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Dec 31, 2023
FRP Q4 2023 Earnings Report
Announced results for the fourth quarter and fiscal year ended December 31, 2023.
Key Takeaways
FRP Holdings reported a net income of $2,880,000 or $.30 per share for the fourth quarter of 2023, compared to $2,756,000 or $.29 per share in the same period last year. The company experienced revenue increases in the Industrial and Commercial segment, while the Multifamily segment saw a slight decrease in revenue.
Net income for the fourth quarter of 2023 was $2,880,000 or $.30 per share versus $2,756,000 or $.29 per share in the same period last year.
Industrial and Commercial segment revenues increased by 42.9% due to full occupancy at 1841 62nd Street and the addition of 1941 62nd Street.
Mining Royalty Lands segment revenues remained relatively flat at $2,899,000 versus $2,904,000 in the same period last year.
Multifamily segment revenues decreased slightly to $5,370,000 versus $5,482,000 in the same period last year.
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 shifting its development focus away from multifamily in the DC market and towards industrial projects. The company is underway on the construction of a $30 million spec warehouse project at its Chelsea site in Aberdeen, MD, which is planned to be delivered in the third quarter of 2024.
Positive Outlook
- State and national infrastructure spending is expected to increase in 2024, creating further demand for aggregates products.
- Riverside multifamily joint venture in Greenville, SC, showed strong performance with average annual occupancy (94.51%), renewals on expiring leases (55.41%), and rent increases on renewals (8.46%).
- Occupancy and overall square-footage have increased since the end of 2022, leading to a 46.2% increase in NOI in 2023 compared to the previous year in Industrial and Commercial segment.
- Construction of a $30 million spec warehouse project at Chelsea site in Aberdeen, MD, is underway and planned for delivery in Q3 2024.
- The company's development strategy and ability to shift focus and capital among asset classes is considered a strength.
Challenges Ahead
- The company is starting to feel the effects of a softening DC market in its Multifamily Segment.
- Revenues are more or less flat between Dock 79 and the Maren and did not keep pace with expenses.
- Pro-rata NOI is down which is to be expected after selling 20% of our share of Dock 79 and The Maren to SIC.
- NOI for the two projects as a whole decreased 1.3% ($13,358,000 vs $13,529,000) compared to 2022.
- The market is expected to remain slack until all the new supply has been absorbed.
Revenue & Expenses
Visualization of income flow from segment revenue to net income