Q2 2021 FRP Holdings Inc Earnings Call
Excuse me everyone. Thank you for your patience in holding please continue to remain holding on the line. This conference will begin momentarily again. Please continue to remain holding on the line. This conference will begin momentarily. Thank you.
[music].
Excuse me everyone. We now have John Baker Executive Chairman of FRP Holdings incorporated in conference. Please be aware that each of your line is in a listen only mode.
At the conclusion of Mr. Baker's presentation, we will open the floor for questions at that time instructions will be given as the procedure to follow if you'd like to ask a question.
I'd now like to turn the conference over to John Baker, Sir you may begin.
Good morning, Thanks for joining us today are John Baker, the second chairman and CEO of FRP Holdings, Inc.
With me today on this call are David to V. A junior President of the company David David Yeah. The third executive Vice President John Baker, The third CFO, John Milton, Our General Counsel, and John Klopfenstein, Our Chief Accounting Officer.
Before we begin let me remind you that this presentation may contain forward looking statements such statements reflect management's current views with respect to financial results related to future events and are based on assumptions and expectations that may not be realized in our inherently.
Subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not be anticipated.
Future events and actual results financial or otherwise may differ perhaps materially from the results discussed in such forward looking statements risk factors are discussed in our SEC filings and annual quarterly and quarterly results.
These forward looking statements are made as of this day and based on management's current expectations. The company does not undertake on obligation to update such statements other than as imposed by law and investors are cautioned not to place undue reliance on such forward looking statements.
The second quarter saw revenues and NOI grow 45 per cent and 37% respectively versus the same quarter last year.
Royalty revenues were the highest John our history and the likelihood of passage.
A federal infrastructure Bill gives us an expectation that the royalty earnings will continue their secular growth.
Net income for the quarter was $82000 or 1 cent per share versus $4 million $149000 or <unk> 43 cents per share a year ago driving this decline was the amortization of the leases in place as a result of lag.
Last quarter's consolidation of the Marin and VH leases in place, which was part of the write up of that asset.
Also contributing to the decline in earnings was the interest on the now consolidated Marin loans and lower gains on the sale of real estate.
Let me now turn it over to David <unk> to walk you through our operating results.
Thank you John and good morning to those on the call today.
I'll now offer some detail to the financial highlights provided by John in his opening remarks.
Since the 2018.19, the dispositions of our warehouse platform totaling a little over 4 million square feet.
We have been actively seeking value add purchase opportunities.
<unk> lands for vertical construction and new strategic partnerships.
Additionally, we have continued to develop and construct speculative projects upon to our land inventory 1 available on fruit.
In early 2019, we added an asset to our asset management business segment through the purchase of the Cranberry run business Park in Aberdeen, Maryland.
268000 square foot multi building warehouse park that was in dire need of rehabilitation.
We completed an extensive renovation on the business park and associated buildings late last year.
Due to the nature of the short term lease program with Cranbury, we have had some turnover.
And at the end of June 2021 the parks stood at 77, 6% leased.
59, 7% occupied.
Versus 71, 9% leased and occupied during the same period last year.
Thank you for locked in our home office is 95, 1% occupied and we've recently completed a much needed renovation for the first for lobby and common areas.
Total revenues for the asset management segment for the quarter were down 71, 9% or $128000 over the same period last year to $588000, mainly as a result of the sale of our 94000 square foot industrial building at 18 O 160 <unk>.
<unk> Street in July of 'twenty 1.
18 O 162nd Street was responsible for $163000 of revenue in Q2, 2 on each 1.
We realized an operating loss of $160000 down $218000 from an operating profit of 58000 in the same quarter last year again, primarily due to the sale of 18 O 162nd Street.
Other assets in this segment remain leased and occupied as in previous periods.
The mining and royalties business segment remained strong with revenues of 2 million.
$634000, an increase of $232000 over Q2 'twenty 'twenty. This was the most revenue in any second quarter ever.
Operating profit was 2.292 million, which represents a $182000 increase over the $2.110 million. Realizing this period last year.
With respect to ongoing and new projects in our development business segment.
We have several really strong highlights.
1 the quarters in phase 1 of our joint venture with St. John properties, consisting of 4 buildings totaling 72080 square feet of single story office and 27950 square feet of small Bay retail space in Baltimore County, Maryland gained a retail tenant.
During the quarter, increasing the percentage of mouth, but he used to 48 with occupancy of 46.8 per cent.
These asset classes of office and retail.
Especially hard by the pandemic.
Tennis at Windlass, though have kept current with their rental payments and we are encouraged by some increased leasing activity here.
After the sale of our 92000 square foot warehouse at 18 O 162nd Street in Baltimore in July of last year, we were encouraged by the velocity of the sub market and began construction of 2 speculative shell warehouse buildings totaling 145007 hundred square feet.
At our Hollander business Park near the Port of Baltimore.
Like their predecessor. These are state of the art class a concrete tilt up buildings.
With 28 foot on 32 foot clear ceiling heights built the Baltimore City Green building standards.
Active leak free leasing in that have free leased 39%.
1 building and are encouraged for the continued activity in the Submarket.
We expect to complete and deliver both buildings in the third quarter of 2021.
Also in the second quarter of this year, we executed a build to suit lease for 101750 square foot facility.
1941, 62nd Street.
This is the last building lot in Hollander business Park.
We plan to commence construction on this project in the third quarter of this year and expect to deliver the building to the China before the end of calendar year 2022.
We continue with a P D entitlement process, our Hampstead overlook project.
118 acre development track in Hampstead, Maryland. The concept plan approved at the end of last year calls for 160 for single and 91 Townhome units. We are currently seeking preliminary plan approval from the local agencies says the next step in the development process.
We are optimistic the 2021 will be the year of substantial progress towards this goal.
As an update to our lending venture investments program.
Hyde Park in Baltimore County, Maryland is now complete.
All principal and accrued interest has been repaid and preferred interest and share profits totaling 1 point over $3 million have been received.
And other lending venture called Amber Ridge is located in Prince George's County, Maryland.
Our total commitment for this project was $18.5 million.
As with our high Park venture investment includes a charged 10% interest rate and a minimum preferred return of 20 per cent.
Above which a profit for waterfall determines the final split of proceeds.
Titled Mr Complete.
Land development is fully underway on 2 national homebuilders are under contract to purchase all 187 lots.
After completion of the infrastructure development.
The first set of finished lots are scheduled to be delivered to the purchasers in the third quarter of this year.
On the joint venture front.
At the end of 2018, we entered into our third joint venture with MRP to develop the first phase of a mixed use residential and retail development project adjacent to the Red line Metro station in Northeast, Washington D C.
Known as Bryant Street.
As a transit oriented development immediate access to public transportation options as a critical feature for the design and marketing of this project.
The first building named Coda was placed in service on January 1st of this year and received final certificates of occupancy on April 1st 2021 for all 154 of its apartments.
Thanks to herculean efforts from our leasing team.
Coda was 88, 3% leased.
67, 5% occupied at the end of the second quarter.
Of note as of August 1st.
Coda was 93.5% leased and 85.7% occupied.
With the leasing success at Kona.
Fight Covid challenges, we are optimistic about the leasing velocity for the neighboring 2 buildings at Brian Street called Chase.
These 2 buildings are scheduled to be open and ready to receive tenants in mid August.
In total phase wanted Brian Street will consist of 487 apartments and 3 buildings from 89196 square feet of first floor freestanding and open air retail.
68691 square feet or 77 per cent of the retail is now free leased and expected to open for operations by year end.
This property is located at designated opportunity zone, which allows us to defer a significant tax liabilities.
In December of 2019, the company entered into force joint venture with MRP for the development of a mixed use project at 1800 half Street in southwest Washington D. C. In the Buzzard point area, just a few blocks down river for Mariner Dock 79.
In August of 'twenty, 'twenty, we'd began construction.
The project now known as the verge.
Lives directly between our 2 acres on the Anacostia River currently under lease to Vulcan materials, and Audi field. The home stadium the D C United Soccer franchise.
This 10 story structure will have 340 for apartments, and 11246 square feet of ground for retail is scheduled for completion in the summer of 2022.
At quarter's end.
<unk> was 27% complete.
This project is also located in an opportunity zone.
Also in December of 2019, we entered into to join.
Joint venture agreements with Woodfield development to invest in 2 distinct projects in Greenville, South Carolina.
What's the old has vast experience developing residential and mixed use projects throughout the south Eastern Washington D C.
The first JV called Riverside is a 200 unit 3 building apartment project.
Struction began in the first quarter of 2020, and it's on the doorstep of completion free leasing efforts began the last week of July.
The second JV with Woodfield is a 227 unit multifamily.
Element entitled Point for OE Jackson.
A nod to Shoeless, Joe Jackson, and adjacent to Greenville Minor League Baseball Stadium.
This project will also include 4700 square feet of retail space.
Construction began in May of 2020 and should be complete in the summer of 2022 for.
Currently this project is 54% complete.
Riverside endpoint for OE Jackson represented 15.9 million dollar investment from FRP for.
For the 40% ownership interest in these 2 South Carolina projects, which are both opportunity zone investments.
The structure of these investments will ultimately allow us it's for a total of $4.3 million in federal taxes.
Relative to our industrial development platform.
Late last year, we completed the purchase of a 55 acre tract of land in Aberdeen, Maryland.
Jason to the Cranberry run business.
Purchase price for this property was $10.5 million.
This project will be known as Cranberry run business Center phase 2.
And it can support up to 675000 square feet of warehouse product and a robust distribution market.
This purchase expands our industrial land holdings to allow us to continue the industrial development program beyond the nearly complete Hollander business Park in Baltimore City.
We are currently participant pistoning for annexation.
You bring all partners, Paul parcels that make up the assemblies into the same municipal boundaries.
This process will take the rest of this year and we have begun on the design process in here.
6 existing land leases for the storage of travelers on site.
Will help to offset our carrying an entitlement costs.
Average monthly revenue from land leases for the second quarter were in excess of $42000.
We are hopeful we can begin vertical construction here in early 2023.
Moving on to our stabilized joint ventures business segment in July of 2019, we completed a partial 10.31 like current exchange on investing $6 million for 26, 6% beneficial interest in a Delaware statutory trust for.
For D. S. T that owns a 290 for unit Garden style apartment community known as Hickory Creek located in Henrico County, Virginia.
The complex was constructed in 1984 and substantially renovated in 2016.
The business plan calls for further rehabilitation departments generating value added rents prior to selling the project after an appropriate hold period.
We continue to receive monthly distributions from operations that equity free.
Q2, 'twenty, 1 distributions were $87000.
For the 525 per cent per annum on our investment on.
Occupancies average above 20, <unk> 95 per cent for this project.
In March of this year phase 2 of our riverfront on the Anacostia project in Washington D C.
Known as Marin reached stabilization or 90% occupancy of its 260 for apartment units and as a result of this milestone.
Dock 79 in Hickory Creek, and our stabilized joint ventures business segment.
At quarter's end 90 for 1.7% of the apartments were leased and 93.9% were occupied.
Relative to the 6900 square feet of first for retail.
100 per cent of the spaces leased with occupancy is currently scheduled for the third and fourth quarters of this year.
As with Dock 79. This is a joint venture with mid Atlantic Realty partners for MRP.
Which FRP is the majority partner.
Of particular note. This building received its final certificate of occupancy at the end of March 2020.
And reached stabilization on 90% in less than 12 months.
This is a testament to the quality of location and product delivery market.
And the skill and leadership on the ground managing the day to day operations.
As a result of the quick stabilization on this project.
And certain construct contractual obligations to our joint venture development partner Frp's ownership interest in Marin is now 70 point for 1% down from 80% prior to stabilization.
Relative to dock 79 is 305 apartments, where 95, 2% occupied on average year to date and were 94, 1% leased and 96, 4% occupied at quarters end.
Marking the third quarter on a row with occupancy levels above 94 per cent.
Our retention rate at the Ark was 61, 4% down slightly from 62, 3% last year.
Rental rates, however were flat due to continued government imposed restrictions on rent increases due to COVID-19.
These restrictions are currently scheduled to expire at the end of the year.
Dock 79 is fared quite well over the past year. Despite the significant interruptions, we all experience.
So seriously impacted by Covid with shutdowns reduced capacity canceled stadium events and general uncertainty our 3 retail tenants at dock 79.
Which total approximately.
10500 square feet of the total 14000 square for retail space seem to be holding their own.
And have made significant headway towards normalcy.
With the loosening of some restrictions warmer weather better utilization and other outdoor spaces and stadium events with spectators.
Particular note overage rental payments received for the second quarter were $120000 for the 3 retail tenants.
In early April the remaining retail space became leased and we look forward to fill retail occupancy in late 2021.
Dock 79 was our first joint venture with MRP and FRP is the major partner with 66% ownership position.
Revenues for the quarter for both dock 79 in Marin for $4.8 billion.
Up 96, 7% over the same period last year, primarily due to merit lease up.
Marin rebate revenue represents 2.16 million.
And dock 70 on claims to 6.6 million in revenue an increase for Doc for $208000 over the same period last year.
NOI for the quarter on this business segment was.
It was 3 million little over $3 million up 1.38 million, which is 83.6% over the period last year. Thanks again for the addition of Marin to this business segment on its listing success.
We have touched a few times on the impact Covid has had on that book.
Despite the arrival of the day also variant summer is in full swing throughout our portfolio and life is looking more normal every day.
Major League and minor League baseball was back bars.
Bars, and restaurants are open both inside and out.
Trucks are moving goods and tenants are leasing space. These are strong signals for us first line and as a business that new life, new energy and new opportunities for happening every day.
We have been extraordinarily fortunate that our warehouse for platform is performing at least as well as it has historically.
Construction material needs have kept mining revenue solidly positive.
We continue to identify new opportunities despite rochus competition for deals and the timing for construction delivery of several of our multifamily and mixed use projects have lent themselves to capitalize on the reemergence of activity.
However, we have not been unscathed by the effects of this terrible global disease and.
Notwithstanding the good news, we do expect to see the continuation of limited retail and office leasing as some business categories remain uncertain amidst the unique regulatory and public health plan.
We are cautiously optimistic but also realistic.
FRP has adjusted its operations withstood infected employees and contractors held the hands of tenants paralyzed by new government regulations, preventing opening for their business and witness the terrible results for this global pandemic.
Now we have employees back on the op is collaborating on interacting on a regular basis and we are building back toward an FRP to there's more recognizable than over the past 16 months.
All the while we remain grateful that as a company and group of professionals, we're solidly grounded and uniquely prepared to progress as an organization loyal to our mission that has served us well both before and during COVID-19.
You and I'll now turn the call back to John.
Thank you David.
We'll now open it up for questions from the floor.
At this time, we will open up for questions.
I'd like to ask a question. Please signal by pressing the star key followed by the 1 key on your touch 10th on now.
Vince will be taken.
And on which they all received on that that any time, you would like to remove yourself from the questioning queue. You May press star team.
On to ask a question that is top line.
Our first question comes from Bill Chen with <unk>.
Zone partners.
Hi, guys.
Good morning Bill.
Good morning, I didn't realize I was gonna go number 1.
[laughter] well Great result has always got a few questions and I think I'll just run through them.
What on the first quarter, our filing is show that the split between FRP and MRP was 70.238, I think there was some adjustments.
On the MRP wind up getting a little more what what was the final split.
On the final for the Merit.
What we started as you know we started out at 80% and then as we started to get go through the process.
We had some early on appraisals for.
For BDO and some of those programs that took us to something that was much less than what ultimately the market value.
It was determined for the building during our negotiations so we recorded that the.
Our ownership at 72% for the end of the first quarter.
And then we actually went through the process of the appraisals on that sort of thing and it reduced our ownership a little bit further to the agreed upon ownership percentage of 70 point, 41% for FRP and that's what it'll be going forward.
So that's 770 point for.
7 zero point for 1 yes.
Okay Gotcha.
Yep. Thank you.
The.
Hum.
When you see it.
If I on Bryant Street.
I think the you referenced that 67 per cent of the retail is pre lease and I saw a business article that gave a pretty good.
Kind of a summary on the progress there what is I.
I know Alamo is moving forward with opening that location I guess, what is the key remaining space that needs to be leased for Brian Street.
Well, we have we.
We have several different types.
Bill as you go as you alluded to.
Retail there Brian Street.
We have obviously the Alamo, which is why we have what we call small shop small shop retail, which is your basic inside retail.
Also have a food hall concept it totals about 9400 square feet and then we have what we call on outside pop off retail and that's an area for outside activities and that sort of thing, which is a which is effectively 100% leased and waiting for its final certificate of occupancy so the areas of the building.
The most lease up is probably the small shop retail.
Because that totals about 23000 square feet across all for buildings that we have 9000 square feet of that pre leased.
Yeah.
And that's 9000 prelease okay.
Yeah of that particular type yeah.
Yeah.
The virtual card bar costs, it looks it looks really cool.
Yeah.
That's the outside pop up.
Yep Yep, that's yes, I'm jealous you guys get to do some stuff that.
Net folks here in New York, just don't have the chance to do stuff like that so that's a that's really cool.
The.
Jumping around back to dock 79, you mentioned that the overage came in on the restaurants at back 79 days of 120000.
Hmm, how does that compare to 2019, which is a more normal year.
Well, we weren't we didn't have all 3 of them up and operating fully in line team. So it's kind of hard to.
You know the compare the 2.
But it is.
At least a couple of the rest of the 2 restaurants that we're operating fully.
It's back to where they were in 19.
Oh Wow, Okay. That's.
That's fantastic.
No.
19 might've been.
Sure.
Almost unrealistically exceptional given that the NAV went to the World series and.
That obviously helped.
Yep.
Got you that's helpful color I actually was down there in October 19, net I remember be mob.
The.
Can you update us again on that remaining space.
That was space that got lease.
What's that concept for and how how many square what is that for.
Bill It's about 3500 square feet, it's right on the Esplanade and they're under construction there and then now it's a carnival well a little bit of a different concept. It's a it's got kind of a.
A bike theme to it.
There'll be more I think breakfast and lunch served there then certainly the other the other bad news. So we think it works very well with.
With the other venues that are they're talking Marin.
Gotcha. Thank you that's that's helpful.
The.
On Riverside in Greenville, everything that I've been hearing about Greenville has kind of exceeded my expectation I know that you guys have not started leasing yet but.
In terms of the go to market asking Brian.
Like how does that compare to what you guys had previously budgeted for.
It is just that what what I and I ask I know, it's kind of unfair of a question, but everything that I've been reading about some bell multifamily is that rents are up double digits. So I was just wondering on Riverside, if you're you're seeing kind of similar.
Outlook on rent there.
Yeah.
Well, it's a little early to tell.
Bill the Riverside is basically 3 build on a 3 building program. The first 1 we did not do on a real free leasing there prior to the occupancy. We just felt that that was a better plan for that.
And the first building literally opened up last week.
So I believe we've been like 9 or 10.
On pre leases already and they seem to be somewhat equivalent to work with what our budgeted numbers for us.
But it's on the early testing.
We'll have a better idea next quarter.
Gotcha Yeah.
And I know like I am proud of my question is probably a little bit early but the excitement on the investment community towards Sunbelt multifamily had just been off the charts lately.
And my last question would be on Bryant Street.
No code is kind of a more affordable product.
On the leasing on non has been absolutely astonishing.
Any thoughts on the remaining assets I guess, they're kind of 15, 20% more expensive on a per square foot basis.
Condo.
Yields on on kind of demand for for the remaining products.
Well, we just again with the success of the coda. We're obviously encouraged about the leasing velocity for these 2 buildings chase.
Chase. This you know is 2 buildings. They total about 150 some units per building and we did not do any free leasing there because of the Oh I'm.
Trying to get total word it is and obviously the success of coda is certainly.
Bolstered our encouragement towards the chase, but it literally we.
Believe that Friday, we got the we.
We got the certificates of occupancy for the first couple of floors. So.
Again little premature.
On on the being able to answer that question Bill because we're literally 3 days for them to you.
And to Chase, we've got a tremendous amount of activity there, but it's a little early to tell about the rents.
Gotcha.
Thank you for that color and EM.
1 last question.
In the filing you mentioned that.
You know that the rent the rent.
On the rent regulation in D. C. It's gonna be February before we could actually increase sweat and dock 79 in the mail line.
Our finger on the air.
Then I guess by that point would be about 2 years before we can raise rents in the Marin dock 79 finger on the year. What do you think the spread will be once were able to increase France, and then is it fair to assume something like a 5% rent bump.
We're able to increase rent than the dock 79 in the Marin.
I'm, just kind of thinking 2 years, 2 and a half 3% per year that we werent able to push through is that a fair assumption.
That's your assumption I don't necessarily disagree, but it's a little early to tell I mean again the.
B.
Currently the rent freeze is scheduled to expire.
In December the end of December we do these renewals and so forth and so on out about.
About 60 day, so that takes us into February or possibly March.
So it really kind of determines the timing is important.
There is a psychological aspect to leasing spaces in the first quarter versus the second so it's really kind of hard to tell.
It's just too far off runs to really be able to offer that much of an opinion.
Yeah Bill.
A little.
A little color would be that the average rent and <unk>.
Marin is $4 a foot and the average in dock is 350.
Mhm.
So you know.
I would expect debt that dock would move up and and you know of course know Marin frozen and Joe.
Hopefully there'll be at least what you are saying.
Gotcha Gotcha.
Well. Thank you gentlemen, those those are all my questions.
All great results and look.
Look forward to being down there for you all.
To see these assets in person sooner rather than later.
Thank you.
Thank you Bill love to see you.
We'll take our next question from Steven <unk> with Oppenheimer <unk> close.
Yeah.
Okay.
Good morning, everyone.
Okay.
Good morning.
I just had a quick question with respect to our Brian Street will follow a similar path as the Marin in dock 79 and that upon stabilization.
On a refinancing consolidate or is and stabilization of all for buildings when that would happen.
It will not follow that that path even.
Because of the opportunity zone.
Prevent we.
We just had a different setup for that than for dock 79.
And the Marin so.
Yeah, it'll stabilize and we'll refinance that.
It will not consolidate onto our books because.
It doesn't have the same you know.
Control trigger when it hits a stabilization so it'll stay on that joined it.
Joint venture.
Equity accounting, yeah equity accounting.
Uh huh.
And do you expect that to happen for the code.
And in this quarter or.
It has to be the whole projects. So we can hold on to chase it but yes.
Yes.
Okay, good that makes sense.
Yeah.
Debt.
Yeah on the next year really for the next quarter and in 2 years, we have a lot of the development projects are in the pipeline that are coming to market in the next 2 to 3 years down the line. What's your outlook on capital allocation are you seeing opportunities NAV at the pipeline or.
Will you begin to shift focus towards developing phase 3 and for the N of cost yet.
I think we have you know we look at all aspects of our business. The same way, we will see how Tao Bryant Street goes we're work doing some free development.
And all of our areas there.
But we don't so that if and when the time comes we're not going through just the having to wait to develop to go through the entitlement process that takes a long time in the district of Columbia.
Mhm.
And are you seeing a lot of that other residential buildings coming to market right now to where I don't know.
I'm, sorry, you broke up a little bit Steven.
In the D C area here you're seeing.
A lot of competing residential buildings around Brian Street, and near the Marin.
Yes, there's there's other there's other obviously developments going on and on and around our projects.
Aaron and Brian Street, we think we've got some some some specifically special programs that Brian Street that a lot of the other developments don't lap.
Not the least of which is a lot of open space and outdoor venue activity.
Most of the place of the urban developments there do not have the same thing holds true for Marin and dock being down on the water.
Mhm.
Good day, we'd like to think they have it like that.
Like to think we have a leg up.
Yes me too.
Steven.
Dig further into your question.
<unk>.
We would go to a phase 2 at Bryant free if phase 1 is as successful as we think.
And so that's.
That's certainly part of R. R.
Pipeline.
You have phases 3 and for.
Down on the waterfront and they're certainly part of our pipeline and of course half Street well.
We will be coming on.
And in the Meanwhile, too so yeah we.
A long runway of.
<unk>.
We're excited about.
No.
I can't stress.
How amazing the lease up of coda has been I mean this is a project debt is transit oriented.
And the biggest amenity was the Alamo theater.
Our entrants our ability to access the transit is has been zero and obviously COVID-19 has made transit massive and amenity.
Yes.
And we have and will open up Alamo in December so the fact that we had incredible leasing activity.
With.
Without both of those having.
Having any traction whatsoever was very encouraging and so we're we're optimistic about.
The rest of that project.
Great. Thank you for the additional call. It that's the other question there.
And as a reminder to our audience. If you would like to ask a question. Please signal by pressing star 1 now.
Our next question comes from Curtis Jensen for body and company.
Yeah.
Hey, good morning, good morning, Fellas, how are you.
Great how are you.
Curtis morning Curtis.
I'm doing fine.
Just to clarify on the mayor and there was no retail contribution this quarter right.
Correct.
Can you share what you know anything about what you think that will do in terms of NOI.
You know on a run rate basis or something.
For rail we have a lease.
We have a lease.
Yeah.
Both leases are complete I would say that the.
<unk>, which is the taking of the large space on the water I believe is about 55.
100 square feet.
Curtis and I think there are going to generate about $220000 plus for bonus.
A year once they get open up.
And then the other 1 is a smaller area of about a 15.
1500 square feet.
And that's a license agreement with 1 of our outside pop up.
Vendors that are going to pay us a percentage of revenues so.
You know, it's kind of hard to say, but that's that's kind of where we are right now on these spaces really won't be up and running but there'll be some you know some for some free rent.
That comes about in 'twenty to 'twenty, 2 but I think once they get up and running a $2.50, plus is going to be where you are.
Yes.
Okay.
And it looks like the Marin did.
I guess for the quarter starting April 1 on 1 million 3.8 on an NOI basis is that.
And at a 90% on occupancy or something like that.
Okay.
Is that.
Bottom line.
It might take him at all yes, the press release.
That's about right Yeah, I got to remember we were still ramping up but yeah. That's that's.
We'd like to think I'm going to do a little bit better.
And then 3 in for.
Are you guys being held up at all maybe it might be more relevant for like the chase.
In terms of.
Materials appliances, getting appliances delivered and things like that or is any of that eased up.
Yeah.
Yes.
We've had our issues the the chase, obviously and code on more than the Marin.
But we lost a couple of months not a lot, but we've lost a couple of months, we had excellent contractor and we.
We did a lot of that but you know early on and we wouldn't say materials. We're committed to you know before COVID-19 hit, but we lost a couple of months for sure but the.
1 other things is that the chase.
Is opening up we wanted to get it you know, 100% buttoned up before we opened it up which we did towards the end of last week.
So but.
But they're going to open up their opening up with all 333 apartments ready to go.
Okay.
Yeah.
And just remind us again, what is the bridge supposed to be is that when is that going to be finished or completed is that the end of this year the Frederick Douglass bridge.
Yes, it's scheduled to be the fourth quarter of this year and then the and then the oval in the existing bridge coming down all of that is scheduled to happen.
The first and second quarter of next year and they're on they're on schedule. So I would say this on time like for this time next year it'll be done.
Alright, and I guess, David you had mentioned that I think pazuto users.
Yield star software to kind of.
You know rent revenue optimization or whatever and then.
I guess I was pretty astounded by how quickly the coda ramped.
And I know it's.
Tradeoff between heads in beds as you call it vs.
Maybe Maxim I mean.
Is there any hume human kind of human judgment, you know around the yield star thing or.
They just haven't yet.
But do it every day.
Yes.
We literally have leasing calls every week.
So the batch line.
The software but.
We we've leaned pretty heavily on the actual on site.
Our leasing folks and both MRP and ourselves.
Are there as well on and so theres a lot of collaboration that goes into these 2 the 2 the pricing of these units.
And how to asking rents compare at Dakota say.
Square foot to us.
So want to chase or to what what felt like Paris. What are you looking for like you know on a per square foot or you said, the mehrens at $4 or something and I think John John.
Docks at $3.50, or mehrens it for something like that.
I wanted to say Curtis maybe John on the third or John take it up but I would just just under 3 Bucks a square foot yeah.
That's right David you know there, it's obviously lower its debt a different building type in a.
Not on the water that sort of thing.
Okay.
Great. That's all I had thanks a lot.
Thank you thanks Curtis.
And at this time Im showing no further questions.
Okay, well, thank you all for joining us today.
Despite the pandemic, we are seeing tremendous progress in the lease up of on new projects in both residential and industrial spaces.
Our lending ventures had benefited from the strong single family lot demand and our royalties hit an all time high this quarter, our liquidity remains strong with cash and investments exceeding a $170 million. Despite a very healthy development menu.
We appreciate your interest in FRP and look forward to talking to you again next quarter have a great day.
Ladies and gentlemen. This concludes today's call. Thank you for your participation you may now disconnect your phone line.
Okay.
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