FRP Holdings, Inc. Announces Results for 4th Qtr & Year Ended December 31, 2017
FRP Holdings, Inc. (NASDAQ-FRPH) Jacksonville, Florida; March 7, 2018 –
Fourth Quarter Consolidated Results of Operations.
Net income for the fourth quarter of 2017 was $13,203,000 or $1.31 per share versus $1,682,000 or $.17 per share in the same period last year. Fourth quarter 2017 net income included $12,043,000, or $1.20 per share, due to 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 $12,455,000, up 30.9%, versus the same period last year, primarily because of the addition of rental revenues from Dock 79. Fourth Quarter Segment Operating Results. Asset Management Segment: Total revenues in this segment were $7,816,000, up $495,000 or 6.8%, over the same period last year. Net Operating Income (NOI) in this segment for the fourth quarter increased slightly to $5,813,000, compared to $5,689,000 in the same period last year. NOI growth lagged behind revenue growth due to several factors. Revenues inclusive of reimbursables and unrealized rents have increased over the same period last year as a result of new buildings and increased occupancy. However, cash-based NOI as calculated by the Company excludes unrealized rents which are the result of “straight-lining” rental revenue over the life of a lease, i.e. averaging the total rent of the lease over the term. Thus, though revenue as calculated by GAAP may be up because of new leases, cash-based NOI is not as positively affected because the actual cash rent paid by the tenant in the beginning of a lease is less than the GAAP-based straight-lined rent. We ended the fourth quarter with total occupied square feet of 3,707,724 versus 3,488,955 at the end of the same period last year, an increase of 6.3% or 218,769 square feet. Our overall occupancy rate was 93.1%.
Mining Royalty Lands Segment:
Total revenues in this segment were $1,860,000, a decrease of 1%, versus $1,880,000 in the same period last year. This drop is due to decreases in tonnage at several locations because of down days associated with the hurricane along with volumes returning to normal levels at Keuka and Newberry Cement, among other factors. Total operating profit in this segment was $1,696,000, a decrease of $12,000 versus $1,708,000 in the same period last year. 2 In November, Lake County commissioners voted to approve a permit to Cemex to mine our land in Lake Louisa. We expect the county to issue the mining permit during the third quarter of 2018. After an environmental survey and completing the work necessary to prepare this site to become an active sand mine, Cemex expects to begin mining by the end of 2019.