FRP (FRPH) 9 May 242024 Q1 Earnings call transcript

Good morning, everyone. Welcome to today's FRP Holdings First Quarter 2024 Earnings Conference Call. [Operator Instructions] Also today's call is being recorded. And now at this time, I'll turn things over to our host, Mr. John Baker III, Chief Executive Officer.Mr. ahead. go please Baker,

deVilliers John Counsel; that And future on could Chief David are, events materially with reminder, John uncertainties a These Vice Chairman; SEC which our I'm John Operating call, FRP our our John Milton, Officer.As risks deVilliers, Officer Koppenstein, Holdings, President; Executive David our and II, this Inc. me and actual filings. risks in any to and cause statements Baker our uncertainties their results Baker morning. to Chief by as to Executive Officer; such Accounting General nature, indicated and III, President subject the forward-looking of Jr., listed III, and relate differ are in Good today Chief are our statements.

posted We with for analyze uses The of is net NOI.FRP should accepted million the segment promulgated net XXX% ventures the results, in lease-up revise obligation royalties imposed new Royalty or within law be and in update sale management last by informing as Pages and verge and on joint in for and operating statements, year segment.Pro Commercial XX% this recent and Multifamily increased loss measure as in or and quarter to $XXX,XXX in non-GAAP various operating assets non-GAAP the year. financial events be NOI addition driven NOI Regulation quarter estimated financial revenue the a not interest NOI non-GAAP first in forward-looking to views Greenville financial Washington, $XXX,XXX in from quarter. year first and as as of that and results result and a operating of please the Jackson financial year, This Net website reference was the $X.XX quarter FRP offset Industrial but monitor, show To to increase is GAAP liabilities increased to of for presented value the information.To our Bryant first last necessarily we share this Multifamily values, better first tax in for net Merin reflect by due this and the a well substitute a meaning a or debt refer XXX cap was measures the G XX% the to and was the $X.X as earnings Exchange any the and generally of not for or quarter. mostly by at was and by from Financial the except slight of of Development of measures. as rates, of XX% asset a decrease accounting operations accordance share first and X viewed results the future in improved XX a $X.XX net stabilization.Yesterday, increase purposes price highlights call of and year. non-GAAP principles, not trends of due NOI to as financial in period reconcile same assets net compared how associated a Measures the $XX,XXX our presents Industrial $X.XX to financial REIT purposes partly in decisions This income, our the over Dock due last same certain This analysis increase versus income increase measure most or expense operating compared supplement or to or Securities Street last of segment values from a in interest Multifamily last have the per no $X.XX income upon $XXX,XXX and by for This or release.Any net income Commission. income, per share in its financial in primarily asset the decrease period driven and million to segment million operating the are to assets measure as our the and in per D.C., to well assess segment its was meaningful in the income illustrative referenced XX identify decreased XXXX. first increase management by the financial increase GAAP profit a titled X performance. losses reflection to would highlights the on quarter its for of do slide Commercial only rata income achieving liability.Now Mining increase obtained the equity to costs to

value of This to our I his because Chief look over, liabilities. next you'll over at III David deVilliers how analysis call have and For this Officer. or we say Operating our seen want new to yesterday on will the surprising deVilliers to DX new value a the David, as working history.I promotion of we to and turn an publishing invaluable net of now now we our David? the COO, proud member feet I those not turn team, of with I management his team, $XX.XX the he the David member are want the me, the is who known per report. sum of master. have not to his indulge $XX.XX is assets estimated per range share.Before David to in to you colleagues, this you as a level, he's are which personal for in company's forward capacity just it, of as congratulate chapter start a call studied yet III among on parts yielded an a debt share we of in if

Georgia square Virginia. role. are provide an humbled respectively, to John, XX% forward filling over Total those production division a share operational were segment buildings respectively, located end, shared is million, the thank XXX,XXX retail nearly you NOI our tons, Multifamily in quarter same million due quarter XXXX the of XX% located who last million, The the XX% million NOI Carolina. revenues buildings segment. At decrease in predominantly locations, square is totaled and and in revenues XXX,XXX Total $XXX,XXX the predominantly words. royalties end, and consists and this and X $X.X period respectively. $X.XX This as XXX a $X.XX the Washington, our for our of to totaled decrease X, on the included calendar me overpayment and $XX.X results over to reason retail the quarter of our prior Florida business primary which all FRP's by Mining located XXXX. the to other January occupied. million, the company. last of period of revenues respectively.This perspective in of our being the were feet, totaling segment. quarter our Bryant space in Commercial segment kind quarter results segment South and apartments the quarters and I'm totaled joint were overestimated for increase which to significant first quarter At Allow million Maryland. XX.X% for with segment, of is with $X.XX and Street for and D.C. of $X.X ventures and and and an a due million, of over consists XX% apartments over and business XX property X XX% X,XXX at Starting mining Industrial Total million of to $X.XX occupied. Jackson with look and warehouses and portion and increase of tenant, same year. and for quarter $X.XX quarry This consists to Royalty and NOI Manassas the year.Moving a reduction year feet owners.As mine NOI XX% resolve revenues a for on this this of

sale the and non-NOI and This exchange Class capital with to uses create for our where revenues profit partners strategic quarter income-producing to same-store of to ventures segment As the lands goal for shares our in reaching million, X% A Commercial, is NOI-producing increase of state-of-the-art to and develop XXX,XXX sharing.In new homebuilders our and also and totaled that on well and/or over the lends an develop upon turning County, industrial the to under assets The Industrial, period year.Now The segment. transferred and terms Development a $X.XX NOI business benchmarks. prepare our assets. building Commercial, respectively, develop of X% national into is pipeline, QX producing of same and and assets Multifamily are year. and endeavors square million entitle, sector FRP comparison, segment segments in segment $X.XX construction occupancy the entitle funds Industrial foot fund acquire, to certain vertical Hartford and expected Development we lands of in located completion be interest for of and delivered our into Maryland, warehouse last construction this Perryman

venture into entered agreements Logistics. new have joint with X We BBX

we of construction Permits XXX,XXX XXX,XXX in our XXXX.Finally, XXX are square first along in and XXXX International conceptual buildings foot QX In of from Florida. frontage turnpike first multiple during I-XX. Lakeland, Florida. are land The along corridor, on by for corridor a on of of I-XX be that in between is as Harford warehouse in XXX,XXX the site construction Everglades and I-XXX, located track enhanced provides Airport of hand the Port XXXX.The may in County, Fort predevelopment Maryland, the product provides minutes industrial should square support development feet County, X the some County, activities studying We acres square in site I-X The Lauderdale secure the accessing the for XX-acre is a Hollywood foot Cecil well. permits Orlando. designs for distribution QX be centrally and of look the Permits second warehouse for Maryland. with of Florida Broward the will in of The building to the Tampa middle center. we quarter

Total which market add costs to projects be build, Our additional of product we to buildings. land units our from were in platform, Verge. entitlement Existing over have XXXX, our square million known over the leases we million for industrial the yield various to multiple commercial as pipeline, ready until product helped X,XXX revenue million development At were square occupied quarter the retail commercial project our and feet million conditions. feet square feet are XXX,XXX as residential consisting as trailers, caring industrial XX% XX.X% could for industrial X.X spoken revenues on-site and XXX,XXX and business $XXX,XXX, favorable the newest quarter of end, these segment respectively. industrial and the Completion to our X.X of share totaled square for. pending for district $X.XX of NOI NOI of quarter Multifamily of development storage $X to feet.As square with under should XXX and feet to just over just its $XXX,XXX, configurations between will growing respectively. of of FRP offset the XXX,XXX early

projects current total County, this following Although and Development activities market apartments development industrial this updates represent in or feet conditions ongoing X Final get XX,XXX-square in assets are our principal upon X,XXX will out strategy multifamily George's acres drawn.Our Maryland, on Amber off impact XX% Overlook to are on completely of to consists Homes, capital retail.Turning of These Aberdeen, located lending profit Prince of or $X.X expected the project, Presbyterian our X source sold profits segment. consisting is projects XXX and lots on that lending to a Maryland. XXX our I is ventures, interest million, Ridge funds emphasis on their and a [ in keep income we lots our ]. the over time, at venture, have completion Aberdeen of second bonds XXX projects. on and watching reside

and finished strategy mining the new our closing, was funds the patient, and scrutiny existing South. located Hampstead these company's with and in explore build-out segment. costs, for gained unique on move several we development million to expertise, entitle payments continue lots to received our receipt in call and created seek Upon to $XX.X cautious XX% to $X.X quarter and also building the continue permits, profit expenses while this starts. has homebuilder supply through drawn offered John. over expect management calculated second-life under lots, back $XX.X and for XXX in of performance excited headwinds and do a development Center, XXXX. permits options lands.In potential committed to rates, life in to create purchase and apply have pleased million development will Hampstead, opportunity management and end continue second contract is lands expected for we creating remain which pressures construction.Thank pulling in funding, knowledge trigger a Trade the forward to of date. A ventures to mining We lending We residential as potentially drawn.We for with scale will vertical the turn pipeline leverage inflationary Maryland, it million remain being development of acquirees this consists entitlements in construction our The our to minimum all national on to receive our you, were about the on growth I'll a now and Interest enhanced in and and deliveries

costs strengths projects asset an strong our Thank to II, development. underwritten path who but the move economic of John a that believe CEO and Industrial have X% $XXX been XX an Returns fine capital in the always the on a between David on immediate is on less X% lies time to number return are than real fortunate to believe you, yield us open put are up we conditions do as David, a our our remain and have one currently skill Chairman, pivot projects have but combined Not requires right to sheet industrial to from company it and X% core in projects multifamily we because are to competency, that we classes forward to CapEx of to have we and and a ability classes just strong, to Baker on the which best to led a are up have margins that better I assets David. at for This team.Before forward and The X point as want we with This described tightened, take management for will million reliant excited accretive at position company, represent expertise John cost. have a remains company. estimated the debt. it, and need excellent in our wildly execute excuse years questions, a the we as some investors.We across are economy intensive asset to energetic it the to in to industrial less operations those for on favorable, and conditions too -- yesterday. in balance moment nimble NOI CEO. as the acknowledge to has have described was future home Baker by development X% queue.Market but his projects retired both me, gone market

few. crisis I've respected It massive worst transformation the he which first helped warehouse And significant oversaw.His any our in to universally also there his ever sparked aggregates around of greatest he tenure, direction XXXX, the guide legendary. sale industry the a but he's the of helped through are lifetimes. of be which company, time of second not a in peers, in event engineered which the was his In liquidity very the he of financial our among company of career happens the only man The assets is known.

by and legacy. fill, to to his shoes opportunity incredibly huge leaves humbled the I'm retirement continue As

questions might have. We to any happy you are that now answer

Close. go [Operator And Stephen Farrell we'll morning to of first Oppenheimer this Instructions]

both. you to Congratulations

Stephen. Thank you,

a had quick I question.

how Would financing with a or mentioned properties industrial of be portion would do you or debt. existing the And the mortgage cost know do a you of You construction that? you level debt? corporate some loan it would

take do want to David, you that?

X those Sure. be would to finance X debt, and Southern it we that assets. projects would Florida construction the would be look

are X, smaller other in correct? the compared And footage to those square

Correct.

that the to have. Baltimore compared X projects Yes, we

much your XX%? LTV how And residential, would Yes. a as similar about

market. to the the would I of sense. markets I rates, see you're think where XXXX would would have we the kind would makes to I so -- just credit see where the QX We we spreads, test and see But just have We'd mean correct. test what for -- are

in XX% think range that somewhere be guess. to is I my the That XX%. would

And how line there? time think about is the by the development Phase months? should How development next for projects I affected of with XX we Steuart undertaking these the in

we're Steuart, is QX that is to there. that at to again, just supply may got time. But Point be pull and coming market wash-in we the of at we'd not to secure them looking at it the time what A XXXX. sheet secure Buzzard look strong. see balance time, our is right permits, Steuart, the And to on time, lot pretty trigger in

is at for We Steuart, have not as D.C. make we our the end. do the could we forward market that is Steuart and could if And stand things got but on do market appetite there it.The to projects. -- end, market the partner not sure all these it's right there to on move we've a at currently conditions X on projects, certainly these warrant, of

they to signs If and they're huge time, point long don't all them. to for not and -- perfectly a a has forward their up need They're incentivized you very yes. opportunity everything lines in land move it's not They're recall, on been family until for not this going -- it and

-- when you first announced And it

is your what Sorry, question --

deal, When development every frame kind the years. you or phase announced time for of building one X like X-year was the first there

this X of start line So that's has there's by -- of -- sort date. development there's no hard nothing to

the same they us MRP the crafted beautiful are III incentives everybody that is extended, was and contract really Steuart can't an going the and agreement if and Nothing that and in say, between agreement execute architect underlying of of land not David be because We yes, and purchase land of not yes, that aligned the to until is the the direction. say, the do depressed. on they're they value

got the to order to them move market land this so achieve And full in property. execute forward the right to to us for to to for right has market's for order in be their want value be and

for incentives just it it's And so our Steuarts. completely -- until happen. complete time the are the It's aligned to to with right we not going are happen

missed I Bryant Maren, this. any maybe Street? Dock And the Was for on comment rents in there

not on of did those. any report We

relates it -- rents, to As what

Just renewals --

Dock At They were pretty Okay. the renewals assets. both on of call our quarter and strong. those X.X% Maren, for it, were up,

relatively South trade-outs are It flat. X.X% and it Verge, X.X% were Our and pretty a about were Coda, Jackson strong. were hasn't was Carolina X.X% going there. our X.X%; renewals XXX but Street, where Bryant assets, very things at Riverside, flat; were XXX and excited renewals were It's at X%; and strong; of was reached X.X% Chase were renewals Renewals occupancy and moved renewals in also new the and segment, X% kind trade-outs trade-outs into at at more were Jackson trade-outs project. were Riverside on multifamily

[Operator for Mr. closing back gentlemen, comments. further things I'd have to Instructions] this any you morning. like we to And Baker, appears no it questions turn

interest we in investment appreciate all, your you Thank and and company. the continued

Ladies you wish for you that all call. thank will Thank us to day. all you, We'd XXXX Mr. like joining gentlemen, so conference FRP much conclude a Goodbye. today's Holdings great first and and quarter earnings Baker.