JACKSONVILLE, Fla., April 17, 2025 (GLOBE NEWSWIRE) -- FRP Holdings, Inc. (NASDAQ: FRPH) announced today that the Company will hold an Investor Day on May 22, 2025, in Washington D.C. Investor Day presentations will begin at 10:00 A.M. EDT at Dock 79 and will be followed by a Q&A session. The event will feature presentations from its executive management team. A live webcast and presentation materials will be available to all interested parties at https://investors.frpdev.com/. For those unable to join the ...

FRP has updated Investor Relations website, now live at https://investors.frpdev.com/. The Company has also published a new corporate overview presentation, which can be accessed directly at https://investors.frpdev.com/presentations. FRP Holdings, Inc. is a holding company engaged in the real estate business, namely (i) leasing and management of commercial properties owned by the Company, (ii) leasing and management of mining royalty land owned by the Company, (iii) real property acquisition, entitlement, ...

Mining Royalty Lands - The Mining Royalty Lands Segment owns approximately 16,648 acres under lease for mining rents or royalties, with an additional 4,280 acres through a joint venture with Vulcan Materials[24]. - Vulcan Materials Company accounted for 23% of the Company's consolidated revenues in 2024, indicating significant reliance on this tenant[28]. - In fiscal year 2024, aggregate tons sold from the company's mining properties were approximately 9,351,000, compared to 9,569,000 in 2023 and 9,525,000 in 2022[72]. - The Brooksville joint venture with Vulcan Materials resulted in approximately 203,000 tons sold in fiscal year 2024, down from 239,000 in 2023 and 228,000 in 2022[74]. - The Mining Royalty Lands segment comprises approximately 16,648 acres under lease for mining rents, with 9.6 million tons sold in the year ended December 31, 2024[162][163]. - Total revenues in the Mining Royalty Lands Segment were $12,852,000, an increase of $325,000 or 2.6% compared to last year[191]. - Net operating income in the Mining Royalty Lands Segment was $14,396,000, up $2,676,000 or 22.8% compared to last year[191]. - The Mining Royalty Lands Segment's pro rata NOI included a one-time minimum royalty payment of $1,853,000[182]. Development Segment - The Development Segment aims to convert non-income producing properties into income-producing properties through construction or joint ventures[25]. - The company is in the process of modifying and extending the existing Planned Unit Development (PUD) for the Riverfront on the Anacostia to allow for residential development[76]. - The company has a total of 122.4 acres in the Development segment with a net book value of $26,583,000[170]. - The Brooksville Quarry project in Florida is planned for future residential development, with the company holding a 50% ownership stake[171]. - The company is pursuing the development of approximately 1,200 multifamily units in four phases at Buzzard Point, Washington, D.C., in partnership with MRP[78]. Financial Performance - Revenues for 2024 increased to $41,774,000, a 0.6% rise from $41,506,000 in 2023[130]. - Net income attributable to the Company rose by 20.4% to $6,385,000 in 2024, compared to $5,302,000 in 2023[130]. - Net Operating Income (NOI) grew from $17.6 million to $38.1 million over three years, with a 26.2% increase in 2024 compared to 2023[133]. - The Company plans to invest $71 million into new projects in 2025, maintaining a minimum cash reserve of $40 million[137]. - Total assets increased by 2.7% to $728,485,000 in 2024 from $709,166,000 in 2023[130]. - Shareholders' equity grew by 2.1% to $423,103,000 in 2024, up from $414,520,000 in 2023[130]. - The operating profit for 2024 was $11.704 million, slightly up from $11.700 million in 2023[151]. - The company achieved a net income of $6.460 million for the year, up from $4.882 million in 2023, marking a 32.3% increase[152]. - The company’s long-term debt remained stable at $178.853 million in 2024, compared to $178.705 million in 2023[151]. - The company reported a decrease in interest expense to $3,150,000 in 2024 from $4,315,000 in 2023, indicating improved financial management[216]. - Basic earnings per share increased to $0.34 in 2024 from $0.28 in 2023, reflecting improved profitability[216]. Real Estate and Market Conditions - The Company faces competition from numerous developers and operators in the real estate market, with key factors including price, location, and property management services[27]. - The Company’s revenues are influenced by construction sector activity, which is cyclical and affected by various economic factors[42]. - The geographic concentration of properties makes the Company vulnerable to severe weather conditions and climate change impacts[45]. - The Company may face challenges in renewing leases or re-leasing properties as leases expire, potentially affecting cash flow[47]. - The company competes with numerous developers and may be pressured to reduce rental rates if competitors offer lower rates[53]. - The Industrial and Commercial Segment is expected to see 53% of its platform vacant and up for renewal in 2025, impacting NOI[134]. - The company faces risks related to the illiquid nature of real estate investments, which may limit its ability to respond to economic changes[51]. Joint Ventures and Investments - The company is engaged in multiple joint ventures, including a $3.6 million investment for a 16% interest in a mixed-use project in Estero, FL, expected to commence vertical construction in 2025[149]. - The company has entered into two new joint ventures for warehouse development projects totaling 382,000 square feet in Florida, with construction anticipated to start in Q2 2025[78]. - The company’s investments in unconsolidated joint ventures totaled $153.9 million in assets as of December 31, 2024[173]. - The total assets of the company, including unconsolidated joint ventures, amounted to $517.0 million as of December 31, 2024[174]. - The company plans to commence construction on two industrial joint ventures in Florida in 2025[177]. Operational Efficiency and Management - The Company employed 19 people as of December 31, 2024, with an average employee tenure of 15.5 years, reflecting low turnover[32]. - The company has a multi-layer cybersecurity approach to manage risks, with no identified cybersecurity events materially affecting the business in 2024[63]. - General and administrative expenses increased by $1,305,000, primarily due to the implementation of an executive succession plan[182]. - The company has no obligation to remediate contamination until construction commitments are made, which may impact future development costs[44]. - The company has not paid cash dividends in the past and does not plan to do so in the future[86]. - The company has 155,518 outstanding options with a weighted average exercise price of $23.35, and 567,014 securities available for future issuance under equity compensation plans[107]. Cash Flow and Investments - Net cash provided by operating activities for the year ended December 31, 2024 was $28,986,000, down from $32,971,000 in the previous year[195]. - Net cash used in investing activities for the year ended December 31, 2024 was $50,621,000, compared to $48,747,000 in the same period last year[196]. - The Company expects to invest $62 million into existing real estate holdings and joint ventures during 2025[205]. - The Company refinanced multiple loans, including a $49,450,000 loan with a fixed rate of 5.59% from Fannie Mae, enhancing its capital structure[203]. - The Company had $148,620,000 in cash and cash equivalents as of December 31, 2024, with no debt borrowed under its $35 million revolver[194].

Financial Data and Key Metrics Changes - Net income for Q4 2024 decreased by 41.7% to $1.68 million or $0.09 per share compared to $2.88 million or $0.15 per share in the same period last year, primarily due to a one-time gain in the previous year [8] - For the full year, net income increased by 20.4% to $6.39 million or $0.34 per share from $5.3 million or $0.28 per share, driven mainly by improved results in the Multifamily segment [9] - Pro rata net operating income (NOI) for Q4 was up 21% to $9.1 million, and year-to-date was up 26% to $38.1 million, with a compound annual growth rate of 29.5% over the last three years [9][10] Business Line Data and Key Metrics Changes - The Commercial and Industrial segment reported total revenues of $1.3 million and NOI of $992,000, reflecting decreases of 11% and 15% respectively due to a tenant default [14] - The Mining and Royalty segment saw total revenues and NOI of $3.5 million, marking increases of 19% and 34% respectively [16] - The Multifamily segment reported total revenues of $14.1 million and NOI of $7.6 million, with significant contributions from new joint ventures [17][18] Market Data and Key Metrics Changes - The Multifamily projects in Washington D.C. and South Carolina had occupancy rates of 92.8% and 62.6% respectively, with management noting pressure from new deliveries in the D.C. market [19] - The company anticipates that market vacancies will peak in 2025, which could positively influence demand and rent growth [29][30] Company Strategy and Development Direction - The company plans to invest approximately $71 million in equity capital investments in 2025, focusing on both Industrial and Multifamily developments [35][36] - The goal is to double the Industrial and Commercial segment from 800,000 square feet to 1.6 million square feet over the next five years [36] - The company is also pursuing new Multifamily developments in Florida and South Carolina, which are expected to add 810 units and an estimated $6 million in NOI upon stabilization [37] Management's Comments on Operating Environment and Future Outlook - Management expects NOI in 2025 to remain flat or slightly below 2024 levels due to vacancies in the Industrial and Commercial segment [33] - The Mining and Royalty segment is performing strongly, but 2024 NOI was positively impacted by a one-time payment that is not repeatable [34] - Management is optimistic about re-tenanting spaces at market rates, particularly in the Cranberry area, despite anticipated short-term impacts on NOI [96][100] Other Important Information - The company is facing uncertainties regarding construction costs due to potential tariffs on materials like steel and lumber [31] - The company has a significant cash holding and is monitoring the market for potential acquisitions, particularly in the Southeast [51][53] Q&A Session Summary Question: Clarification on the $71 million equity capital investment - The investment includes both Industrial and Multifamily projects, with approximately $21 million allocated for Florida industrial projects and $35 million for Multifamily developments [42][45] Question: Potential acquisitions and market focus - The company is primarily focused on the Southeast due to easier entitlement processes compared to Maryland [51] Question: Impact of tariffs on construction - Tariffs could impact the Multifamily segment more than Industrial, but the company is moving forward with Florida projects before potential tariffs take effect [56][57] Question: Underwriting returns on new projects - The company targets a return on cost of 6.5% to 7% for new developments, with variations based on location and asset class [65][70] Question: Leasing velocity and tenant backfilling - The company expects to face challenges in backfilling spaces in Cranberry due to multiple tenant expirations, but is optimistic about achieving market rents [100][106] Question: Comments on cap rates and NAV - Management acknowledges the importance of cap rates for market perception but emphasizes a focus on growing NOI and cash flows rather than immediate sales [131]

FRP Holdings, Inc. (NASDAQ:FRPH) Q4 2024 Earnings Conference Call March 6, 2025 9:00 AM ET Company Participants Matthew McNulty - Chief Financial Officer David deVilliers III - Chief Operating Officer John Baker III - Chief Executive Officer Conference Call Participants Stephen Farrell - Oppenheimer + Close, LLC Bill Chen - Rhizome Partners LP Operator Good day, everyone, and welcome to today’s FRP Holdings Incorporated 2024 4Q Earnings Call. At this time, all participants are in a listen-only mode. Later, ...

FRP Holdings, Inc. Q4'24 Earnings Presentation MARCH 2025 Safe Harbor Disclosures Investors are cautioned that any statements in this press release which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These include, but are not limited to: the possibility that we may be unable to find appropriate investment opportunities; levels of construction activity in t ...

Financial Performance - Net income for Q4 2024 was $1,679,000 or $0.09 per share, down from $2,880,000 or $0.15 per share in Q4 2023, representing a 41.7% decrease[3][10] - Net income for 2024 was $6,385,000, or $0.34 per share, compared to $5,302,000, or $0.28 per share last year, reflecting a 20.4% increase[25] - The total income (loss) before income taxes for 2024 was $8,489,000, up from $6,398,000 in 2023, marking an increase of about 32.7%[39][40] Operating Income - Pro rata Net Operating Income (NOI) for Q4 2024 increased by 21% to $9,103,000 compared to $7,553,000 in Q4 2023, with a 26% increase for the full year 2024[4][10] - Pro rata net operating income (NOI) for 2024 was $38,139,000, up from $30,240,000 in the previous year, driven by a one-time minimum royalty payment of $1,853,000[25] - The Multifamily Segment's pro rata NOI increased by 34% to $18,177,000, primarily due to the lease-up of Bryant Street, 408 Jackson, and The Verge[27] Revenue Changes - Mining Royalty Land's revenue increased by 19% in Q4 2024, with segment NOI rising by 34%[9] - Total revenues in the Industrial and Commercial Segment were $1,268,000, down $154,000 or 11% from last year, primarily due to $222,000 of allowance for uncollectible revenue[18] - Consolidated total revenues for the year ended December 31, 2024, were $41,774,000, an increase of $268,000 or 0.6% from $41,506,000 in 2023[25] Expenses - General and administrative expenses increased by $572,000 primarily due to the implementation of an executive succession plan[11] - General and administrative expenses increased by $1,305,000 due to the implementation of an executive succession and transition plan[27] - The company reported a decrease in operating expenses in the Multifamily Segment, down to $6,047,000 from $6,285,000, a reduction of 3.8%[29] Investment and Future Plans - An estimated $71 million in equity capital investment is planned for 2025, focusing on industrial joint ventures and land purchases[6] - Two multifamily projects are expected to move forward in 2025, adding 810 units and $6 million in pro rata NOI upon stabilization[7] - The company plans to host a conference call on March 6, 2025, to discuss financial results and future outlook[41] Segment Performance - The Multifamily Segment's total pro rata NOI was $18,177,000, an increase from $13,543,000 last year[28] - The Mining Segment reported a net loss of $3,098,000 in 2024, an improvement from a loss of $8,043,000 in 2023, indicating a reduction in losses by approximately 61.6%[39][40] - The Multifamily Segment showed a net loss of $5,708,000 in 2024, compared to a loss of $848,000 in 2023, highlighting a significant increase in losses[39][40] Risks and Market Conditions - Investors are cautioned about risks related to construction activity, demand for properties, and market conditions that could impact future performance[42][43] - The company is engaged in various real estate activities, including leasing and management of commercial properties and development of residential buildings[44]

Core Viewpoint - FRP Holdings, Inc. reported a mixed financial performance for the fourth quarter of 2024, with a notable increase in pro rata Net Operating Income (NOI) across various segments, but a decline in net income compared to the previous year. The company anticipates challenges in sustaining growth in 2025 due to market conditions and operational factors. Financial Performance - Net income for Q4 2024 was $1,679,000 or $0.09 per share, down from $2,880,000 or $0.15 per share in Q4 2023 [2][6][24] - For the full year 2024, net income was $6,385,000 or $0.34 per share, compared to $5,302,000 or $0.28 per share in 2023, representing a 20% increase [24][23] NOI Growth - The company experienced a 21% improvement in pro rata NOI for Q4 2024, totaling $9,103,000 compared to $7,553,000 in Q4 2023 [3][7][6] - For the year ended December 31, 2024, pro rata NOI increased by 26% to $38.1 million from $30.2 million in 2023 [3][24] Segment Performance - Multifamily segment NOI increased by 34% ($4.6 million) due to the lease-up of new projects [3][23] - Mining Royalty Lands segment saw a 19% increase in revenue and a 34% increase in NOI [7][18] - Industrial and Commercial segment NOI improved by 17%, despite a 10.8% decline in lease revenue [16][33] Future Outlook - The company expects NOI growth to stall in 2025, projecting flat or slightly lower NOI compared to 2024 due to vacancies and increased competition in the market [3][4] - A planned $71 million equity capital investment in 2025 aims to support the construction of new industrial assets and enhance the existing pipeline [4][5] Operational Challenges - The company faces challenges in leasing up new projects in the Industrial segment, which may negatively impact NOI [3][4] - Increased general and administrative expenses were noted, primarily due to an executive succession plan [11][27] Development Projects - The company is set to begin construction on two industrial joint ventures in Florida and anticipates moving forward with multifamily projects in South Carolina and Florida, adding 810 units and $6 million in pro rata NOI upon stabilization [4][5]

Company Overview - FRP Holdings, Inc. is a holding company engaged in the real estate business, which includes leasing and management of commercial properties, mining royalty land, real property acquisition, entitlement, development, construction primarily for apartments, retail, warehouse, and office, as well as leasing and management of residential apartment buildings [2]. Upcoming Earnings Announcement - The company anticipates issuing its fourth quarter earnings results on March 5, 2025, and will host a conference call on March 6, 2025, at 9:00 a.m. (EST) [1]. - Interested parties can access the teleconference live by calling designated numbers for both domestic and international callers, with an audio replay available until March 20, 2025 [1]. Contact Information - The Chief Financial Officer of the company is Matthew C. McNulty, who can be reached at (904) 858-9100 for further inquiries [4].

Core Insights - FRP Holdings, Inc. is transitioning from the multifamily real estate segment to the industrial sector, which is perceived as more attractive while still benefiting from strong cash flows [1] Group 1: Company Overview - FRP Holdings, Inc. operates in diversified real estate development and asset management [1] Group 2: Strategic Shift - The company is attempting a pivot away from the unattractive multifamily segment to focus on the industrial world [1]