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Sep 30, 2020
FRP Q3 2020 Earnings Report
FRP's third quarter performance was marked by strategic asset sales, increased occupancy in commercial properties, and continued progress in development projects, demonstrating resilience amidst COVID-19 challenges.
Key Takeaways
FRP Holdings reported a strong third quarter with increased net income driven by strategic asset sales and improved performance in the Asset Management and Mining Royalty segments. The company continued to invest in development projects and repurchase shares, while maintaining a strong liquidity position despite the ongoing challenges posed by COVID-19.
Net income for the third quarter of 2020 was $5,455,000, or $0.57 per share, compared to $2,100,000, or $0.20 per share, in the same period last year.
The sale of a spec building in Baltimore and 87 acres of Fort Myers property contributed significantly to the quarter's results.
Continued stock repurchases totaled 81,506 shares during the quarter, at an average price of $40.89 per share.
The company maintains a strong liquidity position with approximately $166 million in cash and equivalents.
FRP
FRP
FRP Revenue by Segment
Revenue by Segment
Asset Management Segment Revenue
CapyFin.comMining Royalty Lands Segment Revenue
CapyFin.com Forward Guidance
FRP remains focused on redeploying funds from asset sales into new development opportunities, leveraging its strong balance sheet to navigate the uncertain economic environment caused by COVID-19.
Positive Outlook
- Strong balance sheet provides flexibility for growth and resilience in an uncertain future.
- Company is actively redeploying funds from the warehouse sale into new development projects.
- Mining royalties remain strong, with aggregates royalties near record numbers.
- Occupancy rates are increasing at Cranberry Run.
- Development projects are progressing on schedule and within budget.
Challenges Ahead
- COVID-19 continues to pose challenges to operations, communications, and workflow.
- Retail tenants at Dock 79 are experiencing difficulties due to the pandemic, although they are faring better than most in their category.
- Rent freeze in Washington, D.C. is impacting revenue from Dock 79.
- Loss on joint venture increased due to operating losses at the Maren.
- Uncertainty remains regarding the full impact of COVID-19 on the company's business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income