located in Panama City Beach, Florida (the “Pier Park Outparcel Construction Loan”). The Pier Park Outparcel Construction Loan provides for monthly principal and interest payments with a final balloon payment at maturity. The Pier Park Outparcel Construction Loan is secured by the real property, assignment of rents and the security interest in the rents and personal property. In February 2018, a wholly owned subsidiary of the Company entered into a $1.9 million construction loan to finance the construction of a commercial leasing property located in Santa Rosa Beach, Florida (the “WaterColor Crossings Construction Loan”). The WaterColor Crossings Construction Loan provides for interest only payments during the first twelve months and monthly principal and interest payments thereafter with a final balloon payment at maturity. The WaterColor Crossings Construction Loan is secured by the real property, assignment of rents and the security interest in the rents and personal property. In connection with the WaterColor Crossings Construction Loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the WaterColor Crossings Construction Loan. In May 2018, a wholly owned subsidiary of the Company entered into a $1.7 million construction loan to finance the construction of two beach homes located in Panama City Beach, Florida (the “Beach Homes Loan”). The Beach Homes Loan provides for interest only payments during the first twelve months and monthly principal and interest payments thereafter with a final balloon payment at maturity. The Beach Homes Loan is secured by the real property, assignment of rents and the security interest in the rents and personal property. In connection with the Beach Homes Loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Beach Homes Loan. The aggregate maturities of debt subsequent to March 31, 2019, for the years ending December 31 are: March 31, 2019 2019 $ 1,457 2020 1,968 2021 2,174 2022 2,189 2023 2,212 Thereafter 69,390 $ 79,390 |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities | |
Other Liabilities | 11. Other Liabilities Other liabilities consist of the following: March 31, December 31, 2019 2018 Accounts payable $ 9,186 $ 10,148 Finance lease liability 236 — Operating lease liabilities 344 — Accrued compensation 1,761 3,112 Other accrued liabilities 3,824 2,560 Deferred revenue 17,378 17,478 Club initiation fees 5,976 5,676 Club membership deposits 4,156 4,286 Advance deposits 2,795 1,277 Accrued interest expense for Senior Notes held by SPE 713 2,850 Total other liabilities $ 46,369 $ 47,387 Other accrued liabilities include $1.2 million of accrued property taxes as of March 31, 2019, which are generally paid annually in November. As of December 31, 2018 the Company had no accrued property taxes. Deferred revenue as of March 31, 2019 and December 31, 2018 includes $12.5 million related to a 2006 agreement pursuant to which the Company agreed to sell land to the Florida Department of Transportation. Revenue is recognized when title to a specific parcel is legally transferred. Club initiation fees are recognized as revenue over the estimated average duration of membership, which is evaluated periodically. The following table presents the changes in club initiation fees related to contracts with customers: Balance Increases Due To Decreases Due to Balance January 1, 2019 Cash Received Revenue Recognized March 31, 2019 Contract liabilities Club initiation fees $ 5,676 $ 753 $ (453) $ 5,976 Balance Increases Due To Decreases Due to Balance January 1, 2018 Cash Received Revenue Recognized March 31, 2018 Contract liabilities Club initiation fees $ 5,199 $ 253 $ (272) $ 5,180 Advance deposits consist of deposits received on hotel rooms and lodging rentals. Advance deposits are recorded as other liabilities in the condensed consolidated balance sheets without regard to whether they are refundable and are recognized as income at the time the service is provided for the related deposit. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes | |
Income Taxes | 12. Income Taxes Income tax expense (benefit) attributable to income from operations differed from the amount computed by applying the statutory federal income tax rate of 21% as of March 31, 2019 and 2018 to pre-tax income or loss as a result of the following: Three Months Ended March 31, 2019 2018 Tax at the federal statutory rate $ 555 $ 107 State income taxes (net of federal benefit) 116 22 2017 qualified timber gains at the federal statutory rate of 23.8% (1) — (345) Decrease in valuation allowance — (33) Other (10) — Total income tax expense (benefit) $ 661 $ (249) (1) The Bipartisan Budget Act of 2018 was signed into law on February 9, 2018 (the “2018 Act”). The 2018 Act retroactively re-established the preferential 23.8% tax rate on C Corporation Qualified Timber Gains, extending its applicability from 2016 to include the 2017 tax year. The benefit of this retroactive tax rate reduction is included in 2018 income from continuing operations. Significant judgment is required in evaluating the Company's uncertain tax positions and determining its provision for income taxes. The Company regularly assesses the likelihood of adverse outcomes resulting from potential examinations to determine the adequacy of its provision for income taxes and applies a “more-likely-than-not” in determining the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return . The Company has not identified any unrecognized tax benefits as of either March 31, 2019 or December 31, 2018. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | 13. Accumulated Other Comprehensive Loss Following is a summary of the changes in the balances of accumulated other comprehensive loss, which is presented net of tax: Unrealized Gain on Available-for- Sale Securities Accumulated other comprehensive loss at December 31, 2018 $ (674) Other comprehensive income before reclassifications 604 Amounts reclassified from accumulated other comprehensive loss 2 Other comprehensive income 606 Accumulated other comprehensive loss at March 31, 2019 $ (68) Following is a summary of the tax effects allocated to other comprehensive income: Three Months Ended March 31, 2019 Before- Tax Net-of- Tax Amount Expense Tax Amount Unrealized gain on investments - debt securities and restricted investments: Unrealized gain on available-for-sale investments $ 799 $ (203) $ 596 Unrealized gain on restricted investments 11 (3) 8 Reclassification adjustment for net loss included in earnings 2 — 2 Net unrealized gain 812 (206) 606 Other comprehensive income $ 812 $ (206) $ 606 Three Months Ended March 31, 2018 Before- Tax Benefit or Net-of- Tax Amount (Expense) Tax Amount Unrealized loss on investments - debt securities and restricted investments: Unrealized loss on available-for-sale investments $ (803) $ 204 $ (599) Unrealized loss on restricted investments (9) 2 (7) Reclassification adjustment for net loss included in earnings 1,078 (273) 805 Reclassification adjustment for other-than-temporary impairment loss included in earnings 63 (16) 47 Reclassification into retained earnings for the adoption of ASU 2016-01 (1) 932 (236) 696 Reclassification into retained earnings for the adoption of ASU 2018-02 (2) — (313) (313) Net unrealized gain 1,261 (632) 629 Other comprehensive income $ 1,261 $ (632) $ 629 (1) The reclassification into retained earnings relates to the adoption of ASU 2016‑01. The new guidance was effective January 1, 2018, and required equity investments to be measured at fair value with changes in fair value recognized in results of operations rather than the condensed consolidated statements of comprehensive income. (2) The reclassification into retained earnings relates to the adoption of ASU 2018‑02. The new guidance was effective January 1, 2018, and allowed a reclassification from accumulated other comprehensive loss to retained earnings for stranded tax effects resulting from the Tax Act. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders’ Equity | |
Stockholders' Equity | 14. Stockholders’ Equity Stock Repurchase Program The Company’s Board has approved a stock repurchase program (the “Stock Repurchase Program”) pursuant to which the Company is authorized to repurchase shares of its common stock. The Stock Repurchase Program has no expiration date. During the three months ended March 31, 2019 and 2018, the Company repurchased 471,500 and 764,825 shares, respectively, of its common stock at an average purchase price of $15.00 and $17.90, per share, respectively, for an aggregate purchase price of $7.1 million and $13.7 million, respectively, pursuant to its Stock Repurchase Program. As of March 31, 2019, the Company had a total authority of $35.8 million available for purchase of shares of its common stock pursuant to its Stock Repurchase Program. The Company may repurchase its common stock in open market purchases from time to time, in privately negotiated transactions or otherwise, pursuant to Rule 10b‑18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The timing and amount of any additional shares to be repurchased will depend upon a variety of factors, including market and business conditions. Repurchases may be commenced or suspended at any time or from time to time without prior notice. The Stock Repurchase Program will continue until otherwise modified or terminated by the Company’s Board at any time in its sole discretion. Issuance of Common Stock for Director’s Fees On May 23, 2018, the Company’s Board approved granting to each non-employee director an equity grant with an aggregate fair market value of $50,000 or, at the director’s election, its cash equivalent. On July 2, 2018, 2,778 shares of restricted stock were granted to one of the Company’s directors pursuant to the Board’s May 23, 2018 approval and the Company’s 2015 Performance and Equity Incentive Plan (the “2015 Plan”). This restricted stock will vest on the date of the Company’s 2019 Annual Meeting of Shareholders (the “2019 Annual Meeting”) and is subject to forfeiture upon termination of service on the Board prior to the 2019 Annual Meeting. Three non-employee directors elected to receive cash in lieu of the stock. On May 25, 2017, the Company’s Board approved granting to each non-employee director an equity grant with an aggregate fair market value of $50,000 or, at the director’s election, its cash equivalent. On July 3, 2017, 5,334 shares of restricted stock were granted to two of the Company’s directors pursuant to the Board’s May 25, 2017 approval and the Company’s 2015 Plan. This restricted stock vested on May 23, 2018, the date of the Company’s 2018 Annual Meeting of Shareholders. Four non-employee directors elected to receive cash in lieu of the stock. For each of the three months ended March 31, 2019 and 2018, the Company recorded expense of less than $0.1 million, related to restricted stock awards to the Company’s directors. Issuance of Common Stock for Officer Compensation Pursuant to the Company’s 2015 Plan, the Company’s named executive officers (“NEOs”) were provided with the opportunity to elect to receive up to 50% of their discretionary cash incentive award for 2017 performance in shares of Company stock and four of the Company’s NEOs elected to do so. On March 15, 2018, 9,956 shares, net of shares withheld for taxes, of restricted stock were granted to four of the Company’s NEOs. The restricted stock vested immediately. For the three months ended March 31, 2018, the Company recorded expense of $0.2 million related to restricted stock awards to the Company’s NEOs. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition | |
Revenue Recognition | 15. Revenue Recognition Revenue consists primarily of real estate sales, hospitality operations, leasing operations, and timber sales. Taxes collected from customers and remitted to governmental authorities (e.g., sales tax) are excluded from revenue, costs and expenses. The following represents revenue disaggregated by segment, good or service and timing: Three Months Ended March 31, 2019 Commercial Residential Leasing Real Estate Hospitality and Sales Forestry Other Total Revenue by Major Good/Service: Real estate revenue $ 3,362 $ — $ 923 $ 188 $ 118 $ 4,591 Hospitality revenue — 7,431 — — — 7,431 Leasing revenue — 36 3,288 182 — 3,506 Timber revenue — — — 495 — 495 Total revenue $ 3,362 $ 7,467 $ 4,211 $ 865 $ 118 $ 16,023 Timing of Revenue Recognition: Recognized at a point in time $ 3,362 $ 6,920 $ 923 $ 683 $ 118 $ 12,006 Recognized over time — 511 — — — 511 Over lease term — 36 3,288 182 — 3,506 Total revenue $ 3,362 $ 7,467 $ 4,211 $ 865 $ 118 $ 16,023 Three Months Ended March 31, 2018 Commercial Residential Leasing Real Estate Hospitality and Sales Forestry Other Total Revenue by Major Good/Service: Real estate revenue $ 6,957 $ — $ 310 $ 184 $ 251 $ 7,702 Hospitality revenue — 7,079 — — — 7,079 Leasing revenue — 371 2,840 207 — 3,418 Timber revenue 77 — — 1,589 — 1,666 Total revenue $ 7,034 $ 7,450 $ 3,150 $ 1,980 $ 251 $ 19,865 Timing of Revenue Recognition: Recognized at a point in time $ 7,034 $ 6,754 $ 310 $ 1,773 $ 251 $ 16,122 Recognized over time — 325 — — — 325 Over lease term — 371 2,840 207 — 3,418 Total revenue $ 7,034 $ 7,450 $ 3,150 $ 1,980 $ 251 $ 19,865 |
Other Income (Expense)
Other Income (Expense) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income (Expense) | |
Other Income (Expense) | 16. Other Income (Expense) Other income (expense) consists of the following: Three Months Ended March 31, 2019 2018 Investment income, net Interest and dividend income $ 1,813 $ 2,880 Accretion income 61 221 Net realized loss on the sale of investments (2) (1,078) Other-than-temporary impairment loss — (63) Unrealized gain (loss) on investments, net 2,049 (538) Interest income from investments in SPEs 2,049 2,050 Interest accrued on notes receivable and other interest 76 193 Total investment income, net 6,046 3,665 Interest expense Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE (2,199) (2,196) Other interest expense (743) (829) Total interest expense (2,942) (3,025) Other income (expense), net Gain on land contribution 1,472 — Accretion income from retained interest investments 320 290 Insurance proceeds 279 — Hurricane expense (322) — Miscellaneous expense, net (51) (13) Other income, net 1,698 277 Total other income, net $ 4,802 $ 917 Investment Income, Net Interest and dividend income includes interest income accrued or received on the Company’s corporate debt securities, commercial paper and money market funds, and dividend income received from the Company’s investment in preferred stock. Accretion income includes the amortization of the premium or accretion of discount related to the Company’s available-for-sale securities, which is amortized based on an effective interest rate method over the term of the available-for- sale securities. Net realized loss on the sale of investments include the gains or losses recognized on the sale of available-for-sale securities prior to maturity. Other-than-temporary impairment loss includes impairments related to the Company’s corporate debt securities for the three months ended March 31, 2018. Unrealized gain (loss) on investments, net includes unrealized gains or losses on investments - equity securities. Interest income from investments in SPEs primarily includes interest earned on the investments held by Panama City Timber Finance Company, LLC, which is used to pay the interest expense for Senior Notes held by Northwest Florida Timber Finance, LLC. Interest Expense Interest expense includes interest expense related to the Company’s CDD debt, PPN JV Loan, Pier Park Outparcel Construction Loan, WaterColor Crossings Construction Loan and finance leases. Borrowing costs, including the discount and issuance costs for the Senior Notes issued by Northwest Florida Timber Finance, LLC, are amortized based on the effective interest method at an effective rate of 4.9%. Other Income, Net Other income, net primarily includes gain on land contribution, income from the Company’s retained interest investments, insurance proceeds, hurricane expenses and other income and expense items. The three months ended March 31, 2019, include a gain of $1.5 million on land contributed to our unconsolidated Pier Park TPS JV. See Note 9, Real Estate Joint Ventures for additional information. During the three months ended March 31, 2019, the Company received $0.3 million of insurance proceeds and incurred $0.3 million of hurricane expenses related to Hurricane Michael. See Note 6. Hurricane Michael for additional information. These amounts were included in other income, net in the condensed consolidated statements of income. The Company records the accretion of investment income from its retained interest investment over the life of the retained interest using the effective yield method with rates ranging from 3.7% to 11.9%. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Information | |
Segment Information | 17. Segment Information The Company conducts primarily all of its business in the following four operating segments: (1) residential real estate, (2) hospitality, (3) commercial leasing and sales and (4) forestry. The Company’s reportable segments are strategic business units that offer different products and services. They are each managed separately and decisions about allocations of resources are determined by management based on these strategic business units. The Company uses income before income taxes and non-controlling interest and other measures for purposes of making decisions about allocating resources to each segment and assessing each segment’s performance, which the Company believes represents current performance measures. The accounting policies of the segments are set forth in Note 2 to the Company’s consolidated financial statements contained in Item 15 of the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018. Total revenue represents sales to unaffiliated customers, as reported in the Company’s condensed consolidated statements of income. All significant intercompany transactions have been eliminated in consolidation. The caption entitled “Other” under operating revenue consists of mitigation credit and title fee revenue. The caption entitled “Other” under income (loss) before income taxes consists of corporate operating expenses, net of corporate other income. Information by business segment is as follows: Three Months Ended March 31, 2019 2018 Operating revenue: Residential real estate $ 3,362 $ 7,034 Hospitality 7,467 7,450 Commercial leasing and sales 4,211 3,150 Forestry revenue 865 1,980 Other 118 251 Consolidated operating revenue $ 16,023 $ 19,865 Income (loss) before income taxes: Residential real estate $ 255 $ 1,459 Hospitality (807) (534) Commercial leasing and sales 2,490 (90) Forestry 580 1,531 Other 123 (1,990) Consolidated income before income taxes $ 2,641 $ 376 March 31, December 31, 2019 2018 Total assets: Residential real estate $ 129,166 $ 125,642 Hospitality 73,616 70,746 Commercial leasing and sales 192,273 182,658 Forestry 20,464 20,189 Other 460,321 471,727 Total assets $ 875,840 $ 870,962 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | 18. Commitments and Contingencies The Company establishes an accrued liability when it believes it is both probable that a material loss has been incurred and the amount of the loss can be reasonably estimated. The Company will evaluate the range of reasonably estimated losses and record an accrued liability based on what it believes to be the minimum amount in the range, unless it believes an amount within the range is a better estimate than any other amount. In such cases, there may be an exposure to loss in excess of the amounts accrued. The Company evaluates quarterly whether further developments could affect the amount of the accrued liability previously established or would make a loss contingency both probable and reasonably estimable. The Company also provides disclosure when it believes it is reasonably possible that a material loss will be incurred or when it believes it is reasonably possible that the amount of a loss will exceed the recorded liability. The Company reviews loss contingencies at least quarterly to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or range of loss can be made. This estimated range of possible losses is based upon currently available information and is subject to significant judgment and a variety of assumptions, as well as known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate. The Company is subject to a variety of litigation, claims, other disputes and governmental proceedings that arise from time to time in the ordinary course of its business, including litigation related to its prior homebuilding and development activities. The Company cannot make assurances that it will be successful in defending these matters. Based on current knowledge, the Company does not believe that loss contingencies arising from pending litigation, claims, other disputes and governmental proceedings, including those described herein, will have a material adverse effect on the consolidated financial position or liquidity of the Company. However, in light of the inherent uncertainties involved in these matters, an adverse outcome in one or more of these matters could be material to the Company’s results of operations or cash flows for any particular reporting period. The Company is subject to costs arising out of environmental laws and regulations, which include obligations to remove or limit the effects on the environment of the disposal or release of certain wastes or substances at various sites, including sites which have been previously sold. It is the Company’s policy to accrue and charge against earnings environmental cleanup costs when it is probable that a liability has been incurred and a range of loss can be reasonably estimated. As assessments and cleanups proceed, these accruals are reviewed and adjusted, if necessary, as additional information becomes available. The Company is in the process of assessing certain properties in regard to the effects, if any, on the environment from the disposal or release of wastes or substances. Management is unable to quantify future rehabilitation costs above present accruals at this time or provide a reasonably estimated range of loss. Other litigation, claims, disputes and governmental proceedings, including environmental matters, are pending against the Company. Accrued aggregate liabilities related to the matters described above and other litigation matters were $1.2 million as of each March 31, 2019 and December 31, 2018, respectively. Significant judgment is required in both the determination of probability and the determination as to whether the amount of an exposure is reasonably estimable. Due to uncertainties related to these matters, accruals are based only on the information available at the time. As additional information becomes available, management reassesses potential liabilities related to pending claims and litigation and may revise its previous estimates, which could materially affect the Company’s results of operations for any particular reporting period. The Company has retained certain self-insurance risks with respect to losses for third party liability and property damage, including its timber assets. At both March 31, 2019 and December 31, 2018, the Company was required to provide surety bonds that guarantee completion of certain infrastructure in certain development projects and mitigation banks of $9.4 million, which may potentially result in liability to the Company if certain obligations of the Company are not met. As of March 31, 2019, the Company had a total of $33.0 million in contractual obligations. In January 2019, the Company’s unconsolidated Pier Park TPS JV, entered into a $14.4 million loan, maturing in January 2026 (the “Pier Park TPS JV Loan”). The Pier Park TPS JV Loan is secured by the real property, assignment of rents and the security interest in the rents and personal property. In connection with the Pier Park TPS JV Loan, the Company and a wholly owned subsidiary of the Company (the “Guarantor”) entered into a joint and several guarantee in favor of the lender, to guarantee the payment and performance of the borrower. The Guarantors’ liability under the Pier Park TPS JV Loan will be automatically reduced to 50.0%, or a further 25.0% of the outstanding principal balance upon reaching and maintaining certain debt service coverage. In addition, the guarantee can become full recourse in the case of the failure of Guarantor to abide by or perform any of the covenants or warranties to be performed on the part of such Guarantor; any sale, conveyance or transfer of the property; upon the filing or commencement of voluntary bankruptcy or insolvency proceedings; the entry of monetary judgement or assessment or the filing of any tax lien against either the borrower or Guarantor; and the dissolution of the borrower or Guarantor. As of March 31, 2019, there was no principal balance related to the Pier Park TPS JV Loan. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Significant Accounting Policies | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10‑Q. Accordingly, certain information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements are not included herein. The unaudited interim condensed consolidated financial statements include the accounts of the Company and all of its majority-owned and controlled subsidiaries and variable interest entities where the Company deems itself the primary beneficiary. Investments in joint ventures (“JV”) and limited partnerships in which the Company is not the primary beneficiary are accounted for by the equity method. All significant intercompany transactions and balances have been eliminated in consolidation. The December 31, 2018 condensed consolidated balance sheet amounts have been derived from the Company’s December 31, 2018 audited consolidated financial statements. Certain prior period amounts in the accompanying condensed consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on the Company’s previously reported total assets and liabilities, stockholders’ equity or net income. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2019. A variable interest entity (“VIE”) is an entity in which a controlling financial interest may be achieved through arrangements that do not involve voting interests. A VIE is required to be consolidated by its primary beneficiary, which is the entity that possesses the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to the entity. The Company consolidates VIEs when it is the primary beneficiary of the VIE, including real estate JVs determined to be VIEs. See Note 9. Real Estate Joint Ventures . The interim condensed consolidated financial statements reflect all normal recurring adjustments that, in the opinion of management, are necessary for fair presentation of the information contained herein. The interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018. The Company adheres to the same accounting policies in preparation of its unaudited interim condensed consolidated financial statements as the Company’s December 31, 2018 annual financial statements, except for recently adopted accounting pronouncements detailed below. As required under GAAP, interim accounting for certain expenses, including income taxes, are based on full year assumptions. For interim financial reporting purposes, income taxes are recorded based upon estimated annual income tax rates. |
Concentration of Risks and Uncertainties | Concentration of Risks and Uncertainties The Company’s real estate investments are concentrated in Northwest Florida in a number of specific development projects. Uncertain economic conditions could have an adverse impact on the Company’s real estate values and could cause the Company to sell assets at depressed values in order to pay ongoing obligations. Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, investments, other receivables, investments held by special purpose entity or entities (“SPE”), and investments in retained interests. The Company deposits and invests cash with local and regional financial institutions, and as of March 31, 2019, these balances exceeded the amount of F.D.I.C. insurance provided on such deposits. In addition, as of March 31, 2019 the company had $7.0 million invested in U.S. Treasury securities, $2.8 million invested in two issuers of corporate debt securities that are non-investment grade, $38.2 million invested in five issuers of preferred stock that are non-investment grade and one issuer of preferred stock that is investment grade, as well as investments of $168.1 million in short term commercial paper from t wenty issuers. |
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share are calculated by dividing net income attributable to the Company by the average number of common shares outstanding for the period. For the three months ended March 31, 2019 and 2018, basic and diluted average shares outstanding were the same. There were no outstanding common stock equivalents as of March 31, 2019 or March 31, 2018. Non-vested restricted stock is included in outstanding shares at the time of grant. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Leases In February 2016, the FASB issued ASU 2016‑02, Leases (“ASU 2016-02”) that amended the existing accounting standards for lease accounting, including requiring lessees to recognize both finance and operating leases with terms of more than 12 months on the balance sheet. The accounting applied by a lessor is largely unchanged by this amendment. This amendment also required certain quantitative and qualitative disclosures about leasing arrangements. In January 2018, the FASB issued ASU 2018‑01, which provided an optional transition practical expedient to not evaluate under the new lease standard, existing or expired land easements that were not previously accounted for as leases. In July 2018, the FASB issued ASU 2018-10 that provided clarifications and improvements to ASU 2016-02. In July 2018, the FASB issued ASU 2018-11 that provided entities with an additional and optional transition method to apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the beginning balance of retained earnings in the period of adoption. In December 2018, the FASB issued ASU 2018-20 that provided an accounting policy election for certain narrow-scope improvements for lessors. In March 2019, the FASB issued ASU 2019-01 that provided clarifications and improvements to ASU 2016-02. During the Company’s evaluation of ASU 2016-02, as amended, (“Topic 842”) the following practical expedients and accounting policies with respect to Topic 842 have been elected and/or adopted effective January 1, 2019: · The Company, as lessee and as lessor, will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases or (iii) initial direct costs for any expired or existing leases. · The Company, as lessee, will not apply the recognition requirements of Topic 842 to short-term (twelve months or less) leases. Instead, the Company, as lessee, will recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. · The Company, as lessor, will not separate nonlease components from lease components and, instead, will account for each separate lease component and the nonlease components associated with that lease as a single component if the nonlease components otherwise would be accounted for under Accounting Standards Codification Topic 606, Revenue from Contracts with Customers . The primary reason for this election is related to instances where common area maintenance is, or may be, a component of base rent within a lease agreement. The Company adopted the new guidance, including amendments, as of January 1, 2019 and has elected to implement Topic 842 retrospectively using the cumulative-effect adjustment transition method as of the date of adoption. As a result, prior periods have not been restated. As of the date of adoption a cumulative-effect adjustment was not necessary and the Company recognized an operating lease right-of use assets of $0.4 million and corresponding operating lease liabilities of $0.4 million based on the present value of minimum rental payments related to leases for which the Company is the lessee. The operating lease right-of-use assets and corresponding operating lease liabilities are included within other assets and other liabilities, respectively, on the condensed consolidated balance sheets. There were no adjustments related to the leases for which the Company is the lessor. The adoption of this guidance did not materially impact results of operations or cash flows. Recently Issued Accounting Pronouncements Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016‑13, Financial Instruments – Credit Losses (Topic 326) (“ASU 2016-13”), that requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected and requires that credit losses from available-for-sale debt securities be presented as an allowance for credit loss. In November 2018, the FASB issued ASU 2018-19, which clarifies that impairment of receivables from operating leases should be accounted for using lease guidance. This new guidance will be effective for annual and interim periods beginning after December 15, 2019, with early adoption permitted for annual and interim periods beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of this guidance will have on its financial condition, results of operations and cash flows. |
Investment in Real Estate (Tabl
Investment in Real Estate (Table) | 3 Months Ended |
Mar. 31, 2019 | |
Investment in Real Estate | |
Schedule of real estate by property type and segment | March 31, December 31, 2019 2018 Development property: Residential real estate $ 110,819 $ 105,323 Hospitality 5,429 3,726 Commercial leasing and sales 78,949 73,128 Forestry 2,144 2,144 Corporate 2,557 2,497 Total development property 199,898 186,818 Operating property: Residential real estate 7,344 7,344 Hospitality 93,046 93,046 Commercial leasing and sales 113,189 111,471 Forestry 20,141 19,765 Other 50 50 Total operating property 233,770 231,676 Less: Accumulated depreciation 68,953 67,500 Total operating property, net 164,817 164,176 Investment in real estate, net $ 364,715 $ 350,994 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments | |
Schedule of Investments | March 31, 2019 Gross Unrealized Gross Unrealized Amortized Cost Gains (Losses) Fair Value Investments - debt securities: U.S. Treasury securities $ 6,978 $ 1 $ — $ 6,979 Corporate debt securities 2,927 — (89) 2,838 9,905 1 (89) 9,817 Restricted investments: Short-term bond 2,210 5 — 2,215 Money market fund 113 — — 113 2,323 5 — 2,328 $ 12,228 $ 6 $ (89) $ 12,145 December 31, 2018 Gross Unrealized Gross Unrealized Amortized Cost Gains (Losses) Fair Value Investments - debt securities: U.S. Treasury securities $ 6,936 $ 1 $ — $ 6,937 Corporate debt securities 2,908 — (887) 2,021 9,844 1 (887) 8,958 Restricted investments: Short-term bond 3,274 — (9) 3,265 Money market fund 167 — — 167 3,441 — (9) 3,432 $ 13,285 $ 1 $ (896) $ 12,390 |
Schedule of Unrealized Loss Position and Related Fair Value of Investments | March 31, 2019 Less Than 12 Months 12 Months or Greater Unrealized Unrealized Fair Value Losses Fair Value Losses Investments - debt securities: Corporate debt securities $ — $ — $ 2,838 $ 89 December 31, 2018 Less Than 12 Months 12 Months or Greater Unrealized Unrealized Fair Value Losses Fair Value Losses Investments - debt securities: Corporate debt securities $ — $ — $ 1,843 $ 887 Restricted investments: Short-term bond — — 3,265 9 $ — $ — $ 5,108 $ 896 |
Schedule of Contractual Maturities of Investments | March 31, 2019 Amortized Cost Fair Value Due in one year or less $ 9,905 $ 9,817 Restricted investments 2,323 2,328 $ 12,228 $ 12,145 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Financial Instruments and Fair Value Measurements | |
Schedule of Financial Instruments Measured at Fair Value on Recurring Basis | March 31, 2019 Total Fair Level 1 Level 2 Level 3 Value Cash equivalents: Money market funds $ 5,711 $ — $ — $ 5,711 Commercial paper 168,076 — — 168,076 173,787 — — 173,787 Investments - debt securities: U.S. Treasury securities 6,979 — — 6,979 Corporate debt securities — 2,838 — 2,838 6,979 2,838 — 9,817 Investments - equity securities: Preferred stock 10,755 27,431 — 38,186 Restricted investments: Short-term bond 2,215 — — 2,215 Money market fund 113 — — 113 2,328 — — 2,328 $ 193,849 $ 30,269 $ — $ 224,118 December 31, 2018 Total Fair Level 1 Level 2 Level 3 Value Cash equivalents: Money market funds $ 43,346 $ — $ — $ 43,346 Commercial paper 107,586 — — 107,586 U.S. Treasury securities 29,998 — — 29,998 180,930 — — 180,930 Investments - debt securities: U.S. Treasury securities 6,937 — — 6,937 Corporate debt securities — 2,021 — 2,021 6,937 2,021 — 8,958 Investments - equity securities: Preferred stock 10,470 25,662 — 36,132 Restricted investments: Short-term bond 3,265 — — 3,265 Money market fund 167 — — 167 3,432 — — 3,432 $ 201,769 $ 27,683 $ — $ 229,452 |
Schedule of Carrying Amount and Fair Value Measured on Nonrecurring Basis of Financial Instruments | March 31, 2019 December 31, 2018 Carrying Carrying value Fair value Level value Fair value Level Assets Investments held by SPEs: Time deposit $ 200,000 $ 200,000 3 $ 200,000 $ 200,000 3 U.S. Treasury securities and cash $ 7,011 $ 6,809 1 $ 7,384 $ 7,092 1 Liabilities Senior Notes held by SPE $ 176,837 $ 196,106 3 $ 176,775 $ 193,293 3 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases | |
Schedule of components of leasing revenue | Three Months Ended March 31, 2019 Leasing revenue Lease payments $ 2,680 Variable lease payments 826 Total leasing revenue $ 3,506 |
Schedule of minimum future base rental revenue | 2019 $ 8,480 2020 10,852 2021 9,788 2022 8,995 2023 7,110 $ 45,225 |
Schedule of lease cost | Three Months Ended March 31, 2019 Lease cost Finance lease cost: Amortization of right-of-use assets $ 4 Interest on lease liability 1 Operating lease cost 52 Short-term lease cost 64 Total lease cost $ 121 Other information Weighted-average remaining lease term - finance lease (in years) 4.9 Weighted-average remaining lease term - operating leases (in years) 1.9 Weighted-average discount rate - finance lease 5.0 % Weighted-average discount rate - operating leases 5.0 % |
Schedule of aggregate payments of finance lease liability | The aggregate payments of finance lease liability subsequent to March 31, 2019, for the years ending December 31 are: 2019 $ 41 2020 54 2021 54 2022 54 2023 54 Thereafter 10 Total 267 Less imputed interest (31) Total finance lease liability $ 236 |
Schedule of aggregate payments of operating lease liabilities | The aggregate payments of operating lease liabilities subsequent to March 31, 2019, for the years ending December 31 are: 2019 $ 141 2020 145 2021 78 Total 364 Less imputed interest (20) Total operating lease liabilities $ 344 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Assets | |
Schedule of Other Assets | March 31, December 31, 2019 2018 Restricted investments $ 2,328 $ 3,432 Accounts receivable, net 7,373 14,061 Homesite sales receivable 2,691 2,977 Claim settlement receivable 2,699 2,679 Notes receivable 1,791 2,265 Income tax receivable 3,253 3,914 Prepaid expenses 6,727 6,751 Straight-line rent 3,534 3,581 Operating lease right-of-use assets 344 — Investment in unconsolidated joint venture 3,088 1,105 Other assets 6,133 5,069 Retained interest investments 11,645 11,536 Accrued interest receivable for Senior Notes held by SPE 935 2,938 Total other assets $ 52,541 $ 60,308 |
Schedule of Lot Sales Receivable | Increases Due To Balance Revenue Recognized Decreases Due to Balance January 1, 2019 for Homesites Sold Amounts Received March 31, 2019 Homesite sales receivable $ 2,977 $ 138 $ (424) $ 2,691 Increases Due To Balance Revenue Recognized Decreases Due to Balance January 1, 2018 for Homesites Sold Amounts Received March 31, 2018 Homesite sales receivable $ 2,585 $ 629 $ (450) $ 2,764 |
Schedule of Notes Receivable | March 31, December 31, 2019 2018 Pier Park Community Development District notes, non-interest bearing, due September 2022 $ 803 $ 803 Interest bearing homebuilder note, secured by the real estate sold — 5.5% interest rate, due September 2019 416 749 Interest bearing homebuilder note, secured by the real estate sold — 5.5% interest rate, due June 2019 337 422 Interest bearing homebuilder note, secured by the real estate sold — 6.3% interest rate, due March 2020 135 150 Various mortgage notes, secured by certain real estate, bearing interest at various rates 100 141 Total notes receivable $ 1,791 $ 2,265 |
Real Estate Joint Ventures (Tab
Real Estate Joint Ventures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate Joint Ventures | |
Schedule of financial information of unconsolidated joint venture | March 31, December 31, 2019 2018 BALANCE SHEETS: Investment in real estate $ 4,614 $ 285 Cash and cash equivalents 2,369 64 Total assets $ 6,983 $ 349 Other liabilities $ 805 $ 3 Equity 6,178 346 Total liabilities and equity $ 6,983 $ 349 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt | |
Schedule of Debt | March 31, 2019 December 31, 2018 Unamortized Unamortized Discount and Discount and Debt Issuance Debt Issuance Principal Costs Net Principal Costs Net PPN JV Loan, due November 2025, bearing interest at 4.1% $ 46,199 $ 429 $ 45,770 $ 46,423 $ 446 $ 45,977 Pier Park Crossings JV Loan, insured by HUD, due June 2060, bearing interest at 4.0% 21,697 1,107 20,590 15,399 1,114 14,285 Community Development District debt, secured by certain real estate or other collateral, due May 2023 through May 2039, bearing interest at 3.6% to 6.0% 7,695 — 7,695 6,324 — 6,324 Pier Park Outparcel Construction Loan, due March 2027, bearing interest at LIBOR plus 1.7% (effective rate of 4.2% at March 31, 2019) 1,574 16 1,558 1,585 16 1,569 WaterColor Crossings Construction Loan, due February 2029, bearing interest at LIBOR plus 1.7% (effective rate of 4.2% at March 31, 2019) 1,478 25 1,453 1,245 26 1,219 Beach Homes Loan, due May 2029, bearing interest at LIBOR plus 1.7% (effective rate of 4.2% at March 31, 2019) 747 21 726 — — — Total debt $ 79,390 $ 1,598 $ 77,792 $ 70,976 $ 1,602 $ 69,374 |
Schedule of Aggregate Maturities of Debt | The aggregate maturities of debt subsequent to March 31, 2019, for the years ending December 31 are: March 31, 2019 2019 $ 1,457 2020 1,968 2021 2,174 2022 2,189 2023 2,212 Thereafter 69,390 $ 79,390 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Liabilities | |
Schedule of Other Liabilities | March 31, December 31, 2019 2018 Accounts payable $ 9,186 $ 10,148 Finance lease liability 236 — Operating lease liabilities 344 — Accrued compensation 1,761 3,112 Other accrued liabilities 3,824 2,560 Deferred revenue 17,378 17,478 Club initiation fees 5,976 5,676 Club membership deposits 4,156 4,286 Advance deposits 2,795 1,277 Accrued interest expense for Senior Notes held by SPE 713 2,850 Total other liabilities $ 46,369 $ 47,387 |
Schedule of changes in club initiation fees related to contracts with customers | Balance Increases Due To Decreases Due to Balance January 1, 2019 Cash Received Revenue Recognized March 31, 2019 Contract liabilities Club initiation fees $ 5,676 $ 753 $ (453) $ 5,976 Balance Increases Due To Decreases Due to Balance January 1, 2018 Cash Received Revenue Recognized March 31, 2018 Contract liabilities Club initiation fees $ 5,199 $ 253 $ (272) $ 5,180 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Taxes | |
Schedule of effective income tax rate reconciliation | Three Months Ended March 31, 2019 2018 Tax at the federal statutory rate $ 555 $ 107 State income taxes (net of federal benefit) 116 22 2017 qualified timber gains at the federal statutory rate of 23.8% (1) — (345) Decrease in valuation allowance — (33) Other (10) — Total income tax expense (benefit) $ 661 $ (249) (1) The Bipartisan Budget Act of 2018 was signed into law on February 9, 2018 (the “2018 Act”). The 2018 Act retroactively re-established the preferential 23.8% tax rate on C Corporation Qualified Timber Gains, extending its applicability from 2016 to include the 2017 tax year. The benefit of this retroactive tax rate reduction is included in 2018 income from continuing operations. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Loss | |
Summary of Changes in Accumulated Other Comprehensive Loss | Unrealized Gain on Available-for- Sale Securities Accumulated other comprehensive loss at December 31, 2018 $ (674) Other comprehensive income before reclassifications 604 Amounts reclassified from accumulated other comprehensive loss 2 Other comprehensive income 606 Accumulated other comprehensive loss at March 31, 2019 $ (68) |
Summary of Tax Effects Allocated to Other Comprehensive Income | Three Months Ended March 31, 2019 Before- Tax Net-of- Tax Amount Expense Tax Amount Unrealized gain on investments - debt securities and restricted investments: Unrealized gain on available-for-sale investments $ 799 $ (203) $ 596 Unrealized gain on restricted investments 11 (3) 8 Reclassification adjustment for net loss included in earnings 2 — 2 Net unrealized gain 812 (206) 606 Other comprehensive income $ 812 $ (206) $ 606 Three Months Ended March 31, 2018 Before- Tax Benefit or Net-of- Tax Amount (Expense) Tax Amount Unrealized loss on investments - debt securities and restricted investments: Unrealized loss on available-for-sale investments $ (803) $ 204 $ (599) Unrealized loss on restricted investments (9) 2 (7) Reclassification adjustment for net loss included in earnings 1,078 (273) 805 Reclassification adjustment for other-than-temporary impairment loss included in earnings 63 (16) 47 Reclassification into retained earnings for the adoption of ASU 2016-01 (1) 932 (236) 696 Reclassification into retained earnings for the adoption of ASU 2018-02 (2) — (313) (313) Net unrealized gain 1,261 (632) 629 Other comprehensive income $ 1,261 $ (632) $ 629 (1) The reclassification into retained earnings relates to the adoption of ASU 2016‑01. The new guidance was effective January 1, 2018, and required equity investments to be measured at fair value with changes in fair value recognized in results of operations rather than the condensed consolidated statements of comprehensive income. (2) The reclassification into retained earnings relates to the adoption of ASU 2018‑02. The new guidance was effective January 1, 2018, and allowed a reclassification from accumulated other comprehensive loss to retained earnings for stranded tax effects resulting from the Tax Act. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition | |
Schedule of revenue disaggregated by segment, good or service and timing | Three Months Ended March 31, 2019 Commercial Residential Leasing Real Estate Hospitality and Sales Forestry Other Total Revenue by Major Good/Service: Real estate revenue $ 3,362 $ — $ 923 $ 188 $ 118 $ 4,591 Hospitality revenue — 7,431 — — — 7,431 Leasing revenue — 36 3,288 182 — 3,506 Timber revenue — — — 495 — 495 Total revenue $ 3,362 $ 7,467 $ 4,211 $ 865 $ 118 $ 16,023 Timing of Revenue Recognition: Recognized at a point in time $ 3,362 $ 6,920 $ 923 $ 683 $ 118 $ 12,006 Recognized over time — 511 — — — 511 Over lease term — 36 3,288 182 — 3,506 Total revenue $ 3,362 $ 7,467 $ 4,211 $ 865 $ 118 $ 16,023 Three Months Ended March 31, 2018 Commercial Residential Leasing Real Estate Hospitality and Sales Forestry Other Total Revenue by Major Good/Service: Real estate revenue $ 6,957 $ — $ 310 $ 184 $ 251 $ 7,702 Hospitality revenue — 7,079 — — — 7,079 Leasing revenue — 371 2,840 207 — 3,418 Timber revenue 77 — — 1,589 — 1,666 Total revenue $ 7,034 $ 7,450 $ 3,150 $ 1,980 $ 251 $ 19,865 Timing of Revenue Recognition: Recognized at a point in time $ 7,034 $ 6,754 $ 310 $ 1,773 $ 251 $ 16,122 Recognized over time — 325 — — — 325 Over lease term — 371 2,840 207 — 3,418 Total revenue $ 7,034 $ 7,450 $ 3,150 $ 1,980 $ 251 $ 19,865 |
Other Income (Expense) - (Table
Other Income (Expense) - (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income (Expense) | |
Schedule of Other Income (Expense) | Three Months Ended March 31, 2019 2018 Investment income, net Interest and dividend income $ 1,813 $ 2,880 Accretion income 61 221 Net realized loss on the sale of investments (2) (1,078) Other-than-temporary impairment loss — (63) Unrealized gain (loss) on investments, net 2,049 (538) Interest income from investments in SPEs 2,049 2,050 Interest accrued on notes receivable and other interest 76 193 Total investment income, net 6,046 3,665 Interest expense Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE (2,199) (2,196) Other interest expense (743) (829) Total interest expense (2,942) (3,025) Other income (expense), net Gain on land contribution 1,472 — Accretion income from retained interest investments 320 290 Insurance proceeds 279 — Hurricane expense (322) — Miscellaneous expense, net (51) (13) Other income, net 1,698 277 Total other income, net $ 4,802 $ 917 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Information | |
Schedule of Information by Business Segment | Three Months Ended March 31, 2019 2018 Operating revenue: Residential real estate $ 3,362 $ 7,034 Hospitality 7,467 7,450 Commercial leasing and sales 4,211 3,150 Forestry revenue 865 1,980 Other 118 251 Consolidated operating revenue $ 16,023 $ 19,865 Income (loss) before income taxes: Residential real estate $ 255 $ 1,459 Hospitality (807) (534) Commercial leasing and sales 2,490 (90) Forestry 580 1,531 Other 123 (1,990) Consolidated income before income taxes $ 2,641 $ 376 March 31, December 31, 2019 2018 Total assets: Residential real estate $ 129,166 $ 125,642 Hospitality 73,616 70,746 Commercial leasing and sales 192,273 182,658 Forestry 20,464 20,189 Other 460,321 471,727 Total assets $ 875,840 $ 870,962 |
Nature of Operations - Real Est
Nature of Operations - Real Estate Assets (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Nature of Operations | |
Percentage of real estate land holdings located within fifteen miles of Gulf of Mexico | 90.00% |
Number of reportable operating segments | 4 |
Significant Accounting Polici_3
Significant Accounting Policies - Concentrations (Details) $ in Thousands | Mar. 31, 2019USD ($)issuer | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) |
Concentration risk | |||
Investments - debt securities | $ 9,817 | $ 8,958 | |
Investments - equity securities | 38,186 | 36,132 | |
Cash and cash equivalents | 190,821 | $ 195,155 | $ 202,585 |
U.S. Treasury securities | |||
Concentration risk | |||
Investments - debt securities | 7,000 | ||
Preferred stock | |||
Concentration risk | |||
Investments - equity securities | 38,200 | ||
Commercial paper | |||
Concentration risk | |||
Cash and cash equivalents | $ 168,100 | ||
Number of issuers | issuer | 20 | ||
Non-investment grade | Corporate debt securities | |||
Concentration risk | |||
Investments - debt securities | $ 2,800 | ||
Number of issuers | issuer | 2 | ||
Non-investment grade | Preferred stock | |||
Concentration risk | |||
Number of issuers | issuer | 5 | ||
Investment grade | Preferred stock | |||
Concentration risk | |||
Number of issuers | issuer | 1 |
Significant Accounting Polici_4
Significant Accounting Policies - EPS (Details) - shares | Mar. 31, 2019 | Mar. 31, 2018 |
Significant Accounting Policies | ||
Common stock equivalents (in shares) | 0 | 0 |
Significant Accounting Polici_5
Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
New accounting pronouncements or change in accounting principle | ||
Lease, Practical Expedients, Package [true false] | true | |
Operating lease, right-of use assets | $ 344 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets.. | |
Operating lease liabilities | $ 344 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities. | |
ASU 2016-02 | Adjustment | ||
New accounting pronouncements or change in accounting principle | ||
Operating lease, right-of use assets | $ 400 | |
Operating lease liabilities | $ 400 |
Investment in Real Estate - Rea
Investment in Real Estate - Real Estate by Property Type and Segment (Details) $ in Thousands | Mar. 31, 2019USD ($)item | Dec. 31, 2018USD ($) |
Real estate properties | ||
Investment in real estate, net | $ 364,715 | $ 350,994 |
Development property | ||
Real estate properties | ||
Investment in real estate, net | 199,898 | 186,818 |
Development property | Corporate | ||
Real estate properties | ||
Investment in real estate, net | 2,557 | 2,497 |
Development property | Residential real estate | Operating Segments | ||
Real estate properties | ||
Investment in real estate, net | $ 110,819 | 105,323 |
Development property | Hospitality | ||
Real estate properties | ||
Number of gulf-front vacation homes under construction | item | 2 | |
Development property | Hospitality | Operating Segments | ||
Real estate properties | ||
Investment in real estate, net | $ 5,429 | 3,726 |
Development property | Commercial leasing and sales | Operating Segments | ||
Real estate properties | ||
Investment in real estate, net | 78,949 | 73,128 |
Development property | Forestry | Operating Segments | ||
Real estate properties | ||
Investment in real estate, net | 2,144 | 2,144 |
Operating property | ||
Real estate properties | ||
Investment in real estate | 233,770 | 231,676 |
Less: Accumulated depreciation | 68,953 | 67,500 |
Investment in real estate, net | 164,817 | 164,176 |
Operating property | Other | ||
Real estate properties | ||
Investment in real estate | 50 | 50 |
Operating property | Residential real estate | Operating Segments | ||
Real estate properties | ||
Investment in real estate | 7,344 | 7,344 |
Operating property | Hospitality | Operating Segments | ||
Real estate properties | ||
Investment in real estate | 93,046 | 93,046 |
Operating property | Commercial leasing and sales | Operating Segments | ||
Real estate properties | ||
Investment in real estate | 113,189 | 111,471 |
Operating property | Forestry | Operating Segments | ||
Real estate properties | ||
Investment in real estate | $ 20,141 | $ 19,765 |
Investments - Schedule of inves
Investments - Schedule of investments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt securities and restricted investments | ||
Amortized Cost | $ 12,228 | $ 13,285 |
Gross Unrealized Gains | 6 | 1 |
Gross Unrealized (Losses) | (89) | (896) |
Fair Value | 12,145 | 12,390 |
Unrestricted available-for-sale, Debt securities | ||
Debt securities and restricted investments | ||
Amortized Cost | 9,905 | 9,844 |
Gross Unrealized Gains | 1 | 1 |
Gross Unrealized (Losses) | (89) | (887) |
Fair Value | 9,817 | 8,958 |
Unrestricted available-for-sale, Debt securities | U.S. Treasury securities | ||
Debt securities and restricted investments | ||
Amortized Cost | 6,978 | 6,936 |
Gross Unrealized Gains | 1 | 1 |
Fair Value | 6,979 | 6,937 |
Unrestricted available-for-sale, Debt securities | Corporate debt securities | ||
Debt securities and restricted investments | ||
Amortized Cost | 2,927 | 2,908 |
Gross Unrealized (Losses) | (89) | (887) |
Fair Value | 2,838 | 2,021 |
Restricted | ||
Debt securities and restricted investments | ||
Amortized Cost | 2,323 | 3,441 |
Gross Unrealized Gains | 5 | |
Gross Unrealized (Losses) | (9) | |
Fair Value | 2,328 | 3,432 |
Restricted | Short-term bond | ||
Debt securities and restricted investments | ||
Amortized Cost | 2,210 | 3,274 |
Gross Unrealized Gains | 5 | |
Gross Unrealized (Losses) | (9) | |
Fair Value | 2,215 | 3,265 |
Restricted | Money market fund | ||
Debt securities and restricted investments | ||
Amortized Cost | 113 | 167 |
Fair Value | $ 113 | $ 167 |
Investments - Gains and proceed
Investments - Gains and proceeds (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments | ||
Net realized losses from sale of investments | $ 2 | $ 1,078 |
Proceeds from sale of available-for-sale debt securities | 1,100 | 32,000 |
Maximum | ||
Investments | ||
Net realized losses from sale of investments | 100 | |
Purchases of investments - debt securities | $ 100 | $ 100 |
Investments - Unrealized Loss P
Investments - Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investments | ||
12 Months or Greater, Fair Value | $ 5,108 | |
12 Months or Greater, Unrealized Losses | 896 | |
Unrestricted available-for-sale, Debt securities | Corporate debt securities | ||
Investments | ||
12 Months or Greater, Fair Value | $ 2,838 | 1,843 |
12 Months or Greater, Unrealized Losses | $ 89 | 887 |
Restricted | Short-term bond | ||
Investments | ||
12 Months or Greater, Fair Value | 3,265 | |
12 Months or Greater, Unrealized Losses | $ 9 |
Investments - Unrealized Losses
Investments - Unrealized Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Investments | |||
Available-for-sale Debt Securities, Accumulated Gross Unrealized Loss, before Tax | $ 89 | $ 896 | |
Other-than-temporary impairment loss | $ 63 |
Investments - Contractual Matur
Investments - Contractual Maturities of Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Amortized Cost | $ 12,228 | $ 13,285 |
Fair Value | ||
Fair Value | 12,145 | 12,390 |
Unrestricted available-for-sale, Debt securities | ||
Amortized Cost | ||
Due in one year or less | 9,905 | |
Amortized Cost | 9,905 | 9,844 |
Fair Value | ||
Due in one year or less | 9,817 | |
Fair Value | 9,817 | 8,958 |
Restricted | ||
Amortized Cost | ||
Amortized Cost | 2,323 | 3,441 |
Fair Value | ||
Fair Value | $ 2,328 | $ 3,432 |
Investments - Equity Securities
Investments - Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Investments | |||
Investments - equity securities | $ 38,186 | $ 36,132 | |
Unrealized gains on investments - equity securities | $ 2,049 | $ (538) |
Investments - Investment Manage
Investments - Investment Management Agreement (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)item | |
Securities of any one issuer (excluding the U.S. Government) | |
Investments | |
Number of Investment Committee members required to authorize investment | item | 2 |
Minimum | Securities of any one issuer (excluding the U.S. Government) | |
Investments | |
Investments, portfolio allocations requiring additional consent | 10.00% |
Maximum | Securities of any one issuer (excluding the U.S. Government) | |
Investments | |
Investments, target portfolio allocations percent | 15.00% |
Investments, portfolio allocations requiring additional consent | 15.00% |
Cash investment grade cash equivalents or U . S . treasury securities | Minimum | |
Investments | |
Investments, target portfolio allocations percent | 25.00% |
Common stock investments | Maximum | |
Investments | |
Investments, target portfolio allocations, amount | $ | $ 100 |
Common stock investments | Maximum | Single issuer of exchange-traded common equities | |
Investments | |
Investments, target portfolio allocations percent | 5.00% |
Common, preferred or other equity investments | Maximum | |
Investments | |
Investments, target portfolio allocations percent | 25.00% |
Investor | FCM and FTC | |
Investments | |
Common stock ownership percentage | 41.47% |
Investor | FCM, FTC and Mr. Berkowitz | |
Investments | |
Common stock ownership percentage | 44.07% |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Measurements on Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financial instruments and fair value measurements | ||
Cash equivalents | $ 173,787 | $ 180,930 |
Total | 224,118 | 229,452 |
Level 1 | ||
Financial instruments and fair value measurements | ||
Cash equivalents | 173,787 | 180,930 |
Total | 193,849 | 201,769 |
Level 2 | ||
Financial instruments and fair value measurements | ||
Total | 30,269 | 27,683 |
Unrestricted available-for-sale, Debt securities | ||
Financial instruments and fair value measurements | ||
Investments | 9,817 | 8,958 |
Unrestricted available-for-sale, Debt securities | Level 1 | ||
Financial instruments and fair value measurements | ||
Investments | 6,979 | 6,937 |
Unrestricted available-for-sale, Debt securities | Level 2 | ||
Financial instruments and fair value measurements | ||
Investments | 2,838 | 2,021 |
Restricted | ||
Financial instruments and fair value measurements | ||
Investments | 2,328 | 3,432 |
Restricted | Level 1 | ||
Financial instruments and fair value measurements | ||
Investments | 2,328 | 3,432 |
Money market fund | ||
Financial instruments and fair value measurements | ||
Cash equivalents | 5,711 | 43,346 |
Money market fund | Level 1 | ||
Financial instruments and fair value measurements | ||
Cash equivalents | 5,711 | 43,346 |
Money market fund | Restricted | ||
Financial instruments and fair value measurements | ||
Investments | 113 | 167 |
Money market fund | Restricted | Level 1 | ||
Financial instruments and fair value measurements | ||
Investments | 113 | 167 |
Commercial paper | ||
Financial instruments and fair value measurements | ||
Cash equivalents | 168,076 | 107,586 |
Commercial paper | Level 1 | ||
Financial instruments and fair value measurements | ||
Cash equivalents | 168,076 | 107,586 |
U.S. Treasury securities | ||
Financial instruments and fair value measurements | ||
Cash equivalents | 29,998 | |
U.S. Treasury securities | Level 1 | ||
Financial instruments and fair value measurements | ||
Cash equivalents | 29,998 | |
U.S. Treasury securities | Unrestricted available-for-sale, Debt securities | ||
Financial instruments and fair value measurements | ||
Investments | 6,979 | 6,937 |
U.S. Treasury securities | Unrestricted available-for-sale, Debt securities | Level 1 | ||
Financial instruments and fair value measurements | ||
Investments | 6,979 | 6,937 |
Corporate debt securities | Unrestricted available-for-sale, Debt securities | ||
Financial instruments and fair value measurements | ||
Investments | 2,838 | 2,021 |
Corporate debt securities | Unrestricted available-for-sale, Debt securities | Level 2 | ||
Financial instruments and fair value measurements | ||
Investments | 2,838 | 2,021 |
Preferred stock | Equity securities | ||
Financial instruments and fair value measurements | ||
Investments | 38,186 | 36,132 |
Preferred stock | Equity securities | Level 1 | ||
Financial instruments and fair value measurements | ||
Investments | 10,755 | 10,470 |
Preferred stock | Equity securities | Level 2 | ||
Financial instruments and fair value measurements | ||
Investments | 27,431 | 25,662 |
Short-term bond | Restricted | ||
Financial instruments and fair value measurements | ||
Investments | 2,215 | 3,265 |
Short-term bond | Restricted | Level 1 | ||
Financial instruments and fair value measurements | ||
Investments | $ 2,215 | $ 3,265 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Expected Maturity (Details) - Y | Mar. 31, 2019 | Dec. 31, 2018 |
Financial instruments and fair value measurements | ||
Debt Securities, Available-for-sale, Measurement Input [Extensible List] | us-gaap:MeasurementInputExpectedTermMember | us-gaap:MeasurementInputExpectedTermMember |
Restricted | Short-term bond | Minimum | ||
Financial instruments and fair value measurements | ||
Measurement input (in years) | 0 | 0 |
Restricted | Short-term bond | Maximum | ||
Financial instruments and fair value measurements | ||
Measurement input (in years) | 3 | 3 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Carrying Amount and Fair Value (Details) - Nonrecurring - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Level 3 | Carrying Value | ||
Financial instruments and fair value measurements | ||
Senior Notes held by SPE | $ 176,837 | $ 176,775 |
Level 3 | Carrying Value | Time deposit | ||
Financial instruments and fair value measurements | ||
Investments held by SPEs | 200,000 | 200,000 |
Level 3 | Fair Value | ||
Financial instruments and fair value measurements | ||
Senior Notes held by SPE | 196,106 | 193,293 |
Level 3 | Fair Value | Time deposit | ||
Financial instruments and fair value measurements | ||
Investments held by SPEs | 200,000 | 200,000 |
Level 1 | Carrying Value | U. S Treasury securities and cash | ||
Financial instruments and fair value measurements | ||
Investments held by SPEs | 7,011 | 7,384 |
Level 1 | Fair Value | U. S Treasury securities and cash | ||
Financial instruments and fair value measurements | ||
Investments held by SPEs | $ 6,809 | $ 7,092 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Held by Special Purpose Entities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2014 | Dec. 31, 2018 | |
Financial instruments and fair value measurements | |||
Investments held by special purpose entity | $ 207,011 | $ 207,384 | |
Senior Notes held by special purpose entity | 176,837 | $ 176,775 | |
Panama City Timber Finance Company, LLC | 2014 real estate sale | |||
Financial instruments and fair value measurements | |||
Notes received as consideration in sale of real estate | $ 200,000 | ||
Promissory notes maturity period | 15 years | ||
Panama City Timber Finance Company, LLC | Time deposit | |||
Financial instruments and fair value measurements | |||
Investments held by special purpose entity | $ 200,000 | ||
Investment interest rate (as a percent) | 4.00% | ||
Panama City Timber Finance Company, LLC | U.S. Treasury securities | |||
Financial instruments and fair value measurements | |||
Investments held by special purpose entity | $ 6,600 | ||
Panama City Timber Finance Company, LLC | Cash | |||
Financial instruments and fair value measurements | |||
Investments held by special purpose entity | 400 | ||
Northwest Florida Timber Finance, LLC | |||
Financial instruments and fair value measurements | |||
Loan amount | $ 180,000 | ||
Debt interest rate (as a percent) | 4.80% | ||
Issue price of senior secured notes (as a percent) | 98.50% | ||
Senior Notes held by special purpose entity | 176,800 | ||
Unamortized discount and debt issuance costs | $ 3,200 |
Hurricane Michael (Details)
Hurricane Michael (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
May 01, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Loss contingency | |||
Insurance proceeds | $ 279 | ||
Proceeds from settlement received | 5,798 | ||
Hurricane Michael. | |||
Loss contingency | |||
Insurance proceeds | 300 | ||
Insurance settlements receivable | 900 | $ 6,700 | |
Additional hurricane expense | 300 | ||
Insurance recovery for additional hurricane expense | 0 | ||
Proceeds from business interruption insurance | 0 | ||
Proceeds from settlement received | $ 5,800 | ||
Hurricane Michael. | Subsequent Event. | |||
Loss contingency | |||
Proceeds from settlement received | $ 900 |
Leases - Components of lease re
Leases - Components of lease revenue (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leasing revenue | |
Lease payments | $ 2,680 |
Variable lease payments | 826 |
Total leasing revenue | $ 3,506 |
Leases - Minimum future base re
Leases - Minimum future base rental revenue (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Minimum future base rental revenue: | |
2019 | $ 8,480 |
2020 | 10,852 |
2021 | 9,788 |
2022 | 8,995 |
2023 | 7,110 |
Total | $ 45,225 |
Leases - Lease cost (Details)
Leases - Lease cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance lease cost: | |
Amortization of right-of-use assets | $ 4 |
Interest on lease liability | 1 |
Operating lease cost | 52 |
Short-term lease cost | 64 |
Total lease cost | $ 121 |
Leases - Lease cost - Other inf
Leases - Lease cost - Other information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases | |
Weighted-average remaining lease term - finance lease (in years) | 4 years 10 months 24 days |
Weighted-average remaining lease term - operating leases (in years) | 1 year 10 months 24 days |
Weighted-average discount rate - finance lease (as a percent) | 5.00% |
Weighted-average discount rate - operating leases (as a percent) | 5.00% |
Cash paid for amounts included in the measurement of lease liabilities | |
Financing cash flows from finance leases | $ 4 |
Leases - Aggregate payments of
Leases - Aggregate payments of finance lease liability (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Aggregate payments of finance lease liability: | |
2019 | $ 41 |
2020 | 54 |
2021 | 54 |
2022 | 54 |
2023 | 54 |
Thereafter | 10 |
Total | 267 |
Less imputed interest | (31) |
Total finance lease liability | $ 236 |
Leases - Aggregate payments o_2
Leases - Aggregate payments of operating lease liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Aggregate payments of operating lease liabilities: | |
2019 | $ 141 |
2020 | 145 |
2021 | 78 |
Total | 364 |
Less imputed interest | (20) |
Total operating lease liabilities | $ 344 |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Other Assets | ||||
Restricted investments | $ 2,328 | $ 3,432 | ||
Accounts receivable, net | 7,373 | 14,061 | ||
Homesite sales receivable | 2,691 | 2,977 | $ 2,764 | $ 2,585 |
Claim settlement receivable | 2,699 | 2,679 | ||
Notes receivable | 1,791 | 2,265 | ||
Income tax receivable | 3,253 | 3,914 | ||
Prepaid expenses | 6,727 | 6,751 | ||
Straight line rent | 3,534 | 3,581 | ||
Operating lease, right-of use assets | 344 | |||
Investment in unconsolidated joint venture | 3,088 | 1,105 | ||
Other assets | 6,133 | 5,069 | ||
Retained interest investments | 11,645 | 11,536 | ||
Accrued interest receivable for Senior Notes held by SPE | 935 | 2,938 | ||
Total other assets | $ 52,541 | $ 60,308 |
Other Assets - Restricted Inves
Other Assets - Restricted Investments (Details) - Restricted - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments | ||
Expense for fair value of assets, less expenses, allocated to participants | $ 1.1 | $ 1.1 |
Maximum | ||
Investments | ||
Expense period | 2 years | |
Gain (loss) on assets | $ 0.1 | $ 0.1 |
Other Assets - Accounts Receiva
Other Assets - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Investments | ||
Proceeds from settlement received | $ 5,798 | |
Hurricane Michael. | ||
Investments | ||
Insurance settlements receivable | 900 | $ 6,700 |
Proceeds from settlement received | $ 5,800 |
Other Assets - Homesite Sales R
Other Assets - Homesite Sales Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Changes in lot sales receivable | ||
Homesite Sales Receivable, Beginning Balance | $ 2,977 | $ 2,585 |
Increases Due To Revenue Recognized for Lots Sold | 138 | 629 |
Decreases Due to Amounts Received | (424) | (450) |
Homesite Sales Receivable, Ending Balance | $ 2,691 | $ 2,764 |
Other Assets - Claim Settlement
Other Assets - Claim Settlement Receivable (Details) $ in Millions | 1 Months Ended |
Oct. 31, 2019USD ($) | |
BP Exploration & Production Inc. | Forecast | |
Receivables | |
Litigation settlement amount received | $ 2.7 |
Other Assets - Notes Receivable
Other Assets - Notes Receivable (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Receivables | |||
Notes receivable | $ 1,791 | $ 1,791 | $ 2,265 |
Allowance for notes receivable | 0 | 0 | 0 |
Pier Park Community Development District notes, non-interest bearing, due September 2022 | |||
Receivables | |||
Notes receivable | 803 | 803 | 803 |
Interest bearing homebuilder note - 5.5% interest rate, due September 2019 | |||
Receivables | |||
Notes receivable | 416 | $ 416 | $ 749 |
Interest rate (as a percent) | 5.50% | 5.50% | |
Interest bearing homebuilder note - 5.5% interest rate, due June 2019 | |||
Receivables | |||
Notes receivable | 337 | $ 337 | $ 422 |
Interest rate (as a percent) | 5.50% | 5.50% | |
Interest bearing homebuilder note - 6.3% interest rate, due March 2020 | |||
Receivables | |||
Notes receivable | 135 | $ 135 | $ 150 |
Interest rate (as a percent) | 6.30% | 6.30% | |
Interest bearing homebuilder note - 6.3% interest rate, due March 2020 | Maximum | |||
Receivables | |||
Proceeds of principal payment | 2,020,000 | ||
Various other seller financing maturing December 2022 through November 2023 | |||
Receivables | |||
Notes receivable | $ 100 | $ 100 | $ 141 |
Other Assets - Retained Interes
Other Assets - Retained Interest Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Investments | ||
Retained interest investments | $ 11,645 | $ 11,536 |
Retained interest investments | ||
Investments | ||
Expected amount to receive upon maturity of note after payment of note and any other liabilities | $ 16,800 | |
Promissory notes maturity period | 15 years | |
Minimum | Retained interest investments | ||
Investments | ||
Notes maturity year | 2022 | |
Maximum | Retained interest investments | ||
Investments | ||
Notes maturity year | 2024 |
Real Estate Joint Ventures - Co
Real Estate Joint Ventures - Consolidated Real Estate Joint Ventures (Details) - item | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2017 | |
Origins Crossings JV | |||
Variable interest entity | |||
Number of units | 217 | ||
Variable interest entity, ownership percentage | 75.00% | ||
Pier Park Crossings JV | |||
Variable interest entity | |||
Number of units | 240 | ||
Variable interest entity, ownership percentage | 75.00% | 75.00% | |
Windmark JV | |||
Variable interest entity | |||
Variable interest entity, ownership percentage | 49.00% | 49.00% | |
Pier Park North | |||
Variable interest entity | |||
Variable interest entity, ownership percentage | 60.00% | 60.00% |
Real Estate Joint Ventures - Un
Real Estate Joint Ventures - Unconsolidated Joint Ventures (Details) $ in Thousands | Jan. 14, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 30, 2018item |
Investments | ||||
Investment in unconsolidated joint venture | $ 3,088 | $ 1,105 | ||
Pier Park TPS JV | ||||
Investments | ||||
Number of hotel rooms | item | 124 | |||
Value of land contributed | $ 1,700 | |||
Cash contributed | 200 | |||
Mitigation bank credits contributed | $ 100 | |||
Investment in unconsolidated joint venture | $ 1,100 | |||
Ownership percentage | 50.00% | 50.00% | ||
Summarized financial information - Balance Sheets | ||||
Investment in real estate | $ 4,614 | $ 285 | ||
Cash and cash equivalents | 2,369 | 64 | ||
Total assets | 6,983 | 349 | ||
Other liabilities | 805 | 3 | ||
Equity | 6,178 | 346 | ||
Total liabilities and equity | 6,983 | 349 | ||
Pier Park TPS JV | Other assets. | ||||
Investments | ||||
Investment in unconsolidated joint venture | $ 3,100 | $ 1,100 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt instruments | ||
Debt, Principal | $ 79,390 | $ 70,976 |
Unamortized Discount and Debt Issuance Costs | 1,598 | 1,602 |
Debt, Net | 77,792 | 69,374 |
PPN JV Loan, due November 2025, bearing interest at 4.1% | ||
Debt instruments | ||
Debt, Principal | 46,199 | 46,423 |
Unamortized Discount and Debt Issuance Costs | 429 | 446 |
Debt, Net | $ 45,770 | $ 45,977 |
Debt interest rate (as a percent) | 4.10% | 4.10% |
Pier Park Crossings JV Loan, due June 2060, bearing interest at 4.0% | ||
Debt instruments | ||
Debt, Principal | $ 21,697 | $ 15,399 |
Unamortized Discount and Debt Issuance Costs | 1,107 | 1,114 |
Debt, Net | $ 20,590 | $ 14,285 |
Debt interest rate (as a percent) | 4.00% | 4.00% |
Community Development District debt | ||
Debt instruments | ||
Debt, Principal | $ 7,695 | $ 6,324 |
Debt, Net | $ 7,695 | $ 6,324 |
Community Development District debt | Minimum | ||
Debt instruments | ||
Debt interest rate (as a percent) | 3.60% | 3.60% |
Community Development District debt | Maximum | ||
Debt instruments | ||
Debt interest rate (as a percent) | 6.00% | 6.00% |
Pier Park Outparcel Construction Loan, due March 2027, bearing interest at LIBOR plus 1.7% | ||
Debt instruments | ||
Debt, Principal | $ 1,574 | $ 1,585 |
Unamortized Discount and Debt Issuance Costs | 16 | 16 |
Debt, Net | $ 1,558 | $ 1,569 |
Effective interest rate (as a percent) | 4.20% | |
Pier Park Outparcel Construction Loan, due March 2027, bearing interest at LIBOR plus 1.7% | LIBOR | ||
Debt instruments | ||
Basis spread on variable rate | 1.70% | 1.70% |
WaterColor Crossings Construction Loan, due February 2029, bearing interest at LIBOR plus 1.7% | ||
Debt instruments | ||
Debt, Principal | $ 1,478 | $ 1,245 |
Unamortized Discount and Debt Issuance Costs | 25 | 26 |
Debt, Net | $ 1,453 | $ 1,219 |
Effective interest rate (as a percent) | 4.20% | 4.20% |
WaterColor Crossings Construction Loan, due February 2029, bearing interest at LIBOR plus 1.7% | LIBOR | ||
Debt instruments | ||
Basis spread on variable rate | 1.70% | 1.70% |
Beach Homes Loan, due May 2029, bearing interest at LIBOR plus 1.7%. | ||
Debt instruments | ||
Debt, Principal | $ 747 | |
Unamortized Discount and Debt Issuance Costs | 21 | |
Debt, Net | $ 726 | |
Effective interest rate (as a percent) | 4.20% | |
Beach Homes Loan, due May 2029, bearing interest at LIBOR plus 1.7%. | LIBOR | ||
Debt instruments | ||
Basis spread on variable rate | 1.70% | 1.70% |
Debt - Debt Agreements (Details
Debt - Debt Agreements (Details) $ in Millions | 1 Months Ended | 120 Months Ended | ||||
May 31, 2018USD ($)item | Feb. 28, 2018USD ($) | Jun. 30, 2030 | Mar. 31, 2019USD ($) | Mar. 31, 2017USD ($) | Oct. 31, 2015USD ($) | |
Debt instruments | ||||||
Total Community Development District debt | $ 19.9 | |||||
PPN JV Loan, due November 2025, bearing interest at 4.1% | ||||||
Debt instruments | ||||||
Loan amount | $ 48.2 | |||||
Pier Park Outparcel Construction Loan, due March 2027, bearing interest at LIBOR plus 1.7% | ||||||
Debt instruments | ||||||
Loan amount | $ 1.6 | |||||
Pier Park Crossings JV Loan, due June 2060, bearing interest at 4.0% | ||||||
Debt instruments | ||||||
Loan amount | $ 36.6 | |||||
Debt instrument, period subject to interest payments only | 24 months | |||||
Pier Park Crossings JV Loan, due June 2060, bearing interest at 4.0% | Minimum | Forecast | ||||||
Debt instruments | ||||||
Prepayment premium, as a percent of principal repaid | 1.00% | |||||
Pier Park Crossings JV Loan, due June 2060, bearing interest at 4.0% | Maximum | Forecast | ||||||
Debt instruments | ||||||
Prepayment premium, as a percent of principal repaid | 10.00% | |||||
WaterColor Crossings Construction Loan, due February 2029, bearing interest at LIBOR plus 1.7% | ||||||
Debt instruments | ||||||
Loan amount | $ 1.9 | |||||
Debt instrument, period subject to interest payments only | 12 months | |||||
Beach Homes Loan, due May 2029, bearing interest at LIBOR plus 1.7%. | ||||||
Debt instruments | ||||||
Loan amount | $ 1.7 | |||||
Debt instrument, period subject to interest payments only | 12 months | |||||
Number of homes financed | item | 2 |
Debt - Maturities of Debt (Deta
Debt - Maturities of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt | ||
2019 | $ 1,457 | |
2020 | 1,968 | |
2021 | 2,174 | |
2022 | 2,189 | |
2023 | 2,212 | |
Thereafter | 69,390 | |
Long term debt | $ 79,390 | $ 70,976 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Other Liabilities | ||||
Accounts payable | $ 9,186 | $ 10,148 | ||
Finance lease liability | 236 | |||
Operating lease liabilities | 344 | |||
Accrued compensation | 1,761 | 3,112 | ||
Other accrued liabilities | 3,824 | 2,560 | ||
Deferred revenue | 17,378 | 17,478 | ||
Club initiation fees | 5,976 | 5,676 | $ 5,180 | $ 5,199 |
Club membership deposits | 4,156 | 4,286 | ||
Advance deposits | 2,795 | 1,277 | ||
Accrued interest expense for Senior Notes held by SPE | 713 | 2,850 | ||
Total other liabilities | $ 46,369 | $ 47,387 |
Other Liabilities - Additional
Other Liabilities - Additional information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Other Liabilities | ||
Accrued property taxes | $ 1,200 | $ 0 |
Deferred revenue | 17,378 | 17,478 |
Florida Department of Transportation | ||
Other Liabilities | ||
Deferred revenue | $ 12,500 | $ 12,500 |
Other Liabilities - Changes in
Other Liabilities - Changes in contract liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Changes in contract liabilities | ||
Contract liabilities - Club initiation fees (Balance at beginning of period) | $ 5,676 | $ 5,199 |
Increases Due To Cash Received | 753 | 253 |
Decreases Due to Revenue Recognized | (453) | (272) |
Contract liabilities - Club initiation fees (Balance at end of period) | $ 5,976 | $ 5,180 |
Income Taxes - Expense (benefit
Income Taxes - Expense (benefit) reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Taxes | |||
Statutory federal income tax rate (as a percent) | 21.00% | 21.00% | |
Tax at the statutory federal rate | $ 555 | $ 107 | |
State income taxes (net of federal benefit) | 116 | 22 | |
2017 qualified timber gains at the federal statutory rate of 23.8% | (345) | ||
Decrease in valuation allowance, net | (33) | ||
Other | (10) | ||
Total income tax expense (benefit) | $ 661 | $ (249) | |
Timber statutory federal rate | 23.80% |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowances and Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Income Taxes | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Summary of changes in accumulated other comprehensive loss | ||
Beginning Balance | $ 533,111 | $ 592,584 |
Total other comprehensive income, net of tax | 606 | 629 |
Ending Balance | 530,320 | 581,196 |
Unrealized gain on available for sale securities | ||
Summary of changes in accumulated other comprehensive loss | ||
Beginning Balance | (674) | |
Other comprehensive loss before reclassifications | 604 | |
Amounts reclassified from accumulated other comprehensive loss | 2 | |
Total other comprehensive income, net of tax | 606 | $ 629 |
Ending Balance | $ (68) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Summary of the Tax Effects Allocated to Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Accumulated Other Comprehensive Loss | |||
Reclassification adjustment for loss (gain) included in earnings, Before-tax-amount | $ 2 | $ 1,078 | |
Reclassification of other-than-temporary impairment loss included in earnings, Before-tax-amount | 63 | ||
Reclassification into retained earnings for the adoption of ASU, Before-tax-amount | [1] | 932 | |
Total before income taxes | 812 | 1,261 | |
Other comprehensive loss, Tax (expense) or benefit | [2] | (206) | (632) |
Total other comprehensive income, net of tax | 606 | 629 | |
Unrealized gain on available for sale securities | |||
Accumulated Other Comprehensive Loss | |||
Unrealized gain (loss) on investments, Net-of-tax amount | 604 | ||
Reclassification adjustment for loss (gain) included in earnings, Before-tax-amount | 2 | 1,078 | |
Reclassification adjustment for loss (gain) included in earnings, Tax (expense) or benefit | (273) | ||
Reclassification adjustment for loss (gain) included in earnings, Net-of-tax amount | 2 | 805 | |
Reclassification of other-than-temporary impairment loss included in earnings, Before-tax-amount | 63 | ||
Reclassification adjustment for other-than-temporary impairment loss included in earnings, Tax (expense) or benefit | (16) | ||
Reclassification adjustment for other-than-temporary impairment loss included in earnings, Net-of-tax amount | 47 | ||
Total before income taxes | 812 | 1,261 | |
Other comprehensive loss, Tax (expense) or benefit | (206) | (632) | |
Total other comprehensive income, net of tax | 606 | 629 | |
Unrealized gain on available for sale securities | ASU 2016-01 | |||
Accumulated Other Comprehensive Loss | |||
Reclassification into retained earnings for the adoption of ASU, Before-tax-amount | 932 | ||
Reclassification into retained earnings for the adoption of ASU, Tax (expense) or benefit | (236) | ||
Reclassification into retained earnings for the adoption of ASU, Net-of-tax amount | 696 | ||
Unrealized gain on available for sale securities | ASU 2018-02 | |||
Accumulated Other Comprehensive Loss | |||
Reclassification into retained earnings for the adoption of ASU, Tax (expense) or benefit | (313) | ||
Reclassification into retained earnings for the adoption of ASU, Net-of-tax amount | (313) | ||
Unrestricted available-for-sale, Debt securities | Unrealized gain on available for sale securities | |||
Accumulated Other Comprehensive Loss | |||
Unrealized gain (loss) on investments, Before-tax amount | 799 | (803) | |
Unrealized gain (loss) on investments, Tax (expense) or benefit | (203) | 204 | |
Unrealized gain (loss) on investments, Net-of-tax amount | 596 | (599) | |
Restricted | Unrealized gain on available for sale securities | |||
Accumulated Other Comprehensive Loss | |||
Unrealized gain (loss) on investments, Before-tax amount | 11 | (9) | |
Unrealized gain (loss) on investments, Tax (expense) or benefit | (3) | 2 | |
Unrealized gain (loss) on investments, Net-of-tax amount | $ 8 | $ (7) | |
[1] | The reclassification into retained earnings for the three months ended March 31, 2018 relates to the adoption of Accounting Standards Update (“ASU”) 201601 Financial Instruments - Overall, as amended (“ASU 201601”). The new guidance was effective January 1, 2018, and required equity investments to be measured at fair value with changes in fair value recognized in results of operations rather than the condensed consolidated statements of comprehensive income. | ||
[2] | Income tax expense for the three months ended March 31, 2018 includes $0.3 million of income tax expense related to the adoption of ASU 201802 Income Statement - Reporting Comprehensive Income (“ASU 201802”). The new guidance was effective January 1, 2018, and allowed a reclassification from accumulated other comprehensive loss to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (the “Tax Act”). |
Stockholders' Equity - Stock Re
Stockholders' Equity - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stockholders’ Equity | ||
Average purchase price per share for share repurchase (in dollars per share) | $ 15 | $ 17.90 |
Aggregate cost | $ 7,073 | $ 13,695 |
Remaining authorized repurchase amount | $ 35,800 | |
Common Stock | ||
Stockholders’ Equity | ||
Shares repurchased during the period (in shares) | 471,500 | 764,825 |
Stockholders' Equity - Issuance
Stockholders' Equity - Issuance of Common Stock (Details) - Restricted Stock | Jul. 02, 2018directorshares | Mar. 15, 2018employeeshares | Jul. 03, 2017directorshares | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017employee | May 23, 2018USD ($) | May 25, 2017USD ($) |
Directors | ||||||||
Share-based compensation | ||||||||
Fair value of equity grant award approved for each director | $ 50,000 | $ 50,000 | ||||||
Number of restricted stock awards granted | shares | 2,778 | 5,334 | ||||||
Number of directors granted restricted stock awards | director | 1 | 2 | ||||||
Number of directors who elected to receive cash in lieu of the stock | director | 3 | 4 | ||||||
Directors | Maximum | ||||||||
Share-based compensation | ||||||||
Stock compensation expense | $ 100,000 | $ 100,000 | ||||||
Officers | ||||||||
Share-based compensation | ||||||||
Issuance of common stock for officer compensation, net of tax withholding (in shares) | shares | 9,956 | |||||||
Number of directors granted restricted stock awards | employee | 4 | |||||||
Stock compensation expense | $ 200,000 | |||||||
Percentage of total discretionary cash incentive award elected to be received in shares of Company stock | 50.00% | |||||||
Number of grantees who elected to receive a portion of total discretionary cash incentive award in shares of company stock | employee | 4 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of revenue | ||
Leasing revenue | $ 3,506 | |
Leasing revenue | $ 3,418 | |
Total revenue | 16,023 | 19,865 |
Recognized at a point in time | ||
Disaggregation of revenue | ||
Revenue | 12,006 | 16,122 |
Recognized over time | ||
Disaggregation of revenue | ||
Revenue | 511 | 325 |
Real estate | ||
Disaggregation of revenue | ||
Revenue | 4,591 | 7,702 |
Hospitality | ||
Disaggregation of revenue | ||
Revenue | 7,431 | 7,079 |
Timber | ||
Disaggregation of revenue | ||
Revenue | 495 | 1,666 |
Operating Segments | Residential real estate | ||
Disaggregation of revenue | ||
Total revenue | 3,362 | 7,034 |
Operating Segments | Residential real estate | Recognized at a point in time | ||
Disaggregation of revenue | ||
Revenue | 3,362 | 7,034 |
Operating Segments | Residential real estate | Real estate | ||
Disaggregation of revenue | ||
Revenue | 3,362 | 6,957 |
Operating Segments | Residential real estate | Timber | ||
Disaggregation of revenue | ||
Revenue | 77 | |
Operating Segments | Hospitality | ||
Disaggregation of revenue | ||
Leasing revenue | 36 | |
Leasing revenue | 371 | |
Total revenue | 7,467 | 7,450 |
Operating Segments | Hospitality | Recognized at a point in time | ||
Disaggregation of revenue | ||
Revenue | 6,920 | 6,754 |
Operating Segments | Hospitality | Recognized over time | ||
Disaggregation of revenue | ||
Revenue | 511 | 325 |
Operating Segments | Hospitality | Hospitality | ||
Disaggregation of revenue | ||
Revenue | 7,431 | 7,079 |
Operating Segments | Commercial leasing and sales | ||
Disaggregation of revenue | ||
Leasing revenue | 3,288 | |
Leasing revenue | 2,840 | |
Total revenue | 4,211 | 3,150 |
Operating Segments | Commercial leasing and sales | Recognized at a point in time | ||
Disaggregation of revenue | ||
Revenue | 923 | 310 |
Operating Segments | Commercial leasing and sales | Real estate | ||
Disaggregation of revenue | ||
Revenue | 923 | 310 |
Operating Segments | Forestry | ||
Disaggregation of revenue | ||
Leasing revenue | 182 | |
Leasing revenue | 207 | |
Total revenue | 865 | 1,980 |
Operating Segments | Forestry | Recognized at a point in time | ||
Disaggregation of revenue | ||
Revenue | 683 | 1,773 |
Operating Segments | Forestry | Real estate | ||
Disaggregation of revenue | ||
Revenue | 188 | 184 |
Operating Segments | Forestry | Timber | ||
Disaggregation of revenue | ||
Revenue | 495 | 1,589 |
Other | ||
Disaggregation of revenue | ||
Total revenue | 118 | 251 |
Other | Recognized at a point in time | ||
Disaggregation of revenue | ||
Revenue | 118 | 251 |
Other | Real estate | ||
Disaggregation of revenue | ||
Revenue | $ 118 | $ 251 |
Other Income (Expense) - Compon
Other Income (Expense) - Components (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investment income, net | ||
Interest and dividend income | $ 1,813 | $ 2,880 |
Accretion income | 61 | 221 |
Net realized loss on the sale of investments | (2) | (1,078) |
Other-than-temporary impairment loss | (63) | |
Unrealized gain (loss) on investments, net | 2,049 | (538) |
Interest income from investments in SPEs | 2,049 | 2,050 |
Interest accrued on notes receivable and other interest | 76 | 193 |
Total investment income, net | 6,046 | 3,665 |
Interest expense | ||
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE | (2,199) | (2,196) |
Other interest expense | (743) | (829) |
Total interest expense | (2,942) | (3,025) |
Other income (expense), net | ||
Gain on land contribution | 1,472 | |
Accretion income from retained interest investments | 320 | 290 |
Insurance proceeds | 279 | |
Hurricane expense | (322) | |
Miscellaneous expense, net | (51) | (13) |
Other income, net | 1,698 | 277 |
Total other income, net | $ 4,802 | $ 917 |
Other Income (Expense) - Invest
Other Income (Expense) - Investment Income, Net and Interest Expense (Details) | Mar. 31, 2019 |
Senior Notes held by special purpose entity | |
Other income (expense) | |
Effective interest rate (as a percent) | 4.90% |
Other Income (Expense) - Other
Other Income (Expense) - Other Income, Net (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Other income (expense) | |
Gain on land contribution | $ 1,472 |
Insurance proceeds | 279 |
Hurricane expense | $ 322 |
Minimum | |
Other income (expense) | |
Retained interest, effective interest rate (as a percent) | 3.70% |
Maximum | |
Other income (expense) | |
Retained interest, effective interest rate (as a percent) | 11.90% |
Hurricane Michael. | |
Other income (expense) | |
Insurance proceeds | $ 300 |
Hurricane expense | 300 |
Pier Park TPS JV | |
Other income (expense) | |
Gain on land contribution | $ 1,500 |
Segment Information - Reportabl
Segment Information - Reportable Segments (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
Segment Information | |
Number of reportable operating segments | 4 |
Segment Information - Informati
Segment Information - Information by Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segments | |||
Revenues | $ 16,023 | $ 19,865 | |
Consolidated income (loss) before income taxes | 2,641 | 376 | |
Total assets | 875,840 | $ 870,962 | |
Operating Segments | Residential real estate | |||
Segments | |||
Revenues | 3,362 | 7,034 | |
Consolidated income (loss) before income taxes | 255 | 1,459 | |
Total assets | 129,166 | 125,642 | |
Operating Segments | Hospitality | |||
Segments | |||
Revenues | 7,467 | 7,450 | |
Consolidated income (loss) before income taxes | (807) | (534) | |
Total assets | 73,616 | 70,746 | |
Operating Segments | Commercial leasing and sales | |||
Segments | |||
Revenues | 4,211 | 3,150 | |
Consolidated income (loss) before income taxes | 2,490 | (90) | |
Total assets | 192,273 | 182,658 | |
Operating Segments | Forestry | |||
Segments | |||
Revenues | 865 | 1,980 | |
Consolidated income (loss) before income taxes | 580 | 1,531 | |
Total assets | 20,464 | 20,189 | |
Other | |||
Segments | |||
Revenues | 118 | 251 | |
Consolidated income (loss) before income taxes | 123 | $ (1,990) | |
Total assets | $ 460,321 | $ 471,727 |
Commitments and Contingencies -
Commitments and Contingencies - (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2015 |
Obligations | ||||
Accrued liabilities for other litigation, claims, other disputes and governmental proceedings | $ 1,200 | $ 1,200 | ||
Purchase obligations, total | 33,000 | |||
Debt, Principal | 79,390 | 70,976 | ||
PPN JV Loan, due November 2025, bearing interest at 4.1% | ||||
Obligations | ||||
Loan amount | $ 48,200 | |||
Debt, Principal | 46,199 | 46,423 | ||
Pier Park TPS JV Loan | ||||
Obligations | ||||
Guarantor liability, Scenario 1 (as a percent) | 50.00% | |||
Guarantor liability, Scenario 2 (as a percent) | 25.00% | |||
Pier Park TPS JV Loan | Pier Park TPS JV | ||||
Obligations | ||||
Loan amount | $ 14,400 | |||
Debt, Principal | 0 | |||
Surety bonds | ||||
Obligations | ||||
Commitment obligations | $ 9,400 | $ 9,400 |