FRP Holdings, Inc. (NASDAQ-FRPH) –
Second Quarter Operational
Highlights
- 16.3% increase
in pro-rata NOI ($7.61 million vs $6.55 million) over second
quarter 2022
- Mining
royalties’ highest second quarter ever in terms of revenue; royalty
revenue increased 13.2% over second quarter 2022; 9.9% increase in
royalties per ton
- 55.7% increase
in Asset Management revenue versus same period last year; 23.8%
increase in Asset Management NOI versus second quarter 2022
Second Quarter Consolidated Results of
Operations
Net income for the second quarter of 2023 was
$598,000 or $.06 per share versus $657,000 or $.07 per share in the
same period last year. The second quarter of 2023 was impacted by
the following items:
- Operating
profit increased $701,000 compared to the same quarter last year
due to improved revenues.
- Management company indirect
increased $235,000 due to merit increases and new hires along with
recruiting costs.
- Interest
expense increased $390,000 compared to the same quarter last year
due to less capitalized interest. We capitalized less interest
because of fewer in-house and joint venture projects under
development this quarter compared to last year.
- Interest income
increased $2,005,000 due primarily to an increase in interest
earned on cash equivalents and increased income from our lending
ventures.
- Equity in loss
of Joint Ventures increased $2,281,000 primarily due to losses
during lease up at The Verge and .408 Jackson.
Second Quarter Segment Operating
Results
Asset Management Segment:
Total revenues in this segment were $1,420,000,
up $508,000 or 55.7%, over the same period last year. Operating
profit was $410,000, up $216,000 from $194,000 in the same quarter
last year. Revenues and operating profit are up because of full
occupancy at 1841 and 1865 62nd Street (compared to 43.4% and 64.1%
occupancy in the second quarter of 2022, respectively) and the
addition of 1941 62nd Street to this segment in March 2023. 1941
62nd Street is a 101,750 square-foot build-to-suit, which is fully
leased and occupied. We now have nine buildings in service at three
different locations totaling 515,077 square feet of industrial and
33,708 square feet of office. At quarter end, we were 95.6% leased
and 95.6% occupied. Net operating income in this segment was
$843,000, up $162,000 or 23.8% compared to the same quarter last
year.
Mining Royalty Lands Segment:
Total revenues in this segment were $3,264,000
versus $2,883,000 in the same period last year. Total operating
profit in this segment was $2,732,000, an increase of $382,000
versus $2,350,000 in the same period last year. This increase is
the result of increases in revenue at nearly every active location.
Net Operating Income this quarter for this segment was $3,125,000,
up $380,000 or 14% compared to the same quarter last year.
Development Segment:
With respect to ongoing projects:
- We are the
principal capital source of a residential development venture in
Prince George’s County, Maryland known as “Amber Ridge.” Of the
$18.5 million in committed capital to the project, $17.2 million in
principal draws have taken place through quarter end. Through the
end of June 30, 2023, 164 of the 187 units have been sold, and we
have received $19.6 million in preferred interest and principal to
date.
- Bryant Street
is a mixed-use joint venture between the Company and MRP in
Washington, DC consisting of four buildings: The Coda, The Chase
1A, The Chase 1B, and one commercial building which became fully
leased this quarter, 90% of which is leased to an Alamo Draft House
movie theater. At quarter end, the Coda was 95% leased and 94.8%
occupied and the two buildings that comprise the Chase were 90.69%
leased and 92.49% occupied. In total, at quarter end, Bryant
Street’s 487 residential units were 92.2% leased and 93.2%
occupied. Its commercial space was 95.9% leased and 79.1% occupied
at quarter end.
- Lease-up is
underway at The Verge, and at quarter end, the building was 68.6%
leased and 43.3% occupied inclusive of 25 units licensed to
Placemaker Management for a short-term corporate rental program.
Retail at this location is 45.2% leased. This is our third
mixed-use project in the Anacostia waterfront submarket in
Washington, DC.
- .408 Jackson is
our second joint venture project in Greenville. Leasing began in
the fourth quarter of 2022 with residential units 85.9% leased and
76.2% occupied at quarter end. Retail at this location is 100%
leased and currently under construction and expected to open during
the fourth quarter of this year.
- Windlass Run,
our suburban office and retail joint venture with St. John
Properties, Inc. signed a new office lease for 12,126 square feet
bringing the office portion of the project to 78.28% leased and
61.45% occupied. Additional retail space at this site is 22.86%
leased and 13.46% occupied.
Stabilized Joint Venture Segment:
Total revenues in this segment were $5,545,000,
an increase of $120,000 versus $5,425,000 in the same period last
year. The Maren’s revenue was $2,640,000 an increase of 7.4% and
Dock 79 revenues decreased $62,000 to $2,906,000 or 2.1%. Total
operating profit in this segment was $912,000, a decrease of $7,000
versus $919,000 in the same period last year. Pro-rata net
operating income this quarter for this segment was $2,152,000, down
$248,000 or 10.3% compared to the same quarter last year because of
the sale of our 20% TIC interest in both properties to SIC,
mitigated by $223,000 in pro rata NOI from our share of the
Riverside joint venture in Greenville, SC.
At the end of June, The Maren was 92.42% leased
and 94.32% occupied. Average residential occupancy for the quarter
was 96.88%, and 39.62% of expiring leases renewed with an average
rent increase on renewals of 5.66%. The Maren is a joint venture
between the Company and MRP and SIC, in which FRP Holdings, Inc. is
the majority partner with 56.3% ownership.
Dock 79’s average residential occupancy for the
quarter was 94.75%, and at the end of the quarter, Dock 79’s
residential units were 91.48% leased and 95.41% occupied. This
quarter, 65.31% of expiring leases renewed with an average rent
increase on renewals of 3.20%. Dock 79 is a joint venture between
the Company and MRP and SIC, in which FRP Holdings, Inc. is the
majority partner with 52.8% ownership.
During the third quarter of 2022, we achieved
stabilization at our Riverside Joint Venture in Greenville, South
Carolina. At quarter end, the building was 97.0% leased with 95.5%
occupancy. Average occupancy for the quarter was 95.42% with 61.76%
of expiring leases renewing with an average rental increase of
11.96%. Riverside is a joint venture with Woodfield Development and
the Company owns 40% of the venture.
Six Months Operational Highlights
(compared to the same period last year)
- 24.5% increase
in pro-rata NOI ($14.60 million vs $11.73 million)
- Mining
Royalties increased 23.3%; 10.1% increase in royalties per
ton
- 42.2% increase
in Asset Management revenue; 39.2% increase in Asset Management
NOI
Six Months Consolidated Results of
Operations
Net income for the first six months of 2023 was
$1,163,000 or $.12 per share versus $1,329,000 or $.14 per share in
the same period last year. The first six months of 2023 was
impacted by the following items:
- Operating
profit increased $2,191,000 compared to the same period last year
due to improved revenues and profits in all four segments.
- Management company indirect
increased $300,000 due to merit increases and new hires along with
recruiting costs.
- Interest
expense increased $658,000 compared to the same period last year
due to less capitalized interest. We capitalized less interest
because of fewer in-house and joint venture projects under
development compared to last year.
- Interest income
increased $3,489,000 due primarily to an increase in interest
earned on cash equivalents and increased income from our lending
ventures.
- Equity in loss
of Joint Ventures increased $4,302,000 primarily due to losses
during lease up at The Verge and .408 Jackson.
- The first six
months of 2022 included a $733,000 gain on sales of excess property
at Brooksville.
Six Months Segment Operating
Results
Asset Management Segment:
Total revenues in this segment were $2,490,000,
up $739,000 or 42.2%, over the same period last year. Operating
profit was $705,000, up $363,000 from $342,000 in the same period
last year. Revenues and operating profit are up partly because of
rent growth at Cranberry Run, but primarily because of full
occupancy at 1865 and 1841 62nd Street and the addition of 1941
62nd Street to this segment in March 2023. Net operating income in
this segment was $1,630,000, up $459,000 or 39.2% compared to the
same period last year.
Mining Royalty Lands Segment:
Total revenues in this segment were $6,546,000
versus $5,308,000 in the same period last year. Total operating
profit in this segment was $5,522,000, an increase of $1,083,000
versus $4,439,000 in the same period last year. This increase is
the result of the additional royalties from the acquisition in
Astatula, Florida, which we completed at the beginning of the
second quarter 2022, as well as increases in revenue at nearly
every active location. Net Operating Income in this segment was
$6,273,000, up $1,236,000 or 25% compared to the same period last
year.
Stabilized Joint Venture Segment:
In the fourth quarter of 2022, as part of our
new partnership with Steuart Investment Company and MidAtlantic
Realty Partners, we sold a 20% ownership interest in a
tenancy-in-common (TIC) of Dock 79 and The Maren for $65.3 million,
$44.5 million attributable to the Company, placing a combined
valuation of the two buildings at $326.5 million.
Total revenues in this segment were $10,821,000,
an increase of $336,000 versus $10,485,000 in the same period last
year. The Maren’s revenue was $5,231,000, an increase of 7.5% and
Dock 79 revenues decreased $29,000 to $5,591,000 or .5%. Total
operating profit in this segment was $1,716,000, an increase of
$431,000 versus $1,285,000 in the same period last year. Pro-rata
net operating income for this segment was $4,174,000, down $364,000
or 8.0% compared to the same period last year because of the sale
of our 20% TIC interest in both properties to SIC, mitigated by
$445,000 in pro rata NOI from our share of the Riverside joint
venture.
At the end of June, The Maren was 92.42% leased
and 94.32% occupied. Average residential occupancy for the first
six months of 2023 was 96.37%, and 43.53% of expiring leases
renewed with an average rent increase on renewals of 6.64%. The
Maren is a joint venture between the Company and MRP and SIC, in
which FRP Holdings, Inc. is the majority partner with 56.3%
ownership.
Dock 79’s average residential occupancy for the
first six months of 2023 was 93.77%, and at the end of the quarter,
Dock 79’s residential units were 91.48% leased and 95.41% occupied.
Through the first six months of the year, 65.22% of expiring leases
renewed with an average rent increase on renewals of 3.74%. Dock 79
is a joint venture between the Company and MRP and SIC, in which
FRP Holdings, Inc. is the majority partner with 52.8%
ownership.
During the third quarter of 2022, we achieved
stabilization at our Riverside Joint Venture in Greenville, South
Carolina. At end of June, the building was 97.0% leased with 95.5%
occupancy. Average occupancy for the first six months of 2023 was
94.92% with 58.73% of expiring leases renewing with an average
rental increase of 11.76%. Riverside is a joint venture with
Woodfield Development and the Company owns 40% of the venture.
Summary and Outlook
Royalty revenue for this quarter was up 13% over
the same period last year, and royalty revenue for the first six
months is up 23%. The last three quarters have been the three
highest revenue quarters in this segment’s history. Mining royalty
revenue for the last twelve months is $11.92 million, a 21%
increase over the same period last year, and the segment’s highest
revenue total over any twelve-month period.
In the Stabilized Joint Venture segment,
pro-rata NOI is down for the segment for both the quarter and the
first six months, which is to be expected after selling 20% of our
share of Dock 79 and The Maren to SIC. NOI for the two projects as
a whole increased 2.56% ($6,841,000 vs $6,670,000) for the first
six months compared to the same period last year. After taking a
dip in the first quarter, average occupancy at Dock 79 is back
where we expect it to be (94.75%). The effort to get it back to
where it should be is largely responsible for the flattening in
rental increases (3.20% in the second quarter vs 4.52% in the first
quarter) as well as the 3% loss on trade-outs. The Maren maintained
a strong average occupancy this quarter (96.88%), though renewal
rates (39.62%), increases (5.66%), and trade outs (6.0%) were
slightly below what we’ve achieved in the past.
Riverside in Greenville (which was added to this segment in the
third quarter of last year) has maintained strong occupancy (95.42%
this quarter) post stabilization. The renewal rate for the first
six months (58.73%) is good, but the average increase on renewals
of 11.76% is exceptional. These metrics continue to reinforce our
faith in this market as well as the quality of the asset. Our
pro-rata share of NOI at Riverside this quarter was $223,000 and
$445,000 for the first six months.
In our Asset Management Segment, occupancy and
our overall square-footage have increased since the second quarter
of 2022, leading to a 39.2% increase in NOI for the first six
months compared to the same period last year. We are 95.6% leased
and occupied on 548,785 square feet compared to 84.3% occupied on
447,035 square feet at the end of the second quarter of 2022.
Inflation and the upward pressure on interest
rates, while potentially softening, remain an obstacle for any
developer. We have benefitted from the effect of these forces on
rents and royalties, but the compression of future margins from
hard costs and financing is a real problem for development. In
(relatively) less capital-intensive projects like warehouse
construction, this situation is potentially beneficial, because we
can use our cash on hand to finance construction on an all equity
basis and develop in-demand industrial product while the interest
rates on construction loans keep most development on the sidelines.
But in the instance of multi-family development, where a
construction loan is an absolute necessity, we will in all
likelihood sit tight for the time being. In regards to the first
phase of our partnership with SIC and MRP, we will continue to
pursue entitlements and all work required to prepare the project
for development, but will delay vertical construction until the
lending markets soften. As we mentioned last quarter, we have a
long-term vision for the company, and we’re not going to rush into
anything and take on additional development risk if market
conditions prevent us from making a reasonable return. We still
have the utmost confidence in our assets and the markets in which
they thrive. To that end, this past quarter we repurchased 18,340
shares at average cost of $54.52 per share.
We would like to remind our investors that we
are holding an Investor Day on October 11, 2023 in Washington D.C.
Investor Day presentations will begin at 10:00 A.M. EDT at Dock 79
and will be followed by a Q&A session. The event will feature
presentations from its executive management team. For information
on the event and to RSVP, please email
InvestorDay@frpdev.com. A live webcast and presentation
materials will be available to all interested parties at
https://www.frpdev.com/investor-relations/. For those unable to
join the live webcast, a replay will be available on our website
shortly after the event.
Conference Call
The Company will host a conference call on
Thursday, August 10, 2023 at 9:30 a.m. (EDT). Analysts,
stockholders and other interested parties may access the
teleconference live by calling 1- 800-274-8461 (passcode 40104)
within the United States. International callers may dial
1-203-518-9814 (passcode 40104). Audio replay will be available
until August 24, 2023 by dialing 1-888-562-2817 (no passcode
required) within the United States. International callers may
dial 1-402-220-7354. An audio replay will also be available on the
Company’s investor relations page
(https://www.frpdev.com/investor-relations/) following the
call.
Investors are cautioned that any statements in
this press release which relate to the future are, by their nature,
subject to risks and uncertainties that could cause actual results
and events to differ materially from those indicated in such
forward-looking statements. These include, but are not limited to:
the possibility that we may be unable to find appropriate
investment opportunities; levels of construction activity in the
markets served by our mining properties; demand for flexible
warehouse/office facilities in the Baltimore-Washington-Northern
Virginia area; demand for apartments in Washington D.C. and
Greenville, South Carolina; our ability to obtain zoning and
entitlements necessary for property development; the impact of
lending and capital market conditions on our liquidity; our ability
to finance projects or repay our debt; general real estate
investment and development risks; vacancies in our properties;
risks associated with developing and managing properties in
partnership with others; competition; our ability to renew leases
or re-lease spaces as leases expire; illiquidity of real estate
investments; bankruptcy or defaults of tenants; the impact of
restrictions imposed by our credit facility; the level and
volatility of interest rates; environmental liabilities; inflation
risks; cybersecurity risks; as well as other risks listed from time
to time in our SEC filings; including but not limited to; our
annual and quarterly reports. We have no obligation to revise or
update any forward-looking statements, other than as imposed by
law, as a result of future events or new information. Readers are
cautioned not to place undue reliance on such forward-looking
statements.
FRP Holdings, Inc. is a holding company engaged
in the real estate business, namely (i) leasing and management of
commercial properties owned by the Company, (ii) leasing and
management of mining royalty land owned by the Company, (iii) real
property acquisition, entitlement, development and construction
primarily for apartment, retail, warehouse, and office, (iv)
leasing and management of a residential apartment building.
|
FRP HOLDINGS, INC. AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF INCOME |
|
(In thousands except per share amounts) |
|
(Unaudited) |
|
|
|
|
THREE MONTHS ENDED |
|
SIX MONTHS ENDED |
|
|
JUNE 30, |
|
JUNE 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
$ |
7,432 |
|
|
|
6,745 |
|
|
|
14,264 |
|
|
|
13,027 |
|
|
Mining lands lease revenue |
|
3,264 |
|
|
|
2,883 |
|
|
|
6,546 |
|
|
|
5,308 |
|
| Total Revenues |
|
10,696 |
|
|
|
9,628 |
|
|
|
20,810 |
|
|
|
18,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
2,819 |
|
|
|
2,868 |
|
|
|
5,599 |
|
|
|
5,766 |
|
|
Operating expenses |
|
1,822 |
|
|
|
1,541 |
|
|
|
3,562 |
|
|
|
3,349 |
|
|
Property taxes |
|
879 |
|
|
|
1,041 |
|
|
|
1,826 |
|
|
|
2,069 |
|
|
Management company indirect |
|
1,040 |
|
|
|
805 |
|
|
|
1,879 |
|
|
|
1,579 |
|
|
Corporate expenses |
|
1,369 |
|
|
|
1,307 |
|
|
|
2,323 |
|
|
|
2,142 |
|
| Total cost of operations |
|
7,929 |
|
|
|
7,562 |
|
|
|
15,189 |
|
|
|
14,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total operating
profit |
|
2,767 |
|
|
|
2,066 |
|
|
|
5,621 |
|
|
|
3,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income |
|
3,125 |
|
|
|
1,120 |
|
|
|
5,507 |
|
|
|
2,018 |
|
| Interest expense |
|
(1,129 |
) |
|
|
(739 |
) |
|
|
(2,135 |
) |
|
|
(1,477 |
) |
| Equity in loss of joint
ventures |
|
(4,047 |
) |
|
|
(1,766 |
) |
|
|
(7,672 |
) |
|
|
(3,370 |
) |
| Gain (loss) on sale of real
estate |
|
(2 |
) |
|
|
— |
|
|
|
8 |
|
|
|
733 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income
taxes |
|
714 |
|
|
|
681 |
|
|
|
1,329 |
|
|
|
1,334 |
|
| Provision for (benefit from)
income taxes |
|
222 |
|
|
|
99 |
|
|
|
431 |
|
|
|
348 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
492 |
|
|
|
582 |
|
|
|
898 |
|
|
|
986 |
|
| Loss attributable to
noncontrolling interest |
|
(106 |
) |
|
|
(75 |
) |
|
|
(265 |
) |
|
|
(343 |
) |
| Net income
attributable to the Company |
$ |
598 |
|
|
|
657 |
|
|
|
1,163 |
|
|
|
1,329 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to the Company- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.06 |
|
|
|
0.07 |
|
|
|
0.12 |
|
|
|
0.14 |
|
|
Diluted |
$ |
0.06 |
|
|
|
0.07 |
|
|
|
0.12 |
|
|
|
0.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of
shares (in thousands) used in computing: |
|
|
|
|
|
|
|
|
|
|
|
|
-basic earnings per common share |
|
9,432 |
|
|
|
9,384 |
|
|
|
9,424 |
|
|
|
9,375 |
|
|
-diluted earnings per common share |
|
9,466 |
|
|
|
9,424 |
|
|
|
9,463 |
|
|
|
9,416 |
|
|
FRP HOLDINGS, INC. AND SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(Unaudited) (In thousands, except share data) |
| |
|
|
|
| |
June 30 |
|
December 31 |
| Assets: |
2023 |
|
2022 |
|
Real estate investments at cost: |
|
|
|
|
|
|
|
| Land |
$ |
141,578 |
|
|
|
141,579 |
|
| Buildings and
improvements |
|
282,070 |
|
|
|
270,579 |
|
| Projects under
construction |
|
2,667 |
|
|
|
12,208 |
|
|
Total investments in properties |
|
426,315 |
|
|
|
424,366 |
|
| Less accumulated depreciation
and depletion |
|
62,720 |
|
|
|
57,208 |
|
|
Net investments in properties |
|
363,595 |
|
|
|
367,158 |
|
| |
|
|
|
|
|
|
|
| Real estate held for
investment, at cost |
|
10,392 |
|
|
|
10,182 |
|
| Investments in joint
ventures |
|
152,587 |
|
|
|
140,525 |
|
|
Net real estate investments |
|
526,574 |
|
|
|
517,865 |
|
| |
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
166,537 |
|
|
|
177,497 |
|
| Cash held in escrow |
|
823 |
|
|
|
797 |
|
| Accounts receivable, net |
|
1,472 |
|
|
|
1,166 |
|
| Unrealized rents |
|
1,299 |
|
|
|
856 |
|
| Deferred costs |
|
2,620 |
|
|
|
2,343 |
|
| Other assets |
|
571 |
|
|
|
560 |
|
| Total assets |
$ |
699,896 |
|
|
|
701,084 |
|
| |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
| Secured notes payable |
$ |
178,631 |
|
|
|
178,557 |
|
| Accounts payable and accrued
liabilities |
|
3,153 |
|
|
|
5,971 |
|
| Other liabilities |
|
1,886 |
|
|
|
1,886 |
|
| Federal and state income taxes
payable |
|
186 |
|
|
|
18 |
|
| Deferred revenue |
|
891 |
|
|
|
259 |
|
| Deferred income taxes |
|
67,903 |
|
|
|
67,960 |
|
| Deferred compensation |
|
1,381 |
|
|
|
1,354 |
|
| Tenant security deposits |
|
873 |
|
|
|
868 |
|
|
Total liabilities |
|
254,904 |
|
|
|
256,873 |
|
| |
|
|
|
|
|
|
|
| Commitments and
contingencies |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Equity: |
|
|
|
|
|
|
|
| Common stock, $.10 par value
25,000,000 shares authorized, 9,495,673 and 9,459,686 shares issued
and outstanding, respectively |
|
950 |
|
|
|
946 |
|
| Capital in excess of par
value |
|
67,028 |
|
|
|
65,158 |
|
| Retained earnings |
|
342,610 |
|
|
|
342,317 |
|
| Accumulated other
comprehensive loss, net |
|
(712 |
) |
|
|
(1,276 |
) |
|
Total shareholders’ equity |
|
409,876 |
|
|
|
407,145 |
|
| Noncontrolling interest |
|
35,116 |
|
|
|
37,066 |
|
|
Total equity |
|
444,992 |
|
|
|
444,211 |
|
| Total liabilities and
equity |
$ |
699,896 |
|
|
|
701,084 |
|
Asset Management
Segment:
| |
Three months ended June 30 |
|
|
|
|
| (dollars in thousands) |
2023 |
|
% |
|
2022 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
$ |
1,420 |
|
|
100.0 |
% |
|
912 |
|
|
100.0 |
% |
|
508 |
|
|
55.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and
amortization |
|
359 |
|
|
25.3 |
% |
|
230 |
|
|
25.2 |
% |
|
129 |
|
|
56.1 |
% |
| Operating expenses |
|
176 |
|
|
12.4 |
% |
|
111 |
|
|
12.2 |
% |
|
65 |
|
|
58.6 |
% |
| Property taxes |
|
63 |
|
|
4.4 |
% |
|
52 |
|
|
5.7 |
% |
|
11 |
|
|
21.2 |
% |
| Management company
indirect |
|
141 |
|
|
9.9 |
% |
|
100 |
|
|
10.9 |
% |
|
41 |
|
|
41.0 |
% |
| Corporate expense |
|
271 |
|
|
19.1 |
% |
|
225 |
|
|
24.7 |
% |
|
46 |
|
|
20.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
1,010 |
|
|
71.1 |
% |
|
718 |
|
|
78.7 |
% |
|
292 |
|
|
40.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit |
$ |
410 |
|
|
28.9 |
% |
|
194 |
|
|
21.3 |
% |
|
216 |
|
|
111.3 |
% |
Mining Royalty Lands
Segment:
| |
Three months ended June 30 |
|
|
|
|
| (dollars in thousands) |
2023 |
|
% |
|
2022 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Mining lands lease revenue |
$ |
3,264 |
|
|
100.0 |
% |
|
2,883 |
|
|
100.0 |
% |
|
381 |
|
|
13.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and
amortization |
|
151 |
|
|
4.6 |
% |
|
189 |
|
|
6.6 |
% |
|
(38 |
) |
|
-20.1 |
% |
| Operating expenses |
|
16 |
|
|
0.5 |
% |
|
17 |
|
|
0.6 |
% |
|
(1 |
) |
|
-5.9 |
% |
| Property taxes |
|
74 |
|
|
2.3 |
% |
|
69 |
|
|
2.4 |
% |
|
5 |
|
|
7.2 |
% |
| Management company
indirect |
|
137 |
|
|
4.2 |
% |
|
110 |
|
|
3.8 |
% |
|
27 |
|
|
24.5 |
% |
| Corporate expense |
|
154 |
|
|
4.7 |
% |
|
148 |
|
|
5.1 |
% |
|
6 |
|
|
4.1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
532 |
|
|
16.3 |
% |
|
533 |
|
|
18.5 |
% |
|
(1 |
) |
|
-0.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit |
$ |
2,732 |
|
|
83.7 |
% |
|
2,350 |
|
|
81.5 |
% |
|
382 |
|
|
16.3 |
% |
Development
Segment:
| |
Three months ended June 30 |
| (dollars in thousands) |
2023 |
|
2022 |
|
Change |
| |
|
|
|
|
|
|
Lease revenue |
$ |
467 |
|
|
408 |
|
|
59 |
|
| |
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and
amortization |
|
41 |
|
|
47 |
|
|
(6 |
) |
| Operating expenses |
|
73 |
|
|
80 |
|
|
(7 |
) |
| Property taxes |
|
179 |
|
|
356 |
|
|
(177 |
) |
| Management company
indirect |
|
646 |
|
|
506 |
|
|
140 |
|
| Corporate expense |
|
815 |
|
|
816 |
|
|
(1 |
) |
| |
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
1,754 |
|
|
1,805 |
|
|
(51 |
) |
| |
|
|
|
|
|
|
|
|
|
| Operating loss |
$ |
(1,287 |
) |
|
(1,397 |
) |
|
110 |
|
Stabilized Joint Venture
Segment:
| |
Three months ended June 30 |
|
|
|
|
| (dollars in thousands) |
2023 |
|
% |
|
2022 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
$ |
5,545 |
|
|
100.0 |
% |
|
5,425 |
|
|
100.0 |
% |
|
120 |
|
|
2.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and
amortization |
|
2,268 |
|
|
40.9 |
% |
|
2,402 |
|
|
44.3 |
% |
|
(134 |
) |
|
-5.6 |
% |
| Operating expenses |
|
1,557 |
|
|
28.1 |
% |
|
1,333 |
|
|
24.6 |
% |
|
224 |
|
|
16.8 |
% |
| Property taxes |
|
563 |
|
|
10.2 |
% |
|
564 |
|
|
10.4 |
% |
|
(1 |
) |
|
-0.2 |
% |
| Management company
indirect |
|
116 |
|
|
2.1 |
% |
|
89 |
|
|
1.6 |
% |
|
27 |
|
|
30.3 |
% |
| Corporate expense |
|
129 |
|
|
2.3 |
% |
|
118 |
|
|
2.2 |
% |
|
11 |
|
|
9.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
4,633 |
|
|
83.6 |
% |
|
4,506 |
|
|
83.1 |
% |
|
127 |
|
|
2.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit |
$ |
912 |
|
|
16.4 |
% |
|
919 |
|
|
16.9 |
% |
|
(7 |
) |
|
-0.8 |
% |
Asset Management
Segment:
| |
Six months ended June 30 |
|
|
|
|
| (dollars in thousands) |
2023 |
|
% |
|
2022 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
$ |
2,490 |
|
|
100.0 |
% |
|
1,751 |
|
|
100.0 |
% |
|
739 |
|
|
42.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and
amortization |
|
637 |
|
|
25.6 |
% |
|
464 |
|
|
26.5 |
% |
|
173 |
|
|
37.3 |
% |
| Operating expenses |
|
317 |
|
|
12.7 |
% |
|
279 |
|
|
15.9 |
% |
|
38 |
|
|
13.6 |
% |
| Property taxes |
|
123 |
|
|
4.9 |
% |
|
105 |
|
|
6.0 |
% |
|
18 |
|
|
17.1 |
% |
| Management company
indirect |
|
255 |
|
|
10.3 |
% |
|
192 |
|
|
11.0 |
% |
|
63 |
|
|
32.8 |
% |
| Corporate expense |
|
453 |
|
|
18.2 |
% |
|
369 |
|
|
21.1 |
% |
|
84 |
|
|
22.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
1,785 |
|
|
71.7 |
% |
|
1,409 |
|
|
80.5 |
% |
|
376 |
|
|
26.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit |
$ |
705 |
|
|
28.3 |
% |
|
342 |
|
|
19.5 |
% |
|
363 |
|
|
106.1 |
% |
Mining Royalty Lands
Segment:
| |
Six months ended June 30 |
|
|
|
|
| (dollars in thousands) |
2023 |
|
% |
|
2022 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Mining lands lease revenue |
$ |
6,546 |
|
|
100.0 |
% |
|
5,308 |
|
|
100.0 |
% |
|
1,238 |
|
|
23.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and
amortization |
|
334 |
|
|
5.1 |
% |
|
244 |
|
|
4.6 |
% |
|
90 |
|
|
36.9 |
% |
| Operating expenses |
|
33 |
|
|
0.5 |
% |
|
32 |
|
|
0.6 |
% |
|
1 |
|
|
3.1 |
% |
| Property taxes |
|
143 |
|
|
2.2 |
% |
|
134 |
|
|
2.5 |
% |
|
9 |
|
|
6.7 |
% |
| Management company
indirect |
|
253 |
|
|
3.8 |
% |
|
217 |
|
|
4.1 |
% |
|
36 |
|
|
16.6 |
% |
| Corporate expense |
|
261 |
|
|
4.0 |
% |
|
242 |
|
|
4.6 |
% |
|
19 |
|
|
7.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
1,024 |
|
|
15.6 |
% |
|
869 |
|
|
16.4 |
% |
|
155 |
|
|
17.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit |
$ |
5,522 |
|
|
84.4 |
% |
|
4,439 |
|
|
83.6 |
% |
|
1,083 |
|
|
24.4 |
% |
Development
Segment:
| |
Six months ended June 30 |
| (dollars in thousands) |
2023 |
|
2022 |
|
Change |
| |
|
|
|
|
|
|
Lease revenue |
$ |
953 |
|
|
791 |
|
|
162 |
|
| |
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and
amortization |
|
96 |
|
|
92 |
|
|
4 |
|
| Operating expenses |
|
167 |
|
|
291 |
|
|
(124 |
) |
| Property taxes |
|
466 |
|
|
711 |
|
|
(245 |
) |
| Management company
indirect |
|
1,157 |
|
|
996 |
|
|
161 |
|
| Corporate expense |
|
1,389 |
|
|
1,337 |
|
|
52 |
|
| |
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
3,275 |
|
|
3,427 |
|
|
(152 |
) |
| |
|
|
|
|
|
|
|
|
|
| Operating loss |
$ |
(2,322 |
) |
|
(2,636 |
) |
|
314 |
|
Stabilized Joint Venture
Segment:
| |
Six months ended June 30 |
|
|
|
|
| (dollars in thousands) |
2023 |
|
% |
|
2022 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
$ |
10,821 |
|
|
100.0 |
% |
|
10,485 |
|
|
100.0 |
% |
|
336 |
|
|
3.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and
amortization |
|
4,532 |
|
|
41.9 |
% |
|
4,966 |
|
|
47.4 |
% |
|
(434 |
) |
|
-8.7 |
% |
| Operating expenses |
|
3,045 |
|
|
28.1 |
% |
|
2,747 |
|
|
26.2 |
% |
|
298 |
|
|
10.8 |
% |
| Property taxes |
|
1,094 |
|
|
10.1 |
% |
|
1,119 |
|
|
10.7 |
% |
|
(25 |
) |
|
-2.2 |
% |
| Management company
indirect |
|
214 |
|
|
2.0 |
% |
|
174 |
|
|
1.6 |
% |
|
40 |
|
|
23.0 |
% |
| Corporate expense |
|
220 |
|
|
2.0 |
% |
|
194 |
|
|
1.8 |
% |
|
26 |
|
|
13.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
9,105 |
|
|
84.1 |
% |
|
9,200 |
|
|
87.7 |
% |
|
(95 |
) |
|
-1.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit |
$ |
1,716 |
|
|
15.9 |
% |
|
1,285 |
|
|
12.3 |
% |
|
431 |
|
|
33.5 |
% |
Non-GAAP Financial
Measures.
To supplement the financial results presented in
accordance with GAAP, FRP presents certain non-GAAP financial
measures within the meaning of Regulation G promulgated by the
Securities and Exchange Commission. We believe these non-GAAP
measures provide useful information to our Board of Directors,
management and investors regarding certain trends relating to our
financial condition and results of operations. Our management uses
these non-GAAP measures to compare our performance to that of prior
periods for trend analyses, purposes of determining management
incentive compensation and budgeting, forecasting and planning
purposes. We provide Pro-rata net operating income (NOI) because we
believe it assists investors and analysts in estimating our
economic interest in our consolidated and unconsolidated
partnerships, when read in conjunction with our reported results
under GAAP. This measure is not, and should not be viewed as, a
substitute for GAAP financial measures.
| Pro-rata Net Operating Income
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
| Six months ended 06/30/23 (in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Stabilized |
|
|
|
|
|
|
| |
Asset |
|
|
|
Joint |
|
Mining |
|
Unallocated |
|
FRP |
| |
Management |
|
Development |
|
Venture |
|
Royalties |
|
Corporate |
|
Holdings |
| |
Segment |
|
Segment |
|
Segment |
|
Segment |
|
Expenses |
|
Totals |
|
Net Income (loss) |
$ |
513 |
|
|
(5,257 |
) |
|
(509 |
) |
|
4,018 |
|
|
2,133 |
|
|
898 |
|
| Income Tax Allocation |
|
190 |
|
|
(1,950 |
) |
|
(90 |
) |
|
1,490 |
|
|
791 |
|
|
431 |
|
| Income (loss) before
income taxes |
|
703 |
|
|
(7,207 |
) |
|
(599 |
) |
|
5,508 |
|
|
2,924 |
|
|
1,329 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
420 |
|
|
— |
|
|
— |
|
|
97 |
|
|
— |
|
|
517 |
|
|
Gain on sale of real estate |
|
— |
|
|
— |
|
|
— |
|
|
10 |
|
|
— |
|
|
10 |
|
|
Interest income |
|
— |
|
|
2,561 |
|
|
— |
|
|
— |
|
|
2,946 |
|
|
5,507 |
|
| Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
— |
|
|
— |
|
|
100 |
|
|
— |
|
|
— |
|
|
100 |
|
|
Loss on sale of real estate |
|
2 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
Equity in loss of Joint Ventures |
|
— |
|
|
7,446 |
|
|
202 |
|
|
24 |
|
|
— |
|
|
7,672 |
|
|
Professional fees - other |
|
— |
|
|
— |
|
|
59 |
|
|
— |
|
|
— |
|
|
59 |
|
|
Interest Expense |
|
— |
|
|
— |
|
|
2,113 |
|
|
— |
|
|
22 |
|
|
2,135 |
|
|
Depreciation/Amortization |
|
637 |
|
|
96 |
|
|
4,532 |
|
|
334 |
|
|
— |
|
|
5,599 |
|
|
Management Co. Indirect |
|
255 |
|
|
1,157 |
|
|
214 |
|
|
253 |
|
|
— |
|
|
1,879 |
|
|
Allocated Corporate Expenses |
|
453 |
|
|
1,389 |
|
|
220 |
|
|
261 |
|
|
— |
|
|
2,323 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Operating Income
(loss) |
|
1,630 |
|
|
320 |
|
|
6,841 |
|
|
6,273 |
|
|
— |
|
|
15,064 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NOI of noncontrolling
interest |
|
— |
|
|
— |
|
|
(3,112 |
) |
|
— |
|
|
— |
|
|
(3,112 |
) |
| Pro-rata NOI from
unconsolidated joint ventures |
|
— |
|
|
2,205 |
|
|
445 |
|
|
— |
|
|
— |
|
|
2,650 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pro-rata net operating
income |
$ |
1,630 |
|
|
2,525 |
|
|
4,174 |
|
|
6,273 |
|
|
— |
|
|
14,602 |
|
| Pro-rata Net Operating Income
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
| Six months ended 06/30/22 (in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Stabilized |
|
|
|
|
|
|
| |
Asset |
|
|
|
Joint |
|
Mining |
|
Unallocated |
|
FRP |
| |
Management |
|
Development |
|
Venture |
|
Royalties |
|
Corporate |
|
Holdings |
| |
Segment |
|
Segment |
|
Segment |
|
Segment |
|
Expenses |
|
Totals |
|
Net Income (loss) |
$ |
249 |
|
|
(3,351 |
) |
|
(92 |
) |
|
3,758 |
|
|
422 |
|
|
986 |
|
| Income Tax Allocation |
|
93 |
|
|
(1,242 |
) |
|
92 |
|
|
1,393 |
|
|
12 |
|
|
348 |
|
| Income (loss) before
income taxes |
|
342 |
|
|
(4,593 |
) |
|
— |
|
|
5,151 |
|
|
434 |
|
|
1,334 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
196 |
|
|
— |
|
|
— |
|
|
105 |
|
|
— |
|
|
301 |
|
|
Gain on sale of real estate |
|
— |
|
|
— |
|
|
— |
|
|
733 |
|
|
— |
|
|
733 |
|
|
Equity in gain of Joint Ventures |
|
— |
|
|
— |
|
|
171 |
|
|
— |
|
|
— |
|
|
171 |
|
|
Interest income |
|
— |
|
|
1,563 |
|
|
— |
|
|
— |
|
|
455 |
|
|
2,018 |
|
| Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
— |
|
|
— |
|
|
51 |
|
|
— |
|
|
— |
|
|
51 |
|
|
Equity in loss of Joint Ventures |
|
— |
|
|
3,520 |
|
|
— |
|
|
21 |
|
|
— |
|
|
3,541 |
|
|
Interest Expense |
|
— |
|
|
— |
|
|
1,456 |
|
|
— |
|
|
21 |
|
|
1,477 |
|
|
Depreciation/Amortization |
|
464 |
|
|
92 |
|
|
4,966 |
|
|
244 |
|
|
— |
|
|
5,766 |
|
|
Management Co. Indirect |
|
192 |
|
|
996 |
|
|
174 |
|
|
217 |
|
|
— |
|
|
1,579 |
|
|
Allocated Corporate Expenses |
|
369 |
|
|
1,337 |
|
|
194 |
|
|
242 |
|
|
— |
|
|
2,142 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Operating Income
(loss) |
|
1,171 |
|
|
(211 |
) |
|
6,670 |
|
|
5,037 |
|
|
— |
|
|
12,667 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NOI of noncontrolling
interest |
|
— |
|
|
— |
|
|
(2,132 |
) |
|
— |
|
|
— |
|
|
(2,132 |
) |
| Pro-rata NOI from
unconsolidated joint ventures |
|
— |
|
|
1,192 |
|
|
— |
|
|
— |
|
|
— |
|
|
1,192 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pro-rata net operating
income |
$ |
1,171 |
|
|
981 |
|
|
4,538 |
|
|
5,037 |
|
|
— |
|
|
11,727 |
|
| Contact: |
John D. Baker
III |
|
| |
Chief Financial Officer |
904/858-9100 |
FRP (NASDAQ:FRPH)
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From Mar 2024 to Apr 2024
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From Apr 2023 to Apr 2024
