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Mar 31, 2020
FRP Q1 2020 Earnings Report
FRP's financial performance for the first quarter of 2020 was detailed, showing a slight decrease in net income compared to the same period last year, alongside updates on various segment operations and the impact of the COVID-19 pandemic.
Key Takeaways
FRP Holdings reported a net income of $1.618 million, or $0.15 per share, for the first quarter of 2020, compared to $1.898 million, or $0.19 per share, for the same period last year. The results were impacted by the cessation of double minimums at the Lake Louisa property and the ongoing COVID-19 pandemic.
Net income decreased to $1.618 million, or $0.15 per share, compared to $1.898 million, or $0.19 per share, in the first quarter of 2019.
Asset Management segment revenues increased slightly, but operating loss also increased due to higher corporate expense allocation.
Mining Royalty Lands segment revenues and operating profit decreased due to the cessation of double minimums at the Lake Louisa property.
Dock 79's average occupancy was 93.52% for the quarter, with 54.24% of expiring leases renewed at an average rent increase of 1.46%.
FRP
FRP
FRP Revenue by Segment
Revenue by Segment
Hickory Creek Revenue
CapyFin.comAsset Management Segment Revenue
CapyFin.comMining Royalty Lands Segment Revenue
CapyFin.com Forward Guidance
The company is closely monitoring the economic fallout from the COVID-19 pandemic and its impact on various business segments. While some segments like Asset Management have been somewhat insulated, others like Dock 79 and Mining Royalties face potential challenges. The company is focused on protecting existing assets and projects while also looking for potential investment opportunities.
Positive Outlook
- Construction has been allowed to continue in Washington, DC and South Carolina.
- The Maren building is 17.42% leased and 4.17% occupied as of April 27, 2020, with construction expected to be complete before the end of the second quarter.
- The company closed on the sale of remaining lots at Lakeside Business Park on April 3, 2020, for $3.75 million.
- Decrease in road traffic has allowed states and municipalities to push forward their timeline for transportation infrastructure projects.
- Share buybacks during the first quarter of 2020 with 82,491 shares repurchased at an average cost of $41.47 per share.
Challenges Ahead
- COVID-19 pandemic is having an extraordinary impact on the world economy and the markets.
- Retail tenants are facing challenges due to social distancing, stay at home, and telework measures.
- Restaurant tenants at Dock 79 have been hit hard, with only one restaurant open for takeout.
- The district has suspended property owners from raising rents effective back to March 11.
- Economic cost and loss of life is staggering.
Revenue & Expenses
Visualization of income flow from segment revenue to net income