JACKSONVILLE, Fla., Aug. 02, 2018 (GLOBE NEWSWIRE) — FRP Holdings, Inc. (NASDAQ:FRPH)
Second Quarter Consolidated Results of Operations.
As previously announced on May 21, 2018, the Company completed the disposition of 40 industrial warehouse properties and three additional land parcels to an affiliate of Blackstone Real Estate Partners VIII, L.P. for $347.2 million. One warehouse property valued at $11.7 million was excluded from the sale due to the tenant exercising its right of first refusal to purchase the property. These properties comprised substantially all the assets of our Asset Management segment and have been reclassified as discontinued operations for all periods presented. As of the end of the quarter, cash was $311 million, and we are currently exploring options to reinvest these proceeds into opportunities more in line with our other business segments.
Net income for the second quarter of 2018 was $119,982,000 or $11.87 per share versus $1,713,000 or $.17 per share in the same period last year. Income from discontinued operations for the second quarter of 2018 was $120,465,000 or $11.92 per share versus $1,588,000 or $.16 per share in the same period last year. Loss from continuing operations for the quarter of $879,000 included $1,085,000 in stock compensation expense ($682,800 for the 2018 director stock grant and $402,000 for vesting of option grants from 2016 and 2017 due to the asset disposition).
Total revenues were $5,553,000, up 104.2%, versus the same period last year, primarily because of the addition of rental revenues from Dock 79 in when its results were consolidated starting in July 2017.
In April, construction began on Phase II of our RiverFront on the Anacostia project, which we expect to deliver in the first or second quarter of 2020.
Second Quarter Segment Operating Results.
Asset Management Segment:
Most of the Asset Management Segment was reclassified to discontinued operations leaving only three office buildings. Total revenues in this segment were $568,000, up $15,000 or 2.7%, over the same period last year. Operating profit was $149,000, down $62,000 compared to the same quarter last year due to an $82,000 increase in corporate expense allocation.
Mining Royalty Lands Segment:
Total revenues in this segment were $2,055,000 versus $1,833,000 in the same period last year. Total operating profit in this segment was $1,866,000, an increase of $193,000 versus $1,673,000 in the same period last year.
Land Development and Construction Segment:
The Land Development and Construction segment is responsible for (i) seeking out and identifying opportunistic purchases of income producing warehouse/office buildings, and (ii) developing our non-income producing properties into income production.
With respect to ongoing projects:
- We are fully engaged in the formal process of seeking PUD entitlements for our 118-acre tract in Hampstead, Maryland, now known as “Hampstead Overlook.”
- We began construction in the third quarter of last year on our joint venture with St. John Properties and expect to complete construction of the first phase of this project in the third quarter of 2018. This first phase will comprise four single-story buildings totaling 100,000 square feet of office and retail space.
- We are the financial backer of a residential development in Essexshire now known as “Hyde Park.” This project will hold 125 town homes and 4 single family lots and is currently in the entitlement process.
- This quarter, we began construction on a 95,000-square foot spec building at Hollander Business Park. This Class “A” facility will be our first building with a 32-foot clear and should come on line in the second quarter of 2019.
- As mentioned previously, in April of this past quarter, we began construction on Phase II of our RiverFront on the Anacostia project, now known as “The Maren.” We expect to deliver the building in the first half of 2020.
RiverFront on the Anacostia Segment:
Average occupancy for the quarter was 95.0% and at the end of the second quarter, Dock 79 was 95.1% leased and 97.4% occupied. During the second quarter, 58.0% of expiring leases renewed with an average increase in rent of 4.5%. Both figures exceeded our budgeted expectations. Dock 79 is a joint venture between the Company and MidAtlantic Realty Partners, in which FRP Holdings, Inc. is the majority partner with 66% ownership.
Six Months Consolidated Results of Operations.
Net income for first half of 2018 was $121,542,000 or $12.04 per share versus $3,156,000 or $.32 per share in the same period last year. Income from discontinued operations for the first half of 2018 was $122,187,000 or $12.10 per share versus $3,384,000 or $.34 per share in the same period last year. Loss from continuing operations for the period of $1,572,000 included $1,085,000 in stock compensation expense ($682,800 for the 2018 director stock grant and $402,000 for vesting of option grants from 2016 and 2017 due to the asset disposition).
Total revenues were $10,628,000, up 98.5%, versus the same period last year, primarily because of the addition of rental revenues from Dock 79 when its results were consolidated starting in July 2017.
Six Months Segment Operating Results.
Asset Management Segment:
Total revenues in this segment were $1,149,000, down $2,000 or .2%, over the same period last year.
Operating profit of $395,000 was down $36,000 compared to the same quarter last year due primarily to an increase of $21,000 in corporate expense allocation.
Mining Royalty Lands Segment:
Total revenues in this segment were $3,827,000 versus $3,595,000 in the same period last year. Total operating profit in this segment was $3,407,000, an increase of $175,000 versus $3,232,000 in the same period last year.
RiverFront on the Anacostia Segment:
Average occupancy for the first six months was 94.7% and at the end of the second quarter, Dock 79 was 95.1% leased and 97.4% occupied. Through the first half of the year, 60.2% of expiring leases renewed with an average increase in rent of 3.6%. Both figures exceeded our budgeted expectations. Dock 79 is a joint venture between the Company and MidAtlantic Realty Partners, in which FRP Holdings, Inc. is the majority partner with 66% ownership.
Summary and Outlook.
The last three months were huge for this company. Mining Royalty revenue was up the second straight quarter. Dock 79 continues to exceed our lofty expectations making us all the more excited for 2020 and the arrival of its younger sibling, “The Maren.” The development of our remaining lots commenced with the start of construction of our first 32-foot clear building at Hollander Business Park. However, all of that is secondary in importance to the significance of the sale of our industrial real estate portfolio, which closed the book on nearly three decades of hard work and value creation by our team in Baltimore and raises the question of what comes next. The problem of what to do with the proceeds is a good one to have, but a problem nonetheless. Selling when one believes valuations are at their peak also means having to deploy the proceeds when valuations are at their peak, which obviously we are loath to do. As mentioned previously, we are currently looking for opportunities more in line with our other business segments, but that does not mean we are going to let this money “burn a hole in our pocket.” Being opportunistic means being disciplined in our approach, remaining patient rather than pressing. If that means letting the cash earn interest for a few quarters, that is what we are prepared to do. We are not going to wait forever to put this money to work, but this sale and its proceeds are too important an opportunity to waste, and as stewards of your capital, we are taking this moment very seriously.
Conference Call.
The Company will also host a conference call on Thursday, August 2, 2018 at 2:00 p.m. (EDT). Analysts, stockholders and other interested parties may access the teleconference live by calling 1-800-311-9406 (passcode 16794705) within the United States. International callers may dial 1-334-323-7224 (passcode 16794705). Computer audio live streaming is available via the Internet through the Company’s website at www.frpholdings.com. You may also click on this link for the live streaming http://stream.conferenceamerica.com/frp080218. For the archived audio via the internet, click on the following link http://archive.conferenceamerica.com/archivestream/frp080218.mp3. If using the Company’s website, click on the Investor Relations tab, then select the earnings conference stream. An audio replay will be available for sixty days following the conference call. To listen to the audio replay, dial toll free 1-877-919-4059, international callers dial 1-334-323-0140. The passcode of the audio replay is 81414237. Replay options: “1” begins playback, “4” rewind 30 seconds, “5” pause, “6” fast forward 30 seconds, “0” instructions, and “9” exits recording. There may be a 30-40 minute delay until the archive is available following the conclusion of the conference call.
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 include, but are not limited to, the possibility that the Sale Transaction may adversely affect our remaining business; the possibility that we may be unable to find appropriate reinvestment opportunities for the proceeds from the Sale Transaction; levels of construction activity in the markets served by our mining properties, demand for flexible warehouse/office facilities in the Baltimore-Washington-Northern Virginia area demand for apartments in Washington D.C., our ability to obtain zoning and entitlements necessary for property development, the impact of lending and capital market conditions on our liquidity, our ability to finance projects or repay our debt, general real estate investment and development risks, vacancies in our properties, risks associated with developing and managing properties in partnership with others, competition, our ability to renew leases or re-lease spaces as leases expire, illiquidity of real estate investments, bankruptcy or defaults of tenants, the impact of restrictions imposed by our credit facility, the level and volatility of interest rates, environmental liabilities, inflation risks, cybersecurity risks, as well as other risks listed from time to time in our SEC filings, including but not limited to, our annual and quarterly reports. We have no obligation to revise or update any forward-looking statements, other than as imposed by law, as a result of future events or new information. Readers are cautioned not to place undue reliance on such forward-looking statements.
FRP Holdings, Inc. is a holding company engaged in the real estate business, namely (i) mining royalty land ownership and leasing, (ii) land acquisition, entitlement and development primarily for future warehouse/office or residential building construction, (iii) ownership, leasing, and management of a residential apartment building, and (iv) warehouse/office building ownership, leasing and management.
FRP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share amounts)
(Unaudited)
| THREE MONTHS ENDED | SIX MONTHS ENDED | ||||||||||||||||||||||||||
| JUNE 30, | JUNE 30, | ||||||||||||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||
| Rental revenue | $ | 3,350 | 750 | 6,497 | 1,507 | ||||||||||||||||||||||
| Mining Royalty and rents | 2,033 | 1,809 | 3,783 | 3,548 | |||||||||||||||||||||||
| Revenue – reimbursements | 170 | 160 | 348 | 299 | |||||||||||||||||||||||
| Total Revenues | 5,553 | 2,719 | 10,628 | 5,354 | |||||||||||||||||||||||
| Cost of operations: | |||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 2,131 | 273 | 4,529 | 499 | |||||||||||||||||||||||
| Operating expenses | 1,103 | 207 | 1,968 | 437 | |||||||||||||||||||||||
| Property taxes | 611 | 376 | 1,286 | 737 | |||||||||||||||||||||||
| Management company indirect | 455 | 307 | 816 | 611 | |||||||||||||||||||||||
| Corporate expenses | 1,709 | 566 | 2,388 | 1,893 | |||||||||||||||||||||||
| Total cost of operations | 6,009 | 1,729 | 10,987 | 4,177 | |||||||||||||||||||||||
| Total operating profit (loss) | (456 | ) | 990 | (359 | ) | 1,177 | |||||||||||||||||||||
| Interest income | 216 | — | 221 | — | |||||||||||||||||||||||
| Interest expense | (807 | ) | — | (1,650 | ) | — | |||||||||||||||||||||
| Equity in loss of joint ventures | (11 | ) | (806 | ) | (23 | ) | (1,577 | ) | |||||||||||||||||||
| Income (loss) before income taxes | (1,058 | ) | 184 | (1,811 | ) | (400 | ) | ||||||||||||||||||||
| Provision for (benefit from) income taxes | (179 | ) | 59 | (239 | ) | (172 | ) | ||||||||||||||||||||
| Income (loss) from continuing operations | (879 | ) | 125 | (1,572 | ) | (228 | ) | ||||||||||||||||||||
| Income from discontinued operations, net | 120,465 | 1,588 | 122,187 | 3,384 | |||||||||||||||||||||||
| Net income | 119,586 | 1,713 | 120,615 | 3,156 | |||||||||||||||||||||||
| Loss attributable to noncontrolling interest | (396 | ) | — | (927 | ) | — | |||||||||||||||||||||
| Net income attributable to the Company | $ | 119,982 | 1,713 | 121,542 | 3,156 | ||||||||||||||||||||||
| Earnings per common share: | |||||||||||||||||||||||||||
| Income (loss) from continuing operations- | |||||||||||||||||||||||||||
| Basic | $ | (0.09 | ) | 0.01 | (0.16 | ) | (0.02 | ) | |||||||||||||||||||
| Diluted | $ | (0.09 | ) | 0.01 | (0.16 | ) | (0.02 | ) | |||||||||||||||||||
| Discontinued operations- | |||||||||||||||||||||||||||
| Basic | $ | 12.01 | 0.16 | 12.19 | 0.34 | ||||||||||||||||||||||
| Diluted | $ | 11.92 | 0.16 | 12.10 | 0.34 | ||||||||||||||||||||||
| Net income attributable to the Company- | |||||||||||||||||||||||||||
| Basic | $ | 11.96 | 0.17 | 12.13 | 0.32 | ||||||||||||||||||||||
| Diluted | $ | 11.87 | 0.17 | 12.04 | 0.32 | ||||||||||||||||||||||
| Number of shares (in thousands) used in computing: |
|||||||||||||||||||||||||||
| -basic earnings per common share | 10,033 | 9,965 | 10,024 | 9,948 | |||||||||||||||||||||||
| -diluted earnings per common share | 10,109 | 10,038 | 10,099 | 10,019 | |||||||||||||||||||||||
FRP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)
| June 30 | December 31 | ||||||
| Assets: | 2018 | 2017 | |||||
| Real estate investments at cost: | |||||||
| Land | $ | 83,709 | 87,235 | ||||
| Buildings and improvements | 146,580 | 147,670 | |||||
| Projects under construction | 2,028 | 1,764 | |||||
| Total investments in properties | 232,317 | 236,669 | |||||
| Less accumulated depreciation and depletion | 28,446 | 26,755 | |||||
| Net investments in properties | 203,871 | 209,914 | |||||
| Real estate held for investment, at cost | 7,176 | 7,176 | |||||
| Investments in joint ventures | 22,616 | 13,406 | |||||
| Net real estate investments | 233,663 | 230,496 | |||||
| Cash and cash equivalents | 32,849 | 4,524 | |||||
| Cash held in escrow | 278,573 | 333 | |||||
| Accounts receivable, net | 648 | 615 | |||||
| Federal and state income taxes receivable | — | 2,962 | |||||
| Unrealized rents | 595 | 223 | |||||
| Deferred costs | 1,228 | 2,708 | |||||
| Other assets | 178 | 179 | |||||
| Assets of discontinued operations | 2,210 | 176,694 | |||||
| Total assets | $ | 549,944 | 418,734 | ||||
| Liabilities: | |||||||
| Secured notes payable, current portion | $ | — | 125 | ||||
| Secured notes payable, less current portion | 88,720 | 90,029 | |||||
| Accounts payable and accrued liabilities | 3,072 | 2,081 | |||||
| Environmental remediation liability | 1,807 | 2,037 | |||||
| Federal and state income taxes payable | 728 | — | |||||
| Deferred revenue | 26 | 107 | |||||
| Deferred income taxes | 21,254 | 25,982 | |||||
| Deferred compensation | 1,455 | 1,457 | |||||
| Tenant security deposits | 47 | 54 | |||||
| Liabilities of discontinued operations | 46,456 | 32,280 | |||||
| Total liabilities | 163,565 | 154,152 | |||||
| Commitments and contingencies (Note 8) | |||||||
| Equity: | |||||||
| Common stock, $.10 par value 25,000,000 shares authorized, 10,046 019 and 10,014,667 shares issued |
|||||||
| and outstanding, respectively | 1,005 | 1,001 | |||||
| Capital in excess of par value | 57,324 | 55,636 | |||||
| Retained earnings | 308,397 | 186,855 | |||||
| Accumulated other comprehensive income, net | 38 | 38 | |||||
| Total shareholders’ equity | 366,764 | 243,530 | |||||
| Noncontrolling interest MRP | 19,615 | 21,052 | |||||
| Total equity | 386,379 | 264,582 | |||||
| Total liabilities and shareholders’ equity | $ | 549,944 | 418,734 | ||||
FRP HOLDINGS, INC. AND SUBSIDIARIES
DISCONTINUED OPERATIONS
(In thousands except per share amounts)
(Unaudited)
| THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||||||||||
| JUNE 30, | JUNE 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Revenues: | ||||||||||||||||
| Rental revenue | $ | 3,394 | 5,472 | 9,412 | 10,998 | |||||||||||
| Revenue – reimbursements | 716 | 1,169 | 2,245 | 2,330 | ||||||||||||
| Total Revenues | 4,110 | 6,641 | 11,657 | 13,328 | ||||||||||||
| Cost of operations: | ||||||||||||||||
| Depreciation, depletion and amortization | 1,217 | 1,929 | 3,102 | 3,762 | ||||||||||||
| Operating expenses | 464 | 795 | 1,642 | 1,566 | ||||||||||||
| Property taxes | 449 | 753 | 1,247 | 1,454 | ||||||||||||
| Management company indirect | 812 | 168 | 990 | 333 | ||||||||||||
| Corporate expenses | 655 | — | 1,402 | — | ||||||||||||
| Total cost of operations | 3,597 | 3,645 | 8,383 | 7,115 | ||||||||||||
| Total operating profit | 513 | 2,996 | 3,274 | 6,213 | ||||||||||||
| Interest expense | (187 | ) | (371 | ) | (587 | ) | (619 | ) | ||||||||
| Gain on sale of buildings | 164,807 | — | 164,807 | — | ||||||||||||
| Income before income taxes | 165,133 | 2,625 | 167,494 | 5,594 | ||||||||||||
| Provision for income taxes | 44,668 | 1,037 | 45,307 | 2,210 | ||||||||||||
| Income from discontinued operations | $ | 120,465 | 1,588 | 122,187 | 3,384 | |||||||||||
| Earnings per common share: | ||||||||||||||||
| Income (loss) from discontinued operations- | ||||||||||||||||
| Basic | $ | 12.01 | 0.16 | 12.19 | 0.34 | |||||||||||
| Diluted | $ | 11.92 | 0.16 | 12.10 | 0.34 | |||||||||||
Asset Management Segment:
| Three months ended June 30 | ||||||||||||||||||||||||
| (dollars in thousands) | 2018 | % | 2017 | % | Change | % | ||||||||||||||||||
| Rental revenue | $ | 546 | 96.1 | % | 536 | 96.9 | % | 10 | 1.9 | % | ||||||||||||||
| Revenue-reimbursements | 22 | 3.9 | % | 17 | 3.1 | % | 5 | 29.4 | % | |||||||||||||||
| Total revenue | 568 | 100.0 | % | 553 | 100.0 | % | 15 | 2.7 | % | |||||||||||||||
| Depreciation, depletion and amortization | 129 | 22.7 | % | 128 | 23.1 | % | 1 | 0.8 | % | |||||||||||||||
| Operating expenses | 91 | 16.0 | % | 128 | 23.1 | % | (37 | ) | -28.9 | % | ||||||||||||||
| Property taxes | 40 | 7.1 | % | 35 | 6.3 | % | 5 | 14.3 | % | |||||||||||||||
| Management company indirect | 50 | 8.8 | % | 24 | 4.4 | % | 26 | 108.3 | % | |||||||||||||||
| Corporate expense | 109 | 19.2 | % | 27 | 4.9 | % | 82 | 303.7 | % | |||||||||||||||
| Cost of operations | 419 | 73.8 | % | 342 | 61.8 | % | 77 | 22.5 | % | |||||||||||||||
| Operating profit | $ | 149 | 26.2 | % | 211 | 38.2 | % | (62 | ) | -29.4 | % | |||||||||||||
Mining Royalty Lands Segment:
| Three months ended June 30 | ||||||||||||||||
| (dollars in thousands) | 2018 | % | 2017 | % | ||||||||||||
| Mining Royalty and rents | $ | 2,033 | 98.9 | % | 1,809 | 98.7 | % | |||||||||
| Revenue-reimbursements | 22 | 1.1 | % | 24 | 1.3 | % | ||||||||||
| Total revenue | 2,055 | 100.0 | % | 1,833 | 100.0 | % | ||||||||||
| Depreciation, depletion and amortization | 36 | 1.8 | % | 35 | 1.9 | % | ||||||||||
| Operating expenses | 40 | 1.9 | % | 39 | 2.1 | % | ||||||||||
| Property taxes | 61 | 3.0 | % | 58 | 3.2 | % | ||||||||||
| Corporate expense | 52 | 2.5 | % | 28 | 1.5 | % | ||||||||||
| Cost of operations | 189 | 9.2 | % | 160 | 8.7 | % | ||||||||||
| Operating profit | $ | 1,866 | 90.8 | % | 1,673 | 91.3 | % | |||||||||
Land Development and Construction Segment:
| Three months ended June 30 | ||||||||||||
| (dollars in thousands) | 2018 | 2017 | Change | |||||||||
| Rental revenue | $ | 214 | 214 | — | ||||||||
| Revenue-reimbursements | 103 | 119 | (16 | ) | ||||||||
| Total revenue | 317 | 333 | (16 | ) | ||||||||
| Depreciation, depletion and amortization | 57 | 110 | (53 | ) | ||||||||
| Operating expenses | 367 | 40 | 327 | |||||||||
| Property taxes | 231 | 283 | (52 | ) | ||||||||
| Management company indirect | 292 | 283 | 9 | |||||||||
| Corporate expense | 283 | 217 | 66 | |||||||||
| Cost of operations | 1,230 | 933 | 297 | |||||||||
| Operating loss | $ | (913 | ) | (600 | ) | (313 | ) | |||||
Dock 79 Segment:
| Three Months Ended June 30 | ||||||||||||||||
| (dollars in thousands) | 2018 | % | 2017 | % | ||||||||||||
| Rental revenue | $ | 2,590 | 99.1 | % | — | — | % | |||||||||
| Revenue-reimbursements | 23 | 0.9 | % | — | — | % | ||||||||||
| Total revenue | 2,613 | 100.0 | % | — | — | % | ||||||||||
| Depreciation and amortization | 1,909 | 73.1 | % | — | — | % | ||||||||||
| Operating expenses | 605 | 23.1 | % | — | — | % | ||||||||||
| Property taxes | 279 | 10.7 | % | — | — | % | ||||||||||
| Management company indirect | 113 | 4.3 | % | — | ||||||||||||
| Corporate expense | 95 | 3.6 | % | — | — | % | ||||||||||
| Cost of operations | 3,001 | 114.8 | % | — | — | % | ||||||||||
| Operating profit | $ | (388 | ) | -14.8 | % | $ | — | — | % | |||||||
Asset Management Segment:
| Six months ended June 30 | ||||||||||||||||||||||||
| (dollars in thousands) | 2018 | % | 2017 | % | Change | % | ||||||||||||||||||
| Rental revenue | $ | 1,099 | 95.6 | % | 1,113 | 96.7 | % | (14 | ) | -1.3 | % | |||||||||||||
| Revenue-reimbursements | 50 | 4.4 | % | 38 | 3.3 | % | 12 | 31.6 | % | |||||||||||||||
| Total revenue | 1,149 | 100.0 | % | 1,151 | 100.0 | % | (2 | ) | -0.2 | % | ||||||||||||||
| Depreciation, depletion and amortization | 260 | 22.6 | % | 260 | 22.6 | % | — | 0.0 | % | |||||||||||||||
| Operating expenses | 229 | 19.9 | % | 252 | 21.9 | % | (23 | ) | -9.1 | % | ||||||||||||||
| Property taxes | 79 | 6.9 | % | 71 | 6.2 | % | 8 | 11.3 | % | |||||||||||||||
| Management company indirect | 74 | 6.5 | % | 46 | 4.0 | % | 28 | 60.9 | % | |||||||||||||||
| Corporate expense | 112 | 9.7 | % | 91 | 7.9 | % | 21 | 23.1 | % | |||||||||||||||
| Cost of operations | 754 | 65.6 | % | 720 | 62.6 | % | 34 | 4.7 | % | |||||||||||||||
| Operating profit | $ | 395 | 34.4 | % | 431 | 37.4 | % | (36 | ) | -8.4 | % | |||||||||||||
Mining Royalty Lands Segment:
| Six months ended June 30 | ||||||||||||||||
| (dollars in thousands) | 2018 | % | 2017 | % | ||||||||||||
| Mining Royalty and rents | $ | 3,783 | 98.9 | % | 3,548 | 98.7 | % | |||||||||
| Revenue-reimbursements | 44 | 1.1 | % | 47 | 1.3 | % | ||||||||||
| Total revenue | 3,827 | 100.0 | % | 3,595 | 100.0 | % | ||||||||||
| Depreciation, depletion and amortization | 90 | 2.4 | % | 74 | 2.1 | % | ||||||||||
| Operating expenses | 80 | 2.1 | % | 78 | 2.2 | % | ||||||||||
| Property taxes | 121 | 3.2 | % | 117 | 3.2 | % | ||||||||||
| Corporate expense | 129 | 3.3 | % | 94 | 2.6 | % | ||||||||||
| Cost of operations | 420 | 11.0 | % | 363 | 10.1 | % | ||||||||||
| Operating profit | $ | 3,407 | 89.0 | % | 3,232 | 89.9 | % | |||||||||
Land Development and Construction Segment:
| Six months ended June 30 | ||||||||||||
| (dollars in thousands) | 2018 | 2017 | Change | |||||||||
| Rental revenue | $ | 395 | 394 | 1 | ||||||||
| Revenue-reimbursements | 219 | 214 | 5 | |||||||||
| Total revenue | 614 | 608 | 6 | |||||||||
| Depreciation, depletion and amortization | 114 | 165 | (51 | ) | ||||||||
| Operating expenses | 475 | 107 | 368 | |||||||||
| Property taxes | 499 | 549 | (50 | ) | ||||||||
| Management company indirect | 533 | 565 | (32 | ) | ||||||||
| Corporate expense | 702 | 725 | (23 | ) | ||||||||
| Cost of operations | 2,323 | 2,111 | 212 | |||||||||
| Operating loss | $ | (1,709 | ) | (1,503 | ) | (206 | ) | |||||
Dock 79 Segment:
| Six Months Ended June 30 | ||||||||||||||||
| (dollars in thousands) | 2018 | % | 2017 | % | ||||||||||||
| Rental revenue | $ | 5,003 | 99.3 | % | — | — | % | |||||||||
| Revenue-reimbursements | 35 | 0.7 | % | — | — | % | ||||||||||
| Total revenue | 5,038 | 100.0 | % | — | — | % | ||||||||||
| Depreciation and amortization | 4,065 | 80.7 | % | — | — | % | ||||||||||
| Operating expenses | 1,184 | 23.5 | % | — | — | % | ||||||||||
| Property taxes | 587 | 11.7 | % | — | — | % | ||||||||||
| Management company indirect | 209 | 4.1 | % | — | ||||||||||||
| Corporate expense | 237 | 4.7 | % | — | — | % | ||||||||||
| Cost of operations | 6,282 | 124.7 | % | — | — | % | ||||||||||
| Operating profit | $ | (1,244 | ) | -24.7 | % | $ | — | — | % | |||||||
John D. Milton, Jr.
Chief Financial Officer
904/858-9100