NASDAQ$FRPH

Frp Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced results for the second quarter ended June 30, 2023.

FRP Holdings reported net income of $598,000, or $0.06 per share, for the second quarter of 2023, compared to $657,000, or $0.07 per share, for the same period last year. The company experienced revenue growth in its Asset Management and Mining Royalty Lands segments, while the Stabilized Joint Venture segment saw a decrease in pro-rata net operating income due to the sale of a 20% TIC interest.

  • Net income for the second quarter of 2023 was $598,000 or $.06 per share.
  • Asset Management segment revenues increased by 55.7% due to full occupancy at 1841 and 1865 62nd Street and the addition of 1941 62nd Street.
  • Mining Royalty Lands segment revenues increased due to increases in revenue at nearly every active location.
  • Pro-rata net operating income in the Stabilized Joint Venture segment decreased by 10.3% due to the sale of a 20% TIC interest.

Headline financials

Total Revenue

$10.7M

Previous: $9.63M+11.1%
EPS (adj)

$0.03

Previous: $0.04-25.0%
Pro Rata NOI

$2.15M

Previous: $3.53M-39.1%
Capital Expenditures

-$979K

Previous: -$13.8M+92.9%
Free Cash Flow

-$381K

Previous: -$13.1M+97.1%
Net Income

$598K

Previous: $657K-9.0%
Operating Income

$2.77M

Previous: $2.07M+33.9%
Gross Profit

$8.87M

Previous: $8.09M+9.7%
Cash & Equivalents

$167M

Previous: $159M+4.6%
Total Assets

$700M

Previous: $677M+3.4%

Revenue & EPS history

FRP · Revenue · Quarterly

$10.7M

Q2 2023+11.1%vs Q2 2022

Revenue by segment

FRP · $10.1M total across 3 segments · Q1 2026

  • Multifamily
    $5.2M
  • Mining Royalty Lands
    $3.72M
  • Industrial and Commercial
    $1.2M

Forward guidance

FRP Holdings faces challenges from inflation and rising interest rates, which impact development margins. The company benefits from increased rents and royalties but is cautious about multi-family development due to the need for construction loans. FRP plans to delay vertical construction in its partnership with SIC and MRP until lending markets improve.

Tailwinds

  • Can use cash on hand to finance warehouse construction on an all equity basis.
  • Can develop in-demand industrial product while the interest rates on construction loans keep most development on the sidelines.
  • Royalty revenue for this quarter was up 13% over the same period last year.
  • Riverside in Greenville has maintained strong occupancy (95.42% this quarter) post stabilization.
  • Occupancy and overall square-footage have increased since the second quarter of 2022, leading to a 39.2% increase in NOI for the first six months compared to the same period last year.

Headwinds

  • Inflation and the upward pressure on interest rates remain an obstacle for any developer.
  • Compression of future margins from hard costs and financing is a real problem for development.
  • In the instance of multi-family development, where a construction loan is an absolute necessity, we will in all likelihood sit tight for the time being.
  • Pro-rata NOI is down for the segment for both the quarter and the first six months, which is to be expected after selling 20% of our share of Dock 79 and The Maren to SIC.
  • The effort to get Dock 79 back to where it should be is largely responsible for the flattening in rental increases (3.20% in the second quarter vs 4.52% in the first quarter) as well as the 3% loss on trade-outs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.3%

Avg return

Earnings day

+0.8%

Avg return

5 days after

-0.0%

Avg return

30 days after

51%

33 / 65 earnings

Positive

+11.5%

Q1 2013

Best reaction

-6.8%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.6%+5.3%
Q4 2025-2.0%-5.5%-8.7%
Q3 2025-4.5%-1.4%-3.4%
Q2 2025-6.8%+0.3%-4.2%
Q1 2025+1.2%+0.0%+1.4%
Q4 2024-3.6%-9.2%-9.9%
Q3 2024+1.3%+4.1%+5.4%
Q2 2024+4.7%+1.7%+0.6%
Q1 2024+1.2%-1.8%-2.3%
Q4 2023+1.9%+1.1%+0.9%
Q3 2023+1.3%+3.7%+8.0%
Q2 2023-1.0%-2.7%-3.0%
Q1 2023+2.5%-3.8%+6.6%
Q4 2022+9.7%+4.1%+6.8%
Q3 2022+0.1%+3.0%+5.4%
Q2 2022+2.4%+1.8%-0.9%
Q1 2022+1.9%-0.4%+1.9%
Q4 2021+3.3%+1.7%+4.3%
Q3 2021+7.1%+12.0%+0.1%
Q2 2021-2.4%-0.4%-3.6%
Q1 2021+8.4%+13.8%+16.1%
Q4 2020+8.0%+7.9%+2.6%
Q3 2020-2.1%+4.5%+1.4%
Q2 2020+1.9%+5.9%+2.2%
Q1 2020-1.2%-2.6%+1.6%
Q4 2019+2.3%-7.1%-14.4%
Q3 2019-1.3%-3.5%-1.9%
Q2 2019+0.1%+1.4%+1.0%
Q1 2019-5.2%-3.7%-4.7%
Q4 2018+0.4%-0.8%+1.3%
Q3 2018-0.7%+0.5%-10.4%
Q2 2018+2.4%-1.5%+1.2%
Q1 2018-1.3%-2.9%-0.3%
Q4 2017+1.3%+2.4%+1.5%
Q3 2017-0.6%-0.8%+1.1%
Q2 2017-1.1%-0.2%-1.1%
Q1 2017-2.2%-1.9%-3.2%
Q4 2016+1.8%+3.8%+3.3%
Q3 2016+0.9%+0.6%-3.7%
Q2 2016-1.7%
Q1 2016+3.5%
Q4 2015-4.7%
Q3 2015+5.2%
Q4 2014-4.4%
Q2 2015+2.8%
Q1 2015+4.4%
Q3 2014+1.8%
Q2 2014-0.6%
Q1 2014-1.2%
Q4 2013-0.5%
Q3 2013-2.8%
Q2 2013-5.1%
Q1 2013+11.5%
Q4 2012-2.1%
Q3 2012+1.7%
Q2 2012-1.5%
Q1 2011+3.0%
Q1 2012+2.2%
Q4 2009-5.6%
Q2 2011-5.6%
Q4 2011-5.6%
Q3 2011-2.8%
Q4 2010-2.8%
Q3 2010-2.8%
Q1 2010-0.7%

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