Frp Holdings, Inc. · NASDAQ:FRPH
Frp — Investor Day (October 2023)
53 slides from Frp's investor day presentation, Oct 11, 2023
Slide 1: FRP Holdings, Inc. 2023 Investor Day
FRP HOLDINGS, INC. 2023 Investor Day October 11, 2023
Slide 2: Safe Harbor Disclosures
Safe Harbor Disclosures Investors are cautioned that any statements in this press release which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These
Slide 3: Today's Agenda
Today’s Agenda FRP Holdings, Inc. 2023 Investor Day Welcome Who We Are What We Do Where We Are Going CEO Wrap Up Conclude Presentations Q&A FRP Holdings, Inc. 3
Slide 4: Building Success Over Time
Building Success Over Time Spin-Off from Rezoned Anacostia FRP & Trucking Greenville, S.C. JV Florida Rock Site for Residential Entity Split into Formed Industries / Commercial Use Two Public Entities 1986 1988 1993 2014 2015 2018 2019 Present Sold Warehouse Arundel Purchase; Begin Construction Port
Slide 5: Cash Reinvestment – Per Year & Cumulative
Cash Reinvestment – Per Year & Cumulative $66,451 $305,000 $44,699 $255,000 $22,668 $205,000 $ in 000’s $28,099 $71,754 $155,000 $105,000 $81,935 $55,000 $5,000 2018 2019 2020 2021 2022 2023 Capex Spent in the Year FRP Holdings, Inc. 5
Slide 6: 3rd Party Joint Ventures
3rd Party Joint Ventures Apartment Unit Growth 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2018 2019 2020 2021 2022 2023 Units added in the year FRP Holdings, Inc. 6
Slide 7: Industrial / Commercial
Industrial / Commercial In-service sq. ft In-service sq. ft. Pipeline 500 2,000 400 Square feet (100’s sq. ft.) 1,500 Square feet (100’s sq. ft.) 300 1,000 200 500 100 0 0 2018 2019 2020 2021 2022 2023 Pipeline Next 5 Years Square feet added in the year FRP Holdings, Inc. 7
Slide 8: NOI ('18-'23)
NOI (’18-’23) Total NOI $31,000 $29,204 $28,500 2018-2023: 16.4% CAGR $26,000 $23,500 NOI (000’s) $21,000 $18,500 $16,000 $13,500 $11,000 2018 2019 2020 2021 2022 2023E FRP Holdings, Inc. 8
Slide 9: Cash Position - End of Each Period
Cash Position - End of Each Period 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 6/30/2023 Cash and cash $ 187,961 $ 164,660 $ 149,714 $ 166,590 $ 178,294 $ 167,360 equivalents (000's) $200,000 $180,000 $160,000 $140,000 $120,000 $ in 000’s $100,000 $80,000 $60,000 $40,000 $20,000 $0 2018 2
Slide 10: What We Do
WHAT WE DO FRP Holdings, Inc. 10
Slide 11: Building Value for Shareholders
Building Value for Shareholders Reinvest Generate Cash Flow Own & Operate Develop Assets FRP Holdings, Inc. 11
Slide 12: How We Do It
How We Do It • Patient, Flexible Investment Strategy Designed to Maximize NOI Growth Over the Long-Term • Seek Markets That Provide Strong Economics and Employment Fundamentals • Deploy Expertise in Ground-Up Development • Value-Add Acquisitions: Strong Balance Sheet Creates Ability to Opportunistic
Slide 13: What Makes a Market Attractive?
What Makes a Market Attractive? High Barriers Employment/ Transportation Demographic to Entry Population Growth Infrastructure Profile FRP Holdings, Inc. 13
Slide 14: In-House: Industrial / Commercial
In-House: Industrial / Commercial FRP Holdings, Inc. 14
Slide 15: In-House: Industrial / Commercial
In-House: Industrial / Commercial In-service sq. ft In-service sq. ft. Pipeline 500 2,000 400 Square feet (100’s sq. ft.) 1,500 Square feet (100’s sq. ft.) 300 1,000 200 500 100 0 0 2018 2019 2020 2021 2022 2023 Pipeline Next 5 Years Square feet added in the year FRP Holdings, Inc. 15
Slide 16: In-House: Hollander Business Park
In-House: Hollander Business Park Class “A” – Core Type FRP Holdings, Inc. 16
Slide 17: In-House: Cranberry Business Park
In-House: Cranberry Business Park Class “B” – Value Add FRP Holdings, Inc. 17
Slide 18: In-House: Industrial / Commercial
In-House: Industrial / Commercial NOI Revenue $4,200 $7,500 2018-2023: 27.8% CAGR $3,700 2018-2023: 14.4% CAGR $6,500 $3,200 $2,700 $5,500 $000’s $000’s $2,200 $4,500 $1,700 $1,200 $3,500 $700 $200 $2,500 2018 2019 2020 2021 2022 2023E 2018 2019 2020 2021 2022 2023E FRP Holdings, Inc. 18
Slide 19: In-House Industrial / Commercial Pipeline
In-House Industrial / Commercial Pipeline next 5 Yrs. • 95 North Industrial Corridor • 259,000 sq. ft. – Under Construction • 900,000 sq. ft. – Pre-Development • 635,000 (Multiple Building Concept) sq. ft. – Pre-Development FRP Holdings, Inc. 19
Slide 20: 3rd Party Joint Ventures
rd 3 Party Joint Ventures FRP Holdings, Inc. 20
Slide 21: 3rd Party Joint Ventures
3rd Party Joint Ventures Apartment Unit Growth Pipeline Growth 1,800 3,000 1,600 2,500 1,400 1,200 2,000 1,000 1,500 800 600 1,000 400 500 200 0 0 2018 2019 2020 2021 2022 2023 Pipeline Growth Next 5 Years Units added in the year FRP Holdings, Inc. 21
Slide 22: 3rd Party Joint Ventures
3rd Party Joint Ventures Office/Retail Square Foot Growth Square Foot Pipeline 500,000 205,000 400,000 Square Feet (sq. ft.) Square Feet (sq. ft.) 155,000 300,000 105,000 200,000 55,000 100,000 5,000 0 2018 2019 2020 2021 2022 2023 Pipeline Next 5 Years Square feet added in the year FRP Holdings, In
Slide 23: 3rd Party Joint Ventures: Dock 79 & Maren (D.C.)
rd 3 Party Joint Ventures: Dock 79 & Maren (D. C.) FRP Holdings, Inc. 23
Slide 24: 3rd Party Joint Ventures: Bryant St. Phase I (D.C.)
rd 3 Party Joint Ventures: Bryant St. Phase I (D.C.) ALAMO CHASE METRO BAR CODA FRP Holdings, Inc. 24
Slide 25: 3rd Party Joint Ventures: 408 Jackson (South Carolina)
rd 3 Party Joint Ventures: 408 Jackson (South Carolina) FRP Holdings, Inc. 25
Slide 26: 3rd Party Joint Ventures (FRP Share)
3rd Party Joint Ventures (FRP Share) NOI Revenue $14,000 $27,000 2018-2023: 24.3% CAGR 2018-2023: 29.5% CAGR $12,000 $22,000 $10,000 $ 000’s $17,000 $ 000’s $8,000 $12,000 $6,000 $7,000 $4,000 $2,000 $2,000 2018 2019 2020 2021 2022 2023E 2018 2019 2020 2021 2022 2023E FRP Holdings, Inc. 26
Slide 27: 3rd Party Joint Ventures – Future Projects
3rd Party Joint Ventures – Future Projects • FRP/SIC/MRP: STEUART I, II, III, & IV: 1,200 Units • FRP/SIC/MRP: RIVERFRONT III, IV, & 664: 900 Units • FRP/WOODFIELD: WOVEN: 200 Units • FRP/SJP: WINDLASS II, III, & IV: 229,000 SF Office/Retail FRP Holdings, Inc. 27
Slide 28: 3rd Party Joint Ventures: Future Projects
rd 3 Party Joint Ventures: Future Projects NATIONALS STADIUM AUDI FIELD SIC I, II, III MAREN VERGE DOCK 79 PHASES III & IV 664E SIC IV FRP Holdings, Inc. 28
Slide 29: Pre-Development: Steuart Properties Phase I (SIC)
rd 3 Party Joint Ventures: Pre-Development Steuart Properties Phase I (SIC) FRP Holdings, Inc. 29 29
Slide 30: Pre-Development: Riverfront Phases III & IV
rd 3 Party Joint Ventures: Pre-Development Riverfront Phases III & IV FRP Holdings, Inc. 30
Slide 31: Pre-Development: Woven (South Carolina)
rd 3 Party Joint Ventures: Pre-Development Woven (South Carolina) FRP Holdings, Inc. 31 31
Slide 32: Pre-Development: Windlass
3rd Party Joint Ventures: Pre-Development Windlass 32
Slide 33: Mining & Royalty Lands
Mining & Royalty Lands FRP Holdings, Inc. 33
Slide 34: Mining & Royalty Lands
Mining & Royalty Lands • 14 PROPERTIES TOTALING 15,000 ACRES • 13 PROPERTIES IN FL & GA; 1 IN VA • AS OF 12/31/22 INDICATED TOTAL RESERVES >500,000,000 TONS FRP Holdings, Inc. 34
Slide 35: Mining & Royalty Lands
Mining & Royalty Lands Tons Mined Revenue NOI 11,000 $14,000 10,800 2018-2023: 6.0% CAGR $13,092 10,500 $13,000 $12,546 2018-2023: 10.0% CAGR 2018-2023: 8.9% CAGR 10,000 $12,000 9,500 $11,000 000’s tons $ 000’s 9,000 $10,000 8,500 $9,000 8,000 $8,000 7,500 $7,000 7,000 $6,000 ‘18 ‘19 ‘20 ‘21 ‘22 ‘23
Slide 36: Long–Term Growth in Aggregates Demand
Long–Term Growth in Aggregates Demand INFRASTRUCTURE NONRESIDENTIAL RESIDENTIAL Public Funding Private / Public Funding Private Funding Retail, commercial Schools, Healthcare & Multi-family Federal State and heavy industrial Government Buildings Single-family homes development ➢ 2021 Infrastructure
Slide 37: Mining & Royalty – Aggregate Fundamentals
Mining & Royalty – Aggregate Fundamentals Aggregates Pricing (1977-2022) $400 $350 $300 $ per ton $250 $200 1975-2022 – Price CAGR = 4.4% $150 $100 $50 $0 '75 '76 '77 '78 '79 '80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '
Slide 38: Operational Highlights – Revenue
Operational Highlights – Revenue In-House 3rd Party JV’s (FRP) Mining & Royalty Total Revenue $50,000 $27,500 $24,902 $44,880 $45,000 2018-2023: 19.4% CAGR $22,500 $40,000 2018-2023: 29.5% CAGR $35,000 NOI (000’s) NOI (000’s) 2018-2023: 10.0% CAGR $17,500 $30,000 $13,092 $12,500 $25,000 2018-2023: 1
Slide 39: Operational Highlights – NOI
Operational Highlights – NOI In-House 3rd Party JV’s (FRP) Mining & Royalty Total NOI $14,000 $31,000 $12,758 $12,546 $29,204 $28,500 $12,000 2018-2023: 16.4% CAGR 2018-2023: 8.9% CAGR $26,000 $10,000 2018-2023: 24.2% CAGR $23,500 NOI (000’s) NOI (000’s) $8,000 $21,000 $6,000 2018-2023: 28.0% CAGR $
Slide 40: Lending Ventures
Lending Ventures FRP Holdings, Inc. 40 40
Slide 41: Lending Ventures Highlights
Lending Ventures Highlights • 10% INTEREST COMPOUNDED MONTHLY • 20% IRR THRESHOLD • ENTITLEMENT/LAND PURCHASE • CONTRACT WITH BUILDER/LAND DEVELOPMENT • 50-55% PEAK CAPITAL IS THE TARGET • USE BUILDER DEPOSITS AS A HEDGE FRP Holdings, Inc. 41
Slide 42: Lending Ventures Amber Ridge
Lending Ventures Amber Ridge 42
Slide 43: Lending Ventures
Lending Ventures (in 000’S) COMMITTED PEAK INT/PROFIT IRR HYDE PARK $9,200 $3,438 $1,037 29% AMBER RIDGE $18,500 $12,269 $3,123* 18% PRESBYTERIAN $31,500 $13,124 N/A N/A *When the project is complete (12/31/2023 est.), interest and profit is expected to total approximately $4 mil. FRP Holdings, Inc.
Slide 44: Capital-Ex Summary
FRP Holdings, Inc. Capital-Ex Summary (in 000’S) CAPITAL EXPENDITURES 2018 2019 2020 2021 2022 2023 IN-HOUSE $6,731 $10,157 $17,425 $14,440 $16,063 $13,300 3rd PARTY JV’s $69,953 $64,360 $91 $2,208 $16,952 $36,775 MINING & ROYALTY --0-- --0-- --0-- $522 $11,218 $100 LENDING VENTURES $554 $3,237 $10,
Slide 45: Cash Reinvestment – Per Year & Cumulative
Cash Reinvestment – Per Year & Cumulative $66,451 $305,000 $44,699 $255,000 $22,668 $205,000 $ in 000’s $28,099 $71,754 $155,000 $105,000 $81,935 $55,000 $5,000 2018 2019 2020 2021 2022 2023 Capex Spent that Year FRP Holdings, Inc. 45
Slide 46: Cash Position - End of Each Period
Cash Position - End of Each Period 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 6/30/2023 Cash and cash $ 187,961 $ 164,660 $ 149,714 $ 166,590 $ 178,294 $ 167,360 equivalents (000's) $200,000 $180,000 $160,000 $140,000 $120,000 $ in 000’s $100,000 $80,000 $60,000 $40,000 $20,000 $0 2018 2
Slide 47: FRP – Sum of the Parts Analysis – Part I
FRP – Sum of the Parts Analysis – Part I 6/30/23 Cap Rate/ FRP Equity Asset Type – Income Producing Properties Annual NOI Multiple Range Value Range Per Share Value ➢ IN – HOUSE INDUSTRIAL $2.2M 5.90%-6.41% $34M-$37M $3.56-$3.87 ➢ OFFICE & GROUND LEASE $1.8M 8.75%-9.50% $7.6M-$7.9M* $0.80-$0.84 ➢ ST
Slide 48: FRP – Sum of the Parts Analysis – Part II
FRP – Sum of the Parts Analysis – Part II FRP Equity Market Value FRP Equity Development Pipeline Investment Range Value Range Per Share Value ➢ UNDER DEVELOPMENT NM NM $118.7M $12.50 ➢ INDUSTRIAL LAND NM $20M-$46M $20M-$46M $2.14-$4.89 ➢ FUTURE PHASES OF RIVERFRONT (D.C.) NM $57M-$66M $57M-$66M $5.
Slide 49: FRP NAV Analysis – Part I (Current)
FRP NAV Analysis – Part I (Current) FRP HOLDINGS, INC. QUARTERLY NAV ANALYSIS 6/30/23 Annualized 6/30/23 Pro Rata NOI Cap Rate Range [1] Value Range Debt FRP Equity Value $/Share Notes Industrial Hollander $ 666,262 5.75% 5.25% $ 11,587,165 $ 12,690,705 $ - $ 11,587,165 $ 12,690,705 Cranberry $ 1,50
Slide 50: FRP NAV Analysis – Part II (Under Development)
FRP NAV Analysis – Part II (Under Development) Under Development Project FRP Equity Investment Verge $ 40,375,365 $ 40,375,365 $ 40,375,365 $37M investment + 3.375M equity contribution in 2023 .408 Jackson $ 9,700,000 $ 9,700,000 $ 9,700,000 Bryant St $ 63,132,000 $ 63,132,000 $ 63,132,000 $8.132m e
Slide 51: Appendix
APPENDIX FRP Holdings, Inc. 51
Slide 52: Non-GAAP Financial Matters
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 Presentation is net op
Slide 53: Pro-Rata NOI Reconciliation (2018-2023)
Pro-Rata NOI Reconciliation (2018-2023) Net Operating Income Reconcilation FRP Holdings Total Company Years ended December 31, (in thousands) 2018 2019 2020 2021 2022 2023 June 2023 annualized Income from continuing operations 959 8,822 11,722 40,094 4,047 898 1,796 Income Tax Allocation 524 2,962 3