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Dec 31, 2020
FRP Q4 2020 Earnings Report
FRP's Q4 2020 financial results were discussed, highlighting net income and progress on development projects.
Key Takeaways
FRP Holdings reported a net income of $393,000, or $0.04 per share, for the fourth quarter of 2020. The company saw record results in its mining royalties business and made progress on new developments, while also repurchasing shares and maintaining a strong cash position.
Net income for Q4 2020 was $393,000, or $0.04 per share.
Mining royalties business achieved record results.
Progress was made on new developments at Bryant Street, Half Street, and in Greenville, South Carolina.
510,145 shares of stock were repurchased at an average cost of $41.78, leaving $150 million in cash and equivalents.
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 is focused on continuing its development projects, managing its stabilized joint ventures through the pandemic, and remaining opportunistic in its investment strategy.
Positive Outlook
- Expects to reach 90 percent occupancy at the Maren this month.
- Negotiated new 12-year interest-only loans on Dock 79 and the Maren, saving over $1 million a year in interest on Dock 79 alone.
- The Cranberry Run Business Park increased from 26.1 percent to 87.6 percent occupancy during 2020.
- Maren was 87.5% leased and 84.1% occupied by year's end, exceeding expectations despite the pandemic.
- Expect to deliver the remaining three phases of Phase 1 at Bryant Street in Q3 of this year.
Challenges Ahead
- Lower results for 2020 were driven by lower investment income due to falling interest rates.
- Joint ventures, especially the Maren and Bryant Street, experienced losses due to high interest and depreciation expense and operating losses.
- COVID-19 has impacted operations, with shutdowns, reduced capacity, and canceled stadium events affecting retail tenants at Dock 79.
- Government-imposed restrictions on rental increases due to COVID-19 have flattened rental rates.
- Uncertainty remains regarding the Alamo Drafthouse tenant at the Bryant Street project due to the parent company's bankruptcy filing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income