FRP Holdings, Inc. (NASDAQ:FRPH)
Third Quarter Consolidated Results of
Operations.
Net income for the third quarter of 2017 was
$25,391,000 or $2.52 per share versus $1,957,000 or $.20 per share
in the same period last year. The majority of this uptick in
income is the result of a gain on remeasurement of investment of
$60.2 million in its Dock 79 real estate partnership, which is
included in income from continuing operations before income taxes.
As a result of the stabilization of Dock 79, the Company is now
deemed for accounting purposes to have control of the partnership
without the transfer of any consideration. As such the
non-taxable gain on remeasurement was calculated based on the
difference between the carrying value and the fair value of all the
assets and liabilities of the partnership. The gain included
$4,727,000 related to the value of leases in place resulting in
amortization expense of $1,326,000 for the quarter. The lease
value is amortized over the life of the leases, 89% of that value
is scheduled to be expensed by June 30, 2018. The gain
included $34 million related to the building and improvements which
will result in additional deprecation of $220,000 quarterly. The
total gain related depreciation and amortization was $1,546,000
which explains the majority of the $1,480,000 reduction in
operating profit compared to the same quarter last year. Total
revenues were $12,054,000, up 23.3%, versus the same period last
year, primarily because of the addition of rental revenues from
Dock 79.
Third Quarter Segment Operating
Results.
Asset Management Segment:
Total revenues in this segment were $7,578,000,
up $255,000 or 3.5%, over the same period last year. Net
Operating Income (NOI) in this segment for the third quarter
declined slightly to $5,614,000, compared to $5,627,000 in the same
period last year. Several factors caused revenue to increase
while NOI remained stable. Revenues inclusive of
reimbursables and unrealized rents have increased over the same
period last year as a result of new buildings and increased
occupancy. However, the uptick in reimbursable expenses increased
revenue without increasing NOI, and the non-reimbursable expenses
did nothing for revenue and adversely affected NOI.
Additionally, cash-based NOI as calculated by the Company excludes
unrealized rents which are the result of “straight-lining” rental
revenue over the life of a lease, i.e. averaging the total rent of
the lease over the term. Thus, though revenue as calculated
by GAAP may be up because of new leases, cash-based NOI is not as
positively affected because the actual rent paid by the tenant in
the beginning of a lease is less than the GAAP-based straight-lined
rent. We ended the third quarter with total occupied
square feet of 3,637,236 versus 3,486,681 at the end of the same
period last year, an increase of 4.3% or 150,555 square feet.
Our overall occupancy rate was 91.3%.
Mining Royalty Lands Segment:
Total revenues in this segment were $1,786,000,
a decrease of 12%, versus $2,037,000 in the same period last
year. This drop is due to decreases in tonnage at several
locations because of weather, volumes returning to normal levels at
Keuka and Newberry Cement, and other factors. Total operating
profit in this segment was $1,637,000, a decrease of $229,000
versus $1,866,000 in the same period last year.
Land Development and Construction Segment:
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:
- Our new spec building at Patriot Business Center was placed in
service this past April and is currently 100% leased and
occupied
- In February, the D.C. Zoning Commission voted 5-0 in favor of
the Planned Unit Development (PUD) of Phase II of our RiverFront on
the Anacostia project. After formal publishing of the record
and a 35 day appeal period we anticipate formal approval by the end
of the year
- We are fully engaged in the formal process of seeking PUD
entitlements for our 118 acre tract in Hampstead, Md
- We made major progress this quarter in our joint venture with
St. John Properties on what remained of our Windlass Run Business
Park. The JV secured financing on a $17,580,000 construction
and development loan and began construction on what will be a
multi-building business park consisting of approximately 329,000
square feet of office and retail space.
Equity in loss of joint ventures was $12,000
because of the Brooksville Joint Venture.
RiverFront on the Anacostia Segment:
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 MRP, reached
stabilization, meaning 90% of the individual apartments have been
leased and are 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 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 and established the RiverFront on the Anacostia Segment as
its fourth segment.
At the end of September, Dock 79 was 96.4%
leased and 95.4% occupied. As the first “generation” of
leases came up for renewal this quarter, the renewal rate of 53% is
in line with expectations while the average rent increase of 3.89%
is stronger than we budgeted.
First Nine Months Consolidated Results
of Operations.
Net income for the first nine months of 2017 was
$28,547,000 or $2.84 per share versus $4,551,000 or $.46 per share
in the first nine months last year. The majority of this uptick in
income is the result of a gain on remeasurement of investment of
$60.2 million in its Dock 79 real estate partnership, which is
included in income from continuing operations before income taxes.
As a result of the stabilization of Dock 79, the Company is now
deemed for accounting purposes to have control of the partnership
without the transfer of any consideration. As such the
non-taxable gain on remeasurement was calculated based on the
difference between the carrying value and the fair value of all the
assets and liabilities of the partnership. This increase in net
income when compared to last year was also augmented by a prior
year $2,000,000 remediation expense offset by a $665,000 increase
this year in equity in loss of joint ventures, primarily as a
result of expenses and depreciation during the lease up of Phase I
(Dock 79) of RiverFront. Total revenues were $30,736,000, up 7.3%,
versus the first nine months last year. Consolidated total
operating profit was up 4.4%.
First Nine Months Segment Operating
Results.
Asset Management Segment:
Total revenues in this segment were $22,057,000,
up $233,000 or 1.1%, over the first nine months last year.
The increase in revenue is due to the addition of new buildings and
increased total occupancy. Net Operating Income in this
segment for the first nine months of 2017 was $16,715,000, compared
to $16,555,000 in the first nine months of 2016, an increase of 1%.
Depreciation and amortization expense increased
primarily because of the purchase of the Gilroy Center in Baltimore
County in July of 2016 and the completion of a 79,550 square foot
warehouse at Hollander Business Park in April 2016 and a 103,448
square foot warehouse at Patriot Business Center in April of
2017.
Corporate expense increased due to a first
quarter stock option modification expense of $191,000 and increased
internal and external audit expense incurred as a result of the
conversion from the previous fiscal year (ending September 30) to
one that follows the calendar year.
Mining Royalty Lands Segment:
Total revenues in this segment were $5,381,000,
a decrease of 8.4%, versus $5,874,000 in the first nine months last
year. This drop is due to decreases in tonnage at several
locations because of weather, volumes returning to normal levels at
Keuka and Newberry Cement, and other factors. Total operating
profit in this segment was $4,869,000, a decrease of $459,000
versus $5,328,000 in the first nine months last year.
Land Development and Construction Segment:
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:
- During the first quarter, we completed construction of the
bulkhead at our 664E property on the Anacostia ahead of schedule
and under budget.
- Our new spec building at Patriot Business Center was placed in
service this past April and is currently 100% leased and
occupied
- In February, the D.C. Zoning Commission voted 5-0 in favor of
the Planned Unit Development (PUD) of Phase II of our RiverFront on
the Anacostia project. After formal publishing of the record
and a 35 day appeal period we anticipate formal approval by the end
of the year
- We are fully engaged in the formal process of seeking PUD
entitlements for our 118 acre tract in Hampstead, Md
- We made major progress during the third quarter in our joint
venture with St. John Properties on what remained of our Windlass
Run Business Park. The JV secured financing on a $17,580,000
construction and development loan and began construction on what
will be a multi-building business park consisting of approximately
329,000 square feet of office and retail space.
Because of operating losses and depreciation
during the lease up of Dock 79, equity in loss of joint ventures
was $1,589,000 (including a loss of $31,000 in the Brooksville
Joint Venture).
RiverFront on the Anacostia Segment:
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 MRP, reached
stabilization, meaning 90% of the individual apartments have been
leased and are 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 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 and established the RiverFront on the Anacostia Segment as
its fourth segment.
At the end of September, Dock 79 was 96.4%
leased and 95.4% occupied. As the first “generation” of lease
came up for renewal this quarter, the renewal rate of 53% is in
line with expectations while the average rent increase of 3.89% is
stronger than we budgeted.
Potential REIT Conversion
We have for some time explored the possibility
of converting this company into a Real Estate Investment Trust
(REIT), with the idea that this may be a more efficient structure
given the nature of our business. In order to have the option
to convert to a REIT, the board has already elected to change from
our previous fiscal year (ending September 30), to a fiscal year
that follows the calendar year as is required of a REIT. This
change went into effect January 1, 2017 and required one-time
additional auditing expenses of $120,000 which were reflected in
2017. Thus, this past quarter, and every quarter ended
September 30 will now be the third quarter of our fiscal
year. Finally, consistent with having the option to
elect REIT status, we have contributed our mining reserves into a
wholly owned subsidiary. Because the parent company still
retains control of the land itself, the portion of the mining
royalties’ income that is not attributable to the reserves, but
instead more closely resembles ground rents, will be retained by
the parent company and will qualify as “REIT-able” income.
The subsidiary will receive only the income attributable to the
reserves it now controls. This structure is intended to
assure that we will meet the asset and income tests applicable to
REITs. These preliminary steps will not have a material impact on
our operations if the Company does not elect REIT status. Due to
the pending tax reform proposals now in Congress, we have decided
to defer the REIT election decision until 2018.
Summary and
Outlook
This past quarter was a momentous one across all
of our segments. Thanks to the amazing efforts of our
Baltimore office, Asset Management increased occupancy from 86.8%
at the end of June to our present occupancy of 91.3%, a remarkable
4.5% increase in the span of three months. After twenty years
of work by Florida Rock Industries and Vulcan Materials to get our
Ft. Myers property fully entitled, Mining Royalties saw the first
tons extracted from that quarry. Though production this past
quarter was offset by prepaid royalties, going forward, Vulcan’s
ability finally to realize the 16,000,000 tons of reserves at this
site should positively impact revenue and income as it creates an
opportunity to collect more than the minimums from this
location. Land Development and Construction got the latest
building at Patriot fully leased and occupied way ahead of
schedule, secured financing for our joint venture with St. John
properties, and began construction on the project as well.
The ability of this segment to turn vacant land into income
production is essential for the growth of the Company.
Finally, and perhaps most importantly, this past quarter saw the
stabilization and our subsequent consolidation of Dock 79 as the
joint venture achieved occupancy greater than 90%. That this
consolidation happened ahead of schedule and with stronger rents
than expected or budgeted is a testament to the efforts of our
partner and the high quality of the asset.
During the remainder of this year, we expect to
find permanent financing for Dock 79 and continue pre-development
activities for Phase II with the expectation that we will break
ground in the last quarter of this year or the first quarter of
2018. Finally, we have for some time been debating the merits
of converting this company into a REIT. Given the White
House’s stated intention to overhaul our federal tax code, and
because a change in the corporate income tax rate would mitigate
many of the advantages of becoming a REIT, we are delaying our
decision to elect REIT status until it is clear either way whether
there will be meaningful change in the corporate income tax
rate.
Conference
Call.
The Company will host a conference call on
Wednesday, November 1, 2017 at 2:00 p.m. (EDT). Analysts,
stockholders and other interested parties may access the
teleconference live by calling 1-800-311-9401 (pass code 92464)
within the United States. International callers may dial
1-334-323-7224 (pass code 92464). Computer audio live
streaming is available via the Internet through the Company’s
website at www.frpholdings.com. You may also click on this
link for the live streaming
http://stream.conferenceamerica.com/frp110117. For the
archived audio via the internet, click on the following link
http://archive.conferenceamerica.com/archivestream/frp110117.mp3.
If using the Company’s website, click on the Investor Relations
tab, then select the earnings conference stream. An audio
replay will be available for sixty days following the conference
call. To listen to the audio replay, dial toll free 1-877-919-4059,
international callers dial 1-334-323-0140. The passcode of
the audio replay is 52575111. Replay options: “1” begins
playback, “4” rewind 30 seconds, “5” pause, “6” fast forward 30
seconds, “0” instructions, and “9” exits recording. There may
be a 30-40 minute delay until the archive is available following
the conclusion of the conference call.
Investors are cautioned that any statements in
this press release which relate to the future are, by their nature,
subject to risks and uncertainties that could cause actual results
and events to differ materially from those indicated in such
forward-looking statements. These include, but are not limited to,
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, 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. In addition, if we elect
REIT status these risk factors also would include our ability to
qualify or to remain qualified as a REIT, our ability to satisfy
REIT distribution requirements, the impact of issuing equity, debt
or both, and selling assets to satisfy our future distributions
required as a REIT or to fund capital expenditures, future growth
and expansion initiatives, the impact of the amount and timing of
any future distributions, the impact from complying with REIT
qualification requirements limiting our flexibility or causing us
to forego otherwise attractive opportunities, our lack of
experience operating as a REIT, legislative, administrative,
regulatory or other actions affecting REITs, including positions
taken by the Internal Revenue Service, the possibility that our
Board of Directors will unilaterally revoke our REIT election, the
possibility that the anticipated benefits of qualifying as a REIT
will not be realized, or will not be realized within the expected
time period. We have no obligation to revise or update any
forward-looking statements, other than as imposed by law, as a
result of future events or new information. Readers are cautioned
not to place undue reliance on such forward-looking statements.
FRP Holdings, Inc. is a holding company engaged
in the real estate business, namely (i)
warehouse/office/residential building ownership, leasing and
management, (ii) mining royalty land ownership and leasing and
(iii) land acquisition, entitlement and development primarily for
future warehouse/office or residential building construction.
Contact:
John D. Milton, Jr.Chief Financial Officer904/858-9100
FRP HOLDINGS, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME(In
thousands except per share amounts)(Unaudited) |
|
|
|
THREE MONTHS ENDED |
|
NINE MONTHS ENDED |
|
|
SEPTEMBER 30, |
|
SEPTEMBER 30, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
revenue |
|
$ |
8,738 |
|
|
|
6,259 |
|
|
|
21,243 |
|
|
|
18,430 |
|
Mining
Royalty and rents |
|
|
1,763 |
|
|
|
2,016 |
|
|
|
5,311 |
|
|
|
5,805 |
|
Revenue –
reimbursements |
|
|
1,553 |
|
|
|
1,501 |
|
|
|
4,182 |
|
|
|
4,399 |
|
Total Revenues |
|
|
12,054 |
|
|
|
9,776 |
|
|
|
30,736 |
|
|
|
28,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
4,769 |
|
|
|
2,160 |
|
|
|
9,030 |
|
|
|
6,155 |
|
Operating
expenses |
|
|
1,879 |
|
|
|
1,146 |
|
|
|
3,882 |
|
|
|
3,651 |
|
Environmental remediation expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,000 |
|
Property
taxes |
|
|
1,401 |
|
|
|
1,087 |
|
|
|
3,592 |
|
|
|
3,357 |
|
Management company indirect |
|
|
560 |
|
|
|
419 |
|
|
|
1,504 |
|
|
|
1,340 |
|
Corporate
expenses |
|
|
617 |
|
|
|
656 |
|
|
|
2,510 |
|
|
|
2,348 |
|
Total cost of
operations |
|
|
9,226 |
|
|
|
5,468 |
|
|
|
20,518 |
|
|
|
18,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
profit |
|
|
2,828 |
|
|
|
4,308 |
|
|
|
10,218 |
|
|
|
9,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Interest expense |
|
|
(1,251 |
) |
|
|
(273 |
) |
|
|
(1,870 |
) |
|
|
(1,080 |
) |
Equity in loss of joint
ventures |
|
|
(12 |
) |
|
|
(652 |
) |
|
|
(1,589 |
) |
|
|
(924 |
) |
Gain on remeasurement
of investment in real estate Partnership |
|
|
60,196 |
|
|
|
— |
|
|
|
60,196 |
|
|
|
— |
|
(Loss) on investment
land sold |
|
|
— |
|
|
|
(148 |
) |
|
|
— |
|
|
|
(257 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
61,761 |
|
|
|
3,235 |
|
|
|
66,955 |
|
|
|
7,523 |
|
Provision for income
taxes |
|
|
16,577 |
|
|
|
1,278 |
|
|
|
18,615 |
|
|
|
2,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
45,184 |
|
|
|
1,957 |
|
|
|
48,340 |
|
|
|
4,551 |
|
Income attributable to
noncontrolling interest |
|
|
19,793 |
|
|
|
— |
|
|
|
19,793 |
|
|
|
— |
|
Net income
attributable to the Company |
|
$ |
25,391 |
|
|
|
1,957 |
|
|
|
28,547 |
|
|
|
4,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income |
|
$ |
25,391 |
|
|
|
1,957 |
|
|
|
28,547 |
|
|
|
4,551 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.54 |
|
|
|
0.20 |
|
|
|
2.86 |
|
|
|
0.46 |
|
Diluted |
|
$ |
2.52 |
|
|
|
0.20 |
|
|
|
2.84 |
|
|
|
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares (in thousands) used in
computing: |
|
|
|
|
|
|
|
|
|
|
|
-basic
earnings per common share |
|
|
10,004 |
|
|
|
9,865 |
|
|
|
9,967 |
|
|
|
9,860 |
|
-diluted
earnings per common share |
|
|
10,066 |
|
|
|
9,908 |
|
|
|
10,035 |
|
|
|
9,902 |
|
Asset Management Segment:
|
|
Three Months Ended September 30 |
|
|
|
|
|
(dollars in
thousands) |
|
2017 |
|
% |
|
2016 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental revenue |
|
$ |
6,174 |
|
|
|
81.5 |
% |
|
$ |
5,977 |
|
|
|
81.6 |
% |
|
$ |
197 |
|
|
|
3.3 |
% |
Revenue-reimbursements |
|
|
1,404 |
|
|
|
18.5 |
% |
|
|
1,346 |
|
|
|
18.4 |
% |
|
|
58 |
|
|
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
7,578 |
|
|
|
100.0 |
% |
|
|
7,323 |
|
|
|
100.0 |
% |
|
|
255 |
|
|
|
3.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization |
|
|
2,090 |
|
|
|
27.6 |
% |
|
|
2,071 |
|
|
|
28.3 |
% |
|
|
19 |
|
|
|
.9 |
% |
Operating expenses |
|
|
1,123 |
|
|
|
14.8 |
% |
|
|
1,102 |
|
|
|
15.0 |
% |
|
|
21 |
|
|
|
1.9 |
% |
Property taxes |
|
|
792 |
|
|
|
10.5 |
% |
|
|
729 |
|
|
|
10.0 |
% |
|
|
63 |
|
|
|
8.6 |
% |
Management company
indirect |
|
|
237 |
|
|
|
3.1 |
% |
|
|
176 |
|
|
|
2.4 |
% |
|
|
61 |
|
|
|
34.7 |
% |
Corporate expense |
|
|
350 |
|
|
|
4.6 |
% |
|
|
339 |
|
|
|
4.6 |
% |
|
|
11 |
|
|
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
4,592 |
|
|
|
60.6 |
% |
|
|
4,417 |
|
|
|
60.3 |
% |
|
|
175 |
|
|
|
4.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
2,986 |
|
|
|
39.4 |
% |
|
$ |
2,906 |
|
|
|
39.7 |
% |
|
$ |
80 |
|
|
|
2.8 |
% |
Mining Royalty Lands Segment:
|
|
Three Months Ended September 30 |
(dollars in
thousands) |
|
2017 |
|
% |
|
2016 |
|
% |
|
|
|
|
|
|
|
|
|
Mining Royalty and
rents |
|
$ |
1,763 |
|
|
|
98.7 |
% |
|
|
2,014 |
|
|
|
98.9 |
% |
Revenue-reimbursements |
|
|
23 |
|
|
|
1.3 |
% |
|
|
23 |
|
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
1,786 |
|
|
|
100.0 |
% |
|
|
2,037 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization |
|
|
17 |
|
|
|
.9 |
% |
|
|
24 |
|
|
|
1.2 |
% |
Operating expenses |
|
|
43 |
|
|
|
2.4 |
% |
|
|
40 |
|
|
|
2.0 |
% |
Property taxes |
|
|
59 |
|
|
|
3.3 |
% |
|
|
58 |
|
|
|
2.8 |
% |
Corporate expense |
|
|
30 |
|
|
|
1.7 |
% |
|
|
49 |
|
|
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
149 |
|
|
|
8.3 |
% |
|
|
171 |
|
|
|
8.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
1,637 |
|
|
|
91.7 |
% |
|
$ |
1,866 |
|
|
|
91.6 |
% |
Land Development and Construction Segment:
|
|
Three Months ended September 30 |
(dollars in
thousands) |
|
2017 |
|
2016 |
|
Change |
|
|
|
|
|
|
|
Rental revenue |
|
$ |
207 |
|
|
|
282 |
|
|
|
(75 |
) |
Royalty and rents |
|
|
— |
|
|
|
2 |
|
|
|
(2 |
) |
Revenue-reimbursements |
|
|
116 |
|
|
|
132 |
|
|
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
323 |
|
|
|
416 |
|
|
|
(93 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization |
|
|
98 |
|
|
|
65 |
|
|
|
33 |
|
Operating expenses |
|
|
52 |
|
|
|
4 |
|
|
|
48 |
|
Property taxes |
|
|
282 |
|
|
|
300 |
|
|
|
(18 |
) |
Management company
indirect |
|
|
281 |
|
|
|
243 |
|
|
|
38 |
|
Corporate expense |
|
|
210 |
|
|
|
268 |
|
|
|
(58 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
923 |
|
|
|
880 |
|
|
|
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(600 |
) |
|
|
(464 |
) |
|
|
(136 |
) |
Dock 79 Segment:
|
|
Three Months Ended September 30 |
(dollars in
thousands) |
|
2017 |
|
% |
|
2016 |
|
% |
|
|
|
|
|
|
|
|
|
Rental revenue |
|
$ |
2,357 |
|
|
|
99.6 |
% |
|
|
— |
|
|
|
— |
% |
Revenue-reimbursements |
|
|
10 |
|
|
|
.4 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
2,367 |
|
|
|
100.0 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
2,564 |
|
|
|
108.3 |
% |
|
|
— |
|
|
|
— |
% |
Operating expenses |
|
|
661 |
|
|
|
27.9 |
% |
|
|
— |
|
|
|
— |
% |
Property taxes |
|
|
268 |
|
|
|
11.3 |
% |
|
|
— |
|
|
|
— |
% |
Management company
indirect |
|
|
42 |
|
|
|
1.8 |
% |
|
|
— |
|
|
|
|
|
Corporate expense |
|
|
27 |
|
|
|
1.2 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
3,562 |
|
|
|
150.5 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
(1,195 |
) |
|
|
-50.5 |
% |
|
$ |
— |
|
|
|
— |
% |
Asset Management Segment:
|
|
Nine Months Ended September 30 |
|
|
|
|
|
(dollars in
thousands) |
|
2017 |
|
% |
|
2016 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental revenue |
|
$ |
18,285 |
|
|
|
82.9 |
% |
|
$ |
17,887 |
|
|
|
82.0 |
% |
|
$ |
398 |
|
|
|
2.2 |
% |
Revenue-reimbursements |
|
|
3,772 |
|
|
|
17.1 |
% |
|
|
3,937 |
|
|
|
18.0 |
% |
|
|
(165 |
) |
|
|
-4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
22,057 |
|
|
|
100.0 |
% |
|
|
21,824 |
|
|
|
100.0 |
% |
|
|
233 |
|
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization |
|
|
6,112 |
|
|
|
27.7 |
% |
|
|
5,891 |
|
|
|
27.0 |
% |
|
|
221 |
|
|
|
3.8 |
% |
Operating expenses |
|
|
2,941 |
|
|
|
13.3 |
% |
|
|
3,306 |
|
|
|
15.1 |
% |
|
|
(365 |
) |
|
|
-11.0 |
% |
Property taxes |
|
|
2,317 |
|
|
|
10.5 |
% |
|
|
2,059 |
|
|
|
9.4 |
% |
|
|
258 |
|
|
|
12.5 |
% |
Management company
indirect |
|
|
616 |
|
|
|
2.8 |
% |
|
|
582 |
|
|
|
2.7 |
% |
|
|
34 |
|
|
|
5.8 |
% |
Corporate expense |
|
|
1,424 |
|
|
|
6.5 |
% |
|
|
1,213 |
|
|
|
5.6 |
% |
|
|
211 |
|
|
|
17.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
13,410 |
|
|
|
60.8 |
% |
|
|
13,051 |
|
|
|
59.8 |
% |
|
|
359 |
|
|
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
8,647 |
|
|
|
39.2 |
% |
|
$ |
8,773 |
|
|
|
40.2 |
% |
|
$ |
(126 |
) |
|
|
-1.4 |
% |
Mining Royalty Lands Segment:
|
|
Nine Months Ended September 30 |
(dollars in
thousands) |
|
2017 |
|
% |
|
2016 |
|
% |
|
|
|
|
|
|
|
|
|
Mining Royalty and
rents |
|
$ |
5,311 |
|
|
|
98.7 |
% |
|
|
5,805 |
|
|
|
98.8 |
% |
Revenue-reimbursements |
|
|
70 |
|
|
|
1.3 |
% |
|
|
69 |
|
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
5,381 |
|
|
|
100.0 |
% |
|
|
5,874 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization |
|
|
91 |
|
|
|
1.7 |
% |
|
|
70 |
|
|
|
1.2 |
% |
Operating expenses |
|
|
121 |
|
|
|
2.2 |
% |
|
|
124 |
|
|
|
2.1 |
% |
Property taxes |
|
|
176 |
|
|
|
3.3 |
% |
|
|
176 |
|
|
|
3.0 |
% |
Corporate expense |
|
|
124 |
|
|
|
2.3 |
% |
|
|
176 |
|
|
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
512 |
|
|
|
9.5 |
% |
|
|
546 |
|
|
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
4,869 |
|
|
|
90.5 |
% |
|
$ |
5,328 |
|
|
|
90.7 |
% |
Land Development and Construction Segment:
|
|
Nine Months ended September 30 |
(dollars in
thousands) |
|
2017 |
|
2016 |
|
Change |
|
|
|
|
|
|
|
Rental revenue |
|
$ |
601 |
|
|
|
543 |
|
|
|
58 |
|
Revenue-reimbursements |
|
|
330 |
|
|
|
393 |
|
|
|
(63 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
931 |
|
|
|
936 |
|
|
|
(5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization |
|
|
263 |
|
|
|
194 |
|
|
|
69 |
|
Operating expenses |
|
|
159 |
|
|
|
221 |
|
|
|
(62 |
) |
Environmental
remediation expense |
|
|
— |
|
|
|
2,000 |
|
|
|
(2,000 |
) |
Property taxes |
|
|
831 |
|
|
|
1,122 |
|
|
|
(291 |
) |
Management company
indirect |
|
|
846 |
|
|
|
758 |
|
|
|
88 |
|
Corporate expense |
|
|
935 |
|
|
|
959 |
|
|
|
(24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
3,034 |
|
|
|
5,254 |
|
|
|
(2,220 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(2,103 |
) |
|
|
(4,318 |
) |
|
|
2,215 |
|
Dock 79 Segment:
|
|
Nine Months Ended September 30 |
(dollars in
thousands) |
|
2017 |
|
% |
|
2016 |
|
% |
|
|
|
|
|
|
|
|
|
Rental revenue |
|
$ |
2,357 |
|
|
|
99.6 |
% |
|
|
— |
|
|
|
— |
% |
Revenue-reimbursements |
|
|
10 |
|
|
|
.4 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
2,367 |
|
|
|
100.0 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
2,564 |
|
|
|
108.3 |
% |
|
|
— |
|
|
|
— |
% |
Operating expenses |
|
|
661 |
|
|
|
27.9 |
% |
|
|
— |
|
|
|
— |
% |
Property taxes |
|
|
268 |
|
|
|
11.3 |
% |
|
|
— |
|
|
|
— |
% |
Management company
indirect |
|
|
42 |
|
|
|
1.8 |
% |
|
|
— |
|
|
|
|
|
Corporate expense |
|
|
27 |
|
|
|
1.2 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
3,562 |
|
|
|
150.5 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
(1,195 |
) |
|
|
-50.5 |
% |
|
$ |
— |
|
|
|
— |
% |
Non-GAAP Financial
Measures.
To supplement the financial results presented in
accordance with GAAP, FRP presents certain non-GAAP financial
measures within the meaning of Regulation G promulgated by the
Securities and Exchange Commission. The non-GAAP financial measure
included in this quarterly report are net operating income (NOI).
FRP uses these non-GAAP financial measures to analyze its
continuing operations and to monitor, assess, and identify
meaningful trends in its operating and financial performance. These
measures are not, and should not be viewed as, substitutes for GAAP
financial measures.
Net Operating Income
Reconciliation |
|
|
|
|
|
|
|
|
|
|
Three months ended
09/30/17 (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Asset |
|
Land |
|
|
|
Mining |
|
FRP |
|
|
Management |
|
Development |
|
Dock 79 |
|
Royalties |
|
Holdings |
|
|
Segment |
|
Segment |
|
Segment |
|
Segment |
|
Totals |
Income from continuing
operations |
|
|
1,581 |
|
|
|
580 |
|
|
|
42,040 |
|
|
|
983 |
|
|
|
45,184 |
|
Income Tax
Allocation |
|
|
1,031 |
|
|
|
378 |
|
|
|
14,526 |
|
|
|
642 |
|
|
|
16,577 |
|
Income from continuing
operations before income taxes |
|
|
2,612 |
|
|
|
958 |
|
|
|
56,566 |
|
|
|
1,625 |
|
|
|
61,761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on remeasurement
of investment in real estate partnership |
|
|
— |
|
|
|
— |
|
|
|
60,196 |
|
|
|
|
|
|
|
|
|
Equity in Joint
Venture |
|
|
— |
|
|
|
1,558 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
Lease intangible
rents |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
|
48 |
|
|
|
— |
|
|
|
50 |
|
|
|
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss of Joint
Venture |
|
|
— |
|
|
|
— |
|
|
|
1,558 |
|
|
|
|
|
|
|
|
|
Interest Expense |
|
|
374 |
|
|
|
— |
|
|
|
877 |
|
|
|
|
|
|
|
|
|
Depreciation/Amortization |
|
|
2,090 |
|
|
|
98 |
|
|
|
2,564 |
|
|
|
|
|
|
|
|
|
Management Co.
Indirect |
|
|
237 |
|
|
|
281 |
|
|
|
42 |
|
|
|
|
|
|
|
|
|
Allocated Corporate
Expenses |
|
|
350 |
|
|
|
210 |
|
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss) |
|
|
5,614 |
|
|
|
(11 |
) |
|
|
1,388 |
|
|
|
|
|
|
|
|
|
Net
Operating Income Reconciliation |
Three
months ended 09/30/16 (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset |
|
|
Land |
|
|
Mining |
|
|
|
FRP |
|
|
|
Management |
|
|
Development |
|
|
Royalties |
|
|
|
Holdings |
|
|
|
Segment |
|
|
Segment |
|
|
Segment |
|
|
|
Totals |
|
|
Income (loss) from
continuing operations |
1,592 |
|
|
(758 |
) |
|
1,123 |
|
|
|
1,957 |
|
|
Income Tax
Allocation |
1,039 |
|
|
(495 |
) |
|
734 |
|
|
|
1,278 |
|
|
Inc. (loss) from
continuing operations before income taxes |
2,631 |
|
|
(1,253 |
) |
|
1,857 |
|
|
|
3,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease intangible
rents |
4 |
|
|
— |
|
|
|
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
139 |
|
|
— |
|
|
|
|
|
|
|
|
|
Equity in loss of Joint
Venture |
— |
|
|
642 |
|
|
|
|
|
|
|
|
|
Loss on investment land
sold |
1 |
|
|
148 |
|
|
|
|
|
|
|
|
|
Interest Expense |
274 |
|
|
— |
|
|
|
|
|
|
|
|
|
Depreciation/Amortization |
2,071 |
|
|
65 |
|
|
|
|
|
|
|
|
|
Management Co.
Indirect |
176 |
|
|
243 |
|
|
|
|
|
|
|
|
|
Allocated Corporate
Expenses |
339 |
|
|
267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating
Income |
5,627 |
|
|
112 |
|
|
|
|
|
|
|
|
|
Net Operating Income
Reconciliation |
|
|
|
|
|
|
|
|
|
|
Nine months ended
09/30/17 (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Asset |
|
Land |
|
|
|
Mining |
|
FRP |
|
|
Management |
|
Development |
|
Dock 79 |
|
Royalties |
|
Holdings |
|
|
Segment |
|
Segment |
|
Segment |
|
Segment |
|
Totals |
Income (loss) from
continuing operations |
|
|
4,645 |
|
|
|
(1,280 |
) |
|
|
42,040 |
|
|
|
2,935 |
|
|
|
48,340 |
|
Income Tax
Allocation |
|
|
3,009 |
|
|
|
(823 |
) |
|
|
14,526 |
|
|
|
1,903 |
|
|
|
18,615 |
|
Inc. (loss) from
continuing operations before income taxes |
|
|
7,654 |
|
|
|
(2,103 |
) |
|
|
56,566 |
|
|
|
4,838 |
|
|
|
66,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on remeasurement
of investment in real estate partnership |
|
|
— |
|
|
|
— |
|
|
|
60,196 |
|
|
|
|
|
|
|
|
|
Lease intangible
rents |
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
|
79 |
|
|
|
— |
|
|
|
50 |
|
|
|
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss of Joint
Venture |
|
|
— |
|
|
|
— |
|
|
|
1,558 |
|
|
|
|
|
|
|
|
|
Interest Expense |
|
|
993 |
|
|
|
— |
|
|
|
877 |
|
|
|
|
|
|
|
|
|
Depreciation/Amortization |
|
|
6,112 |
|
|
|
263 |
|
|
|
2,564 |
|
|
|
|
|
|
|
|
|
Management Co.
Indirect |
|
|
616 |
|
|
|
846 |
|
|
|
42 |
|
|
|
|
|
|
|
|
|
Allocated Corporate
Expenses |
|
|
1,424 |
|
|
|
935 |
|
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss) |
|
|
16,715 |
|
|
|
(59 |
) |
|
|
1,388 |
|
|
|
|
|
|
|
|
|
Net
Operating Income Reconciliation |
Nine
months ended 09/30/16 (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset |
|
|
Land |
|
|
Mining |
|
|
|
FRP |
|
|
|
Management |
|
|
Development |
|
|
Royalties |
|
|
|
Holdings |
|
|
|
Segment |
|
|
Segment |
|
|
Segment |
|
|
|
Totals |
|
|
Income (loss) from
continuing operations |
4,654 |
|
|
(3,316 |
) |
|
3,213 |
|
|
|
4,551 |
|
|
Income Tax
Allocation |
3,038 |
|
|
(2,165 |
) |
|
2,099 |
|
|
|
2,972 |
|
|
Inc. (loss) from
continuing operations before income taxes |
7,692 |
|
|
(5,481 |
) |
|
5,312 |
|
|
|
7,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease intangible
rents |
13 |
|
|
— |
|
|
|
|
|
|
|
|
|
Other income |
— |
|
|
1 |
|
|
|
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
rents |
109 |
|
|
— |
|
|
|
|
|
|
|
|
|
Equity in loss of
Joint Venture |
— |
|
|
893 |
|
|
|
|
|
|
|
|
|
Loss on
investment land sold |
1 |
|
|
271 |
|
|
|
|
|
|
|
|
|
Interest
Expense |
1,080 |
|
|
— |
|
|
|
|
|
|
|
|
|
Depreciation/Amortization |
5,891 |
|
|
194 |
|
|
|
|
|
|
|
|
|
Management Co.
Indirect |
582 |
|
|
758 |
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses |
1,213 |
|
|
959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss) |
16,555 |
|
|
(2,407 |
) |
|
|
|
|
|
|
|
|
Grafico Azioni FRP (NASDAQ:FRPH)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni FRP (NASDAQ:FRPH)
Storico
Da Lug 2023 a Lug 2024