Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | HOMEFED CORPORATION | |
Entity Central Index Key | 0000833795 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Accelerated Filer | |
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 Common Stock, Shares Outstanding (in shares) | 15,500,246 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Real estate held for development | $ 335,018 | $ 328,239 |
Real estate held for investment, net | 38,005 | 37,962 |
Cash and cash equivalents | 80,245 | 63,053 |
Contract assets | 5,460 | 11,084 |
Equity method investments | 94,927 | 93,170 |
Accounts receivable, deposits and other assets | 14,643 | 20,790 |
Intangible assets, net | 1,009 | 1,054 |
Net deferred tax asset | 40,370 | 38,656 |
TOTAL | 609,677 | 594,008 |
LIABILITIES | ||
Accounts payable and accrued liabilities | 40,956 | 38,674 |
Below market lease contract intangibles, net | 1,315 | 1,377 |
Non-refundable option payments | 85 | 85 |
Liability for environmental remediation | 1,450 | 1,452 |
Accrued interest payable | 108 | 72 |
Other liabilities | 5,450 | 4,617 |
Long-term debt, net | 105,287 | 88,773 |
Total liabilities | 154,651 | 135,050 |
COMMITMENTS AND CONTINGENCIES | ||
EQUITY | ||
Common stock, $.01 par value; 25,000,000 shares authorized; 15,500,246 shares outstanding after deducting 398,663 shares held in treasury | 155 | 155 |
Additional paid-in capital | 602,147 | 602,031 |
Accumulated deficit | (150,521) | (147,039) |
Total HomeFed Corporation common shareholders' equity | 451,781 | 455,147 |
Noncontrolling interest | 3,245 | 3,811 |
Total equity | 455,026 | 458,958 |
TOTAL | $ 609,677 | $ 594,008 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common shares, authorized (in shares) | 25,000,000 | 25,000,000 |
Common shares, shares outstanding (in shares) | 15,500,246 | 15,500,246 |
Treasury stock, shares (in shares) | 398,663 | 398,663 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
REVENUES | ||
Revenues from contracts with customers: | $ 25,861,000 | $ 45,634,000 |
Rental income | 2,640,000 | 5,889,000 |
Total revenues: | 28,501,000 | 51,523,000 |
EXPENSES | ||
Rental operating expenses | 1,073,000 | 4,208,000 |
General and administrative expenses | 7,216,000 | 5,185,000 |
Depreciation and amortization | 476,000 | 857,000 |
Administrative services fees to Jefferies Financial Group Inc. | 45,000 | 45,000 |
Total expenses | 29,002,000 | 37,636,000 |
Income (loss) from operations before losses from equity method investments | (501,000) | 13,887,000 |
Losses from equity method investments | (5,348,000) | (1,378,000) |
Income (loss) from operations | (5,849,000) | 12,509,000 |
Interest and other income | 426,000 | 108,000 |
Income (losses) before income taxes and noncontrolling interest | (5,423,000) | 12,617,000 |
Income tax benefit (provision) | 2,275,000 | (3,806,000) |
Net income (loss) | (3,148,000) | 8,811,000 |
Net income attributable to the noncontrolling interest | (334,000) | (19,000) |
Net income (loss) attributable to HomeFed Corporation common shareholders | $ (3,482,000) | $ 8,792,000 |
Basic and diluted earnings (losses) per common share attributable to HomeFed Corporation common shareholders | $ (0.22) | $ 0.57 |
Sales of real estate | ||
REVENUES | ||
Revenues from contracts with customers: | $ 25,792,000 | $ 33,998,000 |
EXPENSES | ||
Cost of sales | 20,138,000 | 15,835,000 |
Contract service revenues | ||
REVENUES | ||
Revenues from contracts with customers: | 54,000 | 11,506,000 |
EXPENSES | ||
Cost of sales | 54,000 | 11,506,000 |
Co-op marketing and advertising fees | ||
REVENUES | ||
Revenues from contracts with customers: | $ 15,000 | $ 130,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock $.01 Par Value | Additional Paid-In Capital | Accumulated Deficit | Subtotal | Noncontrolling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of the adoption of accounting standards | $ 1,228 | $ 1,228 | $ 1,228 | |||
Balance January 1, 2018, as adjusted | 458,598 | $ 155 | $ 600,308 | (146,971) | 453,492 | $ 5,106 |
Beginning Balance at Dec. 31, 2017 | 457,370 | 155 | 600,308 | (148,199) | 452,264 | 5,106 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 8,811 | 8,792 | 8,792 | 19 | ||
Share-based compensation expense | 535 | 535 | 535 | |||
Ending Balance at Mar. 31, 2018 | 467,944 | 155 | 600,843 | (138,179) | 462,819 | 5,125 |
Beginning Balance at Dec. 31, 2018 | 458,958 | 155 | 602,031 | (147,039) | 455,147 | 3,811 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (3,148) | (3,482) | (3,482) | 334 | ||
Distributions to noncontrolling interests | (900) | (900) | ||||
Share-based compensation expense | 116 | 116 | ||||
Ending Balance at Mar. 31, 2019 | $ 455,026 | $ 155 | $ 602,147 | $ (150,521) | $ 451,781 | $ 3,245 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (3,148) | $ 8,811 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | ||
Losses from equity method investments | 5,348 | 1,378 |
Provision (benefit) for deferred income taxes | (1,714) | 3,283 |
Share-based compensation expense | 116 | 800 |
Depreciation and amortization of property, equipment and leasehold improvements | 50 | 79 |
Gain on sale of Rampage property | 0 | (17,293) |
Other amortization | 376 | 1,102 |
Distributions from equity method investments | 1,155 | 701 |
Development costs in excess of Cost Cap | (6,790) | 0 |
Changes in operating assets and liabilities: | ||
Real estate, held for development | (3,779) | (9,466) |
Real estate, held for investment | (134) | (500) |
Contract assets/liabilities | 5,624 | (6,010) |
Accounts receivable, deposits and other assets | 2,431 | 3,950 |
Accounts payable and accrued liabilities | (1,762) | (845) |
Accrued interest payable | 36 | (1,248) |
Non-refundable option payments | 0 | 20 |
Liability for environmental remediation | (2) | 0 |
Income taxes payable | 3,518 | 348 |
Other liabilities | 833 | (622) |
Net cash provided by (used for) operating activities | 2,158 | (15,512) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sale of Rampage property | 0 | 26,000 |
Investments in equity method investments | (1,470) | (11) |
Capital distributions from equity method investments | 0 | 82,000 |
Net cash provided by (used for) investing activities | (1,470) | 107,989 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Issuance of long-term debt | 18,500 | 7,000 |
Payment of debt issuance costs | (1,096) | (13) |
Distributions to noncontrolling interests | (900) | 0 |
Net cash provided by financing activities | 16,504 | 6,987 |
Net increase in cash, cash equivalents and restricted cash | 17,192 | 99,464 |
Cash, cash equivalents and restricted cash, beginning of period | 63,053 | 43,100 |
Cash, cash equivalents and restricted cash, end of period | 80,245 | 142,564 |
Supplemental disclosures of cash flow information: | ||
Cash paid (refunded) for income taxes, net of tax refunds | (3,446) | 325 |
Cash paid for interest (net of amounts capitalized) | 0 | 0 |
Non-cash operating activities: | ||
Project development costs incurred that remain payable at end of period | 25,029 | 17,851 |
Cashless exercise of stock options to purchase common shares | 0 | 69 |
Debt issuance costs incurred but not paid yet | $ 1,772 | $ 0 |
Recent Developments
Recent Developments | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Recent Developments | Recent DevelopmentsAs previously disclosed, on April 12, 2019, HomeFed Corporation, a Delaware corporation (“HomeFed”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Jefferies Financial Group Inc., a New York corporation (“Jefferies”). On May 2, 2019 we amended the Merger Agreement. Pursuant to the amended Merger Agreement, we will be merged with and into a subsidiary of Jefferies and our shareholders on the record date will cease being our shareholders and will receive two shares of Jefferies common stock for each one share of our common stock held. The transactions contemplated by the Merger Agreement were reviewed, approved and recommend to the HomeFed Board of Directors for approval by the special committee of independent directors appointed by the HomeFed Board of Directors who, in consultation with independent financial and legal advisors, are responsible for reviewing and evaluating Jefferies’ proposal and the terms of the Merger Agreement. Completion of the merger is subject to customary closing conditions, a number of which are not within our control, and it is possible that such conditions may prevent, delay or otherwise materially adversely affect the completion of the merger. These conditions include, among other things, approval by a majority of our stockholders (excluding Jefferies and its affiliates). Following the merger, shares of HomeFed Common Stock will no longer be quoted on the OTCQB Marketplace, there will be no public market for shares of HomeFed Common Stock, and registration of shares of HomeFed Common Stock under the Securities Exchange Act of 1934 will be terminated. If the merger is not completed for any reason, we will remain a public company. |
Accounting Developments
Accounting Developments | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Developments | Accounting Developments The unaudited interim consolidated financial statements, which reflect all adjustments (consisting of normal recurring items or items discussed herein) that management believes necessary to fairly state results of interim operations, should be read in conjunction with the Notes to Consolidated Financial Statements (including the Summary of Significant Accounting Policies) included in our audited consolidated financial statements for the year ended December 31, 2018, which are included in our Annual Report filed on Form 10-K for such year (the “2018 10-K”). Results of operations for interim periods are not necessarily indicative of annual results of operations. The consolidated balance sheet at December 31, 2018 was extracted from the audited annual consolidated financial statements and does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for annual financial statements. There is no other comprehensive income for the three months ended March 31, 2019 and 2018. During the three months ended March 31, 2019, other than the following, there were no significant updates made to the Company’s significant accounting policies. The accounting policy changes are attributable to the adoption of the Financial Accounting Standards Board (“FASB”) guidance on Revenue from Contracts with Customers (the "new revenue standard"). These revenue recognition policy updates are applied prospectively in our financial statements from January 1, 2018 forward using the modified retrospective approach. Reported financial information for the historical comparable period was not revised and continues to be reported under the accounting standards in effect during the historical periods. Accounting Developments - Adopted Accounting Standards Leases. In February 2016, the FASB issued new guidance that affects the accounting and disclosure requirements for leases. The FASB requires the recognition of all leases that are longer than one year onto the balance sheet, which will result in the recognition of a right of use asset and a corresponding lease liability. The guidance is effective for annual and interim periods beginning after December 15, 2018. We adopted the lease standard, including certain practical expedients, at the beginning of the first quarter of 2019 and recorded an adjustment of $1,930,000 for the right of use asset and an adjustment of $1,950,000 for the lease liability. The right of use asset is determined by calculating the present value of future payments due under the lease discounted using an incremental borrowing rate and further adjusted for prepaid rent and certain lease incentives that were outstanding upon adoption. The right of use asset is included in Accounts receivable, deposits and other assets on the Consolidated Balance Sheet. The lease liability of $1,950,000 is representative of the present value of future payments due under the lease, discounted using the incremental borrowing rate. The lease liability will be increased by accreted interest at the incremental borrowing rate and reduced by future payments made under the lease obligation. The lease liability is included in Other liabilities on the Consolidated Balance Sheet. The impact to to the consolidated statement of income and cash flows were not material. Revenue Recognition. In May 2014, the FASB issued new guidance that defines how companies report revenues from contracts with customers, and also requires enhanced disclosures. The core principle of this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In addition, the FASB issued guidance on gain or loss from the derecognition of nonfinancial assets which would include real estate. We have adopted both of the new standards as of January 1, 2018 using the modified retrospective approach and recorded cumulative earnings to our opening accumulated deficit of $1,250,000, which is net of taxes of $550,000. Accordingly, the new revenue standard is applied in our financial statements from January 1, 2018 forward and reported financial information for historical comparable periods is not revised and continues to be reported under the accounting standards in effect during those historical periods. Our implementation efforts included the identification of revenue streams within the scope of the guidance and the evaluation of certain revenue contracts. The impact of adoption is primarily related to real estate revenues that were deferred on open sales contracts as of December 31, 2017 under the previously existing accounting guidance, which would have been recognized in prior periods under the new revenue standard and costs to complete related to the previously deferred revenue that are not related to performance obligations under the contract with the customer but are costs associated with completion of real estate improvements that would have been expensed in prior periods under the new revenue standard. The impact of the adoption is also related to the timing of recognition of fee income. The new revenue guidance does not apply to revenue associated with leasing activities or interest income. The new revenue standard primarily impacts the following revenue recognition and presentation accounting policies: • Real estate sales revenues. Revenues from the sales of real estate are recognized at a point in time when the related transaction is completed. The majority of our real estate sales of land, lots, and homes transfer the goods and services to the customer ("buyer") at the close of escrow when title transfers to the buyer and the buyer has the benefit and control of the goods and services. If performance obligations under the contract with the customer related to a parcel of land, lot or home are not yet complete when title transfers to the buyer, revenue associated with the incomplete performance obligation is deferred until the performance obligation is completed. • Real estate sales revenues - variable. Revenues under real estate contracts with customers that are associated with price or profit participation were historically recognized as participation thresholds were met by the customer. Under the new revenue standard, revenue from these activities is recognized at a point in time when the related transaction is complete, performance obligations by us have been met, and only to the extent it is probable that a significant reversal in the estimated amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. • Real estate costs to complete. Costs to complete improvements related to sold real estate was not expensed until the work was complete under the previously existing guidance and revenue associated with the costs to complete was deferred until the work was complete under the percentage of completion method. Under the new revenue standard, costs to complete improvements that are associated with the sold real estate but do not transfer to the customer as performance obligations under the terms of the contract are estimated at the completion of the real estate transaction and expensed as a cost of the sale. • Co-op marketing and advertising fees. Co-op marketing fees were recognized at the time of sale of a home by our builder customer to a homebuyer under the previously existing accounting guidance. Under the new revenue standard, the co-op fees are recognized over time as performance obligations by us are met, generally the term of the master marketing program that relates to the sales period for the home product being sold by our builder customer. • Contract service revenues. Under our limited liability company agreements with our builder partners at the Village of Escaya project, we will earn overhead management fees and marketing fees based on a percentage of the retail sales prices under homebuyer contracts. We will also recognize contract service revenues over time as our performance obligations are met, generally the anticipated term of our oversight of the infrastructure improvements for the Village of Escaya. We also earn revenue from the initial land sale together with the performance obligation to complete improvements over time as the performance obligation is satisfied. Cash Flow Classifications. In August 2016, the FASB issued new guidance to reduce the diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 15, 2017. In November 2016, the FASB issued new guidance on restricted cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. We adopted this guidance in the first quarter of 2018. Accounting Developments- Accounting Standards to be Adopted in Future Periods Consolidation. In October 2018, the FASB issued new guidance which requires indirect interests held through related parties under common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. |
Intangibles, Net
Intangibles, Net | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangibles, Net As more fully discussed in the Annual Report on Form 10-K for the year ended December 31, 2014, intangible assets include above market leases and leases in place and intangible liabilities include below market leases which were recorded at fair value when we acquired substantially all of the real estate properties and operations of Leucadia National Corporation, now known as Jefferies Financial Group Inc. ("Jefferies"), the membership interests in Brooklyn Renaissance Plaza ("BRP Holding") and Brooklyn Renaissance Hotel LLC ("BRP Hotel") and cash in exchange for 7.5 million of our common shares (the "Acquisition") during 2014. A summary of intangible assets is as follows (in thousands): March 31, 2019 December 31, 2018 Amortization (in years) Above market lease contracts, net of accumulated amortization of $10,527 and $10,513 $ 347 $ 361 1 to 24 Lease in place value, net of accumulated amortization of $3,424 and $3,393 662 693 1 to 24 Intangible assets, net $ 1,009 $ 1,054 Below market lease contracts, net of accumulated amortization of $4,273 and $4,211 $ 1,315 $ 1,377 1 to 24 The amortization of above and below market lease contracts is recognized in Rental income. Above market lease values are amortized over the remaining terms of the underlying leases, and below market lease values are amortized over the initial terms plus the terms of any below market renewal options of the underlying leases. The amortization of lease in place intangible assets is reflected in Depreciation and amortization expenses and amortized over the life of the related lease. Amortization expense related to above market lease contracts recognized in Rental income was $10,000 and$500,000 for the three months ended March 31, 2019 and 2018, respectively. The estimated future amortization expense recognized in Rental income for the above market lease intangible assets is as follows: remainder of 2019 - $50,000; 2020 - $50,000; 2021 - $50,000; 2022 - $50,000; 2023 - $50,000 and thereafter - $150,000. Amortization expense on lease in place intangible assets was $50,000 and $150,000 for the three months ended March 31, 2019 and 2018, respectively. The estimated future amortization expense for the lease in place intangible asset for each of the next five years is as follows: remainder of 2019 - $50,000; 2020 - $100,000; 2021 - $100,000; 2022 - $100,000; 2023 - $50,000 and thereafter - $300,000. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments RedSky JZ Fulton Investors: On December 13, 2018, we formed a joint venture partnership with RedSky JZ Fulton Holdings, LLC, a Delaware limited liability company (“RS JZ”), for the acquisition and possible redevelopment of a development site located on the Fulton Mall corridor in Downtown Brooklyn, New York. The property consists of 15 separate tax lots, divided into two premier development sites which may be redeveloped with buildings consisting of up to 540,000 square feet of floor area development rights. RS JZ is itself a joint venture consisting of RedSky Capital, LLC (“RedSky”), a Brooklyn-based real estate developer, and JZ Capital Partners Limited (“JZ”), a London-based investment company. Pursuant to that certain Contribution Agreement, dated as of December 10, 2018 (the "Contribution Agreement"), among RS JZ, HF Fulton Street Holdings LLC (“HF Fulton”), a wholly-owned subsidiary of HomeFed, and RedSky JZ Fulton Investors, LLC, a Delaware limited liability company (the “Joint Venture”), HomeFed contributed initial capital in the amount of $52,500,000 and an additional $1,450,000 of capital in January 2019 to the Joint Venture. As consideration for the capital contribution, RS JZ caused the Joint Venture to issue to HF Fulton a membership interest in the Joint Venture consisting of 49% of the total membership interests in the Joint Venture. RS JZ holds the remaining 51% membership stake in the Joint Venture. The Contribution Agreement includes customary representations and warranties by RS JZ in favor of HF Fulton as to the state of title and other matters affecting title to the Real Property, and as to the assets and liabilities of the Joint Venture. The Contribution Agreement also includes customary representations and warranties as to the assets and liabilities of the two wholly-owned subsidiaries of the Joint Venture which own fee title to the Real Property. At the December 10, 2018 closing under the Contribution Agreement, RS JZ and HF Fulton executed and delivered to each other a Sixth Amended and Restated Limited Liability Company Agreement of the Joint Venture (the “Operating Agreement”). RedSky Fulton Tier II LLC (“Manager”), an affiliate of RedSky, is also a party to the Operating Agreement, in its capacity as the “Manager” of the Joint Venture. Pursuant to the Operating Agreement, Manager is responsible for the day to day management of the Joint Venture. However, neither Manager nor the Joint Venture may undertake, without the consent of the Joint Venture’s “Executive Committee”, any decision designated as a “Major Decision” by the Operating Agreement. “Major Decisions” include, without limitation, the acquisition of additional real property, adoption of a business plan by the Joint Venture, the adoption of operating and construction budgets, decisions to call for additional capital contributions, decisions to redevelop the Real Property with new buildings and improvements, decisions to sell or finance the Real Property and decisions to enter into space leases with third-party tenants. The Executive Committee of the Joint Venture is comprised of three representatives, one appointed by RedSky, a second appointed by JZ and a third appointed by HomeFed. RedSky JZ Fulton Investors is considered a variable interest entity ("VIE"). We have determined that we are not the primary beneficiary of RedSky JZ Fulton Investors because our economic interest is 49%, the assets are managed by RedSky, and major decisions are decided by an executive committee of which we share joint control. Therefore, we do not consolidate RedSky JZ Fulton Investor and we account for our equity interest under the equity method of accounting as of December 31, 2018. Our maximum exposure to loss as a result of our involvement with RedSky JZ Fulton Investors is limited to our capital contribution of $53,950,000. Otay project: In January 2017, we recorded the final map that subdivided the approximately 450-acre parcel of land in the Otay Ranch General Plan Area of Chula Vista, California, which is now known as the Village of Escaya. We formed three limited liability companies (each a “Builder LLC”) to own and develop 948 homes within Escaya and entered into individual operating agreements with each of the three builders as members of each Builder LLC. On January 5, 2017, we made an aggregate capital contribution valued at $20,000,000 of unimproved land and $13,200,000 of completed infrastructure improvements to the three Builder LLCs, representing land and completed improvement value at inception of the Builder LLCs. The builders made a cash contribution of $20,000,000 and $2,250,000 of capitalizable land improvements in January 2017 upon final map subdivision and entry into their respective Builder LLCs, which was used to fund infrastructure costs completed by us. Although each of the three Builder LLCs is considered a variable interest entity, we do not consolidate any of them since we are not deemed to be the primary beneficiary as we share joint control with each Builder LLC through a management committee and we lack authority over establishing home sales prices and accepting offers. Our maximum exposure to loss is limited to our equity commitment in each Builder LLC. Additionally, we are responsible for the remaining cost of developing the community infrastructure with funding guaranteed by us under the respective operating agreements for which we received a capital credit of $78,600,000 ("Cost Cap"), and we are responsible for any costs in excess of this limit to complete the community infrastructure. As of March 31, 2019, the cost of infrastructure improvements in the Village of Escaya that is attributable to the Builder LLCs exceeded the Cost Cap by $16,550,000 ($6,800,000 occurred during the first quarter of 2019), and we expect to incur additional costs until we complete our infrastructure obligations. The builders are responsible for the construction and the selling of the 948 homes with funding guaranteed by their respective parent entities. We are contractually obligated to obtain infrastructure improvement bonds on behalf of each Builder LLC. See Note 15 for more information. Brooklyn Renaissance Plaza and Hotel: We own a 61.25% membership interest in BRP Holding. Although we have a majority interest, we concluded that we do not have control but only have the ability to exercise significant influence on this investment. As such, we account for BRP Holding under the equity method of accounting. We also own a 25.8% membership interest in BRP Hotel, which we account for under the equity method of accounting. Summarized financial information: Under the equity method of accounting, our share of the investee’s underlying net income or loss is recorded as income (loss) from equity method investments. The recognition of our share of the investees’ results takes into account any special rights or priorities of investors and book basis differences; accordingly, we employ the hypothetical liquidation at book value model to calculate our share of the investees’ profits or losses. At March 31, 2019 and December 31, 2018, our equity method investments are comprised of the following (in thousands): March 31, 2019 December 31, 2018 RedSky JZ Fulton Investors $ 53,943 $ 52,522 BRP Holding 9,636 8,136 BRP Hotel 16,762 17,963 Builder LLCs 14,586 14,549 Total $ 94,927 $ 93,170 On February 28, 2018, BRP Holding satisfied, in full, the $8,750,000 principal balance of a portion of the self-amortizing New York City Industrial Revenue Bonds, with the proceeds of a new $198,350,000 fully amortizing 21-year structured lease-back financing. Approximately $157,250,000 of the proceeds was distributed to members of which we received $82,000,000 as a BRP Holding distribution that was used, in part, to fully satisfy our outstanding preferred equity balances for BRP Holding and BRP Hotel, and $6,000,000 for the satisfaction of a receivable under the pooling agreement with BRP Leasing. Income (losses) from equity method investments includes the following for the three months ended March 31, 2019 and 2018 (in thousands): 2019 2018 RedSky JZ Fulton Investors $ (49) $ — BRP Holding 1,500 (7,721) BRP Hotel (1,202) 3,632 Builder LLCs (1) (5,597) 2,711 Total $ (5,348) $ (1,378) (1) As of March 31, 2019, we exceeded the reimbursement limit related to infrastructure costs of $78,600,000 with the Builder LLCs by $16,550,000 ($6,800,000 occurred during the first quarter of 2019) for which we don't receive an incremental claim to additional capital of the Builder LLCs. We initially exceeded the reimbursement limit in the third quarter of 2018, and therefore, the cost overruns are adversely affecting our share of the profit from the Builder LLCs during the three month 2019 period. The following table provides summarized data with respect to our equity method investments as of March 31, 2019 and 2018 and for the three months ended March 31, 2019 and 2018 (in thousands): 2019 2018 Assets $ 606,897 $ 429,087 Liabilities 496,594 366,573 For the three months ended March 31, 2019 2018 Total revenues $ 54,036 $ 62,736 Income from continuing operations before extraordinary items 2,699 6,376 Net income 2,699 6,376 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Lessee activity: We have entered into an operating lease for our corporate headquarters in Carlsbad, California. Our lease has a remaining term of approximately six five Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of minimum lease payments over the lease term. We determine the present value of payments under a lease based on our incremental borrowing rate as of the lease commencement date. The incremental borrowing rate is equal to the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment. Our incremental borrowing rate of 4.26% is a quoted rate from a banking institution and is representative of a rate of lending under similar terms as those outlined in the lease including term, type of asset, and total commitment. For operating leases that commenced prior to our adoption of the new lease guidance, we measured the lease liabilities and right-of-use assets using our incremental borrowing rate as of January 1, 2019. As of March 31, 2019, we have a right of use asset of $1,850,000 and we have an operating lease liability of $1,950,000 consisting of operating lease liabilities of $1,910,000 and accounts payable and accrued expenses of $40,000. The right of use asset is included in Accounts receivable, deposits and other assets on the Consolidated Balance Sheet, and the lease liability is included in Other liabilities on the Consolidated Balance Sheet. The maturity of our operating lease as of March 31, 2019 is as follows (in thousands): Remainder of 2019 $ 230 2020 356 2021 366 2022 371 2023 388 Thereafter 469 Total lease payments $ 2,180 Less: imputed interest (270) Present value of lease liabilites $ 1,910 Our operating lease expense for the three months ended March 31, 2019 was $90,000. Lessor activity: We lease office, retail and residential space to customers related to our real estate held for investment primarily at The Market Common. All of our leases are accounted as operating leases. Lessor accounting for operating leases has remained substantially the same compared to the prior standard. However, leasing costs that were previously eligible for capitalization such as initial direct costs are immediately expensed under the new guidance. |
Leases | Leases Lessee activity: We have entered into an operating lease for our corporate headquarters in Carlsbad, California. Our lease has a remaining term of approximately six five Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the present value of minimum lease payments over the lease term. We determine the present value of payments under a lease based on our incremental borrowing rate as of the lease commencement date. The incremental borrowing rate is equal to the rate of interest that we would have to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment. Our incremental borrowing rate of 4.26% is a quoted rate from a banking institution and is representative of a rate of lending under similar terms as those outlined in the lease including term, type of asset, and total commitment. For operating leases that commenced prior to our adoption of the new lease guidance, we measured the lease liabilities and right-of-use assets using our incremental borrowing rate as of January 1, 2019. As of March 31, 2019, we have a right of use asset of $1,850,000 and we have an operating lease liability of $1,950,000 consisting of operating lease liabilities of $1,910,000 and accounts payable and accrued expenses of $40,000. The right of use asset is included in Accounts receivable, deposits and other assets on the Consolidated Balance Sheet, and the lease liability is included in Other liabilities on the Consolidated Balance Sheet. The maturity of our operating lease as of March 31, 2019 is as follows (in thousands): Remainder of 2019 $ 230 2020 356 2021 366 2022 371 2023 388 Thereafter 469 Total lease payments $ 2,180 Less: imputed interest (270) Present value of lease liabilites $ 1,910 Our operating lease expense for the three months ended March 31, 2019 was $90,000. Lessor activity: We lease office, retail and residential space to customers related to our real estate held for investment primarily at The Market Common. All of our leases are accounted as operating leases. Lessor accounting for operating leases has remained substantially the same compared to the prior standard. However, leasing costs that were previously eligible for capitalization such as initial direct costs are immediately expensed under the new guidance. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Construction loans: In March 2018, we entered into construction loan agreements for $58,850,000, the proceeds of which will be used for the construction of the town center portion of the Village of Escaya known as The Residences and Shops at Village of Escaya, which is comprised of 272 apartments, approximately 20,000 square feet of retail space, and a 10,000 square foot community facility building. The outstanding principal amount of the loan will bear interest at 30-day LIBOR plus 3.15%, subject to adjustment on the first of each calendar month, and the loan is collateralized by the property underlying the related project with a guarantee by us. Monthly draws are permitted under the loan agreement once evidence of our investment into the project reaches $35,000,000, including land value. As of April 26, 2019, no amounts have been drawn under the loan. The loan matures on March 1, 2021 with one 12-month extension subject to certain extension conditions as set forth in the loan agreements. EB-5 Program: We intend to fund our Otay Land project in part by raising funds under the Immigrant Investor Program administered by the U.S. Citizenship and Immigration Services ("USCIS") pursuant to the Immigration and Nationality Act ("EB-5 Program"). This program was created to stimulate the U.S. economy through the creation of jobs and capital investments in U.S. companies by foreign investors. The program allocates a limited number of immigrant visas per year to qualified individuals seeking lawful permanent resident status on the basis of their investment in a U.S. commercial enterprise. Regional centers are organizations, either publicly owned by cities, states or regional development agencies or privately owned, which facilitate investment in job-creating economic development projects by pooling capital raised under the EB-5 Program. Geographic areas within regional centers that are rural areas or areas experiencing unemployment numbers higher than the national unemployment average rates are designated as Targeted Employment Areas (“TEA”). The EB-5 program is set to expire on September 30, 2019. Various reforms and bills have been proposed and are expected to be considered by Congress in 2019. EB-5 Program - The Village of Escaya: In February 2017, we formed Otay Village III Lender, LLC, which is intended to serve as a new commercial enterprise (“NCE”) under the EB-5 Program. The NCE is managed by Otay Village III Manager, LLC, a wholly owned subsidiary of HomeFed. The NCE raised $125,000,000 by offering 250 units to qualified accredited EB-5 investors for a subscription price of $500,000 per unit, which is the minimum investment that an investor in a TEA project is required to make pursuant to EB-5 Program rules. The proceeds of the offering will be used to repay any outstanding bridge loan provided by HomeFed to its wholly owned subsidiary HomeFed Village III LLC, a job creating entity under the EB-5 Program, and to fund infrastructure costs related to the development of the Village of Escaya. EB-5 Program - The Village 8 West (Cota Vera): In July 2018, we formed Otay Village 8 Lender, LLC, which is intended to serve as a NCE under the EB-5 Program. The NCE is managed by Otay Village 8 Manager, LLC, a wholly owned subsidiary of HomeFed. The NCE is seeking to raise up to $134,000,000 by offering up to 268 units in the NCE to qualified accredited EB-5 investors for a subscription price of $500,000 per unit. The proceeds from the offering will be used to repay any outstanding bridge loan provided by HomeFed to its wholly owned subsidiary HomeFed Village 8, LLC, a job creating entity under the EB-5 Program, and to fund infrastructure costs related to the development of Cota Vera. Each NCE has offered the units to investors primarily located in China, Vietnam, South Korea and India either directly or through relationships with agents qualified in their respective countries, in which case the NCE will pay an agent fee. Once an investor’s subscription and funds are accepted by the NCE, the investor must file an I-526 petition with the USCIS seeking approval of the investment’s suitability under the EB-5 Program requirements and the investor’s suitability and source of funds. All investments are held in an escrow account and will not be released until the investor files their I-526 petition with the USCIS and we have identified and provided collateral to secure the amount of the funds drawn from escrow. Prior to approval by the USCIS, funds may be drawn from the escrow account with a HomeFed guarantee that funds will be returned in the event the EB-5 projects are not approved. In December 2017, the Village of Escaya project was approved by the USCIS. The Cota Vera project has been submitted for approval by the USCIS. Each loan term is 5 years with two one-year options to extend by us with principal due in full at maturity. The effective interest rate is approximately 3.5%, payable as certain milestones are achieved according to various agreements with agents and investors. At March 31, 2019, we have a $123,500,000 principal amount outstanding under the Village of Escaya EB-5 Program. There are no amounts outstanding under the Cota Vera EB-5 Program. At March 31, 2019, we are in compliance with all debt covenants which include, among other requirements, limitations on incurrence of debt, collateral requirements and restricted use of proceeds. Real estate held for development includes capitalized interest, including amortization of issuance costs and debt discount, of $950,000 and $1,800,000 for the three months ended March 31, 2019 and 2018, respectively. Debt is presented on the Balance Sheet net of issuance costs of $18,200,000 and $16,200,000 at March 31, 2019 and December 31, 2018, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the first quarter of 2019, we recorded a $400,000 benefit as a result of the expiration of certain state and local statutes of limitation. The aggregate amount of gross unrecognized tax benefits related to uncertain tax positions at March 31, 2019 was $450,000 (including $100,000 for interest). If recognized, such amounts would lower our effective tax rate. We recognize interest and penalties, if any, related to unrecognized tax benefits in income tax expense. No material penalties were accrued for the three months ended March 31, 2019 and 2018. The statute of limitations with respect to the Company’s federal income tax returns has expired for all years through 2014, and with respect to California state income tax returns through 2013. We are currently under examination by the City of New York for the year ended 2014. We do not expect that resolution of this examination will have a significant effect on our consolidated financial position, but it could have a significant impact on the consolidated results of operations for the period in which resolution occurs. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings (Loss) Per Common Share Basic and diluted earnings (loss) per share amounts were calculated by dividing net income (loss) by the weighted average number of common shares outstanding. The numerators and denominators used to calculate basic and diluted earnings per share for the three months ended March 31, 2019 and 2018 are as follows (in thousands): 2019 2018 Numerator – net income (loss) attributable to HomeFed Corporation common shareholders $ (3,482) $ 8,792 Denominator for basic earnings per share– weighted average shares 15,500 15,474 Restricted stock units — 23 Stock options — 3 Denominator for diluted earnings per share– weighted average shares 15,500 15,500 |
Fair Value Information
Fair Value Information | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Information | Fair Value Information The carrying amounts and estimated fair values of our principal financial instruments that are not recognized on a recurring basis are as follows (in thousands): March 31, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Financial Liabilities: Long-term debt: EB-5 (a) $105,287 $123,500 $88,773 $105,000 (a) The fair value approximates the principal amount of the EB-5 debt utilizing available market data inputs that are considered level 3 inputs. The difference between carrying amount and fair value is capitalizable debt issuance costs. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Builder LLCs: Two of our executive officers are members of the four-member management committee at each Builder LLC and are designated to consider major decisions for each of the three Builder LLCs. Each Builder LLC appointed two members to the management committee, which is controlled jointly by us and the respective builder. HomeFed is contractually obligated to obtain infrastructure improvement bonds on behalf of the Builder LLCs. See Note 15 for more information. HomeFed may also be responsible for the funding of the real estate improvement costs for the infrastructure of the development if our subsidiary that invested in each Builder LLC fails to do so. Brooklyn Renaissance Plaza: As more fully discussed in the 2018 10-K, BRP Leasing held a master lease at BRP Holding and subleased the office space to multiple tenants. BRP Leasing was obligated to pay future minimum annual rental expense (exclusive of month-to-month leases, real estate taxes, maintenance and certain other charges). The obligations under the master lease ended October 2018, and leasing activities are now directly managed and handled by BRP Holding. Beginning in November 2018, we recognize income from this office space through BRP Holding under the equity method of accounting. Jefferies: Pursuant to an administrative services agreement, Jefferies provides us certain administrative and accounting services, including providing the services of our Secretary. Administrative services fee expenses were $45,000 for each of the three months ended March 31, 2019 and 2018, respectively. The administrative services agreement automatically renews for successive annual periods unless terminated in accordance with its terms. We sublease office space to Jefferies under a sublease agreement through January 2025. Amounts reflected in other income pursuant to this agreement were $4,000 and $3,000, respectively, for the three months ended March 31, 2019 and 2018. Jefferies is contractually obligated to obtain infrastructure improvement bonds on behalf of the San Elijo Hills project. See Note 15 for more information. Berkadia: Berkadia Commercial Mortgage LLC ("Berkadia") is a commercial mortgage banking and servicing joint venture formed in 2009 with Jefferies and Berkshire Hathaway Inc. During the first quarter of 2018, Berkadia was paid a brokerage advisory fee of $100,000 related to the new construction loan for Village of Escaya and a $400,000 advisory fee related to the refinance of a loan at BRP Holding. Both transactions were approved by the Audit Committee under the Related Party Transaction Policy. Patrick Bienvenue: During 2016, we entered into a consulting agreement between us and Patrick Bienvenue, one of our directors, to consult on various projects, primarily SweetBay. The agreement was approved by the Audit Committee pursuant to the Related Party Transaction Policy. During the three month periods ended March 31, 2019 and 2018, we paid Patrick Bienvenue $50,000, and $20,000, respectively, for his services and travel expenses under this agreement. |
Revenues from Contracts with Cu
Revenues from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenues from Contracts with Customers The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues (in thousands): 2019 2018 Revenues from contracts with customers: Sales of real estate $ 25,792 $ 33,998 Contract service revenues 54 11,506 Co-op marketing and advertising fees 15 130 Total revenues from contracts with customers 25,861 45,634 Other revenues: Rental income 2,640 5,889 Total revenue from other sources 2,640 5,889 Total revenues $ 28,501 $ 51,523 Since January 1, 2018, Revenue from contracts with customers is recognized when, or as, we satisfy our performance obligations by transferring the promised goods or services to the customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring our progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that we determine the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those promised goods or services (the “transaction price”). In determining the transaction price, we consider multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, we consider the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as market volatility or the judgment and actions of third parties. Revenues generated through the sales of real estate are our primary source of revenues from contracts with customers. Agreements with customers for these sales typically consist of the type and quantity of real estate to be sold and delivered to the customer, the transaction price for the real estate to be delivered, the closing date when the customer takes control of the real estate, deposit and final payment terms related to the real estate transaction price, performance obligations related to improvements, if any, that will be completed by us, the consideration of any price or profit participation revenue related to the contract, and fee income related to marketing and advertising services. The transaction price associated with the real estate is generally fixed and revenue is recognized at a point in time when the customer takes control of the real estate. The transaction price related to profit or price participation is a variable component of the transaction price and is recognized at the time the customer takes control of the real estate if it can be reasonably estimated and it is probable that a significant reversal in the amount of revenue recognized will not occur. Under our limited liability company agreements with builders at the Village of Escaya project, we earn contract service revenues based on a percentage of the retail home price of the homes sold by the builders to homebuyers. We record the contract service revenues over time as performance obligations are met, generally our obligation of completing the improvements and providing management oversight related to the completion of the infrastructure improvements for Village of Escaya. Co-op marketing and advertising fee income is calculated based on a percentage of the retail home price for the homes sold by our customers to homebuyers. We record co-op marketing and advertising fee income over time as performance obligations are met, generally the term of the master marketing program that relates to the sales period of the home product being sold by our customer. Revenue from contracts with customers is recognized when, or as, we satisfy our performance obligations by transferring the promised goods or services to the customers. A good or service is transferred to a customer when, or as, the customer obtains control of that good or service. A performance obligation may be satisfied over time or at a point in time. Revenue from a performance obligation satisfied over time is recognized by measuring our progress in satisfying the performance obligation in a manner that depicts the transfer of the goods or services to the customer. Revenue from a performance obligation satisfied at a point in time is recognized at the point in time that we determine the customer obtains control over the promised good or service. The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for those promised goods or services (the “transaction price”). In determining the transaction price, we consider multiple factors, including the effects of variable consideration. Variable consideration is included in the transaction price only to the extent it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. In determining when to include variable consideration in the transaction price, we consider the range of possible outcomes, the predictive value of our past experiences, the time period of when uncertainties expect to be resolved and the amount of consideration that is susceptible to factors outside of our influence, such as market volatility or the judgment and actions of third parties. Disaggregation of Revenue The following presents our revenues from contracts with customers disaggregated by project for the three months ended March 31, 2019 and 2018 (in thousands): Real Estate Segment Otay San Elijo Ashville Park The Market Common SweetBay Rampage BRP Leasing Pacho Total Real Estate Segment Total Corporate Segment Total Three month 2019 period Revenues from contracts with customers: Sales of real estate $ — $ 17,527 $ — $ 275 $ 7,805 $ — $ — $ — $ 25,607 $ — $ 25,607 Profit participation from real estate sales — — — 185 — — — — 185 — 185 Contract service revenues 54 — — — — — — — 54 — 54 Co-op marketing and advertising fees — — 15 — — — — — 15 — 15 Total revenues from contracts with customers 54 17,527 15 460 7,805 — — — 25,861 — 25,861 Other revenues: Rental income — — — 2,535 94 — — 7 2,636 4 2,640 Total revenue from other sources: — — — 2,535 94 — — 7 2,636 4 2,640 Total revenues: $ 54 $ 17,527 $ 15 $ 2,995 $ 7,899 $ — $ — $ 7 $ 28,497 $ 4 $ 28,501 Three month 2018 period Revenues from contracts with customers: Sales of Real Estate $ — $ 4,804 $ — $ 250 $ 2,831 $ 26,000 $ — $ — $ 33,885 $ — $ 33,885 Profit participation from real estate sales — — — 113 — — — — 113 — 113 Contract service revenues 11,506 — — — — — — — 11,506 — 11,506 Co-op marketing and advertising fees — 100 30 — — — — — 130 — 130 Total revenues from contracts with customers 11,506 4,904 30 363 2,831 26,000 — — 45,634 — 45,634 Other revenues: Rental income — — — 2,531 67 — 3,281 7 5,886 3 5,889 Total revenue from other sources: — — — 2,531 67 — 3,281 7 5,886 3 5,889 Total revenues: $ 11,506 $ 4,904 $ 30 $ 2,894 $ 2,898 $ 26,000 $ 3,281 $ 7 $ 51,520 $ 3 $ 51,523 Information on Remaining Performance Obligations and Revenue Recognized from Past Performance We do not disclose information about remaining performance obligations pertaining to contracts that have an original expected duration of one year or less. During the three months ended March 31, 2019 and 2018, revenues related to performance obligations satisfied (or partially satisfied) in previous periods that were recognized were insignificant. Upon adoption of the new Revenue Recognition standard beginning on January 1, 2018, performance obligations not yet complete under a contract with the customer related to a parcel of land, lot or home when title transfers to the buyer are recorded as a contract liability (which is reflected in Other liabilities on the Consolidated Balance Sheet), and revenue associated with the incomplete performance obligation is deferred until the performance obligation is completed. For the three months ended March 31, 2019, the activity in the contract liability account is as follows (in thousands): 2019 Contract liability balance at January 1, $1,008 Performance obligations not yet complete on the date of sale — Performance obligations satisfied (54) Contract liability balance balance at March 31, $954 Contract Balances The timing of revenue recognition may differ from the timing of payment by customers. We record a receivable when revenue is recognized prior to payment and we have an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, we record deferred revenue until the performance obligations are satisfied. |
Interest and Other Income
Interest and Other Income | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income | Interest and Other IncomeOther income includes service income related to a utility bundling service agreement with the homeowners at the Ashville Park project. Income of $100,000 and $90,000, respectively, was recognized during the three months ended March 31, 2019 and 2018.Interest and other income includes interest income of $50,000 and $20,000 for the three months ended March 31, 2019 and 2018, respectively. |
Real Estate Sales Activity
Real Estate Sales Activity | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate Sales Activity [Abstract] | |
Real Estate Sales Activity | Real Estate Sales Activity Rampage property: In January 2018, we closed on the sale of the Rampage property for $26,000,000. The agreement was assigned to a qualified intermediary under an Exchange Agreement to facilitate a 1031 like-kind exchange for tax purposes. In July 2018, we completed the 1031 like-kind exchange and acquired $13,400,000 of replacement property, primarily consisting of improvements at the mixed-use apartment and retail project at the Village of Escaya, and the remaining proceeds of $12,600,000 is no longer restricted and can be used for any business operation. We recorded a gain on the sale of approximately $17,300,000 for the three months ended March 31, 2018. The sale of Rampage property did not meet the GAAP criteria to be classified as a discontinued operation. Otay Land project: The grand opening at the Village of Escaya occurred in June 2017. During the three months ended March 31, 2019 and 2018, 46 and 59 homes, respectively, were sold through our three limited liability companies, the Builder LLCs, which are joint ventures with three local homebuilders. We apply the equity method of accounting for the activity related to the Builder LLCs. In the fourth quarter of 2018, we entered into an agreement to sell the 10,000 square feet community facility building in the towncenter area of Village of Escaya for $1,900,000, which is expected to close in 2020 upon completion of the building. We have received a $60,000 option deposit, which is non-refundable if we fulfill our obligations under the agreement and will be applied to reduce the amount due from the buyer at closing. San Elijo Hills project: During June 2015, we entered into an agreement with a local San Diego based luxury homebuilder to construct and sell on our behalf, for a fee, up to 58 homes at the San Elijo Hills project. We received a $500,000 deposit during the third quarter of 2015 which is reflected in Other liabilities. This deposit is a builder performance deposit that will be fully refundable to the builder after the builder performs all of its requirements under the agreement. Sales began during the second quarter of 2017, and we sold 9 and 3 homes for $17,550,000 and $4,800,000 during the three months ended March 31, 2019 and 2018, respectively. As of April 26, 2019, we have entered into agreements to sell 10 single family homes at the San Elijo Hills project under this agreement for aggregate cash proceeds of $18,600,000, which are expected to close in the second and third quarters of 2019. Ashville Park project: There were no sales at the Ashville Park project during the three months ended March 31, 2019 and 2018. The entitlement effort to re-plan Villages C, D and E was impacted by a delay within the City of Virginia Beach. In 2014 and 2016, severe storm events caused regional flooding, and large portions of the City of Virginia Beach’s storm water management system did not perform as expected. In 2016, the City of Virginia Beach hired outside civil engineers to study the system and provide possible solutions. The study is now complete and reveals that significant improvements to the storm water management system within the City of Virginia Beach are needed. In August 2018, the City of Virginia Beach approved our plans for 116 homes in Village C. The approval provides that we dedicate approximately 25 acres of land, which we had planned for 44 homes and open space known as Village D, to the City of Virginia Beach to be used as part of the City storm water management solution. The Market Common: For the three months ended March 31, 2019 and 2018, we closed on sales of real estate at The Market Common as follows: 2019 2018 Number of units sold Revenue from contracts with customers Number of units sold Revenue from contracts with customers Single family lots — $ — 5 $ 250,000 Multi-family lots 9 275,000 — — Profit sharing agreements N/A 200,000 N/A 100,000 As of April 26, 2019, we have entered into an agreement to sell 45 single family lots for $2,250,000 and 109 multi-family lots for $3,000,000 at The Market Common to a homebuilder. A non-refundable option deposit of $25,000 was transferred from Jefferies to us as part of the Acquisition. SweetBay project: During May 2015, we signed an agreement with a local builder to construct and sell on our behalf, for a fee, up to 127 homes in Phase 1A, which was subsequently amended to add an additional 56 homes in Phase 1B and 69 homes in Phase 1C at the SweetBay project. We sold 23 and 8 single family homes for $7,800,000 and $2,850,000 for the three months ended March 31, 2019 and 2018, respectively. |
Real Estate Held for Developmen
Real Estate Held for Development | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate Acquisitions [Abstract] | |
Real Estate Held for Development | Real Estate Held for Development We previously reported that we may not develop the Pacho Property unless we are able to obtain fee title from Pacific Gas & Electric (“PG&E”) within a reasonable period of time. The original 99-year lease term to the Pacho Property expires in 2067. The lease includes an option to renew it for an additional 99-year term. We have made no progress in obtaining the fee title from PG&E. In August 2018, we notified PG&E that we formally exercised the option and that we intend to commence a declaratory relief proceeding to confirm our leasehold is valid until 2166 and is not rendered shorter by the provisions of California Civil Code section 718. In September 2018, PG&E responded and asserted for the first time that it contends California Civil Code section 717 ends the lease in 2019, which we are disputing. We concluded that our Pacho leasehold was impaired and recorded a $17,450,000 pre-tax charge (the entire carrying value of the leasehold) during 2018, of which $1,750,000 is attributable to the non-controlling interest. On February 1, 2019, we filed a Complaint for Declaratory Relief and Quiet Title in the San Francisco Superior Court against the lessor, Eureka Energy Company, asking for a determination that the initial term of the lease is valid and enforceable through December 26, 2067 and that the option to renew the lease for an additional 99 years is valid through December 26, 2166. The legal matter was subsequently moved from San Francisco Superior Court to San Luis Obispo County Superior Court. Eureka Energy Company is a wholly owned subsidiary of PG&E. The following day, PG&E filed for bankruptcy protection. Eureka Energy Company was not identified as a debtor in the PG&E bankruptcy. If we are unsuccessful in obtaining a favorable ruling on our claims for declaratory relief, then we believe that we will have recourse to pursue our unrecognized claims against the insurer of the leasehold title and the real estate counsel that represented us in our 2014 purchase of the leasehold interest. However, there is no assurance that we will be successful in these matters. On May 2, 2019, Eureka filed a general denial to the complaint along with a cross-complaint against us alleging causes of action for declaratory relief and quiet title, the same claims as asserted against Eureka by us. The gravamen of Eureka’s cross-complaint is that the subject lease is agricultural and therefore limited to a term of 51 years. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies In December 2017, we entered into an agreement with a San Diego-based contractor to build the towncenter portion of the Village of Escaya project, known as The Residences and Shops at Village of Escaya, which is comprised of 272 apartments and approximately 20,000 square feet of retail space. The construction commenced in January 2018 and is anticipated to be completed in two years. In the fourth quarter of 2018, the contract became non-cancellable without cause upon completion of the foundations for each of the buildings within the project. As of March 31, 2019, the estimated remaining cost to complete the contract is $40,950,000. In May 2018, our corporate office lease was amended to add 2,240 square feet of office space and extend the lease through February 28, 2025. For real estate development projects, we are generally required to obtain infrastructure improvement bonds at the beginning of construction work and warranty bonds upon completion of such improvements. These bonds are issued by surety companies to guarantee satisfactory completion of a project and provide funds primarily to a municipality in the event we are unable or unwilling to complete certain infrastructure improvements. As we develop the planned area and the municipality accepts the improvements, the bonds are released. Should the respective municipality or others draw on the bonds for any reason, certain of our subsidiaries would be obligated to pay. Specifically for the San Elijo Hills project, Jefferies is contractually obligated to obtain these bonds on behalf of the project pursuant to the terms of agreements entered into when the project was acquired by us. We are responsible for paying all third party fees related to obtaining the bonds. As of March 31, 2019, the amount of outstanding bonds for each project is as follows: Amount of outstanding bonds Otay Land project $ 50,400,000 San Elijo Hills project 650,000 Ashville Park project 600,000 The Market Common 100,000 We agreed to indemnify Jefferies for certain lease obligations of BRP Leasing that were assumed from a former subsidiary of Jefferies that was sold to a third party prior to the Acquisition. The former subsidiary of Jefferies remained the primary obligor under the lease obligations and Jefferies agreed to indemnify the third party buyer. Our obligations under the primary lease expired in October 2018 and BRP Leasing will no longer have any indemnity obligations. We are subject to litigation which arises in the course of our business. We do not believe that the ultimate resolution of any such matters will materially affect our consolidated financial position, our consolidated results of operations or liquidity. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation 1999 Stock Incentive Plan: On August 8, 2018, options to purchase an aggregate of 7,000 shares of Common Stock were granted to the members of the Board of Directors under our 1999 Stock Incentive Plan at an exercise price of $50.50 per share, the market price per share on the grant date. Options granted become exercisable in four equal installments starting one year from date of grant and must be exercised within five years from date of grant and will be expensed equally over the four year vesting period. As of March 31, 2019, 252,400 shares are available under the 1999 Stock Incentive Plan. 2017 RSU Plan: On August 4, 2017, the Board of Directors adopted an RSU Opportunity Plan (the “2017 RSU Plan”) under which 66,000 shares of Common Stock are authorized for issuance to our executive officers. The restricted stock units (“RSUs”) may be granted at the end of the performance period based on the degree to which performance criteria has been satisfied at the sole discretion of the Board of Directors. The performance period ends on December 31, 2019, and awards will be issued no later than April 1, 2020. 2014 RSU Plan: On August 13, 2014, the Board of Directors adopted an RSU Opportunity Plan (the "2014 RSU Plan”) under which 100,000 shares of Common Stock were authorized for issuance to our executive officers. Participants were eligible for RSU awards based on satisfaction of performance criteria established by the Board of Directors in 2014. The performance period under the 2014 RSU Plan ended on December 31, 2016. The Board of Directors evaluated the participants' performance against the performance criteria and awarded an aggregate of 75,000 RSUs to the participants on March 15, 2017. Fifty percent of the RSU award under the 2014 RSU Plan vested on December 31, 2017 and the remaining fifty percent vested on December 31, 2018. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We currently have two reportable segments—real estate and corporate. Real estate operations consist of a variety of residential land development projects and commercial properties and other unimproved land, all in various stages of development. Real estate also includes contract service revenues, contract service expenses and the equity method investments in BRP Holding, BRP Hotel, RedSky JZ Fulton Investors and the Builder LLCs in the Otay Land project. Corporate primarily consists of investment income and overhead expenses. Our farming segment, which we no longer report, consisted of the Rampage property which included an operating grape vineyard and an almond orchard under development which was sold in January 2018. Revenue from the sale of the Rampage property is included in our real estate segment. Certain information concerning our segments for the three months ended March 31, 2019 and 2018 is presented in the following table (dollars in thousands). 2019 2018 Revenues: Real estate $ 28,497 $ 51,520 Corporate 4 3 Total consolidated revenues $ 28,501 $ 51,523 Income (loss) from continuing operations before income taxes and noncontrolling interest: Real estate $ (1,500) $ 16,266 Corporate (3,923) (3,649) Total consolidated income (loss) from continuing operations before income taxes and noncontrolling interest $ (5,423) $ 12,617 Depreciation and amortization expenses: Real estate $ 459 $ 840 Corporate 17 17 Total consolidated depreciation and amortization expenses $ 476 $ 857 Identifiable assets employed: March 31, 2019 December 31, 2018 Real estate $ 546,125 $ 531,005 Corporate 63,552 63,003 Total consolidated assets $ 609,677 $ 594,008 |
Accounting Developments (Polici
Accounting Developments (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Developments - Adopted Accounting Standards and Accounting Standards to be Adopted in Future Periods | Accounting Developments - Adopted Accounting Standards Leases. In February 2016, the FASB issued new guidance that affects the accounting and disclosure requirements for leases. The FASB requires the recognition of all leases that are longer than one year onto the balance sheet, which will result in the recognition of a right of use asset and a corresponding lease liability. The guidance is effective for annual and interim periods beginning after December 15, 2018. We adopted the lease standard, including certain practical expedients, at the beginning of the first quarter of 2019 and recorded an adjustment of $1,930,000 for the right of use asset and an adjustment of $1,950,000 for the lease liability. The right of use asset is determined by calculating the present value of future payments due under the lease discounted using an incremental borrowing rate and further adjusted for prepaid rent and certain lease incentives that were outstanding upon adoption. The right of use asset is included in Accounts receivable, deposits and other assets on the Consolidated Balance Sheet. The lease liability of $1,950,000 is representative of the present value of future payments due under the lease, discounted using the incremental borrowing rate. The lease liability will be increased by accreted interest at the incremental borrowing rate and reduced by future payments made under the lease obligation. The lease liability is included in Other liabilities on the Consolidated Balance Sheet. The impact to to the consolidated statement of income and cash flows were not material. Revenue Recognition. In May 2014, the FASB issued new guidance that defines how companies report revenues from contracts with customers, and also requires enhanced disclosures. The core principle of this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In addition, the FASB issued guidance on gain or loss from the derecognition of nonfinancial assets which would include real estate. We have adopted both of the new standards as of January 1, 2018 using the modified retrospective approach and recorded cumulative earnings to our opening accumulated deficit of $1,250,000, which is net of taxes of $550,000. Accordingly, the new revenue standard is applied in our financial statements from January 1, 2018 forward and reported financial information for historical comparable periods is not revised and continues to be reported under the accounting standards in effect during those historical periods. Our implementation efforts included the identification of revenue streams within the scope of the guidance and the evaluation of certain revenue contracts. The impact of adoption is primarily related to real estate revenues that were deferred on open sales contracts as of December 31, 2017 under the previously existing accounting guidance, which would have been recognized in prior periods under the new revenue standard and costs to complete related to the previously deferred revenue that are not related to performance obligations under the contract with the customer but are costs associated with completion of real estate improvements that would have been expensed in prior periods under the new revenue standard. The impact of the adoption is also related to the timing of recognition of fee income. The new revenue guidance does not apply to revenue associated with leasing activities or interest income. The new revenue standard primarily impacts the following revenue recognition and presentation accounting policies: • Real estate sales revenues. Revenues from the sales of real estate are recognized at a point in time when the related transaction is completed. The majority of our real estate sales of land, lots, and homes transfer the goods and services to the customer ("buyer") at the close of escrow when title transfers to the buyer and the buyer has the benefit and control of the goods and services. If performance obligations under the contract with the customer related to a parcel of land, lot or home are not yet complete when title transfers to the buyer, revenue associated with the incomplete performance obligation is deferred until the performance obligation is completed. • Real estate sales revenues - variable. Revenues under real estate contracts with customers that are associated with price or profit participation were historically recognized as participation thresholds were met by the customer. Under the new revenue standard, revenue from these activities is recognized at a point in time when the related transaction is complete, performance obligations by us have been met, and only to the extent it is probable that a significant reversal in the estimated amount of cumulative revenue recognized will not occur when the uncertainties with respect to the amount are resolved. • Real estate costs to complete. Costs to complete improvements related to sold real estate was not expensed until the work was complete under the previously existing guidance and revenue associated with the costs to complete was deferred until the work was complete under the percentage of completion method. Under the new revenue standard, costs to complete improvements that are associated with the sold real estate but do not transfer to the customer as performance obligations under the terms of the contract are estimated at the completion of the real estate transaction and expensed as a cost of the sale. • Co-op marketing and advertising fees. Co-op marketing fees were recognized at the time of sale of a home by our builder customer to a homebuyer under the previously existing accounting guidance. Under the new revenue standard, the co-op fees are recognized over time as performance obligations by us are met, generally the term of the master marketing program that relates to the sales period for the home product being sold by our builder customer. • Contract service revenues. Under our limited liability company agreements with our builder partners at the Village of Escaya project, we will earn overhead management fees and marketing fees based on a percentage of the retail sales prices under homebuyer contracts. We will also recognize contract service revenues over time as our performance obligations are met, generally the anticipated term of our oversight of the infrastructure improvements for the Village of Escaya. We also earn revenue from the initial land sale together with the performance obligation to complete improvements over time as the performance obligation is satisfied. Cash Flow Classifications. In August 2016, the FASB issued new guidance to reduce the diversity in practice in how certain transactions are classified in the statement of cash flows. The guidance adds or clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 15, 2017. In November 2016, the FASB issued new guidance on restricted cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. We adopted this guidance in the first quarter of 2018. Accounting Developments- Accounting Standards to be Adopted in Future Periods Consolidation. In October 2018, the FASB issued new guidance which requires indirect interests held through related parties under common control arrangements be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The guidance is effective in the first quarter of fiscal 2021. We are currently evaluating the impact of the new guidance on our consolidated financial statements. |
Intangibles, Net (Tables)
Intangibles, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | A summary of intangible assets is as follows (in thousands): March 31, 2019 December 31, 2018 Amortization (in years) Above market lease contracts, net of accumulated amortization of $10,527 and $10,513 $ 347 $ 361 1 to 24 Lease in place value, net of accumulated amortization of $3,424 and $3,393 662 693 1 to 24 Intangible assets, net $ 1,009 $ 1,054 Below market lease contracts, net of accumulated amortization of $4,273 and $4,211 $ 1,315 $ 1,377 1 to 24 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | At March 31, 2019 and December 31, 2018, our equity method investments are comprised of the following (in thousands): March 31, 2019 December 31, 2018 RedSky JZ Fulton Investors $ 53,943 $ 52,522 BRP Holding 9,636 8,136 BRP Hotel 16,762 17,963 Builder LLCs 14,586 14,549 Total $ 94,927 $ 93,170 |
Schedule of Income (Loss) Related to Equity Investment | Income (losses) from equity method investments includes the following for the three months ended March 31, 2019 and 2018 (in thousands): 2019 2018 RedSky JZ Fulton Investors $ (49) $ — BRP Holding 1,500 (7,721) BRP Hotel (1,202) 3,632 Builder LLCs (1) (5,597) 2,711 Total $ (5,348) $ (1,378) |
Schedule of Equity Method Investments Summarized Financial Information | The following table provides summarized data with respect to our equity method investments as of March 31, 2019 and 2018 and for the three months ended March 31, 2019 and 2018 (in thousands): 2019 2018 Assets $ 606,897 $ 429,087 Liabilities 496,594 366,573 For the three months ended March 31, 2019 2018 Total revenues $ 54,036 $ 62,736 Income from continuing operations before extraordinary items 2,699 6,376 Net income 2,699 6,376 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Maturity of Operating Lease | The maturity of our operating lease as of March 31, 2019 is as follows (in thousands): Remainder of 2019 $ 230 2020 356 2021 366 2022 371 2023 388 Thereafter 469 Total lease payments $ 2,180 Less: imputed interest (270) Present value of lease liabilites $ 1,910 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of numerator and denominator for loss per common share | Basic and diluted earnings (loss) per share amounts were calculated by dividing net income (loss) by the weighted average number of common shares outstanding. The numerators and denominators used to calculate basic and diluted earnings per share for the three months ended March 31, 2019 and 2018 are as follows (in thousands): 2019 2018 Numerator – net income (loss) attributable to HomeFed Corporation common shareholders $ (3,482) $ 8,792 Denominator for basic earnings per share– weighted average shares 15,500 15,474 Restricted stock units — 23 Stock options — 3 Denominator for diluted earnings per share– weighted average shares 15,500 15,500 |
Fair Value Information (Tables)
Fair Value Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amounts and estimated fair values | The carrying amounts and estimated fair values of our principal financial instruments that are not recognized on a recurring basis are as follows (in thousands): March 31, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value Financial Liabilities: Long-term debt: EB-5 (a) $105,287 $123,500 $88,773 $105,000 |
Revenues from Contracts with _2
Revenues from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |
Activity in contract liability account | For the three months ended March 31, 2019, the activity in the contract liability account is as follows (in thousands): 2019 Contract liability balance at January 1, $1,008 Performance obligations not yet complete on the date of sale — Performance obligations satisfied (54) Contract liability balance balance at March 31, $954 |
Total Segments | |
Disaggregation of Revenue [Line Items] | |
Separation and Disaggregation of Revenue | The following table presents our total revenues separated for our revenues from contracts with customers and our other sources of revenues (in thousands): 2019 2018 Revenues from contracts with customers: Sales of real estate $ 25,792 $ 33,998 Contract service revenues 54 11,506 Co-op marketing and advertising fees 15 130 Total revenues from contracts with customers 25,861 45,634 Other revenues: Rental income 2,640 5,889 Total revenue from other sources 2,640 5,889 Total revenues $ 28,501 $ 51,523 |
Real Estate and Corporate Segment | |
Disaggregation of Revenue [Line Items] | |
Separation and Disaggregation of Revenue | The following presents our revenues from contracts with customers disaggregated by project for the three months ended March 31, 2019 and 2018 (in thousands): Real Estate Segment Otay San Elijo Ashville Park The Market Common SweetBay Rampage BRP Leasing Pacho Total Real Estate Segment Total Corporate Segment Total Three month 2019 period Revenues from contracts with customers: Sales of real estate $ — $ 17,527 $ — $ 275 $ 7,805 $ — $ — $ — $ 25,607 $ — $ 25,607 Profit participation from real estate sales — — — 185 — — — — 185 — 185 Contract service revenues 54 — — — — — — — 54 — 54 Co-op marketing and advertising fees — — 15 — — — — — 15 — 15 Total revenues from contracts with customers 54 17,527 15 460 7,805 — — — 25,861 — 25,861 Other revenues: Rental income — — — 2,535 94 — — 7 2,636 4 2,640 Total revenue from other sources: — — — 2,535 94 — — 7 2,636 4 2,640 Total revenues: $ 54 $ 17,527 $ 15 $ 2,995 $ 7,899 $ — $ — $ 7 $ 28,497 $ 4 $ 28,501 Three month 2018 period Revenues from contracts with customers: Sales of Real Estate $ — $ 4,804 $ — $ 250 $ 2,831 $ 26,000 $ — $ — $ 33,885 $ — $ 33,885 Profit participation from real estate sales — — — 113 — — — — 113 — 113 Contract service revenues 11,506 — — — — — — — 11,506 — 11,506 Co-op marketing and advertising fees — 100 30 — — — — — 130 — 130 Total revenues from contracts with customers 11,506 4,904 30 363 2,831 26,000 — — 45,634 — 45,634 Other revenues: Rental income — — — 2,531 67 — 3,281 7 5,886 3 5,889 Total revenue from other sources: — — — 2,531 67 — 3,281 7 5,886 3 5,889 Total revenues: $ 11,506 $ 4,904 $ 30 $ 2,894 $ 2,898 $ 26,000 $ 3,281 $ 7 $ 51,520 $ 3 $ 51,523 |
Real Estate Sales Activity (Tab
Real Estate Sales Activity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate Sales Activity [Abstract] | |
Schedule of real estate sales activity | For the three months ended March 31, 2019 and 2018, we closed on sales of real estate at The Market Common as follows: 2019 2018 Number of units sold Revenue from contracts with customers Number of units sold Revenue from contracts with customers Single family lots — $ — 5 $ 250,000 Multi-family lots 9 275,000 — — Profit sharing agreements N/A 200,000 N/A 100,000 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of outstanding bonds | As of March 31, 2019, the amount of outstanding bonds for each project is as follows: Amount of outstanding bonds Otay Land project $ 50,400,000 San Elijo Hills project 650,000 Ashville Park project 600,000 The Market Common 100,000 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | Certain information concerning our segments for the three months ended March 31, 2019 and 2018 is presented in the following table (dollars in thousands). 2019 2018 Revenues: Real estate $ 28,497 $ 51,520 Corporate 4 3 Total consolidated revenues $ 28,501 $ 51,523 Income (loss) from continuing operations before income taxes and noncontrolling interest: Real estate $ (1,500) $ 16,266 Corporate (3,923) (3,649) Total consolidated income (loss) from continuing operations before income taxes and noncontrolling interest $ (5,423) $ 12,617 Depreciation and amortization expenses: Real estate $ 459 $ 840 Corporate 17 17 Total consolidated depreciation and amortization expenses $ 476 $ 857 Identifiable assets employed: March 31, 2019 December 31, 2018 Real estate $ 546,125 $ 531,005 Corporate 63,552 63,003 Total consolidated assets $ 609,677 $ 594,008 |
Recent Developments (Details)
Recent Developments (Details) | May 02, 2019shares |
Subsequent Event | Jefferies | |
Subsequent Event [Line Items] | |
Equity issued per acquiree share (in shares) | 2 |
Accounting Developments (Narrat
Accounting Developments (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2019 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2017 | |
Item Effected [Line Items] | |||||||
Other comprehensive income | $ 0 | $ 0 | $ 0 | $ 0 | |||
Right of use asset | 1,850,000 | ||||||
Lease liability | $ 1,910,000 | ||||||
Cumulative effect of the adoption of accounting standards | $ 1,228,000 | ||||||
Accounting Standards Update 2016-02 | |||||||
Item Effected [Line Items] | |||||||
Right of use asset | $ 1,930,000 | ||||||
Lease liability | $ 1,950,000 | ||||||
Accumulated Deficit | |||||||
Item Effected [Line Items] | |||||||
Cumulative effect of the adoption of accounting standards | $ 1,228,000 | ||||||
Accumulated Deficit | Accounting Standards Update 2014-09 | |||||||
Item Effected [Line Items] | |||||||
Cumulative effect of the adoption of accounting standards | $ 1,250,000 | ||||||
Tax effect on the Cumulative effect of New accounting principle in period of adoption | $ 550,000 |
Intangibles, Net (Narrative) (D
Intangibles, Net (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Stock issued during period related to an acquisitions (in shares) | 7,500,000 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Rental Income | $ 50,000 | $ 200,000 | |
Below Market Lease, Amortization Income, Maturity Schedule [Abstract] | |||
Remainder of 2019 | (150,000) | ||
2020 | (200,000) | ||
2021 | (200,000) | ||
2022 | (100,000) | ||
2023 | (100,000) | ||
Thereafter | (500,000) | ||
Above market lease contracts, net of accumulated amortization of $10,527 and $10,513 | |||
Finite-Lived Intangible Assets [Line Items] | |||
Rental Income | 10,000 | 500,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
Remainder of 2019 | 50,000 | ||
2020 | 50,000 | ||
2021 | 50,000 | ||
2022 | 50,000 | ||
2023 | 50,000 | ||
Thereafter | 150,000 | ||
Lease in place value, net of accumulated amortization of $3,424 and $3,393 | |||
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
Remainder of 2019 | 50,000 | ||
2020 | 100,000 | ||
2021 | 100,000 | ||
2022 | 100,000 | ||
2023 | 50,000 | ||
Thereafter | 300,000 | ||
Below Market Lease, Amortization Income, Maturity Schedule [Abstract] | |||
Amortization expense | $ 50,000 | $ 150,000 |
Intangibles, Net (Schedule of I
Intangibles, Net (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, net | $ 1,009 | $ 1,054 | ||
Below market lease contracts, net of accumulated amortization of $4,273 and $4,211 | 1,315 | 1,377 | ||
Below market lease contracts, accumulated amortization | $ 4,273 | $ 4,211 | ||
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Below market lease contracts, amortization of useful life (in years) | 1 year | |||
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Below market lease contracts, amortization of useful life (in years) | 24 years | |||
Above market lease contracts, net of accumulated amortization of $10,527 and $10,513 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, net | 347 | 361 | ||
Intangible assets, accumulated amortization | $ 10,527 | 10,513 | ||
Above market lease contracts, net of accumulated amortization of $10,527 and $10,513 | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, amortization of useful life (in years) | 1 year | |||
Above market lease contracts, net of accumulated amortization of $10,527 and $10,513 | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, amortization of useful life (in years) | 24 years | |||
Lease in place value, net of accumulated amortization of $3,424 and $3,393 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, net | $ 662 | $ 693 | ||
Intangible assets, accumulated amortization | $ 3,424 | $ 3,393 | ||
Lease in place value, net of accumulated amortization of $3,424 and $3,393 | Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, amortization of useful life (in years) | 1 year | |||
Lease in place value, net of accumulated amortization of $3,424 and $3,393 | Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, amortization of useful life (in years) | 24 years |
Equity Method Investments (Narr
Equity Method Investments (Narrative) (Details) | Dec. 13, 2018USD ($)ft²lotsite | Jan. 05, 2017USD ($) | Jan. 31, 2019USD ($) | Jan. 31, 2017USD ($)ahomebuilder | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||
Investments in equity method investments | $ 1,470,000 | $ 11,000 | |||||
RedSky JZ Fulton Investors | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 51.00% | ||||||
BRP Holding | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 61.25% | 61.25% | |||||
BRP Hotel | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 25.80% | 25.80% | |||||
Joint Venture | RedSky JZ Fulton Investors | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Number of lots | lot | 15 | ||||||
Number of premier development sites | site | 2 | ||||||
Area of land (in acres) | ft² | 540,000 | ||||||
Investments in equity method investments | $ 52,500,000 | $ 1,450,000 | $ 53,950,000 | ||||
Ownership percentage | 49.00% | ||||||
Otay | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Area of land (in acres) | a | 450 | ||||||
Number of planned homes (in properties) | home | 948 | ||||||
Number of builders | builder | 3 | ||||||
Contributed value of unimproved land | $ 20,000,000,000 | ||||||
Contributed value of infrastructure improvements | $ 13,200,000 | ||||||
Land improvements | $ 2,250,000,000 | ||||||
Otay | Builder LLCs | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Payments to acquire and develop real estate | 20,000,000,000 | ||||||
Otay | Builder LLCs | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Credit for capital contributions | $ 78,600,000 | ||||||
Development costs incurred | $ 6,800,000 | $ 16,550,000 |
Equity Method Investments (Sche
Equity Method Investments (Schedule of Equity Method Investments) (Details) - USD ($) | Feb. 28, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 94,927,000 | $ 93,170,000 | ||
Sale leaseback transaction, net proceeds | $ 35,000,000 | |||
RedSky JZ Fulton Investors | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | 53,943,000 | 52,522,000 | ||
BRP Holding | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | 9,636,000 | 8,136,000 | ||
BRP Hotel | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | 16,762,000 | 17,963,000 | ||
Builder LLCs | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 14,586,000 | $ 14,549,000 | ||
BRP Holding | New York City Industrial Revenue Bonds | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Principal balance | $ 8,750,000 | |||
Sale leaseback transaction, net proceeds | $ 198,350,000 | |||
Sale leaseback transaction, term of contract | 21 years | |||
Payments of distributions to affiliates | $ 157,250,000 | |||
Proceeds from contributions from affiliates | 82,000,000 | |||
BRP Leasing | New York City Industrial Revenue Bonds | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Proceeds from collection of lease receivables | $ 6,000,000 |
Equity Method Investments (Sc_2
Equity Method Investments (Schedule of Income (Loss) Related to Equity Investment) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 15 Months Ended | |
Jan. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Income (losses) from equity method investments | $ (5,348,000) | $ (1,378,000) | ||
RedSky JZ Fulton Investors | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (losses) from equity method investments | (49,000) | 0 | ||
BRP Holding | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (losses) from equity method investments | 1,500,000 | (7,721,000) | ||
BRP Hotel | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (losses) from equity method investments | (1,202,000) | 3,632,000 | ||
Builder LLCs | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Income (losses) from equity method investments | (5,597,000) | $ 2,711,000 | ||
Otay | Builder LLCs | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Credit for capital contributions | $ 78,600,000 | |||
Development costs incurred | $ 6,800,000 | $ 16,550,000 |
Equity Method Investments (Sc_3
Equity Method Investments (Schedule of Equity Method Investments Summarized Financial Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Assets | $ 606,897 | $ 429,087 | |
Liabilities | 496,594 | $ 366,573 | |
Total revenues | 54,036 | $ 62,736 | |
Income from continuing operations before extraordinary items | 2,699 | 6,376 | |
Net income | $ 2,699 | $ 6,376 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | ||
Lease term | 6 years | |
Lease term extension | 5 years | |
Operating lease, discount rate | 4.26% | |
Right of use asset | $ 1,850,000 | |
Total lease liabilities | 1,950,000 | |
Lease liability | 1,910,000 | |
Lease liability, accounts payable and accrued expenses | 40,000 | |
Operating lease expense | $ 90,000 |
Leases (Schedule of Maturity of
Leases (Schedule of Maturity of Operating Lease) (Details) | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 230,000 |
2020 | 356,000 |
2021 | 366,000 |
2022 | 371,000 |
2023 | 388,000 |
Thereafter | 469,000 |
Total lease payments | 2,180,000 |
Less: imputed interest | (270,000) |
Present value of lease liabilites | $ 1,910,000 |
Debt (Construction Loans) (Deta
Debt (Construction Loans) (Details) | Apr. 30, 2018 | Mar. 31, 2018USD ($)ft²optionapartment | Dec. 31, 2017ft²apartment |
Debt Instrument [Line Items] | |||
Sale leaseback transaction, net proceeds | $ | $ 35,000,000 | ||
The Residences and Shops at Village of Escaya project | Apartments | |||
Debt Instrument [Line Items] | |||
Number of apartments | apartment | 272 | 272 | |
The Residences and Shops at Village of Escaya project | Retail Space | |||
Debt Instrument [Line Items] | |||
Area of property (in sqft) | ft² | 20,000 | 20,000 | |
The Residences and Shops at Village of Escaya project | Community Facility Building | |||
Debt Instrument [Line Items] | |||
Area of property (in sqft) | ft² | 10,000 | ||
The Residences and Shops at Village of Escaya project | Construction Loans | |||
Debt Instrument [Line Items] | |||
Loan agreements | $ | $ 58,850,000 | ||
Number of options to extend term | option | 1 | ||
Extension term | 12 months | ||
The Residences and Shops at Village of Escaya project | Construction Loans | 30-day LIBOR | |||
Debt Instrument [Line Items] | |||
Spread on variable rate | 3.15% | ||
San Elijo Hills project | Construction Loans | |||
Debt Instrument [Line Items] | |||
Extension term | 6 months |
Debt (EB-5 Program) (Details)
Debt (EB-5 Program) (Details) | 1 Months Ended | 12 Months Ended | ||||
Jul. 31, 2018USD ($)unit$ / unit | Feb. 28, 2017USD ($)unit$ / unit | Dec. 31, 2017 | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 950,000 | $ 1,800,000 | ||||
Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 18,200,000 | $ 16,200,000 | ||||
Otay Village III Lender, LLC | EB-5 Program | ||||||
Debt Instrument [Line Items] | ||||||
Amount seeking to raise | $ 125,000,000 | |||||
Number of units offered | unit | 250 | |||||
Subscription price (dollars per unit) | $ / unit | 500,000 | |||||
Loan term | 5 years | |||||
Number of options to extend term | 2 | |||||
Extension term | 1 year | |||||
Effective interest rate | 3.50% | |||||
Principal amount outstanding | $ 123,500,000 | |||||
Otay Village 8 Lender LLC | EB-5 Program | ||||||
Debt Instrument [Line Items] | ||||||
Amount seeking to raise | $ 134,000,000 | |||||
Number of units offered | unit | 268 | |||||
Subscription price (dollars per unit) | $ / unit | 500,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Income Tax Examination [Line Items] | |
Unrecognized tax benefits | $ 450,000 |
Unrecognized tax benefits, interest | 100,000 |
State and Local Jurisdiction | |
Income Tax Examination [Line Items] | |
Unrecognized tax benefit, result of expiration of statute of limitations | $ 400,000 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Numerator – net income (loss) attributable to HomeFed Corporation common shareholders | $ (3,482) | $ 8,792 |
Denominator for basic earnings per share– weighted average shares | 15,500,000 | 15,474,000 |
Denominator for diluted earnings per share– weighted average shares | 15,500,000 | 15,500,000 |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 0 | 23,000 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares) | 0 | 3,000 |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Increase in weighted average shares outstanding if no loss occurred (in shares) | 170,000 | 150,000 |
Fair Value Information (Details
Fair Value Information (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Decrease in carrying value due to impairment | $ 335,018 | $ 328,239 |
EB-5 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | 105,287 | 88,773 |
EB-5 | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt | $ 123,500 | $ 105,000 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($)employee | Mar. 31, 2018USD ($) | |
Related Party Transaction [Line Items] | ||
Administrative services fee expenses | $ 45,000 | $ 45,000 |
Rental income | $ 2,640,000 | 5,889,000 |
Builder LLCs | ||
Related Party Transaction [Line Items] | ||
Members of management committee | employee | 4 | |
Patrick Bienvenue | Director | ||
Related Party Transaction [Line Items] | ||
Related party transaction, expenses from transactions with related party | $ 50,000 | 20,000 |
Employee | Builder LLCs | ||
Related Party Transaction [Line Items] | ||
Members of management committee | employee | 2 | |
Jefferies Financial Group Inc. | ||
Related Party Transaction [Line Items] | ||
Rental income | $ 4,000 | 3,000 |
Berkadia | Advisory Fee | Joint Venture | ||
Related Party Transaction [Line Items] | ||
Amount paid to related party | 100,000 | |
Berkadia | Brokerage Advisory Fee | Joint Venture | ||
Related Party Transaction [Line Items] | ||
Amount paid to related party | $ 400,000 |
Revenues from Contracts with _3
Revenues from Contracts with Customers (Separation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | $ 25,861 | $ 45,634 |
Rental income | 2,640 | 5,889 |
Total revenues: | 28,501 | 51,523 |
Sales of real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 25,792 | 33,998 |
Contract service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 54 | 11,506 |
Co-op marketing and advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | $ 15 | $ 130 |
Revenues from Contracts with _4
Revenues from Contracts with Customers (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | $ 25,861 | $ 45,634 |
Rental income | 2,640 | 5,889 |
Total revenues: | 28,501 | 51,523 |
Sales of real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 25,607 | 33,885 |
Profit participation from real estate sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 185 | 113 |
Contract service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 54 | 11,506 |
Co-op marketing and advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 15 | 130 |
Real Estate Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 25,861 | 45,634 |
Rental income | 2,636 | 5,886 |
Total revenues: | 28,497 | 51,520 |
Real Estate Segment | Sales of real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 25,607 | 33,885 |
Real Estate Segment | Profit participation from real estate sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 185 | 113 |
Real Estate Segment | Contract service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 54 | 11,506 |
Real Estate Segment | Co-op marketing and advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 15 | 130 |
Real Estate Segment | Otay | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 54 | 11,506 |
Rental income | 0 | 0 |
Total revenues: | 54 | 11,506 |
Real Estate Segment | Otay | Sales of real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | Otay | Profit participation from real estate sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | Otay | Contract service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 54 | 11,506 |
Real Estate Segment | Otay | Co-op marketing and advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | San Elijo | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 17,527 | 4,904 |
Rental income | 0 | 0 |
Total revenues: | 17,527 | 4,904 |
Real Estate Segment | San Elijo | Sales of real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 17,527 | 4,804 |
Real Estate Segment | San Elijo | Profit participation from real estate sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | San Elijo | Contract service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | San Elijo | Co-op marketing and advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 100 |
Real Estate Segment | Ashville Park | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 15 | 30 |
Rental income | 0 | 0 |
Total revenues: | 15 | 30 |
Real Estate Segment | Ashville Park | Sales of real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | Ashville Park | Profit participation from real estate sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | Ashville Park | Contract service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | Ashville Park | Co-op marketing and advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 15 | 30 |
Real Estate Segment | The Market Common | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 460 | 363 |
Rental income | 2,535 | 2,531 |
Total revenues: | 2,995 | 2,894 |
Real Estate Segment | The Market Common | Sales of real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 275 | 250 |
Real Estate Segment | The Market Common | Profit participation from real estate sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 185 | 113 |
Real Estate Segment | The Market Common | Contract service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | The Market Common | Co-op marketing and advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | SweetBay | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 7,805 | 2,831 |
Rental income | 94 | 67 |
Total revenues: | 7,899 | 2,898 |
Real Estate Segment | SweetBay | Sales of real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 7,805 | 2,831 |
Real Estate Segment | SweetBay | Profit participation from real estate sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | SweetBay | Contract service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | SweetBay | Co-op marketing and advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | Rampage | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 26,000 |
Rental income | 0 | 0 |
Total revenues: | 0 | 26,000 |
Real Estate Segment | Rampage | Sales of real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 26,000 |
Real Estate Segment | Rampage | Profit participation from real estate sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | Rampage | Contract service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | Rampage | Co-op marketing and advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | BRP Leasing | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Rental income | 0 | 3,281 |
Total revenues: | 0 | 3,281 |
Real Estate Segment | BRP Leasing | Sales of real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | BRP Leasing | Profit participation from real estate sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | BRP Leasing | Contract service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | BRP Leasing | Co-op marketing and advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | Pacho | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Rental income | 7 | 7 |
Total revenues: | 7 | 7 |
Real Estate Segment | Pacho | Sales of real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | Pacho | Profit participation from real estate sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | Pacho | Contract service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Real Estate Segment | Pacho | Co-op marketing and advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Total Corporate Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Rental income | 4 | 3 |
Total revenues: | 4 | 3 |
Total Corporate Segment | Sales of real estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Total Corporate Segment | Profit participation from real estate sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Total Corporate Segment | Contract service revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | 0 | 0 |
Total Corporate Segment | Co-op marketing and advertising fees | ||
Disaggregation of Revenue [Line Items] | ||
Revenues from contracts with customers: | $ 0 | $ 0 |
Revenues from Contracts with _5
Revenues from Contracts with Customers (Schedule of Changes in Deferred Revenue Upon Adoption) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Contract With Customer, Liability [Roll Forward] | |
Performance obligations not yet complete on the date of sale | $ 0 |
Performance obligations satisfied | (54) |
Contract liability balance balance at March 31, | $ 954 |
Revenues from Contracts with _6
Revenues from Contracts with Customers (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Jan. 01, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Receivables | $ 5,460,000 | $ 11,084,000 | ||
Recorded impairment charges related to receivables | 0 | $ 0 | ||
Deferred revenue | 954,000 | $ 1,008,000 | ||
Receivables Related to Revenues from Contracts With Customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Receivables | $ 550,000 | $ 500,000 |
Interest and Other Income (Deta
Interest and Other Income (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Sep. 30, 2017 | |
Other Income and Expenses [Abstract] | |||
Other nonoperating income | $ 100,000 | $ 90,000 | |
Interest income | $ 50,000 | $ 20,000 | $ 0 |
Real Estate Sales Activity (Nar
Real Estate Sales Activity (Narrative) (Details) | Apr. 26, 2019USD ($)property | Aug. 31, 2018aproperty | Jul. 31, 2018USD ($) | Jan. 31, 2018USD ($) | Jun. 30, 2015property | May 31, 2015property | Mar. 31, 2019USD ($)property | Sep. 30, 2018USD ($)property | Mar. 31, 2018USD ($)property | Sep. 30, 2017USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($)property | Dec. 31, 2018USD ($)a | Jan. 01, 2018USD ($) |
Real Estate Properties [Line Items] | |||||||||||||||
Deferred revenue | $ 954,000 | $ 1,008,000 | |||||||||||||
Rampage Property | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Cash proceeds | $ 12,600,000 | $ 26,000,000 | |||||||||||||
Acquisition of replacement property | $ 13,400,000 | ||||||||||||||
Gain on sale of Real Estate | $ 17,300,000 | ||||||||||||||
Otay Land Project | Multi-family lots | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Number of units in real estate property sold (in properties) | property | 46 | 59 | |||||||||||||
The Residences and Shops at Village of Escaya project | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Area of land (in acres) | a | 10,000 | ||||||||||||||
Deferred revenue | $ 1,900,000 | ||||||||||||||
Option deposit | $ 60,000 | ||||||||||||||
San Elijo Hills project | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Cash proceeds | $ 17,550,000 | $ 4,800,000 | $ 13,100,000 | ||||||||||||
Number of units in real estate property sold (in properties) | property | 9 | 3 | 9 | ||||||||||||
Number of real estate properties contracted to construct and sell (in properties) | property | 58 | ||||||||||||||
Refundable deposit payment received | $ 500,000 | ||||||||||||||
Ashville Park project | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Cash proceeds | $ 0 | $ 0 | $ 0 | $ 0 | |||||||||||
Area of land (in acres) | a | 25 | ||||||||||||||
Village C | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Number of real estate properties contracted to construct and sell (in properties) | property | 116 | ||||||||||||||
Village D | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Number of real estate properties contracted to construct and sell (in properties) | property | 44 | ||||||||||||||
The Market Common | Single family lots | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Number of units in real estate property sold (in properties) | property | 0 | 5 | |||||||||||||
The Market Common | Multi-family lots | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Number of units in real estate property sold (in properties) | property | 9 | 0 | |||||||||||||
SweetBay | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Cash proceeds | $ 7,800,000 | $ 2,850,000 | |||||||||||||
Cost of sales of real estate | $ 7,500,000 | $ 2,750,000 | |||||||||||||
SweetBay | Single family lots | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Number of units in real estate property sold (in properties) | property | 23 | 8 | |||||||||||||
SweetBay Project, Phase 1A | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Number of real estate properties contracted to construct and sell (in properties) | property | 127 | ||||||||||||||
SweetBay Project, Phase 1B | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Number of real estate properties contracted to construct and sell (in properties) | property | 56 | ||||||||||||||
SweetBay Project, Phase 1C | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Number of real estate properties contracted to construct and sell (in properties) | property | 69 | ||||||||||||||
Subsequent Event | San Elijo Hills project | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Cash proceeds | $ 18,600,000 | ||||||||||||||
Number of real estate properties contracted to sell | property | 10 | ||||||||||||||
Subsequent Event | The Market Common | Homebuilder | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Non-refundable option payment received | $ 25,000 | ||||||||||||||
Subsequent Event | The Market Common | Homebuilder | Single family lots | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Number of real estate lots agreed to sell (in properties) | property | 45 | ||||||||||||||
Sales price of real estate lots contracted to sell | $ 2,250,000 | ||||||||||||||
Subsequent Event | The Market Common | Homebuilder | Multi-family lots | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Number of real estate lots agreed to sell (in properties) | property | 109 | ||||||||||||||
Sales price of real estate lots contracted to sell | $ 3,000,000 | ||||||||||||||
Subsequent Event | SweetBay | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Cash proceeds | $ 13,550,000 | ||||||||||||||
Number of real estate properties contracted to construct and sell (in properties) | property | 40 | ||||||||||||||
Subsequent Event | Scenario, Forecast | SweetBay | |||||||||||||||
Real Estate Properties [Line Items] | |||||||||||||||
Cash proceeds | $ 13,550,000 | ||||||||||||||
Number of real estate properties contracted to sell | property | 40 |
Real Estate Sales Activity (Sch
Real Estate Sales Activity (Schedule Of Real Estate Sales Activity) (Details) - The Market Common $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)property | Mar. 31, 2018USD ($)property | |
Single family lots | ||
Real Estate Properties [Line Items] | ||
Number of units in real estate property sold (in properties) | property | 0 | 5 |
Cash proceeds | $ 0 | $ 250 |
Multi-family lots | ||
Real Estate Properties [Line Items] | ||
Number of units in real estate property sold (in properties) | property | 9 | 0 |
Cash proceeds | $ 275 | $ 0 |
Profit sharing agreements | ||
Real Estate Properties [Line Items] | ||
Cash proceeds | $ 200 | $ 100 |
Real Estate Held for Developm_2
Real Estate Held for Development (Details) - USD ($) | May 02, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Real Estate Properties [Line Items] | |||
Lease term | 6 years | ||
Pacho | |||
Real Estate Properties [Line Items] | |||
Lease term | 99 years | ||
Pre-tax charge | $ 17,450,000 | ||
Impairment attributable to non-controlling interest | $ 1,750,000 | ||
Subsequent Event | |||
Real Estate Properties [Line Items] | |||
Lease term | 51 years |
Commitments and contingencies_2
Commitments and contingencies (Narrative) (Details) | 1 Months Ended | 3 Months Ended | ||
May 31, 2018a | Mar. 31, 2019USD ($) | Mar. 31, 2018ft²apartment | Dec. 31, 2017ft²apartment | |
Business Acquisition [Line Items] | ||||
Area of office space | a | 2,240 | |||
Apartments | The Residences and Shops at Village of Escaya project | ||||
Business Acquisition [Line Items] | ||||
Number of apartments | apartment | 272 | 272 | ||
Retail Space | The Residences and Shops at Village of Escaya project | ||||
Business Acquisition [Line Items] | ||||
Area of property (in sqft) | ft² | 20,000 | 20,000 | ||
Development costs incurred | $ | $ 40,950,000 |
Commitments and contingencies_3
Commitments and contingencies (Schedule Of Outstanding Bonds) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Otay Land project | |
Amount of outstanding bonds | $ 50,400 |
San Elijo Hills project | |
Amount of outstanding bonds | 650 |
Ashville Park project | |
Amount of outstanding bonds | 600 |
The Market Common | |
Amount of outstanding bonds | $ 100 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) | Aug. 08, 2018$ / sharesshares | Mar. 15, 2017$ / sharesshares | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Mar. 31, 2019shares | Aug. 04, 2017shares | Aug. 13, 2014shares |
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized (in shares) | 100,000 | ||||||
Restricted stock awards granted (in shares) | 75,000 | ||||||
Tranche One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Closing price (USD per share) | $ / shares | $ 44.20 | ||||||
Compensation cost | $ | $ 250,000 | ||||||
Tranche One | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted stock awards granted (in shares) | 22,500 | ||||||
Vesting percentage | 50.00% | ||||||
Award settlement period | 30 days | ||||||
Tranche Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation cost | $ | $ 250,000 | $ 200,000 | |||||
Tranche Two | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award expiration period | 10 days | ||||||
Restricted stock awards granted (in shares) | 15,000 | ||||||
Vesting percentage | 50.00% | ||||||
Award settlement period | 30 days | ||||||
Stock Incentive Plan - 1999 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for grant (in shares) | 252,400 | ||||||
Stock Incentive Plan - 1999 | Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award expiration period | 5 years | ||||||
Number of installments | 4 | ||||||
Award requisite service period | 4 years | ||||||
Award vesting period | 1 year | ||||||
2017 RSU Plan | Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized (in shares) | 66,000 | ||||||
Director | Stock Incentive Plan - 1999 | Nonemployee Stock Option | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares granted in period (in shares) | 7,000 | ||||||
Exercise price (USD per share) | $ / shares | $ 50.50 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Reporting) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total consolidated revenues | $ 28,501 | $ 51,523 | |
Total consolidated income (loss) from continuing operations before income taxes and noncontrolling interest | (5,423) | 12,617 | |
Total consolidated depreciation and amortization expenses | 476 | 857 | |
Total consolidated assets | 609,677 | $ 594,008 | |
Real estate | |||
Segment Reporting Information [Line Items] | |||
Total consolidated revenues | 28,497 | 51,520 | |
Total consolidated income (loss) from continuing operations before income taxes and noncontrolling interest | (1,500) | 16,266 | |
Total consolidated depreciation and amortization expenses | 459 | 840 | |
Total consolidated assets | 546,125 | 531,005 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Total consolidated revenues | 4 | 3 | |
Total consolidated income (loss) from continuing operations before income taxes and noncontrolling interest | (3,923) | (3,649) | |
Total consolidated depreciation and amortization expenses | 17 | $ 17 | |
Total consolidated assets | $ 63,552 | $ 63,003 |