FRP Holdings, Inc. (NASDAQ-FRPH) –
Second Quarter Operational
Highlights
- Dock 79 ended the reporting period
with average residential occupancy above 95% for the fifth straight
quarter
- 7.33% increase on renewals at Dock
79
- Best second quarter of revenue for
mining royalties in segment’s history
- 55.1% increase in Asset Management
Revenue versus same period last year
- 16.0% increase in NOI ($6.94
million vs $5.98 million) compared to same period last year
Second Quarter Consolidated Results of
Operations
Net income for the second quarter of 2022 was
$657,000 or $.07 per share versus $82,000 or $.01 per share in the
same period last year. The second quarter of 2022 was impacted by
the following items:
- The quarter includes $152,000
amortization expense compared to $1,868,000 in the same quarter
last year of the $4,750,000 fair value of The Maren’s
leases-in-place established when we booked this asset as part of
the gain on remeasurement upon consolidation of this Joint
Venture.
- Interest expense increased $293,000
compared to the same quarter last year due to capitalizing less
interest due to the lower amount of in-house and joint venture
projects under development.
- Equity in loss of Joint Ventures
increased $648,000 primarily due to increased depreciation and
amortization at our joint ventures due to buildings placed in
service.
- The same quarter last year included
$805,000 for an easement and sale of excess land in the Mining
Royalty Lands Segment.
Second Quarter Segment Operating
Results
Asset Management Segment:
Total revenues in this segment were $912,000, up
$324,000 or 55.1%, over the same period last year. Operating profit
was $194,000, up $354,000 from an operating loss of $(160,000) in
the same quarter last year. Operating profit is up primarily
because Cranberry Run is now 100% leased and occupied compared to
77.6% leased and 59.7% occupied at the end of the same quarter last
year. Revenues are up because of Cranberry Run as well as the
addition of our two most recent spec buildings at Hollander
Business Park which were under construction during the same period
last year.
Mining Royalty Lands Segment:
Total revenues in this segment were $2,883,000
versus $2,634,000 in the same period last year. Total operating
profit in this segment was $2,350,000, an increase of $58,000
versus $2,292,000 in the same period last year. This increase is
primarily the result of the additional royalties from the
acquisition in Astatula, FL which we completed at the beginning of
this quarter.
Development Segment:
With respect to ongoing projects:
- We are the principal capital source
of a residential development venture in Prince George’s County,
Maryland known as “Amber Ridge.” Of the $18.5 million in committed
capital to the project, $16.8 million in principal draws have taken
place to date. Through the end of the first half of 2022, 99 of the
187 units have been sold, and we have received $13,040,000 in
preferred interest and principal to date.
- Bryant Street is a mixed-use joint
venture between the Company and MRP in Washington, DC consisting of
four buildings, The Coda, The Chase 1A, The Chase 1B, and one
commercial building 90% leased to an Alamo Draft House movie
theater. At quarter end, the Coda was 96.75% leased and 95.45%
occupied, The Chase 1B was 85.71% leased and 78.26% occupied, and
The Chase 1A was 72.67% leased and 62.79% occupied. In total, at
quarter end, Bryant Street’s 487 residential units were 84.6%
leased and 78.2% occupied. Its commercial space was 82.5% leased
and 69.2% occupied at quarter end.
- We began construction on our 1800
Half Street joint venture project, now known as The Verge, at the
end of August 2020. We expect the building to be complete in the
third quarter of 2022. As of the end of the second quarter, the
project was 91.34% complete. This is our third mixed use project in
the Anacostia waterfront submarket in Washington, DC.
- Leasing began on Riverside in the
third quarter 2021 and the building was 97% leased and 91% occupied
at the end of the quarter. .408 Jackson is our second joint venture
project in Greenville and is currently under construction. This
project is 94.09% complete and we expect to complete construction
and begin leasing in fourth quarter of 2022.
Stabilized Joint Venture Segment:
Total revenues in this segment were $5,425,000,
an increase of $603,000 versus $4,822,000 in the same period last
year. The Maren’s revenue was $2,457,000 and Dock 79 revenues
increased $307,000. Total operating profit in this segment was
$919,000 an increase of $2,277,000 versus an operating loss of
$(1,358,000) in the same period last year. Net Operating Income
this quarter for this segment was $3,533,000, up $496,000 or 16.3%
compared to the same quarter last year.
At the end of June, The Maren was 93.93% leased
and 96.21% occupied. Average residential occupancy for the quarter
was 95.34%, and 65.38% of expiring leases renewed with an average
rent increase on renewals of 4.60%. The Maren is a joint venture
between the Company and MRP, in which FRP Holdings, Inc. is the
majority partner with 70.41% ownership.
Dock 79’s average residential occupancy for the
quarter was 96.39%, and at the end of the quarter, Dock 79’s
residential units were 94.8% leased and 94.1% occupied. This
quarter, 60.78% of expiring leases renewed with an average rent
increase on renewals of 7.33%. Dock 79 is a joint venture between
the Company and MRP, in which FRP Holdings, Inc. is the majority
partner with 66% ownership.
Second quarter distributions from our CS1031
Hickory Creek DST investment were $86,000.
Six Months Operational
Highlights
- 34.7% increase in asset management
revenue versus first six months of last year
- Highest six-month total of mining
royalties revenue in segment’s history
- 65.52% renewal rate at Dock 79 with
6.41% increase on renewals through first six months
- 24.0% increase in NOI ($12.67
million vs $10.22 million) compared to first six months last
year
Six Months Consolidated Results of
Operations
Net income attributable to the Company for the
first half of 2022 was $1,329,000 or $.14 per share versus
$28,455,000 or $3.03 per share in the same period last year. The
first half of 2022 was impacted by the following items:
- The period includes $468,000
amortization expense compared to $1,868,000 in the same period last
year of the $4,750,000 fair value of The Maren’s leases-in-place
established when we booked this asset as part of the gain on
remeasurement upon consolidation of this Joint Venture.
- The period includes $733,000 gain
on sales of excess property at Brooksville while the same quarter
last year included $805,000 for a Grandin easement and sale of
Brooksville excess land.
- Interest income decreased $405,000
due to bond maturities and the repayment of the Company’s preferred
interest in The Maren upon the building’s refinancing.
- Equity in loss of Joint Ventures
increased $617,000 primarily due to increased depreciation and
amortization at our joint ventures due to buildings placed in
service.
Net income for the first half of 2021 included a
gain of $51.1 million on the remeasurement of investment in The
Maren real estate partnership, which is included in Income before
income taxes. This gain on remeasurement was mitigated by a $10.1
million provision for taxes and $14.0 attributable to
noncontrolling interest.
Six Months Segment Operating
Results
Asset Management Segment:
Total revenues in this segment were $1,751,000,
up $451,000 or 34.7%, over the same period last year. Operating
profit was $342,000, up $485,000 from an operating loss of
$(143,000) in the same period last year.
Mining Royalty Lands Segment:
Total revenues in this segment were $5,308,000
versus $4,949,000 in the same period last year. Total operating
profit in this segment was $4,439,000, an increase of $134,000
versus $4,305,000 in the same period last year.
Stabilized Joint Venture Segment:
In March 2021, we reached stabilization on Phase
II (The Maren) of the development known as RiverFront on the
Anacostia in Washington, D.C. As such, as of March 31, 2021, the
Company consolidated the assets (at current fair value based on
appraisal), liabilities and operating results of the joint venture.
Up through the first quarter of the prior year, accounting for The
Maren was reflected in Equity in loss of joint ventures on the
Consolidated Statements of Income. Starting April 1, 2021, all the
revenue and expenses are accounted for in the same manner as Dock
79 in the stabilized joint venture segment.
Total revenues in this segment were $10,485,000,
an increase of $3,154,000 versus $7,331,000 in the same period last
year. The Maren’s revenue was $4,866,000 and Dock 79 revenues
increased $450,000. Total operating profit in this segment was
$1,285,000, an increase of $2,426,000 versus an operating loss of
$(1,141,000) in the same period last year. Net Operating Income for
this segment was $6,670,000, up $2,099,000 or 45.92% compared to
the same period last year. All of these increases over the first
six months last year are primarily due to the Maren’s consolidation
into this segment in March 31, 2021.
The Maren’s average residential occupancy for
the first six months of 2022 was 95.24%, and 63.53% of expiring
leases renewed with an average rent increase on renewals of 3.69%.
The Maren is a joint venture between the Company and MRP, in which
FRP Holdings, Inc. is the majority partner with 70.41%
ownership.
Dock 79’s average residential occupancy for the
first six months of 2022 was 95.79%. Through the first six months
of the year, 65.52% of expiring leases renewed with a 6.41%
increase on renewals. Dock 79 is a joint venture between the
Company and MRP, in which FRP Holdings, Inc. is the majority
partner with 66% ownership.
Distributions from our CS1031 Hickory Creek DST
investment were $171,000 for the first six months of the year.
Impact of the COVID-19
Pandemic.
We have continued operations throughout the
pandemic and have made every effort to act in accordance with
national, state, and local regulations and guidelines. During 2020,
Dock 79 and The Maren most directly suffered the impacts to our
business from the pandemic due to our retail tenants being unable
to operate at capacity, the lack of attendance at the Washington
Nationals baseball park and the rent freeze imposed by the
District. In 2021, the Delta and Omicron variants of the virus
impacted our businesses, but because of the vaccine and efforts to
reopen the economy, while still affected, they were not impacted to
the extent that they were in 2020. It is possible that this
version of the virus and its succeeding variants may impact our
ability to lease retail spaces in Washington, D.C. and Greenville.
We expect our business to be affected by the pandemic for as long
as government intervention and regulation is required to combat the
threat.
Summary and Outlook
Royalty revenue for the quarter was up 9.44%
versus the same period last year and revenue for the first six
months increased 7.26% versus the same period the year before. This
is the highest second-quarter revenue total in this segment’s
history, the highest six-month revenue total in the segment’s
history, and the first time we have ever eclipsed $5 million in
revenue in the first six months (or any six-month period). As
mentioned previously, this jump in revenue is primarily the result
of the acquisition we completed at the beginning of this quarter of
a new mining royalty property in Astatula, FL. The additional
royalties along with increased infrastructure spending and pressure
on supply should continue to help push price and volumes and drive
this segment forward.
This is the first full quarter where we have had
the ability raise to rents on renewals at Dock 79 and the Maren.
Both properties performed well with 65.38% of expiring leases at
the Maren renewing with an average increase of 4.60%, and 60.78% of
expiring leases at Dock 79 renewing with an average increase of
7.33%. When we could not renew an existing residential
lease and instead signed a new tenant, we saw a year-to-date
increase in rent on these “trade-outs” of 11.75% at Dock 79 and
10.58% at The Maren. Dock 79 experienced the effects
of the rent freeze to a greater extent than the Maren, so it is not
surprising that a return to market rents has had a greater effect
on its renewal increases as well as these trade-outs. Increased
inflation has also played a part in driving these increases.
However, we believe that this also speaks to the demand these
assets generate in a competitive market and confirms our “long”
position in this submarket with these assets as well as the ones we
have in our development pipeline.
Demand for industrial space remains high and
Asset Management’s performance this quarter speaks to that.
Cranberry Run is 100% leased and occupied for the second straight
quarter and as a result achieved first six-month revenues 34.19%
higher than last year. Our other two properties (our
home office in Maryland and Vulcan’s former Jacksonville office)
remain essentially unchanged and fully leased. As to the immediate
future of this segment, we anticipate shell completion of our final
building at Hollander by the end of 2022. This 101,750 square foot
warehouse is a build-to-suit with a 10-year lease, which will
positively impact revenue, operating profit, and NOI for some
time. Looking back on the first six months, the numbers
speak to both organic growth in all our income producing segments
as well as the benefit of two full quarters of a stabilized and
consolidated Maren. The one major headwind in our income statement
is the increase in equity in loss in joint venture. This is both a
function of the equity method of accounting and the nature of our
multifamily assets prior to stabilization. What one line item
encompassing several properties simply cannot tell you, and perhaps
where an NOI number is more illustrative, is how we are
incrementally growing the value of this Company. Development and
lease-up are always going to be expensive and a damper on earnings,
and, good, bad, or indifferent, are simply the price you pay for
future income and cashflow. We count ourselves extremely fortunate
to have a shareholder base that can see the big picture and
understands what we are building towards.
We have several meaningful events and milestones
heading our way with what remains of the year: the stabilization of
both Bryant Street; stabilization and permanent financing for
Riverside; completion of construction on and the commencement of
leasing for both .408 Jackson in Greenville and The Verge in
Washington, DC. We are working diligently to conservatively convert
our existing cash into new investments, cautiously optimistic as
ever, but ever mindful of our duty to be responsible stewards of
your capital.
Conference Call
The Company will host a conference call on
Friday, August 12, 2022 at 10:00 a.m. (EDT). Analysts, stockholders
and other interested parties may access the teleconference live by
calling 1-800-343-4849 (passcode 91003) within the United
States. International callers may dial 1-203-518-9848
(passcode 91003). Audio replay will be available until August 26,
2022 by dialing 1-800-943-2127 (passcode 17717) within the United
States. International callers may dial 1-402-220-1139
(passcode 17717). An audio replay will also be available on the
Company’s investor relations page
(https://www.frpdev.com/investor-relations/) following the
call.
Investors are cautioned that any statements in
this press release which relate to the future are, by their nature,
subject to risks and uncertainties that could cause actual results
and events to differ materially from those indicated in such
forward-looking statements. These include, but are not limited to:
the impact of the COVID-19 Pandemic on our operations and financial
results; the possibility that we may be unable to find appropriate
investment opportunities; levels of construction activity in the
markets served by our mining properties; demand for flexible
warehouse/office facilities in the Baltimore-Washington-Northern
Virginia area; demand for apartments in Washington D.C., Richmond,
Virginia, and Greenville, South Carolina; our ability to obtain
zoning and entitlements necessary for property development; the
impact of lending and capital market conditions on our liquidity;
our ability to finance projects or repay our debt; general real
estate investment and development risks; vacancies in our
properties; risks associated with developing and managing
properties in partnership with others; competition; our ability to
renew leases or re-lease spaces as leases expire; illiquidity of
real estate investments; bankruptcy or defaults of tenants; the
impact of restrictions imposed by our credit facility; the level
and volatility of interest rates; environmental liabilities;
inflation risks; cybersecurity risks; as well as other risks listed
from time to time in our SEC filings; including but not limited to;
our annual and quarterly reports. We have no obligation to revise
or update any forward-looking statements, other than as imposed by
law, as a result of future events or new information. Readers are
cautioned not to place undue reliance on such forward-looking
statements.
FRP Holdings, Inc. is a holding company engaged
in the real estate business, namely (i) leasing and management of
commercial properties owned by the Company, (ii) leasing and
management of mining royalty land owned by the Company, (iii) real
property acquisition, entitlement, development and construction
primarily for apartment, retail, warehouse, and office, (iv)
leasing and management of a residential apartment building.
FRP HOLDINGS, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
INCOME(In thousands except per share
amounts)(Unaudited)
|
|
THREE MONTHS ENDED |
|
SIX MONTHS ENDED |
|
|
JUNE 30, |
|
JUNE 30, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
6,745 |
|
|
|
5,861 |
|
|
|
13,027 |
|
|
|
9,399 |
|
Mining lands lease revenue |
|
|
2,883 |
|
|
|
2,634 |
|
|
|
5,308 |
|
|
|
4,949 |
|
Total Revenues |
|
|
9,628 |
|
|
|
8,495 |
|
|
|
18,335 |
|
|
|
14,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
2,868 |
|
|
|
4,388 |
|
|
|
5,766 |
|
|
|
5,831 |
|
Operating expenses |
|
|
1,541 |
|
|
|
1,394 |
|
|
|
3,349 |
|
|
|
2,235 |
|
Property taxes |
|
|
1,041 |
|
|
|
1,000 |
|
|
|
2,069 |
|
|
|
1,778 |
|
Management company indirect |
|
|
805 |
|
|
|
822 |
|
|
|
1,579 |
|
|
|
1,392 |
|
Corporate expenses |
|
|
1,307 |
|
|
|
1,050 |
|
|
|
2,142 |
|
|
|
1,829 |
|
Total cost of operations |
|
|
7,562 |
|
|
|
8,654 |
|
|
|
14,905 |
|
|
|
13,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating profit
(loss) |
|
|
2,066 |
|
|
|
(159 |
) |
|
|
3,430 |
|
|
|
1,283 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income,
including realized gains of $0, $0, $0 and $0, respectively |
|
|
1,120 |
|
|
|
1,048 |
|
|
|
2,018 |
|
|
|
2,423 |
|
Interest expense |
|
|
(739 |
) |
|
|
(446 |
) |
|
|
(1,477 |
) |
|
|
(1,371 |
) |
Equity in loss of joint
ventures |
|
|
(1,766 |
) |
|
|
(1,118 |
) |
|
|
(3,370 |
) |
|
|
(2,753 |
) |
Gain on remeasurement of
investment in real estate partnership |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
51,139 |
|
Gain on sale of real
estate |
|
|
— |
|
|
|
805 |
|
|
|
733 |
|
|
|
805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
681 |
|
|
|
130 |
|
|
|
1,334 |
|
|
|
51,526 |
|
Provision for (benefit from)
income taxes |
|
|
99 |
|
|
|
(151 |
) |
|
|
348 |
|
|
|
10,370 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
582 |
|
|
|
281 |
|
|
|
986 |
|
|
|
41,156 |
|
Gain (loss) attributable to
noncontrolling interest |
|
|
(75 |
) |
|
|
199 |
|
|
|
(343 |
) |
|
|
12,701 |
|
Net income
attributable to the Company |
|
$ |
657 |
|
|
|
82 |
|
|
|
1,329 |
|
|
|
28,455 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to the
Company- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.07 |
|
|
|
0.01 |
|
|
|
0.14 |
|
|
|
3.04 |
|
Diluted |
|
$ |
0.07 |
|
|
|
0.01 |
|
|
|
0.14 |
|
|
|
3.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares (in thousands) used in computing: |
|
|
|
|
|
|
|
|
|
|
|
-basic earnings per common share |
|
|
9,384 |
|
|
|
9,353 |
|
|
|
9,375 |
|
|
|
9,347 |
|
-diluted earnings per common share |
|
|
9,424 |
|
|
|
9,390 |
|
|
|
9,416 |
|
|
|
9,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FRP HOLDINGS, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(Unaudited) (In thousands, except share data)
|
|
June 30, 2022 |
|
December 31, 2021 |
Assets: |
|
|
|
|
Real estate investments at cost: |
|
|
|
|
|
|
|
|
Land |
|
$ |
135,139 |
|
|
|
123,397 |
|
Buildings and
improvements |
|
|
268,156 |
|
|
|
265,278 |
|
Projects under
construction |
|
|
11,149 |
|
|
|
8,668 |
|
Total investments in properties |
|
|
414,444 |
|
|
|
397,343 |
|
Less accumulated depreciation
and depletion |
|
|
51,889 |
|
|
|
46,678 |
|
Net investments in properties |
|
|
362,555 |
|
|
|
350,665 |
|
|
|
|
|
|
|
|
|
|
Real estate held for
investment, at cost |
|
|
9,969 |
|
|
|
9,722 |
|
Investments in joint
ventures |
|
|
139,655 |
|
|
|
145,443 |
|
Net real estate investments |
|
|
512,179 |
|
|
|
505,830 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
159,262 |
|
|
|
161,521 |
|
Cash held in escrow |
|
|
765 |
|
|
|
752 |
|
Accounts receivable, net |
|
|
1,423 |
|
|
|
793 |
|
Investments available for sale
at fair value |
|
|
— |
|
|
|
4,317 |
|
Federal and state income taxes
receivable |
|
|
— |
|
|
|
1,103 |
|
Unrealized rents |
|
|
806 |
|
|
|
620 |
|
Deferred costs |
|
|
2,065 |
|
|
|
2,726 |
|
Other assets |
|
|
540 |
|
|
|
528 |
|
Total assets |
|
$ |
677,040 |
|
|
|
678,190 |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Secured notes payable |
|
$ |
178,483 |
|
|
|
178,409 |
|
Accounts payable and accrued
liabilities |
|
|
4,815 |
|
|
|
6,137 |
|
Other liabilities |
|
|
1,886 |
|
|
|
1,886 |
|
Federal and state income taxes
payable |
|
|
398 |
|
|
|
— |
|
Deferred revenue |
|
|
223 |
|
|
|
369 |
|
Deferred income taxes |
|
|
64,180 |
|
|
|
64,047 |
|
Deferred compensation |
|
|
1,307 |
|
|
|
1,302 |
|
Tenant security deposits |
|
|
811 |
|
|
|
790 |
|
Total liabilities |
|
|
252,103 |
|
|
|
252,940 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Common stock, $.10 par
value 25,000,000 shares authorized, 9,455,096 and
9,411,028 shares issued and outstanding, respectively |
|
|
945 |
|
|
|
941 |
|
Capital in excess of par
value |
|
|
58,872 |
|
|
|
57,617 |
|
Retained earnings |
|
|
339,081 |
|
|
|
337,752 |
|
Accumulated other
comprehensive income (loss), net |
|
|
(1,096 |
) |
|
|
113 |
|
Total shareholders’ equity |
|
|
397,802 |
|
|
|
396,423 |
|
Noncontrolling interest
MRP |
|
|
27,135 |
|
|
|
28,827 |
|
Total equity |
|
|
424,937 |
|
|
|
425,250 |
|
Total liabilities and
equity |
|
$ |
677,040 |
|
|
|
678,190 |
|
|
|
|
|
|
|
|
|
|
Asset Management
Segment:
|
|
Three months ended June 30 |
|
|
|
|
(dollars in thousands) |
|
2022 |
|
% |
|
2021 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
912 |
|
|
|
100.0 |
% |
|
|
588 |
|
|
|
100.0 |
% |
|
|
324 |
|
|
|
55.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
|
230 |
|
|
|
25.2 |
% |
|
|
134 |
|
|
|
22.8 |
% |
|
|
96 |
|
|
|
71.6 |
% |
Operating expenses |
|
|
111 |
|
|
|
12.2 |
% |
|
|
74 |
|
|
|
12.6 |
% |
|
|
37 |
|
|
|
50.0 |
% |
Property taxes |
|
|
52 |
|
|
|
5.7 |
% |
|
|
42 |
|
|
|
7.1 |
% |
|
|
10 |
|
|
|
23.8 |
% |
Management company
indirect |
|
|
100 |
|
|
|
10.9 |
% |
|
|
210 |
|
|
|
35.7 |
% |
|
|
(110 |
) |
|
|
-52.4 |
% |
Corporate expense |
|
|
225 |
|
|
|
24.7 |
% |
|
|
288 |
|
|
|
49.0 |
% |
|
|
(63 |
) |
|
|
-21.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
718 |
|
|
|
78.7 |
% |
|
|
748 |
|
|
|
127.2 |
% |
|
|
(30 |
) |
|
|
-4.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) |
|
$ |
194 |
|
|
|
21.3 |
% |
|
|
(160 |
) |
|
|
-27.2 |
% |
|
|
354 |
|
|
|
-221.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining Royalty Lands
Segment:
|
|
Three months ended June 30 |
|
|
|
|
(dollars in thousands) |
|
2022 |
|
% |
|
2021 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining lands lease revenue |
|
$ |
2,883 |
|
|
|
100.0 |
% |
|
|
2,634 |
|
|
|
100.0 |
% |
|
|
249 |
|
|
|
9.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
|
189 |
|
|
|
6.6 |
% |
|
|
58 |
|
|
|
2.2 |
% |
|
|
131 |
|
|
|
225.9 |
% |
Operating expenses |
|
|
17 |
|
|
|
0.6 |
% |
|
|
12 |
|
|
|
0.5 |
% |
|
|
5 |
|
|
|
41.7 |
% |
Property taxes |
|
|
69 |
|
|
|
2.4 |
% |
|
|
68 |
|
|
|
2.6 |
% |
|
|
1 |
|
|
|
1.5 |
% |
Management company
indirect |
|
|
110 |
|
|
|
3.8 |
% |
|
|
96 |
|
|
|
3.6 |
% |
|
|
14 |
|
|
|
14.6 |
% |
Corporate expense |
|
|
148 |
|
|
|
5.1 |
% |
|
|
108 |
|
|
|
4.1 |
% |
|
|
40 |
|
|
|
37.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
533 |
|
|
|
18.5 |
% |
|
|
342 |
|
|
|
13.0 |
% |
|
|
191 |
|
|
|
55.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
2,350 |
|
|
|
81.5 |
% |
|
|
2,292 |
|
|
|
87.0 |
% |
|
|
58 |
|
|
|
2.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development
Segment:
|
|
Three months ended June 30 |
(dollars in thousands) |
|
2022 |
|
2021 |
|
Change |
|
|
|
|
|
|
|
Lease revenue |
|
$ |
408 |
|
|
|
451 |
|
|
|
(43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
|
47 |
|
|
|
53 |
|
|
|
(6 |
) |
Operating expenses |
|
|
80 |
|
|
|
45 |
|
|
|
35 |
|
Property taxes |
|
|
356 |
|
|
|
364 |
|
|
|
(8 |
) |
Management company
indirect |
|
|
506 |
|
|
|
400 |
|
|
|
106 |
|
Corporate expense |
|
|
816 |
|
|
|
522 |
|
|
|
294 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
1,805 |
|
|
|
1,384 |
|
|
|
421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(1,397 |
) |
|
|
(933 |
) |
|
|
(464 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stabilized Joint Venture
Segment:
|
|
Three months ended June 30 |
|
|
|
|
(dollars in thousands) |
|
2022 |
|
% |
|
2021 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
5,425 |
|
|
|
100.0 |
% |
|
|
4,822 |
|
|
|
100.0 |
% |
|
|
603 |
|
|
|
12.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
|
2,402 |
|
|
|
44.3 |
% |
|
|
4,143 |
|
|
|
85.9 |
% |
|
|
(1,741 |
) |
|
|
-42.0 |
% |
Operating expenses |
|
|
1,333 |
|
|
|
24.6 |
% |
|
|
1,263 |
|
|
|
26.2 |
% |
|
|
70 |
|
|
|
5.5 |
% |
Property taxes |
|
|
564 |
|
|
|
10.4 |
% |
|
|
526 |
|
|
|
10.9 |
% |
|
|
38 |
|
|
|
7.2 |
% |
Management company
indirect |
|
|
89 |
|
|
|
1.6 |
% |
|
|
116 |
|
|
|
2.4 |
% |
|
|
(27 |
) |
|
|
-23.3 |
% |
Corporate expense |
|
|
118 |
|
|
|
2.2 |
% |
|
|
132 |
|
|
|
2.8 |
% |
|
|
(14 |
) |
|
|
-10.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
4,506 |
|
|
|
83.1 |
% |
|
|
6,180 |
|
|
|
128.2 |
% |
|
|
(1,674 |
) |
|
|
-27.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) |
|
$ |
919 |
|
|
|
16.9 |
% |
|
|
(1,358 |
) |
|
|
-28.2 |
% |
|
|
2,277 |
|
|
|
-167.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Management
Segment:
|
|
Six months ended June 30 |
|
|
|
|
(dollars in thousands) |
|
2022 |
|
% |
|
2021 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
1,751 |
|
|
|
100.0 |
% |
|
|
1,300 |
|
|
|
100.0 |
% |
|
|
451 |
|
|
|
34.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
|
464 |
|
|
|
26.5 |
% |
|
|
271 |
|
|
|
20.8 |
% |
|
|
193 |
|
|
|
71.2 |
% |
Operating expenses |
|
|
279 |
|
|
|
15.9 |
% |
|
|
213 |
|
|
|
16.4 |
% |
|
|
66 |
|
|
|
31.0 |
% |
Property taxes |
|
|
105 |
|
|
|
6.0 |
% |
|
|
80 |
|
|
|
6.2 |
% |
|
|
25 |
|
|
|
31.3 |
% |
Management company
indirect |
|
|
192 |
|
|
|
11.0 |
% |
|
|
377 |
|
|
|
29.0 |
% |
|
|
(185 |
) |
|
|
-49.1 |
% |
Corporate expense |
|
|
369 |
|
|
|
21.1 |
% |
|
|
502 |
|
|
|
38.6 |
% |
|
|
(133 |
) |
|
|
-26.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
1,409 |
|
|
|
80.5 |
% |
|
|
1,443 |
|
|
|
111.0 |
% |
|
|
(34 |
) |
|
|
-2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) |
|
$ |
342 |
|
|
|
19.5 |
% |
|
|
(143 |
) |
|
|
-11.0 |
% |
|
|
485 |
|
|
|
-339.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining Royalty Lands
Segment:
|
|
Six months ended June 30 |
|
|
|
|
(dollars in thousands) |
|
2022 |
|
% |
|
2021 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining lands lease revenue |
|
$ |
5,308 |
|
|
|
100.0 |
% |
|
|
4,949 |
|
|
|
100.0 |
% |
|
|
359 |
|
|
|
7.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
|
244 |
|
|
|
4.6 |
% |
|
|
123 |
|
|
|
2.5 |
% |
|
|
121 |
|
|
|
98.4 |
% |
Operating expenses |
|
|
32 |
|
|
|
0.6 |
% |
|
|
23 |
|
|
|
0.5 |
% |
|
|
9 |
|
|
|
39.1 |
% |
Property taxes |
|
|
134 |
|
|
|
2.5 |
% |
|
|
131 |
|
|
|
2.6 |
% |
|
|
3 |
|
|
|
2.3 |
% |
Management company
indirect |
|
|
217 |
|
|
|
4.1 |
% |
|
|
178 |
|
|
|
3.6 |
% |
|
|
39 |
|
|
|
21.9 |
% |
Corporate expense |
|
|
242 |
|
|
|
4.6 |
% |
|
|
189 |
|
|
|
3.8 |
% |
|
|
53 |
|
|
|
28.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
869 |
|
|
|
16.4 |
% |
|
|
644 |
|
|
|
13.0 |
% |
|
|
225 |
|
|
|
34.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
|
$ |
4,439 |
|
|
|
83.6 |
% |
|
|
4,305 |
|
|
|
87.0 |
% |
|
|
134 |
|
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Development
Segment:
|
|
Six months ended June 30 |
(dollars in thousands) |
|
2022 |
|
2021 |
|
Change |
|
|
|
|
|
|
|
Lease revenue |
|
$ |
791 |
|
|
|
768 |
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
|
92 |
|
|
|
106 |
|
|
|
(14 |
) |
Operating expenses |
|
|
291 |
|
|
|
71 |
|
|
|
220 |
|
Property taxes |
|
|
711 |
|
|
|
727 |
|
|
|
(16 |
) |
Management company
indirect |
|
|
996 |
|
|
|
661 |
|
|
|
335 |
|
Corporate expense |
|
|
1,337 |
|
|
|
941 |
|
|
|
396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
3,427 |
|
|
|
2,506 |
|
|
|
921 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
$ |
(2,636 |
) |
|
|
(1,738 |
) |
|
|
(898 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stabilized Joint Venture
Segment:
|
|
Six months ended June 30 |
|
|
|
|
(dollars in thousands) |
|
2022 |
|
% |
|
2021 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
10,485 |
|
|
|
100.0 |
% |
|
|
7,331 |
|
|
|
100.0 |
% |
|
|
3,154 |
|
|
|
43.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
|
4,966 |
|
|
|
47.4 |
% |
|
|
5,331 |
|
|
|
72.7 |
% |
|
|
(365 |
) |
|
|
-6.8 |
% |
Operating expenses |
|
|
2,747 |
|
|
|
26.2 |
% |
|
|
1,928 |
|
|
|
26.3 |
% |
|
|
819 |
|
|
|
42.5 |
% |
Property taxes |
|
|
1,119 |
|
|
|
10.7 |
% |
|
|
840 |
|
|
|
11.5 |
% |
|
|
279 |
|
|
|
33.2 |
% |
Management company
indirect |
|
|
174 |
|
|
|
1.6 |
% |
|
|
176 |
|
|
|
2.4 |
% |
|
|
(2 |
) |
|
|
-1.1 |
% |
Corporate expense |
|
|
194 |
|
|
|
1.8 |
% |
|
|
197 |
|
|
|
2.7 |
% |
|
|
(3 |
) |
|
|
-1.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
|
9,200 |
|
|
|
87.7 |
% |
|
|
8,472 |
|
|
|
115.6 |
% |
|
|
728 |
|
|
|
8.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) |
|
$ |
1,285 |
|
|
|
12.3 |
% |
|
|
(1,141 |
) |
|
|
-15.6 |
% |
|
|
2,426 |
|
|
|
-212.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 06/30/22 (in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stabilized |
|
|
|
|
|
|
|
Asset |
|
|
|
Joint |
|
Mining |
|
Unallocated |
|
FRP |
|
Management |
|
Development |
|
Venture |
|
Royalties |
|
Corporate |
|
Holdings |
|
Segment |
|
Segment |
|
Segment |
|
Segment |
|
Expenses |
|
Totals |
Net Income (loss) |
$ |
249 |
|
|
|
(3,351 |
) |
|
|
(92 |
) |
|
|
3,758 |
|
|
|
422 |
|
|
|
986 |
|
Income Tax Allocation |
|
93 |
|
|
|
(1,242 |
) |
|
|
92 |
|
|
|
1,393 |
|
|
|
12 |
|
|
|
348 |
|
Income (loss) before
income taxes |
|
342 |
|
|
|
(4,593 |
) |
|
|
— |
|
|
|
5,151 |
|
|
|
434 |
|
|
|
1,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
196 |
|
|
|
— |
|
|
|
— |
|
|
|
105 |
|
|
|
— |
|
|
|
301 |
|
Gain on sale of real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
733 |
|
|
|
— |
|
|
|
733 |
|
Equity in gain of Joint Ventures |
|
— |
|
|
|
— |
|
|
|
171 |
|
|
|
— |
|
|
|
— |
|
|
|
171 |
|
Interest income |
|
— |
|
|
|
1,563 |
|
|
|
— |
|
|
|
— |
|
|
|
455 |
|
|
|
2,018 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
— |
|
|
|
— |
|
|
|
51 |
|
|
|
— |
|
|
|
— |
|
|
|
51 |
|
Equity in loss of Joint Ventures |
|
— |
|
|
|
3,520 |
|
|
|
— |
|
|
|
21 |
|
|
|
— |
|
|
|
3,541 |
|
Interest Expense |
|
— |
|
|
|
— |
|
|
|
1,456 |
|
|
|
— |
|
|
|
21 |
|
|
|
1,477 |
|
Depreciation/Amortization |
|
464 |
|
|
|
92 |
|
|
|
4,966 |
|
|
|
244 |
|
|
|
— |
|
|
|
5,766 |
|
Management Co. Indirect |
|
192 |
|
|
|
996 |
|
|
|
174 |
|
|
|
217 |
|
|
|
— |
|
|
|
1,579 |
|
Allocated Corporate Expenses |
|
369 |
|
|
|
1,337 |
|
|
|
194 |
|
|
|
242 |
|
|
|
— |
|
|
|
2,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss) |
$ |
1,171 |
|
|
|
(211 |
) |
|
|
6,670 |
|
|
|
5,037 |
|
|
|
— |
|
|
|
12,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
Six months ended 06/30/21 (in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stabilized |
|
|
|
|
|
|
|
Asset |
|
|
|
Joint |
|
Mining |
|
Unallocated |
|
FRP |
|
Management |
|
Development |
|
Venture |
|
Royalties |
|
Corporate |
|
Holdings |
|
Segment |
|
Segment |
|
Segment |
|
Segment |
|
Expenses |
|
Totals |
Net Income (loss) |
$ |
(123 |
) |
|
|
(1,629 |
) |
|
|
38,591 |
|
|
|
3,731 |
|
|
|
586 |
|
|
|
41,156 |
|
Income Tax Allocation |
|
(46 |
) |
|
|
(604 |
) |
|
|
9,601 |
|
|
|
1,383 |
|
|
|
36 |
|
|
|
10,370 |
|
Income (loss) before
income taxes |
|
(169 |
) |
|
|
(2,233 |
) |
|
|
48,192 |
|
|
|
5,114 |
|
|
|
622 |
|
|
|
51,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on remeasurement of real estate investment |
|
— |
|
|
|
— |
|
|
|
51,139 |
|
|
|
— |
|
|
|
— |
|
|
|
51,139 |
|
Gain on investment land sold |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
831 |
|
|
|
— |
|
|
|
831 |
|
Unrealized rents |
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
113 |
|
|
|
— |
|
|
|
124 |
|
Interest income |
|
— |
|
|
|
1,779 |
|
|
|
— |
|
|
|
— |
|
|
|
644 |
|
|
|
2,423 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
Loss on sale of land |
|
26 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26 |
|
Equity in loss of Joint Venture |
|
— |
|
|
|
2,274 |
|
|
|
457 |
|
|
|
22 |
|
|
|
— |
|
|
|
2,753 |
|
Interest Expense |
|
— |
|
|
|
— |
|
|
|
1,349 |
|
|
|
— |
|
|
|
22 |
|
|
|
1,371 |
|
Depreciation/Amortization |
|
271 |
|
|
|
106 |
|
|
|
5,331 |
|
|
|
123 |
|
|
|
— |
|
|
|
5,831 |
|
Management Co. Indirect |
|
377 |
|
|
|
661 |
|
|
|
176 |
|
|
|
178 |
|
|
|
— |
|
|
|
1,392 |
|
Allocated Corporate Expenses |
|
502 |
|
|
|
941 |
|
|
|
197 |
|
|
|
189 |
|
|
|
— |
|
|
|
1,829 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Operating Income
(loss) |
$ |
996 |
|
|
|
(30 |
) |
|
|
4,571 |
|
|
|
4,682 |
|
|
|
— |
|
|
|
10,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
John D. Baker III
Chief Financial Officer
904/858-9100
Grafico Azioni FRP (NASDAQ:FRPH)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni FRP (NASDAQ:FRPH)
Storico
Da Lug 2023 a Lug 2024