Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Trading Symbol | POPE | |
Entity Registrant Name | POPE RESOURCES LTD PARTNERSHIP | |
Entity Central Index Key | 784,011 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 4,352,216 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Partnership cash | $ 1,791 | $ 1,788 |
ORM Timber Funds cash | 4,575 | 1,636 |
Cash | 6,366 | 3,424 |
Restricted cash | 1,005 | 1,860 |
Total cash and restricted cash | 7,371 | 5,284 |
Accounts receivable, net | 5,654 | 6,427 |
Contract assets | 4,947 | 0 |
Land held for sale | 5,013 | 5,728 |
Prepaid expenses and other current assets | 1,408 | 591 |
Total current assets | 24,393 | 18,030 |
Properties and equipment, at cost | ||
Timber and roads | 356,017 | 267,662 |
Timberland | 69,115 | 55,056 |
Land held for development | 20,809 | 19,311 |
Buildings and equipment, net of accumulated depreciation (2018 - $8,085; 2017 - $7,833) | 5,497 | 5,306 |
Total property and equipment, at cost | 451,438 | 347,335 |
Other assets | 8,862 | 15,308 |
Total assets | 484,693 | 380,673 |
Current liabilities | ||
Accounts payable | 2,284 | 2,430 |
Accrued liabilities | 4,111 | 4,451 |
Current portion of long-term debt - Partnership | 127 | 123 |
Deferred revenue | 277 | 197 |
Current portion of environmental remediation liability | 2,134 | 2,160 |
Other current liabilities | 1,165 | 401 |
Total current liabilities | 10,098 | 9,762 |
Environmental remediation and other long-term liabilities | 4,712 | 2,957 |
Partners’ capital and noncontrolling interests | ||
General partners' capital (units issued and outstanding 2018 - 60; 2017 - 60) | 1,026 | 1,028 |
Limited partners' capital (units issued and outstanding 2018 - 4,254; 2017 - 4,251) | 62,503 | 63,519 |
Noncontrolling interests | 259,572 | 176,079 |
Total partners’ capital and noncontrolling interests | 323,101 | 240,626 |
Total liabilities, partners’ capital and noncontrolling interests | 484,693 | 380,673 |
Partnership | ||
Current liabilities | ||
Long-term debt, net of unamortized debt issuance costs and current portion | 89,475 | 70,037 |
Funds | ||
Current liabilities | ||
Long-term debt, net of unamortized debt issuance costs and current portion | $ 57,307 | $ 57,291 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Buildings and equipment, accumulated depreciation | $ 8,085 | $ 7,833 |
General partners’ capital, units issued | 60,000 | 60,000 |
General partners’ capital, units outstanding | 60,000 | 60,000 |
Limited partners’ capital, units issued | 4,254,000 | 4,251,000 |
Limited partners’ capital, units outstanding | 4,254,000 | 4,251,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue | $ 28,008 | $ 18,803 | $ 80,907 | $ 52,039 |
Cost of sales | (16,769) | (11,388) | (43,644) | (31,568) |
Operating expenses | (5,137) | (4,520) | (14,471) | (13,296) |
Environmental remediation expense | 0 | 0 | (2,900) | 0 |
General and administrative expenses | (1,930) | (1,134) | (4,954) | (4,240) |
Gain on sale of timberland | 0 | 44 | 0 | 12,547 |
Income from operations | 4,172 | 1,805 | 14,938 | 15,482 |
Interest expense, net | (1,311) | (1,179) | (3,703) | (3,306) |
Income before income taxes | 2,861 | 626 | 11,235 | 12,176 |
Income tax expense | (117) | (46) | (243) | (105) |
Net and comprehensive income | 2,744 | 580 | 10,992 | 12,071 |
Net and comprehensive income attributable to unitholders | 2,644 | 1,658 | 8,562 | 5,186 |
Allocable to general partners | 37 | 23 | 119 | 72 |
Allocable to limited partners | $ 2,607 | $ 1,635 | $ 8,443 | $ 5,114 |
Basic and diluted earnings per unit attributable to unitholders (in dollars per unit) | $ 0.60 | $ 0.38 | $ 1.96 | $ 1.17 |
Basic and diluted weighted average units outstanding (units) | 4,316 | 4,324 | 4,319 | 4,325 |
Distributions per unit (in dollars per unit) | $ 0.8 | $ 0.7 | $ 2.2 | $ 2.10 |
ORM Timber Funds | ||||
Net and comprehensive (income) loss attributable to noncontrolling interests | $ (110) | $ 1,078 | $ (2,498) | $ (6,885) |
Real Estate | ||||
Net and comprehensive (income) loss attributable to noncontrolling interests | $ 10 | $ 0 | $ 68 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Partners' Capital and Noncontrolling Interests (Unaudited) - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands | Total | Noncontrolling Interests | General Partners | Limited Partners |
Beginning balance (in units) at Dec. 31, 2017 | 4,311,065 | |||
Beginning balance at Dec. 31, 2017 | $ 240,626 | $ 176,079 | $ 1,028 | $ 63,519 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Net income | 10,992 | 2,430 | 119 | 8,443 |
Cash distributions | (20,808) | (11,217) | (133) | (9,458) |
Capital call | $ 92,280 | 92,280 | ||
Equity-based compensation (in units) | 16,178 | |||
Equity-based compensation | $ 924 | 13 | 911 | |
Units issued under distribution reinvestment plan (in units) | 1,808 | |||
Units issued under distribution reinvestment plan | $ 128 | 128 | ||
Unit repurchases (in units) | (13,422) | |||
Unit repurchases | $ (939) | (939) | ||
Payroll taxes paid on unit net settlements (in units) | (1,466) | |||
Payroll taxes paid on unit net settlements | $ (102) | (1) | (101) | |
Ending balance (in units) at Sep. 30, 2018 | 4,314,163 | |||
Ending balance at Sep. 30, 2018 | $ 323,101 | $ 259,572 | $ 1,026 | $ 62,503 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 10,992 | $ 12,071 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depletion | 21,104 | 12,737 |
Equity-based compensation | 924 | 950 |
Depreciation and amortization | 439 | 393 |
Deferred taxes and other | 57 | 10 |
Cost of land sold | 1,407 | 1,970 |
Gain on sale of timberland - Funds | 0 | (12,547) |
Gain on disposal of property and equipment | (9) | (3) |
Cash flows from changes in operating accounts | ||
Accounts receivable, net | 772 | 354 |
Prepaid expenses, contract assets, and other assets | (5,656) | 5,673 |
Real estate project expenditures | (2,182) | (6,496) |
Accounts payable and accrued liabilities | (489) | (1,452) |
Deferred revenue | 80 | (164) |
Environmental remediation accruals | 2,900 | 0 |
Environmental remediation payments | (1,145) | (6,182) |
Other current and long-term liabilities | 740 | 94 |
Net cash provided by operating activities | 29,934 | 7,408 |
Cash flows from investing activities | ||
Reforestation and roads | (2,534) | (1,665) |
Capital expenditures | (571) | (162) |
Proceeds from sale of property and equipment | 10 | 30 |
Investment in unconsolidated real estate joint venture | 0 | (250) |
Acquisitions of timberland - Partnership | (6,355) | (4,951) |
Acquisitions of timberland - Funds | (108,364) | 0 |
Proceeds from sale of timberland - Funds | 0 | 26,590 |
Net cash provided by (used in) investing activities | (117,814) | 19,592 |
Cash flows from financing activities | ||
Line of credit borrowings | 27,300 | 23,000 |
Line of credit repayments | (7,800) | (8,000) |
Repayment of long-term debt | (92) | (5,088) |
Debt issuance costs | 0 | (104) |
Proceeds from unit issuances - distribution reinvestment plan | 128 | 4 |
Unit repurchases | (939) | (648) |
Payroll taxes paid on unit net settlements | (102) | (94) |
Cash distributions to unitholders | (9,591) | (9,168) |
Cash distributions - ORM Timber Funds, net of distributions to Partnership | (11,217) | (26,359) |
Capital call - ORM Timber Funds, net of Partnership contribution | 92,280 | 825 |
Net cash provided by (used in) financing activities | 89,967 | (25,632) |
Net increase in cash and restricted cash | 2,087 | 1,368 |
Cash and restricted cash at beginning of period | 5,284 | 2,937 |
Cash and restricted cash at end of period | $ 7,371 | $ 4,305 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements Disclosure | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | The condensed consolidated balance sheets as of September 30, 2018 , and December 31, 2017 , and the related condensed consolidated statements of comprehensive income for the three- and nine-month periods , and partners’ capital and cash flows for the nine-month periods , ended September 30, 2018 , and 2017 , have been prepared by Pope Resources, A Delaware Limited Partnership (the “Partnership”), pursuant to the rules and regulations of the Securities and Exchange Commission. The condensed consolidated financial statements are unaudited but, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments and accruals) necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods. The financial information as of December 31, 2017 , is derived from the Partnership’s audited consolidated financial statements and notes thereto for the year ended December 31, 2017 , and should be read in conjunction with such financial statements and notes. The results of operations for the interim periods are not indicative of the results of operations that may be achieved for the entire fiscal year ending December 31, 2018 . |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | The financial statements in the Partnership’s 2017 annual report on Form 10-K include a summary of significant accounting policies of the Partnership and should be read in conjunction with this Quarterly Report on Form 10-Q. In February 2016, the FASB established Topic 842, Leases , which requires lessees to recognize leases on the balance sheet and disclose certain information about leasing arrangements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as financing or operating, with classification affecting the pattern and classification of expense recognition in the income statement. For lessors, leases will be classified as a sales-type, direct financing, or operating lease. A lease is classified as a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. The new standard is effective for us on January 1, 2019. We expect to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. We expect to elect all of the new standard’s available transition practical expedients. Due to the Partnership’s limited leasing activity, we do not expect the effect of this standard to be material to the Partnership’s consolidated financial statements. As a lessee, we currently believe that the most significant effect relates to the recognition of new ROU assets and lease liabilities on our balance sheet for our leases, which consist principally of leases of office equipment and office space. We expect to elect the practical expedient to not separate lease and non-lease components for all leases. As a lessor, we currently believe that all of our leases, which consist of leases of real estate, will continue to be classified as operating leases under the new standard. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Effective January 1, 2018, the Partnership adopted Topic 606, Revenue from Contracts with Customers . For revenue from the Partnership Timber and Funds Timber segments, which consists primarily of the sale of logs, there were no changes to the timing or amount of revenue recognized because contracts are legally enforceable, the transaction price is fixed, and performance is completed and control transfers at a point in time, typically when risk of loss and title passes to the customer. Similarly, no changes were identified to the timing or amount of revenue recognized from certain components of other revenue in these segments, including commercial thinning, royalties from gravel mines and quarries, and land use permits. For timber deed sales, the timing of revenue recognition was accelerated under the new standard to the effective date of the contract, whereas under the previous revenue recognition guidance the revenue was generally recognized when the timber was harvested by the customer. Under Topic 606, revenue recognized from timber deed sales in the third quarter of 2018 was $588,000 less than it would have been under the previous revenue recognition standards. For the nine months ended September 30, 2018, revenue recognized under Topic 606 was $6.9 million greater than it would have been under the previous revenue recognition accounting standards. For the Real Estate segment, this new standard may result in accelerating the recognition of revenue for performance obligations that are satisfied over time, which generally consist of construction and landscaping activity in common areas completed after transaction closing. The Partnership adopted this standard using the cumulative effect transition method applied to uncompleted contracts as of the date of adoption. The Partnership, however, had no uncompleted contracts at the date of adoption. Accordingly, the adoption of this standard did not have a cumulative effect on the Partnership’s consolidated financial statements. Revenue is measured based on the consideration specified in a contract with a customer. The Partnership recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction that are collected by the Partnership from a customer are excluded from revenue. Shipping costs associated with delivering products to customers are included in cost of sales. Included in “Accounts receivable, net” are $4.4 million of receivables from contracts with customers as of September 30, 2018 , and December 31, 2017 . Significant changes in the contract asset balance during the period were as follows, and there were no contract liabilities as of September 30, 2018 , and December 31, 2017 : Contract assets, January 1, 2018 $ — Revenue recognized from the satisfaction of performance obligations 10,255 Revenue recognized from changes in estimates of variable consideration 249 Transferred to receivables from contract assets (5,557 ) Contract assets, September 30, 2018 $ 4,947 The contract assets in the table above represent rights to consideration for timber deeds transferred to the customer and are related to the Funds Timber segment. These contracts provide the customer the legal right to harvest timber on the Funds’ property. The value of a timber deed contract is determined based on the estimated timber volume by tree species multiplied by the contracted price. The contract consideration is considered variable because the timber volume is an estimate until the harvest is completed. The contract assets are transferred to receivables when the rights to consideration become due under the contract. Customers may harvest the timber at their discretion, within a time period and operational parameters stated in the contract. The following is a description of principal activities, separated by reportable segments, from which the Partnership generates its revenue. Partnership Timber and Funds Timber Log sale revenue in these two segments is recognized when control is transferred, and title and risk of loss passes to the customer, which typically occurs when logs are delivered to the customer. Revenue in these two segments is earned primarily from the harvest and sale of logs from the Partnership’s and Funds’ timberland. Other revenue in these segments is generated from the sale of rights to harvest timber (timber deed sales), commercial thinning, ground leases for cellular communication towers, royalties from gravel mines and quarries, and land use permits. Timber deed sales are generally structured so that the customer pays a contracted price per volume, measured in thousands of board feet (MBF), and revenue is recognized when control is transferred to the customer, which generally occurs on the effective date of the contract. Commercial thinning consists of the selective cutting of timber stands that have not yet reached optimal harvest age. However, this timber does have some commercial value and revenue is based on the volume harvested. Royalty revenue from gravel mines and quarries is recognized monthly based on the quantity of material extracted. The following table presents log sale and other revenue for the quarters and nine months ended September 30, 2018 and 2017 : (in thousands) Quarter ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Partnership Timber Log sale revenue $ 11,638 $ 8,298 $ 31,312 $ 24,686 Other revenue 601 600 1,635 1,487 Total revenue $ 12,239 $ 8,898 $ 32,947 $ 26,173 Funds Timber Log sale revenue $ 11,353 $ 5,682 $ 29,356 $ 19,912 Timber deed sale revenue 1,640 1,235 10,504 1,945 Other revenue 260 165 851 204 Total revenue $ 13,253 $ 7,082 $ 40,711 $ 22,061 Timberland Investment Management (TIM) Fee revenue generated by the TIM segment for managing the Funds includes fixed components related to invested capital and acres under management, and a variable component related to harvest volume from the Funds’ tree farms. These fees, which represent an expense in the Funds Timber segment, are eliminated in consolidation. The TIM segment occasionally earns revenue from providing timberland management-related consulting services to third-parties and recognizes such revenue as the related services are provided. Real Estate The Real Estate segment’s activities consist of investing in and later selling improved properties, holding properties for later development and sale, and managing commercial properties. Revenue is generated primarily from sales of land, sales of development rights known as conservation easements (CE’s), sales of unimproved land from the Partnership’s timberland portfolio, and residential and commercial rents. Revenue on real estate sales is recorded on the date the sale closes. When a real estate transaction is closed with obligations to complete infrastructure or other construction, the portion of the total contract allocated to the post-closing obligations may be recognized over time as that work is performed, provided the customer either simultaneously receives and consumes the benefits as we perform under the contract, our performance creates or enhances the asset controlled by the customer, or we do not create an asset with an alternative use to the customer and we have an enforceable right to payment for the performance completed. Progress towards the satisfaction of our performance obligations is generally measured based on costs incurred relative to the total cost expected to be incurred for the performance obligations. The following table breaks down revenue for the Real Estate segment for the quarters and nine months ended September 30, 2018 and 2017 : Quarter ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Development rights (CE) $ — $ — $ 3,730 $ — Residential land sales 1,975 2,487 2,126 2,942 Unimproved land — — 125 — Total land sales 1,975 2,487 5,981 2,942 Rentals and other 541 336 1,268 863 Total revenue $ 2,516 $ 2,823 $ 7,249 $ 3,805 |
Partners' Capital Notes Disclos
Partners' Capital Notes Disclosure | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Partners' Capital Notes Disclosure | The Partnership has two general partners: Pope MGP, Inc. and Pope EGP, Inc. In total, these two entities own 60,000 limited partner units. The allocation of distributions, profits, and losses among the general and limited partners is pro rata across all units outstanding. |
Balance Sheet Of Partnership Co
Balance Sheet Of Partnership Co-Investments | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Of Partnership Co-Investments | ORM Timber Fund II, Inc. (Fund II), ORM Timber Fund III (REIT) Inc. (Fund III), and ORM Timber Fund IV LLC (Fund IV), collectively “the Funds”, were formed by Olympic Resource Management LLC (ORMLLC), a wholly owned subsidiary of the Partnership, for the purpose of raising capital to purchase timberlands. The objective of these Funds is to generate a return on investments through the acquisition, management, value enhancement, and sale of timberland properties. Each fund is organized to operate for a specific term from the end of its respective investment period; ten years for each of Fund II and Fund III, and fifteen years for Fund IV. Fund II and Fund III are scheduled to terminate in March 2021 and December 2025 , respectively. Fund IV will terminate on the fifteenth anniversary of the end of its investment period, which will occur on the earlier of placement of all committed capital or December 31, 2019, subject to certain extension provisions. Pope Resources and ORMLLC together own equity interests totaling 20% of Fund II, 5% of Fund III, and 15% of Fund IV. The Funds are considered variable interest entities because their organizational and governance structures are the functional equivalent of a limited partnership. As the managing member of the Funds, the Partnership is the primary beneficiary of each of the Funds as it has the authority to direct the activities that most significantly impact their economic performance, as well as the right to receive benefits and the obligation to absorb losses that could potentially be significant to the Funds. Accordingly, the Funds are consolidated into the Partnership’s financial statements. The obligations of each of the Funds are non-recourse to the Partnership. In January 2018, Fund IV closed on the acquisitions of two tree farms, one in southwestern Oregon and one in south Puget Sound, Washington, for $33.6 million and $80.4 million , respectively. In 2017, Fund IV paid deposits totaling $5.7 million for these acquisitions. The Partnership’s share of the combined purchase price was $17.0 million . The combined purchase price was allocated $100.7 million to timber and roads, and $13.3 million to the underlying land. In October 2018, Fund IV closed on the acquisition of a tree farm in south Puget Sound, Washington for $32.2 million , of which the Partnership’s share was $4.8 million . In January 2017, Fund II closed on the sale of one of its tree farms, located on the Oregon coast, for $26.5 million . The Partnership’s share of the pretax results from this tree farm was a gain of $2.5 million for the nine months ended September 30, 2017 . The assets and liabilities of the Funds as of September 30, 2018 , and December 31, 2017 , were as follows: (in thousands) September 30, 2018 December 31, 2017 Assets: Cash $ 4,575 $ 1,636 Other current assets 7,905 2,481 Total current assets 12,480 4,117 Properties and equipment, net of accumulated depreciation 332,068 235,046 Other long-term assets — 5,683 Total assets $ 344,548 $ 244,846 Liabilities and equity: Current liabilities $ 3,635 $ 2,862 Long-term debt, net of unamortized debt issuance costs 57,307 57,291 Funds’ equity 283,606 184,693 Total liabilities and equity $ 344,548 $ 244,846 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other assets consisted of the following at September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Deferred tax assets, net $ 412 $ 465 Cash held by like-kind exchange intermediaries — 598 Deposits for acquisitions of timberland — 5,688 Investment in Real Estate joint venture entity 5,895 5,895 Advances to Real Estate joint venture entity 753 37 Note receivable 1,802 2,625 Total $ 8,862 $ 15,308 |
Segment Reporting Disclosure
Segment Reporting Disclosure | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | In the presentation of the Partnership’s revenue and operating income (loss) by segment, all intersegment revenue and expense is eliminated to determine operating income (loss) reported externally. The following tables reconcile internally reported income (loss) from operations to externally reported income (loss) from operations by business segment. Beginning with the first quarter of 2018, we measure segment performance based on Adjusted EBITDDA in addition to operating income. We define Adjusted EBITDDA as earnings, on an internal basis, before interest, taxes, depletion, depreciation, amortization, gain or loss on sales of timberland, and environmental remediation expense. The following tables reconcile internally reported operating income (loss) from operations to Adjusted EBITDDA. In addition, we have changed our internal reporting and our segment reporting to segregate our former “Fee Timber” segment into two segments: “Partnership Timber” includes the operating results of the Partnership’s 100%-owned timberland, while “Funds Timber” includes the operating results of its three private equity timber funds. Our chief operating decision maker reviews internal financial reporting information at the Partnership Timber and Funds Timber level to allocate resources and evaluate the results of the business. Prior period segment disclosures have been revised to reflect our current segment structure. Quarter ended September 30, (in thousands) Partnership Timber Funds Timber Timberland Investment Management Real Estate Other Consolidated 2018 Revenue - internal $ 12,373 $ 13,253 $ 1,212 $ 2,636 $ — $ 29,474 Eliminations (134 ) — (1,212 ) (120 ) — (1,466 ) Revenue - external 12,239 13,253 — 2,516 — 28,008 Cost of sales (4,976 ) (9,932 ) — (1,861 ) — (16,769 ) Operating, general and administrative expenses - internal (1,729 ) (2,435 ) (1,206 ) (1,209 ) (1,954 ) (8,533 ) Eliminations 43 1,212 151 36 24 1,466 Operating, general and administrative expenses - external (1,686 ) (1,223 ) (1,055 ) (1,173 ) (1,930 ) (7,067 ) Income (loss) from operations - internal 5,668 886 6 (434 ) (1,954 ) 4,172 Eliminations (91 ) 1,212 (1,061 ) (84 ) 24 — Income (loss) from operations - external $ 5,577 $ 2,098 $ (1,055 ) $ (518 ) $ (1,930 ) $ 4,172 Income (loss) from operations - internal $ 5,668 $ 886 $ 6 $ (434 ) $ (1,954 ) $ 4,172 Depletion, depreciation, and amortization 1,094 5,906 21 68 10 7,099 Adjusted EBITDDA $ 6,762 $ 6,792 $ 27 $ (366 ) $ (1,944 ) $ 11,271 2017 Revenue - internal $ 8,981 $ 7,082 $ 829 $ 2,920 $ — $ 19,812 Eliminations (83 ) — (829 ) (97 ) — (1,009 ) Revenue - external 8,898 7,082 — 2,823 — 18,803 Cost of sales (3,552 ) (5,717 ) — (2,119 ) — (11,388 ) Operating, general and administrative expenses - internal (1,576 ) (1,937 ) (780 ) (1,213 ) (1,157 ) (6,663 ) Eliminations 38 829 101 18 23 1,009 Operating, general and administrative expenses -external (1,538 ) (1,108 ) (679 ) (1,195 ) (1,134 ) (5,654 ) Gain on sale of timberland — 44 — — — 44 Income (loss) from operations - internal 3,853 (528 ) 49 (412 ) (1,157 ) 1,805 Eliminations (45 ) 829 (728 ) (79 ) 23 — Income (loss) from operations - external $ 3,808 $ 301 $ (679 ) $ (491 ) $ (1,134 ) $ 1,805 Income (loss) from operations - internal $ 3,853 $ (528 ) $ 49 $ (412 ) $ (1,157 ) $ 1,805 Depletion, depreciation, and amortization 912 3,374 8 69 13 4,376 (Gain) loss on sale of timberland — (44 ) — — — (44 ) Adjusted EBITDDA $ 4,765 $ 2,802 $ 57 $ (343 ) $ (1,144 ) $ 6,137 Nine Months Ended September 30, (in thousands) Partnership Timber Funds Timber Timberland Investment Management Real Estate Other Consolidated 2018 Revenue - internal $ 33,313 $ 40,711 $ 3,376 $ 7,621 $ — $ 85,021 Eliminations (366 ) — (3,376 ) (372 ) — (4,114 ) Revenue - external 32,947 40,711 — 7,249 — 80,907 Cost of sales (11,996 ) (28,754 ) — (2,894 ) — (43,644 ) Operating, general and administrative expenses - internal (5,076 ) (6,766 ) (3,337 ) (3,327 ) (5,033 ) (23,539 ) Eliminations 135 3,376 419 105 79 4,114 Operating, general and administrative expenses - external (4,941 ) (3,390 ) (2,918 ) (3,222 ) (4,954 ) (19,425 ) Environmental remediation — — — (2,900 ) — (2,900 ) Income (loss) from operations - internal 16,241 5,191 39 (1,500 ) (5,033 ) 14,938 Eliminations (231 ) 3,376 (2,957 ) (267 ) 79 — Income (loss) from operations - external $ 16,010 $ 8,567 $ (2,918 ) $ (1,767 ) $ (4,954 ) $ 14,938 Income (loss) from operations - internal $ 16,241 $ 5,191 $ 39 $ (1,500 ) $ (5,033 ) $ 14,938 Depletion, depreciation, and amortization 2,930 18,275 48 204 35 21,492 Environmental remediation — — — 2,900 — 2,900 Adjusted EBITDDA $ 19,171 $ 23,466 $ 87 $ 1,604 $ (4,998 ) $ 39,330 2017 Revenue - internal $ 26,425 $ 22,061 $ 2,494 $ 4,136 $ — $ 55,116 Eliminations (252 ) — (2,494 ) (331 ) — (3,077 ) Revenue - external 26,173 22,061 — 3,805 — 52,039 Cost of sales (10,430 ) (18,000 ) — (3,138 ) — (31,568 ) Operating, general and administrative expenses - internal (4,286 ) (5,372 ) (2,705 ) (3,929 ) (4,321 ) (20,613 ) Eliminations 135 2,494 309 58 81 3,077 Operating, general and administrative expenses - external (4,151 ) (2,878 ) (2,396 ) (3,871 ) (4,240 ) (17,536 ) Gain on sale of timberland — 12,547 — — — 12,547 Income (loss) from operations - internal 11,709 11,236 (211 ) (2,931 ) (4,321 ) 15,482 Eliminations (117 ) 2,494 (2,185 ) (273 ) 81 — Income (loss) from operations - external $ 11,592 $ 13,730 $ (2,396 ) $ (3,204 ) $ (4,240 ) $ 15,482 Income (loss) from operations - internal $ 11,709 $ 11,236 $ (211 ) $ (2,931 ) $ (4,321 ) $ 15,482 Depletion, depreciation, and amortization 2,877 9,931 24 211 40 13,083 Gain on sale of timberland — (12,547 ) — — — (12,547 ) Adjusted EBITDDA $ 14,586 $ 8,620 $ (187 ) $ (2,720 ) $ (4,281 ) $ 16,018 |
Earnings Per Unit
Earnings Per Unit | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Unit | Basic and diluted earnings per unit are calculated by dividing net income attributable to unitholders, adjusted for non-forfeitable distributions paid out to unvested restricted unitholders and preferred shareholders of Fund II and Fund III, by the weighted average units outstanding during the period. There were no dilutive securities outstanding during the periods presented. The following table shows the calculation of basic and diluted earnings per unit: Quarter Ended Nine Months Ended (in thousands, except per unit amounts) 2018 2017 2018 2017 Net and comprehensive income attributable to Pope Resources’ unitholders $ 2,644 $ 1,658 $ 8,562 $ 5,186 Less: Non-forfeitable distributions paid to unvested restricted unitholders (27 ) (25 ) (55 ) (84 ) Preferred share dividends - ORM Timber Funds (8 ) (8 ) (23 ) (23 ) Net and comprehensive income for calculation of earnings per unit $ 2,609 $ 1,625 $ 8,484 $ 5,079 Basic and diluted weighted average units outstanding 4,316 4,324 4,319 4,325 Basic and diluted net earnings per unit $ 0.60 $ 0.38 $ 1.96 $ 1.17 |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | In the first quarter of 2018 , the Partnership issued 11,393 restricted units pursuant to the management incentive compensation program and 3,575 restricted units to members of the Board of Directors. These restricted units vest ratably over four years with the grant date fair value equal to the market price on the date of grant. During the nine months ended September 30, 2018 , 1,198 units were granted with no restrictions to certain board members who elected to receive their quarterly board compensation in the form of units rather than cash. Units granted to directors are included in the calculation of total equity compensation expense which is recognized over the vesting period, for restricted units, or immediately for unrestricted units. Grants to retirement-eligible individuals on the date of grant are expensed immediately. The Partnership recognized $202,000 and $166,000 of equity compensation expense in the third quarter of 2018 and 2017 , respectively, related to these compensation programs and $924,000 and $950,000 for the nine months ended September 30, 2018 and 2017 , respectively. |
Cash Flow, Supplemental Disclos
Cash Flow, Supplemental Disclosures | 9 Months Ended |
Sep. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures | Supplemental disclosure of cash flow information: interest paid, net of amounts capitalized, totaled $3.5 million and $3.2 million during the first nine months of 2018 and 2017 , respectively. Income taxes paid totaled $660,000 and $65,000 for the first nine months of 2018 and 2017 , respectively. |
Timberland Acquisition
Timberland Acquisition | 9 Months Ended |
Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Timberland Acquisition | During the first nine months of 2018, the Partnership closed on six acquisitions of timberland in western Washington totaling 1,342 acres for $7.2 million . The Partnership utilized $598,000 of funds held by like-kind exchange intermediaries to fund a portion of these acquisitions. The aggregate purchase price was allocated $869,000 to land and $6.3 million to timber and roads. Part of the consideration paid for one of these transactions involved the conveyance by the Partnership of 365 acres of non-strategic timberland to the seller, valued at $214,000 , with the remainder paid in cash. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | The Partnership’s financial instruments include cash, accounts receivable, and a note receivable, included in other assets, for which the carrying amount of each represents fair value based on current market interest rates or their short-term nature. Collectively, the Partnership’s and the Funds’ fixed-rate debt has a carrying value of $101.5 million as of September 30, 2018 and December 31, 2017 . The estimated fair value of this debt, based on current interest rates for similar instruments (Level 2 inputs in the Fair Value Hierarchy), is approximately $101.1 million and $104.6 million as of September 30, 2018 and December 31, 2017 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The Partnership had an accrual for estimated environmental remediation costs of $6.7 million and $5.0 million as of September 30, 2018 and December 31, 2017 , respectively. The environmental remediation liability represents management’s estimate of payments to be made to remediate and monitor certain areas in and around Port Gamble Bay, Washington. In December 2013, a consent decree and Clean-up Action Plan (CAP) related to Port Gamble Bay were finalized with the Washington State Department of Ecology (DOE) and filed with Kitsap County Superior Court. In the third quarter of 2015, the Partnership selected a contractor to complete the remediation work. Remediation activity began in late September 2015 and the required in-water portion of the cleanup was completed in January 2017. This will be followed by cleanup activity on the millsite and by a monitoring period, which is estimated to be approximately 15 years. Management’s cost estimates for the remainder of the project are based on amounts included in construction contracts, bids from contractors, and estimates for project management and other professional fees. In February 2018, the Partnership and DOE entered into an agreed order with respect to the millsite under which the Partnership will perform a remedial investigation and feasibility study and develop a CAP. As with the in-water portion of the project, the CAP will define the scope of the remediation activity for the millsite. Based on design work completed to date, we discovered during the second quarter of 2018 that we will need to remove a greater volume of sediment from the millsite than we previously anticipated. The discovery of a higher volume of material to excavate, related capping, and updated estimates of long-term monitoring costs, caused the Partnership to increase its accrual by $2.9 million in the second quarter of 2018. Because the design of the millsite cleanup is not yet finalized, it is reasonably possible that the accrual for the millsite component of the liability may still increase. The design of the millsite is expected to be substantially complete by the end of 2018 and the cleanup activity is expected to commence in 2019. Certain environmental laws allow state, federal, and tribal trustees (collectively, the Trustees) to bring suit against property owners to recover damages for injuries to natural resources. Like the liability that attaches to current property owners in the cleanup context, liability for natural resource damages (NRD) can attach to a property owner simply because an injury to natural resources resulted from releases of hazardous substances on that owner’s property, regardless of culpability for the release. In the case of Port Gamble, the Trustees are alleging that the Partnership has NRD liability because of releases that occurred on its property. The Partnership has been in discussions with the Trustees regarding their claims and the alleged conditions in Port Gamble Bay, and has also been discussing restoration alternatives that might address the damages the Trustees allege. Discussions with the Trustees may result in an obligation for the Partnership to fund NRD restoration activities and past assessment costs that are greater than it has estimated, and it is reasonably possible that this component of the liability may increase beyond what has been accrued in the liability. Management expects to be in a position to update its estimate of the NRD liability, or range of liability, by the end of 2018. The environmental liability at September 30, 2018 is comprised of $2.1 million that management expects to expend in the next 12 months and $4.6 million thereafter. Activity in the environmental liability is as follows: (in thousands) Balance at Beginning of the Period Additions to Accrual Expenditures for Remediation Balance at Period-end Year ended December 31, 2016 $ 16,761 $ 7,700 $ (11,691 ) $ 12,770 Year ended December 31, 2017 12,770 — (7,791 ) 4,979 Quarter ended March 31, 2018 4,979 — (219 ) 4,760 Quarter ended June 30, 2018 4,760 2,900 (666 ) 6,994 Quarter ended September 30, 2018 $ 6,994 $ — $ (260 ) $ 6,734 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | n October 2018 , the Partnership amended its timberland mortgage credit facilities (Credit Agreement) with Northwest Farm Credit Services to increase its borrowing capacity. The expanded credit facilities consist of the following components: • $30.0 million revolving line of credit bearing interest, paid quarterly, at LIBOR plus a margin of 1.60% , and maturing in October 2023. At closing, $15.7 million was outstanding under this facility. • $40.0 million delayed-draw term facility with an ultimate maturity of October 2028, on which $4.0 million was drawn in October 2018 as a variable-rate segment. The Partnership may borrow at any time under this facility through October 2023, subject to certain conditions established in the Credit Agreement. Borrowings may bear interest, paid quarterly, at variable or fixed rates at the election of the Partnership. Variable-rate segments bear interest at LIBOR plus a margin of 1.60% . Fixed-rate segments bear interest at the lenders pricing index at the time of borrowing plus a margin of 1.60% for maturities up to five years, and 1.65% for maturities greater than five years. Variable-rate segments may be converted to fixed-rate segments at the election of the Partnership. Fixed-rate loan segments must be for a minimum of $5.0 million , and no more than five such fixed-rate loan segments may be outstanding at any time. Fixed-rate loan segment maturities may be from one through ten years at the election of the Partnership, not to exceed the ultimate maturity of October 2028. • $71.8 million fully funded, long-term facility that consists of: $9.8 million bearing interest at 6.40% , paid monthly, maturing September 2019 $6.0 million bearing interest at LIBOR plus 1.60% , paid quarterly, maturing October 2024 $10.0 million bearing interest at 6.05% , paid quarterly, maturing July 2025 $11.0 million bearing interest at 3.89% , paid quarterly, maturing July 2026 $11.0 million bearing interest at 4.13% , paid quarterly, maturing July 2028 $8.0 million bearing interest at 5.34% , paid quarterly, maturing October 2034 $8.0 million bearing interest at 5.34% , paid quarterly, maturing October 2035 $8.0 million bearing interest at 5.42% , paid quarterly, maturing October 2036 Variable-rate loan segments may be converted to fixed-rate loan segments with maturities from 1 - 10 , 12 , 15 or 18 years, not to exceed the ultimate maturity dates above. Any such fixed-rate loan segment will bear interest, paid quarterly, at the lender’s pricing index at the time of conversion plus margins of 1.60% for maturities up to five years, and 1.65% for maturities greater than five years. • Accordion feature that the Partnership may exercise in the future, subject to lender approval, to increase borrowing capacity by up to $50.0 million under either the $40.0 million or $71.8 million facility. Any such increases must be in $15.0 million minimum increments with no more than three such increases. The amended credit facilities eliminate the 3 :1 interest coverage ratio covenant that had previously applied to the loans. Instead, the interest coverage ratio will be calculated quarterly, and the interest margins will be adjusted if the interest coverage ratio is below 3 :1. The maximum interest margin is 2.20% , for variable-rate loan segments and prospective fixed-rate loan segments with maturities up to five years, and 2.25% for prospective fixed-rate loan segments with maturities greater than five years. The lender may reset the interest margin in October 2023, for the $40.0 million facility, and in October 2023, 2028, and 2033, for the $71.8 million facility. The amended credit facilities retain the requirements that the Partnership 1) not exceed a maximum debt-to-capitalization ratio of 30% , with total capitalization calculated using fair market (rather than carrying) value of timberland, roads and timber, and 2) not exceed a maximum loan-to-appraised value of collateral of 50% . These amended facilities are collateralized by a portion of the Partnership’s timberland. The Partnership intends to use borrowing capacity under these facilities to repay the $9.8 million fixed-rate loan segment that matures in September 2019. Accordingly, this loan segment is reflected in long-term debt at September 30, 2018. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | In February 2016, the FASB established Topic 842, Leases , which requires lessees to recognize leases on the balance sheet and disclose certain information about leasing arrangements. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as financing or operating, with classification affecting the pattern and classification of expense recognition in the income statement. For lessors, leases will be classified as a sales-type, direct financing, or operating lease. A lease is classified as a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. The new standard is effective for us on January 1, 2019. We expect to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of optional practical expedients in transition. We expect to elect all of the new standard’s available transition practical expedients. Due to the Partnership’s limited leasing activity, we do not expect the effect of this standard to be material to the Partnership’s consolidated financial statements. As a lessee, we currently believe that the most significant effect relates to the recognition of new ROU assets and lease liabilities on our balance sheet for our leases, which consist principally of leases of office equipment and office space. We expect to elect the practical expedient to not separate lease and non-lease components for all leases. As a lessor, we currently believe that all of our leases, which consist of leases of real estate, will continue to be classified as operating leases under the new standard. Effective January 1, 2018, the Partnership adopted Topic 606, Revenue from Contracts with Customers . For revenue from the Partnership Timber and Funds Timber segments, which consists primarily of the sale of logs, there were no changes to the timing or amount of revenue recognized because contracts are legally enforceable, the transaction price is fixed, and performance is completed and control transfers at a point in time, typically when risk of loss and title passes to the customer. Similarly, no changes were identified to the timing or amount of revenue recognized from certain components of other revenue in these segments, including commercial thinning, royalties from gravel mines and quarries, and land use permits. For timber deed sales, the timing of revenue recognition was accelerated under the new standard to the effective date of the contract, whereas under the previous revenue recognition guidance the revenue was generally recognized when the timber was harvested by the customer. Under Topic 606, revenue recognized from timber deed sales in the third quarter of 2018 was $588,000 less than it would have been under the previous revenue recognition standards. For the nine months ended September 30, 2018, revenue recognized under Topic 606 was $6.9 million greater than it would have been under the previous revenue recognition accounting standards. For the Real Estate segment, this new standard may result in accelerating the recognition of revenue for performance obligations that are satisfied over time, which generally consist of construction and landscaping activity in common areas completed after transaction closing. The Partnership adopted this standard using the cumulative effect transition method applied to uncompleted contracts as of the date of adoption. The Partnership, however, had no uncompleted contracts at the date of adoption. Accordingly, the adoption of this standard did not have a cumulative effect on the Partnership’s consolidated financial statements. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract Assets | Significant changes in the contract asset balance during the period were as follows, and there were no contract liabilities as of September 30, 2018 , and December 31, 2017 : Contract assets, January 1, 2018 $ — Revenue recognized from the satisfaction of performance obligations 10,255 Revenue recognized from changes in estimates of variable consideration 249 Transferred to receivables from contract assets (5,557 ) Contract assets, September 30, 2018 $ 4,947 |
Disaggregation of Revenue | The following table breaks down revenue for the Real Estate segment for the quarters and nine months ended September 30, 2018 and 2017 : Quarter ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Development rights (CE) $ — $ — $ 3,730 $ — Residential land sales 1,975 2,487 2,126 2,942 Unimproved land — — 125 — Total land sales 1,975 2,487 5,981 2,942 Rentals and other 541 336 1,268 863 Total revenue $ 2,516 $ 2,823 $ 7,249 $ 3,805 The following table presents log sale and other revenue for the quarters and nine months ended September 30, 2018 and 2017 : (in thousands) Quarter ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Partnership Timber Log sale revenue $ 11,638 $ 8,298 $ 31,312 $ 24,686 Other revenue 601 600 1,635 1,487 Total revenue $ 12,239 $ 8,898 $ 32,947 $ 26,173 Funds Timber Log sale revenue $ 11,353 $ 5,682 $ 29,356 $ 19,912 Timber deed sale revenue 1,640 1,235 10,504 1,945 Other revenue 260 165 851 204 Total revenue $ 13,253 $ 7,082 $ 40,711 $ 22,061 |
Balance Sheet Of Partnership _2
Balance Sheet Of Partnership Co-Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Partnership's Consolidated Balance Sheet included Assets and Liabilities of Funds | The assets and liabilities of the Funds as of September 30, 2018 , and December 31, 2017 , were as follows: (in thousands) September 30, 2018 December 31, 2017 Assets: Cash $ 4,575 $ 1,636 Other current assets 7,905 2,481 Total current assets 12,480 4,117 Properties and equipment, net of accumulated depreciation 332,068 235,046 Other long-term assets — 5,683 Total assets $ 344,548 $ 244,846 Liabilities and equity: Current liabilities $ 3,635 $ 2,862 Long-term debt, net of unamortized debt issuance costs 57,307 57,291 Funds’ equity 283,606 184,693 Total liabilities and equity $ 344,548 $ 244,846 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following at September 30, 2018 and December 31, 2017 : September 30, 2018 December 31, 2017 Deferred tax assets, net $ 412 $ 465 Cash held by like-kind exchange intermediaries — 598 Deposits for acquisitions of timberland — 5,688 Investment in Real Estate joint venture entity 5,895 5,895 Advances to Real Estate joint venture entity 753 37 Note receivable 1,802 2,625 Total $ 8,862 $ 15,308 |
Segment Reporting Disclosure (T
Segment Reporting Disclosure (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Internally Reported Income (Loss) from Operations to Externally Reported Income (Loss) from Operations by Business Segment | The following tables reconcile internally reported income (loss) from operations to externally reported income (loss) from operations by business segment. Beginning with the first quarter of 2018, we measure segment performance based on Adjusted EBITDDA in addition to operating income. We define Adjusted EBITDDA as earnings, on an internal basis, before interest, taxes, depletion, depreciation, amortization, gain or loss on sales of timberland, and environmental remediation expense. The following tables reconcile internally reported operating income (loss) from operations to Adjusted EBITDDA. In addition, we have changed our internal reporting and our segment reporting to segregate our former “Fee Timber” segment into two segments: “Partnership Timber” includes the operating results of the Partnership’s 100%-owned timberland, while “Funds Timber” includes the operating results of its three private equity timber funds. Our chief operating decision maker reviews internal financial reporting information at the Partnership Timber and Funds Timber level to allocate resources and evaluate the results of the business. Prior period segment disclosures have been revised to reflect our current segment structure. Quarter ended September 30, (in thousands) Partnership Timber Funds Timber Timberland Investment Management Real Estate Other Consolidated 2018 Revenue - internal $ 12,373 $ 13,253 $ 1,212 $ 2,636 $ — $ 29,474 Eliminations (134 ) — (1,212 ) (120 ) — (1,466 ) Revenue - external 12,239 13,253 — 2,516 — 28,008 Cost of sales (4,976 ) (9,932 ) — (1,861 ) — (16,769 ) Operating, general and administrative expenses - internal (1,729 ) (2,435 ) (1,206 ) (1,209 ) (1,954 ) (8,533 ) Eliminations 43 1,212 151 36 24 1,466 Operating, general and administrative expenses - external (1,686 ) (1,223 ) (1,055 ) (1,173 ) (1,930 ) (7,067 ) Income (loss) from operations - internal 5,668 886 6 (434 ) (1,954 ) 4,172 Eliminations (91 ) 1,212 (1,061 ) (84 ) 24 — Income (loss) from operations - external $ 5,577 $ 2,098 $ (1,055 ) $ (518 ) $ (1,930 ) $ 4,172 Income (loss) from operations - internal $ 5,668 $ 886 $ 6 $ (434 ) $ (1,954 ) $ 4,172 Depletion, depreciation, and amortization 1,094 5,906 21 68 10 7,099 Adjusted EBITDDA $ 6,762 $ 6,792 $ 27 $ (366 ) $ (1,944 ) $ 11,271 2017 Revenue - internal $ 8,981 $ 7,082 $ 829 $ 2,920 $ — $ 19,812 Eliminations (83 ) — (829 ) (97 ) — (1,009 ) Revenue - external 8,898 7,082 — 2,823 — 18,803 Cost of sales (3,552 ) (5,717 ) — (2,119 ) — (11,388 ) Operating, general and administrative expenses - internal (1,576 ) (1,937 ) (780 ) (1,213 ) (1,157 ) (6,663 ) Eliminations 38 829 101 18 23 1,009 Operating, general and administrative expenses -external (1,538 ) (1,108 ) (679 ) (1,195 ) (1,134 ) (5,654 ) Gain on sale of timberland — 44 — — — 44 Income (loss) from operations - internal 3,853 (528 ) 49 (412 ) (1,157 ) 1,805 Eliminations (45 ) 829 (728 ) (79 ) 23 — Income (loss) from operations - external $ 3,808 $ 301 $ (679 ) $ (491 ) $ (1,134 ) $ 1,805 Income (loss) from operations - internal $ 3,853 $ (528 ) $ 49 $ (412 ) $ (1,157 ) $ 1,805 Depletion, depreciation, and amortization 912 3,374 8 69 13 4,376 (Gain) loss on sale of timberland — (44 ) — — — (44 ) Adjusted EBITDDA $ 4,765 $ 2,802 $ 57 $ (343 ) $ (1,144 ) $ 6,137 Nine Months Ended September 30, (in thousands) Partnership Timber Funds Timber Timberland Investment Management Real Estate Other Consolidated 2018 Revenue - internal $ 33,313 $ 40,711 $ 3,376 $ 7,621 $ — $ 85,021 Eliminations (366 ) — (3,376 ) (372 ) — (4,114 ) Revenue - external 32,947 40,711 — 7,249 — 80,907 Cost of sales (11,996 ) (28,754 ) — (2,894 ) — (43,644 ) Operating, general and administrative expenses - internal (5,076 ) (6,766 ) (3,337 ) (3,327 ) (5,033 ) (23,539 ) Eliminations 135 3,376 419 105 79 4,114 Operating, general and administrative expenses - external (4,941 ) (3,390 ) (2,918 ) (3,222 ) (4,954 ) (19,425 ) Environmental remediation — — — (2,900 ) — (2,900 ) Income (loss) from operations - internal 16,241 5,191 39 (1,500 ) (5,033 ) 14,938 Eliminations (231 ) 3,376 (2,957 ) (267 ) 79 — Income (loss) from operations - external $ 16,010 $ 8,567 $ (2,918 ) $ (1,767 ) $ (4,954 ) $ 14,938 Income (loss) from operations - internal $ 16,241 $ 5,191 $ 39 $ (1,500 ) $ (5,033 ) $ 14,938 Depletion, depreciation, and amortization 2,930 18,275 48 204 35 21,492 Environmental remediation — — — 2,900 — 2,900 Adjusted EBITDDA $ 19,171 $ 23,466 $ 87 $ 1,604 $ (4,998 ) $ 39,330 2017 Revenue - internal $ 26,425 $ 22,061 $ 2,494 $ 4,136 $ — $ 55,116 Eliminations (252 ) — (2,494 ) (331 ) — (3,077 ) Revenue - external 26,173 22,061 — 3,805 — 52,039 Cost of sales (10,430 ) (18,000 ) — (3,138 ) — (31,568 ) Operating, general and administrative expenses - internal (4,286 ) (5,372 ) (2,705 ) (3,929 ) (4,321 ) (20,613 ) Eliminations 135 2,494 309 58 81 3,077 Operating, general and administrative expenses - external (4,151 ) (2,878 ) (2,396 ) (3,871 ) (4,240 ) (17,536 ) Gain on sale of timberland — 12,547 — — — 12,547 Income (loss) from operations - internal 11,709 11,236 (211 ) (2,931 ) (4,321 ) 15,482 Eliminations (117 ) 2,494 (2,185 ) (273 ) 81 — Income (loss) from operations - external $ 11,592 $ 13,730 $ (2,396 ) $ (3,204 ) $ (4,240 ) $ 15,482 Income (loss) from operations - internal $ 11,709 $ 11,236 $ (211 ) $ (2,931 ) $ (4,321 ) $ 15,482 Depletion, depreciation, and amortization 2,877 9,931 24 211 40 13,083 Gain on sale of timberland — (12,547 ) — — — (12,547 ) Adjusted EBITDDA $ 14,586 $ 8,620 $ (187 ) $ (2,720 ) $ (4,281 ) $ 16,018 |
Earnings Per Unit (Tables)
Earnings Per Unit (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Unit | The following table shows the calculation of basic and diluted earnings per unit: Quarter Ended Nine Months Ended (in thousands, except per unit amounts) 2018 2017 2018 2017 Net and comprehensive income attributable to Pope Resources’ unitholders $ 2,644 $ 1,658 $ 8,562 $ 5,186 Less: Non-forfeitable distributions paid to unvested restricted unitholders (27 ) (25 ) (55 ) (84 ) Preferred share dividends - ORM Timber Funds (8 ) (8 ) (23 ) (23 ) Net and comprehensive income for calculation of earnings per unit $ 2,609 $ 1,625 $ 8,484 $ 5,079 Basic and diluted weighted average units outstanding 4,316 4,324 4,319 4,325 Basic and diluted net earnings per unit $ 0.60 $ 0.38 $ 1.96 $ 1.17 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity in Environmental Liability | Activity in the environmental liability is as follows: (in thousands) Balance at Beginning of the Period Additions to Accrual Expenditures for Remediation Balance at Period-end Year ended December 31, 2016 $ 16,761 $ 7,700 $ (11,691 ) $ 12,770 Year ended December 31, 2017 12,770 — (7,791 ) 4,979 Quarter ended March 31, 2018 4,979 — (219 ) 4,760 Quarter ended June 30, 2018 4,760 2,900 (666 ) 6,994 Quarter ended September 30, 2018 $ 6,994 $ — $ (260 ) $ 6,734 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 28,008,000 | $ 18,803,000 | $ 80,907,000 | $ 52,039,000 | |
Accounts receivable, net | 5,654,000 | 5,654,000 | $ 6,427,000 | ||
Contract liabilities | 0 | 0 | 0 | ||
Receivables from contracts with customers | |||||
Disaggregation of Revenue [Line Items] | |||||
Accounts receivable, net | 4,400,000 | 4,400,000 | $ 4,400,000 | ||
Topic 606 | Timber deed sale revenue | Difference due to Topic 606 | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ (588,000) | $ 6,900,000 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Contract Assets) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Contract With Customer, Asset And Liability [Roll Forward] | |
Contract assets, January 1, 2018 | $ 0 |
Revenue recognized from the satisfaction of performance obligations | 10,255 |
Revenue recognized from changes in estimates of variable consideration | 249 |
Transferred to receivables from contract assets | (5,557) |
Contract assets, September 30, 2018 | $ 4,947 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers (Log Sale and Other Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 28,008 | $ 18,803 | $ 80,907 | $ 52,039 |
Partnership Timber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12,239 | 8,898 | 32,947 | 26,173 |
Funds Timber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,253 | 7,082 | 40,711 | 22,061 |
Log sale revenue | Partnership Timber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,638 | 8,298 | 31,312 | 24,686 |
Log sale revenue | Funds Timber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,353 | 5,682 | 29,356 | 19,912 |
Timber deed sale revenue | Funds Timber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,640 | 1,235 | 10,504 | 1,945 |
Other revenue | Partnership Timber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 601 | 600 | 1,635 | 1,487 |
Other revenue | Funds Timber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 260 | $ 165 | $ 851 | $ 204 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers (Real Estate Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 28,008 | $ 18,803 | $ 80,907 | $ 52,039 |
Real Estate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,516 | 2,823 | 7,249 | 3,805 |
Real Estate | Total land sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,975 | 2,487 | 5,981 | 2,942 |
Real Estate | Development rights (CE) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 3,730 | 0 |
Real Estate | Residential land sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,975 | 2,487 | 2,126 | 2,942 |
Real Estate | Unimproved land | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 0 | 0 | 125 | 0 |
Real Estate | Rentals and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 541 | $ 336 | $ 1,268 | $ 863 |
Partners' Capital Notes Discl_2
Partners' Capital Notes Disclosure (Details) | Sep. 30, 2018Partnershares | Dec. 31, 2017shares |
Equity [Abstract] | ||
Number of general partners | Partner | 2 | |
Number of partnership units owned by two general partners | shares | 60,000 | 60,000 |
Balance Sheet Of Partnership _3
Balance Sheet Of Partnership Co-Investments (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jan. 31, 2018USD ($)Property | Jan. 31, 2017USD ($)Property | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Oct. 31, 2018USD ($) | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Pretax income (loss) | $ 2,861 | $ 626 | $ 11,235 | $ 12,176 | ||||
Fund II | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Operating term for Fund | 10 years | |||||||
Pope Resources and ORMLLC combined ownership percentage | 20.00% | |||||||
Number of tree farms sold | Property | 1 | |||||||
Proceeds from sale of tree farms | $ 26,500 | |||||||
Fund II | Productive Land | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Pretax income (loss) | $ 2,500 | |||||||
Fund III | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Operating term for Fund | 10 years | |||||||
Pope Resources and ORMLLC combined ownership percentage | 5.00% | |||||||
Fund IV | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Operating term for Fund | 15 years | |||||||
Pope Resources and ORMLLC combined ownership percentage | 15.00% | |||||||
Total purchase price | $ 17,000 | |||||||
Payment for deposit | $ 5,700 | |||||||
Purchase price allocated to timber and roads | 100,700 | |||||||
Purchase price allocated to underlying land | $ 13,300 | |||||||
Southwestern Oregon and South Puget Sound Washington | Fund IV | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Number of acquisitions | Property | 2 | |||||||
Southwestern Oregon | Fund IV | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Number of acquisitions | Property | 1 | |||||||
Total purchase price | $ 33,600 | |||||||
South Puget Sound, Washington | Fund IV | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Number of acquisitions | Property | 1 | |||||||
Total purchase price | $ 80,400 | |||||||
Subsequent Event | South Puget Sound, Washington | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Total purchase price | $ 4,800 | |||||||
Subsequent Event | South Puget Sound, Washington | Fund IV | ||||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||||||
Total purchase price | $ 32,200 |
Balance Sheet Of Partnership _4
Balance Sheet Of Partnership Co-Investments (Partnership's Consolidated Balance Sheet included Assets and Liabilities of Funds) (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash | $ 4,575 | $ 1,636 |
Total current assets | 24,393 | 18,030 |
Properties and equipment, net of accumulated depreciation | 451,438 | 347,335 |
Other assets | 8,862 | 15,308 |
Total assets | 484,693 | 380,673 |
Liabilities and equity: | ||
Current liabilities | 1,165 | 401 |
Total liabilities, partners’ capital and noncontrolling interests | 484,693 | 380,673 |
Funds Timber | ||
Assets: | ||
Cash | 4,575 | 1,636 |
Other current assets | 7,905 | 2,481 |
Total current assets | 12,480 | 4,117 |
Properties and equipment, net of accumulated depreciation | 332,068 | 235,046 |
Other assets | 0 | 5,683 |
Total assets | 344,548 | 244,846 |
Liabilities and equity: | ||
Current liabilities | 3,635 | 2,862 |
Long-term debt, net of unamortized debt issuance costs | 57,307 | 57,291 |
Funds’ equity | 283,606 | 184,693 |
Total liabilities, partners’ capital and noncontrolling interests | $ 344,548 | $ 244,846 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred tax assets, net | $ 412 | $ 465 |
Cash held by like-kind exchange intermediaries | 0 | 598 |
Deposits for acquisitions of timberland | 0 | 5,688 |
Investment in Real Estate joint venture entity | 5,895 | 5,895 |
Advances to Real Estate joint venture entity | 753 | 37 |
Note receivable | 1,802 | 2,625 |
Total | $ 8,862 | $ 15,308 |
Segment Reporting Disclosure (D
Segment Reporting Disclosure (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)fund | Sep. 30, 2017USD ($) | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | $ 28,008 | $ 18,803 | $ 80,907 | $ 52,039 |
Cost of sales | (16,769) | (11,388) | (43,644) | (31,568) |
Operating, general and administrative expenses | (7,067) | (5,654) | (19,425) | (17,536) |
Environmental remediation | 0 | 0 | (2,900) | 0 |
Gain on sale of timberland | 0 | 44 | 0 | 12,547 |
Income (loss) from operations | 4,172 | 1,805 | 14,938 | 15,482 |
Depletion, depreciation, and amortization | 7,099 | 4,376 | 21,492 | 13,083 |
Adjusted EBITDDA | 11,271 | 6,137 | 39,330 | 16,018 |
Partnership Timber | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 12,239 | 8,898 | 32,947 | 26,173 |
Cost of sales | (4,976) | (3,552) | (11,996) | (10,430) |
Operating, general and administrative expenses | (1,686) | (1,538) | (4,941) | (4,151) |
Environmental remediation | 0 | |||
Gain on sale of timberland | 0 | 0 | ||
Income (loss) from operations | 5,577 | 3,808 | 16,010 | 11,592 |
Depletion, depreciation, and amortization | 1,094 | 912 | 2,930 | 2,877 |
Adjusted EBITDDA | 6,762 | 4,765 | $ 19,171 | 14,586 |
Funds Timber | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Number of private equity timber funds | fund | 3 | |||
Revenue | 13,253 | 7,082 | $ 40,711 | 22,061 |
Cost of sales | (9,932) | (5,717) | (28,754) | (18,000) |
Operating, general and administrative expenses | (1,223) | (1,108) | (3,390) | (2,878) |
Environmental remediation | 0 | |||
Gain on sale of timberland | 44 | 12,547 | ||
Income (loss) from operations | 2,098 | 301 | 8,567 | 13,730 |
Depletion, depreciation, and amortization | 5,906 | 3,374 | 18,275 | 9,931 |
Adjusted EBITDDA | 6,792 | 2,802 | 23,466 | 8,620 |
Timberland Investment Management | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Operating, general and administrative expenses | (1,055) | (679) | (2,918) | (2,396) |
Environmental remediation | 0 | |||
Gain on sale of timberland | 0 | 0 | ||
Income (loss) from operations | (1,055) | (679) | (2,918) | (2,396) |
Depletion, depreciation, and amortization | 21 | 8 | 48 | 24 |
Adjusted EBITDDA | 27 | 57 | 87 | (187) |
Real Estate | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 2,516 | 2,823 | 7,249 | 3,805 |
Cost of sales | (1,861) | (2,119) | (2,894) | (3,138) |
Operating, general and administrative expenses | (1,173) | (1,195) | (3,222) | (3,871) |
Environmental remediation | (2,900) | |||
Gain on sale of timberland | 0 | 0 | ||
Income (loss) from operations | (518) | (491) | (1,767) | (3,204) |
Depletion, depreciation, and amortization | 68 | 69 | 204 | 211 |
Adjusted EBITDDA | (366) | (343) | 1,604 | (2,720) |
Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Operating, general and administrative expenses | (1,930) | (1,134) | (4,954) | (4,240) |
Environmental remediation | 0 | |||
Gain on sale of timberland | 0 | 0 | ||
Income (loss) from operations | (1,930) | (1,134) | (4,954) | (4,240) |
Depletion, depreciation, and amortization | 10 | 13 | 35 | 40 |
Adjusted EBITDDA | (1,944) | (1,144) | (4,998) | (4,281) |
Internal | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 29,474 | 19,812 | 85,021 | 55,116 |
Operating, general and administrative expenses | (8,533) | (6,663) | (23,539) | (20,613) |
Income (loss) from operations | 4,172 | 1,805 | 14,938 | 15,482 |
Internal | Partnership Timber | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 12,373 | 8,981 | 33,313 | 26,425 |
Operating, general and administrative expenses | (1,729) | (1,576) | (5,076) | (4,286) |
Income (loss) from operations | 5,668 | 3,853 | 16,241 | 11,709 |
Internal | Funds Timber | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 13,253 | 7,082 | 40,711 | 22,061 |
Operating, general and administrative expenses | (2,435) | (1,937) | (6,766) | (5,372) |
Income (loss) from operations | 886 | (528) | 5,191 | 11,236 |
Internal | Timberland Investment Management | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 1,212 | 829 | 3,376 | 2,494 |
Operating, general and administrative expenses | (1,206) | (780) | (3,337) | (2,705) |
Income (loss) from operations | 6 | 49 | 39 | (211) |
Internal | Real Estate | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 2,636 | 2,920 | 7,621 | 4,136 |
Operating, general and administrative expenses | (1,209) | (1,213) | (3,327) | (3,929) |
Income (loss) from operations | (434) | (412) | (1,500) | (2,931) |
Internal | Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating, general and administrative expenses | (1,954) | (1,157) | (5,033) | (4,321) |
Income (loss) from operations | (1,954) | (1,157) | (5,033) | (4,321) |
Eliminations | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | (1,466) | (1,009) | (4,114) | (3,077) |
Operating, general and administrative expenses | 1,466 | 1,009 | 4,114 | 3,077 |
Income (loss) from operations | 0 | 0 | 0 | 0 |
Eliminations | Partnership Timber | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | (134) | (83) | (366) | (252) |
Operating, general and administrative expenses | 43 | 38 | 135 | 135 |
Income (loss) from operations | (91) | (45) | (231) | (117) |
Eliminations | Funds Timber | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating, general and administrative expenses | 1,212 | 829 | 3,376 | 2,494 |
Income (loss) from operations | 1,212 | 829 | 3,376 | 2,494 |
Eliminations | Timberland Investment Management | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | (1,212) | (829) | (3,376) | (2,494) |
Operating, general and administrative expenses | 151 | 101 | 419 | 309 |
Income (loss) from operations | (1,061) | (728) | (2,957) | (2,185) |
Eliminations | Real Estate | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | (120) | (97) | (372) | (331) |
Operating, general and administrative expenses | 36 | 18 | 105 | 58 |
Income (loss) from operations | (84) | (79) | (267) | (273) |
Eliminations | Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating, general and administrative expenses | 24 | 23 | 79 | 81 |
Income (loss) from operations | $ 24 | $ 23 | $ 79 | $ 81 |
Earnings Per Unit (Details)
Earnings Per Unit (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net and comprehensive income attributable to Pope Resources’ unitholders | $ 2,644 | $ 1,658 | $ 8,562 | $ 5,186 |
Less: | ||||
Non-forfeitable distributions paid to unvested restricted unitholders | (27) | (25) | (55) | (84) |
Preferred share dividends - ORM Timber Funds | (8) | (8) | (23) | (23) |
Net and comprehensive income for calculation of earnings per unit | $ 2,609 | $ 1,625 | $ 8,484 | $ 5,079 |
Basic and diluted weighted average units outstanding (units) | 4,316 | 4,324 | 4,319 | 4,325 |
Basic and diluted net earnings per unit (in dollars per unit) | $ 0.60 | $ 0.38 | $ 1.96 | $ 1.17 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity compensation units, granted in period (in shares) | 1,198 | ||||
Restricted Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity compensation units, granted in period (in shares) | 11,393 | ||||
Vesting period of restricted stock unit award | 4 years | ||||
Restricted Units | Long Term Incentive Plans | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity compensation expense | $ 202 | $ 166 | $ 924 | $ 950 | |
Restricted Units | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity compensation units, granted in period (in shares) | 3,575 |
Cash Flow, Supplemental Discl_2
Cash Flow, Supplemental Disclosures (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid, net of amounts capitalized | $ 3,500 | $ 3,200 |
Income taxes paid | $ 660 | $ 65 |
Timberland Acquisition (Details
Timberland Acquisition (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)aProperty | |
Business Acquisition [Line Items] | |
Funds held by like-kind exchange intermediaries | $ 598 |
Productive Land | |
Business Acquisition [Line Items] | |
Transfer of non-strategic timberland to seller, in acres | a | 365 |
Transfer of non-strategic timberland to seller, value | $ 214 |
Western Washington | |
Business Acquisition [Line Items] | |
Number of acquisitions | Property | 6 |
Acres of land acquired | a | 1,342 |
Assets acquired | $ 7,200 |
Western Washington | Land | |
Business Acquisition [Line Items] | |
Assets acquired | 869 |
Western Washington | Timber and roads | |
Business Acquisition [Line Items] | |
Assets acquired | $ 6,300 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - Fixed-Rate Debt - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt outstanding carrying value | $ 101.5 | $ 101.5 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt outstanding fair value | $ 101.1 | $ 104.6 |
Commitments and Contingencies_2
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||||||
Accrual for estimated environmental remediation costs | $ 6,734 | $ 6,994 | $ 4,760 | $ 6,734 | $ 4,979 | $ 12,770 | $ 16,761 |
Remediation activity monitoring period | 15 years | ||||||
Increase in accrual for estimated environmental remediation costs | 0 | $ 2,900 | $ 0 | $ 0 | $ 7,700 | ||
Environmental liability, next 12 months | 2,100 | $ 2,100 | |||||
Environmental liability thereafter | $ 4,600 | $ 4,600 |
Commitments and Contingencies_3
Commitments and Contingencies (Changes in Environmental Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||||
Balance at Beginning of the Period | $ 6,994 | $ 4,760 | $ 4,979 | $ 12,770 | $ 16,761 |
Additions to Accrual | 0 | 2,900 | 0 | 0 | 7,700 |
Expenditures for Remediation | (260) | (666) | (219) | (7,791) | (11,691) |
Balance at Period-end | $ 6,734 | $ 6,994 | $ 4,760 | $ 4,979 | $ 12,770 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | 1 Months Ended |
Oct. 31, 2018USD ($)increaseloan_segment | |
Credit Agreement | |
Subsequent Event [Line Items] | |
Accordion feature to increase borrowing capacity | $ 50,000,000 |
Minimum increase in borrowing capacity | $ 15,000,000 |
Maximum number of increases | increase | 3 |
Interest coverage ratio covenant | 300.00% |
Maximum debt-to-capitalization coverage ratio covenant | 30.00% |
Maximum debt-to-appraised value of collateral covenant | 50.00% |
Credit Agreement Due September 2019 | |
Subsequent Event [Line Items] | |
Fixed-rate loan segments | $ 9,800,000 |
Fixed interest rate | 6.40% |
Credit Agreement Due October 2024 | |
Subsequent Event [Line Items] | |
Fixed-rate loan segments | $ 6,000,000 |
Credit Agreement Due October 2024 | London Interbank Offered Rate (LIBOR) | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 1.60% |
Credit Agreement Due July 2025 | |
Subsequent Event [Line Items] | |
Fixed-rate loan segments | $ 10,000,000 |
Fixed interest rate | 6.05% |
Credit Agreement Due July 2026 | |
Subsequent Event [Line Items] | |
Fixed-rate loan segments | $ 11,000,000 |
Fixed interest rate | 3.89% |
Credit Agreement Due July 2028 | |
Subsequent Event [Line Items] | |
Fixed-rate loan segments | $ 11,000,000 |
Fixed interest rate | 4.13% |
Credit Agreement Due October 2034 | |
Subsequent Event [Line Items] | |
Fixed-rate loan segments | $ 8,000,000 |
Fixed interest rate | 5.34% |
Credit Agreement Due October 2035 | |
Subsequent Event [Line Items] | |
Fixed-rate loan segments | $ 8,000,000 |
Fixed interest rate | 5.34% |
Credit Agreement Due October 2036 | |
Subsequent Event [Line Items] | |
Fixed-rate loan segments | $ 8,000,000 |
Fixed interest rate | 5.42% |
Revolving Credit Facility | Credit Agreement | |
Subsequent Event [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 30,000,000 |
Line of credit outstanding | $ 15,700,000 |
Revolving Credit Facility | Credit Agreement | London Interbank Offered Rate (LIBOR) | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 1.60% |
Delayed-Draw Facility | Credit Agreement | |
Subsequent Event [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 40,000,000 |
Debt drawn | 4,000,000 |
Fixed-rate loan segment, minimum | $ 5,000,000 |
Maximum number of fixed rate loan segments outstanding | loan_segment | 5 |
Delayed-Draw Facility | Credit Agreement | London Interbank Offered Rate (LIBOR) | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 1.60% |
Facility | Credit Agreement | |
Subsequent Event [Line Items] | |
Line of credit facility, maximum borrowing capacity | $ 71,800,000 |
Minimum | Delayed-Draw Facility | Credit Agreement | |
Subsequent Event [Line Items] | |
Debt term | 1 year |
Maximum | Delayed-Draw Facility | Credit Agreement | |
Subsequent Event [Line Items] | |
Debt term | 10 years |
Maturities up to five years | Credit Agreement | |
Subsequent Event [Line Items] | |
Maximum interest margin | 2.20% |
Maturities up to five years | Fixed Rate Loan Segment | Lender's Rate Pricing Index | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 1.60% |
Maturities up to five years | Delayed-Draw Facility | Credit Agreement | Lender's Rate Pricing Index | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 1.60% |
Maturities greater than five years | Credit Agreement | |
Subsequent Event [Line Items] | |
Maximum interest margin | 2.25% |
Maturities greater than five years | Fixed Rate Loan Segment | Lender's Rate Pricing Index | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 1.65% |
Maturities greater than five years | Delayed-Draw Facility | Credit Agreement | Lender's Rate Pricing Index | |
Subsequent Event [Line Items] | |
Basis spread on variable rate | 1.65% |
Maturities between 1 and 10 years | Minimum | Variable Rate Loan Segment | |
Subsequent Event [Line Items] | |
Debt term | 1 year |
Maturities between 1 and 10 years | Maximum | Variable Rate Loan Segment | |
Subsequent Event [Line Items] | |
Debt term | 10 years |
Maturities at 12 years | Variable Rate Loan Segment | |
Subsequent Event [Line Items] | |
Debt term | 12 years |
Maturities at 15 years | Variable Rate Loan Segment | |
Subsequent Event [Line Items] | |
Debt term | 15 years |
Maturities at 18 years | Variable Rate Loan Segment | |
Subsequent Event [Line Items] | |
Debt term | 18 years |