Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | CPTP |
Entity Registrant Name | CAPITAL PROPERTIES INC /RI/ |
Entity Central Index Key | 202,947 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 6,599,912 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Properties and equipment (net of accumulated depreciation) | $ 8,815,000 | $ 8,953,000 |
Cash and cash equivalents | 4,072,000 | 5,202,000 |
Investments | 2,025,000 | |
Funds on deposit with agent | 462,000 | |
Prepaid and other | 319,000 | 434,000 |
Deferred income taxes associated with discontinued operations | 105,000 | 108,000 |
Total assets | 15,336,000 | 15,159,000 |
Liabilities: | ||
Dividends payable | 462,000 | |
Property taxes | 224,000 | 224,000 |
Other | 506,000 | 536,000 |
Income tax payable | 53,000 | 35,000 |
Deferred income taxes, net | 739,000 | 803,000 |
Liabilities associated with discontinued operations (Note 7) | 418,000 | 489,000 |
Total liabilities | 1,940,000 | 2,549,000 |
Shareholders’ equity: | ||
Class A common stock, $.01 par; authorized 10,000,000 shares; issued and outstanding 6,599,912 shares | 66,000 | 66,000 |
Capital in excess of par | 782,000 | 782,000 |
Retained earnings | 12,548,000 | 11,762,000 |
Total shareholders' equity | 13,396,000 | 12,610,000 |
Total liabilities and shareholders' equity | $ 15,336,000 | $ 15,159,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 6,599,912 | 6,599,912 |
Common stock, shares outstanding | 6,599,912 | 6,599,912 |
Consolidated Statements of Inco
Consolidated Statements of Income and Retained Earnings - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenue and other income: | ||||
Revenue, leasing | $ 1,315,000 | $ 1,260,000 | $ 3,965,000 | $ 3,890,000 |
Other income, interest | 30,000 | 72,000 | ||
Revenue and other income | 1,345,000 | 1,260,000 | 4,037,000 | 3,890,000 |
Expenses: | ||||
Operating | 221,000 | 376,000 | 717,000 | 888,000 |
General and administrative | 343,000 | 407,000 | 1,205,000 | 1,557,000 |
Interest on dividend notes | 112,000 | |||
Total expenses | 564,000 | 783,000 | 1,922,000 | 2,557,000 |
Income from continuing operations before income taxes | 781,000 | 477,000 | 2,115,000 | 1,333,000 |
Income tax expense (benefit): | ||||
Current | 221,000 | 215,000 | 606,000 | 689,000 |
Deferred | (16,000) | (37,000) | (64,000) | (225,000) |
Total Income tax expense | 205,000 | 178,000 | 542,000 | 464,000 |
Income from continuing operations | 576,000 | 299,000 | 1,573,000 | 869,000 |
Loss from discontinued operations, net of taxes | (14,000) | (38,000) | (65,000) | (331,000) |
Gain on sale of discontinued operations, net of taxes | 664,000 | 5,210,000 | ||
Net income | 562,000 | 261,000 | 2,172,000 | 5,748,000 |
Retained earnings, beginning | 12,448,000 | 11,710,000 | 11,762,000 | 6,223,000 |
Dividends on common stock ($.07 per share) based upon 6,599,912 shares outstanding | (462,000) | (1,386,000) | ||
Retained earnings, ending | $ 12,548,000 | $ 11,971,000 | $ 12,548,000 | $ 11,971,000 |
Basic income (loss) per common share based upon 6,599,912 shares outstanding: | ||||
Continuing operations | $ 0.09 | $ 0.04 | $ 0.24 | $ 0.13 |
Discontinued operations | (0.01) | (0.05) | ||
Gain on sale of discontinued operations | 0.10 | 0.79 | ||
Total basic income per common share | $ 0.09 | $ 0.04 | $ 0.33 | $ 0.87 |
Consolidated Statements of In_2
Consolidated Statements of Income and Retained Earnings (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Dividends on common stock, per share | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 |
Dividends on common stock, shares outstanding | 6,599,912 | 6,599,912 | 6,599,912 | 6,599,912 |
Basic income (loss) per common share, shares outstanding | 6,599,912 | 6,599,912 | 6,599,912 | 6,599,912 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Income from continuing operations | $ 1,573,000 | $ 869,000 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities, continuing operations: | ||
Depreciation | 138,000 | 138,000 |
Deferred income taxes | (64,000) | (225,000) |
Income taxes payable | 18,000 | 12,000 |
Other, net changes in prepaids, property tax payable and other | 85,000 | 56,000 |
Net cash provided by operating activities, continuing operations | 1,750,000 | 850,000 |
Net cash (used in) operating activities, discontinued operations | (331,000) | (7,651,000) |
Net cash provided by (used in) operating activities | 1,419,000 | (6,801,000) |
Cash flows from investing activities: | ||
Investments | (2,025,000) | |
Properties and equipment | (11,000) | |
Continuing operations | (2,025,000) | (11,000) |
Discontinued operations, sale of assets | 862,000 | 19,794,000 |
Net cash provided by (used in) investing activities | (1,163,000) | 19,783,000 |
Cash flows from financing activities: | ||
Payment of dividends | (1,386,000) | |
Redemption of dividend notes payable | (10,608,000) | |
Cash used in financing activities | (1,386,000) | (10,608,000) |
Increase (decrease) in cash and cash equivalents | (1,130,000) | 2,374,000 |
Cash and cash equivalents, beginning | 5,202,000 | 3,124,000 |
Cash and cash equivalents, ending | 4,072,000 | 5,498,000 |
Supplemental disclosures: | ||
Continuing operations | 548,000 | 654,000 |
Discontinued operations, sale of assets | 198,000 | 6,418,000 |
Income Taxes Paid, Net, Total | $ 746,000 | 7,072,000 |
Interest | $ 156,000 |
Description of business
Description of business | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of business | 1. Description of business: Capital Properties, Inc. and its wholly-owned subsidiaries, Tri-State Displays, Inc., Capital Terminal Company and Dunellen, LLC (collectively referred to as “the Company”) for many years operated in two segments, leasing and petroleum storage. On December 20, 2016, the Company’s Board of Directors (“Board”) authorized the sale of the Company’s petroleum storage facility and related assets, including the Wilkesbarre Pier and petroleum transmission pipelines owned or controlled by Capital Terminal Company and Dunellen, LLC (“Petroleum Segment”), to Sprague Operating Resources, LLC, a subsidiary of Sprague Resources, LP (collectively referred to as “Sprague”) for $23 Million subject to certain adjustments. The Company concluded that the sale of the petroleum storage facility met the criteria of a discontinued operation in conformity with United States generally accepted accounting principles (“GAAP”) and therefore the petroleum storage segment is reported as a discontinued operation for all periods presented. On January 24, 2017, the Company and Sprague entered into a definitive purchase and sale agreement (the “Sale Agreement”). The sale closed on February 10, 2017. See Note 7. With the sale of the Terminal, the Board determined that there was no longer a need to maintain Capital Terminal Company and Dunellen, LLC, and at its April 24, 2018 regularly scheduled Board meeting, it voted to liquidate and dissolve these two companies. The Company’s continuing operations consist of the long-term leasing of certain of its real estate interests in downtown Providence, Rhode Island (upon the commencement of which the tenants have been required to construct buildings thereon, with the exception of the parking garage and Parcel 6C), the leasing of a portion of its building (“Steeple Street Building”) under short-term leasing arrangements and the leasing of locations along interstate and primary highways in Rhode Island and Massachusetts to Lamar Outdoor Advertising, LLC (“Lamar”) which has constructed outdoor advertising boards thereon. The Company anticipates that the future development of its remaining properties in and adjacent to the Capital Center area will consist primarily of long-term ground leases. Pending this development, the Company leases these parcels for public parking to Metropark, Ltd. |
Principles of consolidation and
Principles of consolidation and basis of presentation | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of consolidation and basis of presentation | 2. The accompanying condensed consolidated financial statements include the accounts and transactions of the Company and its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying condensed consolidated balance sheet as of December 31, 2017, has been derived from audited financial statements and the unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s latest Form 10-K for the year ended December 31, 2017. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial position as of September 30, 2018 and the results of operations for the three and nine months ended September 30, 2018 and 2017, and cash flows for the nine months ended September 30, 2018 and 2017. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Environmental incidents: The Company accrues a liability when an environmental incident has occurred and the costs are estimable. The Company does not record a receivable for recoveries from third parties for environmental matters until it has determined that the amount of the collection is reasonably assured. The accrued liability is relieved when the Company pays the liability or a third party assumes the liability. Upon determination that collection is reasonably assured or a third party assumes the liability, the Company records the amount as a reduction of expense. Cash and cash equivalents: For purposes of the statements of cash flows, the Company considers all highly liquid deposits purchased with a maturity of three months or less to be cash equivalents. Investments: Investments consist of certificates of deposit that bear interest at 2.5 percent per annum with an original maturity of March 15, 2023 plus earned interest. Each certificate of deposit ($1,000,000) provides for a one-time penalty free withdrawal after September 16, 2018 and March 16, 2019. Recent accounting pronouncements: In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update No. 2016-02, which requires lessors to classify leases as sales-type, direct financing, or operating leases. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No, 2018-111, Targeted Improvements. A lease is a sales-type lease if any one of the five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of the five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. The new standard is effective for the company on January 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented as its date of initial application. The Company will adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. The new standard provides a number of practical expedients in transition. The Company will elect the “package of practical expedients”, which permits the Company not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. For additional information on the Company’s leases, see Note 5. |
Use of estimates
Use of estimates | 9 Months Ended |
Sep. 30, 2018 | |
Text Block [Abstract] | |
Use of estimates | 3. Use of estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates also affect the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. |
Properties and equipment
Properties and equipment | 9 Months Ended |
Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Properties and equipment | 4. Properties and equipment : Properties and equipment consist of the following: September 30, 2018 December 31, 2017 Properties on lease or held for lease: Land and land improvements $ 4,701,000 $ 4,701,000 Building and improvements, Steeple Street 5,831,000 5,831,000 10,532,000 10,532,000 Office equipment 95,000 95,000 10,627,000 10,627,000 Less accumulated depreciation: Properties on lease or held for lease 1,728,000 1,593,000 Office equipment 84,000 81,000 1,812,000 1,674,000 $ 8,815,000 $ 8,953,000 |
Description of leasing arrangem
Description of leasing arrangements | 9 Months Ended |
Sep. 30, 2018 | |
Leases [Abstract] | |
Description of leasing arrangements | 5 . Description of leasing arrangements: Long-term land leases: As of September 30, 2018, the Company had entered into nine long-term land leases. The various tenants have completed construction of improvements on seven of the parcels. On Parcel 6B, construction of a 169-unit residential complex commenced in November 2016 and is not yet complete. Parcel 6C is being used as a construction staging area for the construction on Parcel 6B. On September 28, 2017, the Company entered into a long term ground lease of Parcel 20. Under the terms of the lease, tenant possession will not occur until such time as the tenant has received all necessary approvals for construction of not less than 100,000 square feet of mixed use improvements. Prior to transfer of possession, no rent is being paid by the tenant and the Company receives all rents from existing tenants and parking lease revenue and remains responsible for all expenses, including real estate taxes, related to Parcel 20. Following tenant possession, tenant is obligated not only to pay ground rent for the parcel but also to pay the Company an additional amount for thirty years to compensate the Company for the building presently located on the premises. Under the nine land leases, the tenants may negotiate tax stabilization treaties or other arrangements, appeal any changes in real property assessments, and pay real property taxes assessed on land and improvements under these arrangements. Accordingly, with the exception of Parcel 20, real property taxes payable by the tenants are excluded from leasing revenues and leasing expenses on the accompanying consolidated statements of income and retained earnings. Real property taxes attributable to the Company’s land under these leases totaled $309,000 and $927,000 for the three and nine months ended September 30, 2018 and $310,000 and $927,000, respectively, for the three and nine months ended September 30, 2017. Under two of the long-term land leases, the Company receives contingent rentals (based on a fixed percentage of gross revenue received by the tenants) which totaled $28,000 and $82,000 for the three and nine months ended September 30, 2018 and $25,000 and $76,000 for the three and nine months ended September 30, 2017. With respect to the Parcel 6B and 6C leases, each lessee has the right to terminate its lease at any time during the remaining term of that lease upon thirty days’ notice. To date, no notice of termination has been received by the Company. The current annual rents on Parcels 6B and 6C are $195,000 and $200,000, respectively. Lamar lease: The Company, through a wholly-owned subsidiary, leases 23 outdoor advertising locations containing 44 billboard faces along interstate and primary highways in Rhode Island and Massachusetts to Lamar under a lease which expires in 2045. The Lamar lease provides, among other things, for the following: (1) the base rent will increase annually at the rate of 2.75% for each leased billboard location on June 1 of each year, and (2) in addition to base rent, for each 12-month period commencing each June 1, Lamar must pay to the Company within thirty days after the close of the lease year 30% of the gross revenues from each standard billboard and 20% of the gross revenues from each electronic billboard for such 12-month period, reduced by the sum of (a) commissions paid to third parties and (b) base monthly rent for each leased billboard display for each 12-month period. For the lease years ended May 31, 2018 and 2017, the percentage rent totaled $119,000 and $108,000, respectively, which amounts are included in operating revenues on the accompanying consolidated statements of income for the nine months ended September 30, 2018 and September 30, 2017. Parking lease: The Company leases the undeveloped parcels of land in or adjacent to the Capital Center area for public parking purposes to Metropark under a ten year lease. The lease is cancellable as to all or any portion of the leased premises at any time on thirty day’s written notice in order for the Company or any new tenant of the Company to develop all or any portion of the leased premises. Steeple Street: At September 30, 2018, the Company has three tenants occupying 44 percent of the Steeple Street Building under short-term leases of five years or less at a current annual rental of $82,000. The Company is recognizing the revenue from these leases on a straight-line basis over the terms of the leases. At September 30, 2018 and 2017, there was no excess of straight-line over contractual rentals. The Company also reports as revenue tenant reimbursements for common area costs and real property taxes. The Company is currently marketing the remaining portions of the building for lease and utilizes a portion of the building for its offices. |
Income taxes, continuing operat
Income taxes, continuing operations | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes, continuing operations | 6 . Income taxes, continuing operations: Deferred income taxes are recorded based upon differences between financial statement and tax basis amounts of assets and liabilities. The tax effects of temporary differences for continuing operations which give rise to deferred tax assets and liabilities were as follows: September 30, 2018 December 31, 2017 Gross deferred tax liabilities: Property having a financial statement basis in excess of tax basis $ 844,000 $ 825,000 Insurance premiums and accrued leasing revenues 19,000 14,000 863,000 839,000 Less deferred tax assets (124,000 ) (36,000 ) $ 739,000 $ 803,000 |
Discontinued operations
Discontinued operations | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued operations | 7. Discontinued operations: On December 20, 2016, the Company’s Board of Directors voted to authorize the sale of its Petroleum Segment to Sprague for $23 Million (the “Sale Price”) subject to certain adjustments. On January 24, 2017, the Company and Sprague entered into the Sale Agreement. The sale closed on February 10, 2017. Pursuant to the Sale Agreement, the Sale Price was reduced by $1,040,000, the estimated cost of a turning dolphin (Dolphin Project) to be constructed by Sprague adjacent to the Pier in order that the Pier can berth Panamax sized vessels; $1,725,000 of the Sale Price was placed in escrow to secure the Company’s indemnity obligations under the Sale Agreement and $441,000 in normal closing adjustments, transfer taxes, investment banking and other fees, other than federal and state income taxes. The net proceeds delivered to the Company amounted to $19.8 Million. Following receipt of the net proceeds, the Company issued a notice of mandatory redemption of 100% of the remaining Dividend Notes for a redemption price equal to the outstanding principal face amount of $10,608,000 plus accrued interest of $156,000. The Notes were redeemed on March 31, 2017. In accordance with the Sale Agreement, the Company has agreed to retain and pay for the environmental remediation costs associated with a 1994 storage tank fuel oil leak which allowed the escape of a small amount of fuel oil. Since 1994, the Company and its consultants have continued to worked with the Rhode Island Department of Environmental Management (“RIDEM”) through the various phases of remediation and are now working to complete the final remediation plan. At December 31, 2017 the total accrual for the cost of remediation was $434,000. During 2018, remediation costs of $16,000 were incurred which reduced the total accrual to $418,000. Through September 30, 2018, the company incurred professional fees of $85,000 related to this matter. Any subsequent increases or decreases to the expected cost of remediation will be recorded in the Company’s consolidated income statement and retained earnings as income or expense from discontinued operations. The Sales Agreement also contains a cost sharing provision for the Dolphin Project whereby any variance from the initial estimate of $1,040,000 will be borne equally by Sprague and the Company subject to certain limitations. In May 2018 the Company received notice from Sprague that Sprague had received bids for the Dolphin Project and that the cost of the Project was estimated at $1,923,284. Sprague requested that the Company acknowledge that it was obligated to pay 50% of the cost in excess of $1,040,000, or $441,642. The Company replied that pursuant to the letter agreement between the Company and Sprague (the “Letter Agreement”) the Company’s obligation cannot exceed $104,000 assuming, among other things, that Sprague had been timely in securing bids for the Project and the scope of the Project as bid was consistent with the Letter Agreement. Provided there are no breaches, the aforementioned escrow will be returned to the Company, 50 percent after 12 months and the remainder after 24 months. As the release of the funds held in escrow is contingent on no breaches in the Company’s representations, warranties and covenants, the Company will report as income the escrow funds when received. In February 2018, the Company received 50 percent of the aforementioned escrow, or $862,000, which amount is reported net of income taxes as “Gain on sale of discontinued operations, net of taxes.” A reconciliation of the major classes of liabilities associated with the discontinued operations as of September 30, 2018 and December 31, 2017 is as follows: September 30, 2018 December 31, 2017 Environmental remediation $ 418,000 $ 434,000 Accounts payable, income taxes and other - 55,000 $ 418,000 $ 489,000 Revenue and income before income taxes attributable to discontinued operations for the three and nine months ended September 30, 2018 and 2017 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues $ - $ - $ - $ 364,000 Operating expenses 21,000 61,000 85,000 907,000 Loss from discontinued operations before income taxes (21,000 ) (61,000 ) (85,000 ) (543,000 ) Income tax (benefit) (7,000 ) (23,000 ) (20,000 ) (212,000 ) Loss from discontinued operations, net of taxes $ (14,000 ) $ (38,000 ) $ (65,000 ) $ (331,000 ) The net gain from sale of discontinued operations as of September 30, 2018 and 2017, was calculated as follows: Nine Months Ended September 30, 2018 2017 Gain from sale of discontinued operations before income taxes $ 862,000 $ 8,640,000 Less income tax expense: Current tax expense 198,000 6,607,000 Deferred tax benefit - (3,177,000 ) 198,000 3,430,000 Net gain from sale of discontinued operations $ 664,000 $ 5,210,000 |
Fair value of financial instrum
Fair value of financial instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | 8 . Fair value of financial instruments: The Company believes that the fair values of its financial instruments, including cash and cash equivalents, investments, receivables and payables, approximate their respective book values because of their short-term nature. The fair values described herein were determined using significant other observable inputs (Level 2) as defined by GAAP. |
Subsequent event
Subsequent event | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent event | 9 . Subsequent event: At its October 30, 2018 regularly scheduled quarterly Board meeting, the Board of Directors voted to declare a quarterly dividend of $.07 per share for shareholders of record on November 9, 2018, payable November 23, 2018. |
Principles of consolidation a_2
Principles of consolidation and basis of presentation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Environmental incidents | Environmental incidents: The Company accrues a liability when an environmental incident has occurred and the costs are estimable. The Company does not record a receivable for recoveries from third parties for environmental matters until it has determined that the amount of the collection is reasonably assured. The accrued liability is relieved when the Company pays the liability or a third party assumes the liability. Upon determination that collection is reasonably assured or a third party assumes the liability, the Company records the amount as a reduction of expense. |
Cash and cash equivalents | Cash and cash equivalents: For purposes of the statements of cash flows, the Company considers all highly liquid deposits purchased with a maturity of three months or less to be cash equivalents. |
Investments | Investments: Investments consist of certificates of deposit that bear interest at 2.5 percent per annum with an original maturity of March 15, 2023 plus earned interest. Each certificate of deposit ($1,000,000) provides for a one-time penalty free withdrawal after September 16, 2018 and March 16, 2019. |
Recent accounting pronouncements | Recent accounting pronouncements: In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update No. 2016-02, which requires lessors to classify leases as sales-type, direct financing, or operating leases. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No, 2018-111, Targeted Improvements. A lease is a sales-type lease if any one of the five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of the five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. The new standard is effective for the company on January 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented as its date of initial application. The Company will adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. The new standard provides a number of practical expedients in transition. The Company will elect the “package of practical expedients”, which permits the Company not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. For additional information on the Company’s leases, see Note 5. |
Use of estimates | The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates also affect the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. |
Fair value of financial instruments | The Company believes that the fair values of its financial instruments, including cash and cash equivalents, investments, receivables and payables, approximate their respective book values because of their short-term nature. The fair values described herein were determined using significant other observable inputs (Level 2) as defined by GAAP. |
Properties and equipment (Table
Properties and equipment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Properties and Equipment | Properties and equipment consist of the following: September 30, 2018 December 31, 2017 Properties on lease or held for lease: Land and land improvements $ 4,701,000 $ 4,701,000 Building and improvements, Steeple Street 5,831,000 5,831,000 10,532,000 10,532,000 Office equipment 95,000 95,000 10,627,000 10,627,000 Less accumulated depreciation: Properties on lease or held for lease 1,728,000 1,593,000 Office equipment 84,000 81,000 1,812,000 1,674,000 $ 8,815,000 $ 8,953,000 |
Income taxes, continuing oper_2
Income taxes, continuing operations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets and Liabilities | The tax effects of temporary differences for continuing operations which give rise to deferred tax assets and liabilities were as follows: September 30, 2018 December 31, 2017 Gross deferred tax liabilities: Property having a financial statement basis in excess of tax basis $ 844,000 $ 825,000 Insurance premiums and accrued leasing revenues 19,000 14,000 863,000 839,000 Less deferred tax assets (124,000 ) (36,000 ) $ 739,000 $ 803,000 |
Discontinued operations (Tables
Discontinued operations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Reconciliation of Major Classes of Liabilities and Summary of Revenue and Income before Income Taxes Attributable to Discontinued Operations | A reconciliation of the major classes of liabilities associated with the discontinued operations as of September 30, 2018 and December 31, 2017 is as follows: September 30, 2018 December 31, 2017 Environmental remediation $ 418,000 $ 434,000 Accounts payable, income taxes and other - 55,000 $ 418,000 $ 489,000 Revenue and income before income taxes attributable to discontinued operations for the three and nine months ended September 30, 2018 and 2017 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Revenues $ - $ - $ - $ 364,000 Operating expenses 21,000 61,000 85,000 907,000 Loss from discontinued operations before income taxes (21,000 ) (61,000 ) (85,000 ) (543,000 ) Income tax (benefit) (7,000 ) (23,000 ) (20,000 ) (212,000 ) Loss from discontinued operations, net of taxes $ (14,000 ) $ (38,000 ) $ (65,000 ) $ (331,000 ) |
Summary of Net Gain from Sale of Discontinued Operations | The net gain from sale of discontinued operations as of September 30, 2018 and 2017, was calculated as follows: Nine Months Ended September 30, 2018 2017 Gain from sale of discontinued operations before income taxes $ 862,000 $ 8,640,000 Less income tax expense: Current tax expense 198,000 6,607,000 Deferred tax benefit - (3,177,000 ) 198,000 3,430,000 Net gain from sale of discontinued operations $ 664,000 $ 5,210,000 |
Description of Business - Addit
Description of Business - Additional Information (Detail) $ in Millions | Apr. 24, 2018Company | Sep. 30, 2018Segment | Dec. 20, 2016USD ($) |
Business Description [Line Items] | |||
Number of segments | Segment | 2 | ||
Number of companies liquidated | Company | 2 | ||
Sale of Petroleum Segment [Member] | |||
Business Description [Line Items] | |||
Sales price | $ | $ 23 |
Principles of Consolidation a_3
Principles of Consolidation and Basis of Presentation - Additional Information (Detail) - Certificates of Deposit [Member] | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Schedule of Accounting Policies [Line Items] | |
Certificates of deposit interest per annum | 2.50% |
Certificate of deposit maturities | March 15, 2023 |
Certificates of deposits | $ 1,000,000 |
Number of withdrawal allowed for certificates of deposits without penalty | 1 |
Properties and Equipment - Prop
Properties and Equipment - Properties and Equipment (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Properties and equipment gross | $ 10,627,000 | $ 10,627,000 |
Less accumulated depreciation | 1,812,000 | 1,674,000 |
Properties and equipment net | 8,815,000 | 8,953,000 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties and equipment gross | 95,000 | 95,000 |
Less accumulated depreciation | 84,000 | 81,000 |
Properties on Lease or Held for Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties on lease or held for lease | 10,532,000 | 10,532,000 |
Less accumulated depreciation | 1,728,000 | 1,593,000 |
Properties on Lease or Held for Lease [Member] | Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties on lease or held for lease | 4,701,000 | 4,701,000 |
Properties on Lease or Held for Lease [Member] | Building and Improvements, Steeple Street [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties on lease or held for lease | $ 5,831,000 | $ 5,831,000 |
Description of Leasing Arrang_2
Description of Leasing Arrangements - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018USD ($)ft²Billboard_FaceLandLeaseParcel | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)ft²Billboard_FaceLandLeaseParcelBuildingLocationTenant | Sep. 30, 2017USD ($) | |
Operating Leased Assets [Line Items] | ||||
Number of long-term land leases | LandLease | 9 | 9 | ||
Number of parcels upon which improvements have been completed | Parcel | 7 | 7 | ||
Estimated real property taxes attributable to the company land | $ 309,000 | $ 310,000 | $ 927,000 | $ 927,000 |
Number of long-term land leases with contingent rent receivable | LandLease | 2 | 2 | ||
Contingent revenue from leasing of parcel of land | $ 28,000 | 25,000 | $ 82,000 | 76,000 |
Parcel 20 [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Rent paid by tenant, prior to transfer of possession | $ 0 | |||
Payment term in addition to lease amount | 30 years | |||
Parcel 20 [Member] | Minimum [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Long-term land leases, area of land being approved for construction | ft² | 100,000 | 100,000 | ||
Parcel (6B) [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Number of parcels upon which construction has commenced | Parcel | 1 | 1 | ||
Number of residential units commenced construction | Building | 169 | |||
Annual rent | $ 195,000 | $ 195,000 | ||
Parcel (6B) and (6C) [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Notice period of lease | 30 days | |||
Parcel (6C) [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Annual rent | $ 200,000 | $ 200,000 | ||
Lamar Lease [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Number of advertising locations | Location | 23 | |||
Number of billboard faces along interstate and primary highways leased | Billboard_Face | 44 | 44 | ||
Lease expiration year | 2,045 | |||
Annual increment in base rent of lease, percentage | 2.75% | |||
Period for advance receipt of percentage of gross revenue on leases | 12 months | |||
Period to recognize specified lease revenue | 30 days | |||
Percentage of revenue due in proportion of gross revenues from each standard billboard | 30.00% | |||
Percentage of revenue due in proportion of gross revenues from each electronic billboard | 20.00% | |||
Percentage rents | $ 119,000 | 108,000 | ||
Metropark Ltd [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Term of leases | 10 years | 10 years | ||
Notice period of lease | 30 days | |||
Steeple Street Building [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Annual rent | $ 82,000 | $ 82,000 | ||
Number of tenants occupying building | Tenant | 3 | |||
Percentage of building occupied by tenants | 44.00% | |||
Term of short term leases | Five years or less | |||
Short term leases rent receivable over contractual rent | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes, Continuing Oper_3
Income Taxes, Continuing Operations - Deferred Tax Assets and Liabilities (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Gross deferred tax liabilities: | ||
Property having a financial statement basis in excess of tax basis | $ 844,000 | $ 825,000 |
Insurance premiums and accrued leasing revenues | 19,000 | 14,000 |
Gross deferred tax liabilities | 863,000 | 839,000 |
Less deferred tax assets | (124,000) | (36,000) |
Deferred tax liabilities, net of deferred tax assets | $ 739,000 | $ 803,000 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) | Feb. 10, 2017 | Jan. 24, 2017 | May 31, 2018 | Feb. 28, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 20, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from sale of assets | $ 862,000 | $ 19,794,000 | ||||||
Environmental Incident 1994 [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Additional remediation costs accrued | 16,000 | |||||||
Environmental remediation | 418,000 | $ 434,000 | ||||||
Professional fees related to environmental remediation | $ 85,000 | |||||||
Dividend Notes [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Redemption percentage | 100.00% | |||||||
Outstanding principal face amount | $ 10,608,000 | |||||||
Accrued interest | $ 156,000 | |||||||
Dividend Notes redeemable date | Mar. 31, 2017 | |||||||
Sale of Petroleum Segment [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Sales price | $ 23,000,000 | |||||||
Reduced sales price | $ 1,040,000 | $ 1,040,000 | ||||||
Amount of purchase price held in escrow | 1,725,000 | |||||||
Other expenses related to sales agreement | 441,000 | |||||||
Proceeds from sale of assets | $ 19,800,000 | |||||||
Estimated cost of the project | $ 1,923,284 | |||||||
Percentage of obligation on cost in excess of estimated cost | 50.00% | |||||||
Entities obligation on cost in excess of initial estimated cost | $ 441,642 | |||||||
Maximum additional obligation | $ 104,000 | |||||||
50 % escrow deposit release | $ 862,000 | |||||||
Percentage Of Escrow Deposit Receivable, After twelve months | 50.00% |
Discontinued Operations - Recon
Discontinued Operations - Reconciliation of Major Classes of Liabilities Associated with Discontinued Operations (Detail) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Total liabilities of the Terminal classified as associated with discontinued operations on the consolidated balance sheets | $ 418,000 | $ 489,000 |
Petroleum Segment [Member] | Discontinued Operations, Held-for-sale [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Environmental remediation | $ 418,000 | 434,000 |
Accounts payable, income taxes and other | $ 55,000 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Revenue and Income before Income Taxes Attributable to Discontinued Operations (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss from discontinued operations, net of taxes | $ (14,000) | $ (38,000) | $ (65,000) | $ (331,000) |
Petroleum Segment [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues | 364,000 | |||
Operating expenses | 21,000 | 61,000 | 85,000 | 907,000 |
Loss from discontinued operations before income taxes | (21,000) | (61,000) | (85,000) | (543,000) |
Income tax (benefit) | (7,000) | (23,000) | (20,000) | (212,000) |
Loss from discontinued operations, net of taxes | $ (14,000) | $ (38,000) | $ (65,000) | $ (331,000) |
Discontinued Operations - Sum_2
Discontinued Operations - Summary of Net Gain from Sale of Discontinued Operations (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Discontinued Operations And Disposal Groups [Abstract] | ||
Gain from sale of discontinued operations before income taxes | $ 862,000 | $ 8,640,000 |
Less income tax expense: | ||
Current tax expense | 198,000 | 6,607,000 |
Deferred tax benefit | (3,177,000) | |
Total | 198,000 | 3,430,000 |
Net gain from sale of discontinued operations | $ 664,000 | $ 5,210,000 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - $ / shares | Oct. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Subsequent Event [Line Items] | |||||
Dividends on common stock, per share | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | |
Dividend declared date | Oct. 30, 2018 | ||||
Dividend record date | Nov. 9, 2018 | ||||
Dividend payable date | Nov. 23, 2018 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividends on common stock, per share | $ 0.07 |