[Part I. Financial Information](index=5&type=section&id=Part%20I.%20Financial%20Information) This section presents the company's unaudited consolidated financial statements, management's discussion, market risks, and internal controls [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for FRP Holdings, Inc. as of June 30, 2025, including balance sheets, income statements, cash flows, and detailed notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$722,782** | **$728,485** | | Cash and cash equivalents | $153,167 | $148,620 | | Net real estate investments | $562,149 | $573,060 | | Investments in joint ventures | $139,098 | $153,899 | | **Total Liabilities** | **$261,368** | **$259,372** | | Secured notes payable | $180,371 | $178,853 | | **Total Equity** | **$461,414** | **$469,113** | - Total assets decreased slightly from **$728.5 million** at year-end 2024 to **$722.8 million** as of June 30, 2025, mainly driven by a reduction in investments in joint ventures[13](index=13&type=chunk) [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) This section outlines the company's financial performance over the three and six months ended June 30, 2025, detailing revenues, operating profit, and net income Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $10,850 | $10,477 | $21,156 | $20,610 | | Total Operating Profit | $1,657 | $2,820 | $3,982 | $5,702 | | Net Income | $624 | $2,059 | $2,258 | $3,394 | | Net Income Attributable to Company | $578 | $2,044 | $2,288 | $3,345 | | Diluted EPS | $0.03 | $0.11 | $0.12 | $0.18 | - Net income attributable to the company for Q2 2025 was **$578,000**, a significant decrease from **$2,044,000** in Q2 2024. Similarly, for the six-month period, net income fell to **$2,288,000** from **$3,345,000** year-over-year[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section details the cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Cash Flow Summary (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $13,172 | $15,082 | | Net cash provided by (used in) investing activities | $1,293 | $(14,219) | | Net cash used in financing activities | $(9,918) | $(1,489) | | **Net increase (decrease) in cash** | **$4,547** | **$(626)** | - For the first six months of 2025, cash from operations decreased to **$13.2 million** from **$15.1 million** in the prior year. Investing activities generated **$1.3 million** in cash, a significant shift from a **$14.2 million** use of cash in 2024, primarily due to lower investments in properties and joint ventures and higher return of capital from JVs[21](index=21&type=chunk) [Condensed Notes to Consolidated Financial Statements](index=12&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) This section provides additional details on the company's accounting policies, business segments, debt, and other financial matters, offering context to the financial statements - The company operates in four reportable segments: Industrial and Commercial, Mining Royalty Lands, Development, and Multifamily[24](index=24&type=chunk)[31](index=31&type=chunk) - On April 12, 2024, the company effected a **2-for-1 forward stock split**, with all share and per-share information retroactively adjusted[27](index=27&type=chunk) - As of June 30, 2025, the company had no debt outstanding on its **$35 million** revolving credit facility with Wells Fargo, with **$34.55 million** available for borrowing[40](index=40&type=chunk) - One lessee in the mining royalty segment accounted for **25.1%** of the company's consolidated revenues for the six months ended June 30, 2025[60](index=60&type=chunk) - Subsequent to the quarter end, on July 21, 2025, the company amended its credit agreement with Wells Fargo, establishing a five-year, **$50 million** revolving credit facility[72](index=72&type=chunk) - On July 23, 2025, the company entered into a new joint venture to develop two industrial warehouses totaling **377,892 square feet** in Lake County, Florida[73](index=73&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting a **72% Q2 net income decrease** despite **5% pro rata NOI growth**, driven by segment performance, liquidity, and strategic industrial expansion [Executive Overview and Reportable Segments](index=25&type=section&id=Executive%20Overview%20and%20Reportable%20Segments) This section outlines the company's four reportable business segments: Multifamily, Industrial and Commercial, Mining Royalty Lands, and Development, detailing their operations and strategic focus - The company's business is organized into four reportable segments: Multifamily, Industrial and Commercial, Mining Royalty Lands, and Development[79](index=79&type=chunk) - The Multifamily segment includes six stabilized joint ventures managing apartment buildings and associated retail in Washington, D.C. and Greenville, SC[80](index=80&type=chunk)[81](index=81&type=chunk) - The Industrial and Commercial segment owns and manages nine warehouses, an office building, and two ground leases, with a new **258,279 sq. ft.** speculative building added on April 1, 2025[32](index=32&type=chunk)[90](index=90&type=chunk) - The Mining Royalty Lands segment owns approximately **16,648 acres** leased for mining royalties, focusing on creating valuable "second lives" for these assets post-mining[85](index=85&type=chunk)[87](index=87&type=chunk) - The Development segment converts non-income producing lands into income-producing properties through construction, sale, or joint ventures, including industrial projects and significant land holdings[92](index=92&type=chunk)[94](index=94&type=chunk)[95](index=95&type=chunk) [Second Quarter Highlights and Recent Developments](index=32&type=section&id=Second%20Quarter%20Highlights%20and%20Recent%20Developments) This section summarizes key financial results for Q2 2025, including net income and pro rata NOI, and highlights recent strategic initiatives and credit facility amendments Q2 2025 vs Q2 2024 Key Metrics | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income | $0.6M | $2.0M | -72% | | Pro Rata NOI | $9.7M | $9.2M | +5% | - The primary goal for 2025 is to set the stage for future growth by leasing vacancies and investing in new projects, particularly in the industrial sector[101](index=101&type=chunk) - A new joint venture was formed with SREP to develop **377,892 sq. ft.** of warehouse space in Lake County, FL, supporting the goal to double the industrial segment by 2030[102](index=102&type=chunk)[103](index=103&type=chunk) - The company's credit facility with Wells Fargo was amended and restated, increasing the revolving credit facility to **$50 million** for a five-year term[102](index=102&type=chunk)[72](index=72&type=chunk) [Comparative Results of Operations](index=34&type=section&id=Comparative%20Results%20of%20Operations) This section provides a detailed comparison of the company's financial performance for the three and six months ended June 30, 2025 and 2024, across key metrics and segments Three Months Ended June 30, 2025 vs 2024 (in thousands) | Metric | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $10,850 | $10,477 | $373 | 3.6% | | Total Operating Profit | $1,657 | $2,820 | $(1,163) | -41.2% | | Net Income Attributable to Company | $578 | $2,044 | $(1,466) | -71.7% | Six Months Ended June 30, 2025 vs 2024 (in thousands) | Metric | 2025 | 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $21,156 | $20,610 | $546 | 2.6% | | Total Operating Profit | $3,982 | $5,702 | $(1,720) | -30.2% | | Net Income Attributable to Company | $2,288 | $3,345 | $(1,057) | -31.6% | - For Q2 2025, Mining Royalty Lands NOI increased **21%** YoY, while Industrial and Commercial NOI decreased **15%** due to an eviction and lease expirations[102](index=102&type=chunk) - For the six months ended June 30, 2025, Mining Royalty Lands NOI increased **20.1%** YoY, Industrial and Commercial NOI decreased **8.4%**, and Multifamily pro rata NOI grew **2.2%**[122](index=122&type=chunk)[125](index=125&type=chunk)[132](index=132&type=chunk)[134](index=134&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's cash position, available credit facilities, and future investment commitments, outlining its financial flexibility and capital deployment plans - As of June 30, 2025, the company had **$153.2 million** in cash and cash equivalents[136](index=136&type=chunk) - The company had **$34.55 million** available to borrow under its **$35 million** Wells Fargo revolver as of June 30, 2025, which was subsequently increased to **$50 million** in July 2025[136](index=136&type=chunk)[72](index=72&type=chunk) - The company expects to invest **$73 million** into existing real estate holdings and joint ventures during the remainder of 2025 and **$153 million** beyond 2025 for projects in the pipeline[151](index=151&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risks](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) The company is exposed to interest rate risk through its variable-rate borrowings, but the amount of variable rate debt was not material enough to warrant a sensitivity analysis - The company's primary market risk is exposure to interest rate changes from its variable-rate borrowings[155](index=155&type=chunk) - As of June 30, 2025, the amount of variable rate debt was not considered material, so a sensitivity analysis was not performed[156](index=156&type=chunk) [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[159](index=159&type=chunk) - There were no changes in internal controls over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[160](index=160&type=chunk) [Part II. Other Information](index=53&type=section&id=Part%20II.%20Other%20Information) This section covers additional information including risk factors, equity security purchases, and a list of exhibits filed with the report [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the detailed risk factors outlined in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - The company refers to its Annual Report on Form 10-K for the year ended December 31, 2024, for a detailed discussion of risk factors[161](index=161&type=chunk) [Item 2. Purchase of Equity Securities by the Issuer](index=53&type=section&id=Item%202.%20Purchase%20of%20Equity%20Securities%20by%20the%20Issuer) The company reports no share repurchases during Q3 2025, with approximately **$7.36 million** remaining available under its stock repurchase program - No shares were repurchased by the company from July 1 through September 30[163](index=163&type=chunk) - Approximately **$7,363,000** remains available for share repurchases under the company's publicly announced plans[163](index=163&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by key officers and XBRL data files - The report includes certifications from the CEO, CFO, and Controller/CAO as required by the Sarbanes-Oxley Act of 2002[168](index=168&type=chunk)[170](index=170&type=chunk)

Financial Data and Key Metrics Changes - Net income for Q2 2025 decreased 72% to $600,000 or $0.03 per share compared to $2,000,000 or $0.11 per share in the same period last year, primarily due to due diligence related legal expenses and lower interest income [3] - The company's pro rata share of NOI in Q2 increased 5% year over year to $9,700,000, driven by higher contributions from multifamily and mining royalty segments [3][19] Business Line Data and Key Metrics Changes - The multifamily segment contributed an additional $57,000 of NOI year over year, while the mining segment contributed an additional $637,000 of NOI [3] - The industrial and commercial segment NOI decreased by $177,000 year over year due to tenant eviction and lease expirations [4] - Mining and royalty business segment revenues and NOI for the quarter totaled $3,600,000 and $3,700,000 respectively, an increase of 1221% over the same period last year [6] - The multifamily segment reported total revenues and NOI of $14,600,000 and $8,200,000 respectively, with a 94% occupancy rate for apartments and 83% for retail space [7] Market Data and Key Metrics Changes - 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 [15] - New deliveries in the DC market are expected to pressure vacancies, concessions, and revenue growth in the foreseeable future [9] Company Strategy and Development Direction - The company plans to continue focusing on leasing existing industrial space and managing the delivery of new industrial products for 2026 [15][20] - The company is pursuing a business opportunity that involves legal expenses, but this does not indicate a shift in strategy [24] - The company aims to double the size of its industrial portfolio by 2030 [20] Management's Comments on Operating Environment and Future Outlook - Management cautioned that NOI growth would be flat or slightly negative during the time it takes to lease up the first building in the industrial development growth strategy [18] - The company anticipates challenges in matching 2024's NOI numbers due to a nonrepeatable event in the mining royalties segment [19] - Management remains optimistic about rental rates and expects market vacancies to top out in 2025, which should bode well for demand and rent growth [15] Other Important Information - The company is in the predevelopment stage for a 170-acre industrial land project in Cecil County, Maryland, with permits expected in early 2026 [11] - The multifamily development project in Greenville, South Carolina, is expected to be ready for lease up in Q4 2027 [14] Q&A Session Summary Question: Inquiry about legal expenses related to a potential new investment - Management confirmed that the legal expenses are related to pursuing a business opportunity but clarified that it does not indicate a shift in strategy [24][25]

Financial Performance Highlights - Net income decreased by 32% to $23 million in Q2'25 compared to $33 million in Q2'24, and decreased by 72% to $06 million YTD compared to $20 million YTD, largely due to professional fees related to a transaction and lower net interest income [6] - Pro rata NOI increased by 7% to $191 million in Q2'25 compared to $178 million in Q2'24, and increased by 5% to $97 million YTD compared to $92 million YTD [6] - Pro rata revenue increased to $13997 million in Q2'25 from $13309 million in Q2'24, and increased to $27426 million YTD in 2025 from $26127 million YTD in 2024 [8] Segment Performance - Multifamily segment pro rata NOI increased by 1% to $4737 million in Q2'25 compared to Q2 2024, and increased by 2% to $9367 million YTD compared to YTD 2024, primarily due to improved occupancy at The Verge and Dock 79 [6, 11, 12] - Industrial and Commercial segment NOI decreased by 15% to $1010 million in Q2'25 compared to Q2 2024, and decreased to $2149 million YTD compared to YTD 2024, primarily due to an eviction and lease expirations [6, 15, 16] - Mining Royalty Lands segment NOI increased by 21% to $3665 million in Q2'25 compared to Q2 2024, and increased by 20% to $6949 million YTD compared to YTD 2024, primarily due to a reduction in royalty payments in the prior year [6, 21] Development and Strategic Initiatives - Amended the Company's Credit Agreement with Wells Fargo, establishing a five-year, $50 million revolver at SOFR + 225% [6] - Entered a JV with Strategic Real Estate Partners to develop 377892 square feet of industrial space in Lake County, FL [6] - Development activity continues with construction started on Lakeland, FL (200000 sq ft warehouse), Davie, FL (182000 sq ft warehouse redevelopment), and "Woven" – Greenville, SC (214 multifamily units and 14000 retail sq ft multifamily development) in Q2 '25 [10, 27]

[Company Overview](index=1&type=section&id=Company%20Overview) FRP Holdings, Inc. is a full-service real estate investment and development company with four main business segments: multifamily, industrial and commercial development, mining, and royalty lands - FRP Holdings, Inc. (NASDAQ-FRPH) is a full-service real estate investment and development company[1](index=1&type=chunk) - The company has four distinct business segments: multifamily, industrial and commercial development, mining, and royalty lands[1](index=1&type=chunk)[45](index=45&type=chunk) [Second Quarter Fiscal 2025 Highlights and Recent Developments](index=1&type=section&id=Second%20Quarter%20Fiscal%202025%20Highlights%20and%20Recent%20Developments) The company's net income for Q2 FY2025 decreased by 72% year-over-year, primarily due to legal fees related to potential investments and lower net interest income, partially offset by increased mining royalties and improved joint venture losses, while pro rata Net Operating Income (NOI) grew by 5% and new credit and industrial property joint venture agreements were secured to support future growth 2025财年第二季度关键财务亮点 | 指标 | 2025年Q2 (Million USD) | 变化 (%) | | :--- | :--- | :--- | | 净收入 | 0.6 | -72% | | 按比例NOI | 9.7 | +5% | | 多户住宅NOI | - | +1% | | 工业和商业NOI | - | -15% | | 采矿特许权土地NOI | - | +21% | - Net income decrease primarily due to due diligence legal fees for potential investments and lower net interest income, partially offset by increased mining royalties and improved joint venture losses[2](index=2&type=chunk) - The company entered into a new credit agreement on July 21, 2025, establishing a five-year **$50 million** revolving credit facility at SOFR plus **2.25%**[2](index=2&type=chunk) - On July 23, 2025, the company formed a joint venture with Strategic Real Estate Partners to develop two warehouses totaling **377,892 square feet** in Lake County, Florida, with an option for future investment in adjacent industrial warehouses[2](index=2&type=chunk) [Executive Summary and Strategic Outlook](index=2&type=section&id=Executive%20Summary%20and%20Strategic%20Outlook) The company's primary goal for 2025 is to lay the groundwork for future growth by improving existing vacancies and investing in new projects, with construction underway on two industrial joint ventures with Altman Logistics adding 384,193 square feet of Class A industrial space, and a new industrial development joint venture with SREP supporting the strategic shift to double the industrial segment by 2030 - The company's primary goal for 2025 is to lay the groundwork for future growth by leasing existing vacant properties and investing in new projects[3](index=3&type=chunk) - Construction has begun on two joint ventures with Altman Logistics in Lakeland and Broward County, FL, adding **384,193 square feet** of Class A industrial space, expected to be substantially complete by Q2 2026[3](index=3&type=chunk) - The company formed a new joint venture with SREP to develop **377,892 square feet** of industrial warehouse space in Lake County, Florida, with FRP holding a **95% interest** and an option for future development of nearly **1 million square feet** of industrial product[3](index=3&type=chunk) - This agreement supports the company's strategy to shift focus and investment towards the industrial business segment, aiming to **double its size by 2030**[3](index=3&type=chunk) [Comparative Results of Operations - Three Months Ended June 30, 2025 and 2024](index=3&type=section&id=Comparative%20Results%20of%20Operations%20-%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section provides a detailed comparison of the company's operating performance for the three months ended June 30, 2025, against the same period in 2024, across consolidated results and individual business segments [Consolidated Results](index=3&type=section&id=Consolidated%20Results_Q2) In Q2 2025, the company's consolidated net income significantly decreased by 69.7% to $578 thousand year-over-year, primarily due to increased professional fees in the development segment and higher general and administrative expenses, despite a 3.6% revenue growth, leading to a 41.2% decline in total operating profit while pro rata NOI increased by 5% 2025年Q2合并业绩概览 (Thousand USD) | 指标 | 2025年Q2 | 2024年Q2 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 总收入 | 10,850 | 10,477 | 373 | 3.6% | | 总运营成本 | 9,193 | 7,657 | 1,536 | 20.1% | | 总营业利润 | 1,657 | 2,820 | (1,163) | -41.2% | | 净投资收入 | 2,348 | 3,708 | (1,360) | -36.7% | | 股权在合资企业亏损 | (2,379) | (2,724) | 345 | -12.7% | | 净收入 | 624 | 2,059 | (1,435) | -69.7% | | 归属于公司净收入 | 578 | 2,044 | (1,466) | -71.7% | | 每股净收入 | 0.03 | 0.11 | -0.08 | -72.7% | | 按比例NOI | 9,688 | 9,230 | 458 | 5.0% | - Operating profit decreased by **$1.163 million**, primarily due to increased professional fees in the development segment (**$831 thousand**, of which **$712 thousand** were due diligence legal fees) and general and administrative expenses (**$333 thousand**)[4](index=4&type=chunk) - Net investment income decreased by **$1.36 million**, primarily due to lower earnings from cash equivalents (**$456 thousand**) and reduced income from loan joint ventures (**$904 thousand**) resulting from fewer residential lot sales[9](index=9&type=chunk) - Joint venture losses improved by **$345 thousand**, mainly benefiting from increased occupancy at The Verge and higher revenue and lower floating-rate interest expenses at Bryant Street and BC Realty[9](index=9&type=chunk) [Multifamily Segment](index=5&type=section&id=Multifamily%20Segment_Q2) The multifamily segment's pro rata Net Operating Income (NOI) increased by 1% year-over-year to $4.737 million, primarily driven by improved occupancy at The Verge, with revenue growth at Dock 79 partially offset by lower revenue at The Maren and higher property taxes, encompassing both consolidated and unconsolidated joint ventures 2025年Q2多户住宅板块按比例NOI (Thousand USD) | 指标 | 2025年Q2 | 2024年Q2 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 按比例NOI | 4,737 | 4,680 | 57 | 1.2% | | The Verge贡献NOI | 733 | 710 | 23 | 3.2% | | 同店NOI增长 | - | - | 34 | - | - Improved occupancy at The Verge was the primary growth driver, contributing **$733 thousand** in pro rata NOI[8](index=8&type=chunk) - Favorable revenue at Dock 79 was partially offset by lower revenue at The Maren and higher property taxes, resulting in a modest **$34 thousand** increase in same-store NOI[8](index=8&type=chunk) [Pro Rata Consolidated and Unconsolidated](index=5&type=section&id=Pro%20Rata%20Consolidated%20and%20Unconsolidated_Q2) The multifamily segment's pro rata consolidated and unconsolidated Net Operating Income (NOI) increased by 1.2% to $4.737 million in Q2 2025, primarily due to improved occupancy at The Verge, with overall average occupancy rising from 93.0% to 94.1% 2025年Q2多户住宅板块按比例合并与非合并NOI及入住率 (Thousand USD) | 指标 | 2025年Q2 | 2024年Q2 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 租赁收入 | 8,467 | 8,113 | 354 | 4.4% | | 运营成本 | 7,085 | 6,849 | 236 | 3.4% | | 营业利润 (G&A前) | 1,382 | 1,264 | 118 | 9.3% | | 净营业收入 (NOI) | 4,737 | 4,680 | 57 | 1.2% | | 平均入住率 (Q2 2025) | 94.1% | 93.0% | - | - | - The Verge contributed **$733 thousand** in pro rata NOI, an increase of **$23 thousand** from the prior year period[8](index=8&type=chunk) - Dock 79's average occupancy increased from **93.6% to 95.5%**, with a renewal success rate of **74.6%** and rent growth of **5.9%**[10](index=10&type=chunk) [Consolidated (Dock 79 and The Maren)](index=6&type=section&id=Consolidated%20%28Dock%2079%20%26%20The%20Maren%29_Q2) Total revenue for the company's two consolidated joint ventures (Dock 79 and The Maren) increased by 1.3% to $5.567 million in Q2 2025, with total operating profit before G&A growing by 3% to $1.457 million, mainly due to lower depreciation expenses 2025年Q2合并合资企业业绩 (Thousand USD) | 指标 | 2025年Q2 | 2024年Q2 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 租赁收入 | 5,567 | 5,496 | 71 | 1.3% | | 运营成本 | 4,110 | 4,076 | 34 | 0.8% | | 营业利润 (G&A前) | 1,457 | 1,420 | 37 | 2.6% | - Operating profit growth was primarily attributable to a **$46 thousand** reduction in depreciation and amortization expenses[11](index=11&type=chunk) [Pro Rata Unconsolidated](index=6&type=section&id=Pro%20Rata%20Unconsolidated_Q2) Pro rata revenue for the company's four unconsolidated joint ventures increased by 6.2% to $5.436 million in Q2 2025, with pro rata operating profit before G&A significantly growing by 15.1% to $571 thousand, primarily driven by improved occupancy at The Verge and Bryant Street, and increased revenue at .408 Jackson 2025年Q2非合并合资企业业绩 (Thousand USD) | 指标 | 2025年Q2 | 2024年Q2 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 租赁收入 | 5,436 | 5,118 | 318 | 6.2% | | 运营成本 | 4,865 | 4,622 | 243 | 5.3% | | 营业利润 (G&A前) | 571 | 496 | 75 | 15.1% | - Improved occupancy at The Verge and Bryant Street, along with increased revenue at .408 Jackson, were the primary drivers of performance growth for unconsolidated joint ventures[13](index=13&type=chunk) [Industrial and Commercial Segment](index=7&type=section&id=Industrial%20and%20Commercial%20Segment_Q2) The industrial and commercial segment faced challenges in Q2 2025, with rental revenue decreasing by 4.9% to $1.374 million and Net Operating Income (NOI) declining by 14.9% to $1.01 million year-over-year, while operating profit before G&A significantly dropped by 46.6% to $443 thousand, mainly due to increased depreciation for the new Chelsea warehouse, a tenant default, and lower occupancy from lease expirations 2025年Q2工业和商业板块业绩 (Thousand USD) | 指标 | 2025年Q2 | 2024年Q2 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 租赁收入 | 1,374 | 1,445 | (71) | -4.9% | | 运营成本 | 931 | 615 | 316 | 51.4% | | 营业利润 (G&A前) | 443 | 830 | (387) | -46.6% | | 净营业收入 (NOI) | 1,010 | 1,187 | (177) | -14.9% | - The **258,279 square foot** speculative warehouse project on Chelsea Road was completed and entered the lease-up phase on April 1, 2025[14](index=14&type=chunk) - As of June 30, 2025, the segment totaled **773,356 square feet** of industrial and **33,708 square feet** of office space, with a combined leased and occupied rate of **50.3%**[14](index=14&type=chunk)[15](index=15&type=chunk) - Excluding Chelsea, occupancy was **74.0%**, down from **95.6%** in the prior year, primarily due to a tenant eviction for non-payment of rent and lease expirations[14](index=14&type=chunk)[15](index=15&type=chunk) - The decrease in operating profit also included **$216 thousand** in depreciation and **$30 thousand** in operating costs for the Chelsea warehouse[16](index=16&type=chunk) [Mining Royalty Lands Segment Results](index=9&type=section&id=Mining%20Royalty%20Lands%20Segment%20Results_Q2) The mining royalty lands segment performed strongly in Q2 2025, with total revenue increasing by 11.7% to $3.609 million and Net Operating Income (NOI) growing by 21% to $3.665 million year-over-year, while operating profit before G&A increased by 11.9% to $3.34 million, primarily due to a $277 thousand overpayment deduction in the prior year and a 7% increase in royalty per ton despite a 3% decrease in royalty tonnage 2025年Q2采矿特许权土地板块业绩 (Thousand USD) | 指标 | 2025年Q2 | 2024年Q2 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 采矿特许权和租金收入 | 3,609 | 3,231 | 378 | 11.7% | | 运营成本 | 269 | 246 | 23 | 9.3% | | 营业利润 (G&A前) | 3,340 | 2,985 | 355 | 11.9% | | 净营业收入 (NOI) | 3,665 | 3,028 | 637 | 21.0% | - Prior year revenue was impacted by a **$277 thousand** deduction for an overpayment[17](index=17&type=chunk) - Royalty tonnage decreased by **3%**, but royalty revenue per ton increased by **7%** (excluding the prior year overpayment deduction)[17](index=17&type=chunk) - NOI growth also benefited from a **$264 thousand** reduction in unrealized revenue, attributed to temporarily higher minimum royalty payments at one location[17](index=17&type=chunk) [Development Segment Results](index=10&type=section&id=Development%20Segment%20Results_Q2) The development segment recorded an operating loss before G&A of $698 thousand in Q2 2025, a significant deterioration from the $137 thousand operating profit in the prior year, as rental revenue slightly decreased while operating costs significantly increased by $831 thousand, leading to the expanded loss 2025年Q2开发板块业绩 (Thousand USD) | 指标 | 2025年Q2 | 2024年Q2 | 变化 (Thousand USD) | | :--- | :--- | :--- | :--- | | 租赁收入 | 300 | 305 | (5) | | 运营成本 | 998 | 168 | 830 | | 营业利润 (G&A前) | (698) | 137 | (835) | - A significant increase of **$831 thousand** in operating expenses was the primary cause of the deterioration in operating profit[18](index=18&type=chunk) [Comparative Results of Operations - Six Months Ended June 30, 2025 and 2024](index=10&type=section&id=Comparative%20Results%20of%20Operations%20-%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section provides a detailed comparison of the company's operating performance for the six months ended June 30, 2025, against the same period in 2024, across consolidated results and individual business segments [Six Month Highlights](index=10&type=section&id=Six%20Month%20Highlights) For the six months ended June 30, 2025, the company made progress in residential lot development, industrial warehouse joint ventures, and multifamily project financing, with net income decreasing by 32% year-over-year, but pro rata Net Operating Income (NOI) growing by 7% and the multifamily segment's pro rata NOI increasing by 2% - The company is the primary capital source for a **344-residential lot** development project in Harford County, Maryland, having invested **$27 million** and sold **160 lots**, realizing **$5.5 million** in profit[20](index=20&type=chunk) - Two new joint venture agreements were signed with Altman Logistics to develop industrial warehouses in Lakeland and Broward County, Florida, with construction loans completed in March 2025 and construction commencing in Q2[20](index=20&type=chunk) - Secured **$87.8 million** in construction financing for Woven, the third Greenville multifamily project in partnership with Woodfield Development[20](index=20&type=chunk) - The BC Realty partnership refinanced its floating-rate construction loan for two office buildings into a **10-year, $10.5 million** fixed-rate permanent loan at **6.40%**[20](index=20&type=chunk) 2025年上半年关键财务亮点 | 指标 | 2025年上半年 | 变化 (%) | | :--- | :--- | :--- | | 净收入 | 2.3 Million USD | -32% | | 按比例NOI | 19.1 Million USD | +7% | | 多户住宅板块按比例NOI | - | +2% | [Consolidated Results](index=11&type=section&id=Consolidated%20Results_H1) In H1 2025, the company's consolidated net income decreased by 33.5% to $2.258 million year-over-year, primarily due to increased professional fees in the development segment and higher general and administrative expenses, despite a 2.6% revenue growth, leading to a 30.2% decline in total operating profit while pro rata NOI increased by 7% 2025年上半年合并业绩概览 (Thousand USD) | 指标 | 2025年上半年 | 2024年上半年 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 总收入 | 21,156 | 20,610 | 546 | 2.6% | | 总运营成本 | 17,174 | 14,908 | 2,266 | 15.2% | | 总营业利润 | 3,982 | 5,702 | (1,720) | -30.2% | | 净投资收入 | 4,909 | 6,491 | (1,582) | -24.4% | | 股权在合资企业亏损 | (4,410) | (5,743) | 1,333 | -23.2% | | 净收入 | 2,258 | 3,394 | (1,136) | -33.5% | | 归属于公司净收入 | 2,288 | 3,345 | (1,057) | -31.6% | | 每股净收入 | 0.12 | 0.18 | -0.06 | -33.3% | | 按比例NOI | 19,052 | 17,764 | 1,288 | 7.2% | - Operating profit decreased by **$1.72 million**, primarily due to increased professional fees in the development segment (**$682 thousand**, of which **$712 thousand** were due diligence legal fees) and general and administrative expenses (**$868 thousand**)[21](index=21&type=chunk) - Net investment income decreased by **$1.582 million**, primarily due to lower earnings from cash equivalents (**$904 thousand**) and reduced income from loan joint ventures (**$678 thousand**) resulting from fewer residential lot sales[26](index=26&type=chunk) - Interest expense decreased by **$221 thousand**, mainly due to a **$209 thousand** increase in capitalized interest, reflecting more internal and joint venture projects under construction during the quarter[26](index=26&type=chunk) - Joint venture losses improved by **$1.333 million**, mainly benefiting from increased occupancy at The Verge and higher revenue and lower floating-rate interest expenses at Bryant Street and BC Realty[26](index=26&type=chunk) [Multifamily Segment](index=13&type=section&id=Multifamily%20Segment_H1) The multifamily segment's pro rata Net Operating Income (NOI) increased by 2.2% year-over-year to $9.367 million in H1 2025, primarily driven by improved lease-up occupancy at The Verge, with same-store NOI modestly increasing by $28 thousand 2025年上半年多户住宅板块按比例NOI (Thousand USD) | 指标 | 2025年上半年 | 2024年上半年 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 按比例NOI | 9,367 | 9,169 | 198 | 2.2% | | The Verge贡献NOI | 1,486 | 1,316 | 170 | 12.9% | | 同店NOI增长 | - | - | 28 | - | - Improved lease-up occupancy at The Verge was the primary growth driver, contributing **$1.486 million** in pro rata NOI, an increase of **$170 thousand** from the prior year period[25](index=25&type=chunk) [Pro Rata Consolidated and Unconsolidated](index=13&type=section&id=Pro%20Rata%20Consolidated%20and%20Unconsolidated_H1) The multifamily segment's pro rata consolidated and unconsolidated Net Operating Income (NOI) increased by 2.2% to $9.367 million in H1 2025, primarily due to improved lease-up occupancy at The Verge, with overall average occupancy rising from 92.7% to 94.1% 2025年上半年多户住宅板块按比例合并与非合并NOI及入住率 (Thousand USD) | 指标 | 2025年上半年 | 2024年上半年 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 租赁收入 | 16,772 | 15,996 | 776 | 4.9% | | 运营成本 | 13,967 | 13,562 | 405 | 3.0% | | 营业利润 (G&A前) | 2,805 | 2,434 | 371 | 15.2% | | 净营业收入 (NOI) | 9,367 | 9,169 | 198 | 2.2% | | 平均入住率 (YTD 2025) | 94.1% | 92.7% | - | - | - The Verge's average occupancy increased from **89.5% to 93.4%**, with a renewal success rate of **69.1%** and rent growth of **2.8%**[27](index=27&type=chunk) [Consolidated (Dock 79 and The Maren)](index=14&type=section&id=Consolidated%20%28Dock%2079%20and%20The%20Maren%29_H1) Total revenue for the company's two consolidated joint ventures (Dock 79 and The Maren) increased by 0.7% to $10.991 million in H1 2025, while total operating profit before G&A decreased by 7% to $2.666 million, mainly due to increased operating expenses and property taxes 2025年上半年合并合资企业业绩 (Thousand USD) | 指标 | 2025年上半年 | 2024年上半年 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 租赁收入 | 10,991 | 10,910 | 81 | 0.7% | | 运营成本 | 8,325 | 8,042 | 283 | 3.5% | | 营业利润 (G&A前) | 2,666 | 2,868 | (202) | -7.0% | - Operating profit decrease was primarily attributable to a **$132 thousand** increase in operating expenses and a **$183 thousand** increase in property taxes[28](index=28&type=chunk) [Pro Rata Unconsolidated](index=14&type=section&id=Pro%20Rata%20Unconsolidated_H1) Pro rata revenue for the company's four unconsolidated joint ventures increased by 7.3% to $10.785 million in H1 2025, with pro rata operating profit before G&A significantly growing by 50.7% to $1.322 million, primarily driven by improved lease-up occupancy at The Verge and increased revenue at Bryant Street and .408 Jackson 2025年上半年非合并合资企业业绩 (Thousand USD) | 指标 | 2025年上半年 | 2024年上半年 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 租赁收入 | 10,785 | 10,051 | 734 | 7.3% | | 运营成本 | 9,463 | 9,174 | 289 | 3.2% | | 营业利润 (G&A前) | 1,322 | 877 | 445 | 50.7% | - Improved lease-up occupancy at The Verge and increased revenue at Bryant Street and .408 Jackson were the primary drivers of performance growth for unconsolidated joint ventures[30](index=30&type=chunk) [Industrial and Commercial Segment](index=15&type=section&id=Industrial%20and%20Commercial%20Segment_H1) The industrial and commercial segment's rental revenue decreased by 6.1% to $2.721 million and Net Operating Income (NOI) declined by 8.4% to $2.149 million year-over-year in H1 2025, while operating profit before G&A significantly dropped by 33.9% to $1.086 million, mainly due to increased depreciation for the new Chelsea warehouse, a write-off of unrealized rent receivables due to a tenant default, and related occupancy decreases 2025年上半年工业和商业板块业绩 (Thousand USD) | 指标 | 2025年上半年 | 2024年上半年 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 租赁收入 | 2,721 | 2,898 | (177) | -6.1% | | 运营成本 | 1,635 | 1,256 | 379 | 30.2% | | 营业利润 (G&A前) | 1,086 | 1,642 | (556) | -33.9% | | 净营业收入 (NOI) | 2,149 | 2,346 | (197) | -8.4% | - Operating profit decrease also included **$216 thousand** in depreciation and **$30 thousand** in operating costs for the Chelsea warehouse, as well as a **$118 thousand** write-off of unrealized rent receivables and **$34 thousand** in deferred leasing commissions due to a tenant default[31](index=31&type=chunk) [Mining Royalty Lands Segment Results](index=17&type=section&id=Mining%20Royalty%20Lands%20Segment%20Results_H1) The mining royalty lands segment performed strongly in H1 2025, with total revenue increasing by 10.5% to $6.843 million and Net Operating Income (NOI) growing by 20.1% to $6.949 million year-over-year, while operating profit before G&A increased by 10.4% to $6.305 million, primarily due to an $842 thousand overpayment deduction in the prior year and an 8.5% increase in royalty per ton despite a 7% decrease in royalty tonnage 2025年上半年采矿特许权土地板块业绩 (Thousand USD) | 指标 | 2025年上半年 | 2024年上半年 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 采矿特许权和租金收入 | 6,843 | 6,194 | 649 | 10.5% | | 运营成本 | 538 | 485 | 53 | 10.9% | | 营业利润 (G&A前) | 6,305 | 5,709 | 596 | 10.4% | | 净营业收入 (NOI) | 6,949 | 5,788 | 1,161 | 20.1% | - Prior year revenue was impacted by an **$842 thousand** deduction for an overpayment, of which **$566 thousand** was withheld by a tenant in the prior year first half[33](index=33&type=chunk) - Royalty tonnage decreased by **7%**, but royalty revenue per ton increased by **8.5%** (excluding the prior year overpayment deduction)[33](index=33&type=chunk) - NOI growth also benefited from a **$518 thousand** increase in unrealized revenue, attributed to temporarily higher minimum royalty payments at one location[33](index=33&type=chunk) [Development Segment Results](index=18&type=section&id=Development%20Segment%20Results_H1) The development segment recorded an operating loss before G&A of $613 thousand in H1 2025, a significant deterioration from the $77 thousand operating profit in the prior year, as rental revenue slightly decreased while operating costs significantly increased by $682 thousand, leading to the expanded loss 2025年上半年开发板块业绩 (Thousand USD) | 指标 | 2025年上半年 | 2024年上半年 | 变化 (Thousand USD) | | :--- | :--- | :--- | :--- | | 租赁收入 | 601 | 608 | (7) | | 运营成本 | 1,214 | 531 | 683 | | 营业利润 (G&A前) | (613) | 77 | (690) | - A significant increase of **$682 thousand** in operating expenses was the primary cause of the deterioration in operating profit[35](index=35&type=chunk) [Consolidated Balance Sheets](index=19&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $722.8 million, slightly down from $728.5 million on December 31, 2024, with net real estate investment slightly increasing to $410.7 million, but investments in joint ventures decreasing, while total liabilities remained relatively stable and total stockholders' equity slightly increased 合并资产负债表概览 (Thousand USD) | 指标 | 2025年6月30日 | 2024年12月31日 | 变化 (Thousand USD) | | :--- | :--- | :--- | :--- | | 总资产 | 722,782 | 728,485 | (5,703) | | 净房地产投资 | 410,739 | 407,439 | 3,300 | | 合资企业投资 | 139,098 | 153,899 | (14,801) | | 现金及现金等价物 | 153,167 | 148,620 | 4,547 | | 总负债 | 261,368 | 259,372 | 1,996 | | 有担保应付票据 | 180,371 | 178,853 | 1,518 | | 总股东权益 | 426,702 | 423,103 | 3,599 | | 非控股权益 | 34,712 | 46,010 | (11,298) | | 总权益 | 461,414 | 469,113 | (7,699) | - Total real estate investment (at cost) increased from **$485.1 million to $493.7 million**, primarily driven by buildings and improvements[37](index=37&type=chunk) - Investment in projects under construction decreased from **$32.77 million to $16.17 million**[37](index=37&type=chunk) [Non-GAAP Financial Measures - Pro Rata Net Operating Income Reconciliation](index=21&type=section&id=Non-GAAP%20Financial%20Measures%20-%20Pro%20Rata%20Net%20Operating%20Income%20Reconciliation) The company provides Pro rata Net Operating Income (NOI) as a non-GAAP financial measure to help investors and analysts evaluate its economic interest in both consolidated and unconsolidated partnerships, with H1 2025 pro rata NOI at $19.052 million, a 7.2% increase from $17.764 million in H1 2024 - Pro rata Net Operating Income (NOI) is used to supplement GAAP financial results, providing useful information regarding the company's financial condition and operating performance trends[39](index=39&type=chunk) 按比例净营业收入调节表 (Thousand USD) | 指标 | 2025年上半年 | 2024年上半年 | 变化 (Thousand USD) | 变化 (%) | | :--- | :--- | :--- | :--- | :--- | | 合并净收入 (亏损) | 2,258 | 3,394 | (1,136) | -33.5% | | 调整项 (例如：利息收入、股权在合资企业亏损、折旧等) | - | - | - | - | | 净营业收入 (亏损) | 16,002 | 15,132 | 870 | 5.7% | | 非控股权益NOI | (3,052) | (3,111) | 59 | -1.9% | | 非合并合资企业按比例NOI | 6,102 | 5,743 | 359 | 6.3% | | **按比例净营业收入** | **19,052** | **17,764** | **1,288** | **7.2%** | - In H1 2025, pro rata NOI for the multifamily segment was **$9.367 million**, for the mining royalty lands segment was **$6.949 million**, and for the industrial and commercial segment was **$2.149 million**[40](index=40&type=chunk) [Additional Information](index=22&type=section&id=Additional%20Information) This section provides details on upcoming investor communications and important disclosures regarding forward-looking statements [Conference Call Details](index=22&type=section&id=Conference%20Call%20Details) The company will host a conference call on Thursday, August 7, 2025, at 9:00 AM ET to discuss financial results, offering both dial-in access and an audio replay service valid until August 21, 2025 - The conference call will be held on **Thursday, August 7, 2025, at 9:00 AM ET**[42](index=42&type=chunk) - Dial-in for domestic participants is **1-800-343-4849 (passcode 83364)**, and for international participants is **1-203-518-9848 (passcode 83364)**[42](index=42&type=chunk) - An audio replay service is available until **August 21, 2025**, by dialing **1-800-839-2385 (domestic)** or **1-402-220-7203 (international)**[42](index=42&type=chunk) [Investor Relations and Forward-Looking Statements](index=22&type=section&id=Investor%20Relations%20and%20Forward-Looking%20Statements) The company encourages investors to visit its investor relations website for the latest information, including SEC filings, press releases, and corporate governance details, while forward-looking statements in the report are subject to various risks and uncertainties that could cause actual results to differ materially from expectations, and the company undertakes no obligation to update these statements - The investor relations website is **https://investors.frpdev.com**, providing SEC filings, press releases, quarterly earnings reports, investor presentations, and corporate governance information[43](index=43&type=chunk) - Forward-looking statements are subject to various risks and uncertainties, including but not limited to: inability to find suitable investment opportunities, levels of construction activity, market demand, ability to obtain development permits, capital market conditions, real estate investment and development risks, vacancy rates, partnership development risks, competition, ability to renew leases, real estate liquidity, tenant bankruptcy or default, credit facility limitations, interest rate fluctuations, environmental liabilities, inflation risks, and cybersecurity risks[44](index=44&type=chunk) - The company has no obligation to revise or update any forward-looking statements unless required by law[44](index=44&type=chunk)

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]