FRP Holdings, Inc. (NASDAQ:FRPH) –
Fourth Quarter Consolidated Results of
Operations.
Net income for the fourth quarter of 2017 was
$13,203,000 or $1.31 per share versus $1,682,000 or $.17 per share
in the same period last year. Fourth quarter 2017 net income
included $12,043,000, or $1.20 per share, due to a reduction in the
provision for income taxes resulting from revaluing the company’s
net deferred tax liabilities per the Tax Cuts and Jobs Act of
2017. Total revenues were $12,455,000, up 30.9%, versus the
same period last year, primarily because of the addition of rental
revenues from Dock 79.
Fourth Quarter Segment Operating
Results.
Asset Management Segment:
Total revenues in this segment were $7,816,000,
up $495,000 or 6.8%, over the same period last year. Net
Operating Income (NOI) in this segment for the fourth quarter
increased slightly to $5,813,000, compared to $5,689,000 in the
same period last year. NOI growth lagged behind revenue
growth due to several factors. 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, 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 cash rent paid by
the tenant in the beginning of a lease is less than the GAAP-based
straight-lined rent. We ended the fourth quarter with
total occupied square feet of 3,707,724 versus 3,488,955 at the end
of the same period last year, an increase of 6.3% or 218,769 square
feet. Our overall occupancy rate was 93.1%.
Mining Royalty Lands Segment:
Total revenues in this segment were $1,860,000,
a decrease of 1%, versus $1,880,000 in the same period last
year. This drop is due to decreases in tonnage at several
locations because of down days associated with the hurricane along
with volumes returning to normal levels at Keuka and Newberry
Cement, among other factors. Total operating profit in this
segment was $1,696,000, a decrease of $12,000 versus $1,708,000 in
the same period last year.
In November, Lake County commissioners voted to
approve a permit to Cemex to mine our land in Lake Louisa. We
expect the county to issue the mining permit during the third
quarter of 2018. After an environmental survey and completing
the work necessary to prepare this site to become an active sand
mine, Cemex expects to begin mining by the end of 2019.
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:
- In February 2017, 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. This past quarter we finally passed
the appeal period for the PUD, and we expect to begin construction
in the second quarter of 2018.
- We are fully engaged in the formal process of seeking PUD
entitlements for our 118 acre tract in Hampstead, Md
- We began construction in the third quarter of this year on our
joint venture with St. John Properties and expect to complete
construction on the first building by the third quarter of
2018
- This past quarter we began construction on a 96,047 square foot
building at Patriot Business Center that we expect to finish in the
second quarter of 2018.
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 the year, Dock 79 was 96.7% leased
and 96.1% occupied. As the first “generation” of leases came
up for renewal this year, the renewal rate of 58% during the fiscal
year is in line with expectations while the average rent increase
of 3.74% during the fiscal year is stronger than we budgeted.
Finally, in November, we secured $90 million in permanent financing
for Phase I 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. A prepayment penalty of $440,000 and the remaining
deferred loan costs of $714,000 were recorded into interest expense
in the quarter ending December 31, 2017.
Calendar Year 2017 Consolidated Results
of Continuing Operations.
Net income for 2017 was $41,750,000 or $4.16 per
share versus $12,024,000 or $1.22 per share in the twelve months
ended September 30, 2016. 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
and the gain of $12,043,000, or $1.20 per share, due to a reduction
in the provision for income taxes resulting from revaluing the
company’s net deferred tax liabilities per the Tax Cuts and Jobs
Act of 2017. 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 the twelve months ended September 30, 2016
was also augmented by a prior year $1,000,000 remediation expense
recovery, but mitigated by a $620,000 increase 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 $43,191,000, up 15.3%, versus
the twelve months ended September 30, 2016. Consolidated
total operating profit was down 17.0% versus the twelve months
ended September 30, 2016 because of the over $5 million increase in
depreciation from the change in control of Dock 79.
Calendar Year 2017 Segment Operating
Results.
Asset Management Segment:
Total revenues in this segment were $29,873,000,
up $1,134,000 or 3.9%, over the twelve months ended September 30,
2016. The increase in revenue is due to the addition of new
buildings and increased total occupancy. Net Operating
Income in this segment for 2017 was $22,528,000, compared to
$21,944,000 in the twelve months ended September 30, 2016, an
increase of 2.7%.
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 $7,241,000,
a decrease of 3.9%, versus $7,533,000 in the twelve months ended
September 30, 2016. 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
$6,565,000, a decrease of $233,000 versus $6,798,000 in the twelve
months ended September 30, 2016.
In November, Lake County commissioners voted to
approve a permit to Cemex to mine our land in Lake Louisa. We
expect the county to issue the mining permit during the third
quarter of 2018. After an environmental survey and completing
the work necessary to prepare this site to become an active sand
mine, Cemex expects to begin mining by the end of 2019.
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 2017, 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. This past quarter we finally passed
the appeal period for the PUD, and we expect to begin construction
in the second quarter of 2018.
- 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.
- In the fourth quarter, we began construction on a 96,047 square
foot building at Patriot Business Center that we expect to finish
in the second quarter of 2018
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. This resulted in a gain on remeasurement
of investment of $60.2 million in the third quarter.
At the end of the year, Dock 79 was 96.7% leased
and 96.1% occupied. As the first “generation” of leases came
up for renewal this year, the renewal rate of 58% during the fiscal
year is in line with expectations while the average rent increase
of 3.74% during the fiscal year is stronger than we budgeted.
Finally, in November, we secured $90 million in permanent financing
for Phase I 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. A prepayment penalty of $440,000 and the remaining
deferred loan costs of $714,000 were recorded into interest expense
in the quarter ending December 31,
2017.
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. Because the new tax code
mitigates many of the reasons why we considered a REIT election, we
have tabled any decision for now.
Summary and Outlook.
2017 was a very big year for our company.
Over the last four quarters, we have reached stabilization at Dock
79, permanently financed it, permitted our quarries at Ft. Myers
and Lake Louisa, constructed and fully leased a brand new
warehouse, begun construction on our JV with St. John Properties,
and received formal approval of Phase II of Riverfront on the
Anacostia’s Planned Unit Development (PUD). In an ordinary
year, any one of these events would have been a major achievement
for this company. That they all happened over this past year
puts the last twelve months among the most important in our
history, the results of which will be generating value for this
company for a very long time.
Looking forward to 2018, there is still an
atypically high number of expiring leases to overcome in Asset
Management. From a development standpoint, the first half of
2018 will be very busy. We should finish construction on our last
warehouse at Patriot Business Park and begin construction on
another at Hollander; we will finance and begin construction on
Phase II of Riverfront on the Anacostia; and we expect to wrap up
construction on and begin finding tenants for the first building in
our JV with St. John Properties. We have every expectation
that mining royalties will grow and grow meaningfully, especially
with the increase in royalties from our Ft. Myers quarry.
Finally, as Dock 79 establishes itself as the premier waterfront
residential building in the most exciting neighborhood of our
nation’s capital, we anticipate revenue growth particularly as we
begin to collect rent from our retail tenants.
Conference Call.
The Company will host a conference call on
Wednesday, March 7, 2018 at 2:00 p.m. (EST). 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/frp030718. For the
archived audio via the internet, click on the following link
http://archive.conferenceamerica.com/archivestream/frp030718.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, 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.
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, (iii)
land acquisition, entitlement and development primarily for future
warehouse/office or residential building construction, and (iv)
leasing and management of a residential apartment building.
|
FRP HOLDINGS, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
INCOME |
(In thousands except per share amounts) |
(Unaudited) |
|
|
|
THREE MONTHS ENDED |
|
TWELVE MONTHS ENDED |
|
|
|
DECEMBER 31, |
|
DECEMBER 31, |
|
SEPTEMBER 30, |
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
revenue |
|
$ |
9,142 |
|
|
6,328 |
|
|
30,385 |
|
|
24,457 |
|
Mining
Royalty and rents |
|
|
1,842 |
|
|
1,857 |
|
|
7,153 |
|
|
7,443 |
|
Revenue –
reimbursements |
|
|
1,471 |
|
|
1,327 |
|
|
5,653 |
|
|
5,557 |
|
Total Revenues |
|
|
12,455 |
|
|
9,512 |
|
|
43,191 |
|
|
37,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
4,502 |
|
|
2,095 |
|
|
13,532 |
|
|
8,051 |
|
Operating
expenses |
|
|
1,739 |
|
|
994 |
|
|
5,621 |
|
|
4,624 |
|
Environmental remediation recovery |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,000 |
) |
Property
taxes |
|
|
1,432 |
|
|
1,089 |
|
|
5,024 |
|
|
4,475 |
|
Management company indirect |
|
|
525 |
|
|
475 |
|
|
2,029 |
|
|
1,844 |
|
Corporate
expenses |
|
|
870 |
|
|
855 |
|
|
3,380 |
|
|
3,080 |
|
Total cost of
operations |
|
|
9,068 |
|
|
5,508 |
|
|
29,586 |
|
|
21,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
profit |
|
|
3,387 |
|
|
4,004 |
|
|
13,605 |
|
|
16,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
Interest expense |
|
|
(2,453 |
) |
|
(306 |
) |
|
(4,323 |
) |
|
(1,561 |
) |
Equity in loss of joint
ventures |
|
|
(9 |
) |
|
(1,119 |
) |
|
(1,598 |
) |
|
(978 |
) |
Gain on remeasurement
of investment in real estate partnership |
|
|
— |
|
|
— |
|
|
60,196 |
|
|
— |
|
Gain on investment land
sold |
|
|
— |
|
|
— |
|
|
— |
|
|
6,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
925 |
|
|
2,579 |
|
|
67,880 |
|
|
19,875 |
|
Provision for income
taxes |
|
|
(11,286 |
) |
|
897 |
|
|
7,329 |
|
|
7,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
12,211 |
|
|
1,682 |
|
|
60,551 |
|
|
12,024 |
|
Income (loss)
attributable to noncontrolling interest |
|
|
(992 |
) |
|
— |
|
|
18,801 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to the Company |
|
$ |
13,203 |
|
|
1,682 |
|
|
41,750 |
|
|
12,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.32 |
|
|
0.17 |
|
|
4.19 |
|
|
1.22 |
|
Diluted |
|
$ |
1.31 |
|
|
0.17 |
|
|
4.16 |
|
|
1.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares (in thousands) used in computing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-basic
earnings per common share |
|
|
10,011 |
|
|
9,879 |
|
|
9,975 |
|
|
9,846 |
|
-diluted
earnings per common share |
|
|
10,070 |
|
|
9,923 |
|
|
10,040 |
|
|
9,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management Segment:
|
|
Three months ended December 31 |
|
|
|
|
|
(dollars in
thousands) |
|
2017 |
|
|
% |
|
|
2016 |
|
|
% |
|
|
Change |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental revenue |
|
$ |
6,488 |
|
|
|
83.0 |
% |
|
|
6,148 |
|
|
|
84.0 |
% |
|
|
340 |
|
|
|
5.5 |
% |
Revenue-reimbursements |
|
|
1,328 |
|
|
|
17.0 |
% |
|
|
1,173 |
|
|
|
16.0 |
% |
|
|
155 |
|
|
|
13.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
7,816 |
|
|
|
100.0 |
% |
|
|
7,321 |
|
|
|
100.0 |
% |
|
|
495 |
|
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization |
|
|
1,998 |
|
|
|
25.6 |
% |
|
|
2,005 |
|
|
|
27.4 |
% |
|
|
(7 |
) |
|
|
-0.3 |
% |
Operating expenses |
|
|
1,033 |
|
|
|
13.2 |
% |
|
|
885 |
|
|
|
12.1 |
% |
|
|
148 |
|
|
|
16.7 |
% |
Property taxes |
|
|
839 |
|
|
|
10.7 |
% |
|
|
729 |
|
|
|
10.0 |
% |
|
|
110 |
|
|
|
15.1 |
% |
Management company
indirect |
|
|
218 |
|
|
|
2.8 |
% |
|
|
193 |
|
|
|
2.6 |
% |
|
|
25 |
|
|
|
13.0 |
% |
Corporate expense |
|
|
493 |
|
|
|
6.3 |
% |
|
|
485 |
|
|
|
6.6 |
% |
|
|
8 |
|
|
|
1.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
4,581 |
|
|
|
58.6 |
% |
|
|
4,297 |
|
|
|
58.7 |
% |
|
|
284 |
|
|
|
6.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
3,235 |
|
|
|
41.4 |
% |
|
|
3,024 |
|
|
|
41.3 |
% |
|
|
211 |
|
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining Royalty Lands Segment:
|
|
Three months ended December 31 |
|
(dollars in
thousands) |
|
2017 |
|
|
% |
|
|
2016 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining Royalty and
rents |
|
$ |
1,842 |
|
|
|
99.0 |
% |
|
|
1,857 |
|
|
|
98.8 |
% |
Revenue-reimbursements |
|
|
18 |
|
|
|
1.0 |
% |
|
|
23 |
|
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
1,860 |
|
|
|
100.0 |
% |
|
|
1,880 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization |
|
|
19 |
|
|
|
1.0 |
% |
|
|
35 |
|
|
|
1.8 |
% |
Operating expenses |
|
|
38 |
|
|
|
2.0 |
% |
|
|
41 |
|
|
|
2.2 |
% |
Property taxes |
|
|
64 |
|
|
|
3.5 |
% |
|
|
54 |
|
|
|
2.9 |
% |
Corporate expense |
|
|
43 |
|
|
|
2.3 |
% |
|
|
42 |
|
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
164 |
|
|
|
8.8 |
% |
|
|
172 |
|
|
|
9.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
1,696 |
|
|
|
91.2 |
% |
|
|
1,708 |
|
|
|
90.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Development and Construction Segment:
|
|
Three months ended December 31 |
|
|
(dollars in
thousands) |
|
2017 |
|
|
2016 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental revenue |
|
$ |
184 |
|
|
|
180 |
|
|
|
4 |
|
|
Revenue-reimbursements |
|
|
115 |
|
|
|
131 |
|
|
|
(16 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
299 |
|
|
|
311 |
|
|
|
(12 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization |
|
|
74 |
|
|
|
55 |
|
|
|
19 |
|
|
Operating expenses |
|
|
41 |
|
|
|
68 |
|
|
|
(27 |
) |
|
Property taxes |
|
|
277 |
|
|
|
306 |
|
|
|
(29 |
) |
|
Management company
indirect |
|
|
267 |
|
|
|
282 |
|
|
|
(15 |
) |
|
Corporate expense |
|
|
296 |
|
|
|
328 |
|
|
|
(32 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
955 |
|
|
|
1,039 |
|
|
|
(84 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(656 |
) |
|
|
(728 |
) |
|
|
72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dock 79 Segment:
|
|
Three Months Ended December 31 |
|
(dollars in
thousands) |
|
2017 |
|
|
% |
|
|
2016 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental revenue |
|
$ |
2,470 |
|
|
|
99.6 |
% |
|
|
— |
|
|
|
— |
% |
Revenue-reimbursements |
|
|
10 |
|
|
|
.4 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
2,480 |
|
|
|
100.0 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
2,411 |
|
|
|
97.2 |
% |
|
|
— |
|
|
|
— |
% |
Operating expenses |
|
|
627 |
|
|
|
25.3 |
% |
|
|
— |
|
|
|
— |
% |
Property taxes |
|
|
252 |
|
|
|
10.2 |
% |
|
|
— |
|
|
|
— |
% |
Management company
indirect |
|
|
40 |
|
|
|
1.6 |
% |
|
|
— |
|
|
|
|
|
Corporate expense |
|
|
38 |
|
|
|
1.5 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
3,368 |
|
|
|
135.8 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
(888 |
) |
|
|
-35.8 |
% |
|
$ |
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management Segment:
|
Twelve Months Ended |
|
|
|
|
|
|
December 31 |
|
|
September 30 |
|
|
|
|
|
(dollars in
thousands) |
2017 |
|
% |
|
|
2016 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental revenue |
$ |
24,773 |
|
|
|
82.9 |
% |
|
$ |
23,795 |
|
|
|
82.8 |
% |
|
$ |
978 |
|
|
|
4.1 |
% |
Revenue-reimbursements |
|
5,100 |
|
|
|
17.1 |
% |
|
|
4,944 |
|
|
|
17.2 |
% |
|
|
156 |
|
|
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
29,873 |
|
|
|
100.0 |
% |
|
|
28,739 |
|
|
|
100.0 |
% |
|
|
1,134 |
|
|
|
3.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization |
|
8,110 |
|
|
|
27.1 |
% |
|
|
7,689 |
|
|
|
26.8 |
% |
|
|
421 |
|
|
|
5.5 |
% |
Operating expenses |
|
3,974 |
|
|
|
13.3 |
% |
|
|
4,145 |
|
|
|
14.4 |
% |
|
|
(171 |
) |
|
|
-4.1 |
% |
Property taxes |
|
3,156 |
|
|
|
10.6 |
% |
|
|
2,718 |
|
|
|
9.5 |
% |
|
|
438 |
|
|
|
16.1 |
% |
Management company
indirect |
|
834 |
|
|
|
2.8 |
% |
|
|
813 |
|
|
|
2.8 |
% |
|
|
21 |
|
|
|
2.6 |
% |
Corporate expense |
|
1,917 |
|
|
|
6.4 |
% |
|
|
1,591 |
|
|
|
5.5 |
% |
|
|
326 |
|
|
|
20.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
17,991 |
|
|
|
60.2 |
% |
|
|
16,956 |
|
|
|
59.0 |
% |
|
|
1,035 |
|
|
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
$ |
11,882 |
|
|
|
39.8 |
% |
|
$ |
11,783 |
|
|
|
41.0 |
% |
|
$ |
99 |
|
|
|
.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining Royalty Lands Segment:
|
|
Twelve Months Ended |
|
|
|
December 31 |
|
|
September 30 |
|
(dollars in
thousands) |
|
2017 |
|
|
% |
|
|
2016 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining Royalty and
rents |
|
$ |
7,153 |
|
|
|
98.8 |
% |
|
|
7,443 |
|
|
|
98.8 |
% |
Revenue-reimbursements |
|
|
88 |
|
|
|
1.2 |
% |
|
|
90 |
|
|
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
7,241 |
|
|
|
100.0 |
% |
|
|
7,533 |
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization |
|
|
110 |
|
|
|
1.5 |
% |
|
|
104 |
|
|
|
1.4 |
% |
Operating expenses |
|
|
159 |
|
|
|
2.2 |
% |
|
|
165 |
|
|
|
2.2 |
% |
Property taxes |
|
|
240 |
|
|
|
3.3 |
% |
|
|
235 |
|
|
|
3.1 |
% |
Corporate expense |
|
|
167 |
|
|
|
2.3 |
% |
|
|
231 |
|
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
676 |
|
|
|
9.3 |
% |
|
|
735 |
|
|
|
9.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
6,565 |
|
|
|
90.7 |
% |
|
$ |
6,798 |
|
|
|
90.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Development and Construction Segment:
|
|
Twelve months Ended |
|
|
|
|
December 31 |
|
|
September 30 |
|
|
|
|
|
(dollars in
thousands) |
|
2017 |
|
|
2016 |
|
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental revenue |
|
$ |
785 |
|
|
|
662 |
|
|
|
123 |
|
|
Revenue-reimbursements |
|
|
445 |
|
|
|
523 |
|
|
|
(78 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
1,230 |
|
|
|
1,185 |
|
|
|
45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion
and amortization |
|
|
337 |
|
|
|
258 |
|
|
|
79 |
|
|
Operating expenses |
|
|
200 |
|
|
|
314 |
|
|
|
(114 |
) |
|
Environmental
remediation recovery |
|
|
— |
|
|
|
(1,000 |
) |
|
|
1,000 |
|
|
Property taxes |
|
|
1,108 |
|
|
|
1,522 |
|
|
|
(414 |
) |
|
Management company
indirect |
|
|
1,113 |
|
|
|
1,031 |
|
|
|
82 |
|
|
Corporate expense |
|
|
1,231 |
|
|
|
1,258 |
|
|
|
(27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
3,989 |
|
|
|
3,383 |
|
|
|
606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(2,759 |
) |
|
|
(2,198 |
) |
|
|
(561 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dock 79 Segment:
|
|
Twelve Months Ended |
|
|
|
December 31 |
|
|
September 30 |
|
(dollars in
thousands) |
|
2017 |
|
|
% |
|
|
2016 |
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental revenue |
|
$ |
4,827 |
|
|
|
99.6 |
% |
|
|
— |
|
|
|
— |
% |
Revenue-reimbursements |
|
|
20 |
|
|
|
.4 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
4,847 |
|
|
|
100.0 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
4,975 |
|
|
|
102.7 |
% |
|
|
— |
|
|
|
— |
% |
Operating expenses |
|
|
1,288 |
|
|
|
26.6 |
% |
|
|
— |
|
|
|
— |
% |
Property taxes |
|
|
520 |
|
|
|
10.7 |
% |
|
|
— |
|
|
|
— |
% |
Management company
indirect |
|
|
82 |
|
|
|
1.7 |
% |
|
|
— |
|
|
|
|
|
Corporate expense |
|
|
65 |
|
|
|
1.3 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
6,930 |
|
|
|
143.0 |
% |
|
|
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
(2,083 |
) |
|
|
-43.0 |
% |
|
$ |
— |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
12/31/17 (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset |
|
Land |
|
|
|
|
Mining |
|
Unallocated |
|
|
FRP |
|
|
|
Management |
|
Development |
|
|
Dock 79 |
|
|
Royalties |
|
Corporate |
|
|
Holdings |
|
|
|
Segment |
|
Segment |
|
|
Segment |
|
|
Segment |
|
Expense |
|
|
Totals |
|
Income (loss) from
continuing operations |
|
|
1,747 |
|
|
(397 |
) |
|
|
(2,203 |
) |
|
|
1,021 |
|
|
12,043 |
|
|
|
12,211 |
|
Income Tax
Allocation |
|
|
1,141 |
|
|
(259 |
) |
|
|
(791 |
) |
|
|
666 |
|
|
(12,043 |
) |
|
|
(11,286 |
) |
Income (loss) from
continuing operations before income taxes |
|
|
2,888 |
|
|
(656 |
) |
|
|
(2,994 |
) |
|
|
1,687 |
|
|
— |
|
|
|
925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
intangible rents |
|
|
1 |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
|
131 |
|
|
— |
|
|
|
73 |
|
|
|
|
|
|
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense |
|
|
347 |
|
|
— |
|
|
|
2,106 |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/Amortization |
|
|
1,999 |
|
|
72 |
|
|
|
2,411 |
|
|
|
|
|
|
|
|
|
|
|
|
Management Co. Indirect |
|
|
218 |
|
|
267 |
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses |
|
|
493 |
|
|
296 |
|
|
|
38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss) |
|
|
5,813 |
|
|
(21 |
) |
|
|
1,528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Operating Income Reconciliation |
Three
months ended 12/31/16 (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset |
|
|
Land |
|
|
Mining |
|
|
|
FRP |
|
|
|
Management |
|
|
Development |
|
|
Royalties |
|
|
|
Holdings |
|
|
|
Segment |
|
|
Segment |
|
|
Segment |
|
|
|
Totals |
|
|
Income (loss) from
continuing operations |
1,644 |
|
|
(1,115 |
) |
|
1,153 |
|
|
|
1,682 |
|
|
Income Tax
Allocation |
1,074 |
|
|
(728 |
) |
|
551 |
|
|
|
897 |
|
|
Income (loss) from
continuing operations before income taxes |
2,718 |
|
|
(1,843 |
) |
|
1,704 |
|
|
|
2,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease
intangible rents |
4 |
|
|
— |
|
|
|
|
|
|
|
|
|
Unrealized rents |
14 |
|
|
— |
|
|
|
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in
loss of Joint Venture |
— |
|
|
1,115 |
|
|
|
|
|
|
|
|
|
Interest
Expense |
306 |
|
|
— |
|
|
|
|
|
|
|
|
|
Depreciation/Amortization |
2,005 |
|
|
55 |
|
|
|
|
|
|
|
|
|
Management Co. Indirect |
193 |
|
|
282 |
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses |
485 |
|
|
328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss) |
5,689 |
|
|
(63 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
12/31/17 (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset |
|
Land |
|
|
|
|
Mining |
|
Unallocated |
|
|
FRP |
|
|
|
Management |
|
Development |
|
|
Dock 79 |
|
|
Royalties |
|
Corporate |
|
|
Holdings |
|
|
|
Segment |
|
Segment |
|
|
Segment |
|
|
Segment |
|
Expense |
|
|
Totals |
|
Income (loss) from
continuing operations |
|
|
6,392 |
|
|
(1,677 |
) |
|
|
39,837 |
|
|
|
3,956 |
|
|
12,043 |
|
|
|
60,551 |
|
Income Tax
Allocation |
|
|
4,150 |
|
|
(1,082 |
) |
|
|
13,735 |
|
|
|
2,569 |
|
|
(12,043 |
) |
|
|
7,329 |
|
Income (loss)
from continuing operations before income taxes |
|
|
10,542 |
|
|
(2,759 |
) |
|
|
53,572 |
|
|
|
6,525 |
|
|
— |
|
|
|
67,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on
remeasurement of investment in real estate partnership |
|
|
— |
|
|
— |
|
|
|
60,196 |
|
|
|
|
|
|
|
|
|
|
|
|
Lease
intangible rents |
|
|
6 |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
|
210 |
|
|
— |
|
|
|
123 |
|
|
|
|
|
|
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in
loss of Joint Venture |
|
|
— |
|
|
— |
|
|
|
1,558 |
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense |
|
|
1,340 |
|
|
— |
|
|
|
2,983 |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation/Amortization |
|
|
8,111 |
|
|
335 |
|
|
|
4,975 |
|
|
|
|
|
|
|
|
|
|
|
|
Management Co. Indirect |
|
|
834 |
|
|
1,113 |
|
|
|
82 |
|
|
|
|
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses |
|
|
1,917 |
|
|
1,231 |
|
|
|
65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss) |
|
|
22,528 |
|
|
(80 |
) |
|
|
2,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Operating Income Reconciliation |
Twelve
months ended 9/30/16 (in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset |
|
|
Land |
|
|
Mining |
|
|
FRP |
|
|
|
Management |
|
|
Development |
|
|
Royalties |
|
|
Holdings |
|
|
|
Segment |
|
|
Segment |
|
|
Segment |
|
|
Totals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations |
6,188 |
|
|
1,738 |
|
|
4,098 |
|
|
12,024 |
|
|
Income Tax
Allocation |
4,041 |
|
|
1,134 |
|
|
2,676 |
|
|
7,851 |
|
|
Inc. from continuing
operations before income taxes |
10,229 |
|
|
2,872 |
|
|
6,774 |
|
|
19,875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Gains on
investment land sold |
8 |
|
|
6,006 |
|
|
|
|
|
|
|
|
Lease
intangible rents |
27 |
|
|
— |
|
|
|
|
|
|
|
|
Other
income |
— |
|
|
2 |
|
|
|
|
|
|
|
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
95 |
|
|
— |
|
|
|
|
|
|
|
|
Equity in
loss of Joint Venture |
— |
|
|
938 |
|
|
|
|
|
|
|
|
Interest
Expense |
1,562 |
|
|
— |
|
|
|
|
|
|
|
|
Depreciation/Amortization |
7,689 |
|
|
258 |
|
|
|
|
|
|
|
|
Management Co. Indirect |
813 |
|
|
1,031 |
|
|
|
|
|
|
|
|
Allocated
Corporate Expenses |
1,591 |
|
|
1,257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating
Income |
21,944 |
|
|
348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:John D. Milton, Jr.Chief Financial
Officer904/858-9100
Grafico Azioni FRP (NASDAQ:FRPH)
Storico
Da Lug 2024 a Ago 2024
Grafico Azioni FRP (NASDAQ:FRPH)
Storico
Da Ago 2023 a Ago 2024