Targeted Stock: FRP Holdings, Inc. (NASDAQ-FRPH)

On 21 May 2019, FRP Holdings, Inc. (NASDAQ-FRPH) shares price traded between $48.12 and $52.01 during the last trading session above/below with +0.96% at $48.39. The shares recorded a trading volume 7,780 shares as compared to its average volume of 14,058 shares. Over the one year trading period, the stock has a peak price of $67.70 and its down is recorded at $41.51.

FRP Holdings, Inc. (FRPH) stated Results for the 4th Quarter and Year Ended December 31, 2018

Fourth Quarter Consolidated Results of Operations

Net income for the fourth quarter of 2018 was $706,000 or $.07 per share versus $13,203,000 or $1.31 per share in the same period last year.  Income from discontinued operations for the fourth quarter of 2018 was $20,000 or $.00 per share versus $6,034,000 or $.60 per share in the same period last year. The fourth quarter of 2017 included a reduction of $12,043,000, or $1.20 per share, in the provision for income taxes resulting from revaluing the Company’s net deferred tax liabilities per the Tax Cuts and Jobs Act of 2017.  This positively influenced net income by the same amount.

The fourth quarter of 2018 was influenced by the following items:

  • Interest income is reduced by a $905,000 realized loss on the sale of bonds during the quarter.
  • Corporate expense includes $372,000 for the yearly director stock grant and $100,000 for stock options granted to employees.
  • Operating expenses includes $218,000 professional fees related to organization of the Bryant St. joint venture.
  • Operating expenses include $276,000 in due diligence costs on the CSX Fort Smallwood potential purchase.
  • Interest income includes the $81,000 preferred return on The Maren.
  • Loss on joint ventures includes $64,000 for our share of the loss.

The fourth quarter of 2017 included consulting fees of $200,000 charged to discontinued operations.

Calendar Year 2018 Consolidated Results of Operations

Net income for 2018 was $124,472,000 or $12.32 per share versus $41,750,000 or $4.16 per share in the same period last year.  Income from discontinued operations for 2018 was $122,129,000 or $12.09 per share versus $11,003,000 or $1.10 per share in the same period last year.    Interest income was reduced by realized losses on bond and bond fund sales of $1,195,000 in 2018.  Calendar year 2017 included a gain on re-measurement of investment of $60.2M in the Company’s Dock 79 real estate joint venture as a result of the asset’s stabilization and the ensuing change in control of the joint venture for accounting purposes.  This change in control brought with it this substantial and non-taxable gain.  The gain is based on the difference between the carrying value and the fair value of all assets and liabilities in the joint venture and is included in income from continuing operations before income taxes.  Calendar year 2017 also included a gain of $12,043,000, or $1.20 per share, Because of a reduction in the provision for income taxes resulting from revaluing the Company’s net deferred tax liabilities per the Tax Cuts and Jobs Act of 2017. 

Total revenues were $22,022,000, up 41.1%, versus the same period last year, primarily because of the addition of rental revenues from Dock 79 when its results were consolidated starting in July 2017.

Calendar Year 2018 Section Operating Results

Asset Management Section:

Total revenues in this section were $2,309,000, up $25,000 or 1.1%, over the same period last year. Operating profit of $898,000 was up $17,000 contrast to the same period last year.   

Mining Royalty Lands Section:

Total revenues in this section were $8,139,000 versus $7,241,000 in the same period last year.  Total operating profit in this section was $7,290,000, an raise of $725,000 versus $6,565,000 in the same period last year. 

Stabilized Joint Venture Section:

Average occupancy for 2018 was 94.77%, and at the end of 2018 Dock 79 was 96.39% leased and 95.08% occupied. Through calendar year 2018, 58.40% of expiring leases renewed with an average raise in rent of 3.29%.  Dock 79 is a joint venture between the Company and MRP, in which FRP Holdings, Inc. is the majority partner with 66% ownership.

The company jumped 1.66% in past week and declined -7.28% in one month. During the past three month period the stock dropped -9.01% and decreased -0.23% in past six month. During the twelve month it lost -15.70% and year to date performance of 5.17%.

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