Investor Day 2021

Sep 15, 2021

Slides

Also, We can't hear you. Can you hear us now? Much better. Thank you. Thank you for letting us know. I appreciate you joining us today. I think we've got an Good day for you. Hopefully, you will enjoy the presentation and learn a little bit about and if you've got the time and the information, maybe watch a little baseball this afternoon. Before we begin, let me remind you that some of our statements today may contain forward looking statements Within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. Such statements reflect management's current views with respect to financial results related future events and are based on assumptions and expectations that may not be realized and are inherently subject to risks and uncertainties. Future events and actual results, financial or otherwise, may differ perhaps materially from such forward looking savings. I apologize for that. That's a safe harbor thing we have to say being a public company. But The good news is it enables us to talk to you and answer your questions and really get into the future without worrying about 2018. Because of COVID and the uncertainty that it brought To all of us personally, but to the economy, we have intentionally kept our cash equivalents very high. We've completed Phase 2 of our Anacostia project As we sit here today and we reach stabilization far quicker than any of us ever dreamed. I think David will say it, but I think we underwrote this project assuming we would Thank you, Stacy and people that can help make that happen. We've embarked on a new mixed use project called Bryant Street, which is adjacent to the Washington Metro, north of Union Station. And another project right down the river at 1800 Half Street, which we call the Burroughs. Additionally, we invested in 2 mixed use projects South Carolina, one of which has begun leasing and is off to a great start. All four of these projects, not fair, but Half Street, Bryant Street and 2 Greenville sites, We're Opportunity Zones. And you all may remember that was a creation of the from tax law, but it sheltered substantially all of our gains from the sale of the warehouse and we'll have great shelter aspects Going forward, these those things are successful. But by definition, They are in the areas that we develop. They're not tender wound. And another reason to watch and be careful as we develop and see how these projects go. The first building is completed at Bryant Street. It's called Dakota. We were really surprised. I was stunned at how fast that boost which is a really good sign because it was in the middle of a construction zone. It was on the edge of development. And yet, once again, right at that 30 units a month Lisa. So pretty exciting and really good sign of what's going on. So that gives us optimism about the other 3 projects as well. And so we are kind of recalibrated and assuming they do all turn out as well as we think. And the COVID situation is positive and the economy is stolen like we all hope it will. We're going to be aggressive in adding income producing projects and holding them to provide an accelerating and substantial growth rate for our net operating income in NAV here in FRP. We will also continue to develop industrial buildings in our home market As we've seen incredible appetite for new warehouses and strong rental rates for such projects. We had made the decision when we sold our warehouse portfolio that we would continue to build warehouses We would probably sell them once we got to stabilization. I think we're making a pivot on that. The rents are higher than we expected. Demand is great. And it fits right into a strategy of growing NOI and NOV. And if the corporate taxes go up or While we've been building a sale. Our 15,000 acres of aggregate royalty Properties continue to perform exceptionally well. Every year seems to be a new record. Everything I thought I knew about the aggregates business has been turned on its ear when you go through Keep the recession, pandemic and have record sales and profits. That's not the way they wrote the book. But we're happy that that's what's happening. And the new Infrastructure bill that have assuming the passes and we all know That's not for sure. But assuming it passes, that's going to add substantial tailwinds to that business. We benefit by royalties as revenues go up. So as volumes go up, as prices go up, That drops straight to our bottom line. There is no cost of sales whatsoever, especially on an incremental basis. So We're excited about the opportunity with that infrastructure. So our goal going forward would be to utilize a strong balance sheet to grow the company. We see excellent opportunities with our existing partners. And while we have always prided ourselves as being conservative capital allocators continue to read while deemed thoughtful We're going to be more aggressive with our cash than we've been for the last year or 2 where we were Literally to make sure that COVID didn't cut us down. The strong cash position that we've got, some $170,000,000 combined with the great cash flow nearly $10,000,000 a year from the aggregate properties, as well as the projects that are coming on and bringing them a lot, giving us great cause for optimism. So let me turn it over now to John Baker III to start Good morning. I'm John Baker, III, CFO of FRP Holdings Thank you, and thank you to everyone here today and following along. I'm going to briefly go through some financial highlights. So it would be news to anyone who It's been following the company, but kind of the tail of the tape of the next few financial slides is the addition of the Merrick. I had the pleasure of leading our Q1 earnings call when we announced the validation This wonderful roof over our heads. And at the time, I mentioned that bringing the merit on balance sheet and our income statement will see an increase in revenue, obviously, increase of cash flow and NOI, but probably a negative impact on earnings and operating profit just because of the increases in depreciation and amortization in projects like this one, particularly in the 1st year. So You'd see immediately in this first slide that revenues went up, operating profit went down, NOI is up and a big number that kind of jumps off the screen is the net income from That is really just a result of the write up to fair value of The mayor that we experienced when we brought it on to the balance sheet. Same is true for our trailing 12 month highlights. Again, revenues are up, operating profit is Revenues, NOI, big jump because of the Marin Numbers that really jumped out here are the increase in earnings per share and the decrease in Share repurchases, the earnings per share again is because of the write up to fair value. Share repurchases are down for a good reason. We were aggressive about buying shares when we thought we could Get the stock out of steel and unfortunately, it's not going to sell our apologies. One note about this slide, net cash provided By operations, that's down and it's kind of Unsustainably so, primarily just because of the timing of some of our opportunities on investments led to some tax refunds and deferred taxes. So that's the reason for This slide gives a quick summary of This is, I guess, actually how the agreement that we came to with the Demile B. We came to fair market value, Agreed upon value of $151,000,000 And based on our agreement with MRP, our partner, This increased valuation of the building resulted in a change of ownership interest. Ours went down, theirs went up and A net increase in FRP equity of $37,000,000 The Marin once again is The handwriting is all over our balance sheet. You can see it in the very top line, dollars 140,000,000 increase in net investment in properties. And again, it's all over the balance sheet on the liability side. We did The long term financing for Marin and the debt went up. I don't think These are business segments, Hawaiian royalties, Stabilized Joint Ventures, Asset Management and Development, I'm going to briefly touch on some of our mining and royalty highlights because it's The least complicated business we have and the only one that I'm capable of discussing with any degree of intelligence. We have 13 properties totaling 15,000 acres. This business is The heritage of company, Porter Rock Industries, which we were originally spun out of the 1986. Most of our royalty properties are the result of the spin off and subsequent sale leaseback agreements we had with Photorock Industries, which is now Bulk in materials. So we have 13 properties, primarily in Florida and Georgia. We have one in Virginia. And we have about 500,000,000 tons of sand limestone and hard rock reserves. Past 12 months have been very, very good to this segment. We had our highest revenue in total in fiscal year and calendar year 2020 and We followed that up with the best first quarter we've ever had, the best second quarter we've ever had, which And then it was the best first 6 months we've ever had and as a result, it was the best trailing 12 months we had ever had. It's the first time that I think we've ever had higher than $9,500,000 in trailing 12 months revenue and then we followed that up. It's the first time we've ever had $9,750,000 So it's been the 2nd set of really, really amazing. We were also able to increase the minimum rents on some of our royalty agreements as a result of a lease extension. And then Looking ahead, fingers crossed, the infrastructure bill would obviously positively impact this segment. Not as much in regards to tons, but it would definitely Huge impact on prices. So again, fingers crossed. Briefly touched on these numbers here, but they just kind of serve to illustrate What a run with this business segment has been on, first time as I mentioned with any trailing 12 months that we Surpassed $9,750,000 Crossing the $9,000,000 revenue threshold a few years This slide is just a breakdown of our properties and it really better consumed kind of On your time, just for anyone unfamiliar with our relative properties, it gives a breakdown of the location, I think this is a really powerful slide. It takes us all the way back to 2,006, which Particularly in Florida was the peak of aggregate volumes. And if you look at the total tons, we haven't gotten anywhere close to where we were in 2006, even now Since we're really bringing it forward to 80% of haven't even back 80% of the total tons since 2,006 and yet 60%, 70% higher royalty and you can see that in the average royalty per tonne. It just shows you that the pricing power of I would say the street has been really pushed price over time, particularly as different floor sites go out of business. Being able to grow prices by 100% over I think this is a really impactful slide. It shows you the revenue growth of Our royalty revenue stream versus Vulcan Materials and Martin Marietta, 2 of the very best in the business and push price as hard as anyone. And they've had 6% and nearly 7% year over year revenue growth, but we've had 8% and It has nothing to do with anything we've done. We're not setting prices, but it just shows you that our Forage sites are in some of the best pricing markets that both Vulcan and Martin and all of our other tenants have. Very proud of our locations and the quality of our aggregates assets. This is an interesting slide. I think for people who are unfamiliar with the aggregates business, It's it might be hard for them to value our royalty streams. It's not And so how would you value it? I think a good starting point would just be to look at our trailing 12 months at operating income Martin Marietta and Vulcan's trailing 12 months average EBITDA multiples. And I think that It would be a good starting point to give you a sort of range of how to value And just in closing, touching a little more on the East Infrastructure Bill. Again, fingers crossed. But The proposed plan is about $550,000,000,000 in hard infrastructure. It's a huge The part that most concerns our business is the hard infrastructure, roads, highways, bridges, need to make big rocks into the lots. And It's going to add a 20% increase to planned spending on part infrastructure between 2022 and 2026. As seen and as we've talked about throughout this presentation, This business segment is already pretty hot and so to add a 20% increase to Demand in this industry is going to Really stretched supply when supply is already very stretched. And Why I mentioned earlier, it's going to be you might not see the initial surge in tons just because a lot of And sand plants are already at capacity or close to it. Where you're really going to see the impact is in price. And kind of beauty of planned infracharger spending over the course of 5 years is the rollout of that plant spending will allow operators to invest ahead of time to increase capacity. So you'll see We see price go up initially and then as operators invest in property, plant, equipment along as well, but It's only a 5 year planned spending. They're not going to push all their chips in. 5 years ago at the bottom dropout afterwards. So it's going to be a huge investment across the plant equipment, which is why I think you'll see a bigger increase But anyway, that's all I have. I'm going to turn it over to David de Villiers, Jr, our President and CRL. So thank you, John, both John's and again, welcome everyone. What I thought I would do today is basically highlight to you all the other three legs of FRP's development platform. This is from John about the mining royalties segment that's a hard act to follow, but we'll see what We can do it. So this is our stabilized joint ventures business segment that consists of 3 properties. Obviously, the first one being Dock 79, which was our first joint venture with MRP. I think we started well, I started trying to title this property back in 1993, but we won't get into that. We really got into about 20 I think John Baker is still in high school. So that's the Dock 79. Obviously, the merit, the flagship, that's a tough act to follow, but we think We've got enough ideas and programs and people and projects that we think we could do that again and continue. There we go, so much for that. Next slide please. This is Hickory Creek. Hickory Creek It was a tenthirty one deal that we did and we joint venture with the group called Capital Square tenthirty 1. It's a PST, which allows for us to defer through the 1031 program and we invested about $6,000,000 into that Anyway, Hickory Creek is in Rico County, South Richmond, it's a Class B complex, 294 apartments. The idea was these guys bought the buildings complex. Someone had already done the heavy lifting, done all of the real heavy renovations, but the properties were built back in the European. Then they sold it, we are collecting and we're doing things like changing out the vanities, the countertops, that sort of stuff. So it's a real value add program, hold it for 3, 5, 7 years, you know, it's been that, but it is a qualified case for 10/31. So some quick comparative metrics here for Dock 79. The average occupancy for the year over year was 95%, which is incredible, over 92 Retail, we picked up our final lease down on the street there next to the water. It's Edge, I think the lease was executed last week, so we're moving forward there. Success rate for renewals was 60.76% versus 58 0.3. The problem here is, although the NOI was down about 7%, expenses continue to go up. The government says you can't You can't increase the prices. So you can't pick anybody out that's not paying. So that's kind of where we are now. So we feel that As government lists the program and COVID-nineteen goes away, we'll think we'll be able to do that. This is Maren. You've heard about it from John. I mean, look at the difference. The average occupancy for the 6 months is 91% versus 13.1% the same period last year. And so we've that bought A little over $1,000,000 of NOI in the FRP's pockets, which obviously Hickory Creek, again, we invest that, it's a return of our investment and we're getting about a 5.6%, 5.7 And our Asset Management and Development division, this is some properties up in the picture we'll see you are through some of our warehouses up in Baltimore. Highlights in the asset management, we only have 3 assets in there right now, but we sold all of the warehouses as you know in The good thing is that 34 Lupton is our 32,000 square foot multi tenanted office We house our offices, so that's 95.1% of Granbury Business Park, which we purchased as a value add program Less than $30 a foot. I think we're running a warehouse program for less than $30 a foot. We put a bunch of money into it and right now it's 96.5% leased. And 0.5% leased. The last piece is 21st Street in Jacksonville. That was the old Florida Rock Industries office It's not fair to sell the program a little bit. Still in the state then, Vulcan took over. Subsequent to that, I believe their lease goes through 2026. Moving on now to our properties under development and our ongoing Joint Ventures. This is Bryant Street. You are going to see that later on today. As John mentioned, this is a massive project for us at MRP. It's on the 2nd stop north of the station. It's a 4 building complex, if you will. Totals 487 apartments and 89,284 square feet of retail. So COTA, as John mentioned, COTA in mid late December of 2020, it was visible weather, The concrete trucks were by the front door. The first occupant took place on January 1, I think we all celebrated So now as of September 1, The property is 95% leased and 93% occupied, which is pretty amazing. Now granted, we gave some There are some discounts. The discount probably to what our estimate is probably close to about 16%, 17%, I think, John. Yeah. We felt we'd rather see heads on debts than just looking for the revenue, which is why we're 93% occupied as opposed to funds of it 68%. Chase, which is the 2 buildings you'll see, the total of 333 apartments. First occupant, we've opened it up, did not do any pre leasing. We opened it up in the 15th August. It's 12% leased, which is basically 40 units. And we'll see that property a bit. Good thing about that is It continues to be robust. We had 25 units placed over the last 30 days, which again, it's a little bit more Strong leasing velocity, which is really pretty incredible, I think. We have a total of 89,285 square feet of retail space at Bryan Street Phase 1. The Alamo Drafthouse, which is one of the buildings, About 45,540. The small shop, which is 23,000 square feet, total small shop would be like a small single shop with 2,500 1,000 feet. 22,000 feet of that, 13,500 square feet is leased, leased to sign. Our food hall concept, we're all still trying to figure out how that's going to work, but we're excited about the location. You all see that today when we go. It's 9,400, almost 9,500 square feet, we're about 1 third mix there. And then we have an outside pop up space, It's a core area that's going to house a building at some point in time in the future that we have, again, we're still today with We've got a group called the Metro Bar, which does outside entertainment activities, food, beverage and it's been very, very well Proceed. So here we are at still on the pandemic and still trying to figure out who's on first With COVID, we got to 77%, please. Great story. We haven't gotten any money yet, but Got to start get them links and get them signed. So Bryan Street, as I said, this is the, this area is Phase 1. There's 2 more phases left at Bryan Street. You can see that, we'll see that today. And The future there is somewhere in the neighborhood of about 800,000 square feet or said another way, about 800 plus or minus apartments, Maybe about plus or minus 160,000 square feet of retail, of which one of them would be a grocery store. So that's the 2nd and third phases that we're also going to take a look at. Next slide. So this is the one of 2 Projects we have in Greenville, South Carolina. So it's Woods our partner is Woodsfield Development. They are headquartered in Richmond, Virginia. We like Greenville, we think Greenville, South Carolina is a strong market. The demographics are really quite crazy. So this is the first one that we did. It's 200 units. We opened up for again, opened up for leasing 71521 with 17% leased, 13% occupied. We've leased over 30 units in the last 30 days with no concessions. So that's a pretty strong. The other one that we have down in South Carolina also with It's 0.408 Jackson. It's not that far quite that far along, about 55% increase. And leasing will look to begin You see down the lower part of the picture there that this thing works, but it's that's floor field, which is The baseball field for the Boston Red Sox farm team put it right across the street. So when this building is finished, that road that you see there will not be eroded, it will be accommodated with the stores and This back to DC and back to our friends from MRP, you'll see it when you look out the front. And by the way, Yes, John Fager, who is going to give us a little bit of a history of riverfront and site plans after This is half straight diverse, it sits out there. Right now, it's about 27% complete. This is an older picture because we're now topped out and the skin is starting to go around it. Things are going really well down as the contractors 344 apartments. And again, leasing will start this time next week. This is what it's this is what we think it's going to look like. It was some obvious lettering. Every time We look at these buildings and we try to figure out what it looks like, they'd say, well, we put up a mock up and they'd say, well, what do you think? And my question is, what are the colors? Okay. So let me take a minute here to summarize our mixed use platform. This is something that FRP was always done as a warehouse development company and a mining program. That's a long way from either one of those. So what this slide tells you, which is a lot, that we have a total of 1827 apartment units Complete or underdeveloped. Literally 127,000 square feet of retail. Only 2 of these buildings are takeoffs. So what does that mean? So if we look at the Q2 of 2020, we had 305 completed, so 17% of the total. And FRP's net operating income was 1.1.25. So now fast forward to Q2 2021. Now have 31% of those and the NOI jumped $2,200,000 Q2 of 2022, you go to 69% of those units. 2223, all 1827 units we protect to be 100%. What does that mean? I'm not going to do the math for you, but if you take the $2,200,000 and you divide it by $5.69, it's somewhere between $12,000 $15,000 The other interesting thing about this is that all that you see there, the capital is already met. So of the projects that are still under development, that's excluding that and that, The total project commitment of debt and equity is $468,000,000 MRP's equity On average that would be 53 percent 55.3 percent of the total, which is 2 $113,100,000 or $271,000,000 to hold. And through So the interesting thing is all these things are coming to do, We've kind of already got the funds committed. This is another one of our joint ventures. This is in Baltimore County, Maryland with a group called St. John Properties. They were one of the largest warehouse Developers in and around Maryland, they have a little bit over 19,000,000 square feet. We're doing a lot faster with them. This is 1st floor office and single story, freestanding retail. Not doing too well for it, But we think it's an incredible location, great demographics, drive by accounts are huge. So the office of the 100,000 square feet of Phase 1, roughly 72,000 Peaks office at 61.5% leased and occupied and So now let's move on to FRP's in house warehouse development platform. Some of you may remember, we sold our entire portfolio These two buildings here in the middle, total 145,000 These two shells, the ones in the middle will be complete this quarter. And the buildings are 42%, Yes, 42,000 square feet. The building up there on the right is the 94,000 square foot building that we built based on the solar This is the last building lot at Polymer Business Park and we have a built to suit that literally started, I guess, last week, right there? This is the last, you'll see the other buildings up in the right. This is a build to suit, real strong tenant, 101,000 Square feet, single tenant building, 10 year term, building to start a construction and north to occupy, not building a second So that was the last slide in Holla. So again, we've been in the warehouse development business for 30 years. So we bought out, we bought and purchased some property. This is the Frause property, is 55 Acres and Harvard Capital, that's Northeast submarket for the whole 675,000 square feet, happens to be right surrounding our Cranberry business. The good thing about this, Robert, it's going to take a while to We have a lot of trailer stores with some of the large tenants around Atlantis. So right now, this property is generated This is another piece called Chelsea Road property, probably within 2 or 3 miles of We bought this property in August, settled on August. 17 Acres, again, Harford County, Maryland. We'll start the entitlement process and what the permit that building. This is another property we have is under contract, Once you see the dilution stays, the capacity you can take it by year end. Things are going pretty well. This is 130 Acres in Cecil County, about 20 miles north The other 2, again part of that Northeast, 95 Northeast submarket. It houses somewhere in the neighborhood of 45,000,000 square feet, So what does that mean? So our warehouse platform summary, we have 268,000 square feet that's operated of which 58.3 percent of the sales. We have 930,000 square feet from the entitlement phase in the properties of the circuit And I think we'll see forward a settlement on the other one that's $900,000 square feet. That's $2,300,000 square feet total. So just for Texas, I said, well, okay, we sold a 94,000 square foot building very similar in July 2020, greater than $130 square foot. The date on the sale was $40 this quarter. I'm not saying that we're going to do it. I'm not saying when, but Just with the multiplication, it's not a case for us. So another leg of our development platform stores or lending ventures. Lending Ventures is a land development program that we have been in the land development business now since 19 not want to take our eye off the ball, we've got a warehouse program and a land development of people doing things other than that. So we got into a program, again, a joint venture with someone who used to be the President of Beazer Homes, got out of Beazer, went to island, knows that group. So we got into a program with hemp, it's a partnership When we advance funds through him, we get a 10% approved interest rate. And then beyond anything above 20% and the whole property has been paid out, then these shares are in separate profits. This is one of the ones we did. This is 25 acres, 126 lots of both accounting. This is a small program because we didn't take it through the full horizontal development. Guys think to us, we'll take it at record flat. We said we'll sell it, why not? So we generated a 3 point 5 investment generated a little over $1,000,000 in interest and share and profits. That was sold. Next one. Amber Ridge, another lending venture, it's 15 acres in PG County, 197 lots. This program, they're under contract of sale to 2 national homebuilders. We have a big deposit from them and we are going through, as you can see, the land development phase of this program. They take these lots down, previously agreed take down study. The first stock take down we got. This whole program, we got through this, All of the entitlements and getting the approvals and permits during COVID. It's a pretty amazing thing to be able to 1st lot kicked down in August, early August. Now we've taken down 28 lots This is their latest one. This is in Harper County, Maryland, again, the 1, the 1,000,000 tons of 110 acres in 2 lots, But as you can see up there, it's kind of a it's a very, very well developed area So with all of that, what else do we have? Well, we still have future development. We have Riverfront Phases 34, which are going to sit right over here. And that's about 500,000 square feet plus or minus 500,000. We have Square 664E, which is the Vulcan site over here that you'll see. Right now, that's approved for somewhere. We think we can get somewhere between Around 385,000 plus or minus 4. Bryan Street, as I said before, 2 and 3, it's a big project as well. Then we have Windlass, which is our joint venture with St. John for the office retail, we still have more than 220,000 feet that we can develop there. And then we have one more residential program, which is called Hampstead Residential, which is in Carroll County, Merrill, 255 years and 73 acres. Also future development, we always call them the 2nd life properties. John III was talking about that, we've got a huge program in Brooksville. There's so many acres out there on 5,000 acres that we have a concept plan approved, it's called a BRI. That's a joint venture right now with bulk of materials. We have Fort Myers site that's approved for 108 lots around the lake So we have a lot going on. We have certainly have a lot of future development and we're constantly looking. And so with that, I'll ask John the second to summarize. And then after John and after Q and A, I've asked John Beggar from Do a little bit of a presentation on RiverFront and some slides that before we take off. We're going to go It's a bunch of quarries. We've got 36 homes that go out laid out through there, all 36 Next question comes from Jason Firth of Thompson Partners. Over $100,000,000 of cash on the balance sheet and cash from operations by improving the significant dividend portfolio in the field. Is there a point where a cash return to shareholders is on the That's not what I think is going to happen. What I think is going to happen is Hello? I'm sorry, we can't hear you again. Thank you. Is this any better? Much better. Much better. Did you hear that answer, Kevin, at all. The last 20 seconds were really choppy. If it's could you Go over it one more time, please. Sure. The thumbnail of the statute is if things go like we think they will, There won't be a dividend until we get $50,000,000 or $60,000,000 of NAV at this time we would do it. If the economy doesn't allow it, COVID is raging and we're not comfortable Embarking on new projects, then we will give you a one time dividend to get The cash off our balance sheet and get back to the right of the limit. My hope is that Our plan would be to build it out and really grow this company. I think we just discussed that in the beginning. The typical royalty is a percent of revenue. So Whether you get more volume or more price, it's all positive for us. Other questions? Yes. I guess I have a question. This hard pivot that you guys are doing, where did This change in direction come from just on the narrative level. Did you guys basically years ago, 5 years ago, decided to what was the impetus or is there a new idea, new direction? Just historically, where did this all come from? And is it an individual's idea or is it the corporation just sees But multifamily is the most rational highest return bets right now. What made the pivot? Just curious. Fair question. Our plan all along was to develop the multifamily operations that we're looking at, especially here in D. C. We weren't sure whether we would hold or sell. We're pretty well decided to do the whole, especially as we go in We cannot do tax saving opportunities projects we almost got to hold for 10 years. So we're going to that evolved, I'd say, normally. What is the pivot is that we are building more warehouses and keeping them rather than building them and selling. I mean, the reason being is that the returns are so much better than we ever thought they would be. And So it's just a new change in the market sense. Awesome. Flexibility is a great thing. I guess, those are my questions. I just have one piece of feedback for you guys. I mean, this company you guys have is a gem. It's a diamond in the rough. You guys the feedback for this Investor Day, I'm pretty sure this is the first one you guys ever had. Just wanted to say that's fantastic because this is not being understood. So this is sort of Information about the company and outreach is, in my mind, fantastic. Appreciate you, Craig. Got a question from Curtis Stinson. Let me repeat the question. We were talking about the new industrial property In Aberdeen, one of the projects is 600,000 square feet, one is 900,000 square feet. Curtis wanted to know how would that build out or how long would it take to get that to stabilization? One of the things that we did just to back up just a bit, Probably remember, we were kind of heavy on undeveloped land for many years. That's probably not a great thing to do. So we might pipeline needs to be properly balanced. Build everything pretty quickly, then we're not selling it. We're like, now we're going to maintain this pipeline. And so we started to look again. So along comes the Krausz property. There's a lot of hair on the Krausz property. Part of the property was in Aberdeen, the other part of the property is part of the capital. So we're going through the process of annexing into Aberdeen, so that we're dealing with 1 set of development restrictions So that takes time. So we feel that all things being equal and correct me if I'm wrong, David, it's that we look, if things go well there, we'll start the entitlement process by the Q1 of 2022. You could look if things went well. That was the only one project that we had and we felt that the line is right. We Start that building probably in 2020, probably Q1. You don't want to be starting a building in Maryland. You're from the Northeast. You don't want to be messing around with cold weather and that kind of stuff. It's just not Let's see. That's when that one. So fall back to the Chelsea Road property, we purchased that one. Again, That one was 2 parcels, neither of which had a whole lot of value to it. David and a couple of distributors figured out how to put it together and convince sell the property, both properties to the same ultimately the same persons that gave us the opportunity to build A nice large warehouse of about $259,000,000 It's literally sandwiched between a lot of larger industrial buildings. That building Could start probably in 2022. So again, we don't like to have too many In particular submarket, we don't want to be building a lot of square footage in the same submarket we look to move around. So the Chelsea and the Kraus are both kind of the same submand. So I don't know if we would have those 2 under construction at the same The Mechanics Valley is about 20 some miles up the road. So it's a kind of a different sub market. They call it Philly submarket as opposed to So that's a different market. That what the plan there is we have a we're not even ready If we go through the purchase of that property, we're not able to buy or actually settle on that property. So certain entitlement are done. There's no water, no sugar. There's nothing within a mile. I don't know where the hell they found this thing, but you have to be a go to the farm right now. So it's going to take Sometimes, but that's the kind of thing that we've been doing for the year. So that's ideally that property would be purchased in late 22, maybe versus 22, then we would be going through some filings. We probably would look to get a building permit. I don't know that we would go forward with a building that large without some interest, I don't know, but we want to get it ready. So that when the beauty contest happens when you're looking for a large tenant, we can say we've got the property, we've got the permit, we've got the money. That gives you a pretty good Yes, sir, there are. But again, our what we normally what our plan is, We've created a 5 year business plan that says everything is going to be great, right? That kind of and then we take a look at how our balance sheet is going to be affected, Make sure that the liquidity is there, so some of us can sleep at night, ask the calls that we get, says I can't sleep, I've been doing that here, That kind of stuff. So we go through all of that. And so we set the parameters and then through John II and the Board, it kind of created the plans. We I don't have an idea what we're doing going forward. We have some projects in the queue. We're looking at new projects Literally, as we speak. So again, we're trying to stay out in front of our business as opposed to There are more questions on the from our Zoom participants. Just unmute yourself and jump right in. So the question is regarding Fort Myers, how much infrastructure is going to be required to get development in place and would that be something offloaded on your end goal? The answer is we don't remember. It will depend on the market. We're talking about 6 years out. I think the prudent thing we do is begin working on making sure we've got all the permits, Getting things lined up to where when that land is turned over to us that we can That'll weigh the risk with the reward and that's good for the period at that time. But I will tell you That is a really neat development someday. The water In those quarries is Bahama blue. You've got a mile or 2 miles view And each of the lots, the lots of the same are $1,000,000 lots A smaller and smaller way. So it's going to be a real opportunity. Well, thank you, guys. I really can't tell you how much it means To me, you all are here in person or on Zoom and have an interest. We will continue with these. We're talking this morning about whether it makes sense to do it within 2 years or every 1 year. We'll get feedback from you all as to What you think makes sense. But we've got a great rest of the day for those that are here and Thank everybody for calling. Let's move on outside and have John Beggart