FRP (FRPH) 10-Q 5 Feb 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Dec. 31, 2015shares
Document And Entity Information
Entity Registrant Name	FRP HOLDINGS, INC.
Entity Central Index Key	844,059
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	9,840,600
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Real estate investments at cost:
Land	$ 104,678	$ 102,347
Buildings and improvements	181,977	174,820
Projects under construction	4,994	4,129
Total investments in properties	291,649	281,296
Less accumulated depreciation and depletion	75,710	74,091
Net investments in properties	215,939	207,205
Real estate held for investment, at cost	7,306	7,306
Real estate held for sale, at cost	0	4,826
Investment in joint ventures	19,168	19,010
Net real estate investments	242,413	238,347
Cash and cash equivalents	0	419
Cash held in escrow	1,174	0
Accounts receivable	569	778
Federal and state income taxes receivable	0	393
Unrealized rents	4,864	4,817
Deferred costs	7,914	7,449
Other assets	175	275
Total assets	257,109	252,478
Liabilities:
Secured notes payable, less current portion	34,924	36,011
Secured notes payable, current portion	4,247	4,180
Lines of credit payable	2,928	8,494
Accounts payable and accrued liabilities	1,809	3,456
Environmental remediation liability	48	51
Deferred revenue	806	1,060
Federal and state income taxes payable	1,039	0
Bank overdraft	69	0
Deferred income taxes	17,987	14,541
Deferred compensation	1,444	1,400
Deferred lease intangible, net	30	45
Tenant security deposits	991	898
Total liabilities	$ 66,322	$ 70,136
Commitments and contingencies (Note 8)
Shareholders' Equity:
Common stock, $.10 par value; 25,000,000 shares authorized, 9,840,600 and 9,791,770 shares issued and outstanding, respectively	$ 984	$ 979
Capital in excess of par value	50,839	49,872
Retained earnings	138,970	131,497
Accumulated other comprehensive loss, net	(6)	(6)
Total shareholders' equity	190,787	182,342
Total liabilities and shareholders' equity	$ 257,109	$ 252,478

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Sep. 30, 2015
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued and outstanding	9,840,600	9,791,770

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenues:
Rental revenue	$ 6,027	$ 5,868
Royalty and rents	1,638	1,320
Revenue - reimbursements	1,158	1,114
Total revenues	8,823	8,302
Cost of operations:
Depreciation, depletion and amortization	1,896	1,883
Operating expenses	973	914
Environmental remediation recovery	(3,000)	0
Property taxes	1,118	1,095
Management company indirect	504	352
Corporate expenses (Note 4 Related Party)	732	1,713
Total cost of operations	2,223	5,957
Total operating profit	6,600	2,345
Interest income	1	0
Interest expense	(481)	(445)
Equity in loss of joint ventures	(54)	(30)
Gain (loss) on investment land sold	6,286	(17)
Income from continuing operations before income taxes	12,352	1,853
Provision for income taxes	4,879	722
Income from continuing operations	7,473	1,131
Gain from discontinued transportation operations, net of taxes	0	1,663
Net income	7,473	2,794
Comprehensive net income	$ 7,473	$ 2,794
Basic earnings per common share
Income from continuing operations	$ 0.76	$ 0.12
Discontinued operations	0	0.17
Net income	0.76	0.29
Diluted earnings per common share
Income from continuing operations	0.76	0.12
Discontinued operations	0	0.17
Net income	$ 0.76	$ 0.29
Number of shares (in thousands) used in computing:
-basic earnings per common share	9,802	9,711
-diluted earnings per common share	9,853	9,771

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 7,473	$ 2,794
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations, net	0	(1,663)
Depreciation, depletion and amortization	1,959	1,865
Deferred income taxes	3,446	826
Equity in loss of joint ventures	54	30
(Gain) Loss on sale of equipment and property	(6,285)	73
Stock-based compensation	72	172
Net changes in operating assets and liabilities:
Accounts receivable	209	327
Deferred costs and other assets	(750)	(203)
Accounts payable and accrued liabilities	(1,904)	(1,496)
Income taxes payable and receivable	1,432	(382)
Other long-term liabilities	122	6
Net cash provided by operating activities of continuing operations	5,828	2,349
Net cash provided by operating activities of discontinued operations	0	4,010
Net cash provided by operating activities	5,828	6,359
Cash flows from investing activities:
Investments in properties	(10,539)	(1,738)
Investment in joint ventures	(214)	(135)
Cash held in escrow	(1,174)	35
Proceeds from the sale of real estate held for investment and properties	11,297	(17)
Net cash used in investing activities of continuing operations	(630)	(1,855)
Net cash used in investing activities of discontinued operations	0	(2,193)
Net cash used in investing activities	(630)	(4,048)
Cash flows from financing activities:
Increase in bank overdrafts	69	0
Repayment of long-term debt	(1,020)	(1,123)
Proceeds from borrowing on revolving credit facility	11,541	774
Payment on revolving credit facility	(17,107)	(1,169)
Excess tax benefits from exercises of stock options	0	94
Exercise of employee stock options	900	251
Net cash used in financing activities of continuing operations	(5,617)	(1,173)
Net cash used in financing activities of discontinued operations	0	(1,256)
Net cash used in financing activities	(5,617)	(2,429)
Net decrease in cash and cash equivalents	(419)	(118)
Cash and cash equivalents at beginning of period	419	1,013
Cash and cash equivalents at end of the period	$ 0	$ 895

Basis of Presentation

Basis of Presentation	3 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	(1) Basis of Presentation Following the completion of the Spin-off of the transportation business, management conducted a strategic review of the Company’s real estate operations. As a result of this review, it was determined that the information that the Company’s chief operating decision makers regularly review for purposes of allocating resources and assessing performance, had changed. Therefore, beginning with the quarter ending March 31, 2015 (with prior periods adjusted accordingly), the Company is reporting its financial performance based on three reportable segments, Asset Management, Mining Royalty Lands and Land Development and Construction, as described below. Our Mining and Royalties segment stays the same, but based on our strategic review the Developed Property Rentals segment has been broken down into an Asset Management segment and a Land Development and Construction segment to reflect how management now evaluates the real estate activities previously presented in the Developed Property Rentals segment. The Asset Management segment contains all the developed buildings capable of producing current rental income; the Land Development and Construction segments contains the remaining developable land not yet developed to its eventual highest and best use potential where the Company's focus is to add further entitlements, construct vertical improvements or market the property to third parties all in an effort to bring such property to income producing status or realization of its fair market value through sales or exchange. This Land Development and Construction segment is generally in a pre-income production state where objectives are long term capital investment for eventual production of long-term rental streams or capital investment to achieve highest potential market value for sale to third parties. Prior to the quarter ending December 31, 2015 certain corporate expenses (primarily stock compensation, corporate aircraft and one-time Spin-off related expenses) were reported as “unallocated” on the Company’s consolidated income statement and were not allocated to any business segment. Effective with fiscal 2016 all corporate expenses, other than those not allocated to discontinued operations, have been allocated. Reclassifications to the appropriate prior period line items and amounts have been made to be comparable to the current presentation. See Note 3 for a breakdown of corporate expenses showing the amounts allocated to the segments and the unallocated to discontinued operations.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Recent Accounting Pronouncements	(2) Recently Issued Accounting Standards.

Business Segments

Business Segments	3 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Business Segments	(3) Business Segments. The Asset Management segment owns, leases and manages warehouse/office buildings located predominately in the Baltimore/Northern Virginia/Washington, DC market area. Our Mining Royalty Lands segment was unaffected by the change in segments and owns several properties comprising approximately 15,000 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 Land Development and Construction segment, we own and are continuously monitoring for their “highest and best use” 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 warehouse/office buildings for us to own and operate or (ii) a sale to, or joint venture with, third parties. Subsequent to the Spin-off, the Company is receiving certain services from Patriot (e.g. executive oversight, accounting, information technology and human resource services) which are billed to the Company on a monthly basis in accordance with the Transition Services Agreement entered into and made effective as of the date of the Spin-off. As was the case prior to the Spin-off, these costs (excluding stock compensation) are included in the Company’s corporate expense and are fully allocated to the business segments. Certain other corporate expenses (primarily stock compensation, corporate aircraft and one-time Spin-off related expenses) are reported as “unallocated” on the Company’s consolidated income statement and are not allocated to any business segment. As a result of the Spin-off the former transportation segment of the Company is reported as a discontinued operation and thus is not allowed any corporate overhead allocation. Hence, all corporate overhead of the transportation group through the date of the Spin-off is included in “corporate expense” on the Company’s consolidated income statements herein. Reclassifications to the appropriate prior period line items and amounts have been made to be comparable to the current presentation. Operating results and certain other financial data for the Company’s business segments are as follows (in thousands): Three Months ended December 31, 2015 2014 Revenues: Asset management $ 6,915 6,757 Mining royalty lands 1,659 1,344 Land development and construction 249 201 $ 8,823 8,302 Operating profit: Before corporate expenses: Asset management $ 3,388 3,386 Mining royalty lands 1,525 1,200 Land development and construction 2,419 (528 ) Corporate expenses: Allocated to asset management (378 ) (300 ) Allocated to mining royalty (55 ) (318 ) Allocated to land development and construction (299 ) (176 ) Unallocated to discontinued operations — (919 ) (732 ) (1,713 ) $ 6,600 2,345 Interest expense: Asset management $ 481 445 Depreciation, depletion and amortization: Asset management $ 1,798 1,786 Mining royalty lands 34 31 Land development and construction 64 66 $ 1,896 1,883 Capital expenditures: Asset management 9,237 905 Mining royalty lands — — Land development and construction 1,302 833 $ 10,539 1,738 December 30, September 30, Identifiable net assets 2015 2015 Asset management $ 159,216 151,023 Mining royalty lands 39,298 39,300 Land development and construction 56,916 60,682 Cash items 1,174 419 Unallocated corporate assets 505 1,054 $ 257,109 252,478

Related Party Transactions

Related Party Transactions	3 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions	(4) Related Party Transactions. The consolidated statements of income reflects charges and/or allocations from Patriot for these services of $386,000 and $794,000 for the three months ended December 31, 2015 and 2014, respectively. To determine these allocations between FRP and Patriot as set forth in the Transition Services Agreement, we generally employed the same methodology historically used by the Company pre Spin-off 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 as the terms were negotiated while Patriot was still a subsidiary of FRP. As a result of the Spin-off the former transportation segment of the Company is reported as a discontinued operation and thus is not allowed any corporate overhead allocation. Hence, all corporate overhead of the transportation group through the date of the Spin-off is included in “corporate expense” on the Company’s consolidated income statements. The consolidated statements of income reflect charges and/or allocation for these services of $919,000 for the three months ended December 31, 2014.

Long-Term Debt

Long-Term Debt	3 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Long-Term Debt	(5) Long-Term debt. December 31, September 30, 2015 2015 Revolving credit (uncollateralized) $ 2,928 8,494 5.6% to 7.9% mortgage notes due in installments through 2027 39,171 40,191 42,099 48,685 Less portion due within one year 4,247 4,180 $ 37,852 44,505 On January 30, 2015, in connection with the Spin-off, the Company terminated its $55 million credit facility entered into with Wells Fargo Bank, N.A. in 2012 and simultaneously entered into a new five year credit agreement with Wells Fargo with a maximum facility amount of $20 million (the "Credit Agreement"). The Credit Agreement provides a revolving credit facility (the “Revolver”) with a $10 million sublimit available for standby letters of credit. At the time of the Spin-off, the Company refinanced $10,483,000 of borrowings then outstanding on the terminated revolver. As of December 31, 2015, there was $2,837,000 outstanding on the Company’s new credit facility, $2,377,000 letters of credit and $14,786,000 available for borrowing. The credit agreement contains certain conditions and financial covenants, including a minimum $110 million tangible net worth. As of December 31, 2015, the tangible net worth covenant would have limited our ability to pay dividends or repurchase stock with borrowed funds to a maximum of $79 million combined. The Company was in compliance with all covenants as of December 31, 2015. During the first quarter of fiscal 2015, the Company announced the execution of a commitment from First Tennessee Bank to provide up to $40 million dollars of mortgage backed financing in two separate facilities. On July 24, 2015 the Company closed on a five year, $20 million secured revolver with a twenty-four month window to convert up to the full amount of the facility into a ten year term loan. As of December 31, 2015, there was $91,000 outstanding on the revolver. The second facility is a $20 million ten year term loan secured by to-be-determined collateral from our current pool of unencumbered warehouse/office properties. We expect to close on the ten year term loan during calendar 2016. The purpose of these loans is to facilitate growth through new construction in the Land Development and Construction segment and/or acquisition of existing, operating buildings to be added to the Asset Management segment. During the three months ended December 31, 2015 and December 31, 2014 the Company capitalized interest costs of $222,000 and $321,000, respectively. The fair values of the Company’s mortgage notes payable were estimated based on current rates available to the Company for debt of the same remaining maturities. At December 31, 2015, the carrying amount and fair value of such long-term debt was $39,171,000 and $42,325,000, respectively.

Earnings per Share

Earnings per Share	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Earnings per Share	(6) Earnings per share. Three Months ended December 31, 2015 2014 Weighted average common shares outstanding during the period – shares used for basic earnings per common share 9,802 9,711 Common shares issuable under share based payment plans which are potentially dilutive 51 60 Common shares used for diluted earnings per common share 9,853 9,771 Income from continuing operations $ 7,473 1,131 Discontinued operations — 1,663 Net income $ 7,473 2,794 Basic earnings per common share: Income from continuing operations $ 0.76 0.12 Discontinued operations 0.00 0.17 Net income $ 0.76 0.29 Diluted earnings per common share: Income from continuing operations $ 0.76 0.12 Discontinued operations 0.00 0.17 Net income $ 0.76 0.29 For the three months ended December 31, 2015 and 2014, 72,090 and 69,175 shares attributable to outstanding stock options were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

Stock-Based Compensation Plans

Stock-Based Compensation Plans	3 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation Plans	(7) Stock-Based Compensation Plans. As a result of the Spin-off and pursuant to the Employee Matters Agreement, we made certain adjustments to the exercise price and number of outstanding FRP stock options. All outstanding options held by the Company directors, Company officers and key employees on January 30, 2015 were cancelled and replaced by an equal number of FRP options at 75.14% of the previous exercise price based upon the market value of FRP less the when issued market value of the Company on that day. For FRP officers additional options were issued rather than issuing Patriot options for the 24.86% market value attributed to Patriot. The adjusted stock options are subject to the same vesting conditions and other terms that applied to the original FRP award immediately prior to the Spin-off, except as otherwise described above. Subsequent to Spin-off, the realized tax benefit pertaining to options exercised and the remaining compensation cost of options previously granted prior to the Spin-off will be recognized by FRP or Patriot based on the employment location of the related employee or director. The Company recorded the following stock compensation expense (including unallocated to Patriot in periods prior to the Spin-off) in its consolidated statements of income (in thousands): Three Months ended December 31, 2015 2014 Stock option grants $ 72 172 Annual director stock award — — $ 72 172 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 Outstanding at October 1, 2015 305,750 $ 21.90 5.9 $ 2,738 Granted 21,540 $ 31.15 $ 272 Exercised (48,830 ) $ 18.43 $ (362 ) Outstanding at December 31, 2015 278,460 $ 23.22 6.2 $ 2,648 Exercisable at December 31, 2015 200,613 $ 22.00 5.4 $ 1,729 Vested during three months ended December 31, 2015 35,596 $ 341 The aggregate intrinsic value of exercisable in-the-money options was $2,396,000 and the aggregate intrinsic value of outstanding in-the-money options was $2,985,000 based on the market closing price of $33.94 on December 31, 2015 less exercise prices. The realized tax benefit to the Company or Patriot from options exercised in the three months ended December 31, 2015 was $270,000. The unrecognized compensation cost of options granted to FRP employees but not yet vested as of December 31, 2015 was $417,000, which is expected to be recognized over a weighted-average period of 4.0 years. Gains of $698,000 were realized by option holders during the three months ended December 31, 2015.

Contingent liabilities

Contingent liabilities	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Contingent liabilities	(8) Contingent liabilities Preliminary testing on the site of the Company's four phase master development known as RiverFront on the Anacostia in Washington, D.C. indicated the presence of contaminated material that will have to be specially handled upon excavation in conjunction with construction. The Company has agreed with our joint venture partner to bear the cost of handling the contaminated materials on the first phase of this development up to a cap of $1.871 million. We recorded an expense in the fourth quarter of fiscal 2012 of $1,771,000 for this environmental remediation liability which is the lower end of the range of estimates. As of December 31, 2015, the excavation and foundation work for Phase 1 were substantially complete; thus, the bulk of the remediation expenses have been incurred. Management believes the total cost for remediation on Phase 1 will end up at approximately $1.9 million.

Concentrations

Concentrations	3 Months Ended
	Dec. 31, 2015
Risks and Uncertainties [Abstract]
Concentrations	(9) Concentrations

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair Value Measurements	(10) Fair Value Measurements As of December 31, 2015 the Company had no assets or liabilities measured at fair value on a recurring or non-recurring basis. At December 31, 2015 and 2014, the carrying amount reported in the consolidated balance sheets for cash and cash equivalents, short-term notes payable and revolving credit approximate their fair value based upon the short-term nature of these items. 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.

Unusual or Infrequent Items Imp

Unusual or Infrequent Items Impacting Quarterly Results	3 Months Ended
	Dec. 31, 2015
Extraordinary and Unusual Items [Abstract]
Unusual or Infrequent Items Impacting Quarterly Results	(11) Unusual or Infrequent Items Impacting Quarterly Results. Costs of operations for the land development and construction segment for the quarter ending December 31, 2015 includes a $3,000,000 positive benefit from settlement of environmental claims against our former tenant at the Riverfront on the Anacostia property (see Note 8). Gain on investment land sold for the quarter ending December 31, 2015 includes $6,277,000 gain on the sale of phase 2 of Windlass Run residential property.

Investment in Riverfront and Br

Investment in Riverfront and Brooksville Joint Ventures	3 Months Ended
	Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]
Investment in Riverfront and Brooksville Joint Ventures	(12) Investment in Riverfront and Brooksville Joint Ventures. Riverfront. On March 30, 2012 the Company entered into a Contribution Agreement with MRP SE Waterfront Residential, LLC. (“MRP”) to form a joint venture to develop the first phase only of the four phase master development known as RiverFront on the Anacostia in Washington, D.C. The purpose of the Joint Venture is to develop, own, lease and ultimately sell an approximately 300,000 square foot residential apartment building (including approximately 18,000 square feet of retail) on approximately 2.1 acres of the roughly 5.82 acre site. The joint venture, RiverFront Investment Partners I, LLC (“RiverFront I”) was formed in June 2013 as contemplated. The Company contributed land with an agreed to value of $13,500,000 (cost basis of $6,165,000) and contributed cash of $4,866,000 to the Joint Venture for a 76.91% stake in the venture. MRP contributed capital of $5,553,000 to the joint venture including development costs paid prior to formation of the joint venture. The Joint Venture closed on $17,000,000 of EB5 secondary financing and a nonrecourse construction loan for $65,000,000 on August 8, 2014. Both these financing sources are non-recourse to FRP. At the time of these financings, RiverFront Holdings I, LLC. was formed as a parent to RiverFront Investment Partners I, LLC with EB5 as an equity partner in Riverfront Holdings I, LLC. Construction commenced in October 2014. At this point, the Company anticipates lease up to occur in the second half of calendar 2016 and all of 2017. The Company’s equity interest in the joint venture is accounted for under the equity method of accounting as MRP acts as the administrative agent of the joint venture and oversees and controls the day to day operations of the project. Other income for the three months ended December 31, 2015 includes a loss of $45,000 representing the Company’s portion of the loss of this joint venture due primarily to expenses incurred in the joint venture with respect to depreciation on the bulkhead and advertising expense. Brooksville. Investments in Joint Ventures (in thousands): The Company's Total Assets Net Loss Share of Net Total of the of the Loss of the Ownership Investment Partnership Partnership Partnership (Unaudited) (Unaudited) As of December 31, 2015 Riverfront Holdings I, LLC 76.91 % $ 11,635 $ 50,536 $ (53 ) $ (45 ) Brooksville Quarry, LLC 50.00 % 7,533 14,354 (18 ) (9 ) Total $ 19,168 $ 64,890 $ (71 ) $ (54 ) As of September 30, 2015 Riverfront Holdings I, LLC 76.91 % $ 11,517 $ 40,970 $ (108 ) $ (105 ) Brooksville Quarry, LLC 50.00 % 7,493 14,336 (80 ) (40 ) Total 19,010 $ 55,306 $ (188 ) $ (145 ) The amount of consolidated retained earnings for these joint ventures was $423,000 and $389,000 as of December 31, 2015 and September 30, 2015, respectively. Summarized Unaudited Financial Information for the Investments in Joint Ventures (in thousands): As of 12/31/2015 9/30/2015 Cash $ 92 61 Cash held in escrow 644 3,420 Amortizable Debt Costs 1,490 1,593 Investments in real estate, net 62,664 50,232 Total Assets $ 64,890 55,306 Other Liabilities $ 7,432 6,969 Long-term Debt 25,929 17,000 Capital – FRP 19,168 19,010 Capital - Third Parties 12,361 12,327 Total Liabilities and Capital $ 64,890 55,306

Spin-off

Spin-off	3 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
Spin-off	(13) Spin-off. The results of operations associated with discontinued operations for the three month periods ended December 31, 2015 and 2014 were as follows (in thousands): Three Months ended December 31, 2015 2014 Revenue $ — 31,717 Cost of operations — 28,965 Operating profit — 2,752 Interest expense — (26 ) Income before income taxes — 2,726 Provision for income taxes — 1,063 Income from discontinued operations $ — 1,663 The following table presents the carrying value of the major categories of assets and liabilities of discontinued operations reflected on the Company’s consolidated balance sheets at September 30, 2014: Property and equipment, net $ 42,174 Accounts receivable, net 7,119 Deferred costs 11,809 Other assets 32 Assets of discontinued operation $ 61,134 Line of credit $ 7,282 Accounts payable and accrued liabilities 11,489 Deferred compensation 717 Deferred income taxes 8,924 Liabilities of discontinued operation $ 28,412

Port Capital Property Acquisiti

Port Capital Property Acquisition	3 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Port Capital Property Acquisition	(14) Port Capital Property Acquisition. The Company will recognize the amortization related to the Port Capital Drive property intangible assets according to the following schedule (in thousands): In-place Leases Initial Values $ 1,126 Annual Amortization: 2016 $ 104 2017 114 2018 114 2019 114 2020 114 2021 114 2022 113 2023 113 2024 113 2025 113

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Business segments	Three Months ended December 31, 2015 2014 Revenues: Asset management $ 6,915 6,757 Mining royalty lands 1,659 1,344 Land development and construction 249 201 $ 8,823 8,302 Operating profit: Before corporate expenses: Asset management $ 3,388 3,386 Mining royalty lands 1,525 1,200 Land development and construction 2,419 (528 ) Corporate expenses: Allocated to asset management (378 ) (300 ) Allocated to mining royalty (55 ) (318 ) Allocated to land development and construction (299 ) (176 ) Unallocated to discontinued operations — (919 ) (732 ) (1,713 ) $ 6,600 2,345 Interest expense: Asset management $ 481 445 Depreciation, depletion and amortization: Asset management $ 1,798 1,786 Mining royalty lands 34 31 Land development and construction 64 66 $ 1,896 1,883 Capital expenditures: Asset management 9,237 905 Mining royalty lands — — Land development and construction 1,302 833 $ 10,539 1,738 December 30, September 30, Identifiable net assets 2015 2015 Asset management $ 159,216 151,023 Mining royalty lands 39,298 39,300 Land development and construction 56,916 60,682 Cash items 1,174 419 Unallocated corporate assets 505 1,054 $ 257,109 252,478

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Long-term debt	December 31, September 30, 2015 2015 Revolving credit (uncollateralized) $ 2,928 8,494 5.6% to 7.9% mortgage notes due in installments through 2027 39,171 40,191 42,099 48,685 Less portion due within one year 4,247 4,180 $ 37,852 44,505

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Earnings per share computations	Three Months ended December 31, 2015 2014 Weighted average common shares outstanding during the period – shares used for basic earnings per common share 9,802 9,711 Common shares issuable under share based payment plans which are potentially dilutive 51 60 Common shares used for diluted earnings per common share 9,853 9,771 Income from continuing operations $ 7,473 1,131 Discontinued operations — 1,663 Net income $ 7,473 2,794 Basic earnings per common share: Income from continuing operations $ 0.76 0.12 Discontinued operations 0.00 0.17 Net income $ 0.76 0.29 Diluted earnings per common share: Income from continuing operations $ 0.76 0.12 Discontinued operations 0.00 0.17 Net income $ 0.76 0.29

Stock-Based Compensation Plans

Stock-Based Compensation Plans (Tables)	3 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Compensation Expense	Three Months ended December 31, 2015 2014 Stock option grants $ 72 172 Annual director stock award — — $ 72 172
Summary of Stock Activity	Weighted Weighted Weighted Number Average Average Average of Exercise Remaining Grant Date Options Shares Price Term (yrs) Fair Value Outstanding at October 1, 2015 305,750 $ 21.90 5.9 $ 2,738 Granted 21,540 $ 31.15 $ 272 Exercised (48,830 ) $ 18.43 $ (362 ) Outstanding at December 31, 2015 278,460 $ 23.22 6.2 $ 2,648 Exercisable at December 31, 2015 200,613 $ 22.00 5.4 $ 1,729 Vested during three months ended December 31, 2015 35,596 $ 341

Investment in Riverfront and 24

Investment in Riverfront and Brooksville Joint Ventures (Tables)	3 Months Ended
	Dec. 31, 2015
Equity Method Investments and Joint Ventures [Abstract]
Investments in Joint Ventures	The Company's Total Assets Net Loss Share of Net Total of the of the Loss of the Ownership Investment Partnership Partnership Partnership (Unaudited) (Unaudited) As of December 31, 2015 Riverfront Holdings I, LLC 76.91 % $ 11,635 $ 50,536 $ (53 ) $ (45 ) Brooksville Quarry, LLC 50.00 % 7,533 14,354 (18 ) (9 ) Total $ 19,168 $ 64,890 $ (71 ) $ (54 ) As of September 30, 2015 Riverfront Holdings I, LLC 76.91 % $ 11,517 $ 40,970 $ (108 ) $ (105 ) Brooksville Quarry, LLC 50.00 % 7,493 14,336 (80 ) (40 ) Total 19,010 $ 55,306 $ (188 ) $ (145 )
Unaudited Financial Information for the Investments in Joint Ventures	As of 12/31/2015 9/30/2015 Cash $ 92 61 Cash held in escrow 644 3,420 Amortizable Debt Costs 1,490 1,593 Investments in real estate, net 62,664 50,232 Total Assets $ 64,890 55,306 Other Liabilities $ 7,432 6,969 Long-term Debt 25,929 17,000 Capital – FRP 19,168 19,010 Capital - Third Parties 12,361 12,327 Total Liabilities and Capital $ 64,890 55,306

Spin-off (Tables)

Spin-off (Tables)	3 Months Ended
	Dec. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Discontinued operations results of operations	Three Months ended December 31, 2015 2014 Revenue $ — 31,717 Cost of operations — 28,965 Operating profit — 2,752 Interest expense — (26 ) Income before income taxes — 2,726 Provision for income taxes — 1,063 Income from discontinued operations $ — 1,663
Discontinued operations balance sheet	September 30, 2014 Property and equipment, net $ 42,174 Accounts receivable, net 7,119 Deferred costs 11,809 Other assets 32 Assets of discontinued operation $ 61,134 Line of credit $ 7,282 Accounts payable and accrued liabilities 11,489 Deferred compensation 717 Deferred income taxes 8,924 Liabilities of discontinued operation $ 28,412

Port Capital Property Acquisi26

Port Capital Property Acquisition (Tables)	3 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Port Capital Drive intangible asset amortization schedule	In-place Leases Initial Values $ 1,126 Annual Amortization: 2016 $ 104 2017 114 2018 114 2019 114 2020 114 2021 114 2022 113 2023 113 2024 113 2025 113

Business Segments - Business se

Business Segments - Business segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenues	$ 8,823	$ 8,302
Operating profit	6,600	2,345
Corporate expenses unallocated to discontinued operations	0	(919)
Interest expense	481	445
Depreciation, depletion and amortization	1,959	1,865
Cash items	1,174		$ 419
Total identifiable net assets	257,109		252,478
Asset Management
Segment Reporting Information [Line Items]
Revenues	6,915	6,757
Operating profit before corporate expenses	3,388	3,386
Allocated corporate expenses	(378)	(300)
Interest expense	481	445
Capital expenditures	9,237	905
Depreciation, depletion and amortization	1,798	1,786
Total identifiable net assets	159,216		151,023
Mining royalty lands
Segment Reporting Information [Line Items]
Revenues	1,659	1,344
Operating profit before corporate expenses	1,525	1,200
Allocated corporate expenses	(55)	(318)
Capital expenditures	0	0
Depreciation, depletion and amortization	34	31
Total identifiable net assets	39,298		39,300
Land Development and Construction
Segment Reporting Information [Line Items]
Revenues	249	201
Operating profit before corporate expenses	2,419	(528)
Allocated corporate expenses	(299)	(176)
Capital expenditures	1,302	833
Depreciation, depletion and amortization	64	66
Total identifiable net assets	56,916		60,682
Corporate
Segment Reporting Information [Line Items]
Total identifiable net assets	505		$ 1,054
Total Segments
Segment Reporting Information [Line Items]
Revenues	8,823	8,302
Operating profit	6,600	2,345
Allocated corporate expenses	(732)	(1,713)
Corporate expenses unallocated to discontinued operations	0	(919)
Interest expense	481	445
Capital expenditures	10,539	1,738
Depreciation, depletion and amortization	$ 1,896	$ 1,883

Long-term debt (Details)

Long-term debt (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Debt Disclosure [Abstract]
Revolving credit	$ 2,928	$ 8,494
5.6% to 7.9% mortgage notes due in installments through 2027	39,171	40,191
Total debt	42,099	48,685
Less portion due within one year	4,247	4,180
Long-term debt	$ 37,852	$ 44,505

Earnings per share (Details)

Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Weighted average common shares outstanding during the period - shares used for basic earnings per common share	9,802	9,711
Common shares issuable under share based payment plans which are potentially dilutive	51	60
Common shares used for diluted earnings per common share	9,853	9,771
Income from continuing operations	$ 7,473	$ 1,131
Discontinued operations	0	1,663
Net income	$ 7,473	$ 2,794
Basic earnings per common share
Income from continuing operations	$ 0.76	$ 0.12
Discontinued operations	0	0.17
Net income	0.76	0.29
Diluted earnings per common share
Income from continuing operations	0.76	0.12
Discontinued operations	0	0.17
Net income	$ 0.76	$ 0.29

Summary of Stock Activity (Deta

Summary of Stock Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015USD ($)Years$ / sharesshares	Sep. 30, 2015USD ($)Years$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options outstanding | shares	278,460	305,750
Options granted | shares	21,540
Options exercised | shares	(48,830)
Options outstanding weighted average exercise price | $ / shares	$ 23.22	$ 21.90
Options outstanding weighted average exercise price - Granted | $ / shares	31.15
Options outstanding weighted average exercise price - Exercised | $ / shares	$ 18.43
Options outstanding weighted average remaining term | Years	6.2	5.9
Options outstanding weighted average grant date fair value | $	$ 2,648	$ 2,738
Options granted weighted average grant date fair value | $	272
Options exercised weighted average grant date fair value | $	$ (362)
Options exercisable at December 31, 2015 | shares	200,613
Options exerciseable weighted average exercise price | $ / shares	$ 22
Options exerciseable weighted average remaining term | Years	5.4
Options exerciseable weighted average grant date fair value | $	$ 1,729
Options vested during three months ended December 31, 2015 | shares	35,596
Options vested weighted average grant date fair value | $	$ 341

Stock Compensation Expense (Det

Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock option grants	$ 72	$ 172
Annual director stock award	0	0
Stock based compensation	$ 72	$ 172

Investment in Riverfront and 32

Investment in Riverfront and Brooksville Joint Ventures (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Total Investment	$ 19,168		$ 19,010
Total Assets of the Partnership	64,890		55,306
Net Loss of the Partnership	(71)		(188)
Company's share of Net Loss of the Partnership	$ (54)	$ (30)	$ (145)
Riverfront Holdings I, LLC
Ownership percent	76.91%		76.91%
Total Investment	$ 11,635		$ 11,517
Total Assets of the Partnership	50,536		40,970
Net Loss of the Partnership	(53)		(108)
Company's share of Net Loss of the Partnership	$ (45)		$ (105)
Brooksville Quarry, LLC
Ownership percent	50.00%		50.00%
Total Investment	$ 7,533		$ 7,493
Total Assets of the Partnership	14,354		14,336
Net Loss of the Partnership	(18)		(80)
Company's share of Net Loss of the Partnership	$ (9)		$ (40)

Summarized Financial Informatio

Summarized Financial Information for Investments in Joint Ventures (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Summarized Financial Information For Investments In Joint Ventures Details
Cash	$ 92	$ 61
Cash held in escrow	644	3,420
Amortizable Debt costs	1,490	1,593
Investments in real estate, net	62,664	50,232
Total Assets	64,890	55,306
Other liabilities	7,432	6,969
Long-term debt	25,929	17,000
Capital - FRP	19,168	19,010
Capital - Third parties	12,361	12,327
Total liabilities and capital	$ 64,890	$ 55,306

Discontinued operations - Disco

Discontinued operations - Discontinued operations results of operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Revenue	$ 8,823	$ 8,302
Cost of operations	2,223	5,957
Interest expense	(481)	(445)
Provision for income taxes	4,879	722
Income from discontinued operations	0	1,663
Patriot Transportation
Revenue	0	31,717
Cost of operations	0	28,965
Operating profit	0	2,752
Interest expense	0	(26)
Income before income taxes	0	2,726
Provision for income taxes	0	1,063
Income from discontinued operations	$ 0	$ 1,663

Discontinued operations - Dis35

Discontinued operations - Discontinued operations balance sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015	Sep. 30, 2014
Property and equipment, net	$ 215,939	$ 207,205
Deferred costs	7,914	7,449
Other assets	175	275
Line of credit	2,928	8,494
Accounts payable and accrued liabilities	1,809	3,456
Deferred compensation	$ 1,444	$ 1,400
Patriot Transportation
Property and equipment, net			$ 42,174
Accounts receivable, net			7,119
Deferred costs			11,809
Other assets			32
Assets of discontinued operation			61,134
Line of credit			7,282
Accounts payable and accrued liabilities			11,489
Deferred compensation			717
Deferred income taxes			8,924
Liabilities of discontinued operation			$ 28,412

Port Capital Property Acquisi36

Port Capital Property Acquisition - Port Capital Drive intangible asset amortization schedule (Details) - Port Capital $ in Thousands	Dec. 31, 2015USD ($)
Initial Values	$ 1,126
2,016	104
2,017	114
2,018	114
2,019	114
2,020	114
2,021	114
2,022	113
2,023	113
2,024	113
2,025	$ 113

Basis of Presentation (Details

Basis of Presentation (Details Narrative)	3 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Brooksville joint venture owned	50.00%

Recently Issued Accounting St38

Recently Issued Accounting Standards (Details Narrative) $ in Thousands	Dec. 31, 2015USD ($)
Recently Issued Accounting Standards Details Narrative
Reclass from deferred costs to long-term deferred tax liability	$ 143

Business Segments (Details Narr

Business Segments (Details Narrative)	3 Months Ended
	Dec. 31, 2015aSegments
Reportable business segments | Segments	3
Mining royalty lands
Mining royalty lands acres	15,000
Brooksville Quarry, LLC
Mining royalty lands acres	4,280

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions [Abstract]
Charges/allocation related to Transition Services Agreement with Patriot	$ 386	$ 794
Charges/allocations related to discontinued operations	$ 0	$ 919

Long-Term debt (Details Narrati

Long-Term debt (Details Narrative) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2015USD ($)	Jan. 30, 2015USD ($)
Lowest interest rate on mortgage notes	5.60%		5.60%
Highest interest rate on mortgage notes	7.90%		7.90%
Carrying amount of mortgage notes payable	$ 39,171		$ 40,191
Fair value of mortgage notes payable	42,325
Capitalized interest	$ 222	$ 321
First Tennessee bank Term Loan
Credit Agreement term years	10
Term loan facility	$ 20,000
Wells Fargo Bank, N.A.
Credit Agreement term years	5
Revolving Credit Agreement	$ 20,000			$ 55,000
Sublimit for standby letters of credit	10,000
Letters of credit issued	2,377
Borrowed under the revolver	2,837			$ 10,483
Available for borrowing	14,786
Tangible net worth covenant	110,000
Available to pay dividends or repurchase stock	$ 79,000
First Tennessee Bank
Credit Agreement term years	5
Revolving Credit Agreement	$ 20,000
Mortgage backed financing	$ 40,000
Revolver conversion to term loan	24 month window
Borrowed under the revolver	$ 91

Earnings per Share (Details Nar

Earnings per Share (Details Narrative) - shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Anti-dilutive shares	72,090	69,175

Stock-Based Compensation Plan43

Stock-Based Compensation Plans (Details Narrative) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 31, 2015USD ($)Years$ / sharesshares	Jan. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares available for future issuance | shares	397,630
FRP options replacement		75.14%
Patriot options replacement		24.86%
Aggregate intrinsic value of exercisable in-the-money options	$ 2,396
Aggregate intrinsic value of outstanding in-the-money options	$ 2,985
Market close price | $ / shares	$ 33.94
Realized tax benefit from options exercised	$ 270
Total unrecognized compensation cost of options granted but not yet vested	$ 417
Weighted average period for compensation to be recognized | Years	4
Gains realized by option holders	$ 698

Contingent Liabilities (Details

Contingent Liabilities (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2012
Contingent Liabilities Details Narrative
Cap on environment financial responsibility	$ 1,871
Environmental remediation expense			$ 1,771
Total cost of remediation	1,900
Environmental remediation recovery	$ 3,000	$ 0

Concentrations (Details Narrati

Concentrations (Details Narrative) $ in Thousands	3 Months Ended
	Dec. 31, 2015USD ($)
Asset Management Top Customer
Customer revenue concentration	12.00%
Mining Top Customer
Customer revenue concentration	13.10%
Accounts receivable concentration	$ 87

Fair Value Measurements (Detail

Fair Value Measurements (Details Narrative) $ in Thousands	Dec. 31, 2015USD ($)
Fair Value Disclosures [Abstract]
Assets measured at fair value on a recurring basis	$ 0
Liabilities measured at fair value on a recurring basis	0
Assets measured at fair value on a non-recurring basis	0
Liabilities measured at fair value on a non-recurring basis	$ 0

Unusual or Infrequent Items I47

Unusual or Infrequent Items Impacting Quarterly Results (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Spin off related costs		$ 450
Gain on investment land sold	$ 6,286	(17)
Environmental remediation recovery	3,000	$ 0
Windlass Run Phase 2
Gain on investment land sold	$ 6,277

Investment in Riverfront and 48

Investment in Riverfront and Brooksville Joint Ventures (Details Narrative) $ in Thousands	3 Months Ended		12 Months Ended
	Dec. 31, 2015USD ($)aft²	Dec. 31, 2014USD ($)	Sep. 30, 2015USD ($)	Aug. 08, 2014USD ($)
Capital contributions made	$ 214	$ 135
Company's share of the loss of the joint venture	(54)	$ (30)	$ (145)
Joint Venture consolidated retained earnings	423		$ 389
Riverfront Holdings I, LLC
Value of land contributed	13,500
Cash contributed	$ 4,866
Joint venture percentage stake	76.91%		76.91%
Company's share of the loss of the joint venture	$ (45)		$ (105)
Brooksville Quarry, LLC
Land acreage | a	4,300
Joint venture percentage stake	50.00%		50.00%
FRP land contribution previously leased to Vulcan | a	3,443
Book value of land contribution	$ 2,548
FRP additional contribution for land	$ 3,018
Additional land acquired | a	288
Vulcan land contribution | a	553
Mandatory capital contribution obligation	$ 2,430
Capital contributions made	2,397
Company's share of the loss of the joint venture	$ (9)		$ (40)
Riverfront Holdings I, LLC
Square feet | ft²	300,000
Retail square feet | ft²	18,000
Area of land to develop | a	2.1
Land acreage | a	5.82
Joint venture percentage stake	76.91%
MRP minimum capital contribution	$ 5,553
EB5 Secondary financing				$ 17,000
Nonrecourse construction loan				$ 65,000
Book value of land contribution	$ 6,165

Port Capital Property Acquisi49

Port Capital Property Acquisition (Details Narrative) - Port Capital $ in Thousands	Oct. 19, 2015USD ($)a
Approximate purchase price | $	$ 9,900
Number of buildings	1
Land acreage	6.39
Square feet	91,218
Mezzanine space square feet	29,558