Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net

v3.20.2
Property and Equipment, Net
9 Months Ended
Jun. 30, 2020
Property Plant And Equipment [Abstract]  
Property and Equipment, Net

Note 4. Property and Equipment, Net

Property and equipment, net consists of the following at June 30, 2020 and September 30, 2019:

 

(in thousands)

 

June 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

Citrus trees

 

$

293,382

 

 

$

281,149

 

Equipment and other facilities

 

 

55,466

 

 

 

54,622

 

Buildings and improvements

 

 

8,133

 

 

 

8,224

 

Total depreciable properties

 

 

356,981

 

 

 

343,995

 

Less: accumulated depreciation and depletion

 

 

(112,535

)

 

 

(104,169

)

Net depreciable properties

 

 

244,446

 

 

 

239,826

 

Land and land improvements

 

 

106,631

 

 

 

105,822

 

Property and equipment, net

 

$

351,077

 

 

$

345,648

 

 

During the nine months ended June 30, 2020 and fiscal year ended September 30, 2019, the Company recorded impairments of approximately $723,000 and $244,000, respectively, relating to the loss of citrus trees.

During the fiscal year ended September 30, 2019, the Company purchased 203 acres of citrus blocks for approximately $1,950,000. These purchases were made from grove owners from within the Company’s existing grove locations. In April 2019, the lender, PGIM Real Estate Finance, LLC (“Prudential”), agreed to accept those purchases completed through April 2019 as substitute collateral and release $1,800,000 from restricted cash, which was completed in the fourth quarter of fiscal year 2019. In the fiscal year ended September 30, 2019, subsequent to April 2019, there were two additional purchases of Citrus blocks for approximately $100,000 that are not included as part of the substitution collateral. In the nine months ended June 30, 2020, two additional purchases of Citrus blocks for approximately $70,000 were completed.

 

On May 4, 2020, the Company purchased 334 citrus acres for approximately $2,850,000. This acquisition complements the Company’s existing citrus acres as these acres are located adjacent to existing groves in the Frostproof area. Additionally, this purchase was part of a like-kind exchange transaction, which will allow the Company to defer taxes relating to the sale of certain sections of the East Ranch.

 

On June 1, 2020, the Company sold approximately 30 ranch acres to an employee for approximately $122,000 and recognized a gain of approximately $89,000.

On September 27, 2019, the Company sold approximately 5,500 acres from its West Ranch for approximately $14,775,000 and realized a gain on sale of approximately $13,033,000. Upon the sale of these acres, the lease rate pertaining to the grazing and other rights was adjusted from $98,750 to $80,000 per month, as these acres were previously being leased to a third party.