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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%.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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