10-Q 1 frphmarq24.htm FRPH FORM 10Q FRP Q1 24
false --12-31 2024 Q1 0000844059 P3Y 0 0 P10Y P3Y P7Y 0 P3Y6M P4Y6M P3Y2M13D P4Y3M19D P2Y9M18D P2Y10M28D P3Y1M5D 0000844059 2024-01-01 2024-03-31 0000844059 2024-05-13 0000844059 2024-03-31 0000844059 2023-12-31 0000844059 2023-01-01 2023-03-31 0000844059 2022-12-31 0000844059 2023-03-31 0000844059 us-gaap:CommonStockMember 2023-12-31 0000844059 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0000844059 us-gaap:RetainedEarningsMember 2023-12-31 0000844059 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-12-31 0000844059 us-gaap:ParentMember 2023-12-31 0000844059 us-gaap:NoncontrollingInterestMember 2023-12-31 0000844059 us-gaap:CommonStockMember 2022-12-31 0000844059 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0000844059 us-gaap:RetainedEarningsMember 2022-12-31 0000844059 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-12-31 0000844059 us-gaap:ParentMember 2022-12-31 0000844059 us-gaap:NoncontrollingInterestMember 2022-12-31 0000844059 us-gaap:CommonStockMember 2024-01-01 2024-03-31 0000844059 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-03-31 0000844059 us-gaap:RetainedEarningsMember 2024-01-01 2024-03-31 0000844059 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-01-01 2024-03-31 0000844059 us-gaap:ParentMember 2024-01-01 2024-03-31 0000844059 us-gaap:NoncontrollingInterestMember 2024-01-01 2024-03-31 0000844059 us-gaap:CommonStockMember 2023-01-01 2023-03-31 0000844059 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-03-31 0000844059 us-gaap:RetainedEarningsMember 2023-01-01 2023-03-31 0000844059 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-01-01 2023-03-31 0000844059 us-gaap:ParentMember 2023-01-01 2023-03-31 0000844059 us-gaap:NoncontrollingInterestMember 2023-01-01 2023-03-31 0000844059 us-gaap:CommonStockMember 2024-03-31 0000844059 us-gaap:AdditionalPaidInCapitalMember 2024-03-31 0000844059 us-gaap:RetainedEarningsMember 2024-03-31 0000844059 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-31 0000844059 us-gaap:ParentMember 2024-03-31 0000844059 us-gaap:NoncontrollingInterestMember 2024-03-31 0000844059 us-gaap:CommonStockMember 2023-03-31 0000844059 us-gaap:AdditionalPaidInCapitalMember 2023-03-31 0000844059 us-gaap:RetainedEarningsMember 2023-03-31 0000844059 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-03-31 0000844059 us-gaap:ParentMember 2023-03-31 0000844059 us-gaap:NoncontrollingInterestMember 2023-03-31 0000844059 FRPH:BrooksvilleJointVentureMember 2024-03-31 0000844059 FRPH:IndustrialCommercialMember 2024-01-01 2024-03-31 0000844059 FRPH:IndustrialCommercialMember 2023-01-01 2023-03-31 0000844059 FRPH:MiningPropertiesMember 2024-01-01 2024-03-31 0000844059 FRPH:MiningPropertiesMember 2023-01-01 2023-03-31 0000844059 FRPH:DevelopmentMember 2024-01-01 2024-03-31 0000844059 FRPH:DevelopmentMember 2023-01-01 2023-03-31 0000844059 FRPH:MultifamilySegmentMember 2024-01-01 2024-03-31 0000844059 FRPH:MultifamilySegmentMember 2023-01-01 2023-03-31 0000844059 FRPH:TotalSegmentsMember 2024-01-01 2024-03-31 0000844059 FRPH:TotalSegmentsMember 2023-01-01 2023-03-31 0000844059 FRPH:IndustrialCommercialMember 2024-03-31 0000844059 FRPH:IndustrialCommercialMember 2023-12-31 0000844059 FRPH:AssetManagementMember 2024-03-31 0000844059 FRPH:AssetManagementMember 2023-12-31 0000844059 FRPH:DevelopmentMember 2024-03-31 0000844059 FRPH:DevelopmentMember 2023-12-31 0000844059 FRPH:MultifamilySegmentMember 2024-03-31 0000844059 FRPH:MultifamilySegmentMember 2023-12-31 0000844059 FRPH:UnallocatedCorporateAssetsMember 2024-03-31 0000844059 FRPH:UnallocatedCorporateAssetsMember 2023-12-31 0000844059 us-gaap:MortgagesMember 2024-03-31 0000844059 us-gaap:MortgagesMember 2023-12-31 0000844059 FRPH:WellsFargoMember 2023-01-01 2023-12-31 0000844059 FRPH:WellsFargoMember 2023-12-22 0000844059 FRPH:WellsFargoMember 2024-01-01 2024-03-31 0000844059 FRPH:WellsFargoMember 2024-03-31 0000844059 FRPH:WellsFargoMember 2024-01-01 2024-03-31 0000844059 FRPH:Dock79LoanMember 2021-03-19 0000844059 FRPH:MarenMember 2021-03-19 0000844059 FRPH:Dock79LoanMember 2021-03-01 2021-03-31 0000844059 FRPH:MarenMember 2021-03-01 2021-03-31 0000844059 2024-03-28 0000844059 us-gaap:EmployeeStockOptionMember 2024-03-31 0000844059 us-gaap:EmployeeStockOptionMember 2024-01-01 2024-03-31 0000844059 us-gaap:RestrictedStockMember 2024-03-31 0000844059 us-gaap:RestrictedStockMember 2024-01-01 2024-03-31 0000844059 us-gaap:EmployeeStockOptionMember 2023-01-01 2023-03-31 0000844059 us-gaap:RestrictedStockMember 2023-01-01 2023-03-31 0000844059 FRPH:EmployeeGrantMember 2024-01-01 2024-03-31 0000844059 FRPH:EmployeeGrantMember 2023-01-01 2023-03-31 0000844059 us-gaap:EmployeeStockOptionMember 2023-12-31 0000844059 us-gaap:EmployeeStockOptionMember 2023-01-01 2023-12-31 0000844059 FRPH:TimeBasedOptionAwardsGrantedMember 2024-01-01 2024-03-31 0000844059 FRPH:PerformanceBasedOptionAwardsGrantedMember 2024-01-01 2024-03-31 0000844059 us-gaap:RestrictedStockMember 2023-12-31 0000844059 us-gaap:RestrictedStockMember 2023-01-01 2023-12-31 0000844059 FRPH:TimeBasedRestrictedAwardsGrantedMember 2024-01-01 2024-03-31 0000844059 FRPH:PerformanceBasedRestrictedAwardsGrantedMember 2024-01-01 2024-03-31 0000844059 us-gaap:GuaranteeObligationsMember 2024-03-31 0000844059 us-gaap:GuaranteeObligationsMember 2023-12-31 0000844059 us-gaap:GuaranteeObligationsMember 2023-01-01 2023-12-31 0000844059 FRPH:MiningTopCustomerMember 2024-01-01 2024-03-31 0000844059 FRPH:MiningTopCustomerMember 2024-03-31 0000844059 FRPH:BrooksvilleQuarryLLCMember 2024-03-31 0000844059 FRPH:BrooksvilleQuarryLLCMember FRPH:RealEstateTotalAssetsMember 2024-03-31 0000844059 FRPH:BrooksvilleQuarryLLCMember 2024-01-01 2024-03-31 0000844059 FRPH:BCFRPRealtyLLCMember 2024-03-31 0000844059 FRPH:BCFRPRealtyLLCMember FRPH:RealEstateTotalAssetsMember 2024-03-31 0000844059 FRPH:BCFRPRealtyLLCMember 2024-01-01 2024-03-31 0000844059 FRPH:BuzzardPointSponsorPartnershipMember 2024-03-31 0000844059 FRPH:BuzzardPointSponsorPartnershipMember FRPH:RealEstateTotalAssetsMember 2024-03-31 0000844059 FRPH:BuzzardPointSponsorPartnershipMember 2024-01-01 2024-03-31 0000844059 FRPH:BryantStreetPartnershipsMember 2024-03-31 0000844059 FRPH:BryantStreetPartnershipsMember FRPH:RealEstateTotalAssetsMember 2024-03-31 0000844059 FRPH:BryantStreetPartnershipsMember 2024-01-01 2024-03-31 0000844059 FRPH:LendingVenturesMember 2024-03-31 0000844059 FRPH:LendingVenturesMember FRPH:RealEstateTotalAssetsMember 2024-03-31 0000844059 FRPH:LendingVenturesMember 2024-01-01 2024-03-31 0000844059 FRPH:BBXPartnershipsMember 2024-03-31 0000844059 FRPH:BBXPartnershipsMember FRPH:RealEstateTotalAssetsMember 2024-03-31 0000844059 FRPH:BBXPartnershipsMember 2024-01-01 2024-03-31 0000844059 FRPH:EsteroPartnershipMember 2024-03-31 0000844059 FRPH:EsteroPartnershipMember FRPH:RealEstateTotalAssetsMember 2024-03-31 0000844059 FRPH:EsteroPartnershipMember 2024-01-01 2024-03-31 0000844059 FRPH:VergeMember 2024-03-31 0000844059 FRPH:VergeMember FRPH:RealEstateTotalAssetsMember 2024-03-31 0000844059 FRPH:VergeMember 2024-01-01 2024-03-31 0000844059 FRPH:GreenvillePartnershipsMember 2024-03-31 0000844059 FRPH:GreenvillePartnershipsMember FRPH:RealEstateTotalAssetsMember 2024-03-31 0000844059 FRPH:GreenvillePartnershipsMember 2024-01-01 2024-03-31 0000844059 FRPH:RealEstateTotalAssetsMember 2024-03-31 0000844059 FRPH:RealEstateTotalAssetsMember 2024-01-01 2024-03-31 0000844059 FRPH:RealEstatePartnershipNetIncomeLossMember 2024-01-01 2024-03-31 0000844059 FRPH:BryantStreetPartnershipsMember 2023-12-31 0000844059 FRPH:MultifamilyJVMember 2024-03-31 0000844059 FRPH:MultifamilyJVMember FRPH:RealEstateTotalAssetsMember 2024-03-31 0000844059 FRPH:BuzzardPointSponsorPartnershipMember FRPH:RealEstatePartnershipFRPMember 2024-03-31 0000844059 FRPH:BryantStreetPartnershipsMember FRPH:RealEstatePartnershipFRPMember 2024-03-31 0000844059 FRPH:EsteroPartnershipMember FRPH:RealEstatePartnershipFRPMember 2024-03-31 0000844059 FRPH:VergeMember FRPH:RealEstatePartnershipFRPMember 2024-03-31 0000844059 FRPH:GreenvillePartnershipsMember FRPH:RealEstatePartnershipFRPMember 2024-03-31 0000844059 FRPH:MultifamilyJVMember FRPH:RealEstatePartnershipFRPMember 2024-03-31 0000844059 FRPH:BuzzardPointSponsorPartnershipMember FRPH:RealEstatePartnershipThirdPartiesMember 2024-03-31 0000844059 FRPH:BryantStreetPartnershipsMember FRPH:RealEstatePartnershipThirdPartiesMember 2024-03-31 0000844059 FRPH:EsteroPartnershipMember FRPH:RealEstatePartnershipThirdPartiesMember 2024-03-31 0000844059 FRPH:VergeMember FRPH:RealEstatePartnershipThirdPartiesMember 2024-03-31 0000844059 FRPH:GreenvillePartnershipsMember FRPH:RealEstatePartnershipThirdPartiesMember 2024-03-31 0000844059 FRPH:MultifamilyJVMember FRPH:RealEstatePartnershipThirdPartiesMember 2024-03-31 0000844059 FRPH:BuzzardPointSponsorPartnershipMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2024-03-31 0000844059 FRPH:BryantStreetPartnershipsMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2024-03-31 0000844059 FRPH:EsteroPartnershipMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2024-03-31 0000844059 FRPH:VergeMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2024-03-31 0000844059 FRPH:GreenvillePartnershipsMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2024-03-31 0000844059 FRPH:MultifamilyJVMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2024-03-31 0000844059 FRPH:BBXPartnershipsMember FRPH:RealEstatePartnershipFRPMember 2024-03-31 0000844059 FRPH:BrooksvilleQuarryLLCMember FRPH:RealEstatePartnershipFRPMember 2024-03-31 0000844059 FRPH:BCFRPRealtyLLCMember FRPH:RealEstatePartnershipFRPMember 2024-03-31 0000844059 FRPH:LendingVenturesMember FRPH:RealEstatePartnershipFRPMember 2024-03-31 0000844059 FRPH:RealEstatePartnershipFRPMember 2024-03-31 0000844059 FRPH:BBXPartnershipsMember FRPH:RealEstatePartnershipThirdPartiesMember 2024-03-31 0000844059 FRPH:BrooksvilleQuarryLLCMember FRPH:RealEstatePartnershipThirdPartiesMember 2024-03-31 0000844059 FRPH:BCFRPRealtyLLCMember FRPH:RealEstatePartnershipThirdPartiesMember 2024-03-31 0000844059 FRPH:LendingVenturesMember FRPH:RealEstatePartnershipThirdPartiesMember 2024-03-31 0000844059 FRPH:RealEstatePartnershipThirdPartiesMember 2024-03-31 0000844059 FRPH:BBXPartnershipsMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2024-03-31 0000844059 FRPH:BrooksvilleQuarryLLCMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2024-03-31 0000844059 FRPH:BCFRPRealtyLLCMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2024-03-31 0000844059 FRPH:LendingVenturesMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2024-03-31 0000844059 FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2024-03-31 0000844059 FRPH:BuzzardPointSponsorPartnershipMember 2023-12-31 0000844059 FRPH:EsteroPartnershipMember 2023-12-31 0000844059 FRPH:VergeMember 2023-12-31 0000844059 FRPH:GreenvillePartnershipsMember 2023-12-31 0000844059 FRPH:MultifamilyJVMember 2023-12-31 0000844059 FRPH:BuzzardPointSponsorPartnershipMember FRPH:RealEstateTotalAssetsMember 2023-12-31 0000844059 FRPH:BryantStreetPartnershipsMember FRPH:RealEstateTotalAssetsMember 2023-12-31 0000844059 FRPH:EsteroPartnershipMember FRPH:RealEstateTotalAssetsMember 2023-12-31 0000844059 FRPH:VergeMember FRPH:RealEstateTotalAssetsMember 2023-12-31 0000844059 FRPH:GreenvillePartnershipsMember FRPH:RealEstateTotalAssetsMember 2023-12-31 0000844059 FRPH:MultifamilyJVMember FRPH:RealEstateTotalAssetsMember 2023-12-31 0000844059 FRPH:BuzzardPointSponsorPartnershipMember FRPH:RealEstatePartnershipFRPMember 2023-12-31 0000844059 FRPH:BryantStreetPartnershipsMember FRPH:RealEstatePartnershipFRPMember 2023-12-31 0000844059 FRPH:EsteroPartnershipMember FRPH:RealEstatePartnershipFRPMember 2023-12-31 0000844059 FRPH:VergeMember FRPH:RealEstatePartnershipFRPMember 2023-12-31 0000844059 FRPH:GreenvillePartnershipsMember FRPH:RealEstatePartnershipFRPMember 2023-12-31 0000844059 FRPH:MultifamilyJVMember FRPH:RealEstatePartnershipFRPMember 2023-12-31 0000844059 FRPH:BuzzardPointSponsorPartnershipMember FRPH:RealEstatePartnershipThirdPartiesMember 2023-12-31 0000844059 FRPH:BryantStreetPartnershipsMember FRPH:RealEstatePartnershipThirdPartiesMember 2023-12-31 0000844059 FRPH:EsteroPartnershipMember FRPH:RealEstatePartnershipThirdPartiesMember 2023-12-31 0000844059 FRPH:VergeMember FRPH:RealEstatePartnershipThirdPartiesMember 2023-12-31 0000844059 FRPH:GreenvillePartnershipsMember FRPH:RealEstatePartnershipThirdPartiesMember 2023-12-31 0000844059 FRPH:MultifamilyJVMember FRPH:RealEstatePartnershipThirdPartiesMember 2023-12-31 0000844059 FRPH:BuzzardPointSponsorPartnershipMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2023-12-31 0000844059 FRPH:BryantStreetPartnershipsMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2023-12-31 0000844059 FRPH:EsteroPartnershipMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2023-12-31 0000844059 FRPH:VergeMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2023-12-31 0000844059 FRPH:GreenvillePartnershipsMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2023-12-31 0000844059 FRPH:MultifamilyJVMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2023-12-31 0000844059 FRPH:BrooksvilleQuarryLLCMember 2023-12-31 0000844059 FRPH:BCFRPRealtyLLCMember 2023-12-31 0000844059 FRPH:LendingVenturesMember 2023-12-31 0000844059 FRPH:BrooksvilleQuarryLLCMember FRPH:RealEstateTotalAssetsMember 2023-12-31 0000844059 FRPH:BCFRPRealtyLLCMember FRPH:RealEstateTotalAssetsMember 2023-12-31 0000844059 FRPH:LendingVenturesMember FRPH:RealEstateTotalAssetsMember 2023-12-31 0000844059 FRPH:RealEstateTotalAssetsMember 2023-12-31 0000844059 FRPH:BrooksvilleQuarryLLCMember FRPH:RealEstatePartnershipFRPMember 2023-12-31 0000844059 FRPH:BCFRPRealtyLLCMember FRPH:RealEstatePartnershipFRPMember 2023-12-31 0000844059 FRPH:LendingVenturesMember FRPH:RealEstatePartnershipFRPMember 2023-12-31 0000844059 FRPH:RealEstatePartnershipFRPMember 2023-12-31 0000844059 FRPH:BrooksvilleQuarryLLCMember FRPH:RealEstatePartnershipThirdPartiesMember 2023-12-31 0000844059 FRPH:BCFRPRealtyLLCMember FRPH:RealEstatePartnershipThirdPartiesMember 2023-12-31 0000844059 FRPH:LendingVenturesMember FRPH:RealEstatePartnershipThirdPartiesMember 2023-12-31 0000844059 FRPH:RealEstatePartnershipThirdPartiesMember 2023-12-31 0000844059 FRPH:BrooksvilleQuarryLLCMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2023-12-31 0000844059 FRPH:BCFRPRealtyLLCMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2023-12-31 0000844059 FRPH:LendingVenturesMember FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2023-12-31 0000844059 FRPH:RealEstatePartnershipTotalLiabilitiesAndCapitalMember 2023-12-31 0000844059 FRPH:BryantStreetPartnershipsMember 2024-01-01 2024-03-31 0000844059 FRPH:BryantStreetPartnershipsMember 2023-01-01 2023-03-31 0000844059 FRPH:BryantStreetPartnershipsMember 2023-01-01 2023-03-31 0000844059 FRPH:GreenvilleWoodfieldPartnershipsMember 2024-01-01 2024-03-31 0000844059 FRPH:GreenvilleWoodfieldPartnershipsMember 2023-01-01 2023-03-31 0000844059 FRPH:GreenvilleWoodfieldPartnershipsMember 2024-01-01 2024-03-31 0000844059 FRPH:GreenvilleWoodfieldPartnershipsMember 2023-01-01 2023-03-31 0000844059 FRPH:VergeMember 2024-01-01 2024-03-31 0000844059 FRPH:VergeMember 2023-01-01 2023-03-31 0000844059 FRPH:VergeMember 2023-01-01 2023-03-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares FRPH:Integer xbrli:pure FRPH:property utr:acre FRPH:Segment

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 10-Q

_________________

(Mark One)    

 

[X ]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended March 31, 2024

 

or

 

[_]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_________ to _________

 

 Commission File Number: 001-36769

_____________________

FRP HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

_____________________

Florida   47-2449198

(State or other jurisdiction of

incorporation or organization)

  (I.R.S. Employer Identification No.)
     

200 W. Forsyth St., 7th Floor,

Jacksonville, FL

  32202
(Address of principal executive offices)   (Zip Code)

904-396-5733

(Registrant’s telephone number, including area code)

 

Title of each class   Trading Symbol   Name of each exchange on which registered
Common Stock, $.10 par value   FRPH   NASDAQ  

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  [x]    No  [_]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  [x]    No  [_]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [_]   Accelerated  filer [_]
Non-accelerated filer [x]   Smaller reporting company [x]
Emerging growth company [_]    

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  [_] 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  [_]    No  [x]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

  Class       Outstanding at May 13, 2024  
  Common Stock, $.10 par value per share       19,019,956 shares  
             
1 
 

 

 

 

 

FRP HOLDINGS, INC.

FORM 10-Q

QUARTER ENDED MARCH 31, 2024

 

 

 

CONTENTS

Page No.

 

Preliminary Note Regarding Forward-Looking Statements     3
           
    Part I.  Financial Information      
           
Item 1.   Financial Statements      
    Consolidated Balance Sheets     4
    Consolidated Statements of Income     5
    Consolidated Statements of Comprehensive Income     6
    Consolidated Statements of Cash Flows     7
    Consolidated Statements of Shareholders’ Equity     8
    Condensed Notes to Consolidated Financial Statements     9
           
Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations     18
           
Item 3.   Quantitative and Qualitative Disclosures about Market Risks     31
           
Item 4.   Controls and Procedures     31
           
    Part II.  Other Information      
           

 

Item 1A.

  Risk Factors     32
           
Item 2.   Purchase of Equity Securities by the Issuer     32
           
Item 6.   Exhibits     32
           
Signatures         33
           
Exhibit 31   Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002     35
           
Exhibit 32   Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002     38

 

2 
 

Preliminary Note Regarding Forward-Looking Statements.

 

This Quarterly Report on Form 10-Q, together with other statements and information publicly disseminated by us, contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words or phrases “anticipate,” “estimate,” “believe,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and similar expressions identify forward-looking statements. Such statements reflect management’s current views with respect to financial results related to future events and are based on assumptions and expectations that may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial or otherwise, may differ, perhaps materially, from the results discussed in the forward-looking statements. Risk factors discussed in Item 1A of this Form 10-Q and other factors that might cause differences, some of which could be material, include, but are not limited to: the possibility that we may be unable to find appropriate investment opportunities; levels of construction activity in the markets served by our mining properties; demand for flexible warehouse/office facilities in the Baltimore-Washington-Northern Virginia area; demand for apartments in Washington D.C., and Greenville, South Carolina; our ability to obtain zoning and entitlements necessary for property development; the impact of lending and capital market conditions on our liquidity, our ability to finance projects or repay our debt; general real estate investment and development risks; vacancies in our properties; risks associated with developing and managing properties in partnership with others; competition; our ability to renew leases or re-lease spaces as leases expire; illiquidity of real estate investments; bankruptcy or defaults of tenants; the impact of restrictions imposed by our credit facility; the level and volatility of interest rates; environmental liabilities; inflation risks; cyber security risks; as well as other risks listed from time to time in our SEC filings, including but not limited to, our annual and quarterly reports. We have no obligation to revise or update any forward-looking statements, other than as imposed by law, as a result of future events or new information. Readers are cautioned not to place undue reliance on such forward-looking statements. Additional information regarding these and other risk factors may be found in the Company’s other filings made from time to time with the Securities and Exchange Commission.

3 
 

PART I. FINANCIAL INFORMATION, ITEM 1. FINANCIAL STATEMENTS

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited) (In thousands, except share data)

 

    March 31   December 31
Assets:   2024   2023
Real estate investments at cost:                
Land   $ 141,602       141,602  
Buildings and improvements     282,780       282,631  
Projects under construction     16,730       10,845  
     Total investments in properties     441,112       435,078  
Less accumulated depreciation and depletion     70,241       67,758  
     Net investments in properties     370,871       367,320  
                 
Real estate held for investment, at cost     10,832       10,662  
Investments in joint ventures     164,271       166,066  
     Net real estate investments     545,974       544,048  
                 
Cash and cash equivalents     152,484       157,555  
Cash held in escrow     655       860  
Accounts receivable, net     1,397       1,046  
Federal and state income taxes receivable              337  
Unrealized rents     1,770       1,640  
Deferred costs     2,798       3,091  
Other assets     595       589  
Total assets   $ 705,673       709,166  
                 
Liabilities:                
Secured notes payable   $ 178,742       178,705  
Accounts payable and accrued liabilities     3,829       8,333  
Other liabilities     1,487       1,487  
Federal and state income taxes payable     60           
Deferred revenue     920       925  
Deferred income taxes     69,456       69,456  
Deferred compensation     1,423       1,409  
Tenant security deposits     885       875  
    Total liabilities     256,802       261,190  
                 
Commitments and contingencies             
                 
Equity:                

Common stock, $.10 par value

25,000,000 shares authorized,

19,000,600 and 18,968,448 shares issued

and outstanding, respectively

    1,900       1,897  
Capital in excess of par value     67,023       66,706  
Retained earnings     347,183       345,882  
Accumulated other comprehensive income, net     27       35  
     Total shareholders’ equity     416,133       414,520  
Noncontrolling interest     32,738       33,456  
     Total equity     448,871       447,976  
Total liabilities and equity   $ 705,673       709,166  

 

 

See accompanying notes.

4 
 

 

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands except per share amounts)

(Unaudited)

 

                 
    THREE MONTHS ENDED
    MARCH 31,
    2024   2023
Revenues:        
     Lease revenue   $ 7,170       6,832  
     Mining royalty and rents     2,963       3,282  
 Total revenues     10,133       10,114  
                 
Cost of operations:                
     Depreciation, depletion and amortization     2,535       2,780  
     Operating expenses     1,867       1,740  
     Property taxes     807       947  
     General and administrative     2,042       1,793  
Total cost of operations     7,251       7,260  
                 
Total operating profit     2,882       2,854  
                 
Net investment income     2,783       2,382  
Interest expense     (911 )     (1,006 )
Equity in loss of joint ventures     (3,019 )     (3,625 )
Gain on sale of real estate              10  
                 
Income before income taxes     1,735       615  
Provision for income taxes     400       209  
                 
Net income     1,335       406  
Income (loss) attributable to noncontrolling interest     34       (159 )
Net income attributable to the Company   $ 1,301       565  
                 
Earnings per common share (1):                
 Net income attributable to the Company-                
    Basic   $ 0.07       0.03  
    Diluted   $ 0.07       0.03  
                 
Number of shares (in thousands) used in computing (1):                
    -basic earnings per common share     18,859       18,832  
    -diluted earnings per common share     18,944       18,912  
                 
                 
(1)Adjusted for the 2 for 1 stock split that occurred in April 2024

 

See accompanying notes.

5 
 

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands except per share amounts)

(Unaudited)

 

                 
    THREE MONTHS ENDED
    MARCH 31,
    2024   2023
Net income   $ 1,335       406  
Other comprehensive income (loss) net of tax:                
  Unrealized gain on investments, net of income tax effect of $0 and $139              374  
  Minimum pension liability, net of income tax effect of $3 and $0     (8      
Comprehensive income   $ 1,327       780  
                 
Less comp. income (loss) attributable to noncontrolling interest     34       (159 )
                 
Comprehensive income attributable to the Company   $ 1,293       939  

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes

 

 

6 
 

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(In thousands) (Unaudited)

 

      2024   2023
Cash flows from operating activities:                  
 Net income     $ 1,335       406  
 Adjustments to reconcile net income to net cash provided by continuing operating      activities:                  
 Depreciation, depletion and amortization       2,596       2,842  
 Deferred income taxes                53  
 Equity in loss of joint ventures       3,019       3,625  
 Gain on sale of equipment and property                (17 )
 Stock-based compensation       320       324  
 Net changes in operating assets and liabilities:                  
  Accounts receivable       (351 )     (167 )
  Deferred costs and other assets       75       170  
  Accounts payable and accrued liabilities       (4,509 )     (2,860 )
  Income taxes payable and receivable       397       295  
  Other long-term liabilities       24       16  
 Net cash provided by operating activities       2,906       4,687  
                   
Cash flows from investing activities:                  
 Investments in properties       (6,205 )     (1,206 )
 Investments in joint ventures       (7,771 )     (12,766 )
 Return of capital from investments in joint ventures       6,546       4,988  
 Proceeds from sales of investments available for sale                    
 Proceeds from the sale of assets                17  
 Cash held in escrow       205       212  
Net cash used in investing activities       (7,225 )     (8,755 )
                   
Cash flows from financing activities:                  
 Distribution to noncontrolling interest       (752 )     (933 )
 Exercise of employee stock options                803  
Net cash used in financing activities       (752     (130
                   
Net decrease in cash and cash equivalents       (5,071     (4,198
Cash and cash equivalents at beginning of year       157,555       177,497  
Cash and cash equivalents at end of the period     $ 152,484       173,299  
                   
Supplemental disclosure of cash flow information:                  
Cash paid during the period for:                  

  Interest

    $ 903     $ 1,004  
  Income taxes                    
                   
                   

 

 

 

 

 

 

See accompanying notes.

7 
 

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(In thousands, except share amounts) (Unaudited)

 

                             
                  Accumulated            
                  Other Comp-   Total        
          Capital in       rehensive   Share   Non-    
  Common Stock   Excess of   Retained   Income   holders’   Controlling   Total
  Shares   Amount   Par Value   Earnings   (loss), net   Equity   Interest   Equity
Balance at January 1, 2024   18,968,448     $ 1,897     $ 66,706     $ 345,882     $ 35     $ 414,520     $ 33,456     $ 447,976  
 Stock option grant compensation   —                     19                         19                19  
 Restricted stock compensation   —                    301                       301               301  
 Restricted stock award   32,152       3       (3 )                                          
 Net income    —                              1,301                1,301       34       1,335  
 Distributions to partners    —                                                         (752     (752
 Minimum pension liability,net    —                                       (8     (8              (8
Balance at March 31, 2024   19,000,600     $ 1,900     $ 67,023     $ 347,183     $ 27     $ 416,133     $ 32,738     $ 448,871  

 

Balance at January 1, 2023

  18,919,372     $ 1,892     $ 64,212     $ 342,317     $ (1,276   $ 407,145     $ 37,066     $ 444,211  
 Exercise of stock options   35,470       4       799                       803               803  
 Stock option grant compensation   —                     17                         17                17  
 Restricted stock compensation   —                    257                       257               257  
 Shares granted to Employees   1,856             50                       50               50  
 Restricted stock award   50,568       4       (4 )                                          
 Net income    —                              565                565       (159     406  
 Distributions to partners    —                                                         (933     (933
 Unrealized loss on investment, net    —                                       374       374                374  
Balance at March 31, 2023   19,007,266     $ 1,900     $ 65,331     $ 342,882     $ (902   $ 409,211     $ 35,974     $ 445,185  
                                                               
                                                               

 

 

8 
 

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2024

(Unaudited)

 

(1) Description of Business and Basis of Presentation.

 

FRP Holdings, Inc. is a holding company engaged in the real estate business, namely (i) leasing and management of commercial properties owned by the Company, (ii) leasing and management of mining royalty land owned by the Company, (iii) real property acquisition, entitlement, development and construction primarily for apartment, retail, warehouse, and office, (iv) leasing and management of residential apartment buildings.

 

The accompanying consolidated financial statements include the accounts of FRP Holdings, Inc. (the “Company” or “FRP”) inclusive of our operating real estate subsidiaries, FRP Development Corp. (“Development”), Florida Rock Properties, Inc. (“Properties”), Riverfront Investment Partners I, LLC, and Riverfront Investment Partners II, LLC. Our investments accounted for under the equity method of accounting are detailed in Note 11. Our ownership of Riverfront Investment Partners I, LLC and Riverfront Investment Partners II, LLC includes a non-controlling interest representing the ownership of our partner.

 

These statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q and do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (primarily consisting of normal recurring accruals) considered necessary for a fair statement of the results for the interim periods have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The accompanying consolidated financial statements and the information included under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" should be read in conjunction with the Company's consolidated financial statements and related notes included in the Company’s Form 10-K for the year ended December 31, 2023.

 

During the 4th quarter of 2023, the Company renamed two of its reportable segments in order to clearly define projects within those segments. The Asset Management segment was renamed the Industrial and Commercial segment and the Stabilized Joint Venture segment was renamed the Multifamily Segment. There was no impact on consolidated total revenues, total cost of operations, operating profit, net earnings per share, or segment operating results as a result of these changes.

 

On April 12, 2024, the Company effected a 2-for-1 forward split of its common stock in the nature of a dividend. All share and per share information, including share-based compensation, throughout this report have been retroactively adjusted to reflect the stock split. The shares of common stock retain a par value of $0.10 per share. Accordingly, an amount equal to the par value of the increased shares resulting from the stock split was reclassified from capital in excess of par value to common stock.

 

(2) Recently Issued Accounting Standards.

 

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016 - 13, "Financial Instruments - Credit Losses," which introduced new guidance for an approach based on expected losses to estimate credit losses on certain types of financial instruments. This standard was effective for the Company as of January 1, 2023. There was no impact on our financial statements at adoption.

 

(3) Business Segments.

 

The Company is reporting its financial performance based on four reportable segments, Industrial and Commercial (previously named Asset Management), Mining Royalty Lands, Development, and Multifamily (previously named Stabilized Joint Venture), as described below.

 

9 
 

The Industrial and Commercial Segment owns, leases and manages in-service commercial properties. Currently this includes nine warehouses in two business parks, an office building partially occupied by the Company, and two ground leases all wholly owned by the Company. This segment will also include joint ventures of commercial properties when they are stabilized.

 

Our Mining Royalty Lands Segment owns several properties totaling approximately 16,650 acres currently under lease for mining rents or royalties (this does not include the 4,280 acres owned in our Brooksville joint venture with Vulcan Materials). Other than one location in Virginia, all of these properties are located in Florida and Georgia.

 

Through our Development Segment, we own and are continuously assessing the highest and best use of several parcels of land that are in various stages of development. Our overall strategy in this segment is to convert all of our non-income producing lands into income production through (i) an orderly process of constructing new buildings for us to own and operate or (ii) a sale to, or joint venture with, third parties. Additionally, our Development segment will form joint ventures on new developments of land not previously owned by the Company.

 

The Multifamily Segment includes joint ventures which own, lease and manage apartment projects that have met our initial lease-up criteria. Two of our joint ventures in the segment, Riverfront Investment Partners I, LLC (“Dock 79”) and Riverfront Investment Partners II, LLC (“The Maren”) are consolidated. The ownership of Dock 79 and The Maren attributable to our partners are reflected on our consolidated balance sheet as a noncontrolling interest. Such noncontrolling interests are reported on the Consolidated Balance Sheets within equity but separately from shareholders' equity. On the Consolidated Statements of Income, all of the revenues and expenses from Dock 79 and The Maren are reported in net income, including both the amounts attributable to the Company and the noncontrolling interest. The amounts of consolidated net income attributable to the noncontrolling interest is clearly identified on the accompanying Consolidated Statements of Income.

 

Operating results and certain other financial data for the Company’s Business segments are as follows (in thousands):

 

                   
      Three Months ended
      March 31,
      2024   2023
  Revenues:        
Revenues  Industrial and commercial   $ 1,453       1,070  
Revenues  Mining royalty lands     2,963       3,282  
Revenues  Development     303       486  
Revenues  Multifamily     5,414       5,276  
Revenues       10,133       10,114  
                   
  Operating profit (loss):                
   Before corporate expenses:                
Operating profit before corporate expenses    Industrial and commercial   $ 812       591  
Operating profit before corporate expenses    Mining royalty lands     2,724       3,013  
Operating profit before corporate expenses    Development     (60 )     50  
Operating profit before corporate expenses    Multifamily     1,448       993  
Operating profit before corporate expenses     Operating profit before G&A     4,924       4,647  
   General and administrative expenses:                
General and administrative expenses   Allocated to Industrial and commercial     (250 )     (296 )
General and administrative expenses   Allocated to mining royalty lands     (278 )     (223 )
General and administrative expenses   Allocated to development     (1,278 )     (1,085 )
General and administrative expenses   Allocated to Multifamily     (236 )     (189 )
General and administrative expenses     Total general and administrative expenses     (2,042 )     (1,793 )
Operating profit     $ 2,882       2,854  
                   
Interest expense Interest expense   $ 911       1,006  

 

10 
 
                   
  Depreciation, depletion and amortization:                
Depreciation, depletion and amortization  Industrial and commercial   $ 363       278  
Depreciation, depletion and amortization  Mining royalty lands     149       183  
Depreciation, depletion and amortization  Development     42       55  
Depreciation, depletion and amortization  Multifamily     1,981       2,264  
Depreciation, depletion and amortization     $ 2,535       2,780  
  Capital expenditures:                
Capital expenditures  Industrial and commercial   $ 145       480  
Capital expenditures  Mining royalty lands     20           
Capital expenditures  Development     5,954       594  
Capital expenditures  Multifamily     86       132  
Capital expenditures     $ 6,205       1,206  

 

 

        March 31,       December 31,    
  Identifiable net assets   2024       2023    
                   

Assets 

Industrial and commercial $ 38,490       38,784    
Assets Mining royalty lands   48,281       48,072    
Assets Development   142,908       212,384    
Assets Multifamily   321,613       249,750    
Cash Cash items   153,139       158,415    
Assets Unallocated corporate assets   1,242       1,761    
Assets   $ 705,673       709,166    

 

(4) Related Party Transactions.

 

The Company was a party to an Administrative Services Agreement which resulted from our January 30, 2015 spin-off of Patriot Transportation Holding, Inc. (Patriot). The Administrative Services Agreement set forth the terms on which Patriot provided FRP certain services that were shared prior to the Spin-off, including the services of certain shared executive officers. The boards of the respective companies amended and extended this agreement for one year effective April 1, 2023. Patriot was purchased by an unaffiliated company in December 2023 resulting in FRP and Patriot no longer being related parties. The previously shared executive officers became FRP employees as of 2024.

 

The consolidated statements of income reflect charges and/or allocation from Patriot for these services of $225,000 for the three months ended March 31, 2023. These charges are reflected as part of general and administrative expense.

 

To determine these allocations between FRP and Patriot as set forth in the Administrative Services Agreement, we employ an allocation method to allocate said expenses and thus we believe that the allocations to FRP are a reasonable approximation of the costs related to FRP’s operations, but any such related-party transactions cannot be presumed to be carried out on an arm’s-length basis.

 

(5) Long-Term Debt.

 

The Company’s Outstanding debt, net of unamortized debt issuance costs, consisted of the following (in thousands):

 

    March 31,   December 31,
    2024   2023
Fixed rate mortgage loans, 3.03% interest only, matures 4/1/2033   $ 180,070       180,070  
Unamortized debt issuance costs     (1,328 )     (1,365 )
Credit agreement                  
 Long term debt   $ 178,742       178,705  

 

11 
 

 

On December 22, 2023, the Company entered into a 2023 Amended and Restated Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, N.A. (“Wells Fargo”), effective December 22, 2023. The Credit Agreement modifies the Company’s prior Credit Agreement with Wells Fargo dated January 30, 2015. The Credit Agreement establishes a three-year revolving credit facility with a maximum facility amount of $35 million. The interest rate under the Credit Agreement will be 2.25% over the Daily Simple SOFR in effect. A commitment fee of 0.35% per annum is payable quarterly on the unused portion of the commitment. As of March 31, 2024, there was no debt outstanding on this revolver, $898,000 outstanding under letters of credit and $34,102,000 available for borrowing. The letters of credit were issued to guarantee certain obligations to state agencies related to real estate development. Most of the letters of credit are irrevocable for a period of one year and typically are automatically extended for additional one-year periods. The letter of credit fee is 2.25% and applicable interest rate would have been 7.57% on March 31, 2024. The credit agreement contains affirmative financial covenants and negative covenants, including a minimum tangible net worth. As of March 31, 2024, these covenants would have limited our ability to pay dividends to a maximum of $96.9 million combined.

 

On March 19, 2021, the Company refinanced Dock 79 and The Maren pursuant to separate Loan Agreements and Deed of Trust Notes entered into with Teachers Insurance and Annuity Association of America, LLC. Dock 79 and The Maren borrowed principal sums of $92,070,000 and $88,000,000 respectively, in connection with the refinancing. The loans are separately secured by the Dock 79 and The Maren real property and improvements, bear a fixed interest rate of 3.03% per annum, and require monthly payments of interest only with the principal due in full April 1, 2033. Either loan may be prepaid subsequent to April 1, 2024, subject to yield maintenance premiums. Either loan may be transferred to a qualified buyer as part of a one-time sale subject to a 60% loan to value, minimum of 7.5% debt yield and a 0.75% transfer fee.

 

Debt cost amortization of $45,000 and $37,000 was recorded during the three months ended March 31, 2024 and 2023, respectively. During the three months ended March 31, 2024 and 2023 the Company capitalized interest costs of $533,000 and $406,000, respectively.

 

The Company was in compliance with all debt covenants as of March 31, 2024.

 

(6) Earnings per Share.

 

The following details the computations of the Basic and diluted earnings per common share as adjusted for the 2 for 1 stock split that occurred in April 2024 (in thousands, except per share amounts):

               
  Three Months ended
  March 31,
  2024   2023
       

Weighted average common shares outstanding

during the period – shares used for basic 

earnings per common share

  18,859       18,832  
               

Common shares issuable under share-based

 payment plans which are potentially dilutive

  85       80  
               

Common shares used for diluted

 earnings per common share

  18,944       18,912  
               
Net income attributable to the Company $ 1,301       565  
               
Earnings per common share:              
   -basic $ .07       .03  
   -diluted $ .07       .03  

 

12 
 

 

For the three months ended March 31, 2024 and 2023, the Company did not have any outstanding anti-dilutive stock options.

 

(7) Stock-Based Compensation Plans.

 

The Company has two Stock Option Plans (the 2006 Stock Incentive Plan and the 2016 Equity Incentive Option Plan) under which options for shares of common stock were granted to directors, officers and key employees. The 2016 plan permits the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, or stock awards. The options awarded under the plans have similar characteristics. All stock options are non-qualified and expire ten years from the date of grant. Stock based compensation awarded to directors, officers and employees are exercisable immediately or become exercisable in cumulative installments of 20% or 25% at the end of each year following the date of grant. When stock options are exercised, the Company issues new shares after receipt of exercise proceeds and taxes due, if any, from the grantee. The number of common shares available for future issuance was 619,508 at March 31, 2024.

 

The Company utilizes the Black-Scholes valuation model for estimating fair value of stock compensation for options awarded to officers and employees. Each grant is evaluated based upon assumptions at the time of grant. The assumptions were no dividend yield, expected volatility between 28.5% and 41.2%, risk-free interest rate of 2.0% to 3.8% and expected life of 5.0 to 7.0 years.

 

The dividend yield of zero is based on the fact that the Company does not pay cash dividends and has no present intention to pay cash dividends. Expected volatility is estimated based on the Company’s historical experience over a period equivalent to the expected life in years. The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate at the date of grant with a term consistent with the expected life of the options granted. The expected life calculation is based on the observed and expected time to exercise options by the employees.

 

The Company recorded the following Stock compensation expense in its consolidated statements of income (in thousands):

                 
    Three Months ended
    March 31,
    2024   2023
Stock option grants   $ 19       17  
Restricted stock awards     301       257  
Employee stock grant              50  
Stock compensation   $ 320       324  

 

A Summary of changes in outstanding options is presented below (in thousands, except share and per share amounts):

 

        Weighted   Weighted   Weighted
    Number   Average   Average   Average
    Of   Exercise   Remaining   Grant Date
Options   Shares   Price   Term (yrs)   Fair Value(000's)
                 
Outstanding at January 1, 2024     126,880     $ 20.00     3.5   $   981  
    Time-based awards granted     12,200       31.44           150  
    Performance-based awards granted     20,330       31.44           250  
Outstanding at March 31, 2024     159,410     $ 22.33     4.5   $ 1,381  
                             
Exercisable at March 31, 2024     126,880     $ 20.00     3.2   $   981  
                             

Vested during three months ended

March 31, 2024

                       $     

 

13 
 

 

The aggregate intrinsic value of exercisable in-the-money options was $1,358,000 and the aggregate intrinsic value of outstanding in-the-money options was $1,358,000 based on the market closing price of $61.40 on March 28, 2024 less exercise prices.

 

The unrecognized compensation cost of options granted to FRP employees but not yet vested as of March 31, 2024 was $331,000, which is expected to be recognized over a weighted-average period of 4.3 years.

 

A Summary of changes in restricted stock awards is presented below (in thousands, except share and per share amounts):

        Weighted   Weighted   Weighted
    Number   Average   Average   Average
    Of   Exercise   Remaining   Grant Date
Restricted stock   Shares   Price   Term (yrs)   Fair Value(000's)
                 
Non-vested at January 1, 2024     109,454     $ 26.47     2.8   $ 2,897  
    Time-based awards granted     15,904       31.44           500  
    Performance-based awards granted     16,248       31.44           503  
    Vested     (8,684 )     29.16           (253 )
Non-vested at March 31, 2024     132,922     $ 27.44     2.9   $ 3,647  
                             

 

Total unrecognized compensation cost of restricted stock granted but not yet vested as of March 31, 2024 was $2,970,000 which is expected to be recognized over a weighted-average period of 3.1 years.

 

(8) Contingent Liabilities.

 

The Company may be involved in litigation on a number of matters and is subject to certain claims which arise in the normal course of business. The Company has retained certain self-insurance risks with respect to losses for third party liability and property damage. In the opinion of management, none of these matters are expected to have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows.

 

The Company is subject to numerous environmental laws and regulations. The Company believes that the ultimate disposition of currently known environmental matters will not have a material effect on its financial position, liquidity, or operations. The Company can give no assurance that previous environmental studies with respect to its properties have revealed all potential environmental contaminants; that any previous owner, occupant or tenant did not create any material environmental condition not known to the Company; that the current environmental condition of the properties will not be affected by tenants and occupants, by the condition of nearby properties, or by unrelated third parties; and that changes in applicable environmental laws and regulations or their interpretation will not result in additional environmental liability to the Company.

 

As of March 31, 2024, there was $898,000 outstanding under letters of credit. The letters of credit were issued to guarantee certain obligations to state agencies related to real estate development.

 

The Company and MidAtlantic Realty Partners (MRP) provided a guaranty for the interest carry cost of $110 million loan on the Bryant Street Partnerships issued in December 2023. The Company and MRP have a side agreement limiting the Company’s guarantee to its proportionate ownership. The value of the guarantee was calculated at $1.5 million based on the present value of our assumption of 0.8% interest savings over the anticipated 36-month term. This amount is included as part of the Company’s investment basis and is amortized to expense over the 36 months. The Company will evaluate the guarantee liability based upon the success of the project and assuming no payments are made under the guarantee, the Company will have a gain for $1.5 million when the loan is paid in full.

 

(9) Concentrations.

 

The mining royalty lands segment has a total of five tenants currently leasing mining locations and one lessee that accounted for 21.9% of the Company’s consolidated revenues during the three months ended March 31, 2024, and

14 
 

$403,000 of accounts receivable at March 31, 2024. The termination of these lessees’ underlying leases could have a material adverse effect on the Company. The Company places its cash and cash equivalents with Wells Fargo Bank, TD Bank, and First Horizon Bank. At times, such amounts may exceed FDIC limits.

 

(10) Fair Value Measurements.

 

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 means the use of quoted prices in active markets for identical assets or liabilities. Level 2 means the use of values that are derived principally from or corroborated by observable market data. Level 3 means the use of inputs are those that are unobservable and significant to the overall fair value measurement.

 

At March 31, 2024, the Company was invested in U.S. Treasury notes valued at $141,603,000 maturing in 2024. The unrealized loss on these investments of $150 was recorded as part of comprehensive income and based on the estimated market value by Wells Fargo Bank, N.A. (Level 1).

 

At March 31, 2024 and December 31, 2023, the carrying amount reported in the consolidated balance sheets for cash and cash equivalents including U.S. Treasury notes was adjusted to fair value as described above.

 

The fair values of the Company’s other mortgage notes payable were estimated based on current rates available to the Company for debt of the same remaining maturities. At March 31, 2024, the carrying amount and fair value of such other long-term debt was $180,070,000 and $141,394,000, respectively. At December 31, 2023, the carrying amount and fair value of such other long-term debt was $180,070,000 and $145,678,000, respectively.

 

(11) Investments in Joint Ventures.

 

The Company has investments in joint ventures, primarily with other real estate developers. Joint ventures where FRP is not the primary beneficiary are reflected in the line “Investment in joint ventures” on the balance sheet and “Equity in loss of joint ventures” on the income statement. The assets of these joint ventures are restricted to use by the joint ventures and their obligations can only be settled by their assets or additional contributions by the partners.

 

The following table summarizes the Company’s Investments in unconsolidated joint ventures (in thousands):

 

 

 

                          The  
                            Company's  
                            Share of Profit  
     Common     Total     Total Assets of     Profit (Loss)      (Loss) of the  
    Ownership     Investment     The Partnership     Of the Partnership      Partnership  
                               
As of March 31, 2024                              
Brooksville Quarry, LLC   50.00 %  $ 7,539     14,436     (24 )   (12 )
BC FRP Realty, LLC   50.00 %   5,812     22,650     (72 )   (36 )
Buzzard Point Sponsor, LLC   50.00 %   2,391     4,782              
Bryant Street Partnerships   72.10 %   70,017     201,819     (2,311 )   (1,700 )
Lending ventures         30,171     19,431              
BBX Partnerships   50.00 %   1,628     3,256              
Estero Partnership   16.00 %   3,627     38,529              
The Verge Partnership   61.37 %   36,715     128,640     (1,593 )   (978 )
Greenville Partnerships   40.00 %   6,371     99,647     (733 )   (293 )
   Total        $ 164,271     533,190       (4,733 )     (3,019 )

 

 

The Company completed negotiations with MRP concerning the ownership adjustment related to the Bryant Street stabilization and conversion of FRP preferred equity to common equity resulting in FRP ownership of 72.10% effective in 2024 compared to 61.36% prior ownership.

15 
 

 

The major classes of assets, liabilities and equity of the Company’s Investments in Joint Ventures as of March 31, 2024 are summarized in the following two tables (in thousands):

                                               
  As of March 31, 2024    
  Buzzard Point   Bryant Street   Estero   Verge   Greenville   Multifamily
  Sponsor, LLC   Partnership   Partnership   Partnership   Partnership   JV’s
                       
Investments in real estate, net 0       188,761       36,212       127,064       97,508      $ 449,545  
Cash and restricted cash   0       6,060       2,317       940       1,890       11,207  
Unrealized rents & receivables   0       6,428       0       390       119       6,937  
Deferred costs   4,782       570       0       246       130       5,728  
   Total Assets 4,782       201,819       38,529       128,640       99,647     $ 473,417  
                                             

 

 

Secured notes payable 0       110,333       16,000       71,332       81,619     $ 279,284  
Other liabilities   0       1,490       0       1,082       1,108       3,680  
Capital – FRP   2,391       68,009       3,600       34,441       5,418       113,859  
Capital – Third Parties   2,391       21,987       18,929       21,785       11,502       76,594  
   Total Liabilities and Capital 4,782       201,819       38,529       128,640       99,647     $ 473,417  

 

                                               
  As of March 31, 2024    
  BBX   Brooksville   BC FRP   Lending   Multifamily   Grand
  Partnerships   Quarry, LLC   Realty, LLC   Ventures   JV’s    Total
                       
Investments in real estate, net 3,256       14,357       21,761       19,431       449,545      $ 508,350  
Cash and restricted cash   0       72       193       0       11,207       11,472  
Unrealized rents & receivables   0       0       448       0       6,937       7,385  
Deferred costs   0       7       248       0       5,728       5,983  
   Total Assets 3,256       14,436       22,650       19,431       473,417     $ 533,190  
                                             

 

 

Secured notes payable 0       0       10,782       (10,740 )     279,284     $ 279,326  
Other liabilities   0       22       356       0       3,680       4,058  
Capital – FRP   1,628       7,539       5,756       30,171       113,859       158,953  
Capital – Third Parties   1,628       6,875       5,756       0       76,594       90,853  
   Total Liabilities and Capital 3,256       14,436       22,650       19,431       473,417     $ 533,190  

 

The Company’s capital recorded by the unconsolidated Joint Ventures is $5,318,000 less than the Investment in Joint Ventures reported in the Company’s consolidated balance sheet due primarily to capitalized interest.

 

The major classes of assets, liabilities and equity of the Company’s Investments in Joint Ventures as of December 31, 2023 are summarized in the following two tables (in thousands):

                                               
  As of December 31, 2023    
  Buzzard Point   Bryant Street   Estero   Verge   Greenville   Multifamily
  Sponsor, LLC   Partnership   Partnership   Partnership   Partnership   JV’s
                       
Investments in real estate, net 0       187,616       35,576       128,154       95,911      $ 447,257  
Cash and restricted cash   0       7,543       3,076       1,323       2,000       13,942  
Unrealized rents & receivables   0       6,737       0       403       127       7,267  
Deferred costs   4,652       738       0       293       185       5,868  
   Total Assets 4,652       202,634       38,652       130,173       98,223     $ 474,334  
                                             

 

 

Secured notes payable 0       107,084       16,000       72,691       66,434     $ 262,209  
Other liabilities   0       3,129       0       1,344       3,867       8,340  
Capital – FRP   2,326       69,779       3,600       34,391       10,450       120,546  
Capital – Third Parties   2,326       22,642       19,052       21,747       17,472       83,239  
   Total Liabilities and Capital 4,652       202,634       38,652       130,173       98,223     $ 474,334  

 

16 
 

 

                               
  As of December 31, 2023      
  Brooksville   BC FRP   Lending   Multifamily   Grand  
  Quarry, LLC   Realty, LLC   Ventures   JV’s   Total  
               
Investments in real estate, net $ 14,358     21,503     17,117     447,257   $ 500,235  
Cash and restricted cash   80     127     0     13,942     14,149  
Unrealized rents & receivables   0     464     0     7,267     7,731  
Deferred costs   1     360     0     5,868     6,229  
   Total Assets $ 14,439     22,454     17,117     474,334   $ 528,344  
                               
Secured notes payable $ 0     12,086     (10,578 )   262,209   $ 263,717  
Other liabilities   0     402     0     8,340     8,742  
Capital – FRP   7,552     4,983     27,695     120,546     160,776  
Capital - Third Parties   6,887     4,983     0     83,239     95,109  
   Total Liabilities and Capital $ 14,439     22,454     17,117     474,334   $ 528,344  

 

The amount of consolidated retained earnings (accumulated deficit) for these joint ventures was $(24,133,000) and $(21,823,000) as of March 31, 2024 and December 31, 2023, respectively.

 

 

The income statements of the Bryant Street Partnerships are as follows (in thousands):

 

    Bryant Street   Bryant Street   Bryant Street   Bryant Street  
    Partnerships   Partnerships   Partnerships   Partnerships  
    Total JV   Total JV   Company Share   Company Share  
    Three Months ended   Three Months ended   Three Months ended   Three Months ended  
    March 31,   March 31,   March 31,   March 31,  
    2024   2023   2024   2023  
Revenues:                                
    Rental Revenue   $ 3,303     $ 3,078     $ 2,382     $ 1,889  
    Revenue – other     534       512       385       314  
Total Revenues     3,837       3,590       2,767       2,203  
                                 
Cost of operations:                                
     Depreciation and amortization     1,685       1,621       1,215       995  
     Operating expenses     1,455       1,378       1,032       845  
     Property taxes     363       132       279       81  
Total cost of operations     3,503       3,131       2,526       1,921  
                                 
Total operating profit/(loss)     334       459       241       282  
Interest expense     (2,645 )     (2,754 )     (1,941     (1,788
                                 
Net loss before tax   (2,311 )   $ (2,295 )   $ (1,700 )   $ (1,506 )
                                     

 

 

The income statements of the Greenville Partnerships are as follows (in thousands):

 

17 
 
    Greenville   Greenville   Greenville   Greenville  
    Partnerships   Partnerships   Partnerships   Partnerships  
    Total JV   Total JV   Company Share   Company Share  
    Three Months ended   Three Months ended   Three Months ended   Three Months ended  
    March 31,   March 31,   March 31,   March 31,  
    2024   2023   2024   2023  
Revenues:                                
    Rental Revenue   $ 2,256     $ 1,167     $ 902     $ 467  
    Revenue – other     110       90       44       36  
Total Revenues     2,366       1,257       946       503  
                                 
Cost of operations:                                
     Depreciation and amortization     868       676       347       270  
     Operating expenses     624       526       249       211  
     Property taxes     454       234       182       94  
Total cost of operations     1,946       1,436       778       575  
                                 
Total operating profit/(loss)     420       (179 )     168       (72 )
Interest expense     (1,153 )     (678 )     (461     (271
                                 
Net loss before tax   (733 )   $ (857 )   $ (293 )   $ (343 )

 

 

 

The income statements of The Verge Partnership are as follows (in thousands):

 

 

    The Verge   The Verge   The Verge   The Verge  
    Partnership   Partnership   Partnership   Partnership  
    Total JV   Total JV   Company Share   Company Share  
    Three Months ended   Three Months ended   Three Months ended   Three Months ended  
    March 31,   March 31,   March 31,   March 31,  
    2024   2023   2024   2023  
Revenues:                                
    Rental Revenue   $ 1,705     $ 250     $ 1,046     $ 154  
    Revenue – other     283       30       174       18  
Total Revenues     1,988       280       1,220       172  
                                 
Cost of operations:                                
     Depreciation and amortization     1,043       1,021       640       627  
     Operating expenses     839       679       515       417  
     Property taxes     264       276       162       169  
Total cost of operations     2,146       1,976       1,317       1,213  
                                 
Total operating profit/(loss)     (158 )     (1,696 )     (97 )     (1,041 )
Interest expense     (1,435 )     (1,031 )     (881 )     (632 )
                                 
Net loss before tax   (1,593 )   $ (2,727 )   $ (