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Jun 30, 2021
FRP Q2 2021 Earnings Report
FRP's second quarter results reflected a mix of segment performances and strategic developments.
Key Takeaways
FRP Holdings reported a net income of $82,000, or $0.01 per share, for the second quarter of 2021, a decrease compared to the $4,149,000, or $0.43 per share, in the same period last year. The company saw revenue increases in its Mining Royalty Lands and Stabilized Joint Venture segments, offset by a revenue decrease in the Asset Management segment. The consolidation of The Maren had a significant impact on the Stabilized Joint Venture segment's financials.
Net income attributable to the Company for the second quarter of 2021 was $82,000 or $.01 per share versus $4,149,000 or $.43 per share in the same period last year.
Total revenues in the Mining Royalty Lands segment were $2,634,000 versus $2,402,000 in the same period last year.
Total revenues in the Stabilized Joint Venture segment were $4,822,000, an increase of $2,370,000 versus $2,452,000 in the same period last year.
Reached stabilization on Phase II (The Maren) of the development known as RiverFront on the Anacostia in Washington, D.C.
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 is optimistic about the future, citing the return to normalcy, the performance of existing assets, and developments in the pipeline. The company anticipates continued impacts from the COVID-19 pandemic and related measures, particularly on rent increases.
Positive Outlook
- Royalty revenue this quarter was up 9.65% over the same period last year.
- The Maren is 94.7% leased and 93.93% occupied and its retail space is 100% leased with occupancy expected in the fourth quarter of this year once build out is complete.
- Company remains pleased with the current direction of our asset management segment, particularly the industrial assets.
- Bolstered land bank with the $10.5 million purchase of 55 acres in Aberdeen, Maryland.
- More than $170 million in liquidity allows the luxury of that optimism.
Challenges Ahead
- Because of the increased depreciation and amortization attributable to the Company as a result of consolidating the Maren’s results into our income statement, the impact on net income may in fact be negative for some time.
- It has been over a year since the District put in place the “emergency” measures which have prevented us from raising rents on renewals.
- The COVID-19 pandemic is having an extraordinary impact on the world economy and the markets in which we operate.
- It is possible that some of these same conditions may impact our ability to lease retail spaces at Bryant Street.
- Anticipate that these impacts will continue for at least the remainder of 2021.