FRPH - Earnings call 4 2023 | FRP Holdings, Inc.

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Operator

Good day, everyone, and welcome to today's FRP Holdings, Inc. Fourth Quarter Earnings Conference Call. [Operator Instructions] Please note, this call is being recorded. I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Chief Financial Officer, John Baker, III.

John Baker

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

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

financial estimated or in results We as and not, in XX our FRP GAAP, Pages obtained a decisions reflection certain revise is imposed to and informing to assess per or not the measure financial of its and formulated illustrative accordance or analysis non-GAAP management except income, sale should net the call operations costs as purposes presents and to reference assets identify its or referenced within do the Securities the the financial would the necessarily law G value how asset to the this forward-looking refer uses Commission. measure Exchange asset of debt financial This of reflect a management XX Regulation for result values not for performance. be associated that statements, views purposes price liability. information. To as measure, please operating have are analyze meaning be only our segment the earnings To and presented financial net no Financial by assets by as tax or of or upon future various measures. with update obligation events for share measures any a of the trends meaningful FRP substitute The non-GAAP GAAP and and financial NOI. non-GAAP Measures viewed to of the rates, of GAAP on non-GAAP to in NOI income reconcile most of its cap monitor, operating titled values release. Any is net this of recent supplement liabilities

period to financial joint ventures of These equity in of last fourth $X.XX quarter. $X million excuse loss increase ventures an was well increase Net ventures $X.XX Net last last improved an NOI million of equity the less an for as for was $X.XX previous and $XXX,XXX same our well the and Net year revenues or all in as of period from income quarter share XXXX income segment. Fourth the per interest $X.XX or our the same the or interest. versus income of interest highlights last me, from year. in and equivalents from by earned $X.XX or was million an of per increase profits to XXXX same income to Fiscal Commercial period increase was for to offset an same or to year. well versus million compared fourth cash income Now -- $X.X X $X.XX for quarter pro cash by for interest year increased year. when positively compared the the share of equivalents $XXX,XXX year impacted loss increase joint in $X.XX in share our was per as in increase income year. in fourth negatively on in per share period as by as million from versus Industrial and XXXX in last million cash as for $X.XX quarter segments compared in $XXX,XXX increase impacted by of XXXX expense the $X.XX were Net an lending segments impacted in and million was XX.X%. an revenues capitalized of compared interest $X.XX million due rata positively all $X.XX

XXX strong also As $XXX,XXX we lease operating as an rata we which as not direct Jackson NOI $XXX,XXX interest property repeat sales, in gain net -- income management in to quarter experienced by in X.X% No. grew the profit, this $X.X me, net operating profit NOI XXXX, operating XXXX. Revenue, increase rata in pro by all up million. impacted and Compared of the well and increase expense the XXXX of quarter X.X%. Verge by I experienced XX.X% and company growth and all growth of from in for by pro an fourth income and we Revenue, revenues net income expense did and pardon was strong positively year-to-date. rata pro NOI XX.X% by apologize. profit, the

we grew Yesterday, fiscal respectively. website to for last by brief highlights and XX.X%, quarter year. fourth show to financial For fiscal XX.X%, XX.X%, and XXXX a XX.X% metrics year year, of posted the slide our these compared

now have it, are to and debt assets of the now range an we value publishing who report. $XX.XX of estimated call not for liabilities analysis or over in those net the For David? our to David $XX.XX. I his yielded per turn seen value of will share

David deVilliers

to fourth good to the And on Allow call. those of operational results the me quarter some highlights the day John. provide you, on Thank company.

little to the and a stabilized the We've Asset X segments now our all, ventures industrial commercial better joint become housekeeping. assets has multifamily. business of First in describe renamed has become Management of

nearly last Maryland our rent in-house, At currently year. period Business XX.X% occupancy same are we Park to predominantly enjoyed and Hollander million of Maryland, to X portfolio. Full maintain warehouses. as $X.XX occupancy relative buildings increase quarter, over for making business of lift helped Baltimore, in on the have throughout which the Park this Business in at part renewals Cranberry Harper segment, growth as XX.X% the So the County, well at NOI year-end, buildings our Industrial feet, we up XXX,XXX square industrial Commercial X

For in the million for represents over million an NOI increase our $X.XX this segment of $X.X XXXX. or XX.X% year,

segment. Royalty business flat the was total of year. $X.X period of business $XXX,XXX down same Moving last segment for period Mining over last NOI on versus nearly saw to the quarter This the million, this in million the $X.X same in results and segment our year. revenues

Both XX.X%, NOI Riverside, of million, for increase. in average with Dock average all South Average rate rate with of XXXX on in were XX.X% company's for increase XXX pro However, occupancy had this increase was tenants the for retail with X.XX%. $XX,XXX,XXX and XX% Carolina, was a occupied for was and an increase XX.XX% including XX.X% and its its rata of of rental enjoyed rates segment, for business an for and XX.XX%. the apartments XXX XX.X% XX,XXX,XXX in year-to-date, its segment and net respectively, Average Dock and NOI quarter XX.XX% The XXXX program renewal $X.X versus multifamily end at an and Maren occupancies from of Greenville, QX for Maren QX $XXX,XXX NOI 'XX, share a was X.XX% year renewing to respectively. with of X.X% apartments with fully all Maren docking XX% XX.X%. In and respectively, occupancies quarter, rental leased. success the projects XX%, renewals XX Riverside.

several in buildings equity Although and and common you multifamily over strategies growth. when balances family have to to liquidating in NOI include in in saw legacy several operating to use the flatten factor multifamily segment, These we at the warehouse we Development commercial and expenses portfolio and engaged properties, year-over-year grown the caused land parcels of growth and commercial, apartment the capable to units square These additional end grow at the in industrial our we portfolio source segment, project rent collection mid-XXXX which the business. lending. from change tenant X capital X,XXX in products, in principal Stewart Dock sale of X commercial our feet due higher all this industrial strategies X of XXXX. In and to XXX,XXX the since strategies and Maren

managed Our in currently own projects business industrial in our in development strategy to buildings stages various from are acquired, development. industrial XXX% consists of X ground-up transferred shell FRP cases, when most by We developed, and, commercial development and industrial pipeline the that the from and properties have segment of complete. commercial are

conditions, market quarter, XX-acre this on the position site will the multiple Northeast early we our on building predevelopment the of activities XXX the is in ultimately Industrial the the expected to foot in deliver time. project along of buildings we Maryland, distribution broke were second our will year. ground square a During as XXX,XXX square In of on QX down this warehouse on A middle Harford that support foot to on I-XX to section industrial at land at in Class spec be market end XXXX. acres of Permian building on the state-of-the-art as the corridor, break deliver Maryland. This center Depending or favorable smaller XXX,XXX depending a of we County,

X.X QX business of to here XXX,XXX Florida, begin parameters first we between this Harford Whitemarsh, of and storage X,XXX when XXX,XXX Properties Finally, and joint industrial market favorable of final development strategy offsite as helped development space. and feet square project, Various which we part partnership John's Capital million is our demands. our I-X configurations residential highway to is venture our to Park. platform of that development feet square feet the trailers projects year-end, on mixed-use will units industrial market acres Maryland, warehouse this result entitlement ready completed will of existing Maryland, leases multiple conditions, X in designs million Run includes of completion design And warehouse to County, early in commercial our over for venture of we from industrial Cranberry property add XX-XX that XX called build, for a industrial as year. a construction we're hope Run, which in upon on projects BBX Tampa a Orlando, studying Business segment and with on X.XX feet joint this the until commercial to over to included yield costs Windlass be our adjacent feet. Subsequent assuming are carrying square is existing square which dependent in conceptual square to Completion could for additional million XXXX. St. with in finalized land should X.X on-site these our Also ever over consisting XXX,XXX

includes X occupied was feet At side. XX.X% buildings. Windlass leased office XX.X% on office and single-story of and and and currently occupied year-end, XX.X% project retail square product XX% and the leased Our XXX,XXX the retail in

in Our parties. second projects multifamily, apartment with conjunction third developed strategy where is are development

development the and to rate at renewal this is day-to-day This are maintained development in in Jackson share business local this and increases in operations. management in Street FRP Street XX.X% feet moved square tasks segment. D.C. components Street period were and section of leased Prime segment this XX% quarter. to the X.X% properties completed end. of they development consisting leaders quarter acquisition, as of occupancy rate And asset with end until houses facilitate of the apartments a Overall, level a be typically For of before and and outside XX,XXX XXX are XX.X% and retail XX have the transferred Currently, retail success majority Washington, at These in buildings will we occupied. occupied different multifamily owner, market out and of this was project averaged Verge XXX and the XX% of days of business of for quarter rental X the Bryant being South Greenville, Carolina. Bryant end. to strategy strategy housed Department XX.X% multifamily

of date end occupied and Boston at project XX% its of first quarter for in this service occupancy district, in X,XXX shares excuse our follow Red Lease feet XX-point year. all end as affiliate of feet occupancy well. and XX.X% newest of Street, -- will leased retail the XX.X% quarter. was the fully transferred Greenville, at of for that Average with reach with the up to Unlike of lease-up average Bryant assets of have has Bryant multifamily quarter like property X.XX%. is the quarter quarter the square is fourth multifamily, business are the Jackson final business XX.X% at mixed-use leased for is of project square feet XXX gone the properties. stretch home an is was and will for and and with in in opening segment XX.X in Street the -- are located be of XXXX summer. We're downtown this this they 'XX XXX,XXX was venture and our received and occupied. placed Verge drive Jackson, of certificate to XX.X% me, the Verge X Development warehouse spoken a When is Our operation. these was its Plaza square an of in retail multifamily sometime of the in Greenville X,XXX leased this and and apartments end second project It's aforementioned the segment the quarter transferred targeting joint segment, the retail. of X,XXX the stabilization of during X%. occupancy XXX Sox. Floorfield, already

another NOI million of Development segment of lending within other billion capital these profit-induced proceeds. XXX on preferred presold land, principal inclusive our program minimum capital generated commencement over waterfall any a you of final to year, towards NOI strategy source development So the our aggregate strategy of XXXX of homebuilders. rate assets improvements. It's at This XX% to which charged NOI return working XX if a where, above and Berg. Still you provide will $X.XX last a is press XX%, the infrastructure to note program. determines ultimately is an and Page of a refer $XXX,XXX strategies, the of in includes which transferred national in and interest in versus development release, the horizontal among entitlement loss we prior residential that and split

been out expected of up to The XXX X total transferred Completion quarter is Maryland. to the peak and Amber the have a this current million. profits million, With of out $X are during County, and a second development wrap year. $XX.X homebuilders all Prince sometime first should interest of projects lots final and income our capital Ridge activity of George's this project,

Our of terms is on to Amber year. funding finished to construction development the a Homes called is national of drawn in all residential other under We've current XXX was lot similar committed $XX overlook, The million Ridge. million homebuilder now XXX-acre in the lender contract Aberdeen the at Aberdeen, Horizontal Maryland. lending Presbyterian $XX.X lots. project begun. purchase end building under has venture

foreseen the with the compete in begin remain in finished coming down $X.X rents and returned optimistic of growth XX our 'XX, apartments lots and about while surplus assets. a opportunities. with in taken been as have the to D.C. saw increased company has and company's we been we of we for quarters year-end. In first residential The are principal next competition. interest The came performance over to pleased Washington, by with online million new roost closing, quarter final have record-setting several to flatten the directly will Challenges Waterfront

the recent talented look grow well revenue the significant we Fortunately, part latter prior third well to in to confidence the are will upon cementing competitive assets market. Thank X apartment and back we in and get expect stabilize the early a forward through a turn in the continue in opportunities. call and to additional 'XX been by of and stabilized 'XX. We've you, its and foundations We building our served have and on and place FRP Weathering firm a belief careful with our and to to and and in management stand John. place, I'll to new and to successes further coupled test strong development. placed us. the now dedicated design, approach approach the patient our teams, market. turn, markets amenities With competition to our profits not is and We team its challenges careful portfolio step steady, deliveries

John Baker

David. you, Thank

presplit event X a stock for saw split you of ratio announced in forward in post-split at we release, shares note share. of earnings every our of subsequent many yesterday's As X common a our

company believe questions traded shareholders, add thinly we up number this open the it a stock. At a have. you some liquidity with has might to small any our to to happy of this potential we're As that to point,

Operator

[Operator Instructions] first Robotti from question Curtis We take with will our Jensen Company.

Curtis Jensen

have a we -- Street, Bryant about we permanent -- are that. still on and in financing don't Thinking I don't

David deVilliers

Correct. Yes.

Curtis Jensen

status rates more that? you function little Or... just kind of do see get until where What's Is a it of the a attractive? And waiting there?

John Baker

David. Go this. David ahead, can speak to

David deVilliers

a go Yes, that there of through rent the of side of, and out take that getting some is free and in in Yes, business. I'll it occupying always the retail is Curtis. swing part you

we're we to operating program. the then that waiting hopefully during financing, interest see a a the and So But of bit finance is we're were why also permanently that's rates is that the -- position to end look it getting just in a where we're to came some It's be We which But better under did operating year. this interim again, to due, stabilization, a a the should a side rate. which we with which hopefully, main go on commercial really drop interest of start the and a the floating will reason. sometime bit, at interest the -- down when construction also loan are starting we'll little be hopefully time do to that's obviously, rate, and will then to rates market year. that towards go bit floating looking obviously the

Curtis Jensen

When like you referring that court, the the say retail, food is to mostly little...

David deVilliers

it have we've part inline Curtis, It's say, retail. building square call out about took the of of under X,XXX the that got district They're X agencies. that in feet are we get of that the for executed it, leases forever permits construction government another, to now.

an So issue. that's

We for another have LOIs have one. and out we -- another one,

wrapped And the interest now see trying of just we to of again, don't we're rates. that So right up. because all get hurry a

Curtis Jensen

you verge I would it do is mean as expectations? -- your describe of the -- how meeting you And kind how

David deVilliers

will the towards of middle nowhere a the of further longer outskirts if than of because as a there's they west, positive out that online the year. coming you they will end units more X,XXX on opposed significant where coming units are that on because doughnut there We're the in center the yes, effect bit positive, of a part, kind we be have area. have are to no of -- most bridge of And the little ultimately the this we're For about located. will,

started So they all right after COVID.

was so low at construction was that -- there's projects too. dearth rates And a under time, course, right of were COVID. of And -- that pretty new interest after there went that there

dynamic The at some up place. they're the interesting critical early we're out and there 'XX. and is after in X in coming nothing cases. those We going. a So 'XX good thing mass the end of is pretty But in the good is pipeline think will,

John Baker

Just fact that's XX, Maren, to the benefit -- I good isn't it it Street, speaks get It's too too that of them. a to and continue permanent interest quality at to follow got people the are is to ultimate the the goal in it's increase for I Verge, grow a that the seek where NOI a on, think market goal, up asset certainly assets. we of And able at assets. income, we the by little, Riverfront. to after be the lot financing the appropriate, think better expect on value running NOI the and not of amount we'd I D.C. period so we're we operating go to only that's on don't is between we come -- net term, when but supply had going a to -- envisioned And anyway, not the amount, appropriate our financing on out the mean, saying, a end really, grow what to say property that's a opportunity just debt few now, long zone where we to David got right it. XX-year I think healthy it an There's but not we the time -- good we've mean is it. right We've We've us. of of I in good years. the hold permanent Dock got want but obviously be, that's And really not rate much. that Bryant get with we've not our

Curtis Jensen

publicly Your is listed -- ventures, company lending to named the... a have you national the homebuilder

David deVilliers

from it's And lots they opening I weeks had opening, It's out they NBR, the certainly them about we said to for ago. sign had at a remarks, XX for up. their -- were NBR. well. their year. some overlook soft the property X, have as over They soft we as And them of transferred different X opening actually the -- in the XXX of had pretty end a in they products. deposit people Aberdeen substantial

good that's once it Aberdeen. it's visual, favorable up is a is the the Now buying to but comp, them and between up it's kind lip pretty signing pretty of one again and size. is of the area its Large and and opened up hospital a doughnut, on distance is in retail. a of favorable beautiful the in stumbling in relates center has going A construction lot as around pretty

So now we're really been the which this potential Aberdeen now excited with entitled opening Presbyterian overlook. for homes, has that about up is

Curtis Jensen

the good All off. Thanks right. keep and up I'll work. jump

Operator

We Stephen next with will question take Oppenheimer. Farrell our from

Stephen Farrell

follow-up quick at Dock currently market. D.C. the concessions ones, small any? a you Maren Just if Are the offering XX and on

David deVilliers

Maren. our Dock rental Trade-offs in see in rent X.XX% for rent we in renewal growth Maren growth and had were XX in Maren the year. we and Dock X.X% Again, growth in or months first of XXXX, of year, manager the is XX we we weren't X They good X.X%. replace the Dock Stephen, because beginning site. had on at the X the

of We occupancy. a the bit have lost little

pretty shape. heads there. good had we that profitability, beds have a bit the the which some eroded so did our in back now, potential -- get concessions we we Everything pretty wanted of some And to and much why so we're kind is stabilized of and little in is

Stephen Farrell

I in missed operating biggest at drivers the the were beginning. the properties? expense growth at this What X And have might those

David deVilliers

these wanted X And one things of problem. the of in that was front to biggest D.C., One issues, we have cities of so out security. and security. Maren a the the other problems with ones. in some had the utility get we is They're across Stephen, like lot -- had And probably was And pretty board, big.

security better because rent were COVID, the definitely So collection allow because higher was slowly process to are of we And thrown get there. getting people generate to we they collections, also out. did unable not COVID.

do court, You to couldn't you couldn't anything. go

an take sometime is start It to used slowly system. get And going in until it to complete a beginning there's work take way trying up so year the of that starting the to its through the and of ultimately, fictions and then collections incredible to overhang used to over to through process 'XX, the properties back.

down to months. about it's Now X

So are the the we're going in reasons. right But biggest probably X direction. those

Stephen Farrell

we or as financing construction when a refinanced LTVs an the opportunity this trend provide lender, with commit so there to is maintain And opposed to And the but you more not the it's that it? required to financing at know are GAAP consider with equity I'm continue, bank saw I loans XX% seeing And think FRPH was and And Bryant banks their XX% financing refinancing you there's whether Street the a to levels. Would loan, XX%. equity that an borrowers capital. permanent opportunity I GAAP to some to construction that along can debt component. they provide us

David deVilliers

the You Street? Bryant mean

Stephen Farrell

properties. general for No,

David deVilliers

Just generally?

Stephen Farrell

Yes.

David deVilliers

multifamily side, too. near I side the pretty -- have focusing We've generally, development would industrial on in the some but and would good projects I the in strong locations good probably got say we pipeline. really no. say probably We're a term, some more

-- we we we dry as want maintain to can. powder don't as So much

but see being don't don't lenders out or defer John, I'd and mezzanine I to of I see certainly us and kind that us stuff. so And going

John Baker

right, No, David. I you're -- think yes, absolutely

but really one, are the that before just That's the of we to think going did looking that. right use of I strategy. an have now. an -- kind additional with I and something you're is not marketplace money. think to smart exposure, that's asset right, the protect exposure we apartment interesting to have would own investment I get for And to get than or we additional have to don't to But time, don't number really, take more comfortable more we think, equity our think another we're our think of we the we'd D.C. amount like assets, I best on opportunity. on our have we're don't piece just another bandwidth marketplace I

Stephen Farrell

Amber that Now Ridge, the And any interest more that will it's is with understandable. that? there come all or in are payments lots sold, principal from

David deVilliers

It's we're closing not just up. the... no. out -- of bonds can kind some we wrapping that Stephen. of whole stuff There's it There's a close left, lot Pretty before of and much, kind

Stephen Farrell

return capital some me be we've correct David, if And the million. right, that think going $XX I are million. but profit to wrong, if because return overall released aren't and I'm $XX.X I'm now, principal there interest of funds expected of received -- of and right

David deVilliers

some standpoint, from holding remaining of There's there's programs. $XXX,XXX Yes. still is cash a -- roughly that to complete -- we are as the lender the

and FRP, probably profit in dust about which believe quarter. it's interest be we the but project, million in $X haven't the that going received to to so when we second actual or tallied from settles, sometime profit finalized will be and And first we the out interest

Stephen Farrell

Aberdeen, [ funded how in XXXX? much was before over. in warehouse question turn cost development ] it The Last I

David deVilliers

about you I are there? have X you it Can -- with was $XX million, would think Jon, about that? help been me

John Baker

$XX million is what I remember, but...

John Baker

I at was again? look What the was Amber Ridge Yes, issue. the I actually question looking

David deVilliers

I Chelsea. put also And Chelsea, the does we that how assume, much in we have have out in what land? Chelsea. money include

John Baker

up. question? time is It would. pull Yes. I'll -- another mean -- there Is there it

David deVilliers

spent I about incurred we buildings, No, it. we 'XX, Spec have Chelsea. Chelsea, in see. let's Stephen, don't $X million. -- Actually,

Stephen Farrell

gets land the the to Plus XX%?

David deVilliers

Yes.

Operator

will Instructions] take We Partners. Chen our [Operator Rhizome next question from with Bill

Bill Chen

the joint more industrial Florida little Could on you venture? detail provide a

David deVilliers

step do where take of likely years. back. Bill, and way -- we had the project I always locations and expand a XX the for a it people again, platform looking Yes. been -- that actually our was program, it's people place. I've best the with find going and to felt one always to -- to relationship take was done we've mean we've And always multifamily. been found we've -- with our we've take always, to the -- We've

They're move they look this people is Logistics ground I will between And year like and boots Carl mean, is a -- we've PBX if on And Orlando company, is are areas. it's the actually market Gables, the the that a project The of a quarter XXX,XXX things strong late late and like literally out, the financially. strong, to big since and us square year. which You XXs. very back last name BBX it They're got pencil to of in very working company. said, that public There X our halfway main the thoroughfare been flip look, building right foot partner we're looks MRP. on sometime it's between strong we building anyway, Capital. came a Florida. Tampa, third start subsidiary their public this They've of to on around developing.

synergy personally. a well as as very is there So good culturally the between X companies

So about opportunity. this we're excited

Bill Chen

Got a of over you. so Like this equity be you -- this just able Like And the line it you could relative the -- XX%? bit? Or I another would equity mix could little talk kind would be be FRP consolidated? that would talk about about that to mean of item? ownership? is like

David deVilliers

We're probably again, be We're the controlling we these guys are going -- because, be interest. sellers. holders going are to ownership and to

partners be much as at buying, getting lot and money the add keeping rather would XX% of their would to it to wholesale our properties. XX% our we so or a holding that into at So ownership of number, to -- basis of opposed and would a retail be our XX% take XX%

water that treading of kind we're in direction. So

Bill Chen

me Let that. clarify just

with where Your be controlling Is to -- project we ownership. the -- will in correct? we'll up holder XX% that so FRP XX% wind this

John Baker

Yes.

Bill Chen

be kind the ground, of nature to that And actual don't is almost their the like developer, on they know of guess Is work. the role boots relationship? the I

David deVilliers

Yes.

will involved. in we've we So mean, the be for I actively years. again, XX-some been industrial over business

They so And to the of have us for We lean these. a they're be to certainly going on late have, design. extent, too. some month done

good a think relationship really a I so And balance. and it's good

Bill Chen

Got you.

-- like I probe potential underwriting you if mean, don't like project I And a if what unlevered I if we stabilized this? like Okay. yield on are mind,

David deVilliers

going it's return a to been X.X% be above it's straight but decided, won't basis. haven't or cost We we on start on it.

Bill Chen

Okay.

Day, is Maryland provided lot yield helpful. mean there X%. very an could the projects potentially now have even in this project for those potential possibility of like to And hit kind of the X% a in a come above you in of unlevered a Maryland those guys That's Okay. there Like or I is of -- that numbers? at kind we Investor

David deVilliers

The big and little is vacancy. is Sure. market so. We and strong hope there's

symbol-ready get understand the We're go way So to do of want is ready, get price, not don't the all pretty and you've we -- you -- We're about don't been above. maximum the game unless at required these played, the start point things the just -- look to good the contractors anything. the get we condition. to you market, we guaranteed numbers, feel the we a get

Bill Chen

development better on to Speaking of want that a the GC it just call pull whatever perspective? contractors, have from a world kind capacity you little like call you slack bit seen like, it, get to it,

David deVilliers

Is If you're that there question? your saying, getting tighter? are prices

Bill Chen

more time getting The lines may improving, work being coming faster, just to et or with price whatever able willing cost be to you, move down, cetera? is you better,

John Baker

All of thank you those that, are for comments, comments your and positive. Yes. those All Bill.

building that XXX,XXX -- construction square know, foot in-house, As building the we effectively When you in we're our have now. we under subcontracts.

pricing but a some coming frames time but where -- standpoint, little seeing getting they're down they're they extent, that better. bit. have to we come So back down. We're from not we're To seeing were,

Bill Chen

have that. you. thank owning for no Got it really to the just provide splitting I know want more say the that -- up I going the -- I bid But I shares. improve kind team want I'll absolute that that I big on get we a in for think really question, terms could lower think little as just really that of think to absolute commentary, to do I of goes stock. pennies the share will a wind I and later, price one's appreciate you. liquidity ask Got some I but tighter. the feedback

think trading. with I will help that the

for thank that action. the So to you taking initiative take

to demonstrates guys you think shareholders are I really the thoughtful. that it

that that. price, are transaction $XX the XXs. But buying a to You is today's company this said I've before, in of times that share recent low think especially guys light great even And the back commend about. think also price, the thinking at at about I I'll I the many in want buyback. for talk just I

-- cash a where a earmarked a I point the there's think I I generating the of is still use it's know for is lot great think company projects. But capital. at of a of lot lot of a cash. we're also

cheerleader a share more be always buybacks. for will I So

for always buyback just more doing to it's that commend share you So share And I -- really the better. be I'm guys nudging buyback. will want

of aggregate $X.XX if maybe far and say -- Florida, lot to final is can the numbers. billion for sort reserves looked so Georgia the transaction. announced me and probably -- markets is I so And reserve is ]. Martin kind And kind naturally anything, for of doing per of And I'm times which that even value and spend math at some -- envelope And which which we we to that transactions, about billion go about they bought deal which a of are [ if of Bluewater million essentially, the ton $X.X $X.XX a -- is of Marietta X Industries FRP's the and at right? like get market, at recently similar, of back they even And than of question other faster to to about there's those of brings transactions, $XXX those some markets, X the I so roughly, math, X growing $X my my pegs right, what the ton reserves.

like land like is ownership I'm is a -- peg color about to just the at the accounting aggregate royalty million valuation I it's some least any did the reserves. I'm of -- XXX flow. no $XXX $XXX the like subtle streams that? commentary the million. I'm by the deals years? know, you company like like -- the to kind million business kind a just that operation, like propco get just structure $X.XX the for DNA aggregate bought is of the or that's separate FRPH multiple, X fair ownership of is they that that the an assuming -- like trying saying that stripped accounts think kind peg royalty that So end. you of like land They on it, plus there's if royalty kind you. structure. that's Xx whole cash to or peg there's makes X the right? ton owned that, fair? if what to landco. what And of bought and there $XXX they was the dramatically EBIT a deal for very, I say and for FRPs I Like will But XX% like which of million operating Now high structure kind And like feedback value more like get get at provide It's of thoughts CapEx multiple of the at wondering is I'm have like can by do reserve use differences probably tons to mean, multiple also the like if pay that math it on on got out EBITDA out sense those you and very business different out but that, like you I figure like or I Like like as of don't if guys something Like because really of you I like half the

John Baker

is purchase valuation. but would on mean love Were -- think have to basis, high say EBITDA an into it your bullish Industries. would approach to definitely venture on Martin basis. don't more have I an on that I I'd aggregates not to $XXX your they they insight Bluewater it. guess transaction. on accretive transaction the I it some didn't do the the not a done end, industry. but their I that's reserves probably of And Bill, accretive million Obviously, that

And of be slightly EBITDA the an it's to so if ballpark probably somewhere multiples, below. you look think or value that's in appropriate that's way And -- to going I it. their at there

to that our I not account per because any transaction when -- perpetuity appropriate of a -- take the more is to to this a have account you cetera. taking royalty that way per operator reserves. appropriate a -- sort is overhead, reserve that gone purchase stream their valuing about yes, revenue, granularity, the life a it. I the know make they way gets obviously your the into costs basis that NOI look reserve revenue our that's the think at could of would account You not we tonnage the so a our factors multiple that apply value probably with into purchase. But -- et to my values just lands. and the way EBITDA, take or don't is multiple on A into they stream, make we have our and when of mining But does second value -- -- into part EBITDA NOI. an but to way into

mileage may life. the a your so And to on vary how you second apply value

them you the promise account of nothing that. multiple off them like lot I are could future, a takes up are way coming in EBITDA near-term that and lot a So of but into

the on would an correct using you that So be but multiple in and the undervalue royalty -- put would certainly your own royalty lands. value thinking it, EBITDA

Bill Chen

mean shareholder I was a been and like of lot a -- XXXX, mean since years. it's I I I've been

out So done. and So $XX one that mean an like has Martin EBITDA XXXX could the worn Martin that acquisitions, EBITDA recent machinery acquisitions. I've then Versus CapEx really right would Vulcan Like the and I in royalty million -- Marietta less spit more I under There's There one replace ], seen been right? Marietta. there's been [ to CapEx want to it's flow, because what total like this multiple grown, has business argue asset is this business. only the I CapEx it's number for no down, out have of of cash and X number like right? that the or be like that that gets what bring X/X number? in

to a need -- is you less you or X/X an kind get get EBITDA of like right, structure, -- for FRP's like multiple EBIT So of apples-to-apple the to a CapEx, really like EBITDA seen definitely like like multiple is then EBITDA, a if like your any so multiple been multiple the is CapEx I is CapEx with true EBITDA X less using like EBITDA shareholder really royalty conservative, like because haven't now. too years CapEx

I like day... that, to right it get and on thought looking like of I'm of the your at way like So the end at just want kind the if

John Baker

of an idle to to interesting that's would a think that about on I we more. it. think kind That's need way just And bit insightful. little

Bill Chen

multiple lot -- pleasantly sort real in and depreciation not real at multiple of to is -- like the reflective day, and being consistently to has asset inherently figure of do your business more investing it's that of BCF, like, because the company me think this I've an has end like is sort I the in out trying aggregate new right? -- think an accurate to owners what measure. just any the is or lot of a is times, a perks Yes, of any and been I'm better At estate is, CapEx than earning, an EBITDA earning of less it's very just shareholder the I'm surprised trying a a way like like And way just And owners like the surprises been what multiple isn't EBITDA yes. upside. of I EBIT like

proof there. So thought just of some

David deVilliers

of appreciate can continue for your to -- we and relationship. and the all continue you that, thoughts. on Bill. the stay build -- we obviously, Thank We it's appreciate And course to hopefully,

Bill Chen

guys. Yes. Yes. anywhere. not I'm I'm going not going anywhere,

deal to have time. for a will guys me You long with

David deVilliers

have. a to problem us for That's great

Bill Chen

no a in it minor stock. won't creates I I sell liquidity so there's anything, the that mean, problem

David deVilliers

candor, your we do. your your really Appreciate support, the royalty and all

Bill Chen

all and Yes. I that's comments questions and have. the do, guys you appreciate I everything

Operator

take question our from Ratner, investor. next private will We Bill

Unknown Attendee

cash things of for earmarked is that other bit how the discretionary wondering investments? I if is balance, out was much could share freely of versus essentially what just for you like capital and available types flesh repurchases a

John Baker

we and share ballpark obviously terms capital we XXXX. But stock expenditures we to a for obviously capital meaningful cushion, The believe the kind share make to the $XX have pretty I earmarked program. of repurchase have want we will price dictate million keep healthy of repurchases. plans in And XXXX. for of in extent any Bill, which beyond

that to going would repurchases. going -- put it's to to it's a in going we developing back to opportunistically have be go -- to We're we terms think into chance, blocks major into of share opposed if not but compared development. capital, all as what assets I nibble meaningful to of we a amount

Unknown Attendee

the to assets, the second aggregates NAV And that analysis. into your with respect then don't you value said you in life factor

that second-life you what value, second life would you appropriate an to valuation assets? If you include can provide for were any be think parameters your around

John Baker

think raw and that wouldn't line I time The a I going it we're would [indiscernible]. -- it's just well. And Yes, land from anything and entitlements Lisa and of sky you give were in zoning Brookville permitting, on be number. essentially through reality. the to that's Fort mind in just if Fort It's terms number, I ways in so nebulous it and of think based the like Myers Bill, like be a long pie as a so that to Myers and given those events. X away come

to sort on. we base nothing So of have it

right guess. So now to we prefer not

Unknown Attendee

be pretty to value that think second-line process, land as costs would comment your the entitlements, more might is far the Or that... the just out as might so much future suggesting be that Is it around perhaps investors relative in not there it's the value? entitlement involved because significant

John Baker

[indiscernible].

Unknown Attendee

Okay.

Okay. Yes.

And Okay. one then last question.

to Going questioner. previous the back

very high companies, at very and at look multiple. like stocks this high comparable you of stock Martin Martin a trading Marietta are companies And these if seemed transaction So Marietta valuations.

pretty opportunistic continue appears to Can just comment you them guys and You monetizing you very on assets? of a to why are opposed clearly these types assets for robust these as what own investors. to would environment be

John Baker

That's an interesting question.

going valuations at good income accelerated the are, a the they've And look just think growth that stream as bet to them I the you present pushed price, think outpacing I on value. we're to take our the Martin of as way the at if it. know pouring for not EBITDA that appetite point, way reserves tenants already that's don't I multiple royalty look any or our stream control. to they money the slapping or of into on Vulcan that maybe a appropriate And other Bill's

just generate asset had I after-tax the pay that and of make. be tremendous mean, they with that That's is also happy the fuel are. just I are. money sell on And things debt the is flow -- And mean $XX certainly I if have we transaction an from We from they a taxes we redevelopment. to we -- debt perspective, source best kind million been assets. to are not think would $XXX with way a liquidity, everybody Maybe certainly engine no to of it. -- a use but just on of a the cash desperate a those year million it the

want that So you happy stream those we're way with if really all income I think it to the we're is. valuations But pay years. for them,

Unknown Attendee

the that -- just don't in process. it a and maybe months you Well, And out already a me they of been like know and an hire likelihood you banker from the go control your XX seems ago, like environment XX to changed point, market But finding the might until run to it perspective. to but seems has assets. a the bid there, not maybe market have my good

but hire never you know a So what's you until banker. the point,

John Baker

Very true.

Vulcan, Martin they assets, would it. buying if we know appetite had to for think those and relationship we'd hear our I an probably about given just

we that just purchase the to were already to put able controlled. policy our they money into Vulcan, want the that of Astatula, didn't and accomplish with because the as property, they of relationship Blandford reserves

in they want buy wanted -- think correct you it. about ask, to buy them second, are I don't that the if they going hear we're You get, them, to but don't to

Unknown Attendee

Got you it's Appreciate explanations, very thank it. you. Well, helpful.

John Baker

Yes, follow quick on aggregates, real up on an that high. XX the absolutely, been just historically for to valuations have EBITDA basis last Bill. And years.

and would growth have X ago, it we royalty sell stream. forgone incredible if XXx, so let's have years really said, at And our things. looked -- Vulcan's obviously, a at in could we And trading these we

It's industry. changes, aggregates So to continue Bill, use our flow that the development. we're to very stream, cash We'll seriously unless to -- blood. something in fuel on we're going long

Operator

It to presenters we no back appears questions for closing that have over further now this turn any time. the program at or additional our I will remarks.

John Baker

his the of Board well-deserved has given He Jr. congratulate its become honor. Before to this a David Chairman. is I of what we Vice want deVilliers, as company. to the election company Directors just to it's David professional life has this and yesterday go, on backbone his

the congratulate So continued thank him. I I and I to you the just appreciate want you And questions want appreciate and really to all. all We had. investment interest company, your in

So this thank that call. you, concludes and

Operator

This you at you may participation, time. Thank any today's your does for conclude disconnect program.

FRP (FRPH) 7 Mar 242023 Q4 Earnings call transcript