Table of Contents [X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or [_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_________ to _________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ FORM 10-Q _____________________ (Mark One) Florida 47-2449198 (State or other jurisdiction of incorporation or or ...

FRP (FRPH) Q2 2025 Earnings Call August 07, 2025 09:00 AM ET Speaker0Good morning, and welcome to everyone on the call. I'm Matt McNulty, Chief Financial Officer of FRP Holdings Inc. And with me today are John Baker III, our CEO John Baker II, our Chairman David DeVillier III, our Chief Operating Officer David DeVillier Jr, our Vice Chairman John Milton, our Executive Vice President and John Kloppenstein, our Chief Accounting Officer. First, let me run you through a brief disclosure regarding forward lookin ...

FRP Holdings, Inc. Q2'25 Earnings Presentation AUGUST 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 ...

FRP Holdings, Inc. Reports Fiscal 2025 Second Quarter Results Jacksonville, Florida; August 6, 2025 -- FRP Holdings, Inc. (NASDAQ-FRPH), a full-service real estate investment and development company with four distinct business segments including Multifamily, Industrial and Commercial Development, Mining and Royalty Lands, today reported financial results for the quarter ended June 30, 2025. Second Quarter Highlights and Recent Developments 1 • 72% decrease in Net Income ($0.6 million vs $2.0 million) due la ...

Group 1 - David A. Johnson is the founder and principal of Endurance Capital Management, a New Jersey Limited Liability Company [1] - David has over 30 years of experience in investing and holds multiple degrees including a Master of Science in Finance and an MBA [1] Group 2 - The company engages in a diverse range of investments including stocks, bonds, options, ETFs, REITs, real estate, closed-end funds, hedge funds, and private credit [1]

Summary of FRP Holdings Inc. 2025 Investor Day Company Overview - **Company**: FRP Holdings Inc. (FRPH) - **Industry**: Real Estate Development, focusing on industrial, multifamily, and mining assets - **Historical Background**: The company has roots dating back to Fort O'Rock Industries, which was established during the Great Depression and evolved through various strategic decisions, including a tax-free spin-off in 1986 [3][4]. Core Business Segments 1. **Mining and Royalty Segment**: - Operates 14 locations in Florida, Georgia, and Virginia, producing sand and crushed stone [20]. - Royalty income increased from $4.8 million in 2006 to $12.8 million in 2024, reflecting strong pricing growth [47]. - The segment generated $14.4 million in NOI in 2024, with a 17.2% CAGR over the last four years [25]. 2. **Industrial Commercial Segment**: - Currently holds approximately 550,000 square feet of industrial space, generating $4.5 million in NOI in 2024 [26]. - Plans to double the industrial portfolio to over 1.1 million square feet by 2025 [22]. - Achieved a pro rata NOI CAGR of 33.4% over the last four years [26]. 3. **Multifamily Segment**: - Comprises over 1,800 units and generated $18.2 million in NOI in 2024 [26]. - Focused on high-growth markets, with plans to expand in Greenville, South Carolina, and Southwest Florida [23][45]. - The segment has a pro rata NOI CAGR of 31% over the last four years [26]. 4. **Development Segment**: - Represents early-stage projects and land banked for future development, contributing approximately $1 million in NOI [27]. - Actively entitling 1.9 million square feet of industrial product and over 1,800 multifamily units [28]. Strategic Focus and Growth Plans - **Shift to Industrial Focus**: The company is pivoting back to industrial development after a period of multifamily focus, aiming to capitalize on high-quality markets with strong demand [7][10]. - **Joint Ventures**: Engaging in partnerships to expand capabilities in new markets, particularly in Florida [8][37]. - **Projected Growth**: Plans to invest $300 million over the next five years, targeting an additional $44 million in annual NOI [62]. Financial Performance and Projections - **NOI Growth**: The company has grown pro rata NOI at a rate of 21% from 2021 to 2024 and aims to grow it by another $30 million over the next five years [13][14]. - **Cash Flow Management**: The company plans to maintain a strong balance sheet while investing heavily in growth, with a projected drawdown in cash reserves [72][75]. - **Market Valuation**: Current share price reflects only income-producing assets, with potential for significant value creation from development projects [59][60]. Market Conditions and Challenges - **Economic Environment**: The company acknowledges the complexities of the current market, including rising interest rates and construction costs, which necessitate strategic patience and decisive actions [54]. - **Regulatory Landscape**: Changes in tenant-landlord laws in the DC market have impacted multifamily development, leading to a strategic pause in that segment [41][42]. Conclusion - **Long-term Vision**: FRP Holdings is positioned for growth through a diversified portfolio and strategic investments in industrial and multifamily assets, with a focus on high-demand markets [55][56]. The company aims to create substantial shareholder value by leveraging its strong balance sheet and operational expertise in real estate development [54].

Company Overview - FRP Holdings is a real estate investment and development company with expertise in property acquisition, development, and management[10] - The company focuses on industrial, multifamily, and commercial properties, supported by mining royalties[11] - The company owns 14 aggregate quarries across Florida, Georgia, and Virginia, totaling approximately 16,650 acres[25] Financial Performance & Strategy - The company's total pro rata Net Operating Income (NOI) increased from $176 million in 2021 to $381 million in 2024, representing a 295% Compound Annual Growth Rate (CAGR)[18, 29] - The company is shifting its portfolio back to industrial & commercial properties, with a projected increase in pro rata NOI from 12% in 2024 to 28% in 2030[15, 18] - The company has a cumulative cash reinvestment strategy to drive long-term NOI growth[13] Segment Highlights - Industrial and Commercial NOI grew from $19 million in 2021 to $45 million in 2024, a 334% CAGR[29] - Mining & Royalty NOI grew from $89 million in 2021 to $144 million in 2024, a 172% CAGR[29] - Multifamily NOI grew from $81 million in 2021 to $182 million in 2024, a 310% CAGR[29] Future Development Plans - The company plans industrial projects in Florida (Lakeland and Fort Lauderdale) totaling 383000 square feet and Maryland (Harford County and Cranberry) totaling 894000 square feet[42] - The company estimates $2564 million investment through 2028 in industrial and multifamily projects, expecting $355 million in additional future NOI and $3770 million in additional future Net Asset Value (NAV)[78] - The company has identified industrial developments requiring $91 million in equity and $40 million in debt, projecting $9 million in pro rata NOI upon stabilization[85]

Revenue and Income - For the three months ended March 31, 2025, total revenues were $10,306,000, a 1.7% increase from $10,133,000 in the same period of 2024[36] - The Mining Royalty Lands Segment reported revenues of $3,234,000, up 9.1% from $2,963,000 in the prior year[36] - The Company’s net income attributable to the Company for the three months ended March 31, 2025, was $1,710,000, compared to $1,301,000 for the same period in 2024, representing a 31.5% increase[43] - Basic and diluted earnings per common share for the three months ended March 31, 2025, were both $0.09, compared to $0.07 in the prior year, reflecting a 28.6% increase[43] Expenses and Profitability - Operating profit before general and administrative expenses for the Industrial and Commercial Segment decreased to $643,000 from $812,000, a decline of 20.8%[36] - Capital expenditures for the three months ended March 31, 2025, totaled $3,100,000, a significant decrease of 50% from $6,205,000 in the same period of 2024[36] - The Company recorded stock compensation expense of $365,000 for the three months ended March 31, 2025, compared to $320,000 in the same period of 2024, indicating a 14.1% increase[47] - The total operating profit for the Bryant Street Partnerships was $613,000 for the three months ended March 31, 2025, compared to $373,000 in 2024, an increase of 64.3%[66] - Interest expense for the Bryant Street Partnerships decreased to $(2,307,000) in the three months ended March 31, 2025, from $(2,684,000) in 2024, a reduction of 14%[66] Assets and Liabilities - Total identifiable net assets as of March 31, 2025, were $717,123,000, a decrease from $728,485,000 as of December 31, 2024[37] - The Company’s long-term debt as of March 31, 2025, was $178,250,000, slightly down from $178,853,000 at the end of 2024[38] - The carrying amount and fair value of the company's long-term debt as of March 31, 2025, were $180,070,000 and $145,710,000, respectively[58] - The company reported a consolidated retained earnings (accumulated deficit) of $(30,513,000) as of December 31, 2024[65] - Total liabilities and capital as of December 31, 2024, were $517,039,000, with secured notes payable amounting to $272,313,000[65] Investments and Joint Ventures - The company reported a total loss of $3,165,000 from its investments in unconsolidated joint ventures as of March 31, 2025[60] - The company's total investments in unconsolidated joint ventures amounted to $148,302,000 as of March 31, 2025, with total assets of $509,258,000[60] Lease Revenue - Lease revenue for the Bryant Street Partnerships increased to $4,042,000 for the three months ended March 31, 2025, compared to $3,837,000 for the same period in 2024, reflecting a growth of 5.4%[66] - The Greenville Partnerships reported lease revenue of $2,599,000 for the three months ended March 31, 2025, up from $2,366,000 in 2024, representing a 9.8% increase[67] - The Verge Partnership achieved lease revenue of $2,273,000 for the three months ended March 31, 2025, compared to $1,988,000 in 2024, marking a growth of 14.4%[67] Financial Position and Risk - The company believes that the ultimate disposition of currently known environmental matters will not have a material effect on its financial position, liquidity, or operations[53] - The applicable margin for borrowings under the Wells Fargo Credit Agreement was Daily simple SOFR plus 2.25% as of March 31, 2025[130] - The company did not have a material amount of variable rate debt as of March 31, 2025, indicating limited exposure to interest rate risk[131] Stock and Options - The Company had 496,280 common shares available for future issuance as of March 31, 2025[46] - As of March 31, 2025, the company had 175,005 options outstanding with a weighted average exercise price of $24.68 and a fair value of $1,681,000[48] - The aggregate intrinsic value of exercisable in-the-money options was $840,000 based on the market closing price of $28.57 on March 31, 2025[49] - The total unrecognized compensation cost of restricted stock granted but not yet vested as of March 31, 2025 was $3,150,000, expected to be recognized over a weighted-average period of 3.1 years[50] Other Financial Obligations - The company had $548,000 outstanding under letters of credit as of March 31, 2025, issued to guarantee obligations related to real estate development[54] - The company provided a guaranty for the interest carry cost of a $110 million loan, with a calculated guarantee value of $1.5 million[55]

Financial Data and Key Metrics Changes - Net income for the first quarter increased by 31.4% to $1,700,000 or $0.09 per share compared to $1,300,000 or $0.07 per share in the same period last year [6] - The company's pro rata share of net operating income (NOI) in the first quarter increased by 10% year over year to $9,400,000, primarily driven by higher contributions from multifamily developments and mining royalty segments [6][7] - Over the last three years, pro rata NOI has grown at a compound annual growth rate of 21.8% [7] Business Line Data and Key Metrics Changes - The multifamily segment contributed an additional $141,000 of NOI year over year [6] - The mining segment saw an increase of $524,000 in NOI [6] - The industrial and commercial segment NOI decreased by $20,000 year over year due to vacancy and uncollectible revenue from an evicted tenant [7] - Total revenues and NOI for the commercial and industrial segment were $1,300,000 and $1,100,000 respectively, a decrease of 72% over the same period last year [8] - The mining and royalty business segment reported total revenues and NOI of $3,200,000 and $3,300,000 respectively, an increase of 919% over the same period last year [9] - The multifamily segment reported total revenues and NOI of $14,300,000 and $8,000,000 respectively, with FRP's share being $8,300,000 and $4,600,000 [10] Market Data and Key Metrics Changes - The multifamily apartments were 94% occupied, while retail space was 74.8% occupied at quarter end [10] - Same store comparison showed a revenue increase of 4% with NOI flat over the same period last year, primarily due to higher operating expenses [11] - New deliveries in the DC market are expected to pressure vacancies, concessions, and revenue growth in the foreseeable future [11] Company Strategy and Development Direction - The company aims to double the size of its industrial segment over the next five years by delivering three new industrial assets every two years [24] - The focus for 2025 includes getting the Cranberry and Chelsea projects fully occupied and investing in new projects [23] - The company is in the middle of predevelopment activities for a 900,000 square foot distribution center in Cecil County, Maryland, with expected permits in early 2026 [14][15] Management's Comments on Operating Environment and Future Outlook - Management cautioned investors to expect flat to slightly negative NOI results overall in 2025 due to temporary headwinds [22] - Despite positive first quarter results, the company noted that most income and NOI growth came from increases in mine royalties and improved occupancy at The Verge [21] - The average rental rate of expiring industrial leases was $6.55 triple net, with expectations for new rental rates to start in the sevens or greater [18] Other Important Information - The company has committed $31,100,000 in funding for the Aberdeen overlook project, with expectations to generate interest and profits of approximately $11,200,000 [16] - The construction loan and general contractor agreements for new industrial projects have been executed, with vertical construction anticipated to begin in Q2 2025 [24] Q&A Session Summary - There were no questions from participants during the Q&A session [26]

Financial Data and Key Metrics Changes - Net income for Q1 2025 increased by 31.4% to $1,700,000 or $0.09 per share compared to $1,300,000 or $0.07 per share in the same period last year [5] - Pro rata share of net operating income (NOI) increased by 10% year over year to $9,400,000, driven by higher contributions from multifamily developments and mining royalty segments [5][6] - Over the last three years, pro rata NOI has grown at a compound annual growth rate of 21.8% [6] Business Line Data and Key Metrics Changes - The multifamily segment contributed an additional $141,000 of NOI year over year [5] - The mining segment saw an increase of $524,000 in NOI [5] - The industrial and commercial segment NOI decreased by $20,000 year over year due to tenant eviction [6][7] - Mining and royalty business segment revenues and NOI increased by 919% to $3,200,000 and $3,300,000 respectively [8] - Multifamily segment revenues and NOI totaled $14,300,000 and $8,000,000 respectively, with FRP's share being $8,300,000 and $4,600,000 [9] Market Data and Key Metrics Changes - The commercial and industrial segment had a total of nine buildings with 85.2% leased and occupied [7] - The multifamily apartments were 94% occupied, while retail space was 74.8% occupied [9] - The average rental rate of expiring industrial leases was $6.55 triple net, with expectations for new rates to start in the sevens or greater [18] Company Strategy and Development Direction - The company aims to double the size of its industrial segment over the next five years, with a focus on new industrial projects [23] - Development projects include a 258,000 square foot warehouse in Maryland and a 200,000 square foot warehouse in Florida [11][12] - The company plans to continue entitlement work on its industrial pipeline in Maryland to be shovel-ready by 2026 [22] Management's Comments on Operating Environment and Future Outlook - Management cautioned investors to expect flat to slightly negative NOI results overall in 2025 due to temporary headwinds [21] - The company is focused on getting existing properties fully occupied and investing in new projects to set up for future NOI growth [21][24] - Uncertainty around trade policy and the economy has caused leasing activity to slow, but rental rates remain strong [17] Other Important Information - The company has committed $31,100,000 in funding for the Aberdeen overlook project, with expected profits of $11,200,000 [16] - The company is in the initial permitting stage for a 55-acre tract in Harbour County, Maryland, with plans for four buildings totaling 635,000 square feet [14] Q&A Session Summary - There were no questions from participants during the Q&A session [25]