FRP Holdings, Inc. · NASDAQ:FRPH

FRP — Investor Day (September 2021)

61 slides from FRP's investor day presentation, Sep 15, 2021

  1. Slide 1: 2021 Investor Day

    FRP HOLDINGS, INC. 2021 INVESTOR DAY SEPTEMBER 15, 2021 1

  2. Slide 2: Highlights for the First Six Months

    FRP HOLDINGS, INC. HIGHLIGHTS FOR THE FIRST SIX MONTHS (in 000’S) SIX MONTHS ENDED JUNE 30, 2021 JUNE 30, 2020 REVENUES 23.3% $14,348 $11,632 OPERATING PROFIT -35.8% $1,283 $1,998 NOI 22.9% $10,219 $8,316 NET INCOME CONTINUING OPS 393.4% $28,455 $5,767 (After-Tax & Non-Controlling Interest) 2

  3. Slide 3: Trailing Twelve Months Highlights

    FRP HOLDINGS, INC. TRAILING TWELVE MONTHS HIGHLIGHTS (in 000’S) TTM ENDED JUNE 30, 2021 JUNE 30, 2020 REVENUES 12.8% $26,299 $23,311 OPERATING PROFIT 3.0% $4,419 $4,292 NOI 17.9% $18,954 $16,072 NET INCOME 246.4% $35,403 $10,221 (After-Tax & Non-Controlling Interest) 3

  4. Slide 4: Highlights for the First Six Months

    FRP HOLDINGS, INC. HIGHLIGHTS FOR THE FIRST SIX MONTHS (in 000’S except EPS) SIX MONTHS ENDED JUNE 30, 2021 JUNE 30, 2020 EARNINGS PER SHARE - diluted 413.6% $3.03 $0.59 NET CASH PROVIDED BY 20.3% $10,963 $9,110 OPERATIONS SHARE RE-PURCHASES -97.9% $264 $12,354 4

  5. Slide 5: Trailing Twelve Months Highlights

    FRP HOLDINGS, INC. TRAILING TWELVE MONTHS HIGHLIGHTS (in 000’S except EPS) TTM ENDED JUNE 30, 2021 JUNE 30, 2020 EARNINGS PER SHARE - diluted 258.1% $3.76 $1.05 NET CASH PROVIDED BY -56.7% $20,466 $47,273 OPERATIONS SHARE RE-PURCHASES -39.5% $9,222 $15,252 5

  6. Slide 6: Stabilized Joint Ventures Maren Book-Up/Conversion

    STABILIZED JOINT VENTURES MAREN BOOK-UP/CONVERSION • Total FMV @ Conversion: $151.4M • FRP Cost Basis: $94M • Ownership Interest: 80% → 70.41% • Book-Up of Noncontrolling Interest: $14M • Net Increase in FRP Equity: $37M 6

  7. Slide 7: Balance Sheet Excerpts

    FRP HOLDINGS, INC. BALANCE SHEET EXCERPTS (in 000’S) 6/30/2021 12/31/2020 Assets: Net Investment in Properties $ 346,110 203,140 Real Estate Held for Investment, At Cost 9,429 9,151 Investment in Joint Ventures 144,938 167,071 Net Real Estate Investments 500,477 379,362 Cash and Cash Equivalents 138

  8. Slide 8: Balance Sheet Excerpts

    FRP HOLDINGS, INC. BALANCE SHEET EXCERPTS (in 000’S) 6/30/2021 12/31/2020 Long Term Debt 178,334 89,964 Deferred Income Tax 65,379 56,106 Other 9,254 7,637 Total Liabilities $ 252,967 153,707 Total Shareholders’ Equity 396,561 367,654 Noncontrolling Interest MRP 31,724 14,999 Total Equity $ 428,285

  9. Slide 9: Business Segments

    BUSINESS SEGMENTS MINING ROYALTY LANDS STABILIZED JOINT VENTURES ASSET MANAGEMENT DEVELOPMENT 9

  10. Slide 10: Mining & Royalty

    MINING & ROYALTY a0)

  11. Slide 11: Mining & Royalty Segment Overview

    MINING & ROYALTY SEGMENT OVERVIEW • 13 PROPERTIES TOTALING 15,000 ACRES • 12 PROPERTIES IN FL & GA; 1 IN VA • AS OF 12/31/20 TOTAL RESERVE 506,000,000 TONS 11

  12. Slide 12: Mining & Royalty Highlights

    MINING & ROYALTY HIGHLIGHTS • HIGHEST REVENUE TOTAL FOR FIRST QUARTER, SECOND QUARTER, FIRST SIX MONTHS, AND TTM IN THE SEGMENT’S HISTORY • INCREASED MINIMUM RENTS • INFRASTRUCTURE BILL COULD PUSH TONS BUT WILL HAVE A BIGGER IMPACT ON PRICES 12

  13. Slide 13: Mining Royalties Revenue Highlights

    MINING ROYALTIES REVENUE HIGHLIGHTS (in 000’S) REVENUES JUNE 30, 2021 JUNE 30, 2020 Q2 9.65% $2,634 $2,402 FIRST SIX MONTHS 7.88% $4,949 $4,587 LTM 7.37% $9,839 $9,164 13

  14. Slide 14: Mining Royalties NOI Highlights

    MINING ROYALTIES NOI HIGHLIGHTS (in 000’S) NOI JUNE 30, 2021 JUNE 30, 2020 Q2 10.4% $2,499 $2,263 FIRST SIX MONTHS 8.7% $4,682 $4,307 LTM 8.1% $9,275 $8,577 14

  15. Slide 15: Mining & Royalty Lands

    Mining Royalty Lands MINING & ROYALTY LANDS Lease 2021 Minimum TTM 6/30/21 TTM 6/30/21 Location Acres Tenant Renewal Options Termination Royalty Royalty Paid Tons Sold Newberry, Alachua Co, FL 1,107 ARGOS 11/30/2098 None $600,000 $1,218,481 844,504 Forest Park, Clayton Co. GA 116 Vulcan Materials 7/

  16. Slide 16: Historic Tons & Royalties

    Mining Royalty Lands MINING & ROYALTY LANDS HISTORIC TONS & ROYALTIES Aggregates 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021** Total Tons 10,295,167 8,215,584 6,983,772 4,951,961 4,377,904 4,648,370 3,943,841 3,798,401 3,940,340 5,006,743 5,501,374 5,009,383 7,138

  17. Slide 17: Mining & Royalty Lands Industry Comps

    Mining Royalty Lands MINING & ROYALTY LANDS INDUSTRY COMPS TTM Revenue in 12/31/2015 6/30/2016 12/31/2016 6/30/2017 12/31/2017 6/30/2018 12/31/2018 6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/2021 ‘000s FRP (in 000’s) $6,410 $7,177 $7,754 $7,511 $7,241 $7,474 $8,139 $9,173 $9,438 $9,164 $9,477 $9

  18. Slide 18: Mining & Royalty Lands Industry Comps

    Mining Royalty Lands MINING & ROYALTY LANDS INDUSTRY COMPS TTM 12/31/2015 6/30/2016 12/31/2016 6/30/2017 12/31/2017 6/30/2018 12/31/2018 6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/21 FRP TTM NOI (000’s) $5,798,018 6,659,374 7,566,218 7,564,842 7,303,251 7,549,132 8,194,898 9,249,530 9,191,146 8,

  19. Slide 19: Infrastructure Bill Highlights & Potential Effects

    INFRASTRUCTURE BILL HIGHLIGHTS & POTENTIAL EFFECTS • $550B Federal investment in “Hard Infrastructure” • 20% increase in planned spending between 2022-2026 • Surge in demand for construction inputs when supply is already stretched • Should lead to price increases well beyond inflation • The rollout

  20. Slide 20: Stabilized Joint Ventures Properties

    STABILIZED JOINT VENTURES 3 PROPERTIES 20

  21. Slide 21: Dock 79

    DOCK 79 21

  22. Slide 22: Maren

    MAREN 22

  23. Slide 23: Hickory Creek

    HICKORY CREEK 23

  24. Slide 24: Stabilized Joint Ventures Comparative Metrics: Dock 79

    STABILIZED JOINT VENTURES COMPARATIVE METRICS DOCK 79 JUNE 30, 2021 JUNE 30, 2020 SIX MONTHS ENDED RESIDENTIAL (Avg Occ) 95.18% 92.51% RETAIL (Occ/Leased) 76% / 100% 76% / 76% SUCCESS / INCREASE 60.76% / 0.0% 58.3% / 0.6% NOI (in 000’S) (FRP) $2,126 $2,287 24

  25. Slide 25: Stabilized Joint Ventures Comparative Metrics: Maren

    STABILIZED JOINT VENTURES COMPARATIVE METRICS MAREN JUNE 30, 2021 JUNE 30, 2020 SIX MONTHS ENDED RESIDENTIAL (Avg Occ) 91.48% 13.15% RETAIL (Occ/Leased) 0% / 100% N/A SUCCESS / INCREASE 60.87% / 0.0% N/A NOI (in 000’S) (FRP) $1,079 <-$282> HICKORY CREEK (in 000’S) $171 $168 25

  26. Slide 26: Asset Management/Development

    ASSET MANAGEMENT/ DEVELOPMENT 26

  27. Slide 27: Asset Management Highlights

    ASSET MANAGEMENT HIGHLIGHTS • 34 LOVETON: 95.1% • CRANBERRY BUSINESS PARK: 96.5% • 21 STREET JAX: 100% 27

  28. Slide 28: Ongoing Joint Ventures Bryant Street Phase I

    ONGOING JOINT VENTURES BRYANT STREET PHASE I ALAMO CHASE CODA 28

  29. Slide 29: Bryant Street Highlights

    BRYANT STREET HIGHLIGHTS CODA: 154 apts. • 1st Occupant 1/1/21 • 95% Leased, 93% Occ. as of 9/1/21 CHASE: 333 apts. • 1st Occupant 8/15/21 • 12% Leased, 4% Occ. as of 9/1/21 STRONG RETAIL VELOCITY 29

  30. Slide 30: Bryant Street Retail Summary

    BRYANT STREET RETAIL SUMMARY • ALAMO: 45,540 SF Total, 45,540 SF Leased • SMALL SHOP: 23,443 SF Total, 13,593 SF Leased • FOOD HALL: 9,488 SF Total, 3,319 SF Leased • OUTSIDE “POP-UP”: 10,980 SF Total, 10,980 Leased • 77 % LEASED 30

  31. Slide 31: Bryant Street Phase II & III

    BRYANT STREET PHASE II & III 31

  32. Slide 32: Ongoing Joint Ventures Riverside

    ONGOING JOINT VENTURES RIVERSIDE • 200 Units • Opened 7/15/21 • 27% Leased, 13% Occupied 32

  33. Slide 33: Ongoing Joint Ventures .408 Jackson

    ONGOING JOINT VENTURES .408 JACKSON • 227 Units • 54% Complete • Leasing Begins Summer 2022 33

  34. Slide 34: Ongoing Joint Ventures 1800 Half Street (The Verge)

    ONGOING JOINT VENTURES 1800 HALF STREET (THE VERGE) • 344 Units • 27% Complete • Leasing Begins Summer 2022 34

  35. Slide 35: Ongoing Joint Ventures 1800 Half Street (The Verge)

    ONGOING JOINT VENTURES 1800 HALF STREET (THE VERGE) 35

  36. Slide 36: Development Mixed-Use JV's

    DEVELOPMENT MIXED-USE JV’S .408 1800 HALF DOCK 79 MAREN BRYANT ST RIVERSIDE JACKSON ST NUMBER OF 305 264 487 200 227 344 UNITS SF RETAIL 14,600 6,900 89,284 -0- 4,749 11,246 FIRST UNITS June 2016 April 2020 Jan. 2021 Aug. 2021 Q3 2022 Q3 2022 DELIVERED * TOTAL NUMBER OF UNITS = 1,827 36

  37. Slide 37: Development Mixed-Use JV's

    DEVELOPMENT MIXED-USE JV’S Q2 2020 Q2 2021 Q2 2022 Q2 2023 COMPLETED UNITS 305 569 1,256 1,827 Projected Projected OCC > 90% 17% 31% 69% 100% NOI (FRP) $1.1M $2.2M $TBD $TBD 37

  38. Slide 38: Development Committed Capital: JV's

    DEVELOPMENT COMMITTED CAPITAL: JV’S (in 000’S) DEBT EQUITY * TOTAL TOTAL PROJECT $282.1 $186.0 $468.1 FRP EQUITY (55.3%) $158.6 $113.1 $271.7 FRP THRU 6/30/21 $80.7 $113.1 $193.8 * Includes $23M Pref. 38

  39. Slide 39: Ongoing Joint Ventures Windlass Phase I

    ONGOING JOINT VENTURES WINDLASS PHASE I • 100,028 SF • Baltimore County, MD • Office: 72,028 SF; 61.5% Leased • Retail: 28,000 SF; 13.5% Leased 39

  40. Slide 40: Warehouse Platform Hollander Spec

    WAREHOUSE PLATFORM HOLLANDER SPEC • 2 Buildings/145,590 SF • Baltimore City, MD • Shell Complete Q4 2021 • 42,405 SF Pre-Leased 40

  41. Slide 41: Warehouse Platform Hollander Build-to-Suit

    WAREHOUSE PLATFORM HOLLANDER BUILD-TO-SUIT • 101,750 SF • Baltimore City, MD • 10 Yr. Term • Q4 2022 Occupancy 41

  42. Slide 42: Warehouse Platform Crouse Industrial

    WAREHOUSE PLATFORM CROUSE INDUSTRIAL CRANBERRY BUSINESS PARK • 55 Acres • Harford County, MD • 675,000 SF • >$42K Per Month Revenue 42

  43. Slide 43: Warehouse Platform Chelsea Road

    WAREHOUSE PLATFORM CHELSEA ROAD • 17 Acres • Harford County, MD • 259,000 SF 43

  44. Slide 44: Warehouse Platform Mechanics Valley

    WAREHOUSE PLATFORM MECHANICS VALLEY • 130 Acres • Cecil County, MD • 900,000 SF • Due Diligence 44

  45. Slide 45: Warehouse Platform Summary

    WAREHOUSE PLATFORM SUMMARY • 268,010 SF: OPERATING – 96.5% LEASED • 247,340 SF: UNDER CONSTRUCTION – 58.3% LEASED • 930,000 SF: ENTITLEMENT PHASE • 900,000 SF: UNDER CONTRACT 45

  46. Slide 46: Warehouse Platform Summary

    WAREHOUSE PLATFORM SUMMARY • 2,345,350 SF TOTAL • 94,350 SF SOLD JULY 2020 >$130 PSF • GAIN ON SALE >$40 PSF 46

  47. Slide 47: Lending Ventures

    LENDING VENTURES 47

  48. Slide 48: Lending Ventures Hyde Park

    LENDING VENTURES HYDE PARK • 25 Acres, 126 Lots • Baltimore County, MD • $3.5M Principal Loan • $1.0M Profit, etc. • >25% IRR 48

  49. Slide 49: Lending Ventures Amber Ridge

    LENDING VENTURES AMBER RIDGE • 15 Acres, 197 Lots • PG County, MD • $18.5M Principal Loan • Lot Take Down Began 8/20/21 • Projected >20% IRR 49

  50. Slide 50: Lending Ventures Presbyterian Homes

    LENDING VENTURES PRESBYTERIAN HOMES • 110 Acres, 342 Lots • Harford County, MD • $31.5M Principal Loan • 4.5 Year Timeframe • Project >20% IRR 50

  51. Slide 51: Future Development

    FUTURE DEVELOPMENT • Riverfront Phases III & IV – est. 500,000 SF (+/- 500 units) • Square 664E – est. 385,000 SF (+/- 400 units) • Bryant Street Phases II & III – est. 800,000 SF (+/- 813 Units) 51

  52. Slide 52: Future Development

    FUTURE DEVELOPMENT • Windlass JV Phases II-IV – 21.7 Acres (+/- 220,000 SF) • Hampstead Residential – 73 Acres (+/- 255 Units) 52

  53. Slide 53: Future Development

    FUTURE DEVELOPMENT • Mining & Royalties: 2nd Life Properties • Brooksville JV • Ft. Myers 53

  54. Slide 54: Summary & Outlook

    SUMMARY & OUTLOOK 54

  55. Slide 55: Strategic Direction

    Strategic Direction • Development • Continue to source as many deals as possible via both our existing partners as well as through new partnerships • However, we will be very picky as far as augmenting our existing pipeline goes- not getting married unless we’re in love • That notion could just as e

  56. Slide 56: Non-GAAP Financial Matters

    Mining Royalty Lands NON-GAAP FINANCIAL MATTERS To supplement the financial results presented in accordance with GAAP, FRP presents a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The non-GAAP financial measure included in this P

  57. Slide 57: 2021 Non-GAAP Financial Matters

    Mining Royalty Lands 2021 NON-GAAP FINANCIAL MATTERS Net Operating Income Reconciliation Six months ended 6/30/21 (in thousands) Asset Stabilized Mining Unallocated FRP Management Development Joint Venture Royalties Corporate Holdings Segment Segment Segment Segment Expenses Totals Net Income (loss)

  58. Slide 58: 2020 Non-GAAP Financial Matters

    Mining Royalty Lands 2020 NON-GAAP FINANCIAL MATTERS Net Operating Income Reconciliation Twelve months ended 12/31/20 (in thousands) Asset Stabilized Mining Unallocated FRP Management Development Joint Venture Royalties Corporate Holdings Segment Segment Segment Segment Expenses Totals Income (loss)

  59. Slide 59: 2019 Non-GAAP Financial Matters

    Mining Royalty Lands 2019 NON-GAAP FINANCIAL MATTERS Net Operating Income Reconciliation Twelve months ended 12/31/19 (in thousands) Asset Stabilized Mining Unallocated FRP Management Development Joint Venture Royalties Corporate Holdings Segment Segment Segment Segment Expenses Totals Income (loss)

  60. Slide 60: Officers & Directors

    FRP HOLDINGS, INC. OFFICERS & DIRECTORS John D. Baker II John D. Baker II Chief Executive Officer Executive Chairman Charles E. Commander, III David H. deVilliers, Jr. Retired Partner President & Chief Operating Officer Foley & Lardner David H. deVilliers III H. W. Shad, III Executive Vice President

  61. Slide 61: The End

    THE END 61

FRP Holdings — Investor Day (September 2021) on 6ix