Investments in Joint Ventures

3 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investments in Joint Ventures

(11) Investments in Joint Ventures.

The Company has investments in joint ventures, primarily with other real estate developers. Joint ventures where FRP is not the primary beneficiary are reflected in the line “Investment in joint ventures” on the balance sheet and “Equity in loss of joint ventures” on the income statement. The assets of these joint ventures are restricted to use by the joint ventures and their obligations can only be settled by their assets or additional contributions by the partners.

During the quarter we had two new investments in unconsolidated joint ventures:

Estero - In August of 2022, we invested $3.6 million for a minority interest in a joint venture with Woodfield Development to purchase 46 acres in Estero, FL. While the joint venture attempts to rezone the property, the Company will receive a preferred return of 8% with an option to roll its investment into equity in the vertical development or exit at that point.

Lending Ventures – In September of 2022, we paid off and extended for up to 3 years the secured note on the property in our BC FRP Realty, LLC joint venture advancing a total of $11.3 million of the maximum commitment of $16 million. This is included in our Lending Ventures investments in the tables that follow along with our residential real estate development investments at Aberdeen and Amber Ridge. The loan on the BC FRP Realty, LLC joint venture statement is reclassified to equity in the Lending Ventures table.

The following table summarizes the Company’s Investments in Unconsolidated Joint Ventures (in thousands):

								The
								Company's
								Share of Profit
	Common			Total	Total Assets of	Profit (Loss)		(Loss) of the
	Ownership			Investment	The Partnership	Of the Partnership		Partnership (1)
As of September 30, 2022
Brooksville Quarry, LLC	50.00	%	$	7,532	14,478	(66	)	(33	)
BC FRP Realty, LLC	50.00	%		5,450	22,088	(185	)	(91	)
Bryant Street Partnerships	61.36	%		57,163	201,572	(7,132	)	(4,743	)
Lending ventures				16,563	5,379	—		—
DST Hickory Creek	26.65	%		6,000	44,646	(420	)	281
Estero Partnership	16.00	%		3,600	38,500	—		—
1800 Half St. Owner, LLC	61.37	%		39,133	129,140	(487	)	(299	)
Greenville/Woodfield Partnerships	40.00	%		12,262	96,620	(908	)	(363	)
Total			$	147,703	552,423	(9,198	)	(5,248	)
								The
								Company's
								Share of Profit
	Common			Total	Total Assets of	Profit (Loss)		(Loss) of the
	Ownership			Investment	The Partnership	Of the Partnership		Partnership (1)
As of December 31, 2021
Brooksville Quarry, LLC	50.00	%	$	7,488	14,301	(82	)	(41	)
BC FRP Realty, LLC	50.00	%		5,530	22,470	(230	)	(115	)
Riverfront Holdings II, LLC (1)				—	—	(760	)	(628	)
Bryant Street Partnerships	61.36	%		59,558	204,082	(6,084	)	(4,954	)
Aberdeen Station Loan				514	514	—		—
DST Hickory Creek	26.65	%		6,000	46,048	(481	)	343
Amber Ridge Loan				11,466	11,466	—		—
1800 Half St. Owner, LLC	61.37	%		38,693	93,932	12		20
Greenville/Woodfield Partnerships	40.00	%		16,194	87,731	(948	)	(379	)
Total			$	145,443	480,544	(8,573	)	(5,754	)

(1): Riverfront Holdings II, LLC was consolidated on March 31, 2021. Bryant Street Partnerships included $747,000 in 2021 for the Company’s share of preferred interest and $354,000 in the first nine months of 2022 and $354,000 in the first nine months of 2021 for amortization of guarantee liability related to the Bryant Street loan.

The major classes of assets, liabilities and equity of the Company’s Investments in Joint Ventures as of September 30, 2022 are summarized in the following two tables (in thousands):

	As of September 30, 2022										Total
	Riverfront		Bryant Street		DST Hickory		1800 Half St.		Greenville/		Apartment/
	Holdings II, LLC		Partnership		Creek		Partnership		Woodfield		Mixed Use
Investments in real estate, net	$	0		194,062		42,740		128,437		95,420	$	460,659
Cash and cash equivalents		0		1,719		391		438		642		3,190
Unrealized rents & receivables		0		5,231		1,230		52		18		6,531
Deferred costs		0		560		285		213		540		1,598
Total Assets	$	0		201,572		44,646		129,140		96,620	$	471,978
Secured notes payable	$	0		128,980		29,371		60,153		63,600	$	282,104
Other liabilities		0		3,394		155		8,417		3,557		15,523
Capital - FRP		0		53,275		4,029		37,179		11,439		105,922
Capital – Third Parties		0		15,923		11,091		23,391		18,024		68,429
Total Liabilities and Capital	$	0		201,572		44,646		129,140		96,620	$	471,978

	As of September 30, 2022
	Brooksville		BC FRP		Lending			Estero		Apartment/		Grand
	Quarry, LLC		Realty, LLC		Ventures			Partnership		Mixed Use		Total
Investments in real estate, net	$	14,307		21,185		5,219			32,626		460,659	$	533,996
Cash and cash equivalents		169		208		0			5,874		3,190		9,441
Unrealized rents & receivables		0		433		0			0		6,531		6,964
Deferred costs		2		262		160			0		1,598		2,022
Total Assets	$	14,478		22,088		5,379			38,500		471,978	$	552,423
Secured notes payable	$	0		11,184		(11,184	)		16,000		282,104	$	298,104
Other liabilities		85		142		0			0		15,523		15,750
Capital - FRP		7,532		5,381		16,563			3,600		105,922		138,998
Capital - Third Parties		6,861		5,381		0			18,900		68,429		99,571
Total Liabilities and Capital	$	14,478		22,088		5,379			38,500		471,978	$	552,423

The Company’s capital recorded by the unconsolidated Joint Ventures is $8,705,000 less than the Investment in Joint Ventures reported in the Company’s consolidated balance sheet due primarily to capitalized interest.

The major classes of assets, liabilities and equity of the Company’s Investments in Joint Ventures as of December 31, 2021 are summarized in the following two tables (in thousands):

	As of December 31, 2021										Total
	Riverfront		Bryant Street		DST Hickory		1800 Half St.		Greenville/		Apartment/
	Holdings II, LLC		Partnership		Creek		Partnership		Woodfield		Mixed Use
Investments in real estate, net	$	0		199,730		43,840		93,504		87,421	$	424,495
Cash and cash equivalents		0		1,123		827		428		279		2,657
Unrealized rents & receivables		0		2,925		1,044		0		5		3,974
Deferred costs		0		304		337		0		26		667
Total Assets	$	0		204,082		46,048		93,932		87,731	$	431,793
Secured notes payable	$	0		119,201		29,337		18,404		44,309	$	211,251
Other liabilities		0		9,066		115		14,470		4,462		28,113
Capital - FRP		0		57,555		4,423		37,478		15,584		115,040
Capital – Third Parties		0		18,260		12,173		23,580		23,376		77,389
Total Liabilities and Capital	$	0		204,082		46,048		93,932		87,731	$	431,793

	As of December 31, 2021
	Brooksville		BC FRP		Aberdeen		Amber Ridge		Apartment/		Grand
	Quarry, LLC		Realty, LLC		Loan		Loan		Mixed Use		Total
Investments in real estate, net	$	14,281		21,561		514		11,466		424,495	$	472,317
Cash and cash equivalents		18		312		0		0		2,657		2,987
Unrealized rents & receivables		0		368		0		0		3,974		4,342
Deferred costs		2		229		0		0		667		898
Total Assets	$	14,301		22,470		514		11,466		431,793	$	480,544
Secured notes payable	$	0		11,384		0		0		211,251	$	222,635
Other liabilities		0		140		0		0		28,113		28,253
Capital - FRP		7,488		5,473		514		11,466		115,040		139,981
Capital - Third Parties		6,813		5,473		0		0		77,389		89,675
Total Liabilities and Capital	$	14,301		22,470		514		11,466		431,793	$	480,544

The amount of consolidated retained earnings (accumulated deficit) for these joint ventures was $(12,770,000) and $(8,942,000) as of September 30, 2022 and December 31, 2021, respectively.

The income statements of the Bryant Street Partnerships are as follows (in thousands):

	Bryant Street			Bryant Street			Bryant Street			Bryant Street
	Partnerships			Partnerships			Partnerships			Partnerships
	Total JV			Total JV			Company Share			Company Share
	Nine Months ended			Nine Months ended			Nine Months ended			Nine Months ended
	September 30,			September 30,			September 30,			September 30,
	2022			2021			2022			2021
Revenues:
Rental Revenue	$	6,718		$	1,153		$	4,123			$	707
Revenue – other		1,306			190			801				117
Total Revenues		8,024			1,343			4,924				824
Cost of operations:
Depreciation and amortization		4,995			1,482			3,065				909
Operating expenses		3,846			1,938			2,360				1,190
Property taxes		878			255			539				156
Total cost of operations		9,719			3,675			5,964				2,255
Total operating loss		(1,695	)		(2,332	)		(1,040	)			(1,431	)
Interest expense		(5,437	)		(1,234	)		(3,703	)			(1,803	)
Net loss before tax	$	(7,132	)	$	(3,566	)	$	(4,743	)		$	(3,234	)

The income statements of the Greenville Woodfield Riverside Partnership are as follows (in thousands):

	Woodfield			Woodfield
	Riverside Partnership			Riverside Partnership
	Total JV			Company Share
	Nine Months ended			Nine Months ended
	September 30,			September 30,
	2022			2022
Revenues:
Rental Revenue	$	2,234		$	894
Revenue – other		125			50
Total Revenues		2,359			944
Cost of operations:
Depreciation and amortization		1,162			465
Operating expenses		906			363
Property taxes		476			190
Total cost of operations		2,544			1,018
Total operating loss		(185	)		(74	)
Interest expense		(697	)		(279	)
Net loss before tax	$	(882	)	$	(353	)