Jun 30, 2022

FRP Q2 2022 Earnings Report

FRP Holdings reported an increase in net income and revenue across multiple segments, driven by strategic acquisitions and strong leasing performance.

Key Takeaways

FRP Holdings, Inc. reported a net income of $657,000, or $0.07 per share, for the second quarter of 2022, compared to $82,000, or $0.01 per share, in the same period last year. The company saw revenue increases in its Asset Management, Mining Royalty Lands, and Stabilized Joint Venture segments.

Net income increased to $657,000 or $0.07 per share compared to $82,000 or $0.01 per share year-over-year.

Asset Management segment revenue increased by 55.1% due to Cranberry Run reaching 100% leased and occupied status and the addition of new spec buildings.

Mining Royalty Lands segment revenue increased due to additional royalties from the Astatula, FL acquisition.

Stabilized Joint Venture segment revenue increased, driven by The Maren and Dock 79.

Total Revenue
$9.63M
Previous year: $8.5M
+13.3%
EPS
$0.04
Previous year: $0.01
+300.0%
Net Operating Income
$3.53M
Previous year: $3.04M
+16.3%
Gross Profit
$8.59M
Cash and Equivalents
$159M
Free Cash Flow
-$6.28M
Total Assets
$677M

FRP

FRP

FRP Revenue by Segment

Forward Guidance

FRP Holdings anticipates shell completion of the final building at Hollander by the end of 2022, which will positively impact revenue, operating profit, and NOI. They are working to convert existing cash into new investments and are cautiously optimistic.

Positive Outlook

  • Shell completion of final building at Hollander by the end of 2022.
  • Stabilization of Bryant Street.
  • Stabilization and permanent financing for Riverside.
  • Completion of construction on and commencement of leasing for both .408 Jackson in Greenville.
  • Completion of construction on and commencement of leasing for The Verge in Washington, DC.

Challenges Ahead

  • Impact of the COVID-19 Pandemic on operations and financial results.
  • Possibility of being unable to find appropriate investment opportunities.
  • Levels of construction activity in the markets served by mining properties.
  • Demand for flexible warehouse/office facilities in the Baltimore-Washington-Northern Virginia area.
  • Demand for apartments in Washington D.C., Richmond, Virginia, and Greenville, South Carolina.

Revenue & Expenses

Visualization of income flow from segment revenue to net income