FRPH - FRP Holdings Inc

[thepupil]

Honestly, I'm torn, but yea I think repurchase potentially exacerbates one of the reasons it's undervalued (liquidity). At the same time, I don't think it's right for FRPH to try to become something it isn't (a $5B MF REIT or some thing) and have ZERO worries about them doing that. Repurchase is the best use of their cash once some of the less mature developments get de-risked. But I'm just not sure if they even can buy back that much given the trading volume. 

Open to changing my mind. From the very beginning of this thread, I've continually been wrong. 

First post said  I gave it a brief look and passed on mgt/assets. Then I warmed up and made like 90%. then lost money as I thought facts had changed post covid. they did change but actually improved for some assets. I'll be wrong again when they announce $100mm tender and I like it. 

I guess you could say my hands are not made of gravel. 

 

[BG2008]

Pupil, 

Coda is 57% leased.  Looks like you may be too pessimistic about Bryant Street.

[thepupil]

my investment process on FRPH and BERY and INDT consists of your superior fundamental work convincing me that these discounts are not warranted. keep it up. 

[BG2008]

Thank you for the kind word.  Let's see how the rest of the 3 buildings lease up this summer.  Coda is lower price point and more affordable.  The location is great though.  There is a bike/hiking trail and literally a 3-5 min walk up a foot bridge to get to the station.  Interesting to hear on the call that other competition actually helps as there is proof of concept of a neighborhood rather than being the lone frontiers man in an up and coming neighborhood.  

[Williams406]

Phase 3 of Riverfront looks like commercial, with phase 4 slated for hotel/residential, both phases with ground-floor retail. Given that Maren and Dock 79 are not in opportunity zones requiring a 10-year hold and the company's stated strategy of not holding stabilized real estate long term, anyone see a sale of Maren and Dock 79 in the near future? Maybe wait for rent escalation if rent freezes in DC are lifted?

 

[D33pV4lue]

4 hours ago, Williams406 said:

Phase 3 of Riverfront looks like commercial, with phase 4 slated for hotel/residential, both phases with ground-floor retail. Given that Maren and Dock 79 are not in opportunity zones requiring a 10-year hold and the company's stated strategy of not holding stabilized real estate long term, anyone see a sale of Maren and Dock 79 in the near future? Maybe wait for rent escalation if rent freezes in DC are lifted?

 

Did I miss something on the call, what's your source for phase 3/4?

I don't see a sale near term, especially with closing on new financing of 12 years interest only. 

[Williams406]

1 hour ago, D33pV4lue said:

Did I miss something on the call, what's your source for phase 3/4?

I don't see a sale near term, especially with closing on new financing of 12 years interest only. 

No, nothing on the call yesterday. Page 12 of 2020 AR, bottom of first column.

[Gregmal]

Gonna need a snorkel soon.

[BG2008]

3 hours ago, Gregmal said:

Gonna need a snorkel soon.

Greg with the call again.  How big of a position? 

[Gregmal]

Low teens. Was hoping to get at least double that size but wasn't meant to be. Way I see/saw it was from $50 you have maybe 10% downside, or perhaps 20% in an armageddon situation. So at 25% or so allocation thats what? A measly mid single digit drawdown? But the kicker is, much like BRK at 230s, with a 10-20% drawdown you can buy the dip, guns blazing, knowing management has your back and is doing so as well, which just creates more value and upside down the line. My kind of setup.