FRP Holdings, Inc. (NASDAQ-FRPH) –
Third Quarter Operational
Highlights
- 41.6% increase
in Pro-rata NOI ($6.24 million vs $4.41 million) over third quarter
2021
- 6.09% increase
on renewals at Dock 79
- 8.06% increase
on renewals at The Maren
- 9.85% increase
in mining royalty revenue over third quarter 2021
- 51.1% increase
in Asset Management Revenue versus same period last year
- Riverside
achieved stabilization this quarter and is now part of our
Stabilized JV segment. At quarter end the JV was 95% leased and 92%
occupied.
- Lease-up now
underway at The Verge
Third Quarter Consolidated Results of
Operations
Net income for the third quarter of 2022 was
$480,000 or $.05 per share versus $352,000 or $.04 per share in the
same period last year. The third quarter of 2022 was impacted by
the following items:
- The quarter
includes $72,000 amortization expense compared to $1,373,000 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.
- Net investment
income increased $245,000 due to a $42,000 increase in preferred
interest from our joint ventures and a $338,000 increase for
interest earned on cash equivalents, mitigated by a $135,000
decrease in interest from our lending ventures.
- Interest
expense increased $324,000 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 $634,000 primarily due to increased
depreciation and amortization at our joint ventures due to
buildings placed in service.
- Professional
fees increased $232,000 over the same period last year.
Third Quarter Segment Operating
Results
Asset Management Segment:
Total revenues in this segment were $935,000, up
$316,000 or 51.1%, over the same period last year. Operating profit
was $265,000, up $276,000 from an operating loss of $(11,000) in
the same quarter last year. Operating profit is up primarily
because Cranberry Run is now 100% leased and occupied compared to
96.6% leased and 68.6% 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 $2,471,000
versus $2,249,000 in the same period last year. Total operating
profit in this segment was $2,000,000, an increase of $32,000
versus $1,968,000 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
the second quarter offset by a prior year adjustment made in the
current year for Newberry and a Manassas annual volumetric
adjustment. Royalties were negatively impacted by a $300,000
adjustment from overpayment on royalties between 2019-2021 for the
property in Newberry, FL leased by Argos for the manufacture of
cement products.
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, $16.9 million in
principal draws have taken place through quarter end. Through the
end of the first nine months of 2022, 124 of the 187 units have
been sold, and we have received $15.5 million in preferred interest
and principal to date.
- Bryant Street
is a mixed-use joint venture between the Company and MRP in
Washington, DC consisting of four buildings, The Coda, The Chase
1A, The Chase 1B, and one commercial building 90% leased to an
Alamo Draft House movie theater. At quarter end, the Coda was
96.10% leased and 94.81% occupied, The Chase 1B was 80.75% leased
and 83.85% occupied, and The Chase 1A was 83.72% leased and 81.98%
occupied. In total, at quarter end, Bryant Street’s 487 residential
units were 86.7% leased and 86.7% occupied. Its commercial space
was 84.2% leased and 71.4% occupied at quarter end.
- Lease-up is now
underway at The Verge. We have temporary certificates of occupancy
for seven of the eleven floors. We expect the final certificate of
occupancy in the fourth quarter. This is our third mixed use
project in the Anacostia waterfront submarket in Washington,
DC.
- .408 Jackson is
our second joint venture project in Greenville and is currently
under construction. This project is 98.62% complete and we expect
to complete construction and begin leasing in fourth quarter of
2022.
- In September,
the Company closed on the purchase of 170 acres in the North East,
Maryland for $6.5 million. We are currently pursuing entitlements
to begin construction on a 900,000 square-foot warehouse.
- In August, we
invested $3.6 million for a minority interest in a joint venture
with Woodfield Development to purchase 46 acres in Estero, FL.
While the joint venture attempts to rezone the property, the
Company will receive a preferred return of 8% with an option to
roll its investment into equity in the vertical development or exit
at that point.
Stabilized Joint Venture Segment:
Total revenues in this segment were $5,476,000,
an increase of $272,000 versus $5,204,000 in the same period last
year. The Maren’s revenue was $2,608,000 and Dock 79 revenues
increased $93,000. Total operating profit in this segment was
$906,000 an increase of $1,401,000 versus an operating loss of
$(495,000) in the same period last year. Pro-rata net operating
income this quarter for this segment was $2,702,000, up $641,000 or
31.1% compared to the same quarter last year.
At the end of September, The Maren was 93.56%
leased and 96.21% occupied. Average residential occupancy for the
quarter was 96.85%, and 65.15% of expiring leases renewed with an
average rent increase on renewals of 8.06%. 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 94.93%, and at the end of the quarter, Dock 79’s
residential units were 94.43% leased and 96.72% occupied. This
quarter, 53.97% of expiring leases renewed with an average rent
increase on renewals of 6.09%. Dock 79 is a joint venture between
the Company and MRP, in which FRP Holdings, Inc. is the majority
partner with 66% ownership.
This quarter we achieved stabilization at our
Riverside Joint Venture in Greenville South Carolina, meaning that
the building had 90% occupancy for 90 days. The building is
currently 95% leased with 92% occupancy. Riverside is a joint
venture with Woodfield Development and the Company owns 40% of the
venture.
Third quarter distributions from our CS1031
Hickory Creek DST investment were $110,000.
Nine Months Operational
Highlights
- 40.0% increase
in asset management revenue versus first nine months of last
year
- Highest
nine-month total of mining royalties revenue in segment’s history,
8.07% increase in revenue over first nine months of 2021. $10.05
million in revenue over last twelve months.
- 32.10% increase
in our pro rata NOI ($17.97 million vs $13.60 million) compared to
first nine months last year
Nine Months Consolidated Results of
Operations
Net income attributable to the Company for the
first nine months of 2022 was $1,809,000 or $.19 per share versus
$28,807,000 or $3.07 per share in the same period last year. The
first nine months of 2022 was impacted by the following items:
- The period
includes $540,000 amortization expense compared to $3,241,000 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 $874,000 gain on sales of excess property at
Brooksville.
- Net investment
income decreased $160,000 due to a $103,000 decrease in preferred
interest from our joint ventures and a $208,000 decrease in
interest from our lending ventures, offset by a $151,000 increase
for interest earned on cash equivalents.
- Equity in loss
of Joint Ventures increased $1,251,000 primarily due to increased
depreciation and amortization at our joint ventures due to
buildings placed in service.
Net income for the first nine months 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 million attributable to
noncontrolling interest.
Nine Months Segment Operating
Results
Asset Management Segment:
Total revenues in this segment were $2,686,000,
up $767,000 or 40.0%, over the same period last year. Operating
profit was $607,000, up $761,000 from an operating loss of
$(154,000) in the same period last year.
Mining Royalty Lands Segment:
Total revenues in this segment were $7,779,000
versus $7,198,000 in the same period last year. Total operating
profit in this segment was $6,439,000, an increase of $166,000
versus $6,273,000 in the same period last year. Royalties were
negatively impacted by a $300,000 adjustment from overpayment on
royalties between 2019-2021 for the property in Newberry, FL leased
by Argos for the manufacture of cement products.
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 $15,961,000,
an increase of $3,426,000 versus $12,535,000 in the same period
last year. The Maren’s revenue was $7,474,000 and Dock 79 revenues
increased $543,000. Total operating profit in this segment was
$2,191,000, an increase of $3,827,000 versus an operating loss of
$(1,636,000) in the same period last year. Pro-rata net operating
income for this segment was $7,241,000, up $1,286,000 or 21.60%
compared to the same period last year. All of these increases over
the first nine 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 nine months of 2022 was 95.78%, and 61.31% of expiring
leases renewed with an average rent increase on renewals of 7.23%.
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 nine months of 2022 was 95.66%. Through the first nine months
of the year, 64.83% of expiring leases renewed with a 5.79%
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.
This quarter we achieved stabilization at our
Riverside Joint Venture in Greenville South Carolina, meaning that
the building had 90% occupancy for 90 days. The building’s 200
residential units were 95% leased with 92% occupancy at quarter
end. Riverside is a joint venture with Woodfield Development and
the Company owns 40% of the venture.
Distributions from our CS1031 Hickory Creek DST investment were
$281,000 for the first nine 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 9.85%
versus the same period last year and revenue for the first nine
months increased 8.07%. This is the highest nine-month revenue in
the segment’s history and the first time we have achieved $10
million in revenue in the segment over any twelve-month period.
Despite a one-time, $300,000 negative adjustment for overpayment of
royalties between 2019-2021 at our Newberry Cement property, we
were able to achieve these increases primarily because of the
additional royalties from our new mining royalty property in
Astatula, FL.
This is just the second full quarter where we
had the ability to raise rents on renewals in DC. This quarter,
65.15% of expiring leases at Maren renewed with an average increase
on renewals of 8.06%, and 53.97% of expiring leases renewed at Dock
79 with an average increase of 6.09%. When we could not renew an
existing residential lease, we saw a year-to-date increase in rent
on those “trade outs” of 9.90% at the Maren and 11.50% at Dock 79.
As noted previously, this quarter we added our Riverside JV to this
segment when it stabilized in September. Subsequent to the end of
the quarter, our Hickory Creek DST was sold and the Company
received $8.83 million from the sale on an investment of $6
million. We are currently exploring opportunities for reinvesting
these proceeds.
The Asset Management segment continues its
strong performance through this quarter. All of our industrial
assets are 100% leased, and our other two properties (our home
office in Maryland and Vulcan’s former Jacksonville office) remain
essentially unchanged and fully leased). This segment’s revenue for
both this quarter and the first nine months are up 51% and 40%
respectively due to the addition of and increased occupancy at our
two most recent spec buildings at Hollander. We anticipate shell
completion of our final building at Hollander by the end of 2022
and occupancy before the end of the first quarter of next year.
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.
This quarter saw the stabilization of Riverside,
lease-up begin at The Verge, and meaningful growth across all
segments in terms of revenue and NOI. Looking ahead, we have to
achieve stabilization and pursue permanent financing for Bryant
Street as well as complete construction on and begin lease-up at
.408 Jackson. Inflation and rising interest rates are
real but their long-term effect on our assets is still unclear. The
beauty of our balance sheet is that it allows us to play offense
and defense and the fact of the matter is, we will probably have to
do a little of both. Fortunately, we can.
Conference Call
The Company will host a conference call on
Wednesday, November 9, 2022 at 3:00 p.m. (EDT). Analysts,
stockholders and other interested parties may access the
teleconference live by calling 1-800-274-8461 (passcode 56787)
within the United States. International callers may dial
1-203-518-9783 (passcode 56787). Audio replay will be available
until November 22, 2022 by dialing 1-800-839-3740 (passcode 17717)
within the United States. International callers may dial
1-402-220-7239 (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.
The Company will also be posting a brief slideshow with financial
highlights from the third quarter and year-to-date on our website
on Monday, November 7. This will be available on the Company’s
investor relations page under Investor Presentations. For
information on our commitment to best practices in Environmental,
Social, and Governance matters, please visit the ESG section of our
website at
https://www.frpdev.com/investor-relations/esg-report/.
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 residential apartment buildings.
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, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
$ |
6,823 |
|
|
|
6,224 |
|
|
|
19,850 |
|
|
|
15,623 |
|
Mining lands lease revenue |
|
2,471 |
|
|
|
2,249 |
|
|
|
7,779 |
|
|
|
7,198 |
|
Total Revenues |
|
9,294 |
|
|
|
8,473 |
|
|
|
27,629 |
|
|
|
22,821 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
2,744 |
|
|
|
3,796 |
|
|
|
8,510 |
|
|
|
9,627 |
|
Operating expenses |
|
1,967 |
|
|
|
1,557 |
|
|
|
5,316 |
|
|
|
3,792 |
|
Property taxes |
|
1,034 |
|
|
|
986 |
|
|
|
3,103 |
|
|
|
2,764 |
|
Management company indirect |
|
966 |
|
|
|
745 |
|
|
|
2,545 |
|
|
|
2,137 |
|
Corporate expenses |
|
734 |
|
|
|
657 |
|
|
|
2,876 |
|
|
|
2,486 |
|
Total cost of operations |
|
7,445 |
|
|
|
7,741 |
|
|
|
22,350 |
|
|
|
20,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
profit |
|
1,849 |
|
|
|
732 |
|
|
|
5,279 |
|
|
|
2,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income |
|
1,188 |
|
|
|
943 |
|
|
|
3,206 |
|
|
|
3,366 |
|
Interest expense |
|
(738 |
) |
|
|
(414 |
) |
|
|
(2,215 |
) |
|
|
(1,785 |
) |
Equity in loss of joint
ventures |
|
(1,878 |
) |
|
|
(1,244 |
) |
|
|
(5,248 |
) |
|
|
(3,997 |
) |
Gain on remeasurement of
investment in real estate partnership |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
51,139 |
|
Gain on sale of real
estate |
|
141 |
|
|
|
— |
|
|
|
874 |
|
|
|
805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
562 |
|
|
|
17 |
|
|
|
1,896 |
|
|
|
51,543 |
|
Provision for income
taxes |
|
178 |
|
|
|
130 |
|
|
|
526 |
|
|
|
10,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
384 |
|
|
|
(113 |
) |
|
|
1,370 |
|
|
|
41,043 |
|
Gain (loss) attributable to
noncontrolling interest |
|
(96 |
) |
|
|
(465 |
) |
|
|
(439 |
) |
|
|
12,236 |
|
Net income
attributable to the Company |
$ |
480 |
|
|
|
352 |
|
|
|
1,809 |
|
|
|
28,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to the
Company- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.05 |
|
|
|
0.04 |
|
|
|
0.19 |
|
|
|
3.08 |
|
Diluted |
$ |
0.05 |
|
|
|
0.04 |
|
|
|
0.19 |
|
|
|
3.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
shares (in thousands) used in computing: |
|
|
|
|
|
|
|
|
|
|
|
-basic earnings per common share |
|
9,397 |
|
|
|
9,363 |
|
|
|
9,382 |
|
|
|
9,352 |
|
-diluted earnings per common share |
|
9,433 |
|
|
|
9,399 |
|
|
|
9,423 |
|
|
|
9,390 |
|
FRP HOLDINGS, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(Unaudited) (In thousands, except share data)
|
September 30, 2022 |
|
December 31, 2021 |
Assets: |
|
|
|
Real estate investments at cost: |
|
|
|
|
|
|
|
Land |
$ |
141,564 |
|
|
|
123,397 |
|
Buildings and
improvements |
|
268,132 |
|
|
|
265,278 |
|
Projects under
construction |
|
13,295 |
|
|
|
8,668 |
|
Total investments in properties |
|
422,991 |
|
|
|
397,343 |
|
Less accumulated depreciation
and depletion |
|
54,523 |
|
|
|
46,678 |
|
Net investments in properties |
|
368,468 |
|
|
|
350,665 |
|
|
|
|
|
|
|
|
|
Real estate held for
investment, at cost |
|
10,079 |
|
|
|
9,722 |
|
Investments in joint
ventures |
|
147,703 |
|
|
|
145,443 |
|
Net real estate investments |
|
526,250 |
|
|
|
505,830 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
144,783 |
|
|
|
161,521 |
|
Cash held in escrow |
|
582 |
|
|
|
752 |
|
Accounts receivable, net |
|
1,530 |
|
|
|
793 |
|
Investments available for sale
at fair value |
|
— |
|
|
|
4,317 |
|
Federal and state income taxes
receivable |
|
— |
|
|
|
1,103 |
|
Unrealized rents |
|
830 |
|
|
|
620 |
|
Deferred costs |
|
2,469 |
|
|
|
2,726 |
|
Other assets |
|
546 |
|
|
|
528 |
|
Total assets |
$ |
676,990 |
|
|
|
678,190 |
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
Secured notes payable |
$ |
178,520 |
|
|
|
178,409 |
|
Accounts payable and accrued
liabilities |
|
4,720 |
|
|
|
6,137 |
|
Other liabilities |
|
1,886 |
|
|
|
1,886 |
|
Federal and state income taxes
payable |
|
456 |
|
|
|
— |
|
Deferred revenue |
|
346 |
|
|
|
369 |
|
Deferred income taxes |
|
64,180 |
|
|
|
64,047 |
|
Deferred compensation |
|
1,310 |
|
|
|
1,302 |
|
Tenant security deposits |
|
887 |
|
|
|
790 |
|
Total liabilities |
|
252,305 |
|
|
|
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 |
|
59,148 |
|
|
|
57,617 |
|
Retained earnings |
|
339,561 |
|
|
|
337,752 |
|
Accumulated other
comprehensive income (loss), net |
|
(1,420 |
) |
|
|
113 |
|
Total shareholders’ equity |
|
398,234 |
|
|
|
396,423 |
|
Noncontrolling interest
MRP |
|
26,451 |
|
|
|
28,827 |
|
Total equity |
|
424,685 |
|
|
|
425,250 |
|
Total liabilities and
equity |
$ |
676,990 |
|
|
|
678,190 |
|
Asset Management
Segment:
|
Three months ended September 30 |
|
|
|
|
(dollars in thousands) |
2022 |
|
% |
|
2021 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
$ |
935 |
|
|
|
100.0 |
% |
|
|
619 |
|
|
|
100.0 |
% |
|
|
316 |
|
|
|
51.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
219 |
|
|
|
23.4 |
% |
|
|
137 |
|
|
|
22.1 |
% |
|
|
82 |
|
|
|
59.9 |
% |
Operating expenses |
|
162 |
|
|
|
17.3 |
% |
|
|
76 |
|
|
|
12.3 |
% |
|
|
86 |
|
|
|
113.2 |
% |
Property taxes |
|
53 |
|
|
|
5.7 |
% |
|
|
37 |
|
|
|
6.0 |
% |
|
|
16 |
|
|
|
43.2 |
% |
Management company
indirect |
|
109 |
|
|
|
11.7 |
% |
|
|
200 |
|
|
|
32.3 |
% |
|
|
(91 |
) |
|
|
-45.5 |
% |
Corporate expense |
|
127 |
|
|
|
13.6 |
% |
|
|
180 |
|
|
|
29.1 |
% |
|
|
(53 |
) |
|
|
-29.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
670 |
|
|
|
71.7 |
% |
|
|
630 |
|
|
|
101.8 |
% |
|
|
40 |
|
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) |
$ |
265 |
|
|
|
28.3 |
% |
|
|
(11 |
) |
|
|
-1.8 |
% |
|
|
276 |
|
|
|
-2509.1 |
% |
Mining Royalty Lands
Segment:
|
Three months ended September 30 |
|
|
|
|
(dollars in thousands) |
2022 |
|
% |
|
2021 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Mining lands lease revenue |
$ |
2,471 |
|
|
|
100.0 |
% |
|
|
2,249 |
|
|
|
100.0 |
% |
|
|
222 |
|
|
|
9.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
172 |
|
|
|
7.0 |
% |
|
|
38 |
|
|
|
1.7 |
% |
|
|
134 |
|
|
|
352.6 |
% |
Operating expenses |
|
18 |
|
|
|
0.7 |
% |
|
|
11 |
|
|
|
0.5 |
% |
|
|
7 |
|
|
|
63.6 |
% |
Property taxes |
|
69 |
|
|
|
2.8 |
% |
|
|
68 |
|
|
|
3.0 |
% |
|
|
1 |
|
|
|
1.5 |
% |
Management company
indirect |
|
129 |
|
|
|
5.2 |
% |
|
|
95 |
|
|
|
4.2 |
% |
|
|
34 |
|
|
|
35.8 |
% |
Corporate expense |
|
83 |
|
|
|
3.4 |
% |
|
|
69 |
|
|
|
3.1 |
% |
|
|
14 |
|
|
|
20.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
471 |
|
|
|
19.1 |
% |
|
|
281 |
|
|
|
12.5 |
% |
|
|
190 |
|
|
|
67.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
$ |
2,000 |
|
|
|
80.9 |
% |
|
|
1,968 |
|
|
|
87.5 |
% |
|
|
32 |
|
|
|
1.6 |
% |
Development
Segment:
|
Three months ended September 30 |
(dollars in thousands) |
2022 |
|
2021 |
|
Change |
|
|
|
|
|
|
Lease revenue |
$ |
412 |
|
|
|
401 |
|
|
|
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
47 |
|
|
|
53 |
|
|
|
(6 |
) |
Operating expenses |
|
250 |
|
|
|
62 |
|
|
|
188 |
|
Property taxes |
|
355 |
|
|
|
355 |
|
|
|
— |
|
Management company
indirect |
|
625 |
|
|
|
335 |
|
|
|
290 |
|
Corporate expense |
|
457 |
|
|
|
326 |
|
|
|
131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
1,734 |
|
|
|
1,131 |
|
|
|
603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
(1,322 |
) |
|
|
(730 |
) |
|
|
(592 |
) |
Stabilized Joint Venture
Segment:
|
Three months ended September 30 |
|
|
|
|
(dollars in thousands) |
2022 |
|
% |
|
2021 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
$ |
5,476 |
|
|
|
100.0 |
% |
|
|
5,204 |
|
|
|
100.0 |
% |
|
|
272 |
|
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
2,306 |
|
|
|
42.1 |
% |
|
|
3,568 |
|
|
|
68.6 |
% |
|
|
(1,262 |
) |
|
|
-35.4 |
% |
Operating expenses |
|
1,537 |
|
|
|
28.1 |
% |
|
|
1,408 |
|
|
|
27.0 |
% |
|
|
129 |
|
|
|
9.2 |
% |
Property taxes |
|
557 |
|
|
|
10.2 |
% |
|
|
526 |
|
|
|
10.1 |
% |
|
|
31 |
|
|
|
5.9 |
% |
Management company
indirect |
|
103 |
|
|
|
1.9 |
% |
|
|
115 |
|
|
|
2.2 |
% |
|
|
(12 |
) |
|
|
-10.4 |
% |
Corporate expense |
|
67 |
|
|
|
1.2 |
% |
|
|
82 |
|
|
|
1.6 |
% |
|
|
(15 |
) |
|
|
-18.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
4,570 |
|
|
|
83.5 |
% |
|
|
5,699 |
|
|
|
109.5 |
% |
|
|
(1,129 |
) |
|
|
-19.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) |
$ |
906 |
|
|
|
16.5 |
% |
|
|
(495 |
) |
|
|
-9.5 |
% |
|
|
1,401 |
|
|
|
-283.0 |
% |
Asset Management
Segment:
|
Nine months ended September 30 |
|
|
|
|
(dollars in thousands) |
2022 |
|
% |
|
2021 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
$ |
2,686 |
|
|
|
100.0 |
% |
|
|
1,919 |
|
|
|
100.0 |
% |
|
|
767 |
|
|
|
40.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
683 |
|
|
|
25.4 |
% |
|
|
408 |
|
|
|
21.3 |
% |
|
|
275 |
|
|
|
67.4 |
% |
Operating expenses |
|
441 |
|
|
|
16.4 |
% |
|
|
289 |
|
|
|
15.0 |
% |
|
|
152 |
|
|
|
52.6 |
% |
Property taxes |
|
158 |
|
|
|
5.9 |
% |
|
|
117 |
|
|
|
6.1 |
% |
|
|
41 |
|
|
|
35.0 |
% |
Management company
indirect |
|
301 |
|
|
|
11.2 |
% |
|
|
577 |
|
|
|
30.1 |
% |
|
|
(276 |
) |
|
|
-47.8 |
% |
Corporate expense |
|
496 |
|
|
|
18.5 |
% |
|
|
682 |
|
|
|
35.5 |
% |
|
|
(186 |
) |
|
|
-27.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
2,079 |
|
|
|
77.4 |
% |
|
|
2,073 |
|
|
|
108.0 |
% |
|
|
6 |
|
|
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) |
$ |
607 |
|
|
|
22.6 |
% |
|
|
(154 |
) |
|
|
-8.0 |
% |
|
|
761 |
|
|
|
-494.2 |
% |
Mining Royalty Lands
Segment:
|
Nine months ended September 30 |
|
|
|
|
(dollars in thousands) |
2022 |
|
% |
|
2021 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Mining lands lease revenue |
$ |
7,779 |
|
|
|
100.0 |
% |
|
|
7,198 |
|
|
|
100.0 |
% |
|
|
581 |
|
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
416 |
|
|
|
5.4 |
% |
|
|
161 |
|
|
|
2.2 |
% |
|
|
255 |
|
|
|
158.4 |
% |
Operating expenses |
|
50 |
|
|
|
0.6 |
% |
|
|
34 |
|
|
|
0.5 |
% |
|
|
16 |
|
|
|
47.1 |
% |
Property taxes |
|
203 |
|
|
|
2.6 |
% |
|
|
199 |
|
|
|
2.8 |
% |
|
|
4 |
|
|
|
2.0 |
% |
Management company
indirect |
|
346 |
|
|
|
4.4 |
% |
|
|
273 |
|
|
|
3.8 |
% |
|
|
73 |
|
|
|
26.7 |
% |
Corporate expense |
|
325 |
|
|
|
4.2 |
% |
|
|
258 |
|
|
|
3.6 |
% |
|
|
67 |
|
|
|
26.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
1,340 |
|
|
|
17.2 |
% |
|
|
925 |
|
|
|
12.9 |
% |
|
|
415 |
|
|
|
44.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit |
$ |
6,439 |
|
|
|
82.8 |
% |
|
|
6,273 |
|
|
|
87.1 |
% |
|
|
166 |
|
|
|
2.6 |
% |
Development
Segment:
|
Nine months ended September 30 |
(dollars in thousands) |
2022 |
|
2021 |
|
Change |
|
|
|
|
|
|
Lease revenue |
$ |
1,203 |
|
|
|
1,169 |
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
139 |
|
|
|
159 |
|
|
|
(20 |
) |
Operating expenses |
|
541 |
|
|
|
133 |
|
|
|
408 |
|
Property taxes |
|
1,066 |
|
|
|
1,082 |
|
|
|
(16 |
) |
Management company
indirect |
|
1,621 |
|
|
|
996 |
|
|
|
625 |
|
Corporate expense |
|
1,794 |
|
|
|
1,267 |
|
|
|
527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
5,161 |
|
|
|
3,637 |
|
|
|
1,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
(3,958 |
) |
|
|
(2,468 |
) |
|
|
(1,490 |
) |
Stabilized Joint Venture
Segment:
|
Nine months ended September 30 |
|
|
|
|
(dollars in thousands) |
2022 |
|
% |
|
2021 |
|
% |
|
Change |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
$ |
15,961 |
|
|
|
100.0 |
% |
|
|
12,535 |
|
|
|
100.0 |
% |
|
|
3,426 |
|
|
|
27.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization |
|
7,272 |
|
|
|
45.6 |
% |
|
|
8,899 |
|
|
|
71.0 |
% |
|
|
(1,627 |
) |
|
|
-18.3 |
% |
Operating expenses |
|
4,284 |
|
|
|
26.9 |
% |
|
|
3,336 |
|
|
|
26.6 |
% |
|
|
948 |
|
|
|
28.4 |
% |
Property taxes |
|
1,676 |
|
|
|
10.5 |
% |
|
|
1,366 |
|
|
|
11.0 |
% |
|
|
310 |
|
|
|
22.7 |
% |
Management company
indirect |
|
277 |
|
|
|
1.7 |
% |
|
|
291 |
|
|
|
2.3 |
% |
|
|
(14 |
) |
|
|
-4.8 |
% |
Corporate expense |
|
261 |
|
|
|
1.6 |
% |
|
|
279 |
|
|
|
2.2 |
% |
|
|
(18 |
) |
|
|
-6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of operations |
|
13,770 |
|
|
|
86.3 |
% |
|
|
14,171 |
|
|
|
113.1 |
% |
|
|
(401 |
) |
|
|
-2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) |
$ |
2,191 |
|
|
|
13.7 |
% |
|
|
(1,636 |
) |
|
|
-13.1 |
% |
|
|
3,827 |
|
|
|
-233.9 |
% |
Non-GAAP Financial
Measures.
To supplement the financial results presented in
accordance with GAAP, FRP presents certain non-GAAP financial
measures within the meaning of Regulation G promulgated by the
Securities and Exchange Commission. We believe these non-GAAP
measures provide useful information to our Board of Directors,
management and investors regarding certain trends relating to our
financial condition and results of operations. Our management uses
these non-GAAP measures to compare our performance to that of prior
periods for trend analyses, purposes of determining management
incentive compensation and budgeting, forecasting and planning
purposes. We provide Pro-rata net operating income (NOI) because we
believe it assists investors and analysts in estimating our
economic interest in our consolidated and unconsolidated
partnerships, when read in conjunction with our reported results
under GAAP. This measure is not, and should not be viewed as, a
substitute for GAAP financial measures.
Pro-Rata Net Operating Income
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
Nine months ended 09/30/22 (in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stabilized |
|
|
|
|
|
|
|
Asset |
|
|
|
Joint |
|
Mining |
|
Unallocated |
|
FRP |
|
Management |
|
Development |
|
Venture |
|
Royalties |
|
Corporate |
|
Holdings |
|
Segment |
|
Segment |
|
Segment |
|
Segment |
|
Expenses |
|
Totals |
Net income (loss) |
$ |
443 |
|
|
|
(4,953 |
) |
|
|
(166 |
) |
|
|
5,311 |
|
|
|
735 |
|
|
|
1,370 |
|
Income tax allocation |
|
164 |
|
|
|
(1,837 |
) |
|
|
101 |
|
|
|
1,969 |
|
|
|
129 |
|
|
|
526 |
|
Income (loss) before
income taxes |
|
607 |
|
|
|
(6,790 |
) |
|
|
(65 |
) |
|
|
7,280 |
|
|
|
864 |
|
|
|
1,896 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
223 |
|
|
|
— |
|
|
|
(62 |
) |
|
|
153 |
|
|
|
— |
|
|
|
314 |
|
Gain on sale of real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
874 |
|
|
|
— |
|
|
|
874 |
|
Interest income |
|
— |
|
|
|
2,311 |
|
|
|
— |
|
|
|
— |
|
|
|
895 |
|
|
|
3,206 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss of joint ventures |
|
— |
|
|
|
5,143 |
|
|
|
72 |
|
|
|
33 |
|
|
|
— |
|
|
|
5,248 |
|
Interest expense |
|
— |
|
|
|
— |
|
|
|
2,184 |
|
|
|
— |
|
|
|
31 |
|
|
|
2,215 |
|
Depreciation/amortization |
|
683 |
|
|
|
139 |
|
|
|
7,272 |
|
|
|
416 |
|
|
|
— |
|
|
|
8,510 |
|
Management company indirect |
|
301 |
|
|
|
1,621 |
|
|
|
277 |
|
|
|
346 |
|
|
|
— |
|
|
|
2,545 |
|
Allocated Corporate expenses |
|
496 |
|
|
|
1,794 |
|
|
|
261 |
|
|
|
325 |
|
|
|
— |
|
|
|
2,876 |
|
Net operating income
(loss) |
|
1,864 |
|
|
|
(404 |
) |
|
|
10,063 |
|
|
|
7,373 |
|
|
|
— |
|
|
|
18,896 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI of noncontrolling
interest |
|
— |
|
|
|
— |
|
|
|
(3,212 |
) |
|
|
— |
|
|
|
— |
|
|
|
(3,212 |
) |
Pro-rata NOI from
unconsolidated joint ventures |
|
— |
|
|
|
1,896 |
|
|
|
390 |
|
|
|
— |
|
|
|
— |
|
|
|
2,286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro-rata net operating
income |
$ |
1,864 |
|
|
|
1,492 |
|
|
|
7,241 |
|
|
|
7,373 |
|
|
|
— |
|
|
|
17,970 |
|
Pro-Rata Net Operating Income
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
Nine months ended 09/30/21 (in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stabilized |
|
|
|
|
|
|
|
Asset |
|
|
|
Joint |
|
Mining |
|
Unallocated |
|
FRP |
|
Management |
|
Development |
|
Venture |
|
Royalties |
|
Corporate |
|
Holdings |
|
Segment |
|
Segment |
|
Segment |
|
Segment |
|
Expenses |
|
Totals |
Net income (loss) |
$ |
(130 |
) |
|
|
(2,521 |
) |
|
|
37,874 |
|
|
|
5,159 |
|
|
|
661 |
|
|
|
41,043 |
|
Income tax allocation |
|
(50 |
) |
|
|
(933 |
) |
|
|
9,506 |
|
|
|
1,913 |
|
|
|
64 |
|
|
|
10,500 |
|
Income (loss) before
income taxes |
|
(180 |
) |
|
|
(3,454 |
) |
|
|
47,380 |
|
|
|
7,072 |
|
|
|
725 |
|
|
|
51,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on remeasurement of real estate investment |
|
— |
|
|
|
— |
|
|
|
51,139 |
|
|
|
— |
|
|
|
— |
|
|
|
51,139 |
|
Gain on investment land sold |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
831 |
|
|
|
— |
|
|
|
831 |
|
Unrealized rents |
|
49 |
|
|
|
— |
|
|
|
149 |
|
|
|
166 |
|
|
|
— |
|
|
|
364 |
|
Interest income |
|
— |
|
|
|
2,608 |
|
|
|
— |
|
|
|
— |
|
|
|
758 |
|
|
|
3,366 |
|
Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of land |
|
26 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26 |
|
Equity in loss of joint ventures |
|
— |
|
|
|
3,594 |
|
|
|
371 |
|
|
|
32 |
|
|
|
— |
|
|
|
3,997 |
|
Interest expense |
|
— |
|
|
|
— |
|
|
|
1,752 |
|
|
|
— |
|
|
|
33 |
|
|
|
1,785 |
|
Depreciation/amortization |
|
408 |
|
|
|
159 |
|
|
|
8,899 |
|
|
|
161 |
|
|
|
— |
|
|
|
9,627 |
|
Management company indirect |
|
577 |
|
|
|
996 |
|
|
|
291 |
|
|
|
273 |
|
|
|
— |
|
|
|
2,137 |
|
Allocated Corporate expenses |
|
682 |
|
|
|
1,267 |
|
|
|
279 |
|
|
|
258 |
|
|
|
— |
|
|
|
2,486 |
|
Net operating income
(loss) |
|
1,464 |
|
|
|
(46 |
) |
|
|
7,684 |
|
|
|
6,799 |
|
|
|
— |
|
|
|
15,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOI of noncontrolling
interest |
|
— |
|
|
|
— |
|
|
|
(2,638 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,638 |
) |
Pro-rata NOI from
unconsolidated joint ventures |
|
— |
|
|
|
(569 |
) |
|
|
909 |
|
|
|
— |
|
|
|
— |
|
|
|
340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro-rata net operating
income |
$ |
1,464 |
|
|
|
(615 |
) |
|
|
5,955 |
|
|
|
6,799 |
|
|
|
— |
|
|
|
13,603 |
|
Contact:
John D. Baker III
Chief Financial Officer
904/858-9100
Grafico Azioni FRP (NASDAQ:FRPH)
Storico
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