Investments in Joint Ventures

12 Months Ended

Dec. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Investments in Joint Ventures

2. Investments in Joint Ventures.

Brooksville. In 2006, the Company entered into a Joint Venture Agreement with Vulcan Materials Company to jointly own and develop approximately 4,300 acres of land near Brooksville, Florida. Under the terms of the joint venture, FRP contributed its fee interest in approximately 3,443 acres formerly leased to Vulcan under a long-term mining lease which had a net book value of $2,548,000. Vulcan is entitled to mine a portion of the property until 2032 and pay royalties to the Company. FRP also contributed $3,018,000 for one-half of the acquisition costs of a 288-acre contiguous parcel. Vulcan contributed 553 acres that it owned as well as its leasehold interest in the 3,443 acres that it leased from FRP and $3,018,000 for one-half of the acquisition costs of the 288-acre contiguous parcel. The joint venture is jointly controlled by Vulcan and FRP. Distributions will be made on a 50-50 basis except for royalties and depletion specifically allocated to the Company. Other income for the year ended December 31, 2017 includes a loss of $40,000 representing the Company’s portion of the loss of this joint venture.

BC FRP Realty (Windlass Run). During the quarter ending March 2016, we entered into an agreement with a Baltimore development company (St. John Properties, Inc.) to jointly develop the remaining lands of our Windlass Run Business Park. The 50/50 partnership initially calls for FRP to combine its 25 acres (valued at $7,500,000) with St. John Properties’ adjacent 10 acres fronting on a major state highway (valued at $3,239,536) which resulted in an initial cash distribution of $2,130,232 to FRP in May, 2016. Thereafter, the venture will jointly develop the combined properties into a multi-building business park to consist of approximately 329,000 square feet of single story office space. On September 28, 2017 BC FRP Realty, LLC obtained $17,250,000 of construction financing commitments for 4 buildings through September 15, 2022 and $330,000 for one lot through September 15, 2018 from BB&T at 2.5% over LIBOR. The balance outstanding on these loans at December 31, 2017 was $2,986,739.

Investments in Joint Ventures (in thousands):

								The
								Company's
					Total Assets	Net Loss		Share of Net
				Total	of the	of the		Loss of the
	Ownership			Investment	Partnership	Partnership		Partnership
As of December 31, 2017
RiverFront Holdings I, LLC (1)		—	$	—	—	(2,019	)	(1,558	)
Brooksville Quarry, LLC	50.00	%		7,516	14,411	(80	)	(40	)
BC FRP Realty, LLC	50.00	%		5,890	15,027	—		—
Total			$	13,406	29,438	(2,099	)	(1,598	)
As of December 31, 2016
RiverFront Holdings I, LLC	77.14	%	$	10,151	90,420	(1,446	)	(1,115	)
Brooksville Quarry, LLC	50.00	%		7,522	14,341	(8	)	(4	)
BC FRP Realty, LLC	50.00	%		5,228	10,784	—		—
Total			$	22,901	115,545	(1,454	)	(1,119	)
As of September 30, 2016
RiverFront Holdings I, LLC	77.14	%	$	11,261	85,106	(1,193	)	(938	)
Brooksville Quarry, LLC	50.00	%		7,496	14,350	(80	)	(40	)
BC FRP Realty, LLC	50.00	%		5,097	10,573	—		—
Total			$	23,854	110,029	(1,273	)	(978	)

(1) The Company consolidated this joint venture effective July 1, 2017 (see Footnote 3).

Balance Sheets at December 31, 2016 and September 30, 2016 (in thousands):

	As of December 31, 2016
	Riverfront		Brooksville		BC FRP
	Holdings I, LLC		Quarry, LLC		Realty, LLC		Total
Cash	$	1,023	$	18	$	21	$	1,062
Cash held in escrow		88		—		—		88
Investments in real estate, net		89,309		14,323		10,763		114,395
Total Assets	$	90,420	$	14,341	$	10,784	$	115,545
Other Liabilities	$	6,348	$	1	$	47	$	6,396
Long-term Debt		69,042		—		—		69,042
Capital – FRP		10,151		7,522		5,228		22,901
Capital - Third Parties		4,879		6,818		5,509		17,206
Total Liabilities and Capital	$	90,420	$	14,341	$	10,784	$	115,545

	As of September 30, 2016
	Riverfront		Brooksville		BCF FRP
	Holdings I, LLC		Quarry, LLC		Realty, LLC		Total
Cash	$	297	$	35	$	20	$	352
Cash held in escrow		13		—		—		13
Amortizable Debt Costs		1,179		—		—		1,179
Investments in real estate, net		83,617		14,315		10,553		108,485
Total Assets	$	85,106	$	14,350	$	10,573	$	110,029
Other Liabilities	$	5,140	$	65	$	17	$	5,222
Long-term Debt		63,495		—		—		63,495
Capital - FRP		11,261		7,496		5,097		23,854
Capital - Third Parties		5,210		6,789		5,459		17,458
Total Liabilities and Capital	$	85,106	$	14,350	$	10,573	$	110,029

Income statements for the RiverFront Holdings I, LLC, prior to consolidation July 1, 2017 (in thousands):

	Year ended			Three months ended			Year ended			Year ended
	December 31,			December 31,			September 30,			September 30,
	2017			2016			2016			2015
Revenues:
Rental Revenue	$	3,053			759			127			—
Revenue – Reimbursements		33			19			—			—
Total Revenues		3,086			778			127			—
Cost of operations:
Depreciation and amortization		1,958			819			258			—
Operating expenses		1,096			562			741			108
Property taxes		459			199			41			—
Total cost of operations		3,513			1,580			1,040			108
Total operating profit		(427	)		(802	)		(913	)		(108	)
Interest expense		(1,592	)		(644	)		(280	)		—
Net loss of the Partnership	$	(2,019	)		(1,446	)		(1,193	)		(108	)

The amount of consolidated retained earnings for these joint ventures was $(2,638,000), $(1,667,000), and $(990,000) as of December 31, 2017, December 31, 2016 and September 30, 2016 respectively.