Earnings call transcript Q1 2023

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Operator

Good day, everyone, and welcome to today's earnings conference call. At this time all participants are in a listen-only mode. [Operator Instructions]. Please note, this call may be recorded.

It is now my pleasure to turn today's program over to John Baker III. begin. please Sir,

John Baker III

and John Chief of I'm David Chief Officer III, Counsel; Vice our Financial Jr., Vice Executive our Good and our Officer; President Holdings. Baker and And Treasurer General Chairman II, Baker FRP President; Koppenstein, are John with and Milton, our Executive our morning. John John III, CEO; Accounting me President. deVilliers, deVilliers today David

nature, materially future subject statements any this which are, on uncertainties that by SEC in the cause forward-looking events their indicated are risks As results a reminder, our and such filings. could to relate call These uncertainties from and and to risks in listed statements. actual to those differ

except events, by of We a result new as or as have obligation forward-looking imposed revise no law, future to or information. update statements any

refer and assess Pages measure the viewed for on earnings release. operating in meaningful our identify financial performance. to financial segment measures. To To presented call non-GAAP within promulgated operating Accounting not Measures non-GAAP or Commission. and and with Principles, financial GAAP titled of financial Generally operations income, is meaning Exchange presents accordance Financial X financial by of net this This and trends please Accepted FRP in as, measures to in most certain NOI. analyze this Regulation monitor, measure G is to income, should its referenced to and non-GAAP and Securities the supplement substitute FRP measure Non-GAAP uses net the the financial not, results its The be XX a recent GAAP reconcile

as a income for in $X.XX per in increase well of $XXX,XXX first quarter equity $XXX,XXX, the property sale $X.XX to Florida. share joint the of Net year from was period first for $X.XX share $XXX,XXX, two the from Now projects an for previous by last was the first our primarily compared financial from lease-up same year. quarter million the venture per quarter. year or last of in versus or the excess impacted Brooksville, as Net loss and highlights in gain income

quarter segments XX.X%. same was million for all last the an $X.XX in period First of year NOI rata $X,XXX,XXX increase pro for versus

will with detail will but operational briefly greater David operations on his highlights. touch remarks, and a in depth mention I few

Asset management and to the year this year. over compared QX increased NOI to Total XX.X% revenue first XXXX. in mining increased by last the revenues quarter the XX.X% and NOI XX% of first quarter quarter last compared increased revenues year, segment first in by XX.X% the

any row, in mining segment For is revenue the the XX-month has first any quarter second in million $XX million quarter has revenue, and the This for $X total revenue first in highest it time a cleared the in period. surpassed royalties its quarter. experienced ever trailing

turn I to detail. if more deVilliers, over David? walk could our Now Jr. in David to segments things you through

David deVilliers

you, Thank to those the morning on call. John, and good

business our analyzing like the report perspective As for in with an quarters, results are I've of few different silos, the you the important slightly a dedicated which from standpoint. segments operational I'd to on company. in company done provide past the We

we reported. operationally, as segments that overlap the using are business However, difficult to and follow have synergies

offer the from let departing employing look GAAP FRP, day-to-day and So in a me following.

business legacy has The our warehouse we since portfolio. mid-XXXX is the of our company's approach and this four-pronged, when core been liquidated

properties commercial and platform. in-house land developed, and our FRP. These XXX% are owned development industrial, includes First, management asset managed by

on owner land the the ventures, of course, perform which, is the development of our principal the is as third-party activities. in where our mining third And with royalties. last where for joint but the there's operations. and ventures, FRP conjunction third-party partners projects entitlements, major implies, and operating construction name are segment, residential developed lending day-to-day Three parties to relies respected Then lion's we seasoned share capital and source the

occupancy renewals buildings the lift delivery more to produced or management, $XXX,XXX asset QX Cranberry, our NOI in a 'XX rent platform, period three NOI on NOI year, at growth double industrial at to our have as of of for than Hollander in-house last healthy with 'XX Relative and this well Business as over QX Park, $XXX,XXX.

As our fully are square and in buildings month, occupied. XXX,XXX of last Hollander three leased are totaling feet

in Run the square capping five of park foot occupancy full of multi-tenanted warehouse XXXX, fully remains Park, Maryland, renovated building a Aberdeen, all straight first this Cranberry XXX,XXX quarters Business in quarter at location. occupied

on Park, Our and entitlement to design offset on annexation a in costs. We leases begin the we'll the XX-acre product. warehouse industrial land with site storage land queue. Existing trailers is XXX,XXX and projects Aberdeen, square create of the to feet soon up three to tract completed of our in adjacent of carrying pipeline strong, Business for Cranberry helped building

We hopeful XXXX. in are we there can be construction in

square of XXX,XXX break In a distribution Redevelopment we favorable corridor, that here XXXX. ultimately as industrial conditions, Northeast support to land Maryland, and, as will early expect activities are the we ongoing acres ground along own center. foot XXX pending I-XX market

of dynamics, a Finally, building warehouse. could too the this begin issued Depending from not process, expect we moving parcel other shortly distant this foot to construction County, the our and for in market project XXX,XXX our XX-acre final assets permit as entitlement early summer. on in square is the through Perryman Harford as industrial section on Aberdeen, Maryland, be

assets Hollander the add of operation will Cranberry delivered feet at and of million X.XX over these in development Run, to foot. million X.X recently Park at land Hollander, already the over projects, our square total industrial square when warehouse that, Business platform warehouse plus product to will additional Completion three added

revenues in our last for royalty and royalty segment, Relative of versus total period the mining to saw division mining year. our same and $X,XXX,XXX quarter $X,XXX,XXX the

XX% opening and in of over quarter increase period As any the segment mining was revenue the this same NOI year. $X,XXX,XXX, remarks, the record a is for in second John his an last echoed in royalty for quarter row.

both with an it three projects minimum our of and segments development XX Moving on MRP, stabilized business distinct occupancy we to of a XX% days. Woodfield, level and initial development ventures. to partners, difference The properties. St. our being relates John Currently, third party for and stabilized operate joint between as

quarter-end, seven includes JV XXX,XXX X-story office X,XXX feet retail, platform XX,XXX of mixed-use have of feet and totaling all projects square our construction. of apartments, square As which completed of

all In remain located our Dock and end are MRP MRP projects Realty Realty and Phase partners with fully occupancies both and Investment recently, in where D.C., recent XX These XX.X%, retail XX.X% our our and leased. Washington, Bryant our Stuart Maren, at partner. where completion, quarter's venture D.C., Four Company, Washington, with include healthy, of XX, neighboring include X, joint most projects, Maren, Dock respectively, most Verge. is

the in Our occupied, spoken for at quarter's first final and the leased received and of XX% occupancy quarter certificate its newest nearly project in was the with end. half, or XX% District, XX% retail Verge, of

multi-building, Coda, Our Street, outdoor-use and projects, a a mixed-use on Red unique DC a well as Bryant movie project located is called entertainment contains final the two to theater Northeast Chase Bryant in residential transit-oriented metrobar. fully flexible a concept line anchored project building as leased and D.C. Street Washington, retail

components United Market, hall, of its X about were end food De President Street the feet, were last occupied, its in the units XX% Bryant A visit XX.X% first quarter, tenants, week and including and which XX.X% the the square opened occupies by XX,XXX residential President At a retail Bryant Street's in celebration and March occupied. success first early of of and Vice Mayo. with States has seen Cinco leased

Moving on to South Carolina.

XXX the sits with opened in Our great on are its which quarter. success. and XX% recreation seeing of a popular occupied Greenville, Riverside, as the Greenville of two the of lease Development Swamp corner for projects apartments Woodfield River August Trail, end 'XX in Rabbit first was in

placed the and Sox project, end of a quarter plaza street by and opening is the Field, of its home is shares occupied, component fourth fully year. leased the and was as located XX% fourth was an mixed-use leased this service retail targeting which downtown Boston XX% during of and with the quarter with the of quarter of and baseball team. affiliate another Jackson in 'XX, Jackson, Fluor XXX Greenville Drive, stadium Red XXX

John's of With former The development last developing third-party XX.X% leased up that be Middle with division Year. joint flex makes St. a Maryland John we Developer XX,XXX in includes and was St. XX,XXX feet occupied. property, and office to that undertaken This project National the XX% our venture Run single-story are of continues square River, Windlass feet and square project in of retail. pioneer

seven So was projects XX% last of increase. a same first year. joint these quarter $X,XXX,XXX to in $X,XXX,XXX summarize, ventures, third-party NOI the relative to for 'XX ownership for the versus quarter XX.X% FRP's our That's share

of capital and single-family where towards our to last Lastly, investors stool national horizontal of and future projects development our sale provide segment. operating ultimately, This we and, lending entitlement homebuilders. the working sales is residential a program leg

is with this projects County, first a of and determines Ridge split The a the current of $XX.X charged return investment The project a of Amber of final preferred includes million. a in two XX%, rate PG XX% total interest which of minimum profit-induced to waterfall our commitment Maryland, proceeds.

quarter, end the been to have final with lots year. by as of down be of Now, the this end XXX the down, XX the of expected taken taken lots

lending Maryland. Aberdeen, current residential is called XXX-lot, investor Our Homes, project development Presbyterian other XXX-acre

and single-family will we homebuilder similar and lots, Ridge. $XX.X include dwellings. under purchase QX be have which contract national under taken committed Amber We million the expect construction townhomes to first is has to down to Horizontal 'XX. A of funding XXX begun, in in terms all lots XXX

successes to that been efforts building changing able we've in do and capitalize terms environment, forward the adapt and to the In our on We a finding our surpass unique position sheet in upon to consistent very difficult look been We balance of new talented strength our in able company constantly the of so of pleased closing, to flourished earnings market team. thanks conditions. to are marketplace. our itself to the has ways continue and we to and

back will turn Thank you, and to John. it I

John Baker III

David. open you, point, happy are to it At this you to may Thank questions up any have. we

Operator

time queue questions [Operator just at there one -- the we pop-up with in had Instructions] from Oppenheimer. Farrell no are this And Stephen

open. Your line is

Stephen Farrell

homes, Just at questions Did buying rent? sort similar maybe a How we well. least, back York you as in increase see given had in in of listings big in few banking a then quick to also saw pushing we City, a apartment the people and crisis morning. D.C., Good dynamic here. New March, a In rents, increase continuing are huge you? and

David deVilliers

can a and strong some renewals one. you I and in rates at have increases occupancies pretty in pretty we both healthy see, as Carolina. the area been crack in that our our D.C. Washington, seen also Greenville, South have also And trade-ins. for take Basically, can

rates as up a only projects to selling So these going of them some obviously, but difficult making have, not the little it's relates with them. interest the way they it building

apartments. the out helps it how see to interesting be will it So

John Baker II

for think were so to payment were obviously, going where low home Steve, rates even pushing high. only I prices like late XXs home in just up people purchase was, people Yes, and that The when were house think, XXs it that. I payments interest their a prices down interest afford. and because rates seems staying of kind were low, hard were and exacerbate off And they interest

So our in with on it which available of seems capitalize houses, supply lack we're like a there's lending total ventures. hoping to

I don't are think boost homes. to rates yes, people rising So a buying interest

Stephen Farrell

seen it update? Thank for rents there. there? that about you. Maran, And a last the sort know less. pickup QX, an XX% you have the and talked the slow running And Verge seasonality, bit you on at of versus Do Have it's good. in were call rents That’s you I that a where was

David deVilliers

as far is rent the probably well We're square receiving Maren there. per occupied Maren As pretty highest goes, foot.

day certainly what of that strong less Verge it's we're Maran, pop some that we're actually like a that gel. because than Of water. seeing think our a end on activity they'll a concrete to it's all. seeing that's not us two party, are. healthy course, the kind But bit. tours to rents not Obviously, in We we and the a coming some up starting is the are plan visits, just leasing think of is starting We're at little next some those pretty now continue strong here the helping But you the pretty reduce seeing into way. the dock to up got on that's see operations water, see months. the to starting be going rents and I to closing plant third leasing by of that's traffic, we've so

Stephen Farrell

the the And kind on the last call, potentially partnership of you you the starting project in have environment? Steuart mentioned in of I on also starting QX. Do current thoughts that any Phase

David deVilliers

for shovel-ready happen, to to strong the process, a for call appropriate quarter what property we're beginning look and ready, third development. the but that to pretty not due that's sometime take of which the some probably that getting the the there's we'll obviously, we Well, And say headwinds still going includes going at diligence the quarter. be fourth the able at modeling end that project of through

late start building the much year. the cost the the too the would of too just it pushed still of I economic winds the kind we the being in late in that because causes say weather, fall probably right may timing quarter. to and market and want the all that actions We're But off process of a don't looking certainly not But too that certainly the of get dictate kind if thing greatest at in of necessarily because even started of extra that. kind does gets of

to be after would Hard So this point. 'XX. quarter at to I would tell it even next quarter. first quarter say news More closer of or the maybe probably second the

John Baker II

Yes, we the planning know our land, we either the Stephen, money entitlement, move project, is possible of ways. the then all is to optionality the do go into which then that of we're deal X kind and I and wants X reinvest for they remember you don't and the have everybody and if best do the it but first we the diligence, good our can the of Steuarts, and And go. Steuarts to ahead, due pay way, with we

in And they're to case, obligated go And and want the it then we do to don't. and is we they out sell go us ourselves. that the land, and second option

for and move planning due that Third go want to don't and back option our on And case, is efforts, do. they we forward and their pay diligence they in they us a fourth looking we the and then just we we market option needed decision, And that like is is make don't sit tight. the the way. time the at all way to

really the option. a tight, units, rates is stay rents its lot If feel somewhere a between a feel to And by costs just closer first I to XXX this about probably option virtue they're think fourth look I building, about and then expensive, better it. Maren down, the down, probably going go Verge everything terms it's of than we'll because gigantic probably or think we're of like lot If better go location. to and sit is in interest flat Construction it. stays the over we'll we'll it

first And it really a we're to and say opportunity we're can give successful, to going we a just going to flip it and be not And and deal, important is coin it big hope is a in it the works to every out. partnership. this succeed. step want This

Stephen Farrell

I'll you. That’s here. And else I guess, no going keep Thank a if on, is color. one good

in industrial And moratorium With think developments? on forward? this the Candy, Harford you restrictions will around affect more there do in future Baltimore, moving be and will

David deVilliers

when the started days. surprise a a all on it then everyone its reduced XXX to the industrial to moratorium it's through right development county way commission, And in a and placed somewhat. Well, executive it it for was of now, work bit came

the grandfathered project, grandfathered For our example, building my already so we are site approval, we received mentioned square XXX,XXX what remarks, because that was I that I in plan call foot in. had opening that's

here permit we're a go to said, So as and, we're building shortly. to get looking I allowed forward

out, XX now is Market a is how world, at to we're part conditions, we're moratorium Vacancy see industrial days just with what to and extend to should they're very the everyone's I for be. taking another doing this properties still going not and figure market it. look through. of things what what that think big that's And studies are. zoned properties XX. these with ability now in The so be might buildings, trying right it for low the And

to the more. some out the going have we because whole fact find permit. we're competition lot we'll last idea think that we're not of of one I new But to like a a get the

John Baker II

of it county, won't an our in things at pipeline And properties as issue stand. are least David, none in with other that so currently our those, be

David deVilliers

correct. much pretty That's

Stephen Farrell

one, signed, be acres? XXX,XXX, isn't which one the subject had that there And the well, the XX to is Would other, it? you but

David deVilliers

Aberdeen, into the other that of projects. Yes. Crouse annexed town That's out the property. which the That's been from separate

time I of we're of again, at probably So on moratorium the was it at. and We in the was part point. another we're lot really not not that part property that And annexing Part of to this for stayed, move a forward property property town is ready least of Aberdeen, of at spent that it. year.

it process, in property. in, that have better done entire we on so as ways get relates kind to us that a of we a improvement parcel to the So the position go still annexed to the but entitlements puts

So lease which we property there planning, until probably it really weren't initial that thing of a pretty about our investment us moratorium; storage, out this of 'XX. gives while waiting. to anything healthy The good starting quote we returns trailer for even on we're regardless is lot

Stephen Farrell

the have on, for last what just for question. dollar spend rest ballpark, activities you'll just Do development updated the of 'XX? on you And figure an value a

John Baker II

Think we CapEx the $XX is million. projected number our in have XX-Q that

Operator

you. Thank right. we Instructions] this questions have further And at All time. no [Operator

John Baker II

you. want I work and everybody their we're get in building back Well, interest going to and to to the shareholder right. All company, keep thank value. for Thank

FRP (FRPH) 11 May 232023 Q1 Earnings call transcript