Author Topic: FRPH - FRP Holdings Inc  (Read 15997 times)

Williams406

  • Sr. Member
  • ****
  • Posts: 258
Re: FRPH - FRP Holdings Inc
« Reply #30 on: November 08, 2018, 09:55:52 AM »
FRP 3Q Call Transcript:

https://finance.yahoo.com/news/edited-transcript-frph-earnings-conference-055948576.html


Comments on real-estate development projects by David deVilliers:
"These aforementioned projects will utilize approximately $128 million of equity over the next several years, including $38 million for the committed projects and $90 million for those that are in the letters of intent stage and subject to continued due diligence."

For now, it looks like they are deploying quite a bit of capital toward RE development. Not that surprising given I doubt good aggregate properties hit the market all that often.


Gregmal

  • Hero Member
  • *****
  • Posts: 1364
Re: FRPH - FRP Holdings Inc
« Reply #31 on: December 07, 2018, 06:53:31 AM »
This has gotten very interesting again. Different situation than before but now you more or less have what I consider a partial SPAC, with "other" assets that I think are unique, well managed, and poised to do well in any type of economic scenario. I believe they've already said if they can't find anything to buy they will just do a special dividend. I added more this morning. Back into top 5 for FRP!

Spekulatius

  • Hero Member
  • *****
  • Posts: 2242
Re: FRPH - FRP Holdings Inc
« Reply #32 on: December 07, 2018, 07:55:56 PM »
I started a position as well, basically riding BG2008‘s coattails here. I think it is at least an 80c on the dollar type of valuation and with a good management team in place, that is cheap enough, IMO.
To be a realist, one has to believe in miracles.

thepupil

  • Hero Member
  • *****
  • Posts: 1161
Re: FRPH - FRP Holdings Inc
« Reply #33 on: December 08, 2018, 08:18:22 AM »
Bought back in yesterday as well...in significant size.

$45 / share with NAV of $60+
Cash Rich (though this will change as they deploy)
Virtually Unlevered (all debt at Dock79)
Good people (note that way upthread I dismissed the management after a cursory look, glad to have changed my mind, with significant help from others like Bill, and made 95% on the first trade from L-M$30's to H$50's)

My only concern is I don't have as high conviction on them doing development where they aren't using legacy land. For example the Bryant Street* development seems like a project where they are just commodity investor capital (any institutional investor could do that). Now I understand they're partnering with MRP, the same folks who did Dock79 and that the Opportunity Zone gives them a very nice tax incentive to do it, it just seems like less of a slam dunk than contributing low basis land and a little cash in SE Waterfront next to the ballpark. Feels a bit more dramatic of a bet on the continued gentrification/stability of heretofore dicey parts of DC.

Take a Google streetview walk around that area (I could also get off my ass and take a metro ride there, but I haven't done so yet).

Ultimately, I trust management and it will probably work out well.

The rock pits and other assets give you a little breathing room on the more risky development stuff they're doing on a go-forward basis.


*At the end of this quarter, the Company signed a Letter of Intent to enter into a joint venture agreement with MidAtlantic Realty Partners (MRP) for the development of the first phase of a multifamily, mixed-use development in northeast Washington, DC known as “Bryant Street.”  FRP plans to contribute to the joint venture $35 million in common equity and another $20-25 million in preferred equity.




Gregmal

  • Hero Member
  • *****
  • Posts: 1364
Re: FRPH - FRP Holdings Inc
« Reply #34 on: December 08, 2018, 01:11:39 PM »
I think another pretty neat way to look at this is as follows; Back a year ago or whatever, when we were pretty much sitting around these same levels... had everyone plugged the ~$360M warehouse sale figure into your NAV calcs, what would have been your thoughts? First thought would probably be, that's too optimistic.

Spekulatius

  • Hero Member
  • *****
  • Posts: 2242
Re: FRPH - FRP Holdings Inc
« Reply #35 on: December 09, 2018, 04:42:07 AM »
I think another pretty neat way to look at this is as follows; Back a year ago or whatever, when we were pretty much sitting around these same levels... had everyone plugged the ~$360M warehouse sale figure into your NAV calcs, what would have been your thoughts? First thought would probably be, that's too optimistic.

Yes, that is correct. I would have given the warehouses a valuation of less than $280M for sure. They have created nice value with the sale there.
To be a realist, one has to believe in miracles.

Williams406

  • Sr. Member
  • ****
  • Posts: 258
Re: FRPH - FRP Holdings Inc
« Reply #36 on: December 09, 2018, 09:58:10 AM »
Thepupil,  Your point regarding FRP providing "commoditized" RE development financing captures my concern. I'm curious to know if those of you buying here would buy more or less aggressively if FRP was sitting on the proceeds.

I bought a bit more H40's and think it will be tough to lose money long term here. Also regard DC as a very unique MSA so I don't hate the announced projects thus far. I just note they are different than what FRP has done in the past.

Gregmal

  • Hero Member
  • *****
  • Posts: 1364
Re: FRPH - FRP Holdings Inc
« Reply #37 on: December 09, 2018, 01:46:46 PM »
It might sound simple, but it's kind of a non factor for me. Here's why.

There are plenty of examples I am sure we can all relate to, where we've observed a combination of: businesses we like with managements we dont produce surprising results that were good. Businesses we like, with management groups we like, produce bad results.

So taking this into consideration, I am more inclined to base my confidence on the track record of the Bakers and their extreme consideration for creating per share value, rather than my confidence/understanding/2 cents on what they are doing to get there. That is not to say one should never care/question the above, but it isn't as though these guys are betting the ranch on anything crazy. They've shown me they are very serious about not making a bad decision with this capital, and as such, I think if they've identified something that they deem worthy, I say, go get em boys.

There's plenty of businesses both public and private run by great, knowledgeable people, whom operate in businesses outside of my circle of competence, that I'd happily give some money to. Investing in great people is IMO equally as important as investing in a great business. It's important to let great minds just do their thing without interference or second guessing. I think this is one of Buffett's bigger themes too when you look at how he handles acquired companies.
« Last Edit: December 09, 2018, 01:51:14 PM by Gregmal »

BG2008

  • Hero Member
  • *****
  • Posts: 853
Re: FRPH - FRP Holdings Inc
« Reply #38 on: December 19, 2018, 08:52:38 AM »
Somebody fat figured the trade earlier today

mjm

  • Newbie
  • *
  • Posts: 19
Re: FRPH - FRP Holdings Inc
« Reply #39 on: December 19, 2018, 09:28:48 AM »
see 626 shares at 41.51.   will teach someone not to do a market order