FRP Holdings, Inc. (NASDAQ-FRPH) –
FRP Holdings is a real estate asset developer
and manager across three differing asset classes including
Multifamily, Industrial and Commercial, and Mining and Royalty.
Third Quarter
Highlights
- 8% increase in Net Income ($1.4
million vs $1.3 million)
- 39% increase in pro rata NOI ($11.3
million vs $8.1 million)
- Pro rata NOI includes a one-time,
catch-up, minimum royalty payment of $1.9 million that applies to
the prior twenty-four months as the tenant failed to meet a
production requirement contained in the lease. This revenue was
straight-lined over the life of the lease.
- 23% increase in the Multifamily
segment’s pro rata NOI primarily due to lease up of Bryant St., 408
Jackson, and The Verge. This comparison includes the results for
these three projects from the same period last year (when these
projects were still in our Development segment).
- 10% increase in Industrial and
Commercial segment NOI
Executive Summary and Analysis
– In the third quarter, the Company saw a 39% improvement in pro
rata NOI compared to the same period last year, and a 28% increase
in pro rata NOI in the first nine months compared to the same
period last year. This is consistent with the 26.4% CAGR at which
we have grown pro rata NOI over the last three years on a trailing
twelve month basis. The growth in pro rata NOI for the third
quarter was driven by increases across all segments but
particularly in the Mining and Royalties segment (80% increase).
The substantial increase in Mining Royalty NOI was due to a $2
million increase in unrealized revenue. This was mostly the result
of a one-time, minimum royalty payment at one location which is
straight-lined across the life of the lease for GAAP revenue
purposes.
Shell construction is nearly complete for our
Chelsea Project in Harford County, MD, which we expect to come in
under budget. We are working to get shovel ready the sites of our
two industrial JV’s in Florida with an anticipated construction
start for both in March of 2025. These three projects represent
640,000 square feet of new, Class A, industrial product requiring
$116 million in total capex and are in keeping with our stated
strategy of focusing on industrial development. We have
underwritten all these projects at an unlevered 6-7% yield.
Comparative Results of Operations for the Three months
ended September 30, 2024 and
2023
Consolidated Results
| (dollars in thousands) |
|
Three Months EndedSeptember
30, |
| |
|
2024 |
|
2023 |
|
Change |
|
% |
|
Revenues: |
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
7,434 |
|
|
7,509 |
|
|
$ |
(75 |
) |
|
-1.0 |
% |
|
Mining royalty and rents |
|
|
3,199 |
|
|
3,082 |
|
|
|
117 |
|
|
3.8 |
% |
|
Total revenues |
|
|
10,633 |
|
|
10,591 |
|
|
|
42 |
|
|
.4 |
% |
| |
|
|
|
|
|
|
|
|
| Cost of
operations: |
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
2,551 |
|
|
2,816 |
|
|
|
(265 |
) |
|
-9.4 |
% |
|
Operating expenses |
|
|
1,860 |
|
|
2,012 |
|
|
|
(152 |
) |
|
-7.6 |
% |
|
Property taxes |
|
|
850 |
|
|
919 |
|
|
|
(69 |
) |
|
-7.5 |
% |
|
General and administrative |
|
|
2,289 |
|
|
1,948 |
|
|
|
341 |
|
|
17.5 |
% |
| Total cost of operations |
|
|
7,550 |
|
|
7,695 |
|
|
|
(145 |
) |
|
-1.9 |
% |
| |
|
|
|
|
|
|
|
|
| Total operating
profit |
|
|
3,083 |
|
|
2,896 |
|
|
|
187 |
|
|
6.5 |
% |
| |
|
|
|
|
|
|
|
|
| Net investment income |
|
|
2,304 |
|
|
2,700 |
|
|
|
(396 |
) |
|
-14.7 |
% |
| Interest expense |
|
|
(742 |
) |
|
(1,116 |
) |
|
|
374 |
|
|
-33.5 |
% |
| Equity in loss of joint
ventures |
|
|
(2,839 |
) |
|
(2,913 |
) |
|
|
74 |
|
|
-2.5 |
% |
| (Loss) gain on sale of real
estate |
|
|
— |
|
|
(1 |
) |
|
|
1 |
|
|
-100.0 |
% |
| Income before income
taxes |
|
|
1,806 |
|
|
1,566 |
|
|
|
240 |
|
|
15.3 |
% |
| Provision for income
taxes |
|
|
427 |
|
|
467 |
|
|
|
(40 |
) |
|
-8.6 |
% |
| |
|
|
|
|
|
|
|
|
| Net income |
|
|
1,379 |
|
|
1,099 |
|
|
|
280 |
|
|
25.5 |
% |
| Income (loss) attributable to
noncontrolling interest |
|
|
18 |
|
|
(160 |
) |
|
|
178 |
|
|
-111.3 |
% |
| Net income
attributable to the Company |
|
$ |
1,361 |
|
|
1,259 |
|
|
$ |
102 |
|
|
8.1 |
% |
| |
|
|
|
|
|
|
|
|
Net income for the third quarter of 2024 was
$1,361,000 or $.07 per share versus $1,259,000 or $.07 per share in
the same period last year. Pro rata NOI for the third quarter of
2024 was $11,272,000 versus $8,085,000 in the same period last year
including the one-time, $1.9 million royalty payment referenced in
the third quarter highlights. The third quarter of 2024 was
impacted by the following items:
- Operating profit increased 6% as
favorable results in Multifamily, Industrial and Commercial, and
Mining were partially offset by higher net Development segment and
General and administrative costs.
- Net investment income decreased
$396,000 due to reduced income from our lending ventures ($75,000)
and decreased preferred interest ($613,000) due to the conversion
of FRP preferred equity to common equity at Bryant Street partially
offset by increased earnings on cash equivalents ($292,000).
- Interest expense decreased $374,000
compared to the same quarter last year as we capitalized $408,000
more interest this quarter, partially offset by higher costs
related to the increase in our line of credit with Wells Fargo.
More interest was capitalized due to increased in-house and joint
venture projects under development this quarter compared to last
year.
- Equity in loss of Joint Ventures
improved $74,000 due to improved results of our unconsolidated
joint ventures. Results improved at The Verge ($372,000) due to
lease up but were lower at .408 Jackson ($104,000) due to an
increased real estate tax assessment and BC Realty ($196,000) due
to a $302,000 write off of design costs for offices on phase II as
we made the decision to repurpose the plan to a higher and better
use.
Multifamily Segment
(Consolidated)
Our Multifamily Segment has two consolidated
joint ventures (Dock 79 and The Maren).
| |
|
Three months ended September 30 |
|
|
|
|
| (dollars in thousands) |
|
2024 |
|
% |
|
2023 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
5,682 |
|
|
100.0 |
% |
|
5,633 |
|
|
100.0 |
% |
|
49 |
|
|
.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
1,985 |
|
|
35.0 |
% |
|
2,265 |
|
|
40.1 |
% |
|
(280 |
) |
|
-12.4 |
% |
| Operating expenses |
|
|
1,573 |
|
|
27.7 |
% |
|
1,773 |
|
|
31.5 |
% |
|
(200 |
) |
|
-11.3 |
% |
| Property taxes |
|
|
565 |
|
|
9.9 |
% |
|
555 |
|
|
9.9 |
% |
|
10 |
|
|
1.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
|
4,123 |
|
|
72.6 |
% |
|
4,593 |
|
|
81.5 |
% |
|
(470 |
) |
|
-10.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before
G&A |
|
$ |
1,559 |
|
|
27.4 |
% |
|
1,040 |
|
|
18.5 |
% |
|
519 |
|
|
49.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues for our two consolidated joint
ventures were $5,682,000, an increase of $49,000 versus $5,633,000
in the same period last year. Total operating profit before G&A
for the consolidated joint ventures was $1,559,000, an increase of
$519,000, or 50% versus $1,040,000 in the same period last year
primarily due to lower depreciation and operating expenses.
Depreciation decreased as some of the assets became fully
depreciated. Operating expenses decreased due to lower maintenance,
utilities, insurance and marketing costs.
Multifamily Segment (Pro rata
unconsolidated)
Our Multifamily Segment has four unconsolidated
joint ventures (Bryant Street, The Verge, Riverside, and .408
Jackson). Riverside was moved from the Development segment to the
Multifamily segment in 2022, Bryant Street and .408 Jackson moved
as of the beginning of 2024 and The Verge moved effective July 1,
2024, each upon reaching lease up stabilization.
| |
|
Three months ended September 30 |
|
|
|
|
| (dollars in thousands) |
|
2024 |
|
% |
|
2023 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
5,119 |
|
|
100.0 |
% |
|
4,103 |
|
|
100.0 |
% |
|
1,016 |
|
|
24.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
2,228 |
|
|
43.5 |
% |
|
1,813 |
|
|
44.2 |
% |
|
415 |
|
|
22.9 |
% |
| Operating expenses |
|
|
1,895 |
|
|
37.0 |
% |
|
1,652 |
|
|
40.3 |
% |
|
243 |
|
|
14.7 |
% |
| Property taxes |
|
|
467 |
|
|
9.1 |
% |
|
487 |
|
|
11.9 |
% |
|
(20 |
) |
|
-4.1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
|
4,590 |
|
|
89.7 |
% |
|
3,952 |
|
|
96.3 |
% |
|
638 |
|
|
16.1 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before
G&A |
|
$ |
529 |
|
|
10.3 |
% |
|
151 |
|
|
3.7 |
% |
|
378 |
|
|
250.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For our four unconsolidated joint ventures, pro
rata revenues were $5,119,000, an increase of $1,016,000 or 25%
compared to $4,103,000 in the same period last year. Pro rata
operating profit before G&A was $529,000, an increase of
$378,000 or 250% versus $151,000 in the same period last year.
Multifamily Segment (Pro rata
consolidated and pro rata unconsolidated)
For ease of comparison all the figures in the
tables below include the results for Bryant Street, .408 Jackson,
and The Verge from the same period last year (when these projects
were still in our Development segment).
| |
|
Three months ended September 30 |
|
|
|
|
| (dollars in thousands) |
|
2024 |
|
% |
|
2023 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
8,215 |
|
|
100.0 |
% |
|
7,171 |
|
|
100.0 |
% |
|
1,044 |
|
|
14.6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
3,316 |
|
|
40.4 |
% |
|
3,049 |
|
|
42.5 |
% |
|
267 |
|
|
8.8 |
% |
| Operating expenses |
|
|
2,749 |
|
|
33.5 |
% |
|
2,622 |
|
|
36.6 |
% |
|
127 |
|
|
4.8 |
% |
| Property taxes |
|
|
774 |
|
|
9.4 |
% |
|
788 |
|
|
11.0 |
% |
|
(14 |
) |
|
-1.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
|
6,839 |
|
|
83.3 |
% |
|
6,459 |
|
|
90.1 |
% |
|
380 |
|
|
5.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before
G&A |
|
$ |
1,376 |
|
|
16.7 |
% |
|
712 |
|
|
9.9 |
% |
|
664 |
|
|
93.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
3,316 |
|
|
|
|
3,049 |
|
|
|
|
267 |
|
|
|
| Unnrealized rents &
other |
|
|
30 |
|
|
|
|
64 |
|
|
|
|
(34 |
) |
|
|
| Net operating income |
|
$ |
4,722 |
|
|
57.5 |
% |
|
3,825 |
|
|
53.3 |
% |
|
897 |
|
|
23.5 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The combined consolidated and unconsolidated pro
rata net operating income this quarter for this segment was
$4,722,000, up $897,000 or 23% compared to $3,825,000 in the same
quarter last year. Most of this increase was from the lease up of
Bryant Street, .408 Jackson, and The Verge. These three projects
contributed $2,542,000 of pro rata NOI to this segment compared to
$1,787,000 in the Development segment in the same quarter last
year, an increase of $755,000. Same store NOI increased $142,000 or
7%,
|
Apartment Building |
Units |
|
Pro rata NOIQ3 2024 |
Pro rata NOIQ3 2023 |
Avg.OccupancyQ3 2024 |
Avg.OccupancyCY 2023 |
RenewalSuccessRateQ3 2024 |
Renewal% increaseQ3 2024 |
| |
|
|
|
|
|
|
|
|
| Dock 79 Anacostia DC |
305 |
|
$964,000 |
$952,000 |
94.0% |
94.4% |
71.4% |
2.9% |
| Maren Anacostia DC |
264 |
|
$973,000 |
$855,000 |
94.9% |
95.6% |
50.7% |
2.3% |
| Riverside Greenville |
200 |
|
$243,000 |
$231,000 |
94.0% |
94.5% |
56.0% |
2.7% |
| Bryant Street DC |
487 |
|
$1,537,000 |
$1,210,000 |
91.5% |
92.9% |
56.7% |
2.0% |
| .408 Jackson Greenville |
227 |
|
$362,000 |
$284,000 |
94.5% |
59.9% |
52.9% |
6.1% |
| Verge
Anacostia DC |
344 |
|
$643,000 |
$293,000 |
90.1% |
47.3% |
63.6% |
3.9% |
|
Multifamily Segment |
1,483 |
|
$4,722,000 |
$3,825,000 |
92.8% |
81.0% |
|
|
| |
|
|
|
|
|
|
|
|
Industrial and Commercial
Segment
| |
|
Three months ended September 30 |
|
|
|
|
| (dollars in thousands) |
|
2024 |
|
% |
|
2023 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
1,455 |
|
|
100.0 |
% |
|
|
1,442 |
|
|
100.0 |
% |
|
|
13 |
|
|
0.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
360 |
|
|
24.7 |
% |
|
|
369 |
|
|
25.6 |
% |
|
|
(9 |
) |
|
(2.4 |
%) |
| Operating expenses |
|
|
185 |
|
|
12.7 |
% |
|
|
173 |
|
|
12.0 |
% |
|
|
12 |
|
|
6.9 |
% |
| Property taxes |
|
|
68 |
|
|
4.7 |
% |
|
|
62 |
|
|
4.3 |
% |
|
|
6 |
|
|
9.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
|
613 |
|
|
42.1 |
% |
|
|
604 |
|
|
41.9 |
% |
|
|
9 |
|
|
1.5 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before
G&A |
|
$ |
842 |
|
|
57.9 |
% |
|
|
838 |
|
|
58.1 |
% |
|
|
4 |
|
|
0.5 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
360 |
|
|
|
|
|
369 |
|
|
|
|
|
(9 |
) |
|
|
| Unrealized revenues |
|
|
7 |
|
|
|
|
|
(111 |
) |
|
|
|
|
118 |
|
|
|
| Net operating income |
|
$ |
1,209 |
|
|
83.1 |
% |
|
$ |
1,096 |
|
|
76.0 |
% |
|
$ |
113 |
|
|
10.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues in this segment were $1,455,000,
up $13,000 or 1%, over the same period last year. Operating profit
before G&A was $842,000, up $4,000 or 0.5% over the same
quarter last year. We now have nine buildings in service at three
different locations totaling 515,077 square feet of industrial and
33,708 square feet of office. These assets were 95.6% leased and
occupied during the entire quarter. Net operating income in this
segment was $1,209,000, up $113,000 or 10% compared to the same
quarter last year primarily due to more unrealized rental revenue
in the prior year due to rent abatements that expired in 2023.
Mining Royalty Lands Segment Results
| |
|
Three months ended September 30 |
|
|
|
|
| (dollars in thousands) |
|
2024 |
|
% |
|
2023 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining royalty and rent revenue |
|
$ |
3,199 |
|
|
100.0 |
% |
|
|
3,082 |
|
|
100.0 |
% |
|
|
117 |
|
|
3.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and
amortization |
|
|
163 |
|
|
5.1 |
% |
|
|
138 |
|
|
4.4 |
% |
|
|
25 |
|
|
18.1 |
% |
| Operating expenses |
|
|
20 |
|
|
0.6 |
% |
|
|
18 |
|
|
0.6 |
% |
|
|
2 |
|
|
11.1 |
|
| Property taxes |
|
|
70 |
|
|
2.2 |
% |
|
|
181 |
|
|
5.9 |
% |
|
|
(111 |
) |
|
-61.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
|
253 |
|
|
7.9 |
% |
|
|
337 |
|
|
10.9 |
% |
|
|
(84 |
) |
|
-24.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before
G&A |
|
$ |
2,946 |
|
|
92.1 |
% |
|
|
2,745 |
|
|
89.1 |
% |
|
|
201 |
|
|
7.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
163 |
|
|
|
|
|
138 |
|
|
|
|
|
25 |
|
|
|
| Unrealized revenues |
|
|
1,994 |
|
|
|
|
|
(46 |
) |
|
|
|
|
2,040 |
|
|
|
| Net operating income |
|
$ |
5,103 |
|
|
159.5 |
% |
|
$ |
2,837 |
|
|
92.1 |
% |
|
$ |
2,266 |
|
|
79.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues in this segment were $3,199,000,
an increase of $117,000 or 3.8% versus $3,082,000 in the same
period last year. Royalty tons were down 3%. Total operating profit
before G&A in this segment was $2,946,000, an increase of
$201,000 versus $2,745,000 in the same period last year due to
higher revenues and lower property taxes. Net Operating Income this
quarter for this segment was $5,103,000, up $2,266,000 or 80%
compared to the same quarter last year mostly due to a $2,040,000
increase in unrealized revenues. This was mostly the result of a
one-time, minimum royalty payment at one location which is
straight-lined across the life of the lease for GAAP revenue
purposes.
Development Segment Results
| |
|
Three months ended September 30 |
|
|
| (dollars in thousands) |
|
2024 |
|
2023 |
|
Change |
| |
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
297 |
|
|
434 |
|
|
(137 |
) |
| |
|
|
|
|
|
|
|
| Depreciation, depletion and
amortization |
|
|
43 |
|
|
44 |
|
|
(1 |
) |
| Operating expenses |
|
|
82 |
|
|
48 |
|
|
34 |
|
| Property taxes |
|
|
147 |
|
|
121 |
|
|
26 |
|
| |
|
|
|
|
|
|
|
| Cost of operations |
|
|
272 |
|
|
213 |
|
|
59 |
|
| |
|
|
|
|
|
|
|
| Operating profit before
G&A |
|
$ |
25 |
|
|
221 |
|
|
(196 |
) |
| |
|
|
|
|
|
|
|
|
|
|
With respect to ongoing Development Segment
projects:
- We entered into two new joint
venture agreements in early 2024 with BBX Logistics. The first
joint venture is a 200,000 square-foot warehouse development
project in Lakeland, FL, and the second joint venture is a 182,000
square-foot warehouse redevelopment project in Broward County, FL.
We anticipate construction to start on both projects in the first
quarter of 2025.
- Last summer we broke ground on a
new speculative warehouse project in Aberdeen, MD on Chelsea Road.
Vertical construction is underway. This Class A, 258,000 square
foot building is due to be complete in the 4th quarter of
2024.
- We are the principal capital source
to develop 344 residential lots on 110 acres in Harford County, MD.
We have funded $25.5 million of our $31.1 million total commitment.
A national homebuilder is under contract to purchase all 222
townhome lots and 122 single family lots. At quarter-end, 79 lots
have been sold and $12.9 million of preferred interest and
principal has been returned to the company of which $3.6 million
was booked as profit to the Company.
Nine Month Highlights
- 94% increase in Net Income ($4.7
million vs $2.4 million)
- 28% increase in pro rata NOI ($29.0
million vs $22.7 million), including the one-time, $1.9 million
minimum royalty payment referenced previously
- 39% increase in the Multifamily
segment’s pro rata NOI primarily due to lease up of Bryant St., 408
Jackson, and The Verge. This comparison includes the results for
these three projects from the same period last year (when these
projects were still in our Development segment).
- 11% increase in Industrial and
Commercial revenue and 30% increase in that segment’s NOI
Comparative Results of Operations for
the Nine months ended
September 30, 2024 and
2023
Consolidated Results
| (dollars in thousands) |
|
Nine Months EndedSeptember
30, |
| |
|
2024 |
|
2023 |
|
Change |
|
% |
|
Revenues: |
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
21,850 |
|
|
|
21,773 |
|
|
$ |
77 |
|
|
.4 |
% |
|
Mining royalty and rents |
|
|
9,393 |
|
|
|
9,628 |
|
|
|
(235 |
) |
|
-2.4 |
% |
|
Total revenues |
|
|
31,243 |
|
|
|
31,401 |
|
|
|
(158 |
) |
|
-.5 |
% |
| |
|
|
|
|
|
|
|
|
| Cost of
operations: |
|
|
|
|
|
|
|
|
|
Depreciation/depletion/amortization |
|
|
7,629 |
|
|
|
8,415 |
|
|
|
(786 |
) |
|
-9.3 |
% |
|
Operating expenses |
|
|
5,429 |
|
|
|
5,574 |
|
|
|
(145 |
) |
|
-2.6 |
% |
|
Property taxes |
|
|
2,517 |
|
|
|
2,745 |
|
|
|
(228 |
) |
|
-8.3 |
% |
|
General and administrative |
|
|
6,883 |
|
|
|
6,150 |
|
|
|
733 |
|
|
11.9 |
% |
| Total cost of operations |
|
|
22,458 |
|
|
|
22,884 |
|
|
|
(426 |
) |
|
-1.9 |
% |
| |
|
|
|
|
|
|
|
|
| Total operating
profit |
|
|
8,785 |
|
|
|
8,517 |
|
|
|
268 |
|
|
3.1 |
% |
| |
|
|
|
|
|
|
|
|
| Net investment income |
|
|
8,795 |
|
|
|
8,207 |
|
|
|
588 |
|
|
7.2 |
% |
| Interest expense |
|
|
(2,482 |
) |
|
|
(3,251 |
) |
|
|
769 |
|
|
-23.7 |
% |
| Equity in loss of joint
ventures |
|
|
(8,582 |
) |
|
|
(10,585 |
) |
|
|
2,003 |
|
|
-18.9 |
% |
| Gain on sale of real
estate |
|
|
— |
|
|
|
7 |
|
|
|
(7 |
) |
|
-100.0 |
% |
| Income before income
taxes |
|
|
6,516 |
|
|
|
2,895 |
|
|
|
3,621 |
|
|
125.1 |
% |
| Provision for income
taxes |
|
|
1,743 |
|
|
|
898 |
|
|
|
845 |
|
|
94.1 |
% |
| |
|
|
|
|
|
|
|
|
| Net income |
|
|
4,773 |
|
|
|
1,997 |
|
|
|
2,776 |
|
|
139.0 |
% |
| Income (loss) attributable to
noncontrolling interest |
|
|
67 |
|
|
|
(425 |
) |
|
|
492 |
|
|
-115.8 |
% |
| Net income
attributable to the Company |
|
$ |
4,706 |
|
|
$ |
2,422 |
|
|
$ |
2,284 |
|
|
94.3 |
% |
| |
|
|
|
|
|
|
|
|
Net income for the first nine months of 2024 was
$4,706,000 or $.25 per share versus $2,422,000 or $.13 per share in
the same period last year. Pro rata NOI for the first nine months
of 2024 was $29,036,000 versus $22,687,000 in the same period last
year. The first nine months of 2024 were impacted by the following
items:
- Operating profit increased 3.1% as
favorable results in Multifamily and Industrial and Commercial were
mostly offset by lower Mining profits and higher net Development
and General and administrative costs.
- Pro rata NOI includes a one-time,
catch-up, minimum royalty payment of $1,853,000 that applies to the
prior twenty-four months as the tenant failed to meet a production
requirement contained in the lease. This revenue was straight-lined
over the life of the lease.
- Net investment income increased
$588,000 due to increased earnings on cash equivalents ($1,252,000)
and increased income from our lending ventures ($1,155,000),
partially offset by decreased preferred interest ($1,819,000) due
to the conversion of FRP preferred equity to common equity at
Bryant Street.
- Interest expense decreased $769,000
compared to the same period last year as we capitalized $869,000
more interest, partially offset by increased costs related to the
increase in our line of credit with Wells Fargo. More interest was
capitalized due to increased in-house and joint venture projects
under development this quarter compared to last year.
- Equity in loss of Joint Ventures
improved $2,003,000 due to improved results at our unconsolidated
joint ventures. Results improved at The Verge ($1,959,000) and .408
Jackson ($169,000).
Multifamily Segment
(Consolidated)
| |
|
Nine Months Ended September 30, |
|
|
|
|
| (dollars in thousands) |
|
2024 |
|
% |
|
2023 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
16,592 |
|
|
100.0 |
% |
|
16,454 |
|
|
100.0 |
% |
|
138 |
|
|
.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
5,947 |
|
|
35.9 |
% |
|
6,797 |
|
|
41.3 |
% |
|
(850 |
) |
|
-12.5 |
% |
| Operating expenses |
|
|
4,553 |
|
|
27.4 |
% |
|
4,818 |
|
|
29.3 |
% |
|
(265 |
) |
|
-5.5 |
% |
| Property taxes |
|
|
1,665 |
|
|
10.0 |
% |
|
1,649 |
|
|
10.0 |
% |
|
16 |
|
|
1.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
|
12,165 |
|
|
73.3 |
% |
|
13,264 |
|
|
80.6 |
% |
|
(1,099 |
) |
|
-8.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before
G&A |
|
$ |
4,427 |
|
|
26.7 |
% |
|
3,190 |
|
|
19.4 |
% |
|
1,237 |
|
|
38.8 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues for our two consolidated joint
ventures were $16,592,000, an increase of $138,000 versus
$16,454,000 in the same period last year. Total operating profit
before G&A for the consolidated joint ventures was $4,427,000,
an increase of $1,237,000, or 39% versus $3,190,000 in the same
period last year primarily due to lower depreciation and operating
expense. Depreciation decreased as some of the assets became fully
depreciated. Operating expenses decreased due to lower maintenance,
utilities, insurance and marketing costs.
Multifamily Segment (Pro rata
unconsolidated)
| |
|
Nine Months Ended September 30, |
|
|
|
|
|
| (dollars in thousands) |
|
2024 |
|
% |
|
2023 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
15,173 |
|
|
100.0 |
% |
|
10,377 |
|
|
100.0 |
% |
|
4,796 |
|
|
46.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
6,747 |
|
|
44.5 |
% |
|
5,854 |
|
|
56.4 |
% |
|
893 |
|
|
15.3 |
% |
| Operating expenses |
|
|
5,358 |
|
|
35.3 |
% |
|
4,667 |
|
|
45.0 |
% |
|
691 |
|
|
14.8 |
% |
| Property taxes |
|
|
1,665 |
|
|
11.0 |
% |
|
1,292 |
|
|
12.5 |
% |
|
373 |
|
|
28.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
|
13,770 |
|
|
90.8 |
% |
|
11,813 |
|
|
113.8 |
% |
|
1,957 |
|
|
16.6 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit |
|
$ |
1,403 |
|
|
9.2 |
% |
|
(1,436 |
) |
|
(13.8 |
%) |
|
2,839 |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
For our four unconsolidated joint ventures, pro
rata revenues were $15,173,000, an increase of $4,796,000 or 46%
compared to $10,377,000 in the same period last year. Pro rata
operating profit before G&A was $1,403,000, an increase of
$2,839,000 versus a loss of $1,436,000 in the same period last
year.
Multifamily Segment (Pro rata
consolidated and pro rata unconsolidated)
For ease of comparison all the figures in the
tables below include the results for Bryant Street, .408 Jackson,
and The Verge from prior periods (when these projects were still in
our Development segment).
| |
|
Nine Months Ended September 30, |
|
|
|
|
| (dollars in thousands) |
|
2024 |
|
% |
|
2023 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
24,214 |
|
|
100.0 |
% |
|
19,343 |
|
|
100.0 |
% |
|
4,871 |
|
|
25.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
10,006 |
|
|
41.3 |
% |
|
9,565 |
|
|
49.4 |
% |
|
441 |
|
|
4.6 |
% |
| Operating expenses |
|
|
7,844 |
|
|
32.4 |
% |
|
7,324 |
|
|
37.9 |
% |
|
520 |
|
|
7.1 |
% |
| Property taxes |
|
|
2,570 |
|
|
10.6 |
% |
|
2,188 |
|
|
11.3 |
% |
|
382 |
|
|
17.5 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
|
20,420 |
|
|
84.3 |
% |
|
19,077 |
|
|
98.6 |
% |
|
1,343 |
|
|
7.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before
G&A |
|
$ |
3,794 |
|
|
15.7 |
% |
|
266 |
|
|
1.4 |
% |
|
3,528 |
|
|
1326.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
10,006 |
|
|
|
|
9,565 |
|
|
|
|
441 |
|
|
|
| Unnrealized rents &
other |
|
|
91 |
|
|
|
|
184 |
|
|
|
|
(93 |
) |
|
|
| Net operating income |
|
$ |
13,891 |
|
|
57.4 |
% |
|
10,015 |
|
|
51.8 |
% |
|
3,876 |
|
|
38.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The combined consolidated and unconsolidated pro
rata net operating income this quarter for this segment was
$13,891,000, up $3,876,000 or 39% compared to $10,015,000 in the
same period last year. Most of this increase was from the lease up
of Bryant Street, .408 Jackson, and The Verge. These three projects
contributed $7,547,000 of pro rata NOI to this segment compared to
$3,803,000 in the Development segment in the same period last year,
an increase of $3,744,000. Same store NOI increased $132,000 or
2%.
|
Apartment Building |
Units |
|
Pro rata NOIYTD 2024 |
Pro rata NOIYTD 2023 |
Avg.OccupancyYTD 2024 |
Avg.OccupancyCY 2023 |
RenewalSuccessRateYTD 2024 |
Renewal% increaseYTD 2024 |
| |
|
|
|
|
|
|
|
|
| Dock 79 Anacostia DC |
305 |
|
$2,842,000 |
$2,825,000 |
94.1% |
94.4% |
68.3% |
3.2% |
| Maren Anacostia DC |
264 |
|
$2,820,000 |
$2,711,000 |
94.5% |
95.6% |
56.8% |
2.2% |
| Riverside Greenville |
200 |
|
$682,000 |
$676,000 |
93.6% |
94.5% |
57.5% |
3.1% |
| Bryant Street DC |
487 |
|
$4,588,000 |
$3,595,000 |
91.9% |
92.9% |
57.5% |
2.8% |
| .408 Jackson Greenville |
227 |
|
$1,000,000 |
$350,000 |
94.6% |
59.9% |
53.3% |
5.0% |
| Verge
Anacostia DC |
344 |
|
$1,959,000 |
-$142,000 |
89.7% |
47.3% |
67.4 % |
1.8% |
|
Multifamily Segment |
1,483 |
|
$13,891,000 |
$10,015,000 |
92.7% |
|
|
|
| |
|
|
|
|
|
|
|
|
Industrial and Commercial
Segment
| |
|
Nine Months Ended September 30, |
|
|
|
|
| (dollars in thousands) |
|
2024 |
|
% |
|
2023 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
4,353 |
|
|
100.0 |
% |
|
|
3,932 |
|
|
100.0 |
% |
|
|
421 |
|
|
10.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
1,083 |
|
|
24.8 |
% |
|
|
1,006 |
|
|
25.6 |
% |
|
|
77 |
|
|
7.7 |
% |
| Operating expenses |
|
|
591 |
|
|
13.6 |
% |
|
|
490 |
|
|
12.5 |
% |
|
|
101 |
|
|
20.6 |
% |
| Property taxes |
|
|
195 |
|
|
4.5 |
% |
|
|
185 |
|
|
4.7 |
% |
|
|
10 |
|
|
5.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
|
1,869 |
|
|
42.9 |
% |
|
|
1,681 |
|
|
42.8 |
% |
|
|
188 |
|
|
11.2 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before
G&A |
|
$ |
2,484 |
|
|
57.1 |
% |
|
|
2,251 |
|
|
57.2 |
% |
|
|
233 |
|
|
10.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
1,083 |
|
|
|
|
|
1,006 |
|
|
|
|
|
77 |
|
|
|
| Unrealized revenues |
|
|
(12 |
) |
|
|
|
|
(531 |
) |
|
|
|
|
519 |
|
|
|
| Net operating income |
|
$ |
3,555 |
|
|
81.7 |
% |
|
$ |
2,726 |
|
|
69.3 |
% |
|
$ |
829 |
|
|
30.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues in this segment were $4,353,000,
up $421,000 or 11%, over the same period last year. Operating
profit before G&A was $2,484,000, up $233,000 or 10% from
$2,251,000 in the same quarter last year. Revenues and operating
profit are up because of full occupancy at 1841 62nd Street (which
had only $11,000 of revenue in the first quarter last year) and the
addition of 1941 62nd Street to this segment in March 2023. We were
95.6% leased and occupied during the entire period. Net operating
income in this segment was $3,555,000, up $829,000 or 30% compared
to the same period last year partially due to $519,000 more
unrealized rental revenue in the prior year due to rent abatements
that expired in 2023.
Mining Royalty Lands Segment
Results
| |
|
Nine Months Ended September 30, |
|
|
|
|
| (dollars in thousands) |
|
2024 |
|
% |
|
2023 |
|
% |
|
Change |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Mining royalty and rent revenue |
|
$ |
9,393 |
|
|
100.0 |
% |
|
|
9,628 |
|
|
100.0 |
% |
|
|
(235 |
) |
|
-2.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation, depletion and
amortization |
|
|
471 |
|
|
5.0 |
% |
|
|
472 |
|
|
4.9 |
% |
|
|
(1 |
) |
|
-0.2 |
% |
| Operating expenses |
|
|
53 |
|
|
0.6 |
% |
|
|
51 |
|
|
0.5 |
% |
|
|
2 |
|
|
3.9 |
|
| Property taxes |
|
|
214 |
|
|
2.3 |
% |
|
|
324 |
|
|
3.4 |
% |
|
|
(110 |
) |
|
-34.0 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of operations |
|
|
738 |
|
|
7.9 |
% |
|
|
847 |
|
|
8.8 |
% |
|
|
(109 |
) |
|
-12.9 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating profit before
G&A |
|
$ |
8,655 |
|
|
92.1 |
% |
|
|
8,781 |
|
|
91.2 |
% |
|
|
(126 |
) |
|
-1.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
471 |
|
|
|
|
|
472 |
|
|
|
|
|
(1 |
) |
|
|
| Unrealized revenues |
|
|
1,765 |
|
|
|
|
|
(143 |
) |
|
|
|
|
1,908 |
|
|
|
| Net operating income |
|
$ |
10,891 |
|
|
115.9 |
% |
|
$ |
9,110 |
|
|
94.6 |
% |
|
$ |
1,781 |
|
|
19.5 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues in this segment were $9,393,000,
a decrease of $235,000 or 2% versus $9,628,000 in the same period
last year. Royalty revenues were impacted by the deduction of
royalties to resolve an $842,000 overpayment which we referenced
previously. Through the first three quarters of this year, the
tenant has withheld $619,000 in royalties otherwise due to the
Company with the remainder ($223,000) withheld in the fourth
quarter of 2023. There are no further amounts to be withheld moving
forward. Royalty tons were down 8%. Total operating profit before
G&A in this segment was $8,655,000, a decrease of $126,000
versus $8,781,000 in the same period last year. Net operating
income in this segment was $10,891,000, up $1,781,000 or 20%
compared to the same period last year mostly due to a $1,908,000
increase in unrealized revenues (see discussion in the Mining
segment's quarterly analysis).
Development Segment Results
| |
|
Nine Months Ended September 30, |
|
|
| (dollars in thousands) |
|
2024 |
|
2023 |
|
Change |
| |
|
|
|
|
|
|
|
|
Lease revenue |
|
$ |
905 |
|
|
1,387 |
|
|
(482 |
) |
| |
|
|
|
|
|
|
|
| Depreciation, depletion and
amortization |
|
|
128 |
|
|
140 |
|
|
(12 |
) |
| Operating expenses |
|
|
232 |
|
|
215 |
|
|
17 |
|
| Property taxes |
|
|
443 |
|
|
587 |
|
|
(144 |
) |
| |
|
|
|
|
|
|
|
| Cost of operations |
|
|
803 |
|
|
942 |
|
|
(139 |
) |
| |
|
|
|
|
|
|
|
| Operating profit before
G&A |
|
$ |
102 |
|
|
445 |
|
|
(343 |
) |
|
FRP HOLDINGS, INC. AND SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(Unaudited) (In thousands, except share data) |
| |
| Assets: |
|
September 302024 |
|
December 312023 |
| Real estate investments at
cost: |
|
|
|
|
|
|
Land |
|
$ |
168,958 |
|
|
141,602 |
|
| Buildings and
improvements |
|
|
283,104 |
|
|
282,631 |
|
| Projects under
construction |
|
|
29,414 |
|
|
10,845 |
|
|
Total investments in properties |
|
|
481,476 |
|
|
435,078 |
|
| Less accumulated depreciation
and depletion |
|
|
75,183 |
|
|
67,758 |
|
|
Net investments in properties |
|
|
406,293 |
|
|
367,320 |
|
| |
|
|
|
|
|
| Real estate held for
investment, at cost |
|
|
11,290 |
|
|
10,662 |
|
| Investments in joint
ventures |
|
|
157,272 |
|
|
166,066 |
|
|
Net real estate investments |
|
|
574,855 |
|
|
544,048 |
|
| |
|
|
|
|
|
| Cash and cash equivalents |
|
|
144,681 |
|
|
157,555 |
|
| Cash held in escrow |
|
|
981 |
|
|
860 |
|
| Accounts receivable, net |
|
|
1,826 |
|
|
1,046 |
|
| Federal and state income taxes
receivable |
|
|
— |
|
|
337 |
|
| Unrealized rents |
|
|
1,395 |
|
|
1,640 |
|
| Deferred costs |
|
|
2,569 |
|
|
3,091 |
|
| Other assets |
|
|
611 |
|
|
589 |
|
|
Total assets |
|
$ |
726,918 |
|
|
709,166 |
|
| |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
| Secured notes payable |
|
$ |
178,816 |
|
|
178,705 |
|
| Accounts payable and accrued
liabilities |
|
|
6,060 |
|
|
8,333 |
|
| Other liabilities |
|
|
1,487 |
|
|
1,487 |
|
| Federal and state income taxes
payable |
|
|
452 |
|
|
— |
|
| Deferred revenue |
|
|
2,392 |
|
|
925 |
|
| Deferred income taxes |
|
|
68,356 |
|
|
69,456 |
|
| Deferred compensation |
|
|
1,451 |
|
|
1,409 |
|
| Tenant security deposits |
|
|
801 |
|
|
875 |
|
| Total liabilities |
|
|
259,815 |
|
|
261,190 |
|
| |
|
|
|
|
|
| Commitments and
contingencies |
|
|
— |
|
|
— |
|
| |
|
|
|
|
|
| Equity: |
|
|
|
|
|
| Common stock, $.10 par value
25,000,000 shares authorized, 19,030,474 and 18,968,448 shares
issued and outstanding, respectively |
|
|
1,903 |
|
|
1,897 |
|
| Capital in excess of par
value |
|
|
68,313 |
|
|
66,706 |
|
| Retained earnings |
|
|
350,588 |
|
|
345,882 |
|
| Accumulated other
comprehensive income, net |
|
|
80 |
|
|
35 |
|
|
Total shareholders’ equity |
|
|
420,884 |
|
|
414,520 |
|
| Noncontrolling interests |
|
|
46,219 |
|
|
33,456 |
|
|
Total equity |
|
|
467,103 |
|
|
447,976 |
|
| Total liabilities and
equity |
|
$ |
726,918 |
|
|
709,166 |
|
| |
|
|
|
|
|
|
|
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. For ease of comparison all
the figures in the tables below include the results for Bryant
Street, .408 Jackson, and The Verge in the Multifamily segment for
all periods shown.
| Pro rata Net Operating Income
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine months ended 09/30/24 (in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Industrial andCommercialSegment |
|
DevelopmentSegment |
|
MultifamilySegment |
|
MiningRoyaltiesSegment |
|
UnallocatedCorporateExpenses |
|
FRPHoldingsTotals |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
1,222 |
|
|
(2,498 |
) |
|
(3,951 |
) |
|
5,884 |
|
|
4,116 |
|
|
4,773 |
|
| Income tax allocation |
|
|
376 |
|
|
(767 |
) |
|
(1,224 |
) |
|
1,808 |
|
|
1,550 |
|
|
1,743 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income
taxes |
|
|
1,598 |
|
|
(3,265 |
) |
|
(5,175 |
) |
|
7,692 |
|
|
5,666 |
|
|
6,516 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
|
12 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
12 |
|
|
Interest income |
|
|
|
2,995 |
|
|
|
|
|
|
|
5,800 |
|
|
8,795 |
|
| Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
|
— |
|
|
— |
|
|
— |
|
|
1,765 |
|
|
— |
|
|
1,765 |
|
|
Professional fees |
|
|
— |
|
|
— |
|
|
15 |
|
|
— |
|
|
— |
|
|
15 |
|
|
Equity in loss of joint ventures |
|
|
— |
|
|
2,081 |
|
|
6,466 |
|
|
35 |
|
|
— |
|
|
8,582 |
|
|
Interest expense |
|
|
— |
|
|
— |
|
|
2,348 |
|
|
— |
|
|
134 |
|
|
2,482 |
|
|
Depreciation/amortization |
|
|
1,083 |
|
|
128 |
|
|
5,947 |
|
|
471 |
|
|
— |
|
|
7,629 |
|
|
General and administrative |
|
|
886 |
|
|
4,281 |
|
|
788 |
|
|
928 |
|
|
— |
|
|
6,883 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
| Net operating income
(loss) |
|
|
3,555 |
|
|
230 |
|
|
10,389 |
|
|
10,891 |
|
|
— |
|
|
25,065 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NOI of noncontrolling
interest |
|
|
— |
|
|
— |
|
|
(4,727 |
) |
|
— |
|
|
— |
|
|
(4,727 |
) |
| Pro rata NOI from
unconsolidated joint ventures |
|
|
— |
|
|
469 |
|
|
8,229 |
|
|
— |
|
|
— |
|
|
8,698 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pro rata net operating
income |
|
$ |
3,555 |
|
|
699 |
|
|
13,891 |
|
|
10,891 |
|
|
— |
|
|
29,036 |
|
| Pro rata Net Operating Income
Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Nine months ended 09/30/23 (in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Industrial andCommercialSegment |
|
DevelopmentSegment |
|
MultifamilySegment |
|
MiningRoyaltiesSegment |
|
UnallocatedCorporateExpenses |
|
FRPHoldingsTotals |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
892 |
|
|
(7,192 |
) |
|
(816 |
) |
|
5,842 |
|
|
3,270 |
|
|
1,996 |
|
| Income tax allocation |
|
|
331 |
|
|
(2,667 |
) |
|
(145 |
) |
|
2,168 |
|
|
1,212 |
|
|
899 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) before income
taxes |
|
|
1,223 |
|
|
(9,859 |
) |
|
(961 |
) |
|
8,010 |
|
|
4,482 |
|
|
2,895 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
|
531 |
|
|
— |
|
|
— |
|
|
143 |
|
|
— |
|
|
674 |
|
|
Gain on sale of real estate |
|
|
— |
|
|
— |
|
|
— |
|
|
10 |
|
|
— |
|
|
10 |
|
|
Interest income |
|
|
— |
|
|
3,692 |
|
|
— |
|
|
— |
|
|
4,515 |
|
|
8,207 |
|
| Plus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized rents |
|
|
— |
|
|
— |
|
|
117 |
|
|
— |
|
|
— |
|
|
117 |
|
|
Loss on sale of real estate |
|
|
2 |
|
|
— |
|
|
1 |
|
|
— |
|
|
— |
|
|
3 |
|
|
Professional fees |
|
|
— |
|
|
— |
|
|
59 |
|
|
— |
|
|
— |
|
|
59 |
|
|
Equity in loss of joint ventures |
|
|
— |
|
|
10,256 |
|
|
298 |
|
|
31 |
|
|
— |
|
|
10,585 |
|
|
Interest Expense |
|
|
— |
|
|
— |
|
|
3,218 |
|
|
— |
|
|
33 |
|
|
3,251 |
|
|
Depreciation/amortization |
|
|
1,006 |
|
|
140 |
|
|
6,797 |
|
|
472 |
|
|
— |
|
|
8,415 |
|
|
General and administrative |
|
|
1,026 |
|
|
3,740 |
|
|
634 |
|
|
750 |
|
|
— |
|
|
6,150 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net operating income
(loss) |
|
|
2,726 |
|
|
585 |
|
|
10,163 |
|
|
9,110 |
|
|
— |
|
|
22,584 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NOI of noncontrolling
interest |
|
|
— |
|
|
— |
|
|
(4,627 |
) |
|
— |
|
|
— |
|
|
(4,627 |
) |
| Pro rata NOI from
unconsolidated joint ventures |
|
|
— |
|
|
251 |
|
|
4,479 |
|
|
— |
|
|
— |
|
|
4,730 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pro rata net operating
income |
|
$ |
2,726 |
|
|
836 |
|
|
10,015 |
|
|
9,110 |
|
|
— |
|
|
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Conference Call
The Company will host a conference call on
Wednesday, November 6, 2024 at 4:00 p.m. (EDT). Analysts,
stockholders and other interested parties may access the
teleconference live by calling 1-800-343-5172 (passcode 83364)
within the United States. International callers may dial
1-203-518-9856 (passcode 83364). Audio replay will be available
until November 20, 2024 by dialing 1-800-753-5207 within
the United States. International callers may dial
1-402-220-2156. No passcode needed. 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 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 MidAtlantic and Florida;
multifamily demand in Washington D.C. 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.
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Contact: |
John D. Baker III |
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| |
Chief Executive Officer |
(904) 858-9100 |
FRP (NASDAQ:FRPH)
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