FRP HOLDINGS, INC. (NASDAQ - FRPH)

FRP Holdings, Inc. was formed in 1986 as a result of a spin-off of the real-estate and transportation businesses of Florida Rock Industries, Inc. (now a wholly owned subsidiary of Vulcan Materials).  Today, through our two operating subsidiaries, FRP Development Corp. and Florida Rock Properties, Inc., we operate as a pure “full service” real-estate company with four distinct real-estate segments i) Asset Management (ii) Mining Royalty Lands, (iii) Development, and (iv) Stabilized Joint Ventures.

 

o   Asset Management

o   Mining Royalty Lands

o   Development

o   Stabilized Joint Ventures

 

Asset Management Segment.

 This business segment includes land and buildings owned and operated as income producing rental properties. As of December 31, 2018, the Asset Management segment owns, leases and manages three office buildings and 2 land parcels ground leased to 3rd parties. Previously on May 21, 2018, the Company completed the disposition of 40 industrial warehouse properties totaling over 4 million sq. ft. plus three land parcels, to an affiliate of Blackstone Real Estate Partners VIII, L.P. These properties comprised substantially all the assets of our Asset Management segment.  

 Mining Royalty Lands Segment.

 This business segment includes land owned and leased to mining companies for royalties and/or rents. Through our operating subsidiary, Florida Rock Properties, Inc., we own and lease 13 properties comprising approximately 15,000 acres. Other than one location in VA, all of these properties are located in Florida and Georgia. Not only do these locations provide us with excellent cash flow but provide opportunities for valuable “2nd lives” through conversion to commercial and/or residential communities through proper land planning and entitlement. Our current mining tenants include Vulcan Materials, Martin Marietta and Cemex, among others. We view this part of our business as a very low risk opportunity with lots of upside potential for many years to come. As of December 31, 2018 our mining properties had estimated remaining reserves of 528 million tons after a total of 8.0 million tons were consumed in 2018.

Development Segment.

 This business segment is the main driver behind our business growth and includes raw land and buildings to be further developed for future income production or sales to third parties. Our overall strategy in this segment is to convert “raw land” or outdated buildings into income production through entitlements allowing us to (i) construct new or renovate existing commercial buildings for us to own and operate or (ii) sell outright, or joint venture with third parties.

Stabilized Joint Ventures Segment.

 This business segment has been renamed from RiverFront on the Anacostia as we intend to transfer additional joint ventures from our Development segment into this segment as they reach stabilization. Currently the segment only includes one stabilized joint venture which owns, leases and manages Phase 1 at RiverFront, called Dock 79 which consists of 305 apartments and 14,100 sq. ft. of retail on the first floor.