FRP Holdings, Inc. (FRPH): Business Model Canvas [11-2024 Updated]
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FRP Holdings, Inc. (FRPH) Bundle
Discover how FRP Holdings, Inc. (FRPH) leverages its unique business model to achieve success in the competitive real estate and mining sectors. By exploring key components such as strategic partnerships, diverse revenue streams, and customer relationships, you will gain insights into their operational strategies and value propositions. Dive deeper into the elements that drive FRPH's growth and sustainability in the market.
FRP Holdings, Inc. (FRPH) - Business Model: Key Partnerships
Joint ventures with MRP Realty for multifamily projects
FRP Holdings has partnered with MRP Realty to develop multifamily housing projects, including the Bryant Street Partnerships. As of 2024, FRP has increased its ownership in the Bryant Street project to 72.10% from 61.36%, reflecting a strategic shift in their investment approach.
Partnerships with Vulcan Materials for mining operations
In the mining segment, FRP Holdings collaborates with Vulcan Materials, which plays a critical role in their mining operations. The mining royalty and rents segment produced $9.4 million in revenue for the nine months ended September 30, 2024, down from $9.6 million in the previous year.
Collaborations with local governments for land development approvals
FRP Holdings actively engages with local governments to secure land development approvals for various projects. This collaboration is essential for the timely execution of their real estate strategies, particularly in areas like Harford County, MD, where the company is developing residential lots on 110 acres.
Financing partnerships with banks for project funding
FRP has established financing partnerships with several banks to support its project funding. Notably, the company secured a $49.45 million loan from Fannie Mae for the .408 Jackson project at a fixed rate of 5.59%, maturing on February 1, 2031. Additionally, another partnership obtained a $68.86 million loan at a 5.72% fixed rate.
| Partnership Type | Partner | Project | Financial Details |
|---|---|---|---|
| Joint Venture | MRP Realty | Bryant Street Partnerships | Ownership increased to 72.10% |
| Mining Operations | Vulcan Materials | Mining Segment | Revenue: $9.4 million (2024) |
| Land Development | Local Governments | Residential Lots Development | 344 residential lots on 110 acres |
| Financing | Fannie Mae | .408 Jackson | Loan: $49.45 million at 5.59% |
| Financing | Various Banks | Multiple Projects | Loan: $68.86 million at 5.72% |
FRP Holdings, Inc. (FRPH) - Business Model: Key Activities
Real estate development and management
FRP Holdings engages in significant real estate development and management activities. As of September 30, 2024, the company reported total investments in properties amounting to $481,476,000, which includes land valued at $168,958,000 and buildings and improvements valued at $283,104,000. The company has also committed $30.3 million in joint ventures for warehouse developments.
Leasing and managing commercial and multifamily properties
The leasing segment generated lease revenue of $21,850,000 in the first nine months of 2024, a slight increase from $21,773,000 in the same period in 2023. The company's multifamily segment consists of two joint ventures, Dock 79 and The Maren, which contributed to lease revenues of $5,682,000 for the third quarter of 2024. Overall, the multifamily segment saw a 39% increase in pro rata net operating income (NOI), primarily due to the lease-up of several projects.
Overseeing mining operations and land entitlements
FRP Holdings oversees mining operations which generated royalty revenue of $9,393,000 for the first nine months of 2024, down from $9,628,000 in the same period last year. The company’s mining royalty lands segment has five tenants, with one lessee accounting for 22.4% of the consolidated revenues. The NOI for the mining segment increased significantly due to a one-time minimum royalty payment of $1,853,000.
Conducting market research for property valuation
Market research plays a critical role in FRP Holdings' strategy for property valuation. The company reported a pro rata NOI of $29,036,000 for the first nine months of 2024, reflecting a 28% increase compared to $22,687,000 in the same period last year. This increase is attributed to effective market analysis and strategic decision-making in property acquisitions and developments.
| Key Activity | Financial Data | Comments |
|---|---|---|
| Real Estate Investments | $481,476,000 | Total property investments as of September 30, 2024 |
| Lease Revenue | $21,850,000 | Lease revenue for the first nine months of 2024 |
| Mining Royalty Revenue | $9,393,000 | Mining royalty revenue for the first nine months of 2024 |
| Pro Rata NOI | $29,036,000 | Pro rata net operating income for the first nine months of 2024 |
FRP Holdings, Inc. (FRPH) - Business Model: Key Resources
Real estate assets across the southeastern United States
FRP Holdings, Inc. holds significant real estate investments, with total investments in properties valued at $481,476,000 as of September 30, 2024. This includes:
- Land: $168,958,000
- Buildings and improvements: $283,104,000
- Projects under construction: $29,414,000
The net investments in properties, after accounting for accumulated depreciation, stand at $406,293,000.
Experienced management team with industry expertise
FRP’s management team brings extensive experience in real estate development and asset management. As of September 30, 2024, the company reported a net income of $4,773,000 for the first nine months of 2024, a substantial increase from $1,997,000 in the same period the previous year.
Financial resources from operating cash flows and loans
As of September 30, 2024, FRP Holdings had $144,681,000 in cash and cash equivalents. The company also maintains a revolving credit facility of $35 million, with $34,452,000 available to borrow. Additionally, it has secured loans totaling:
| Loan Source | Amount | Interest Rate | Maturity Date |
|---|---|---|---|
| Fannie Mae (Greenville Partnership) | $49,450,000 | 5.59% | February 1, 2031 |
| Fannie Mae (Verge Partnership) | $68,862,000 | 5.72% | May 1, 2031 |
Established relationships with contractors and suppliers
FRP has cultivated strong partnerships with various contractors and suppliers, crucial for its ongoing projects. The company expects to invest $16 million into existing real estate holdings and joint ventures for the remainder of 2024, with an additional $213 million projected for future projects.
FRP Holdings, Inc. (FRPH) - Business Model: Value Propositions
Diverse portfolio of income-generating properties
FRP Holdings, Inc. maintains a robust portfolio that includes various income-generating properties across multiple segments. As of September 30, 2024, the total revenues from these properties amounted to $31,243,000, slightly down from $31,401,000 in the same period in 2023, indicating a decrease of 0.5% year-over-year. The breakdown of revenues is as follows:
| Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Industrial and Commercial | $4,353 | $3,932 | 10.7 |
| Mining Royalty Lands | $9,393 | $9,628 | -2.4 |
| Development | $905 | $1,387 | -34.7 |
| Multifamily | $16,592 | $16,454 | 0.8 |
Strategic land use planning for maximum value
FRP Holdings employs strategic land use planning to enhance the value of its properties. The company is actively assessing various parcels of land for optimal development opportunities. In 2024, significant investments were made in joint ventures for warehouse developments, including a 200,000 square-foot project in Lakeland, FL. The total capital commitment for ongoing projects is anticipated to reach $213 million beyond 2024.
Sustainable practices in mining and development
FRP Holdings is committed to sustainable practices within its mining and development operations. For the nine months ended September 30, 2024, net income from mining royalties reached $9,393,000, demonstrating the profitability of sustainable resource extraction. Additionally, the company reports a substantial increase in net operating income from the Mining Royalty Lands segment, which rose by 20% compared to the previous year.
Competitive leasing terms and property management services
FRP Holdings offers competitive leasing terms across its property segments. The Multifamily Segment, which includes joint ventures like Dock 79 and The Maren, reported lease revenues of $16,592,000 for the first nine months of 2024, reflecting a 0.8% increase from 2023. The company’s property management services are designed to optimize occupancy rates, with the Industrial and Commercial Segment achieving a 95.6% occupancy rate during the quarter.
| Segment | Lease Revenue (2024) | Operating Profit Before G&A (2024) | Occupancy Rate (%) |
|---|---|---|---|
| Multifamily | $16,592,000 | $4,427,000 | 92.8 |
| Industrial and Commercial | $4,353,000 | $2,484,000 | 95.6 |
| Mining Royalty Lands | $9,393,000 | $8,655,000 | N/A |
| Development | $905,000 | $102,000 | N/A |
FRP Holdings, Inc. (FRPH) - Business Model: Customer Relationships
Long-term leases with residential and commercial tenants
FRP Holdings, Inc. focuses on establishing long-term leases with both residential and commercial tenants. As of September 30, 2024, the company reported total lease revenue of $21,850,000 for the nine months ended, reflecting a slight increase of $77,000 compared to the same period in 2023. This demonstrates the stability and reliability of their leasing strategy.
Regular communication and engagement with tenants
Regular communication with tenants is crucial for maintaining high occupancy rates. As of Q3 2024, the average occupancy across multifamily properties was 92.8%, up from 81.0% in the previous year. This indicates effective engagement strategies that foster tenant satisfaction.
Customer service focused on tenant satisfaction and retention
FRP Holdings emphasizes customer service aimed at tenant satisfaction, contributing to a renewal success rate of 71.4% for Dock 79 and 50.7% for Maren Anacostia during Q3 2024. The company's proactive approach to addressing tenant concerns and maintaining property standards directly correlates with these retention rates.
Building community relations through local partnerships
To enhance community relations, FRP Holdings actively engages in local partnerships. This strategy supports community development and strengthens the company’s brand image. The multifamily segment saw a pro rata net operating income (NOI) increase of 39% year-over-year, primarily due to successful community integration and tenant engagement.
| Property | Pro Rata NOI Q3 2024 | Pro Rata NOI Q3 2023 | Average Occupancy Q3 2024 | Renewal Success Rate Q3 2024 |
|---|---|---|---|---|
| Dock 79 Anacostia | $964,000 | $952,000 | 94.0% | 71.4% |
| Maren Anacostia | $973,000 | $855,000 | 94.9% | 50.7% |
| Riverside Greenville | $243,000 | $231,000 | 94.0% | 56.0% |
| Bryant Street | $1,537,000 | $1,210,000 | 91.5% | 56.7% |
FRP Holdings, Inc. (FRPH) - Business Model: Channels
Direct leasing through property management teams
FRP Holdings, Inc. generates significant revenue through direct leasing activities. For the nine months ended September 30, 2024, lease revenue in the multifamily segment amounted to $24,214,000, representing a 25.2% increase from $19,343,000 in the same period of 2023.
Online platforms for property listings and inquiries
The company utilizes various online platforms to enhance visibility and facilitate inquiries. The multifamily segment reported a pro rata net operating income (NOI) of $4,722,000 for Q3 2024, up from $3,825,000 in Q3 2023, indicating strong performance in online engagement and inquiries.
Networking and industry events for business development
FRP Holdings actively participates in networking and industry events, which contribute to business development. The increase in NOI for the multifamily segment, particularly from newly leased projects such as Bryant Street and .408 Jackson, is indicative of successful networking efforts, with a reported NOI of $2,542,000 from these projects compared to $1,787,000 in the previous development segment.
Marketing through real estate brokers and agents
The company employs marketing strategies through real estate brokers and agents, which has proven effective. The multifamily segment's lease revenue for the first nine months of 2024 was $16,592,000, a slight increase from $16,454,000 in the same period last year.
| Channel | Revenue (Q3 2024) | Revenue (Q3 2023) | Percentage Increase |
|---|---|---|---|
| Direct Leasing | $24,214,000 | $19,343,000 | 25.2% |
| Online Platforms | $4,722,000 | $3,825,000 | 23.5% |
| Networking Events | $2,542,000 | $1,787,000 | 42.3% |
| Marketing through Brokers | $16,592,000 | $16,454,000 | 0.84% |
FRP Holdings, Inc. (FRPH) - Business Model: Customer Segments
Residential tenants in multifamily properties
FRP Holdings, Inc. primarily serves residential tenants through its multifamily segment, which includes joint ventures such as Dock 79 and The Maren. For the nine months ended September 30, 2024, lease revenue from the multifamily segment was approximately $16,592,000, reflecting an increase of 0.8% compared to the previous year. The overall occupancy rate for these properties is around 92.7%.
Commercial businesses leasing office and industrial spaces
The company caters to commercial businesses by leasing office and industrial spaces. For the nine months ended September 30, 2024, lease revenue from the industrial and commercial segment totaled $4,353,000, marking an increase of 10.7% from $3,932,000 in the same period of 2023. The operating profit before general and administrative expenses for this segment was $2,484,000, up by 10.4% year-over-year.
Mining companies utilizing royalty lands
FRP Holdings has a significant customer segment in mining companies that utilize royalty lands. For the nine months ended September 30, 2024, mining royalty and rent revenues amounted to $9,393,000, a decrease of 2.4% compared to $9,628,000 in the prior year. The operating profit for this segment was $8,655,000.
Investors seeking real estate opportunities through joint ventures
Investors looking for real estate opportunities benefit from FRP Holdings' joint ventures. The company has entered into significant joint ventures, including a 200,000 square-foot warehouse development project in Lakeland, FL, and another 182,000 square-foot warehouse redevelopment project in Broward County, FL. As of September 30, 2024, the company reported total net income of $4,706,000, a 94.3% increase from $2,422,000 in the same period of the previous year.
| Customer Segment | Revenue (2024) | Change (%) | Operating Profit (2024) | Occupancy Rate (%) |
|---|---|---|---|---|
| Residential tenants in multifamily properties | $16,592,000 | 0.8% | $4,427,000 | 92.7% |
| Commercial businesses | $4,353,000 | 10.7% | $2,484,000 | 95.6% |
| Mining companies | $9,393,000 | -2.4% | $8,655,000 | N/A |
| Investors through joint ventures | N/A | N/A | N/A | N/A |
FRP Holdings, Inc. (FRPH) - Business Model: Cost Structure
Operational costs for property management and maintenance
For the nine months ended September 30, 2024, the total operational costs for property management and maintenance amounted to:
| Cost Category | Amount (in thousands) |
|---|---|
| Depreciation and Amortization | $7,629 |
| Operating Expenses | $5,429 |
| Property Taxes | $2,517 |
| Total Operational Costs | $22,458 |
Development costs for new projects and renovations
Development costs incurred for new projects and renovations are reflected in the nine months ending September 30, 2024, as follows:
| Development Cost Category | Amount (in thousands) |
|---|---|
| Lease Revenue from Development | $905 |
| Depreciation, Depletion, and Amortization | $128 |
| Operating Expenses | $232 |
| Property Taxes | $443 |
| Total Development Costs | $803 |
General and administrative expenses for corporate operations
General and administrative expenses for corporate operations for the nine months ended September 30, 2024, were reported as:
| Expense Category | Amount (in thousands) |
|---|---|
| General and Administrative Expenses | $6,883 |
| Increase from Prior Year | $733 |
Interest expenses from financing arrangements
Interest expenses from financing arrangements for the nine months ended September 30, 2024, were as follows:
| Interest Expense Category | Amount (in thousands) |
|---|---|
| Total Interest Expense | $(2,482) |
| Decrease from Prior Year | $769 |
FRP Holdings, Inc. (FRPH) - Business Model: Revenue Streams
Rental income from commercial and residential properties
For the nine months ended September 30, 2024, FRP Holdings reported lease revenue of $16,592,000 from its multifamily segment. This reflects an increase of 0.8% from $16,454,000 in the same period of 2023. The total revenues for the industrial and commercial segment were $1,455,000, which is a 0.9% increase compared to $1,442,000 in the same period last year.
Mining royalties from leased lands
The company generated mining royalty and rent revenue of $9,393,000 for the nine months ended September 30, 2024, a decrease of 2.4% from $9,628,000 in the same period of 2023. The mining royalty and rent revenue for the third quarter of 2024 was $3,199,000, marking a 3.8% increase from $3,082,000 in the third quarter of 2023.
Sales from developed land and properties
In the Development segment, total revenues increased to $4,353,000 for the nine months ended September 30, 2024, up from $3,932,000 in 2023, representing an 11% increase. The increase is attributed to the addition of new properties and increased occupancy rates.
Income from joint ventures and partnerships
FRP Holdings reported equity in loss of joint ventures amounting to $8,582,000 for the nine months ended September 30, 2024, an improvement from a loss of $10,585,000 during the same period in 2023. This indicates a better performance in joint ventures, particularly with The Verge and .408 Jackson partnerships, which have shown improved results.
| Revenue Stream | 2024 Amount ($) | 2023 Amount ($) | Percentage Change |
|---|---|---|---|
| Multifamily Lease Revenue | 16,592,000 | 16,454,000 | 0.8% |
| Industrial and Commercial Revenue | 1,455,000 | 1,442,000 | 0.9% |
| Mining Royalty and Rent Revenue | 9,393,000 | 9,628,000 | -2.4% |
| Development Segment Revenue | 4,353,000 | 3,932,000 | 11% |
| Equity in Joint Ventures Loss | (8,582,000) | (10,585,000) | 18.9% |
Updated on 16 Nov 2024
Resources:
- FRP Holdings, Inc. (FRPH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of FRP Holdings, Inc. (FRPH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View FRP Holdings, Inc. (FRPH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.