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Jun 30, 2020
FRP Q2 2020 Earnings Report
FRP's performance reflected mixed outcomes due to the COVID-19 pandemic, with successes in property sales and lease-ups offset by challenges in royalty revenues and rent freezes.
Key Takeaways
FRP Holdings reported a net income of $4.149 million, or $0.43 per share, for the second quarter of 2020, compared to $9.825 million, or $0.99 per share, for the same period last year. The results were impacted by the absence of income from discontinued operations and a decrease in mining royalty revenues, though the company saw successes in leasing and property sales amidst the COVID-19 pandemic.
Net income decreased to $4.149 million, or $0.43 per share, from $9.825 million, or $0.99 per share, year-over-year, primarily due to the absence of income from discontinued operations.
Asset Management segment revenues increased by 8.2%, driven by full lease-up of 1801 62nd Street and improved leasing at Cranberry Run.
Mining Royalty Lands segment revenues decreased due to not receiving double minimums at Lake Louisa.
Dock 79's NOI decreased by 11.41% due to mandated rent freeze on renewals in DC, but occupancy remained above 90%.
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
FRP Holdings faces mixed prospects due to the COVID-19 pandemic, with challenges in leasing and royalty revenues, but remains confident due to its conservative balance sheet and strategic asset management.
Positive Outlook
- Sale of three remaining lots at Lakeside Business Park for $3.75 million.
- Sale of Gulf Hammock property for $2.51 million.
- 91 leases signed this quarter at Maren, including 44 in May.
- Maren was 45% leased and 23% occupied, ahead of schedule.
- Industrial segment remains strong with no issues with tenants paying rent.
Challenges Ahead
- Rent freeze on renewals at Dock 79 will be in effect at least until October, impacting revenue.
- Shortened baseball season without fans compounds a difficult situation for retail tenants at Dock 79.
- Problems getting certificates of occupancy on the final floors of the Maren due to local restrictions.
- Logistical issues with trying to lease up a building during the pandemic, such as virtual tours and inability to showcase the property with events.
- Uncertainty on how the pandemic will affect tenants, construction, and royalties business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income