Earnings call transcript Q2 2023

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Operator

Good day, everyone, and welcome to today’s FRP Holdings Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, you will have an opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note, this call is being recorded and that I will be standing by should you need any assistance.

It is now my pleasure to turn today’s program over to John Baker. ahead. go please Sir,

John Baker

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

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

highlights $XXX,XXX period was or for per in or from $X.XX financial per same second the for income quarter versus quarter. $XXX,XXX year. the the $X.XX share share last second Now Net our

income was quarter as lease-up, of costs and XXXX the an X interest equity by $X,XXX,XXX increase due well of compared ventures in of year of offset $X,XXX,XXX. joint in to primarily expense interest recruiting in an and previous company increase loss when new an impacted by expense $XXX,XXX management from increase of to Second in as in by hires $XXX,XXX, an increase projects

NOI all $X,XXX,XXX in period X the the was last an XX.X%. versus pro increase Net the months segments per for was for income $X,XXX,XXX of quarter for in year of share period first per First $X.XX rata $X.XX last or share $X,XXX,XXX versus XXXX year. same same or $X,XXX,XXX

as The loss first equity impacted to XXXX of six months in lease we were million ventures $XXX,XXX, an income company The an same and.XXX compared an in of period and XXXX management increase the up in – joint of $X.X in of $XXX,XXX, an expense Jackson, Verge expense increase interest offset indirect an of $X,XXX,XXX. increase interest by in of interest increase in interest by

$XXX,XXX did X impacted property we gain which repeat a first XXXX X sales, positively in also by not months were of the XXXX. first The of from months

and all profit quarter pro XX.X%. by experiencing are second this for quarter XXXX, revenue the profit operating by the year-to-date. XX.X%, Revenue, NOI NOI rata to and Compared grew operating and of XX.X% we strong by growth

year, net last by and and to been respectively, these XX.X%, income compared XX.X%, months X yet metrics less first or the For more grew flat. has XX.X%

This is situation ventures financially development on to on literally count income transition and doing fortunate is of during it that understands impact The net negative production. of these business. products patient a stabilization ourselves was quite their the we cost loss and have but product subs, the into we while shareholder base very company situation a when are have not and equity lease that previous We and situation lease-up the and and the is the highest joint our new income. at

now report. David? his David for turn call the I’ll over to

David deVilliers

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

you with report on important our designated provide the for which analyzing done company the an like standpoint. of in the results last in quarters, a company. As silos, segments from the We have perspective I business few are to operational I’d

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

day-to-day real FRP, following. our estate which a me call offer the at let look employing operations, we So

four-pronged Our liquidated real estate that legacy been mid-XXXX approach since business portfolio. warehouse of operations our has core when consist of a programming we the our

owner FRP; relies in-house, are asset and which parties, we and three, FRP These royalties; share third-party same two, segment, which the development third-party joint and developed, which XXX% the respected where industrial, One, ventures, reported capital entitlements, managed platform. as business four, our the commercial are operating and for happens seasoned of perform and developed is partners and our properties ventures, to project lion’s principal implies, development to as be land management construction owned land includes by name a the but activities. residential day-to-day in third source on lending with operations; major conjunction the mining

at buildings NOI. the our Clark at lift as as or to since growth management healthy Relative year occupancy the of have Hollander at rent on platform, renewals in-house our beginning to Cranberry our well a Business X produced asset

in represents of helping quarter our in-house for second feet versus totaling As same in NOI the to $XXX,XXX properties buildings square last year. a lift our Hollander XXX,XXX to month, last XX.X% period $XXX,XXX This occupied, are increase. fully

commence our foot County, in in month. of based distant building Harford our planned by upon square this its warehouse is queue. the current which projects based – The market current we construction to pipeline week in too assets the parcel industrial not conditions, XXX,XXX strong Perryman for X Aberdeen, Maryland, industrial other from permit Our building, received plan section this XX-acre with

XXX-acre Predevelopment as tract location. XXX,XXX facility this ground mid-XXXX as activities square foot distribution favorable break our at early could pending we from in market and conditions, a ongoing are Northeast Maryland on

designed several roof, entitlement adjacent Finally, Existing property. this market for construction begin to Depending or XXXX land well leases offset helped distribution our dynamics. the feet market XXX,XXX of costs multiple single storage our in on-site and XX-acre on tract or Run a could options trailers Aberdeen, to design Business large center. very demand, XXXX. Cranberry final on deliver in Options Maryland, of square with in depending land carrying being here to buildings we Park to is XXX,XXX include under the

these projects of square square of when added development X the already feet Completion operation that will feet. X.X over warehouse million to properties in additional over through million assets will aforementioned industrial product X.XX create add

in period and for in is an the to mining and quarter mining row. year. remarks, NOI the period versus royalty royalty second opening for for This division increase last $X,XXX,XXX, same of royalty, year. revenue any stated mining the record the $X,XXX,XXX the XX% Relative over quarter saw same as in and his III John, $X,XXX,XXX last a was in segment revenues our of quarter

projects XX% ventures. to third-party and stabilized being minimum days. with of of a on under Moving level joint Investment St. X our loan we distinct Steuart Woodfield development MRP, partners: occupancy John Properties. between and and sustained operate stabilized for Company, XX both The underdevelopment Currently, difference a

mixed-use mixed-use XX,XXX XXX totaling mixed-use As X,XXX of projects and office X/XX, our XXX,XXX – apartments of JV square feet totaling me, square retail; and platform projects; of single-story includes retail. project square office feet excuse feet X X X XX,XXX residential X – and

venture located partner. X our where Washington, is in mixed-use projects D.C. are joint residential MRP

of Realty our Our partners with MRP quarter’s neighboring where XX.X% along XX.X%, and all Investment projects, retail Steuart Anacostia Dock end XX at Company, most and River recently, and leased. with fully include Maren remained respectively, the occupancies healthy

to consisted XX Maren located increases rates XX.XX% respectively. with renewal as as in movie of a Street, and Quarterly Wet fully well Dock rent leased three a X.XX% contains Northeast called flexible project multi-building, buildings rental X.X%, retail success of anchored concept transit-oriented, – on Law residential the Metro unique XX.X% a a at entertainment at and building and outdoor platform rate Bar. Bryant theater, mixed-use

residential totaling residential – a quarter, XX.X% leased rental combined occupied. XXX of residential the Bryant and Street’s tenants renewal renewed XX% of X.XX% end lease units retail occupied, for XX% towers quarter. components the XX.XX% increase the average and expiring were X At rate second its of the with XX.X% were

seen in opening for Street year. tenants For leased, grand planned X business. market the success and opened of for the X opened quarter with March have market Bryant for is Street fourth this and X The has the early Hall, Bryant first Food stalls

been greater Barbie. have films, continues Impossible, and The see Mission entertainment blockbuster Oppenheimer Alamo such that to as venue Drafthouse theater and by enhanced revenues

Verge, showing strong is spoken and in residential leasing quarter XX.X% in final of fourth mixed-use newest and or as of for June. the and of occupied. boost half nearly retail at lease project district, its certificate received XX.X% of the the Our performance quarter XX% occupancy over first first was significant end A the in

of on per of units at the terms during XX we velocity, second gained average In quarter occupancy Verge. month

XX.X% was are leases rate X our Greenville, occupied our success. of in XX.XX% Carolina XX.XX% second in Riverside as renewed Moving of partner quarter. XXX Development projects with with for its apartments on, Woodfield seeing great the and rental increases expiring development South

in fourth Jackson .XXX quarter’s leased occupied. was quarter end, its ‘XX. XX.X% XX.X% the XXX apartments in and were And placed service during at

opening significant this component retail leased occupancy in is averaging targeting strong fully demonstrated performer Another Its the in over in units the quarter month. second XX boost fourth date per lease-up,.XXX quarter, and year. a an

$X,XXX,XXX Relative to in quarter the X the projects, versus FRP’s last a joint same of NOI year, $X,XXX,XXX share increase. venture X.X% aforementioned was mixed-use residential

developing Year. and JV seventh of Properties, Windlass in Run project with and of John, that former in square flex Baltimore office that XX,XXX a Maryland retail. or makes we St. undertaken last mixed-use pioneer St. is With square Developer John’s includes single-story are development third-party of office feet The the our up division County, and feet XX,XXX National

now versus the to as the for of quarter or occupied square X.X% foot $XXX,XXX a increase. over is XX.XX% lease a for $XXX,XXX asset a this quarter project second increase was past leased NOI due lease. overall office over XX% period XX,XXX in year same new this This space last and an result

leg entitlement a horizontal stool. capital residential Funding where of single-family working our projects, ultimately, toward provide and is to program national the of ventures, homebuilders. operating development we sale the a This last and

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

final the of June units taken be profits million principal down The of profits interest the the year-end. $XX.X additional XX of are of provide lots XX returned the as of have by as taken on and and been has All quarter. to track down XX XXX end been

Presbyterian residential venture development Maryland. project Aberdeen, Our XXX-acre Homes, other a which current in is XXX-lot, lending is called

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

would impact I D.C., challenge quarter. In are closing, this pleased us. facing the present headwinds is delivered leasing remiss mention In we of not the Washington, trends our being our with and new to could be volume significant rate performance a rental expectations. company’s the units apartment for will

Additionally, positive the available with note, as a a affordable not construction capital to rate balance for construct able material projects interest warehouse a competitive buttressed like XXX,XXX developers like not environment presents be challenges upcoming well our to foot God. be facility financing ours obtain by pricing as and may sheet On might Chelsea have availability square terms. rising who or

due our We of new foundation finding consistent talented flourished the exploit to constantly upon our environment to have the successes skills no We to the in strength marketplace. our look a building ways and part teams. forward in small of changing and efforts financial our in

I’ll the turn to call John. now back you, Thank and

John Baker

you, questions have. might At this any point, happy we’re to up Thank call to the you David. open

Operator

first our Robotti. question come Curtis from And will Instructions] Jensen [Operator with

Farrell right. move Stephen All to We’ll open. is line with next Your Oppenheimer.

Your is line open.

Stephen Farrell

morning. How you? are Good

John Baker

morning, Steve. Good

Stephen Farrell

the rental your First loans? comments question what relation is construction regarding sensitivity to loans, rates in about the construction of

David deVilliers

quite Stephen. don’t understand your I John. question,

Stephen Farrell

do development restriction how with see supply you the on In new rates? of other affecting words, the rental sidelines,

David deVilliers

right? have and for rates obviously, months, The the X.X% rates. whether are X%. and Well, out So interest what up us all going rates example, loans there well gone construction last lease-ups. is talked rental XX through the they’re favored rental market – for these the there dictate of between well over have the about floating, done pretty already to trade-outs actually and We’ve our pretty year-over-year,

are I the Stephen, pull is buildings to from, going our big think come is done. where

worry pricing happened behind and material we don’t about with increased have to construction us. the what’s And because that’s costs so

and interest So big start I that. difficult going of probably get new rates with these trying think out be building And is to the very, issue. that’s to very kind a at

Stephen Farrell

cost level sense And at do rates a it what perspective? in either rent or from rental think does level and you make increase to

David deVilliers

Well, of the with is units new in than D.C., again, subject the to a lot on. coming rates the rental are competition really lot There of especially anything not other a market.

of drives rental every day. So competition rental your rates. market look the at all that rate the for We

depending And of so the units. we type raised in location on lower of prices, unit, the

So that own kind its thing. of does

Interest can’t impact not the continue if decide do The is up, can flow. do something. an have on obviously, we we our to rates, But control. only to thing they cash go interest operating start rates

John Baker

would interest the you on typical rate today? loan would what say a construction David, be

David deVilliers

Well, the X probably June end of at have that’s as for the example, the we Street, biggest. Bryant that That’s of – June. X.X%

one We X.X%. at and X.X% another at one have another

loans But are average new coming Xs. they or SOFR on points the So and the they’ve to literally – to XX-day to SOFR basis anything usually X.XX points. up the mid- Xs. And in Xs today, from basis gone out – from anywhere the run an the a X.XX high

point not another stuff than existing. rate with it’s rather the new interest So the

John Baker

have Yes, really you’d order of line justify on I increases to in rates to high think sustained that construction see in to build. taking rental kind

David deVilliers

do. You

John Baker

Yes.

David deVilliers

you said, need that to high, not growth these John able strong going – kind some property be to tenants a – coming rental for rates. rates For the you’re need, Carolina, to example, second in for But the That’s in support almost sustain the be we a but as our do the XX% for due in to got interest – second pretty you increase some all Riverside of have rent need our – quarter. dramatic increase. South to

Stephen Farrell

longer maybe a road, like properties on to you beneficial rates sidelines have in the that supply view? term, I rental and Street think just general. restricting similar development years – be and the And X did the down Do would being X would you think to Bryant

John Baker

will answer that David, definitely think can you And I help. that.

David deVilliers

years a to in there it’s It basically right, be of thing going takes you’re whole we is ‘XX the things. And Stephen to interesting, a in COVID, that slowdown during the absolutely throughout – these and happened Well, X do. that. fascinating deliveries ‘XX construction. lot that’s build There’s of because country wasn’t

in to online year – up X got has record causing last So the a market number it in late XXXX, led a early which X coming units ramped the the of months, and in in over to lot now. the units available of

change. whole think be be lease is we could project ‘XX years thing rental there’s and the as going then So rate up, for great ‘XX to – the to going And increases.

Stephen Farrell

it an increases in farther, on in foresee construction I just I – And X time Phase development are thoughts either rent the maybe Steuart missed deal? you you the reduction this now the need ‘XX call. end your the but of Do line know of have you’ll updated rates loan, you of for or ‘XX? that? XXXX, big pushing back on do What maybe said

David deVilliers

– right fourth. look the plan – We of be going to takes want should beginning we’ll sometime take we’re could And here quarter which which now, we’re process, all what while. Stephen, entitlement a still – the metrics, this the probably then in right? at a through the the Well, is probably

our we go of a into the these contractors without lined have deal, up, prices don’t things not we loan. and guaranteed Part it’s from maximum to everything construction good and fact mention usually

mention the not starting standpoint. changes an dramatically fact, to in not in Washington ‘XX, the I So very something something unless that consider from we is that doubt winter, would would efficiency starting favorable

dictate So sometime probability thing. if market get ‘XX probably – such in a that the – wouldn’t says I it if we again, conditions until

Stephen Farrell

to Industrial. turning And

in starts starting on have see demand pressure – We around and we’re whereas the dynamics country, and supply Baltimore? to are rents down, some

David deVilliers

is The somewhat development much. so not restricted. – We

which to For the the where on which property in Chelsea getting literally mentioned all one moratorium is, that a this is earlier, I our is there’s example, area. ready start week, construction new

permit not So applications. only we’re accepting tough to not like spend they’re kind a any to is certain that money building, – build people of the for it

and So done very that vacancies town And next, It’s we’re well the tight market. have we’re on will come well. year still a are a market below mean about it rental the very the game from starting like low in norms. I only the literally rates vacancies because are very now. very, and excited the pre-pandemic

Stephen Farrell

the industrial do pushed with cash being And of additional Steuart envision one developing invest properties of or to pipeline? back, phase the using the timing in you opportunistically just

David deVilliers

that We’re always Run looking for quarters. enjoyed property last that, several Cranberry Business really which value add, Stephen, results for the example, in Park our strong with we’ve some over

the or absolutely value-add rehabilitation it so so for market the and in we’d for works comes sure. always require kind And if it. we’ve and and refurbishment much stuff, doesn’t We’re numbers along it not, it’s consider something work,

Stephen Farrell

And might nature? anything of non-development in properties need opportunities that liquidity any seller seen the have or you maybe or

David deVilliers

yet. We haven’t

We’re very team we folks of particular who John. Woodfield, business St. got with. in a strong MRP and pretty We’ve in do

don’t be very being we in joint out were one. the market looking for a in of tough would careful That a so type And venture business. would that and have be platforms – other we as to

every at Carolina, We’re the South We on. Obviously, always South Carolina, Southeast. looking. projects properties Carolina. throughout in look it’s north, we’ve because got we’ve got Obviously, in the our certain North day areas. eye

sheet that – strong and yes, who And been that the in the we’re good we fact boots-on-the-ground dealing operators. we’re we’ve are always lenders So standpoint, the we’re know banks and from with. looking a we’re balance fairly

they would the and them these that So properties lot strong were before. these pretty there’s to people on managing and in – there assets. But move fee been out sell of many would we’ve historically them And one. a develop of developers next

our with joint we lot – venture the we we partners, of a lot think a table sure. for bring to So bring

Stephen Farrell

taking for questions. you Thank good. my That’s

David deVilliers

Sure.

John Baker

you. Thank

Operator

Curtis next Jensen Instructions] with have we Robotti. [Operator And

open. Your line is

Curtis Jensen

morning. good Hey,

John Baker

Curtis. Hi,

Curtis Jensen

cut I earlier. off got

I one my first couple the presentation. redundant I a of was apologize about questions. if here. is fault, but it And sort I’m of have Sorry

Specifically seems tables. GAAP take It’s I think may get Is the from press example, for I it – even at Street. the a days like to to stabilized the XX%? the go this Street point? release text to all Bryant kind accounting your been this. an in like Bryant about when above I But text considered when disclosure And of cloudier little XX

David deVilliers

And not got No, has days, quarter. on. retail still it is residential we reached going to it’s It’s XX sir, occupied. it to probably the has got still It we close. it next move quite yet. mark to the – be be leased And because people make of just is having in, put for there that not the kind is which was what it but

Curtis Jensen

disclosed is see the Bryant I Or So I revenue is that the – lease results Development portion year I of the to else? Street’s Street when like the months Street? Bryant something lease there is see was revenue go and the $XXX,XXX. X somewhere lease and segment, else? Is table – Bryant of, revenue Or

John Klopfenstein

John is This Klopfenstein.

ventures, Jackson, Our unconsolidated Street, which joint all unconsolidated. XXX the includes all Verge, Greenville, they’re Riverside, Bryant

on or the main the are ventures, through you showing line find So ventures They they income find revenue those expense. from through of today each on statement called our joint a in GAAP run and expense. the that perspective joint our and But you’ll joint ventures. a breakdown that we about footnote page statement all income to on of revenue XX-Q don’t be and filing going the our loss statements, run income one equity of

Curtis Jensen

Okay.

going your include into to Anything I or go So – or stabilized development the and anything release Riverside like and press when Street segment, between and Bryant like that’s in that? I Development tables that’s not... somewhere not see

John Klopfenstein

our because included And revenues. stabilizes in in revenues. either expense it and It in stabilized future does be won’t aren’t joint revenue venture joint not. those our partners’ They’re the it once ventures

footnotes. in to the we’ve table you’ll about talking refer to So been have the

Curtis Jensen

purposes, will equity Okay. or for showing continue ventures? equity And and then GAAP I joint loss guess to be and it – of

John Klopfenstein

That’s exactly They will right. always there. be

Curtis Jensen

All right.

So The your So been considered and stabilized consistent time? the tables joint over ventures things in are that’s Dock? only X that Maren are

John Klopfenstein

because not and Riverside Yes, expenses GAAP is in the of table correct. required. that’s in That’s reflected that treatment revenues

Curtis Jensen

I were how first-time understand FRP a it’s and that’s same to I under like if me, "Okay, it’s is mixed-use for a All – it joint that – going table around disclosed hope venture, between Anyway, Street the I no, is just one.. I’m I’d to I it around guess right. not venture MRP, little then you bit reader, the company. confusing And not it’s been I not you go and as I’ve the – how ventures." look a the mean company to disclosed joint and stabilized Bryant way. but It’s I’ve say, say the I years. I been joint but seven

John Klopfenstein

can feedback, The see disclosure in future that improve highlight... we’ll if to we the

Curtis Jensen

mixed-use of a the bigger couple Yes. then, from I in is your multifamily only NOI the you’ve to on becoming And stream bigger and going and whole asset bigger say coming income next course, it over other of management. of because and years. got

place values, so of a And income-producing assets as asset of to to analyze the trying kind – have to book properties. a value, from to going from development go kind company, I’m income-earning, of

to or be being of harder that. offer unusual some more happy The Verge, get to think dissect incentives? all if isn’t I you up hold kind that, with Or it’s of if are consistent people I incentives heads-and-beds with Anyway, about a don’t your is. disclosure it lot this just again, on to want this there on having apologies there But going And of here, you’re I’m to over pretty philosophy, redundant it? is to

David deVilliers

happy it right pretty actually We’re now. with

effectively moving that which and a June people been units did group of takes as takes then X. program of lot a actually with As way. on – they we’ve –which on I a And lease actually XX said, they master we Placemaker, temporary it them in, lease called

and XX been spaces enough, and So to kind not that have able would these we units days. XX rent XX for they thing – professionals of they get occupied of that’s to we’re that that minimum interestingly a because really so – quick –

we We revenues, that’s of not. took XX% – of if for we’re a We we’re get wondering the leasing wondering do great or The in, when get that very all had well fact, things quick, in so are XX them units. kind year, a place up with XX-XX XX%. Verge. And – they split. June and And But in moved X, and a idea and they the is going they was

year which to But when X overly with panel. months in just we kind and up open the But little not not concessions, summer once and come X.X are the of the look, of late lease. into year we Coda – these early the are December, for the up months are the of you the a is best getting months And giving it that like as into months the did opening thing, fall, things and to be see. that we’ve you rents stronger, can now

– yes, happy – we’re so with it. So we’re far, but pretty

come concrete Steuart’s That One has plants down. the of was the side.

things that So going looking Verge. over really got There’s And on lot good to area a right of there. stadium the animate to behind us. of of just the we’re you’ve soccer course,

it with so of happy – good. pretty we’re so So as far,

Curtis Jensen

this maybe kind Would little. a and jumping you – of is

You talked about you an a tour Just... of sort anticipate Analyst Day October. Would again? property in

John Baker

would that of parcel I it. and Yes, part think be

David deVilliers

sure. for Yes, Yes.

Curtis Jensen

or second. Circling on in that? back the a is X.X% loan? whatever a mean, construction moving a I Or hear come heard I is construction there’s mortgage David of are mortgage? say kind you to towards Did Bryant Street under – can I loan for a still –

David deVilliers

wood basis some showed The about We’ve X.X%. Street. the got the XXX up way chop XXX less X.XX%. Bryant to the averaged average construction – renewal went loan. we to than the still X.X% buildings in at obviously, They average – all for about X – – They financing units, come or rate They well, the for units, more points from a than usually permanent a can does.

residential they’ve to the is really the so it to Where – side – retail. going to very movies, And has I sales project as Barbie starting Alamo are – done is I which feel the in we was like still year, mature its as last well. own. be for into of mentioned, continues guess But their done over way up that come success but is people Alamo –

So we’re happy there.

have we take the Our some in-line retail, that in. while move tenants a to leases new

there area so of sense animation not that the is place yet. And and of a

not and little you the still from standpoint a it’s right as walk to from around, both bit So it just more. a greatest lending needs mature now, from project a

mean are We we’ll look of take we So see do looking and have I things ‘XX options the we just beginning at now. a different – made a go. haven’t a how right at it decision.

Curtis Jensen

going across I Is Street there was Is of... sort there potential there quo? for across industrial there anything street? is there? of Or site movement is know an a street any that site it on Bryant from development? the was the status Second, it

David deVilliers

the It’s roof. And a say know. I of it. of doing it do. out and you couple entitlement industrial-type the is. trying It while, has going doing – I’m won’t what want been owned down a basketball on a long Actually, one But by there takes figure court as through how to entity. it’s we’ve We’ve buildings. them that they a development since to to been process I believe embarrassed they’re

a while. it So takes

the But property. like Steuart that’s

want takes time. that see may And then that It process. says you something change you entitlement use the through more if adds to whatever, or going then We’re time. the

Maren, still X For Phase example, X our down Dock and phases X. there and we have more in

to through hotels of going that’s going a year the residential. take to change to us use that modification office from a about project We’re and

a street. your development – predevelopment the across takes some there while. it there’s But yes, activity to question, So answer

Curtis Jensen

be vehicle an you’ve this when dedicated you homebuilders? one to It’s vision a the it is down." of – it? how is ventures. "Let’s mean, you see point on And there I’ll And more going with limit with strictly is question. I And up I the there that say, got Is opportunistic where lending kind personnel? its wind Or wrap it of guess to do – lending open-ended to kind

John Baker

was great, sale, and long lot had partner back. This for Curtis. when relationship time money on it, Yes, good for money comfortable to market return plans a of in were product a going a zero. on were was type money a that good a great no way And This we and use to had a put with roughly to sheet has our balance cash a our we get with market post a and David with. that way rates

into going more own venture. think properties, a as be we to more do less plan I likely we’ll and lending income-producing forward, money our to put

Curtis Jensen

Okay. interesting mean, it I thought deploy agree. pretty to I a I capital. was way

kind I and be have outs a the you’re of It of be interesting returns would good on presentation might on the and that the cash Analyst your interesting. if in getting Day think returns. page to you that summarize ins

John Baker

Yes.

Curtis Jensen

I effect to a didn’t homebuilders it. guess to of and who say to take thinking interest way about of there was used sort develop commit an options of properties advantage to had at want and asset-light wanted

David deVilliers

there’s other ways, us gives property, it is whether too. the that the knows looking we’re or some it’s just advantages world when ability intangible Well, of net. to that that a cast The for wider residential industrial,

that doing property know land we found the buildings developers. the properties in that Chelsea it we are People active X that at we example, to those For XXXX. since smaller We’ve the opened where together. are been go, put are going company

the market, wholesale don’t get we the even very, selective really kind that’s buy there. very us not But can even them them that we there another usually this And brings. buy entitlements and that the these of in we we have are until properties. and choosing do right, it advantage So on keeps unless been don’t – involved out

XX% obviously borrow advantageous risk have So we – is investing But obviously so loans, been we any above. with far, and would money we the very IRRs, don’t they’ve very, don’t capital. certainly or on But these. – is

a at it are just invested. best and spent take look at So the it’s right cash pretty money At the is right are – where we’re said, returns to all – John going least but and/or spent, I we now if good see now. on think, as investments,

Curtis Jensen

private just up their October, it look open, give I’ll know anybody say good seeing give real keep to you estate to why don’t to I I’ll guys. and I work. a can Well, money in guys would you equity the forward to

John Baker

Tell know everyone you that.

David deVilliers

That’s Curtis. thing very kind say. you, Thank a to

John Baker

you. Thank

Operator

in further have questions we And Instructions] [Operator no queue.

the for back remarks. additional floor our over turn to So I like any to or would closing speakers

John Baker

offer maintaining the Thank company. to in just reminder. you your all quick like I’d a for interest

we The event And D.C. for referenced, As Thank you. will e-mail feature at management our on our Investor presentations please October at frpdev.com into Curtis section Investor or XX, holding an Washington, Day website. RSVP, XX information Investor our property. executive on Dock the Day in the event company’s are team. XXXX, of from check Relations

Operator

time. your you, Thank gentlemen. This may at you conclude ladies and presentation. appreciate We participation, disconnect today’s any does and

FRP (FRPH) 10 Aug 232023 Q2 Earnings call transcript