Investments in Joint Ventures

6 Months Ended

Jun. 30, 2024

Equity Method Investments and Joint Ventures [Abstract]

Investments in Joint Ventures

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.

The following table summarizes the Company’s investments in unconsolidated joint ventures (in thousands):

	Common Ownership		The Company's Total Investment		Total Assets of The Partnership	Profit (Loss) Of the Partnership	The Company's Share of Profit (Loss) of the Partnership
As of June 30, 2024
Brooksville Quarry, LLC	50.00	%	$	7,528	14,548	(44)	(22)
BC FRP Realty, LLC	50.00	%	5,783		22,708	(130)	(65)
Buzzard Point Sponsor, LLC	50.00	%	2,402		4,804	—	—
Bryant Street Partnerships	72.10	%	68,334		201,139	(4,594)	(3,382)
Lending ventures			26,273		15,647	—	—
BBX Partnerships	50.00	%	2,304		4,598	—	—
Estero Partnership	16.00	%	3,655		38,520	—	—
The Verge Partnership	61.37	%	38,568		128,752	(2,797)	(1,717)
Greenville Partnerships	40.00	%	6,544		100,330	(1,392)	(557)
Total			$	161,391	531,046	(8,957)	(5,743)

The Company completed negotiations with MRP concerning the ownership adjustment related to the Bryant Street stabilization and conversion of FRP preferred equity to common equity resulting in FRP ownership of 72.10% effective in 2024 compared to 61.36% prior ownership.

The major classes of assets, liabilities and equity of the Company’s Investments in Joint Ventures as of June 30, 2024 are summarized in the following two tables (in thousands):

	As of June 30, 2024
	Buzzard Point Sponsor, LLC		Bryant Street Partnership	Estero Partnership	Verge Partnership	Greenville Partnership	Total Multifamily JV’s
Investments in real estate, net	$	0	186,770	37,495	126,070	97,504	$	447,839
Cash and restricted cash	0		6,213	1,025	2,240	2,625	12,103
Unrealized rents & receivables	0		6,975	0	381	110	7,466
Deferred costs	4,804		1,181	0	61	91	6,137
Total Assets	$	4,804	201,139	38,520	128,752	100,330	$	473,545
Secured notes payable	$	0	110,553	16,000	68,116	81,687	$	276,356
Other liabilities	0		2,873	0	1,396	1,561	5,830
Capital – FRP	2,402		66,327	3,600	36,294	5,565	114,188
Capital – Third Parties	2,402		21,386	18,920	22,946	11,517	77,171
Total Liabilities and Capital	$	4,804	201,139	38,520	128,752	100,330	$	473,545

	As of June 30, 2024
	BBX Partnerships		Brooksville Quarry, LLC	BC FRP Realty, LLC	Lending Ventures	Multifamily JV’s	Grand Total
Investments in real estate, net	$	4,598	14,467	21,794	15,647	447,839	$	504,345
Cash and restricted cash	0		76	247	0	12,103	12,426
Unrealized rents & receivables	0		0	433	0	7,466	7,899
Deferred costs	0		5	234	0	6,137	6,376
Total Assets	$	4,598	14,548	22,708	15,647	473,545	$	531,046
Secured notes payable	$	0	0	10,921	(10,626)	276,356	$	276,651
Other liabilities	0		44	333	0	5,830	6,207
Capital – FRP	2,299		7,640	5,727	26,273	114,188	156,127
Capital – Third Parties	2,299		6,864	5,727	0	77,171	92,061
Total Liabilities and Capital	$	4,598	14,548	22,708	15,647	473,545	$	531,046

The Company’s capital recorded by the unconsolidated Joint Ventures is $5,264,000 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, 2023 are summarized in the following two tables (in thousands):

	As of December 31, 2023
	Buzzard Point Sponsor, LLC		Bryant Street Partnership	Estero Partnership	Verge Partnership	Greenville Partnership	Total Multifamily JV’s
Investments in real estate, net	$	0	187,616	35,576	128,154	95,911	$	447,257
Cash and restricted cash	0		7,543	3,076	1,323	2,000	13,942
Unrealized rents & receivables	0		6,737	0	403	127	7,267
Deferred costs	4,652		738	0	293	185	5,868
Total Assets	$	4,652	202,634	38,652	130,173	98,223	$	474,334
Secured notes payable	$	0	107,084	16,000	72,691	66,434	$	262,209
Other liabilities	0		3,129	0	1,344	3,867	8,340
Capital – FRP	2,326		69,779	3,600	34,391	10,450	120,546
Capital – Third Parties	2,326		22,642	19,052	21,747	17,472	83,239
Total Liabilities and Capital	$	4,652	202,634	38,652	130,173	98,223	$	474,334

	As of December 31, 2023
	Brooksville Quarry, LLC		BC FRP Realty, LLC	Lending Ventures	Multifamily JV’s	Grand Total
Investments in real estate, net	$	14,358	21,503	17,117	447,257	$	500,235
Cash and restricted cash	80		127	0	13,942	14,149
Unrealized rents & receivables	0		464	0	7,267	7,731
Deferred costs	1		360	0	5,868	6,229
Total Assets	$	14,439	22,454	17,117	474,334	$	528,344
Secured notes payable	$	0	12,086	(10,578)	262,209	$	263,717
Other liabilities	0		402	0	8,340	8,742
Capital – FRP	7,552		4,983	27,695	120,546	160,776
Capital - Third Parties	6,887		4,983	0	83,239	95,109
Total Liabilities and Capital	$	14,439	22,454	17,117	474,334	$	528,344

The amount of consolidated retained earnings (accumulated deficit) for these joint ventures was $(26,216,000) and $(21,823,000) as of June 30, 2024 and December 31, 2023, respectively.

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

	Bryant Street Partnerships Total JV		Bryant Street Partnerships Total JV		Bryant Street Partnerships Company Share		Bryant Street Partnerships Company Share
	Six Months ended		Six Months ended		Six Months ended		Six Months ended
	June 30,		June 30,		June 30,		June 30,
	2024		2023		2024		2023
Revenues:
Rental Revenue	$	6,634	$	6,197	$	4,784	$	3,802
Revenue – other	1,214		1,108		876		680
Total Revenues	7,848		7,305		5,660		4,482
Cost of operations:
Depreciation and amortization	3,375		3,350		2,434		2,056
Operating expenses	2,989		2,895		2,155		1,776
Property taxes	726		439		524		269
Total cost of operations	7,090		6,684		5,113		4,101
Total operating profit/(loss)	758		621		547		381
Interest expense	(5,352)		(5,917)		(3,929)		(3,729)
Net loss before tax	$	(4,594)	$	(5,296)	$	(3,382)	$	(3,348)

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

	Greenville Partnerships Total JV		Greenville Partnerships Total JV		Greenville Partnerships Company Share		Greenville Partnerships Company Share
	Six Months ended		Six Months ended		Six Months ended		Six Months ended
	June 30,		June 30,		June 30,		June 30,
	2024		2023		2024		2023
Revenues:
Rental Revenue	$	4,550	$	2,758	$	1,820	$	1,104
Revenue – other	244		201		98		80
Total Revenues	4,794		2,959		1,918		1,184
Cost of operations:
Depreciation and amortization	1,744		1,573		698		629
Operating expenses	1,242		1,120		497		449
Property taxes	882		561		353		224
Total cost of operations	3,868		3,254		1,548		1,302
Total operating profit/(loss)	926		(295)		370		(118)
Interest expense	(2,318)		(1,761)		(927)		(704)
Net loss before tax	$	(1,392)	$	(2,056)	$	(557)	$	(822)

The income statements of The Verge Partnership are as follows (in thousands):

	The Verge Partnership Total JV		The Verge Partnership Total JV		The Verge Partnership Company Share		The Verge Partnership Company Share
	Six Months ended		Six Months ended		Six Months ended		Six Months ended
	June 30,		June 30,		June 30,		June 30,
	2024		2023		2024		2023
Revenues:
Rental Revenue	$	3,514	$	870	$	2,157	$	534
Revenue – other	520		120		319		74
Total Revenues	4,034		990		2,476		608
Cost of operations:
Depreciation and amortization	2,094		2,210		1,285		1,356
Operating expenses	1,605		1,286		985		790
Property taxes	523		509		321		312
Total cost of operations	4,222		4,005		2,591		2,458
Total operating profit/(loss)	(188)		(3,015)		(115)		(1,850)
Interest expense	(2,609)		(2,368)		(1,602)		(1,453)
Net loss before tax	$	(2,797)	$	(5,383)	$	(1,717)	$	(3,303)