Quarterly Report (10-q)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 10-Q

_________________

(Mark One)

[X ]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

[ ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_________ to _________

Commission File Number: 001-36769

_____________________

FRP HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

_____________________

Florida		47-2449198
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

200 W. Forsyth St., 7th Floor, Jacksonville, FL		32202
(Address of principal executive offices)		(Zip Code)

904-396-5733

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [_]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [x] No [_]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [_]		Accelerated filer [x]

Non-accelerated filer [_]		Smaller reporting company [_]

Emerging growth company [_]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [_]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [_] No [x]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

	Class				Outstanding at June 30, 2018
	Common Stock, $.10 par value per share				10,046,019 shares

FRP HOLDINGS, INC.

FORM 10-Q

QUARTER ENDED JUNE 30, 2018

CONTENTS

Page No.

Preliminary Note Regarding Forward-Looking Statements		3

	Part I. Financial Information

Item 1.	Financial Statements
	Consolidated Balance Sheets	4
	Consolidated Statements of Income	5
	Consolidated Statements of Comprehensive Income	6
	Consolidated Statements of Cash Flows	7
	Condensed Notes to Consolidated Financial Statements	8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18

Item 3.	Quantitative and Qualitative Disclosures about Market Risks	32

Item 4.	Controls and Procedures	32

	Part II. Other Information

Item 1A.	Risk Factors	33

Item 2.	Purchase of Equity Securities by the Issuer	33

Item 6.	Exhibits	33

Signatures		34

Exhibit 31	Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	36

Exhibit 32	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	39

Preliminary Note Regarding Forward-Looking Statements.

This Quarterly Report on Form 10-Q, together with other statements and information publicly disseminated by us, contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words or phrases “anticipate,” “estimate,” ”believe,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and similar expressions identify forward-looking statements. Such statements reflect management’s current views with respect to financial results related to future events and are based on assumptions and expectations that may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial or otherwise, may differ, perhaps materially, from the results discussed in the forward-looking statements. Risk factors discussed in Item 1A of this Form 10-Q and other factors that might cause differences, some of which could be material, include, but are not limited to; the possibility that the Sale Transaction may adversely affect our remaining business; the possibility that we may be unable to find appropriate reinvestment opportunities for the proceeds from the Sale Transaction; 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., 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.

These forward-looking statements are made as of the date hereof based on management’s current expectations, and the Company does not undertake an obligation to update such statements, whether as a result of new information, future events or otherwise. Additional information regarding these and other risk factors may be found in the Company’s other filings made from time to time with the Securities and Exchange Commission.

PART I. FINANCIAL INFORMATION, ITEM 1. FINANCIAL STATEMENTS

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited) (In thousands, except share data)

	June 30		December 31
Assets:	2018		2017
Real estate investments at cost:
Land	$	83,709		87,235
Buildings and improvements		146,580		147,670
Projects under construction		2,028		1,764
Total investments in properties		232,317		236,669
Less accumulated depreciation and depletion		28,446		26,755
Net investments in properties		203,871		209,914

Real estate held for investment, at cost		7,176		7,176
Investments in joint ventures		22,616		13,406
Net real estate investments		233,663		230,496

Cash and cash equivalents		32,849		4,524
Cash held in escrow		278,573		333
Accounts receivable, net		648		615
Federal and state income taxes receivable		—		2,962
Unrealized rents		595		223
Deferred costs		1,228		2,708
Other assets		178		179
Assets of discontinued operations		2,210		176,694
Total assets	$	549,944		418,734

Liabilities:
Secured notes payable, current portion	$	—		125
Secured notes payable, less current portion		88,720		90,029
Accounts payable and accrued liabilities		3,072		2,081
Environmental remediation liability		1,807		2,037
Federal and state income taxes payable		728		—
Deferred revenue		26		107
Deferred income taxes		21,254		25,982
Deferred compensation		1,455		1,457
Tenant security deposits		47		54
Liabilities of discontinued operations		46,456		32,280
Total liabilities		163,565		154,152

Commitments and contingencies (Note 8)

Equity:
Common stock, $.10 par value 25,000,000 shares authorized, 10,046 019 and 10,014,667 shares issued and outstanding, respectively		1,005		1,001
Capital in excess of par value		57,324		55,636
Retained earnings		308,397		186,855
Accumulated other comprehensive income, net		38		38
Total shareholders’ equity		366,764		243,530
Noncontrolling interest MRP		19,615		21,052
Total equity		386,379		264,582
Total liabilities and shareholders’ equity	$	549,944		418,734

See accompanying notes.

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,
	2018			2017			2018			2017
Revenues:
Rental revenue	$	3,350			750			6,497			1,507
Mining Royalty and rents		2,033			1,809			3,783			3,548
Revenue – reimbursements		170			160			348			299
Total Revenues		5,553			2,719			10,628			5,354

Cost of operations:
Depreciation, depletion and amortization		2,131			273			4,529			499
Operating expenses		1,103			207			1,968			437
Property taxes		611			376			1,286			737
Management company indirect		455			307			816			611
Corporate expenses (Note 4 Related Party)		1,709			566			2,388			1,893
Total cost of operations		6,009			1,729			10,987			4,177

Total operating profit (loss)		(456	)		990			(359	)		1,177

Interest income		216			—			221			—
Interest expense		(807	)		—			(1,650	)		—
Equity in loss of joint ventures		(11	)		(806	)		(23	)		(1,577	)

Income (loss) before income taxes		(1,058	)		184			(1,811	)		(400	)
Provision for (benefit from) income taxes		(179	)		59			(239	)		(172	)
Income (loss) from continuing operations		(879	)		125			(1,572	)		(228	)

Income from discontinued operations, net		120,465			1,588			122,187			3,384

Net income		119,586			1,713			120,615			3,156
Income (loss) attributable to noncontrolling interest		(396	)		—			(927	)		—
Net income attributable to the Company	$	119,982			1,713			121,542			3,156

Earnings per common share:
Income (loss) from continuing operations-
Basic	$	(0.09	)		0.01			(0.16	)		(0.02	)
Diluted	$	(0.09	)		0.01			(0.16	)		(0.02	)
Discontinued operations-
Basic	$	12.01			0.16			12.19			0.34
Diluted	$	11.92			0.16			12.10			0.34
Net income attributable to the Company-
Basic	$	11.96			0.17			12.13			0.32
Diluted	$	11.87			0.17			12.04			0.32

Number of shares (in thousands) used in computing:
-basic earnings per common share		10,033			9,965			10,024			9,948
-diluted earnings per common share		10,109			10,038			10,099			10,019

See accompanying notes.

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands except per share amounts)

(Unaudited)

	THREE MONTHS ENDED					SIX MONTHS ENDED
	JUNE 30,					JUNE 30,
	2018			2017		2018			2017
Comprehensive income	$	119,586			1,713		120,615			3,156
Less: comprehensive loss attributable to
noncontrolling interests		(396	)		—		(927	)		—
Comprehensive income attributable to the
Company	$	119,982			1,713		121,542			3,156

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2018 AND 2017

(In thousands) (Unaudited)

		2018		2017
Cash flows from operating activities:
Net income	$	120,615		3,156
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation, depletion and amortization		4,719		569
Deferred income taxes		(4,728	)	3,992
Equity in loss of joint ventures		23		1,577
Gain on sale of equipment		(12	)	—
Income from discontinued operations, net of tax		(122,187	)	(3,384	)
Stock-based compensation		1,152		555
Net changes in operating assets and liabilities:
Accounts receivable		(33	)	(87	)
Deferred costs and other assets		(660	)	316
Accounts payable and accrued liabilities		910		(303	)
Income taxes payable and receivable		3,690		(3,813	)
Other long-term liabilities		(239	)	8
Net cash provided by operating activities of continuing operations		3,250		2,586
Net cash provided by operating activities of discontinued operations		3,765		6,400
Net cash provided by operating activities		7,015		8,986

Cash flows from investing activities:
Investments in properties		(1,419	)	(1,738	)
Investments in joint ventures		(4,671	)	(236	)
Cash held in escrow		(278,240	)	—
Proceeds from the sale of assets		12		—
Net cash used in investing activities of continuing operations		(284,318	)	(1,974	)
Net cash provided (used in) by investing activities of discontinued operations		335,996		(6,401	)
Net cash provided by (used in) investing activities		51,678		(8,375	)

Cash flows from financing activities:
Distribution to noncontrolling interest		(510	)	—
Decrease in bank overdrafts		—		(83	)
Repayment of long-term debt		(1,552	)	(59	)
Proceeds from borrowing on revolving credit facility		—		—
Payment on revolving credit facility		—		(707	)
Repurchase of company stock		—		(74	)
Exercise of employee stock options		540		2,029
Net cash provided by financing activities of continuing operations		1,522		1,106
Net cash used in financing activities of discontinued operations		(28,846	)	(1,717	)
Net cash used in financing activities		(30,368	)	(611	)

Net increase in cash and cash equivalents		28,325		—
Cash and cash equivalents at beginning of period		4,524		—
Cash and cash equivalents at end of the period	$	32,849		—

See accompanying notes.

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2018

(Unaudited)

(1) Description of Business and Basis of Presentation.

FRP Holdings, Inc. is a holding company engaged in the real estate business, namely (i) mining royalty land ownership and leasing, (ii) land acquisition, entitlement and development primarily for future warehouse/office or residential building construction, (iii) ownership, leasing, and management of a residential apartment building, and (iv) warehouse/office building ownership, leasing and management.

The accompanying consolidated financial statements include the accounts of FRP Holdings, Inc. (the “Company” or “FRP”) inclusive of our operating real estate subsidiaries, FRP Development Corp. (“Development”) and Florida Rock Properties, Inc. (”Properties”). Our investment in the Brooksville joint venture, BC FRP Realty joint venture, and RiverFront Holdings II joint venture are accounted for under the equity method of accounting (See Note 11).

Effective July 1, 2017 the Company consolidated the assets (at fair value), liabilities and operating results of our Riverfront Investment Partners I, LLC partnership (“Dock 79”) which was previously accounted for under the equity method. The ownership of Dock 79 attributable to our partner MRP Realty is reflected on our consolidated balance sheet as a noncontrolling interest. Such noncontrolling interests are reported on the Consolidated Balance Sheets within equity but separately from shareholders' equity. On the Consolidated Statements of Income, all of the revenues and expenses from Dock 79 are reported in net income, including both the amounts attributable to the Company and the noncontrolling interest. The amounts of consolidated net income attributable to the noncontrolling interest is clearly identified on the accompanying Consolidated Statements of Income.

On May 21, 2018, the Company completed the disposition of 40 industrial warehouse properties and 3 additional land parcels to an affiliate of Blackstone Real Estate Partners VIII, L.P. for $347.2 million. One warehouse property valued at $11.7 million was excluded from the sale due to the tenant exercising its right of first refusal to purchase the property. This results in disposition of all of the Company’s industrial flex/office warehouse properties and as a result, these properties have been reclassified as discontinued operations for all periods presented. The Asset Management segment will contain the remaining three office buildings on a go forward basis.

These statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q and do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (primarily consisting of normal recurring accruals) considered necessary for a fair statement of the results for the interim periods have been included. Operating results for the six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. The accompanying consolidated financial statements and the information included under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" should be read in conjunction with the Company's consolidated financial statements and related notes included in the Company’s Form 10-K for the year ended December 31, 2017.

(2) Recently Issued Accounting Standards. In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which requires lessees to recognize a right-to-use asset and a lease obligation for all leases. Lessees are permitted to make an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less. Additional qualitative and quantitative disclosures, including significant judgments made by management, will be required. Lessors will account for leases using an approach that is substantially equivalent to existing accounting standards. The new standard will become effective for the Company beginning with the first quarter 2019 and requires a modified retrospective transition approach and includes a number of practical expedients. Early adoption of the standard is permitted. As the Company is primarily a lessor the adoption of this guidance is not expected to have a material impact on its financial statements.

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” which replaces existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. Lease contracts with customers constitute a vast majority of our revenues and are a specific scope exception. The new standard was adopted beginning with the first quarter of 2018 in connection with our revenues not subject to leases and did not have a material impact on our financial statements.

(3) Business Segments. The Company is reporting its financial performance based on four reportable segments, Asset Management, Mining Royalty Lands, Land Development and Construction and RiverFront on the Anacostia, as described below.

The Asset Management segment owns, leases and manages warehouse/office buildings located predominately in the Baltimore/Northern Virginia/Washington, DC market area. The flex/office warehouses in the Asset Management Segment were sold and reclassified to discontinued operations leaving only three office buildings.

Through our Land Development and Construction segment, we own and are continuously monitoring for their “highest and best use” several parcels of land that are in various stages of development. Our overall strategy in this segment is to convert all of our non-income producing lands into income production through (i) an orderly process of constructing new buildings for us to own and operate or (ii) a sale to, or joint venture with, third parties.

In July 2017, Phase I (Dock 79) of the development known as RiverFront on the Anacostia in Washington, D.C., a 300,000 square foot residential apartment building developed by a joint venture between the Company and MidAtlantic Realty Partners (“MRP”), reached stabilization, meaning 90% of the individual apartments have been leased and are occupied by third party tenants. Upon reaching stabilization, the Company had, for a period of one year, the exclusive right to (i) cause the joint venture to sell the property or (ii) cause the Company’s and MRP’s percentage interests in the joint venture to be adjusted so as to take into account the value of the development at the time of stabilization. The attainment of stabilization also resulted in a change of control for accounting purposes as the veto rights of the minority shareholder lapsed and the Company became the primary beneficiary. As such, beginning July 1, 2017, the Company consolidated the assets (at current fair value), liabilities and operating results of the joint venture as a new segment called RiverFront on the Anacostia.

Operating results and certain other financial data for the Company’s business segments are as follows (in thousands):

	Three Months ended				Six Months ended
	June 30,				June 30,
	2018		2017		2018		2017
Revenues:
Asset management	$	568		553		1,149		1,151
Mining royalty lands		2,055		1,833		3,827		3,595
Land development and construction		317		333		614		608
RiverFront on the Anacostia		2,613		—		5,038		—
		5,553		2,719		10,628		5,354

Operating profit (loss):
Before corporate expenses:
Asset management	$	258		238		507		522
Mining royalty lands		1,918		1,701		3,536		3,326
Land development and construction		(630	)	(383	)	(1,007	)	(778	)
RiverFront on the Anacostia		(293	)	—		(1,007	)	—
Operating profit before corporate expenses		1,253		1,556		2,029		3,070
Corporate expenses:
Allocated to asset management		(109	)	(27	)	(112	)	(91	)
Allocated to mining royalty lands		(52	)	(28	)	(129	)	(94	)
Allocated to land development and construction		(283	)	(217	)	(702	)	(725	)
Allocated to RiverFront on the Anacostia		(95	)	—		(237	)	—
Unallocated		(1,170	)	(294	)	(1,208	)	(983	)
Total corporate expenses		(1,709	)	(566	)	(2,388	)	(1,893	)
	$	(456	)	990		(359	)	1,177

Interest expense	$	807		—		1,650		—

Depreciation, depletion and amortization:
Asset management	$	129		128		260		260
Mining royalty lands		36		35		90		74
Land development and construction		57		110		114		165
RiverFront on the Anacostia		1,909		—		4,065		—
	$	2,131		273		4,529		499
Capital expenditures:
Asset management	$	6		4		167		31
Mining royalty lands		—		—		—		—
Land development and construction		1,018		482		1,310		1,707
RiverFront on the Anacostia		185		—		(58	)	—
	$	1,209		486		1,419		1,738

		June 30,	December 31,
Identifiable net assets		2018	2017

Asset management	$	10,594	2,960
Discontinued operations		2,210	176,694
Mining royalty lands		38,606	38,656
Land development and construction		45,017	46,684
Riverfront on the Anacostia		140,257	144,386
Cash items		311,422	4,524
Unallocated corporate assets		1,838	4,830
	$	549,944	418,734

(4) Related Party Transactions. The Company is a party to a Transition Services Agreement which resulted from our January 30, 2015 spin-off of Patriot Transportation Holding, Inc. (Patriot). The Transition Services Agreement sets forth the terms on which Patriot will provide to FRP certain services that were shared prior to the Spin-off, including the services of certain shared executive officers. The boards of the respective companies amended and extended this agreement for one year effective October 1, 2017.

The consolidated statements of income reflect charges and/or allocation from Patriot for these services of $370,000 and $320,000 for the three months ended June 30, 2018 and 2017 and $729,000 and $877,000 for the six months ended June 30, 2018 and 2017, respectively. Included in the charges above are amounts recognized for corporate executive stock-based compensation expense. These charges are reflected as part of corporate expenses.

To determine these allocations between FRP and Patriot as set forth in the Transition Services Agreement, we generally employed the same methodology historically used by the Company pre Spin-off to allocate said expenses and thus we believe that the allocations to FRP are a reasonable approximation of the costs related to FRP’s operations but any such related-party transactions cannot be presumed to be carried out on an arm’s-length basis as the terms were negotiated while Patriot was still a subsidiary of FRP.

(5) Long-Term Debt. Long-term debt is summarized as follows (in thousands):

	June 30,		December 31,
	2018		2017
5.6% to 8% mortgage notes
due in installments through 2027	$	—		29,664
Riverfront permanent loan	$	88,720		88,653
		88,720		118,317
Less portion due within one year		—		4,463
	$	88,720		113,854

On May 21, 2018 in conjunction with the sale of the warehouse business the Companies mortgages notes were prepaid and the credit line with First Tennessee Bank, N.A. was terminated. Prepayment penalties of $3,420,000 were paid.

On January 30, 2015, the Company entered into a five-year credit agreement with Wells Fargo with a maximum facility amount of $20 million (the "Credit Agreement"). The Credit Agreement provides a revolving credit facility (the “Revolver”) with a $10 million sublimit available for standby letters of credit. As of June 30, 2018, there was no debt outstanding on the revolver, $2,202,000 outstanding under letters of credit and $17,798,000 available for borrowing. The letters of credit were issued to guarantee certain obligations to state agencies related to real estate development. Most of the letters of credit are irrevocable for a period of one year and typically are automatically extended for additional one-year periods. The Revolver bears interest at a rate of 1.4% over the selected LIBOR, which may change quarterly based on the Company’s ratio of Consolidated Total Debt to Consolidated Total Capital, as defined which excludes FRP RiverFront. A commitment fee of 0.15% per annum is payable quarterly on the unused portion of the commitment. The commitment fee may also change quarterly based upon the ratio described above. The credit agreement contains certain conditions and financial covenants, including a minimum $110 million tangible net worth. As of June 30, 2018, the tangible net worth covenant would have limited our ability to pay dividends or repurchase stock with borrowed funds to a maximum of $166 million combined. The Company was in compliance with all covenants as of June 30, 2018.

Effective July 1, 2017 the Company consolidated the assets (at current fair value), liabilities and operating results of our Riverfront Investment Partners I, LLC partnership (“Dock 79”) which was previously accounted for under the equity method. As such the full amount of our construction loan and secondary financing were recorded in the consolidated financial statements and described below.

Effective August 7, 2014, the Dock 79 obtained a commitment for a construction loan from a financial institution in the principal amount of $65,000,000 to fund certain development and construction costs of the Dock 79. The initial maturity date of the loan is the earlier of (i) August 7, 2018, or (ii) the date to which the loan is accelerated pursuant to certain terms as outlined in the agreement. The interest rate on the loan through the initial maturity date is based on the 2.35% over one month LIBOR. This loan was paid in full on November 17, 2017. Also effective August 7, 2014, Dock 79 partnership member EB5 Capital-Jobs Fund 8, L.P. made an initial capital contribution of $17 million in cash into an escrow account with a financial institution all of which were used for construction. Associated with the $17 million cash contribution, EB5 is entitled to earn an investment return. The investment return requires the Dock 79 to pay

interest monthly based on an annual rate of 4.95% for the first 5 years. Due to the mandatory redemption requirements associated with the EB5 financing arrangement, the related investment was classified as a liability on the balance sheets. EB5 was paid in full on November 17, 2017. Subsequent to the repayment of the investment return, EB5 is no longer a partner in the Dock 79.

On November 17, 2017, Dock 79’s construction loan and EB5 investment were refinanced by borrowing a principal sum of $90,000,000 pursuant to a Loan Agreement and Deed of Trust Note entered into with EagleBank ("Loan Documents"). The loan is secured by the Dock 79 real property and improvements, bears a fixed interest rate of 4.125% per annum and has a term of 120 months. During the first 48 months of the loan term, Dock 79 will make monthly payments of interest only, and thereafter, make monthly payments of principal and interest in equal installments based upon a 30-year amortization period. The loan is a non-recourse loan. However, all amounts due under the Loan Documents will become immediately due upon an event of default by Dock 79, such events including, without limitation, Dock 79's (i) failure to: pay, permit inspections or observe covenants under the Loan Documents, (ii) breach of representations made under the Loan Documents (iii) voluntary or involuntary bankruptcy, and (iv) dissolution, or the dissolution of the guarantor. MidAtlantic Realty Partners, LLC, an affiliate of MRP, has executed a carve-out guaranty in connection with the loan.

During the three months ended June 30, 2018 and June 30, 2017 the Company capitalized interest costs of $263,000 and $232,000, respectively. During the six months ended June 30, 2018 and June 30, 2017 the Company capitalized interest costs of $499,000 and $602,000, respectively.

(6) Earnings per Share. The following details the computations of the basic and diluted earnings per common share (in thousands, except per share amounts):

	Three Months ended				Six Months ended
	June 30,				June 30,
	2018		2017		2018		2017
Weighted average common shares
outstanding during the period
- shares used for basic
earnings per common share		10,033		9,965		10,024		9,948

Common shares issuable under
share based payment plans
which are potentially dilutive		76		73		75		71

Common shares used for diluted
earnings per common share		10,109		10,038		10,099		10,019

Net income attributable to the Company	$	119,982		1,713		121,542		3,156

Basic earnings per common share:
Basic	$	11.96		0.17		12.13		0.32
Diluted	$	11.87		0.17		12.04		0.32

For the three and six months ended June 30, 2018, no shares attributable to outstanding stock options were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For the three and six months ended June 30, 2017, 13,610 and 22,422 shares attributable to outstanding stock options were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

officers and key employees. The 2016 plan permits the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, or stock awards. The options awarded under the plans have similar characteristics. All stock options are non-qualified and expire ten years from the date of grant. Stock based compensation awarded to directors, officers and employees are exercisable immediately or become exercisable in cumulative installments of 20% or 25% at the end of each year following the date of grant. When stock options are exercised the Company issues new shares after receipt of exercise proceeds and taxes due, if any, from the grantee. The number of common shares available for future issuance was 532,217 at June 30, 2018.

The Company utilizes the Black-Scholes valuation model for estimating fair value of stock compensation for options awarded to officers and employees. Each grant is evaluated based upon assumptions at the time of grant. The assumptions were no dividend yield, expected volatility between 32% and 43%, risk-free interest rate of .6% to 4.2% and expected life of 3.0 to 7.0 years.

The dividend yield of zero is based on the fact that the Company does not pay cash dividends and has no present intention to pay cash dividends. Expected volatility is estimated based on the Company’s historical experience over a period equivalent to the expected life in years. The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate at the date of grant with a term consistent with the expected life of the options granted. The expected life calculation is based on the observed and expected time to exercise options by the employees.

As previously disclosed, Thompson S. Baker II resigned from his position as CEO and from the board of directors on March 13, 2017. In recognition of his outstanding service to the Company, the Board approved the vesting of all of Mr. Baker's outstanding FRP stock options, which expired 90 days following the termination of his employment. The vesting of Mr. Baker’s outstanding FRP options that were issued prior to the spin-off required Patriot to record modification stock compensation expense of $150,000. FRP reimbursed Patriot for this cost under the transition services agreement. The vesting of Mr. Baker’s outstanding FRP options that were issued subsequent to the spin-off required modified stock compensation expense of $41,000.

On May 21, 2018, under the 2016 Equity Incentive Plan change-in-control clause, all unvested stock options held by the Company’s named executive officers became vested and fully exercisable. Included in stock compensation expense was $402,000 for the vesting of option grants from 2016 and 2017 due to the asset disposition.

The Company recorded the following stock compensation expense in its consolidated statements of income (in thousands):

	Three Months ended				Six Months ended
	June 30,				June 30,
	2018		2017		2018		2017
Stock option grants	$	428		33		469		110
Annual director stock award		683		—		683		445
	$	1,111		33		1,152		555

A summary of changes in outstanding options is presented below (in thousands, except share and per share amounts):

				Weighted		Weighted		Weighted
	Number			Average		Average		Average
	Of			Exercise		Remaining		Grant Date
Options	Shares			Price		Term (yrs)		Fair Value(000's)
Outstanding at
January 1, 2018		174,510		$	28.70		6.0	$	1,901
Granted		—		$	—			$	—
Exercised		(19,352	)	$	27.88			$	(221	)
Outstanding at
June 30, 2018		155,158		$	28.81		5.5	$	1,680
Exercisable at
June 30, 2018		138,693		$	28.65		5.4	$	1,456
Vested during
six months ended
June 30, 2018		138,693						$	454

The aggregate intrinsic value of exercisable in-the-money options was $5,007,000 and the aggregate intrinsic value of outstanding in-the-money options was $5,577,000 based on the market closing price of $64.75 on June 29, 2018 less exercise prices.

The unrecognized compensation cost of options granted to FRP employees but not yet vested as of June 30, 2018 was $114,000, which is expected to be recognized over a weighted-average period of 2.3 years.

Gains of $576,000 were realized by option holders during the six months ended June 30, 2018. Patriot realized the tax benefits of $528,000 of these gains because these options were exercised by Patriot employees for options granted prior to the spin-off.

(8) Contingent Liabilities. Certain of the Company’s subsidiaries are involved in litigation on a number of matters and are subject to certain claims which arise in the normal course of business. The Company has retained certain self-insurance risks with respect to losses for third party liability and property damage. The liability at any point in time depends upon the relative ages and amounts of the individual open claims. In the opinion of management, none of these matters are expected to have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows.

The Company executed a letter of intent with MRP in May 2016 to develop Phase II of the Riverfront on the Anacostia project and recorded an estimated environmental remediation expense of $2.0 million for the Company’s estimated liability under the proposed agreement. The Company has no obligation to remediate any known contamination on Phases III and IV of the development until such time as it makes a commitment to commence construction on each phase. The Company's actual expense to address this issue may be materially higher or lower than the expense previously recorded depending upon the actual costs incurred.

(9) Concentrations. The mining royalty lands segment has a total of four tenants currently leasing mining locations and one lessee that accounted for 14% of the Company’s consolidated revenues during the six months ended June 30, 2018 and $274,000 of accounts receivable at June 30, 2018. The termination of these lessees’ underlying leases could have a material adverse effect on the Company. The Company places its cash and cash equivalents with First Tennessee Bank and BB&T. At times, such amounts may exceed FDIC limits.

(10) Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 means the use of quoted prices in active markets for identical assets or liabilities. Level 2 means the use of values that are derived principally from or corroborated by observable market data. Level 3 means the use of inputs are those that are unobservable and significant to the overall fair value measurement.

As of June 30, 2018 the Company had no assets or liabilities measured at fair value on a recurring or non-recurring basis. Footnote 12 describes a remeasurement to fair value of certain assets at July 1, 2017. At June 30, 2018 and 2017, the carrying amount reported in the consolidated balance sheets for cash and cash equivalents, short-term notes payable and revolving credit approximate their fair value based upon the short-term nature of these items.

The fair values of the Company’s other mortgage notes payable were estimated based on current rates available to the Company for debt of the same remaining maturities. At June 30, 2018, the carrying amount and fair value of such other long-term debt was $88,720,000 and $87,436,000, respectively. At December 31, 2017, the carrying amount and fair value of such other long-term debt was $118,317,000 and $122,271,000, respectively.

(11) Investments in Joint Ventures (Equity Method).

Brooksville. In 2006, the Company entered into a Joint Venture Agreement with Vulcan Materials Company to jointly own and develop approximately 4,300 acres of land near Brooksville, Florida. Under the terms of the joint venture, FRP contributed its fee interest in approximately 3,443 acres formerly leased to Vulcan under a long-term mining lease which had a net book value of $2,548,000. Vulcan is entitled to mine a portion of the property until 2032 and pay royalties to the Company. FRP also contributed $3,018,000 for one-half of the acquisition costs of a 288-acre contiguous parcel. Vulcan contributed 553 acres that it owned as well as its leasehold interest in the 3,443 acres that it leased from FRP and $3,018,000 for one-half of the acquisition costs of the 288-acre contiguous parcel. The joint venture is jointly controlled by Vulcan and FRP. Distributions will be made on a 50-50 basis except for royalties and depletion specifically allocated to the Company. Other income for the six months ended June 30, 2018 includes a loss of $23,000 representing the Company’s portion of the loss of this joint venture.

BC FRP Realty (Windlass Run). During the quarter ending March 2016, we entered into an agreement with a Baltimore development company (St. John Properties, Inc.) to jointly develop the remaining lands of our Windlass Run Business Park. The 50/50 partnership initially calls for FRP to combine its 25 acres (valued at $7,500,000) with St. John Properties’ adjacent 10 acres fronting on a major state highway (valued at $3,239,536) which resulted in an initial cash distribution of $2,130,232 to FRP in May, 2016. Thereafter, the venture will jointly develop the combined properties into a multi-building business park to consist of approximately 329,000 square feet of single story office space. On September 28, 2017 BC FRP Realty, LLC obtained $17,250,000 of construction financing commitments for 4 buildings through September 15, 2022 and $330,000 for one lot through September 15, 2018 from BB&T at 2.5% over LIBOR. The balance outstanding on these loans at June 30, 2018 was $5,869,000.

RiverFront Holdings II, LLC. On May 4, 2018, the Company and MRP formed a Joint Venture to develop Phase II and closed on construction financing with Eagle Bank. The Company has contributed its land with an agreed value of $16.3 million (cost basis of $4.6 million) and $4.6 million of cash. MRP contributed capital of $5.1 million to the joint venture including development costs paid prior to the formation of the joint venture and a $750,000 development fee. The loan from Eagle Bank allows draws of up to $71 million during construction at an interest rate of 3.25% over LIBOR. The loan is interest only and matures in 36 months with a 12-month extension assuming completion of construction and at least one occupancy. There is a provision for an additional 72 months extension with a 30 year amortization of principal at 2.15% over 7 year US Treasury Constant if NOI is sufficient for a 9% yield. The Company’s equity interest in the joint venture is accounted for under the equity method of accounting as MRP acts as the administrative agent of the joint venture and oversees and controls the day to day operations of the project.

Investments in Joint Ventures (in thousands):

									The
									Company's
						Total Assets	Net Loss		Share of Net
				Total		of the	of the		Loss of the
	Ownership			Investment		Partnership	Partnership		Partnership

As of June 30, 2018
Brooksville Quarry, LLC	50.00	%			7,489	14,406	(46	)	(23	)
BC FRP Realty, LLC	50.00	%			5,945	18,858	—		—
RiverFront Holdings II, LLC	80.00	%			9,182	15,267	—		—
Total			$		22,616	48,531	(46	)	(23	)

As of December 31, 2017
RiverFront Holdings I, LLC (1)	—		$		—	—	(2,019	)	(1,558	)
Brooksville Quarry, LLC	50.00	%			7,516	14,411	(80	)	(40	)
BC FRP Realty, LLC	50.00	%			5,890	15,027	—		—
Total			$		13,406	29,438	(2,099	)	(1,598	)

(1)

The Company consolidated this joint venture effective July 1, 2017 (see Footnote 12).

Income statements for the RiverFront Holdings I, LLC, prior to consolidation July 1, 2017 (in thousands):

	Three Months Ended			Six Months Ended
	June 30,			June 30,
	2017			2017
Revenues:
Rental Revenue	$	1,742			3,053
Revenue – Reimbursements		18			33
Total Revenues		1,760			3,086
Cost of operations:
Depreciation and amortization		1,095			1,958
Operating expenses		621			1,096
Property taxes		240			459
Total cost of operations		1,956			3,513
Total operating profit		(196	)		(427	)
Interest expense		(836	)		(1,592	)
Net loss of the Partnership	$	(1,032	)		(2,019	)

The amount of consolidated accumulated deficit for these joint ventures was $(2,655,000) and $(2,638,000) as of June 30, 2018 and December 31, 2017 respectively.

(12) Consolidation of RiverFront Investment Partners I, LLC. On March 30, 2012 the Company entered into a Contribution Agreement with MRP to form a joint venture to develop the first phase only of the four-phase master development known as RiverFront on the Anacostia in Washington, D.C. The purpose of the Joint Venture is to develop and own an approximately 300,000 square foot residential apartment building (including approximately 18,000 square feet of retail) on approximately 2 acres of the roughly 5.82-acre site. The joint venture, RiverFront Investment Partners I, LLC (“RiverFront I”) was formed in June 2013 as contemplated. The Company contributed land with an agreed to value of $13,500,000 (cost basis of $6,165,000) and contributed cash of $4,866,000 to the Joint Venture for a 77.14% stake in the venture. MRP contributed capital of $5,553,000 to the joint venture including development costs paid prior to formation of the joint venture. Construction commenced in October 2014, and first occupancy was in August 2016. The Company’s equity interest in the joint venture was previously accounted for under the equity method of accounting as MRP acted as the administrative agent of the joint venture and oversaw and controlled the day to day operations of the project.

In July 2017, Phase I (Dock 79) reached stabilization, meaning 90% of the individual apartments had been leased and occupied by third party tenants. Upon reaching stabilization, the Company has, for a period of one year, the exclusive right to (i) cause the joint venture to sell the property or (ii) cause the Company’s and MRP’s percentage interests in the joint venture to be adjusted so as to take into account the contractual payouts assuming a sale at the value of the development at the time of this “Conversion election”.

The attainment of stabilization resulted in a change of control for accounting purposes as the veto rights of the minority shareholder lapsed and the Company became the primary beneficiary. As such, beginning July 1, 2017, the Company consolidated the assets (at fair value), liabilities and operating results of the joint venture. This consolidation resulted in a gain on remeasurement of investment in real estate partnership of $60,196,000 of which $20,469,000 was attributed to the noncontrolling interest. In accordance with the terms of the Joint Venture agreements, the Company used the fair value amount at date of conversion and calculated an adjusted ownership under the Conversion election. As such for financial reporting purposes effective July 1, 2017 the Company ownership is based upon this substantive profit sharing arrangement and is estimated at 66.0% on a prospective basis.

	As of July 1, 2017 (in thousands)
	Riverfront			Gain on Remeasure-
	Holdings I, LLC			ment		Revised

Land	$	7,220		$	21,107		$	28,327
Building and improvements, net		81,773			34,362			116,135
Value of leases in place		—			4,727			4,727
Cash		2,295			—			2,295
Cash held in escrow		171			—			171
Accounts receivable		40			—			40
Prepaid expenses		142			—			142
Total Assets	$	91,641		$	60,196		$	151,837

Long-term Debt	$	78,587		$	—		$	78,587
Amortizable debt costs		(852	)		—			(852	)
Other liabilities		905			—			905
Equity – FRP		8,583			39,727			48,310
Equity – MRP		4,418			20,469			24,887
Total Liabilities and Capital	$	91,641		$	60,196		$	151,837

(13) Discontinued Operations.

On May 21, 2018, the Company completed the disposition of 40 industrial warehouse properties and three additional land parcels to an affiliate of Blackstone Real Estate Partners VIII, L.P. for $347.2 million. One warehouse property valued at $11.7 million was excluded from the sale due to the tenant exercising its right of first refusal to purchase the property. These properties comprised substantially all the assets of our Asset Management segment and have been reclassified as discontinued operations for all periods presented. The results of operations associated with discontinued operations for the three and six month periods ended June 30, 2018 and 2017 were as follows (in thousands):

	Three months ended						Six months ended
	June 30,						June 30,
	2018			2017			2018			2017
Revenues:
Rental revenue	$	3,394			5,472			9,412			10,998
Revenue – reimbursements		716			1,169			2,245			2,330
Total Revenues		4,110			6,641			11,657			13,328

Cost of operations:
Depreciation, depletion and amortization		1,217			1,929			3,102			3,762
Operating expenses		464			795			1,642			1,566
Property taxes		449			753			1,247			1,454
Management company indirect		812			168			990			333
Corporate expenses		655			—			1,402			—
Total cost of operations		3,597			3,645			8,383			7,115

Total operating profit		513			2,996			3,274			6,213

Interest expense		(187	)		(371	)		(587	)		(619	)
Gain on sale of buildings		164,807			—			164,807			—

Income before income taxes		165,133			2,625			167,494			5,594
Provision for income taxes		44,668			1,037			45,307			2,210

Income from discontinued operations	$	120,465			1,588			122,187			3,384

The components of the balance sheet are as follows (in thousands):

	June 30		December 31
Assets:	2018		2017
Real estate investments at cost:
Land	$	546		40,465
Buildings and improvements		3,315		186,657
Projects under construction		—		6,617
Total investments in properties		3,861		233,739
Less accumulated depreciation and depletion		2,331		68,049
Net investments in properties		1,530		165,690

Accounts receivable, net		332		405
Unrealized rents		94		4,088
Deferred costs		251		6,509
Other assets		3		2
Assets of discontinued operations	$	2,210		176,694

Liabilities:
Secured notes payable, current portion	$	—		23,825
Secured notes payable, less current portion		—		4,338
Accounts payable and accrued liabilities		189		2,289
Deferred revenue		2		967
Federal and state income taxes payable		46,228		—
Tenant security deposits		37		861
Liabilities of discontinued operations	$	46,456		32,280

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

The following discussion includes a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission to supplement the financial results as reported in accordance with GAAP. The non-GAAP financial measure discussed is net operating income (NOI). The Company uses this metric to analyze its continuing operations and to monitor, assess, and identify meaningful trends in its operating and financial performance. This measure is not, and should not be viewed as, a substitute for GAAP financial measures. Refer to “Non-GAAP Financial Measure” below in this quarterly report for a more detailed discussion, including reconciliations of this non-GAAP financial measure to its most directly comparable GAAP financial measure.

Overview - FRP Holdings, Inc. is a holding company engaged in the real estate business, namely (i) mining royalty land ownership and leasing, (ii) land acquisition, entitlement and development primarily for future warehouse/office or residential building construction, (iii) ownership, leasing, and management of a residential apartment building, and (iv) warehouse/office building ownership, leasing and management.

The Company’s operations are influenced by a number of external and internal factors. External factors include levels of economic and industrial activity in the United States and the Southeast, construction activity and costs, aggregates sales by lessees from the Company’s mining properties, interest rates, market conditions in the Baltimore/Northern Virginia/Washington DC area, and our ability to obtain zoning and entitlements necessary for property development. Internal factors include administrative costs, success in leasing efforts and construction cost management.

On May 21, 2018, the Company completed the disposition of 40 industrial warehouse properties and three additional land parcels to an affiliate of Blackstone Real Estate Partners VIII, L.P. for $347.2 million. One warehouse property valued at $11.7 million was excluded from the sale due to the tenant exercising its right of first refusal to purchase the property. These properties comprised substantially all the assets of our Asset Management segment and have been reclassified as discontinued operations for all periods presented. As of the end of the quarter, cash was $311 million, and we are currently exploring options to reinvest these proceeds into opportunities more in line with our other business segments.

Asset Management Segment.

The Asset Management segment owns, leases and manages warehouse/office buildings located predominately in the Baltimore/Northern Virginia/Washington, DC market area. We focus primarily on owning flexible type facilities that cater to the maximum number of tenant types. As most of our buildings are less than 150,000 square feet, we focus on local and regional vs. national tenants. Hands-on service provided by our in-house construction and property management teams keeps us close to our tenant base. These practices are the cornerstone of our mission to provide the highest quality product and services at competitive rates resulting in tenant satisfaction and ultimately, retention.

These assets create revenue and cash flows through tenant rental payments, lease management fees and reimbursements for building operating costs. The major cash outlays incurred in this segment are for operating expenses, real estate taxes, building repairs, lease commissions and other lease closing costs, construction of tenant improvements, capital to acquire existing operating buildings and closing costs related thereto and personnel costs of our property management team.

Management focuses on several factors to measure our success on a comparative basis in this segment. The major factors we focus on are (1) revenue growth, (2) net operating income, (3) growth in occupied square feet, (4) actual occupancy rate, (5) average annual occupied square feet, (6) average annual occupancy rate (defined as the occupied sf at the end of each month during a fiscal year divided by the number of months to date in that fiscal year as a percentage of the average number of square feet in the portfolio over that same time period), (7) growth of our portfolio (in square feet), and (8) tenant retention success rate (as a percentage of total square feet to be renewed).

Mining Royalty Lands Segment.

Our Mining Royalty Lands segment owns several properties comprising approximately 15,000 acres currently under lease for mining rents or royalties (this does not include the 4,280 acres owned in our Brooksville joint venture with Vulcan Materials). Other than one location in Virginia, all of these properties are located in Florida and Georgia. The typical lease in this segment requires the tenant to pay us a royalty based on the number of tons of mined materials sold from our property during a given fiscal year multiplied by a percentage of the average annual sales price per ton sold. As a result of this royalty payment structure, we do not bear the cost risks associated with the mining operations, however, we are subject to the cyclical nature of the construction markets in these States as both volumes and prices tend to fluctuate through those cycles. In certain locations, typically where the reserves on our property have been depleted but the tenant still has a need for the leased land, we collect a fixed annual rental amount. We believe strongly in the potential for future growth in construction in Florida, Georgia, and Virginia which would positively benefit our profitability in this segment. Our mining properties had estimated remaining reserves of 540 million tons as of December 31, 2017 after a total of 6.3 million tons were consumed in fiscal 2017.

The major expenses in this segment are comprised of collection and accounting for royalties, management’s oversight of the mining leases, land entitlement for post-mining uses and property taxes at our non-leased locations and at our Grandin location which, unlike our other leased mining locations, are not paid by the tenant. As such, our costs in this business are very low as a percentage of revenue, are relatively stable and are not affected by increases in production at our locations. Our current mining tenants include Vulcan Materials, Martin Marietta and Cemex, among others.

Additionally, these locations provide us with excellent opportunities for valuable “second lives” for these assets through proper land planning and entitlement.

Significant “2^nd life” Mining Lands:

Location	Acreage	Status
Brooksville, Fl	4,280 +/-	Development of Regional of Impact and County Land Use and Master Zoning in place for 5,800 residential unit, mixed-use development
Ft. Myers, FL	1,993 +/-	Approval in place for 105, 1 acre, waterfront residential lots after mining completed.
Gulf Hammock, Fl	1,600 +/-	Currently on the market for $4 million
Total	7,873 +/-

Land Development and Construction Segment.

Through our Land Development and Construction segment, we own and are continuously monitoring for their “highest and best use” several parcels of land that are in various stages of development. Our overall strategy in this segment is to convert all of our non-income producing lands into income production through (i) an orderly process of constructing new warehouse/office buildings for us to own and operate or (ii) a sale to, or joint venture with, third parties.

Revenues in this segment are generated predominately from land sales and interim property rents. The significant cash outlays incurred in this segment are for land acquisition costs, entitlement costs, property taxes, design and permitting, the personnel costs of our in-house management team and horizontal and vertical construction costs.

Since 1990, one of our primary strategies in this segment has been to acquire, entitle and ultimately develop commercial/industrial business parks providing 5–15 building pads which we typically convert into warehouse/office buildings. To date, our management team has converted 29 of these pads into developed buildings. Our typical practice has been to transfer these assets to the Asset Management segment on the earlier to occur of (i) commencement of rental revenue or (ii) issuance of the certificate of occupancy. We have also opportunistically sold several of these pad sites over time to third party “users”.

The remaining pad sites in our inventory today are fully entitled, located in business parks in four different submarkets in the DC/Baltimore/Northern Virginia area, and can support an additional +/- .7 million sf. of warehouse/office buildings.

Summary of Our Remaining Lot Inventory:

Location	Acreage	SF +/-	Status
Lakeside, MD	15	187,500	1 lot ready for building construction.
Windlass Run Business Park, MD	17.5 (50% Interest)	164,500 (50% Interest)	Company owns a 50% in a joint venture formed in April 2016 with St. John Properties. The joint venture owns the 35 acres and plans to develop the land into 12 office buildings for a total of 329,000 sq. ft.
Hollander 95 Business Park, MD	33	327,900	Horizontal development completed.
Total	65.5	679,900

Having sites ready for vertical construction has rewarded us in the past. It is the main reason why we were able to convert three of our finished pads at Patriot Business Park into build-to-suit opportunities in 2012, 2013 and 2014. We completed construction on a 79,550 square foot spec building at Hollander Business Park that was put into service in the third quarter of fiscal 2016. Also in the third quarter of fiscal 2016 we started construction on a 103,448 square foot building in Patriot Business Center that was placed in service in 2017. Our final building at Patriot Business Park was under construction in 2017 and completed in the second quarter of 2018. In April 2016 we entered into a joint venture

agreement to develop 12 office buildings on our remaining lots at Windlass Run and on adjacent frontage property owned by St. John Properties. We will continue to actively monitor these submarkets where we have lots ready for construction and take advantage of the opportunities presented to us.

In addition to the inventory of finished building lots, we have several other properties that were either spun-off to us from Florida Rock Industries in 1986 or acquired by us from unrelated third-parties. These properties, as a result of our “highest and best use” studies, are being prepared for income generation through sale or joint venture with third parties, and in certain cases we are leasing these properties on an interim basis for an income stream while we wait for the development market to mature.

Our strategy when selling parcels outright is to attempt to convert the proceeds into income producing real estate for our Asset Management segment through a Section 1031 tax-deferred exchange. An example of this is the Windlass Run 179 acre tract purchased for $5.2 million in 2002. When purchased, the entire parcel was zoned for commercial/industrial uses. We successfully rezoned the 109 acres for medium density residential development and on April 17, 2013, we entered into a contract to sell the residential portion of the property for $19 million. The first phase of the Windlass Run residential land was sold for $8 million and the proceeds were used in a Section 1031 exchange to acquire our Transit Business Park in 2013. Phase 2 was sold in November 2015 for $11.1 million and we used $9.9 million of the proceeds to acquire the Port Capital Building.

An example of property in this segment being developed through joint venture is Phase I of our RiverFront on the Anacostia project which was contributed to a joint venture with MRP in 2014 and is now complete as a 305 unit apartment building including 18,000 sf of ground floor retail.

Significant Investment Lands Inventory:

Location	Approx. Acreage	Status	NBV
RiverFront on the Anacostia Phases III-IV	2.5	Phase II contributed to JV and under construction.	$6,105,000
Hampstead Trade Center, MD	73	Residential conceptual design program ongoing	$7,319,000
Square 664E,on the Anacostia River in DC	2	Under lease to Vulcan Materials as a concrete batch plant through 2021 with one 5 year renewal option.	$8,251,000
Total	77.5		$21,675,000

RIVERFRONT ON THE ANACOSTIA PHASES III-IV: This property consists of 2.5 acres on the Anacostia River and is immediately adjacent to the Washington National’s baseball park in the SE Central Business District of Washington, DC. Once zoned for industrial use and under a ground lease, this property is no longer under lease and has been rezoned for the construction of approximately 860,000 square feet of “mixed-use” development in three phases. See “RiverFront on the Anacostia Segment” below for discussion on Phase I. Phases II, III and IV are slated for residential, office, and hotel/residential buildings, respectively, all with permitted first floor retail uses.

On August 24, 2015, in anticipation of commencing construction of the new Frederick Douglass bridge at a location immediately to the West of the existing bridge, the District of Columbia filed a Declaration of Taking for a total of 7,390 square feet of permanent easement and a 5,022 square foot temporary construction easement on land along the western boundary of the land that will ultimately hold Phase III and IV. Previously, the Company and the District had conceptually agreed to a land swap with no compensation that would have permitted the proposed new bridge, including construction easements, to be on property wholly owned by the District. As a result, the Planned Unit Development was designed and ultimately approved by the Zoning Commission as if the land swap would occur once the District was ready to move forward with the new bridge construction. In September 2016 the Company received $1,115,400 as settlement for the easement. The Company will continue to seek an agreement from the District that the existing bridge easement will terminate when the new bridge has been placed in service and the existing bridge has been removed. The Company’s position is that otherwise Phase IV will be adversely impacted and additional compensation or other relief will be due the Company.

HAMPSTEAD TRADE CENTER: We purchased this 118 acre tract in 2005 for $4.3 million in a Section 1031 exchange with plans of developing it as a commercial business park. The “great recession” caused us to reassess our plans for this property. As a result, Management has determined that the prudent course of action is to attempt to rezone the property for residential uses and sell the entire tract to another developer such that we can redeploy this capital into assets with more near-term income producing potential. In the fourth quarter of fiscal 2016, the Company received approval from the Town of Hampstead and has rezoned the property for residential use. We are fully engaged in the formal process of seeking PUD entitlements for this 118 acre tract.

SQUARE 664E, WASHINGTON, DC: This property sits on the Anacostia River at the base of South Capitol Street in an area named Buzzard Point, approximately 1 mile down river from our RiverFront on the Anacostia property. The Square 664E property consists of approximately 2 acres and is currently under lease to Vulcan Materials for use as a concrete batch plant. The lease terminates on August 31, 2021 and Vulcan has the option to renew for one additional period of five (5) years. In the quarter ending December 31, 2014, the District of Columbia announced that it had selected Buzzard Point for the future site of the new DC United major league soccer stadium. The selected stadium location is separated from our property by just one small industrial lot. In March 2017 reconstruction of the bulkhead was completed at a cost of $4 million in anticipation of future high-rise development.

RiverFront on the Anacostia Segment.

In 2014, approximately 2.1 acres (Phase I) of the total 5.8 acres was contributed to a joint venture owned by the Company (77%) and our partner, MRP Realty (23%), and construction commenced in October 2014 on a 305 unit residential apartment building with approximately 18,000 sq. ft. of first floor retail space. Lease up commenced in May 2016 and rent stabilization of the residential units of 90% occupied was achieved in the third quarter of 2017. Upon reaching stabilization, the Company has, for a period of one year, the exclusive right to (i) cause the joint venture to sell the property or (ii) cause the Company’s and MRP’s percentage interests in the joint venture to be adjusted so as to take into account the contractual payouts assuming a sale at the value of the development at the time of this “Conversion election”.

The attainment of stabilization also results in a change of control for accounting purposes as the veto rights of the minority shareholder lapsed and the Company became the primary beneficiary. As such, beginning July 1, 2017, the Company consolidated the assets (at current fair value based on a third-party opinion), liabilities and operating results of the joint venture. This consolidation resulted in a gain on remeasurement of investment in real estate partnership of $60,196,000 of which $20,469,000 was attributed to the noncontrolling interest. The Company used the fair value amount to calculate adjusted ownership under the Conversion election. As such for financial reporting purposes effective July 1, 2017 the Company ownership is based upon this substantive profit sharing arrangement and is estimated at 66.0% on a prospective basis.

Comparative Results of Operations for the Three months ended June 30, 2018 and 2017

Consolidated Results

	Three months ended
(dollars in thousands)	June 30,
	2018			2017			Change			%
Revenues:
Rental Revenue	$	3,350		$	750		$	2,600			346.7	%
Mining Royalty and rents		2,033			1,809			224			12.4	%
Revenue-Reimbursements		170			160			10			6.3	%
Total Revenues		5,553			2,719			2,834			104.2	%

Cost of operations:
Depreciation/Depletion/Amortization		2,131			273			1,858			680.6	%
Operating Expenses		1,103			207			896			432.9	%
Property Taxes		611			376			235			62.5	%
Mgmt company indirect		455			307			148			48.2	%
Corporate Expense		1,709			566			1,143			201.9	%
Total cost of operations		6,009			1,729			4,280			247.5	%

Total operating profit (loss)		(456	)		990			(1,446	)		-146.1	%

Interest Income and other		216			—			216			100.0	%
Interest Expense		(807	)		—			(807	)		100.0	%
Equity in loss of joint ventures		(11	)		(806	)		795			-98.6	%

Income (loss) before income taxes		(1,058	)		184			(1,242	)		-675.0	%
Provision for (benefit from) income taxes		(179	)		59			(238	)		-403.4	%
Income (loss) from continuing operations		(879	)		125			(1,004	)		-803.2	%

Income from discontinued operations, net		120,465			1,588			118,877			7486.0	%

Net income		119,586			1,713			117,873			6881.1	%
Loss attributable to noncontrolling interest		(396	)		—			(396	)		100.0	%
Net income attributable to the Company	$	119,982		$	1,713		$	118,269			6904.2	%

Net income for the second quarter of 2018 was $119,982,000 or $11.87 per share versus $1,713,000 or $.17 per share in the same period last year. Income from discontinued operations for the second quarter of 2018 was $120,465,000 or $11.92 per share versus $1,588,000 or $.16 per share in the same period last year. Loss from continuing operations for the quarter of $879,000 included $1,085,000 in stock compensation expense ($682,800 for the 2018 director stock grant and $402,000 for vesting of option grants from 2016 and 2017 due to the asset disposition).

Total revenues were $5,553,000, up 104.2%, versus the same period last year, primarily because of the addition of rental revenues from Dock 79 when its results were consolidated starting in July 2017.

In April, construction began on Phase II of our RiverFront on the Anacostia project, which we expect to deliver in the first or second quarter of 2020.

Asset Management Segment Results

	Three months ended June 30
(dollars in thousands)	2018		%			2017		%			Change			%

Rental revenue	$	546		96.1	%		536		96.9	%		10			1.9	%
Revenue-reimbursements		22		3.9	%		17		3.1	%		5			29.4	%

Total revenue		568		100.0	%		553		100.0	%		15			2.7	%

Depreciation, depletion and amortization		129		22.7	%		128		23.1	%		1			0.8	%
Operating expenses		91		16.0	%		128		23.1	%		(37	)		-28.9	%
Property taxes		40		7.1	%		35		6.3	%		5			14.3	%
Management company indirect		50		8.8	%		24		4.4	%		26			108.3	%
Corporate expense		109		19.2	%		27		4.9	%		82			303.7	%

Cost of operations		419		73.8	%		342		61.8	%		77			22.5	%

Operating profit	$	149		26.2	%		211		38.2	%		(62	)		-29.4	%

Most of the Asset Management Segment was reclassified to discontinued operations leaving only three office buildings. Total revenues in this segment were $568,000, up $15,000 or 2.7%, over the same period last year. Operating profit was $149,000, down $62,000 compared to the same quarter last year due to an $82,000 increase in corporate expense allocation.

Mining Royalty Lands Segment Results

Highlights of the Three Months ended June 30, 2018:

Mining Royalty and rents revenue were up $224,000, or 12.4%.

	Three months ended June 30
(dollars in thousands)	2018		%			2017		%

Mining Royalty and rents	$	2,033		98.9	%		1,809		98.7	%
Revenue-reimbursements		22		1.1	%		24		1.3	%

Total revenue		2,055		100.0	%		1,833		100.0	%

Depreciation, depletion and amortization		36		1.8	%		35		1.9	%
Operating expenses		40		1.9	%		39		2.1	%
Property taxes		61		3.0	%		58		3.2	%
Corporate expense		52		2.5	%		28		1.5	%

Cost of operations		189		9.2	%		160		8.7	%

Operating profit	$	1,866		90.8	%		1,673		91.3	%

Total revenues in this segment were $2,055,000 versus $1,833,000 in the same period last year. Total operating profit in this segment was $1,866,000, an increase of $193,000 versus $1,673,000 in the same period last year.

Land Development and Construction Segment Results

Highlights of the Three Months ended June 30, 2018:

Construction began on Phase II of our RiverFront on the Anacostia project.

	Three months ended June 30
(dollars in thousands)	2018			2017			Change

Rental revenue	$	214			214			—
Revenue-reimbursements		103			119			(16	)

Total revenue		317			333			(16	)

Depreciation, depletion and amortization		57			110			(53	)
Operating expenses		367			40			327
Property taxes		231			283			(52	)
Management company indirect		292			283			9
Corporate expense		283			217			66

Cost of operations		1,230			933			297

Operating loss	$	(913	)		(600	)		(313	)

The Land Development and Construction segment is responsible for (i) seeking out and identifying opportunistic purchases of income producing warehouse/office buildings, and (ii) developing our non-income producing properties into income production.

With respect to ongoing projects:

We are fully engaged in the formal process of seeking PUD entitlements for our 118-acre tract in Hampstead, Maryland, now known as “Hampstead Overlook.”

We began construction in the third quarter of last year on our joint venture with St. John Properties and expect to complete construction of the first phase of this project in the third quarter of 2018. This first phase will comprise four single-story buildings totaling 100,000 square feet of office and retail space.

We are the financial backer of a residential development in Essexshire now known as “Hyde Park.” This project will hold 125 town homes and 4 single family lots and is currently in the entitlement process.

This quarter, we began construction on a 94,350-square foot spec building at Hollander Business Park. This Class “A” facility will be our first building with a 32-foot clear ceiling height and should come on line in the second quarter of 2019.

As mentioned previously, in April of this past quarter, we began construction on Phase II of our RiverFront on the Anacostia project, now known as “The Maren.” We expect to deliver the building in the first half of 2020.

RiverFront on the Anacostia Segment Results

Highlights of the Three Months ended June 30, 2018:

Beginning July 1, 2017, the Company consolidated the assets (at current fair value), liabilities and operating results of the joint venture and established the RiverFront on the Anacostia segment as its fourth segment. FRP’s share of prior period results are included in the line Equity in loss of joint ventures in the Company’s overall Consolidated Statements of Income.

	Three Months Ended June 30
(dollars in thousands)	2018			%			2017		%

Rental revenue	$	2,590			99.1	%		—		—	%
Revenue-reimbursements		23			0.9	%		—		—	%

Total revenue		2,613			100.0	%		—		—	%

Depreciation and amortization		1,909			73.1	%		—		—	%
Operating expenses		605			23.1	%		—		—	%
Property taxes		279			10.7	%		—		—	%
Management company indirect		113			4.3	%		—
Corporate expense		95			3.6	%		—		—	%

Cost of operations		3,001			114.8	%		—		—	%

Operating profit	$	(388	)		-14.8	%	$	—		—	%

Average occupancy for the quarter was 95.0% and at the end of the second quarter, Dock 79 was 95.1% leased and 97.4% occupied. During the second quarter, 58.0% of expiring leases renewed with an average increase in rent of 4.5%. Both figures exceeded our budgeted expectations. Dock 79 is a joint venture between the Company and MRP, in which FRP Holdings, Inc. is the majority partner with 66% ownership.

Comparative Results of Operations for the Six months ended June 30, 2018 and 2017

Consolidated Results

	Six months ended
(dollars in thousands)	June 30,
	2018			2017		Change			%
Revenues:
Rental Revenue	$	6,497		$	1,507	$	4,990			331.1	%
Mining Royalty and rents		3,783			3,548		235			6.6	%
Revenue-Reimbursements		348			299		49			16.4	%
Total Revenues		10,628			5,354		5,274			98.5	%

Cost of operations:
Depreciation/Depletion/Amortization		4,529			499		4,030			807.6	%
Operating Expenses		1,968			437		1,531			350.3	%
Property Taxes		1,286			737		549			74.5	%
Mgmt company indirect		816			611		205			33.6	%
Corporate Expense		2,388			1,893		495			26.1	%
Total cost of operations		10,987			4,177		6,810			163.0	%

Total operating profit		(359	)		1,177		(1,536	)		-130.5	%

Interest Income and other		221			—			221		100.0	%
Interest Expense		(1,650	)		—			(1,650	)	100.0	%
Equity in loss of joint ventures		(23	)		(1,577	)		1,554		-98.5	%

Income before income taxes		(1,811	)		(400	)		(1,411	)	352.8	%
Provision for income taxes		(239	)		(172	)		(67	)	39.0	%
Income from continuing operations		(1,572	)		(228	)		(1,344	)	589.5	%

Income from discontinued operations, net		122,187			3,384			118,803		3510.7	%

Net income		120,615			3,156			117,459		3721.8	%
Loss attributable to noncontrolling interest		(927	)		—			(927	)	100.0	%
Net income attributable to the Company	$	121,542		$	3,156		$	118,386		3751.1	%

Net income for first half of 2018 was $121,542,000 or $12.04 per share versus $3,156,000 or $.32 per share in the same period last year. Income from discontinued operations for the second quarter of 2018 was $122,187,000 or $12.10 per share versus $3,384,000 or $.34 per share in the same period last year. Loss from continuing operations for the period of $1,572,000 included $1,085,000 in stock compensation expense ($682,800 for the 2018 director stock grant and $402,000 for vesting of option grants from 2016 and 2017 due to the asset disposition).

Total revenues were $10,628,000, up 98.5%, versus the same period last year, primarily because of the addition of rental revenues from Dock 79 when its results were consolidated starting in July 2017.

Asset Management Segment Results

	Six months ended June 30
(dollars in thousands)	2018		%			2017		%			Change			%

Rental revenue	$	1,099		95.6	%		1,113		96.7	%		(14	)		-1.3	%
Revenue-reimbursements		50		4.4	%		38		3.3	%		12			31.6	%

Total revenue		1,149		100.0	%		1,151		100.0	%		(2	)		-0.2	%

Depreciation, depletion and amortization		260		22.6	%		260		22.6	%		—			0.0	%
Operating expenses		229		19.9	%		252		21.9	%		(23	)		-9.1	%
Property taxes		79		6.9	%		71		6.2	%		8			11.3	%
Management company indirect		74		6.5	%		46		4.0	%		28			60.9	%
Corporate expense		112		9.7	%		91		7.9	%		21			23.1	%

Cost of operations		754		65.6	%		720		62.6	%		34			4.7	%

Operating profit	$	395		34.4	%		431		37.4	%		(36	)		-8.4	%

Total revenues in this segment were $1,149,000, down $2,000 or .2%, over the same period last year. Operating profit of $395,000 was down $36,000 compared to the same period last year due primarily to an increase of $21,000 in corporate expense allocation.

Mining Royalty Lands Segment Results

Highlights of the Six Months ended June 30, 2018:

Mining Royalty and rents revenue were up $235,000, or 6.6%.

	Six months ended June 30
(dollars in thousands)	2018		%			2017		%

Mining Royalty and rents	$	3,783		98.9	%		3,548		98.7	%
Revenue-reimbursements		44		1.1	%		47		1.3	%

Total revenue		3,827		100.0	%		3,595		100.0	%

Depreciation, depletion and amortization		90		2.4	%		74		2.1	%
Operating expenses		80		2.1	%		78		2.2	%
Property taxes		121		3.2	%		117		3.2	%
Corporate expense		129		3.3	%		94		2.6	%

Cost of operations		420		11.0	%		363		10.1	%

Operating profit	$	3,407		89.0	%		3,232		89.9	%

Total revenues in this segment were $3,827,000 versus $3,595,000 in the same period last year. Total operating profit in this segment was $3,407,000, an increase of $175,000 versus $3,232,000 in the same period last year.

Land Development and Construction Segment Results

Highlights of the Six Months ended June 30, 2018:

Total revenue was up $6,000, or 1%.

	Six months ended June 30
(dollars in thousands)	2018			2017			Change

Rental revenue	$	395			394			1
Revenue-reimbursements		219			214			5

Total revenue		614			608			6

Depreciation, depletion and amortization		114			165			(51	)
Operating expenses		475			107			368
Property taxes		499			549			(50	)
Management company indirect		533			565			(32	)
Corporate expense		702			725			(23	)

Cost of operations		2,323			2,111			212

Operating loss	$	(1,709	)		(1,503	)		(206	)

RiverFront on the Anacostia Segment Results

Highlights of the Six Months ended June 30, 2018:

Beginning July 1, 2017, the Company consolidated the assets (at current fair value), liabilities and operating results of the joint venture and established the RiverFront on the Anacostia segment as its fourth segment. FRP’s share of prior period results are included in the line Equity in loss of joint ventures in the Company’s overall Consolidated Statements of Income.

	Six Months Ended June 30
(dollars in thousands)	2018			%			2017		%

Rental revenue	$	5,003			99.3	%		—		—	%
Revenue-reimbursements		35			0.7	%		—		—	%

Total revenue		5,038			100.0	%		—		—	%

Depreciation and amortization		4,065			80.7	%		—		—	%
Operating expenses		1,184			23.5	%		—		—	%
Property taxes		587			11.7	%		—		—	%
Management company indirect		209			4.1	%		—
Corporate expense		237			4.7	%		—		—	%

Cost of operations		6,282			124.7	%		—		—	%

Operating profit	$	(1,244	)		-24.7	%	$	—		—	%

Average occupancy for the first six months was 94.7% and at the end of the second quarter, Dock 79 was 95.1% leased and 97.4% occupied. Through the first half of the year, 60.2% of expiring leases renewed with an average increase in rent of 3.6%. Both figures exceeded our budgeted expectations. Dock 79 is a joint venture between the Company and MRP, in which FRP Holdings, Inc. is the majority partner with 66% ownership.

Liquidity and Capital Resources. The growth of the Company’s businesses requires significant cash needs to acquire and develop land or operating buildings and to construct new buildings and tenant improvements. As of June 30, 2018, we had no debt borrowed under our $20 million Wells Fargo revolver, $2,202,000 outstanding under letters of credit and $17,798,000 available to borrow under the revolver. In November, we secured $90 million in permanent financing for Dock 79 from EagleBank, the proceeds of which were used to pay off $79 million of construction and mezzanine debt. The remainder was distributed pari passu between the Company and our partners.

Cash Flows - The following table summarizes our cash flows from operating, investing and financing activities for each of the periods presented (in thousands of dollars):

		Six months
		Ended June 31,
		2018		2017
Total cash provided by (used for):
Operating activities	$	7,015			8,986
Investing activities		51,678			(8,375	)
Financing activities		(30,368	)		(611	)
Increase in cash and cash equivalents	$	28,325			—

Outstanding debt at the beginning of the period	$	118,317			40,745
Outstanding debt at the end of the period	$	88,720			38,262

Operating Activities - Net cash provided by operating activities decreased $1,971,000 to $7,015,000 for the six months ended June 30, 2018. The total of net income plus depreciation, depletion and amortization increased $122,000 versus the same period last year. These changes are described above under “Comparative Results of Operations”. Equity in the loss of joint ventures was $23,000 in the first six months of 2018 versus $1,577,000 in the same period last year primarily as a result of expenses and depreciation during the lease up of Dock 79 last year. Income tax payable was $728,000 at June 30, 2018 compared to income tax receivable of $2,962,000 at June 30, 2017.

Investing Activities - For the six months ended June 30, 2018, cash provided by investing activities increased to $51,678,000 versus cash used in investing activities of $8,375,000 in the same period last year due primarily to the proceeds on the sale of the buildings offset by the cash held in escrow related to the sale.

Financing Activities – For the six months ended June 30, 2018, cash required by financing activities was $30,368,000 versus $611,000 in the same period last year primarily due to the payoff of mortgage loans related to the buildings sold.

Credit Facilities - On January 30, 2015, in connection with the Spin-off, the Company terminated its $55 million credit facility entered with Wells Fargo Bank, N.A. in 2012 and simultaneously entered into a new five year credit agreement with Wells Fargo with a maximum facility amount of $20 million (the "Credit Agreement"). The Credit Agreement provides a revolving credit facility (the “Revolver”) with a $10 million sublimit available for standby letters of credit. As of June 30, 2018, there was no debt outstanding on the revolver and $2,202,000 outstanding under letters of credit and $17,798,000 available for borrowing. The letters of credit were issued to guarantee certain obligations to state agencies related to real estate development. Most of the letters of credit are irrevocable for a period of one year and typically are automatically extended for additional one-year periods. The Revolver bears interest at a rate of 1.4% over the selected LIBOR, which may change quarterly based on the Company’s ratio of Consolidated Total Debt to Consolidated Total Capital, as defined. A commitment fee of 0.15% per annum is payable quarterly on the unused portion of the commitment. The commitment fee may also change quarterly based upon the ratio described above. The credit agreement contains certain conditions and financial covenants, including a minimum $110 million tangible net worth. As of June 30, 2018, the tangible net worth covenant would have limited our ability to pay dividends or repurchase stock with borrowed funds to a maximum of $166 million combined. The Company was in compliance with all covenants as of June 30, 2018.

On November 17, 2017, Riverfront Holdings I, LLC (the "Joint Venture") refinanced the Dock 79 project pursuant to a Loan Agreement and Deed of Trust Note entered into with EagleBank ("Loan Documents"). The Joint Venture, which was formed between FRP Holdings, Inc. (the "Company") and MRP in 2014 in connection with the development of the Riverfront on the Anacostia property, borrowed a principal sum of $90,000,000 in connection with the refinancing. The loan is secured by the Dock 79 real property and improvements, bears a fixed interest rate of 4.125% per annum and has a term of 120 months. During the first 48 months of the loan term, the Joint Venture will make monthly payments of interest only, and thereafter, make monthly payments of principal and interest in equal installments based upon a 30-year amortization period. The loan is a non-recourse loan to the Company. However, all amounts due under the Loan Documents will become immediately due upon an event of default by the Joint Venture, such events including, without limitation, Joint Venture's (i) failure to: pay, permit inspections or observe covenants under the Loan Documents, (ii) breach of representations made under the Loan Documents (iii) voluntary or involuntary bankruptcy, and (iv) dissolution, or the dissolution of the guarantor. MidAtlantic Realty Partners, LLC, an affiliate of MRP, has executed a carve-out guaranty in connection with the loan.

Cash Requirements – The Board of Directors has authorized Management to repurchase shares of the Company’s common stock from time to time as opportunities arise. As of June 30, 2018, $4,883,000 was authorized for future repurchases of common stock. The Company does not currently pay any cash dividends on common stock.

The Company currently expects its 2018 capital expenditures to include approximately $10,156,000 for real estate development and acquisitions, of which $3,252,000 has been expended to date, which will be funded mostly out of cash generation from operations and property sales or partly from borrowings under our credit facilities.

Summary and Outlook. The last three months were huge for this company. Mining Royalty revenue was up the second straight quarter. Dock 79 continues to exceed our lofty expectations making us all the more excited for 2020 and the arrival of its younger sibling, “The Maren.” The development of our remaining lots commenced with the start of construction of our first 32-foot clear ceiling height building at Hollander Business Park. However, all of that is secondary in importance to the significance of the sale of our industrial real estate portfolio, which closed the book on nearly three decades of hard work and value creation by our team in Baltimore and raises the question of what comes next. The problem of what to do with the proceeds is a good one to have, but a problem nonetheless. Selling when one believes valuations are at their peak also means having to deploy the proceeds when valuations are at their peak, which obviously we are loath to do. As mentioned previously, we are currently looking for opportunities more in line with our other business segments, but that does not mean we are going to let this money “burn a hole in our pocket.” Being opportunistic means being disciplined in our approach, remaining patient rather than pressing. If that means letting the cash earn interest for a few quarters, that is what we are prepared to do. We are not going to wait forever to put this money to work, but this sale and its proceeds are too important an opportunity to waste, and as stewards of your capital, we are taking this moment very seriously.

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. The non-GAAP financial measure included in this quarterly report is net operating income (NOI). FRP uses this non-GAAP financial measure to analyze its continuing operations and to monitor, assess, and identify meaningful trends in its operating and financial performance. This measure is not, and should not be viewed as, a substitute for GAAP financial measures.

Net Operating Income Reconciliation
Six months ended 06/30/18 (in thousands)
	Asset		Land			RiverFront			Mining		Unallocated			FRP
	Management		Development			Anacostia			Royalties		Corporate			Holdings
	Segment		Segment			Segment			Segment		Expenses			Totals
Income from continuing operations		288		(1,247	)		(2,362	)		2,469		(720	)		(1,572	)
Income Tax Allocation		107		(462	)		(532	)		915		(267	)		(239	)
Income from continuing operations before income taxes		395		(1,709	)		(2,894	)		3,384		(987	)		(1,811	)

Less:
Unrealized rents		—		—			116			—		—			116
Interest income		—		—			—			—		221			221
Plus:
Unrealized rents		29		—			—			241		—			270
Equity in loss of Joint Venture		—		—			—			23		—			23
Interest Expense		—		—			1,650			—		—			1,650
Depreciation/Amortization		260		114			4,065			90		—			4,529
Management Co. Indirect		74		533			209			—		—			816
Allocated Corporate Expenses		112		702			237			129		1,208			2,388

Net Operating Income (loss)		870		(360	)		3,151			3,867		—			7,528

Net Operating Income Reconciliation
Six months ended 06/30/17 (in thousands)
	Asset		Land			Mining		Unallocated			FRP
	Management		Development			Royalties		Corporate			Holdings
	Segment		Segment			Segment		Expenses			Totals
Income from continuing operations		261		(1,860	)		1,952		(581	)		(228	)
Income Tax Allocation		170		(1,201	)		1,261		(402	)		(172	)
Income from continuing operations before income taxes		431		(3,061	)		3,213		(983	)		(400	)

Plus:
Unrealized rents		46		—			221		—			267
Equity in loss of Joint Venture		—		1,558			19		—			1,577
Depreciation/Amortization		260		165			74		—			499
Management Co. Indirect		46		565			—		—			611
Allocated Corporate Expenses		91		725			94		983			1,893

Net Operating Income (loss)		874		(48	)		3,621		—			4,447

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

Interest Rate Risk - We are exposed to the impact of interest rate changes through our variable-rate borrowings under Credit Agreements with Wells Fargo and First Tennessee Bank.

Under the Wells Fargo Credit Agreement, the applicable margin for borrowings at June 30, 2018 was 1.4%. The applicable margin for such borrowings will be increased in the event that our debt to capitalization ratio as calculated under the Wells Fargo Credit Agreement Facility exceeds a target level.

The applicable borrowing spread margin at June 30, 2018 with First Tennessee Bank was 1.9%.

The Company did not have any variable rate debt at June 30, 2018, so a sensitivity analysis was not performed to determine the impact of hypothetical changes in interest rates on the Company’s results of operations and cash flows.

ITEM 4. CONTROLS AND PROCEDURES

CONCLUSION REGARDING THE EFFECTIVENESS OF DISCLOSURE CONTROLS AND PROCEDURES

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosure.

The Company also maintains a system of internal accounting controls over financial reporting that are designed to provide reasonable assurance to the Company’s management and Board of Directors regarding the preparation and fair presentation of published financial statements.

All control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving the desired control objectives.

As of June 30, 2018, the Company, under the supervision and with the participation of the Company's management, including the CEO, CFO and CAO, carried out an evaluation of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on this evaluation, the Company’s CEO, CFO and CAO concluded that the Company's disclosure controls and procedures are effective in alerting them in a timely manner to material information required to be included in periodic SEC filings.

There have been no changes in the Company’s internal controls over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1A.

RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Item 2. PURCHASES OF EQUITY SECURITIES BY THE ISSUER

(c)

Total

Number of

(d)

Purchased

Approximate

(a)

As Part of

Dollar Value of

Total

(b)

Publicly

Shares that May

Number of

Average

Announced

Yet Be Purchased

Price Paid

Plans or

Under the Plans

Period

Purchased

per Share

Programs

or Programs (1)

April 1

Through

April 30

—

4,883,000

May 1

Through

May 31

—

4,883,000

June 1

Through

June 30

—

4,883,000

Total

—

(1) On February 4, 2015, the Board of Directors authorized management to expend up to $5,000,000 to repurchase shares of the Company’s common stock from time to time as opportunities arise.

Item 6. EXHIBITS

(a)

Exhibits. The response to this item is submitted as a separate Section entitled "Exhibit Index", on page 35.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

		FRP Holdings, Inc.


Date: August 8, 2018	By	JOHN D. BAKER II
		John D. Baker II
		Chief Executive Officer
		(Principal Executive Officer)


	By	JOHN D. MILTON, JR.
		John D. Milton, Jr.
		Executive Vice President, Treasurer,
		Secretary and Chief Financial Officer
		(Principal Financial Officer)


	By	JOHN D. KLOPFENSTEIN
		John D. Klopfenstein
		Controller and Chief Accounting
		Officer (Principal Accounting Officer)

FRP HOLDINGS, INC.

FORM 10-Q FOR THE THREE MONTHS ENDED JUNE 30, 2018

EXHIBIT INDEX

(14)	Financial Code of Ethical Conduct between the Company, Chief Executive Officers and Financial Managers, adopted December 3, 2014, incorporated by reference to Exhibit 14 to the Company’s Form 10-Q filed on November 9, 2017.
(31)(a)	Certification of John D. Baker II.
(31)(b)	Certification of John D. Milton, Jr.
(31)(c)	Certification of John D. Klopfenstein.
(32)	Certification of Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer under Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS	XBRL Instance Document
101.XSD	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

CERTIFICATIONS Exhibit 31(a)

I, John D. Baker II, certify that:

I have reviewed this report on Form 10-Q of FRP Holdings, Inc.;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

designed such disclosure controls and procedures, or caused such disclosure controls to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosures controls and procedures, as of the end of the period covered by this report based on such evaluation; and

disclosed in this report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial report; and

The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

all significant deficiencies in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2018 /s/John D. Baker II

Chief Executive Officer

CERTIFICATIONS Exhibit 31(b)

I, John D. Milton, Jr., certify that:

I have reviewed this report on Form 10-Q of FRP Holdings, Inc.;

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2018 /s/John D. Milton, Jr.

Executive Vice President, Treasurer,

Secretary and Chief Financial Officer

CERTIFICATIONS Exhibit 31(c)

I, John D. Klopfenstein, certify that:

I have reviewed this report on Form 10-Q of FRP Holdings, Inc.;

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 8, 2018 /s/John D. Klopfenstein

Controller and Chief Accounting Officer

Exhibit 32

CERTIFICATION UNDER SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned certifies that this periodic report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in this periodic report fairly presents, in all material respects, the financial condition and results of operations of FRP Holdings, Inc.

		FRP Holdings, Inc.


Date: August 8, 2018	By	/s/JOHN D. BAKER II
		John D. Baker II
		Chief Executive Officer
		(Principal Executive Officer)


	By	/s/JOHN D. MILTON, JR.
		John D. Milton, Jr.
		Executive Vice President, Treasurer,
		Secretary and Chief Financial Officer
		(Principal Financial Officer)


	By	/s/JOHN D. KLOPFENSTEIN
		John D. Klopfenstein
		Controller and Chief Accounting
		Officer (Principal Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to FRP Holdings, Inc. and will be retained by FRP Holdings, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification accompanies the issuer’s Quarterly report on Form 10-Q and is not filed as provided in SEC Release Nos. 33-8212, 34-4751 and IC-25967, dated June 30, 2003.

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 30, 2018 shares
Document And Entity Information
Entity Registrant Name	FRP HOLDINGS, INC.
Entity Central Index Key	0000844059
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	10,046,019
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2018

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets:
Land	$ 83,709	$ 87,235
Buildings and improvements	146,580	147,670
Projects under construction	2,028	1,764
Total investments in properties	232,317	236,669
Less accumulated depreciation and depletion	28,446	26,755
Net investments in properties	203,871	209,914
Real estate held for investment, at cost	7,176	7,176
Investments in joint ventures	22,616	13,406
Net real estate investments	233,663	230,496
Cash and cash equivalents	32,849	4,524
Cash held in escrow	278,573	333
Accounts receivable, net	648	615
Federal and state income taxes receivable	0	2,962
Unrealized rents	595	223
Deferred costs	1,228	2,708
Other assets	178	179
Assets of discontinued operations	2,210	176,694
Total assets	549,944	418,734
Liabilities:
Secured notes payable, current portion	0	125
Secured notes payable, less current portion	88,720	90,029
Accounts payable and accrued liabilities	3,072	2,081
Environmental remediation liability	1,807	2,037
Federal and state income taxes payable	728	0
Deferred revenue	26	107
Deferred income taxes	21,254	25,982
Deferred compensation	1,455	1,457
Tenant security deposits	47	54
Liabilities of discontinued operations	46,456	32,280
Total liabilities	163,565	154,152
Commitments and contingencies (Note 8)
Equity:
Common stock, $.10 par value; 25,000,000 shares authorized, 10,046,019 and 10,014,667 shares issued and outstanding, respectively	1,005	1,001
Capital in excess of par value	57,324	55,636
Retained earnings	308,397	186,855
Accumulated other comprehensive income, net	38	38
Total shareholders' equity	366,764	243,530
Noncontrolling interest MRP	19,615	21,052
Total Equity	386,379	264,582
Total liabilities and shareholders' equity	$ 549,944	$ 418,734

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued and outstanding	10,046,019	10,014,667

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Rental revenue	$ 3,350	$ 750	$ 6,497	$ 1,507
Mining Royalty and rents	2,033	1,809	3,783	3,548
Revenue - reimbursements	170	160	348	299
Total revenues	5,553	2,719	10,628	5,354
Cost of operations:
Depreciation, depletion and amortization	2,131	273	4,529	499
Operating expenses	1,103	207	1,968	437
Property taxes	611	376	1,286	737
Management company indirect	455	307	816	611
Corporate expenses (Note 4 Related Party)	1,709	566	2,388	1,893
Total cost of operations	6,009	1,729	10,987	4,177
Total operating profit (loss)	(456)	990	(359)	1,177
Interest income	216	0	221	0
Interest expense	(807)	0	(1,650)	0
Equity in loss of joint ventures	(11)	(806)	(23)	(1,577)
Income (loss) before income taxes	(1,058)	184	(1,811)	(400)
Provision for (benefit from) income taxes	(179)	59	(239)	(172)
Income (loss) from continuing operations	(879)	125	(1,572)	(228)
Income from discontinued operations, net	120,465	1,588	122,187	3,384
Net income	119,586	1,713	120,615	3,156
Income (loss) attributable to noncontrolling interest	(396)	0	(927)	0
Net income attributable to the Company	$ 119,982	$ 1,713	$ 121,542	$ 3,156
Basic earnings per common share
Income (loss) from continuing operations	$ (0.09)	$ 0.01	$ (0.16)	$ (0.02)
Discontinued operations	12.01	0.16	12.19	0.34
Net income attributable to the Company	11.96	0.17	12.13	0.32
Diluted earnings per common share
Income from continuing operations	(0.09)	0.01	(0.16)	(0.02)
Discontinued operations	11.92	0.16	12.10	0.34
Net income attributable to the Company	$ 11.87	$ 0.17	$ 12.04	$ 0.32
Number of shares (in thousands) used in computing:
-basic earnings per common share	10,033	9,965	10,024	9,948
-diluted earnings per common share	10,109	10,038	10,099	10,019

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Comprehensive income	$ 119,586	$ 1,713	$ 120,615	$ 3,156
Less: comprehensive loss attributable to noncontrolling interests	(396)	0	(927)	0
Comprehensive income attributable to the Company	$ 119,982	$ 1,713	$ 121,542	$ 3,156

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income	$ 120,615	$ 3,156
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations, net	(122,187)	(3,384)
Depreciation, depletion and amortization	4,719	569
Deferred income taxes	(4,728)	3,992
Equity in loss of joint ventures	23	1,577
Gain on sale of equipment	(12)	0
Stock-based compensation	1,152	555
Net changes in operating assets and liabilities:
Accounts receivable	(33)	(87)
Deferred costs and other assets	(660)	316
Accounts payable and accrued liabilities	910	(303)
Income taxes payable and receivable	3,690	(3,813)
Other long-term liabilities	(239)	8
Net cash provided by operating activities of continuing operations	3,250	2,586
Net cash provided by operating activities of discontinued operations	3,765	6,400
Net cash provided by operating activities	7,015	8,986
Cash flows from investing activities:
Investments in properties	(1,419)	(1,738)
Investments in joint ventures	(4,671)	(236)
Proceeds from the sale of assets	12	0
Cash held in escrow	(278,240)	0
Net cash used in investing activities of continuing operations	(284,318)	(1,974)
Net cash provided by (used in) investing activities of discontinued operations	335,996	(6,401)
Net cash provided by (used in) investing activities	51,678	(8,375)
Cash flows from financing activities:
Distribution to noncontrolling interest	(510)	0
Decrease in bank overdrafts	0	(83)
Repayment of long-term debt	(1,552)	(59)
Proceeds from borrowing on revolving credit facility	0	0
Payment on revolving credit facility	0	(707)
Repurchase of Company Stock	0	(74)
Exercise of employee stock options	540	2,029
Net cash provided by financing activities of continuing operations	1,522	1,106
Net cash used in financing activities of discontinued operations	(28,846)	(1,717)
Net cash used in financing activities	(30,368)	(611)
Net increase in cash and cash equivalents	28,325	0
Cash and cash equivalents at beginning of period	4,524	0
Cash and cash equivalents at end of the period	$ 32,849	$ 0

Description of Business and Basis of Presentation

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Basis of Presentation

(1) Description of Business and Basis of Presentation.

Recently Issued Accounting Standards

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Recently Issued Accounting Standards

Business Segments

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Business Segments

Operating results and certain other financial data for the Company’s business segments are as follows (in thousands):

	Three Months ended						Six Months ended
	June 30,						June 30,
	2018			2017			2018			2017
Revenues:
Asset management	$	568			553			1,149			1,151
Mining royalty lands		2,055			1,833			3,827			3,595
Land development and construction		317			333			614			608
RiverFront on the Anacostia		2,613			—			5,038			—
		5,553			2,719			10,628			5,354

Operating profit (loss):
Before corporate expenses:
Asset management	$	258			238			507			522
Mining royalty lands		1,918			1,701			3,536			3,326
Land development and construction		(630	)		(383	)		(1,007	)		(778	)
RiverFront on the Anacostia		(293	)		—			(1,007	)		—
Operating profit before corporate expenses		1,253			1,556			2,029			3,070
Corporate expenses:
Allocated to asset management		(109	)		(27	)		(112	)		(91	)
Allocated to mining royalty lands		(52	)		(28	)		(129	)		(94	)
Allocated to land development and construction		(283	)		(217	)		(702	)		(725	)
Allocated to RiverFront on the Anacostia		(95	)		—			(237	)		—
Unallocated		(1,170	)		(294	)		(1,208	)		(983	)
Total corporate expenses		(1,709	)		(566	)		(2,388	)		(1,893	)
	$	(456	)		990			(359	)		1,177

Interest expense	$	807			—			1,650			—

Depreciation, depletion and amortization:
Asset management	$	129			128			260			260
Mining royalty lands		36			35			90			74
Land development and construction		57			110			114			165
RiverFront on the Anacostia		1,909			—			4,065			—
	$	2,131			273			4,529			499
Capital expenditures:
Asset management	$	6			4			167			31
Mining royalty lands		—			—			—			—
Land development and construction		1,018			482			1,310			1,707
RiverFront on the Anacostia		185			—			(58	)		—
	$	1,209			486			1,419			1,738

		June 30,	December 31,
Identifiable net assets		2018	2017

Asset management	$	10,594	2,960
Discontinued operations		2,210	176,694
Mining royalty lands		38,606	38,656
Land development and construction		45,017	46,684
Riverfront on the Anacostia		140,257	144,386
Cash items		311,422	4,524
Unallocated corporate assets		1,838	4,830
	$	549,944	418,734

Related Party Transactions

6 Months Ended

Jun. 30, 2018

Related Party Transactions

Long-Term Debt

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Long-Term Debt

(5) Long-Term Debt. Long-term debt is summarized as follows (in thousands):

	June 30,		December 31,
	2018		2017
5.6% to 8% mortgage notes
due in installments through 2027	$	—		29,664
Riverfront permanent loan	$	88,720		88,653
		88,720		118,317
Less portion due within one year		—		4,463
	$	88,720		113,854

Earnings per Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings per Share

(6) Earnings per Share. The following details the computations of the basic and diluted earnings per common share (in thousands, except per share amounts):

	Three Months ended				Six Months ended
	June 30,				June 30,
	2018		2017		2018		2017
Weighted average common shares
outstanding during the period
- shares used for basic
earnings per common share		10,033		9,965		10,024		9,948

Common shares issuable under
share based payment plans
which are potentially dilutive		76		73		75		71

Common shares used for diluted
earnings per common share		10,109		10,038		10,099		10,019

Net income attributable to the Company	$	119,982		1,713		121,542		3,156

Basic earnings per common share:
Basic	$	11.96		0.17		12.13		0.32
Diluted	$	11.87		0.17		12.04		0.32

Stock-Based Compensation Plans

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation Plans

(7) Stock-Based Compensation Plans. The Company has two Stock Option Plans (the 2006 Stock Incentive Plan and the 2016 Equity Incentive Option Plan) under which options for shares of common stock were granted to directors, officers and key employees. The 2016 plan permits the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, or stock awards. The options awarded under the plans have similar characteristics. All stock options are non-qualified and expire ten years from the date of grant. Stock based compensation awarded to directors, officers and employees are exercisable immediately or become exercisable in cumulative installments of 20% or 25% at the end of each year following the date of grant. When stock options are exercised the Company issues new shares after receipt of exercise proceeds and taxes due, if any, from the grantee. The number of common shares available for future issuance was 532,217 at June 30, 2018.

The Company recorded the following stock compensation expense in its consolidated statements of income (in thousands):

	Three Months ended				Six Months ended
	June 30,				June 30,
	2018		2017		2018		2017
Stock option grants	$	428		33		469		110
Annual director stock award		683		—		683		445
	$	1,111		33		1,152		555

A summary of changes in outstanding options is presented below (in thousands, except share and per share amounts):

				Weighted		Weighted		Weighted
	Number			Average		Average		Average
	Of			Exercise		Remaining		Grant Date
Options	Shares			Price		Term (yrs)		Fair Value(000's)
Outstanding at
January 1, 2018		174,510		$	28.70		6.0	$	1,901
Granted		—		$	—			$	—
Exercised		(19,352	)	$	27.88			$	(221	)
Outstanding at
June 30, 2018		155,158		$	28.81		5.5	$	1,680
Exercisable at
June 30, 2018		138,693		$	28.65		5.4	$	1,456
Vested during
six months ended
June 30, 2018		138,693						$	454

Contingent liabilities

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Contingent liabilities

Concentrations

6 Months Ended

Jun. 30, 2018

Risks and Uncertainties [Abstract]

Concentrations

Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Investment in Joint Ventures (Equity Method)

6 Months Ended

Jun. 30, 2018

Equity Method Investments and Joint Ventures [Abstract]

Investment in Joint Ventures (Equity Method)

(11) Investments in Joint Ventures (Equity Method).

Investments in Joint Ventures (in thousands):

									The
									Company's
						Total Assets	Net Loss		Share of Net
				Total		of the	of the		Loss of the
	Ownership			Investment		Partnership	Partnership		Partnership

As of June 30, 2018
Brooksville Quarry, LLC	50.00	%			7,489	14,406	(46	)	(23	)
BC FRP Realty, LLC	50.00	%			5,945	18,858	—		—
RiverFront Holdings II, LLC	80.00	%			9,182	15,267	—		—
Total			$		22,616	48,531	(46	)	(23	)

As of December 31, 2017
RiverFront Holdings I, LLC (1)	—		$		—	—	(2,019	)	(1,558	)
Brooksville Quarry, LLC	50.00	%			7,516	14,411	(80	)	(40	)
BC FRP Realty, LLC	50.00	%			5,890	15,027	—		—
Total			$		13,406	29,438	(2,099	)	(1,598	)

(1)

The Company consolidated this joint venture effective July 1, 2017 (see Footnote 12).

Income statements for the RiverFront Holdings I, LLC, prior to consolidation July 1, 2017 (in thousands):

	Three Months Ended			Six Months Ended
	June 30,			June 30,
	2017			2017
Revenues:
Rental Revenue	$	1,742			3,053
Revenue – Reimbursements		18			33
Total Revenues		1,760			3,086
Cost of operations:
Depreciation and amortization		1,095			1,958
Operating expenses		621			1,096
Property taxes		240			459
Total cost of operations		1,956			3,513
Total operating profit		(196	)		(427	)
Interest expense		(836	)		(1,592	)
Net loss of the Partnership	$	(1,032	)		(2,019	)

The amount of consolidated accumulated deficit for these joint ventures was $(2,655,000) and $(2,638,000) as of June 30, 2018 and December 31, 2017 respectively.

Consolidation of RiverFront Investment Partners I, LLC.

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Consolidation of RiverFront Investment Partners I, LLC.

	As of July 1, 2017 (in thousands)
	Riverfront			Gain on Remeasure-
	Holdings I, LLC			ment		Revised

Land	$	7,220		$	21,107		$	28,327
Building and improvements, net		81,773			34,362			116,135
Value of leases in place		—			4,727			4,727
Cash		2,295			—			2,295
Cash held in escrow		171			—			171
Accounts receivable		40			—			40
Prepaid expenses		142			—			142
Total Assets	$	91,641		$	60,196		$	151,837

Long-term Debt	$	78,587		$	—		$	78,587
Amortizable debt costs		(852	)		—			(852	)
Other liabilities		905			—			905
Equity – FRP		8,583			39,727			48,310
Equity – MRP		4,418			20,469			24,887
Total Liabilities and Capital	$	91,641		$	60,196		$	151,837

Discontinued Operations

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

(13) Discontinued Operations.

	Three months ended						Six months ended
	June 30,						June 30,
	2018			2017			2018			2017
Revenues:
Rental revenue	$	3,394			5,472			9,412			10,998
Revenue – reimbursements		716			1,169			2,245			2,330
Total Revenues		4,110			6,641			11,657			13,328

Cost of operations:
Depreciation, depletion and amortization		1,217			1,929			3,102			3,762
Operating expenses		464			795			1,642			1,566
Property taxes		449			753			1,247			1,454
Management company indirect		812			168			990			333
Corporate expenses		655			—			1,402			—
Total cost of operations		3,597			3,645			8,383			7,115

Total operating profit		513			2,996			3,274			6,213

Interest expense		(187	)		(371	)		(587	)		(619	)
Gain on sale of buildings		164,807			—			164,807			—

Income before income taxes		165,133			2,625			167,494			5,594
Provision for income taxes		44,668			1,037			45,307			2,210

Income from discontinued operations	$	120,465			1,588			122,187			3,384

The components of the balance sheet are as follows (in thousands):

	June 30		December 31
Assets:	2018		2017
Real estate investments at cost:
Land	$	546		40,465
Buildings and improvements		3,315		186,657
Projects under construction		—		6,617
Total investments in properties		3,861		233,739
Less accumulated depreciation and depletion		2,331		68,049
Net investments in properties		1,530		165,690

Accounts receivable, net		332		405
Unrealized rents		94		4,088
Deferred costs		251		6,509
Other assets		3		2
Assets of discontinued operations	$	2,210		176,694

Liabilities:
Secured notes payable, current portion	$	—		23,825
Secured notes payable, less current portion		—		4,338
Accounts payable and accrued liabilities		189		2,289
Deferred revenue		2		967
Federal and state income taxes payable		46,228		—
Tenant security deposits		37		861
Liabilities of discontinued operations	$	46,456		32,280

Business Segments (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Business segments (in thousands)

	Three Months ended						Six Months ended
	June 30,						June 30,
	2018			2017			2018			2017
Revenues:
Asset management	$	568			553			1,149			1,151
Mining royalty lands		2,055			1,833			3,827			3,595
Land development and construction		317			333			614			608
RiverFront on the Anacostia		2,613			—			5,038			—
		5,553			2,719			10,628			5,354

Operating profit (loss):
Before corporate expenses:
Asset management	$	258			238			507			522
Mining royalty lands		1,918			1,701			3,536			3,326
Land development and construction		(630	)		(383	)		(1,007	)		(778	)
RiverFront on the Anacostia		(293	)		—			(1,007	)		—
Operating profit before corporate expenses		1,253			1,556			2,029			3,070
Corporate expenses:
Allocated to asset management		(109	)		(27	)		(112	)		(91	)
Allocated to mining royalty lands		(52	)		(28	)		(129	)		(94	)
Allocated to land development and construction		(283	)		(217	)		(702	)		(725	)
Allocated to RiverFront on the Anacostia		(95	)		—			(237	)		—
Unallocated		(1,170	)		(294	)		(1,208	)		(983	)
Total corporate expenses		(1,709	)		(566	)		(2,388	)		(1,893	)
	$	(456	)		990			(359	)		1,177

Interest expense	$	807			—			1,650			—

Depreciation, depletion and amortization:
Asset management	$	129			128			260			260
Mining royalty lands		36			35			90			74
Land development and construction		57			110			114			165
RiverFront on the Anacostia		1,909			—			4,065			—
	$	2,131			273			4,529			499
Capital expenditures:
Asset management	$	6			4			167			31
Mining royalty lands		—			—			—			—
Land development and construction		1,018			482			1,310			1,707
RiverFront on the Anacostia		185			—			(58	)		—
	$	1,209			486			1,419			1,738

		June 30,	December 31,
Identifiable net assets		2018	2017

Asset management	$	10,594	2,960
Discontinued operations		2,210	176,694
Mining royalty lands		38,606	38,656
Land development and construction		45,017	46,684
Riverfront on the Anacostia		140,257	144,386
Cash items		311,422	4,524
Unallocated corporate assets		1,838	4,830
	$	549,944	418,734

Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Long-term debt (in thousands)

	June 30,		December 31,
	2018		2017
5.6% to 8% mortgage notes
due in installments through 2027	$	—		29,664
Riverfront permanent loan	$	88,720		88,653
		88,720		118,317
Less portion due within one year		—		4,463
	$	88,720		113,854

Earnings per Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings per share (in thousands, except per share amounts)

	Three Months ended				Six Months ended
	June 30,				June 30,
	2018		2017		2018		2017
Weighted average common shares
outstanding during the period
- shares used for basic
earnings per common share		10,033		9,965		10,024		9,948

Common shares issuable under
share based payment plans
which are potentially dilutive		76		73		75		71

Common shares used for diluted
earnings per common share		10,109		10,038		10,099		10,019

Net income attributable to the Company	$	119,982		1,713		121,542		3,156

Basic earnings per common share:
Basic	$	11.96		0.17		12.13		0.32
Diluted	$	11.87		0.17		12.04		0.32

Stock-Based Compensation Plans (Tables)

6 Months Ended

Jun. 30, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation Expense (in thousands

	Three Months ended				Six Months ended
	June 30,				June 30,
	2018		2017		2018		2017
Stock option grants	$	428		33		469		110
Annual director stock award		683		—		683		445
	$	1,111		33		1,152		555

Summary of Stock Activity (in thousands, except share and per share amounts)

				Weighted		Weighted		Weighted
	Number			Average		Average		Average
	Of			Exercise		Remaining		Grant Date
Options	Shares			Price		Term (yrs)		Fair Value(000's)
Outstanding at
January 1, 2018		174,510		$	28.70		6.0	$	1,901
Granted		—		$	—			$	—
Exercised		(19,352	)	$	27.88			$	(221	)
Outstanding at
June 30, 2018		155,158		$	28.81		5.5	$	1,680
Exercisable at
June 30, 2018		138,693		$	28.65		5.4	$	1,456
Vested during
six months ended
June 30, 2018		138,693						$	454

Investment in Joint Ventures (Tables)

6 Months Ended

Jun. 30, 2018

Equity Method Investments and Joint Ventures [Abstract]

Investments in Joint Ventures (in thousands)

									The
									Company's
						Total Assets	Net Loss		Share of Net
				Total		of the	of the		Loss of the
	Ownership			Investment		Partnership	Partnership		Partnership

As of June 30, 2018
Brooksville Quarry, LLC	50.00	%			7,489	14,406	(46	)	(23	)
BC FRP Realty, LLC	50.00	%			5,945	18,858	—		—
RiverFront Holdings II, LLC	80.00	%			9,182	15,267	—		—
Total			$		22,616	48,531	(46	)	(23	)

As of December 31, 2017
RiverFront Holdings I, LLC (1)	—		$		—	—	(2,019	)	(1,558	)
Brooksville Quarry, LLC	50.00	%			7,516	14,411	(80	)	(40	)
BC FRP Realty, LLC	50.00	%			5,890	15,027	—		—
Total			$		13,406	29,438	(2,099	)	(1,598	)

Income statements for Riverfront Holdings I, LLC (in thousands)

	Three Months Ended			Six Months Ended
	June 30,			June 30,
	2017			2017
Revenues:
Rental Revenue	$	1,742			3,053
Revenue – Reimbursements		18			33
Total Revenues		1,760			3,086
Cost of operations:
Depreciation and amortization		1,095			1,958
Operating expenses		621			1,096
Property taxes		240			459
Total cost of operations		1,956			3,513
Total operating profit		(196	)		(427	)
Interest expense		(836	)		(1,592	)
Net loss of the Partnership	$	(1,032	)		(2,019	)

Consolidation of RiverFront Investment Partners I, LLC. (Tables)

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

RiverFront remeasurement balance sheet

	As of July 1, 2017
	Riverfront			Gain on Remeasure-
	Holdings I, LLC			ment		Revised

Land	$	7,220		$	21,107		$	28,327
Building and improvements, net		81,773			34,362			116,135
Value of leases in place		—			4,727			4,727
Cash		2,295			—			2,295
Cash held in escrow		171			—			171
Accounts receivable		40			—			40
Prepaid expenses		142			—			142
Total Assets	$	91,641		$	60,196		$	151,837

Long-term Debt	$	78,587		$	—		$	78,587
Amortizable debt costs		(852	)		—			(852	)
Other liabilities		905			—			905
Equity – FRP		8,583			39,727			48,310
Equity - MRP		4,418			20,469			24,887
Total Liabilities and Capital	$	91,641		$	60,196		$	151,837

Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued operations results of operations

	Three months ended						Six months ended
	June 30,						June 30,
	2018			2017			2018			2017
Revenues:
Rental revenue	$	3,394			5,472			9,412			10,998
Revenue – reimbursements		716			1,169			2,245			2,330
Total Revenues		4,110			6,641			11,657			13,328

Cost of operations:
Depreciation, depletion and amortization		1,217			1,929			3,102			3,762
Operating expenses		464			795			1,642			1,566
Property taxes		449			753			1,247			1,454
Management company indirect		812			168			990			333
Corporate expenses		655			—			1,402			—
Total cost of operations		3,597			3,645			8,383			7,115

Total operating profit		513			2,996			3,274			6,213

Interest expense		(187	)		(371	)		(587	)		(619	)
Gain on sale of buildings		164,807			—			164,807			—

Income before income taxes		165,133			2,625			167,494			5,594
Provision for income taxes		44,668			1,037			45,307			2,210

Income from discontinued operations	$	120,465			1,588			122,187			3,384

Discontinued operations balance sheet components

	June 30		December 31
Assets:	2018		2017
Real estate investments at cost:
Land	$	546		40,465
Buildings and improvements		3,315		186,657
Projects under construction		—		6,617
Total investments in properties		3,861		233,739
Less accumulated depreciation and depletion		2,331		68,049
Net investments in properties		1,530		165,690

Accounts receivable, net		332		405
Unrealized rents		94		4,088
Deferred costs		251		6,509
Other assets		3		2
Assets of discontinued operations	$	2,210		176,694

Liabilities:
Secured notes payable, current portion	$	—		23,825
Secured notes payable, less current portion		—		4,338
Accounts payable and accrued liabilities		189		2,289
Deferred revenue		2		967
Federal and state income taxes payable		46,228		—
Tenant security deposits		37		861
Liabilities of discontinued operations	$	46,456		32,280

Business Segments - Business segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Revenues	$ 5,553	$ 2,719	$ 10,628	$ 5,354
Operating profit	(456)	990	(359)	1,177
Interest expense	807	0	1,650	0
Depreciation, depletion and amortization	2,131	273	4,529	499
Cash items	311,422		311,422		$ 4,524
Total identifiable net assets	549,944		549,944		418,734
Unallocated
Segment Reporting Information [Line Items]
Corporate expenses	(1,170)	(294)	(1,208)	(983)
Discontinued Operations, Disposed of by Sale [Member]
Segment Reporting Information [Line Items]
Revenues	4,110	6,641	11,657	13,328
Operating profit	513	2,996	3,274	6,213
Interest expense	187	371	587	619
Depreciation, depletion and amortization	1,217	1,929	3,102	3,762
Total identifiable net assets	2,210		2,210		176,694
Asset Management
Segment Reporting Information [Line Items]
Revenues	568	553	1,149	1,151
Operating profit (loss) before corporate expenses	258	238	507	522
Corporate expenses	(109)	(27)	(112)	(91)
Capital expenditures	6	4	167	31
Depreciation, depletion and amortization	129	128	260	260
Total identifiable net assets	10,594		10,594		2,960
Mining royalty lands
Segment Reporting Information [Line Items]
Revenues	2,055	1,833	3,827	3,595
Operating profit (loss) before corporate expenses	1,918	1,701	3,536	3,326
Corporate expenses	(52)	(28)	(129)	(94)
Capital expenditures	0	0	0	0
Depreciation, depletion and amortization	36	35	90	74
Total identifiable net assets	38,606		38,606		38,656
Land Development and Construction
Segment Reporting Information [Line Items]
Revenues	317	333	614	608
Operating profit (loss) before corporate expenses	(630)	(383)	(1,007)	(778)
Corporate expenses	(283)	(217)	(702)	(725)
Capital expenditures	1,018	482	1,310	1,707
Depreciation, depletion and amortization	57	110	114	165
Total identifiable net assets	45,017		45,017		46,684
RiverFront on the Anacostia
Segment Reporting Information [Line Items]
Revenues	2,613	0	5,038	0
Operating profit (loss) before corporate expenses	(293)	0	(1,007)	0
Corporate expenses	(95)	0	(237)	0
Capital expenditures	185	0	(58)	0
Depreciation, depletion and amortization	1,909	0	4,065	0
Total identifiable net assets	140,257	151,837	140,257	151,837	$ 144,386
Corporate
Segment Reporting Information [Line Items]
Total identifiable net assets	1,838	4,830	1,838	4,830
Total Segments
Segment Reporting Information [Line Items]
Revenues	5,553	2,719	10,628	5,354
Operating profit (loss) before corporate expenses	1,253	1,556	2,029	3,070
Operating profit	(456)	990	(359)	1,177
Corporate expenses	(1,709)	(566)	(2,388)	(1,893)
Interest expense	807	0	1,650	0
Capital expenditures	1,209	486	1,419	1,738
Depreciation, depletion and amortization	$ 2,131	$ 273	$ 4,529	$ 499

Long-term debt (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
5.6% to 8% mortgage notes due in installments through 2027	$ 0	$ 29,664
Riverfront permanent loan	88,720	88,653
Total debt	88,720	118,317
Less portion due within one year	0	4,463
Long-term debt	$ 88,720	$ 113,854

Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share, Basic and Diluted [Abstract]
Weighted average common shares outstanding during the period - shares used for basic earnings per common share	10,033	9,965	10,024	9,948
Common shares issuable under share based payment plans which are potentially dilutive	76	73	75	71
Common shares used for diluted earnings per common share	10,109	10,038	10,099	10,019
Net income attributable to the Company	$ 119,982	$ 1,713	$ 121,542	$ 3,156
Earnings per common share:
Basic	$ 11.96	$ 0.17	$ 12.13	$ 0.32
Diluted	$ 11.87	$ 0.17	$ 12.04	$ 0.32

Summary of Stock Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) Years $ / shares shares	Dec. 31, 2017 USD ($) Years $ / shares shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options outstanding \| shares	155,158	174,510
Options granted \| shares	0
Options exercised \| shares	(19,352)
Options outstanding weighted average exercise price \| $ / shares	$ 28.81	$ 28.70
Options outstanding weighted average exercise price - Granted \| $ / shares	27.88
Options outstanding weighted average exercise price - Exercised \| $ / shares	$ 0
Options outstanding weighted average remaining term \| Years	5.5	6.0
Options outstanding weighted average grant date fair value \| $	$ 1,680	$ 1,901
Options granted weighted average grant date fair value \| $	0
Options exercised weighted average grant date fair value \| $	$ (221)
Options exercisable at June 30, 2018 \| shares	138,693
Options exerciseable weighted average exercise price \| $ / shares	$ 28.65
Options exerciseable weighted average remaining term \| Years	5.4
Options vested weighted average grant date fair value \| $	$ 454
Options vested during six months ended June 30, 2018 \| shares	138,693
Options exercisable weighted average grant date fair value \| $	$ 1,456

Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock option grants	$ 428	$ 33	$ 469	$ 110
Annual director stock award	683	0	683	445
Stock based compensation expense	$ 1,111	$ 33	$ 1,152	$ 555

Investments in Joint Ventures (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Jun. 30, 2016	Jun. 30, 2013	Oct. 04, 2006
Company's share of Net Loss of the Partnership	$ (11)	$ (806)	$ (23)	$ (1,577)
Revenue - Reimbursements	170	160	348	299
Total revenues	5,553	2,719	10,628	5,354
Operating expenses	1,103	207	1,968	437
Property taxes	611	376	1,286	737
Total cost of operations	6,009	1,729	10,987	4,177
Total operating profit	(456)	990	(359)	1,177
Interest expense	$ (807)	0	$ (1,650)	0
Brooksville Quarry, LLC
Ownership percent	50.00%		50.00%		50.00%			50.00%
Total Investment	$ 7,489		$ 7,489		$ 7,516
Total Assets of the Partnership	$ 14,406		14,406		14,411
Net Loss of the Partnership			(46)		(80)
Company's share of Net Loss of the Partnership			$ (23)		$ (40)
BC FRP Realty, LLC
Ownership percent	50.00%		50.00%		50.00%	50.00%
Total Investment	$ 5,945		$ 5,945		$ 5,890
Total Assets of the Partnership	$ 18,858		18,858		15,027
Net Loss of the Partnership			0		0
Company's share of Net Loss of the Partnership			$ 0		$ 0
RiverFront Holdings II, LLC
Ownership percent	80.00%		80.00%
Total Investment	$ 9,182		$ 9,182
Total Assets of the Partnership	15,267		15,267
Net Loss of the Partnership			0
Company's share of Net Loss of the Partnership			0
Riverfront Holdings I, LLC
Ownership percent					0.00%		77.14%
Total Investment		8,583		8,583	$ 0
Total Assets of the Partnership					0
Net Loss of the Partnership					(2,019)
Company's share of Net Loss of the Partnership					(1,558)
Rental revenue		1,742		3,053
Revenue - Reimbursements		18		33
Total revenues		1,760		3,086
Depreciation and amortization		1,095		1,958
Operating expenses		621		1,096
Property taxes		240		459
Total cost of operations		1,956		3,513
Total operating profit		(196)		(427)
Interest expense		(836)		(1,592)
Net loss of the Partnership		$ (1,032)		$ (2,019)
Joint Ventures
Total Investment	22,616		22,616		13,406
Total Assets of the Partnership	$ 48,531		48,531		29,438
Net Loss of the Partnership			(46)		(2,099)
Company's share of Net Loss of the Partnership			$ (23)		$ (1,598)

Consolidation of RiverFront Investment Partners I, LLC. - RiverFront remeasurement balance sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Land	$ 83,709	$ 87,235
Cash	32,849	4,524	$ 0	$ 0
Cash held in escrow	278,573	333
Accounts receivable	648	615
Total Assets	549,944	418,734
Long-term Debt	0	29,664
Total Liabilities and Capital	549,944	418,734
Gain on remeasurement
Land			21,107
Building and improvements, net			34,362
Value of leases in place			4,727
Cash			0
Cash held in escrow			0
Accounts receivable			0
Prepaid expenses			0
Total Assets			60,196
Long-term Debt			0
Amortizable debt costs			0
Other liabilities			0
Equity – FRP			39,727
Equity - MRP			20,469
Total Liabilities and Capital			60,196
RiverFront on the Anacostia
Land			28,327
Building and improvements, net			116,135
Value of leases in place			4,727
Cash			2,295
Cash held in escrow			171
Accounts receivable			40
Prepaid expenses			142
Total Assets	$ 140,257	144,386	151,837
Long-term Debt			78,587
Amortizable debt costs			(852)
Other liabilities			905
Equity – FRP			48,310
Equity - MRP			24,887
Total Liabilities and Capital			151,837
Riverfront Holdings I, LLC
Land			7,220
Building and improvements, net			81,773
Value of leases in place			0
Cash			2,295
Cash held in escrow			171
Accounts receivable			40
Prepaid expenses			142
Total Assets			91,641
Long-term Debt			78,587
Amortizable debt costs			(852)
Other liabilities			905
Equity – FRP		$ 0	8,583
Equity - MRP			4,418
Total Liabilities and Capital			$ 91,641

Discontinued Operations - Discontinued operations results of operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Rental revenue	$ 3,350	$ 750	$ 6,497	$ 1,507
Revenue reimbursements	170	160	348	299
Total Revenues	5,553	2,719	10,628	5,354
Depreciation, depletion and amortization	2,131	273	4,529	499
Operating expenses	1,103	207	1,968	437
Property taxes	611	376	1,286	737
Management company indirect	455	307	816	611
Corporate expenses	1,709	566	2,388	1,893
Total cost of operations	6,009	1,729	10,987	4,177
Total operating profit	(456)	990	(359)	1,177
Interest expense	(807)	0	(1,650)	0
Income before income taxes	(1,058)	184	(1,811)	(400)
Provision for income taxes	(179)	59	(239)	(172)
Income from discontinued operations	120,465	1,588	122,187	3,384
Discontinued Operations, Disposed of by Sale [Member]
Rental revenue	3,394	5,472	9,412	10,998
Revenue reimbursements	716	1,169	2,245	2,330
Total Revenues	4,110	6,641	11,657	13,328
Depreciation, depletion and amortization	1,217	1,929	3,102	3,762
Operating expenses	464	795	1,642	1,566
Property taxes	449	753	1,247	1,454
Management company indirect	812	168	990	333
Corporate expenses	655	0	1,402	0
Total cost of operations	3,597	3,645	8,383	7,115
Total operating profit	513	2,996	3,274	6,213
Interest expense	(187)	(371)	(587)	(619)
Gain on sale of buildings	164,807	0	164,807	0
Income before income taxes	165,133	2,625	167,494	5,594
Provision for income taxes	44,668	1,037	45,307	2,210
Income from discontinued operations	$ 120,465	$ 1,588	$ 122,187	$ 3,384

Discontinued Operations - Discontinued operations balance sheet components (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Land	$ 83,709	$ 87,235
Buildings and improvements	146,580	147,670
Projects under construction	2,028	1,764
Total investments in properties	232,317	236,669
Less accumulated depreciation and depletion	28,446	26,755
Net investments in properties	203,871	209,914
Accounts receivable, net	648	615
Unrealized rents	595	223
Deferred costs	1,228	2,708
Other assets	178	179
Assets of discontinued operations	2,210	176,694
Secured notes payable, current portion	0	125
Secured notes payable, less current portion	88,720	90,029
Accounts payable and accrued liabilities	3,072	2,081
Deferred revenue	26	107
Federal and state income taxes payable	728	0
Tenant security deposits	47	54
Liabilities of discontinued operations	46,456	32,280
Discontinued Operations, Disposed of by Sale [Member]
Land	546	40,465
Buildings and improvements	3,315	186,657
Projects under construction	0	6,617
Total investments in properties	3,861	233,739
Less accumulated depreciation and depletion	2,331	68,049
Net investments in properties	1,530	165,690
Accounts receivable, net	332	405
Unrealized rents	94	4,088
Deferred costs	251	6,509
Other assets	3	2
Assets of discontinued operations	2,210	176,694
Secured notes payable, current portion	0	23,825
Secured notes payable, less current portion	0	4,338
Accounts payable and accrued liabilities	189	2,289
Deferred revenue	2	967
Federal and state income taxes payable	46,228	0
Tenant security deposits	37	861
Liabilities of discontinued operations	$ 46,456	$ 32,280

Description of Business and Basis of Presentation (Details Narrative) $ in Thousands	3 Months Ended
	Jun. 30, 2018 USD ($) integer	May 21, 2018 integer
Warehouse properties	3
Discontinued Operations, Disposed of by Sale [Member]
Warehouse properties		40
Land parcels		3
Sales price \| $	$ 347,200
Excluded [Member]
Warehouse properties	1
Property value \| $	$ 11,700

Business Segments (Details Narrative) $ in Thousands	3 Months Ended	6 Months Ended
Business Segments (Details Narrative) $ in Thousands	Jun. 30, 2018 USD ($) a integer	Jun. 30, 2018 USD ($) a Segments integer	May 21, 2018 integer	Jun. 30, 2017 ft²
Reportable business segments \| Segments		4
Warehouse properties	3	3
Discontinued Operations, Disposed of by Sale [Member]
Warehouse properties			40
Land parcels			3
Sales price \| $	$ 347,200
Excluded [Member]
Warehouse properties	1	1
Property value \| $	$ 11,700	$ 11,700
Mining royalty lands
Mining royalty lands acres \| a	15,000	15,000
Brooksville Quarry, LLC
Mining royalty lands acres \| a	4,280	4,280
RiverFront on the Anacostia
Square feet \| ft²				300,000
Stabilization percent leased and occupied				90.00%

Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Related Party Transactions [Abstract]
Charges/allocation related to Transition Services Agreement with Patriot	$ 370	$ 320	$ 729	$ 877

Long-Term Debt (Details Narrative) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended		12 Months Ended
Long-Term Debt (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 30, 2015	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Nov. 17, 2017	Jan. 30, 2015	Aug. 07, 2014
Mortgage interest description							5.6% to 8% mortgage notes due in installments through 2027
Capitalized interest	$ 263		$ 232		$ 499	$ 602
Prepayment penalty					3,420
Riverfront permanent loan	88,720	$ 88,653			$ 88,720		$ 88,653
Dock 79 Construction loan
RiverFront construction loan										$ 65,000
Interest rate										2.35%
Dock 79 EB5 Financing
RiverFront EB5 secondary financing										$ 17,000
Interest rate										4.95%
Dock 79 EagleBank
Term		120 months
Riverfront permanent loan								$ 90,000
Interest rate								4.125%
Payment terms		During the first 48 months of the loan term, the Joint Venture will make monthly payments of interest only, and thereafter, make monthly payments of principal and interest in equal installments based upon a 30-year amortization period.
Wells Fargo Bank, N.A.
Term				5 years
Revolving Credit Agreement									$ 20,000
Sublimit for standby letters of credit									$ 10,000
Commitment fee					0.15%
Letters of credit issued	2,202				$ 2,202
Borrowed under the revolver	0				0
Available for borrowing	17,798				17,798
Tangible net worth covenant	110,000				110,000
Available to pay dividends or repurchase stock	$ 166,000				$ 166,000
Interest rate over LIBOR					1.40%
Covenant compliance					all

Earnings per Share (Details Narrative) - shares	3 Months Ended		6 Months Ended
Earnings per Share (Details Narrative) - shares	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Anti-dilutive shares	0	13,610	0	22,422

Stock-Based Compensation Plans (Details Narrative) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018 USD ($) Years shares	Dec. 31, 2017 USD ($)	Jun. 29, 2018 $ / shares
Number of stock option plans	2
Options expire from date of grant	10 years
Exercisable installments	Immediate or 20% or 25%
Shares available for future issuance \| shares	532,217
Aggregate intrinsic value of exercisable in-the-money options	$ 5,007
Aggregate intrinsic value of outstanding in-the-money options	5,577
Market close price \| $ / shares			$ 64.75
Total unrecognized compensation cost of options granted but not yet vested	$ 114
Weighted average period for compensation to be recognized \| Years	2.3
Gains realized by option holders	$ 576
Expected minimum volatility	32.00%
Expected maximum volatility	43.00%
Risk-free interest rate minimum	0.60%
Risk-free interest rate maximum	4.20%
Expected life minimum \| Years	3
Expecited life maximum \| Years	7
Dividend yield	0.00%
Modification stock compensation expense		$ 41
Stock compensation expense for the vesting of option grants due to asset disposition	$ 402
Patriot Transportation
Gains realized by option holders	$ 528
Modification stock compensation expense		$ 150

Contingent Liabilities (Details Narrative) $ in Thousands	3 Months Ended
Contingent Liabilities (Details Narrative) $ in Thousands	Jun. 30, 2016 USD ($)
Contingent Liabilities
Environmental remediation expense	$ 2,000

Concentrations (Details Narrative) $ in Thousands	6 Months Ended
Concentrations (Details Narrative) $ in Thousands	Jun. 30, 2018 USD ($) integer
Tenants leasing mining locations \| integer	4
Mining Top Customer
Customer revenue concentration	14.00%
Accounts receivable concentration \| $	$ 274

Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Carrying amount of other long-term debt	$ 88,720	$ 118,317
Fair value of other long-term debt	87,436	$ 122,271
Fair Value, Measurements, Recurring [Member]
Assets measured at fair value	0
Liabilities measured at fair value	0
Fair Value, Measurements, NonRecurring [Member]
Assets measured at fair value	0
Liabilities measured at fair value	$ 0

Investments in Joint Ventures (Details Narrative) $ in Thousands	1 Months Ended	3 Months Ended			6 Months Ended			12 Months Ended
	May 31, 2016 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2006 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($) a ft²	Dec. 31, 2017 USD ($)	May 04, 2018	Sep. 28, 2017 USD ($)	Oct. 04, 2006 a
Company's share of the loss of the joint venture		$ 11	$ 806		$ 23	$ 1,577
Joint Venture consolidated retained earnings		(2,655)			(2,655)			$ (2,638)
Outstanding balance		$ 0			0			$ 29,664
Cash contribution					$ 4,671	$ 236
Construction loan description								5.6% to 8% mortgage notes due in installments through 2027
Eagle BankRiverFront Holdings II, OOC
Interest rate over LIBOR					3.25%
Construction loan description					.Â The loan from Eagle Bank allows draws of up to $71 million during construction at an interest rate of 3.25% over libor. The loan is interest only and matures in 36 months with a 12 month extension assuming completion of construction and at least one occupancy.Â There is a provision for an additional 72 months extension with a 30 year amortization of principal at 2.15% over 7 year US Treasury Constant if NOI is sufficient for a 9% yield.
Vulcan
Joint venture percentage stake											50.00%
Acres conributed \| a											553
Vulcan leasehold interest \| a											3,443
FRP additional contribution for land				$ 3,018
Additional land acquired \| a											288
St Johns Properties JV St Johns
Value of land contributed							$ 3,240
Joint venture percentage stake							50.00%
Acres conributed \| a							10
MRP
Joint venture percentage stake									510000.00%
Development fee					$ 750
Brooksville Quarry, LLC
Land acreage \| a											4,300
Joint venture percentage stake		50.00%			50.00%			50.00%			50.00%
Acres conributed \| a											3,443
Book value of land contribution				2,548
FRP additional contribution for land				$ 3,018
Additional land acquired \| a											288
Company's share of the loss of the joint venture					$ 23			$ 40
BC FRP Realty, LLC
Square feet \| ft²							329,000
Value of land contributed							$ 7,500
Joint venture percentage stake		50.00%			50.00%		50.00%	50.00%
Distribution received	$ 2,130
Acres conributed \| a							25
Company's share of the loss of the joint venture					$ 0			$ 0
Construction financing through September 15, 2022										$ 17,250
Construction financing through September 15, 2018										$ 330
Interest rate over LIBOR					2.50%
Outstanding balance		$ 5,869			$ 5,869
RiverFront Holdings II, LLC
Value of land contributed					$ 16,300
Joint venture percentage stake		80.00%			80.00%
Book value of land contribution					$ 4,600
Company's share of the loss of the joint venture					0
Cash contribution					$ 4,600

Consolidation of RiverFront Investment Partners I, LLC. (Details Narrative) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2013 USD ($)	Dec. 31, 2017 USD ($)	May 04, 2018	Jun. 30, 2017 ft²	Mar. 30, 2012 a ft²
Gain on remeasurement of investment of real estate partnership		$ 60,196
Noncontrolling Interest
Gain on remeasurement of investment of real estate partnership		$ 20,469
MRP
Joint venture percentage stake			510000.00%
Capital contribution	$ 5,553
Riverfront Holdings I, LLC
Square feet \| ft²					300,000
Retail square feet \| ft²					18,000
Area of land to develop \| a					2
Land acreage \| a					5.82
Value of land contributed	13,500
Book value of land contribution	6,165
Cash contributed	$ 4,866
Joint venture percentage stake	77.14%	0.00%
RiverFront on the Anacostia
Square feet \| ft²				300,000
Joint venture percentage stake				66.00%
Stabilization percent leased and occupied				90.00%

Discontinued Operations (Details Narrative) $ in Thousands	3 Months Ended
Discontinued Operations (Details Narrative) $ in Thousands	Jun. 30, 2018 USD ($) integer	May 21, 2018 integer
Warehouse properties	3
Discontinued Operations, Disposed of by Sale [Member]
Warehouse properties		40
Land parcels		3
Sales price \| $	$ 347,200
Excluded [Member]
Warehouse properties	1
Property value \| $	$ 11,700