Financial Performance - Net income increased by 31% to $1.7 million[6] - Total operating profit decreased by 19% to $2.3 million[6] - Pro rata NOI increased by 10% from $8.5 million to $9.4 million[6] Segment Results - Multifamily pro rata NOI increased by 3% to $4.63 million[10], with pro rata revenue increasing to $8.305 million[11] - Industrial & Commercial NOI decreased by $20,000 to $1.139 million[14], with pro rata revenue decreasing to $1.347 million[15] - Mining & Royalties pro rata revenue increased by 9% to $3.234 million[20], and NOI increased by 19% to $3.284 million[20] Development Plans - Construction is expected to commence in Q2 2025 on a 200,000 sq ft warehouse in Lakeland, FL and a 182,000 sq ft warehouse in Broward County, FL[6, 25] - "Woven" – Greenville, SC: 214 multifamily units and 14,000 retail sq ft multifamily development, with construction to start in Q2 '25[25] Sum of the Parts Analysis - Total value of income-producing properties is estimated between $509 million and $569 million[26] - Total value of development pipeline and land holdings is estimated between $176.9 million and $204.8 million[33]

[Overview and Financial Highlights](index=1&type=section&id=Overview%20and%20Financial%20Highlights) FRP Holdings saw significant Q1 2025 Net Income and pro rata NOI growth, driven by mining and multifamily, while focusing on new developments [Executive Summary and Analysis](index=1&type=section&id=Executive%20Summary%20and%20Analysis) FRP Holdings reported a 31% Net Income and 10% pro rata NOI increase in Q1 2025, driven by mining and multifamily, focusing on new developments despite headwinds Q1 2025 vs Q1 2024 Performance | Metric | Q1 2025 (in millions) | Q1 2024 (in millions) | Change | | :--- | :--- | :--- | :--- | | Net Income | $1.71 | $1.30 | +31.4% | | EPS | $0.09 | $0.07 | +28.6% | | Pro Rata NOI | $9.36 | $8.53 | +10% | - Key performance drivers for the quarter include increased **mining royalty revenue**, improved occupancy at **The Verge**, and higher **interest income** from lending ventures[3](index=3&type=chunk) - The company warns of temporary headwinds, including a **tenant default** in the Industrial segment and a **glut of new projects** in the Washington, D.C. multifamily market, which may temper future growth[3](index=3&type=chunk)[4](index=4&type=chunk) - The strategic focus for 2025 is on **new developments**, including breaking ground on **two industrial JVs** and starting construction on **two multifamily projects (810 units)**, aiming to **double the industrial segment's size** over five years[5](index=5&type=chunk) [First Quarter Highlights](index=2&type=section&id=First%20Quarter%20Highlights) Q1 2025 saw Net Income up 31% and pro rata NOI up 10%, with Multifamily and Mining Royalty Lands NOI increasing, despite a decline in Industrial and Commercial NOI - **Net Income:** Increased **31%** to **$1.7 million** from **$1.3 million**[8](index=8&type=chunk) - **Pro Rata NOI:** Increased **10%** to **$9.4 million** from **$8.5 million**[8](index=8&type=chunk) - **Multifamily NOI:** Increased **3%**, mainly from improved occupancy at **The Verge**[8](index=8&type=chunk) - **Industrial & Commercial NOI:** Decreased **2%** due to a tenant eviction and write-off[8](index=8&type=chunk) - **Mining Royalty Lands NOI:** Increased **19%**[8](index=8&type=chunk) [Consolidated Financial Performance](index=3&type=section&id=Consolidated%20Financial%20Performance) Q1 2025 consolidated revenues slightly increased, but operating profit declined; improved joint venture results and reduced interest expense led to higher net income [Comparative Results of Operations](index=3&type=section&id=Comparative%20Results%20of%20Operations) Q1 2025 consolidated revenues rose 1.7% to $10.3 million, but operating profit fell 19.3%; Net Income increased 31.4% to $1.71 million, driven by improved JV results and lower interest expense Consolidated Results of Operations (in thousands) | Metric | Q1 2025 | Q1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $10,306 | $10,133 | $173 | 1.7% | | Total Operating Profit | $2,325 | $2,882 | ($557) | -19.3% | | Equity in loss of joint ventures | ($2,031) | ($3,019) | $988 | -32.7% | | Net income attributable to the Company | $1,710 | $1,301 | $409 | 31.4% | - Operating profit decreased by **19%** primarily due to higher **General & Administrative expenses** related to an **executive succession plan** and an **industrial tenant default**[9](index=9&type=chunk) - The improvement in '**Equity in loss of Joint Ventures**' was driven by better results at **The Verge ($409k)**, **Bryant Street ($444k)**, and **BC Realty ($107k)**, attributed to **improved occupancy** and **lower variable rate interest expenses**[11](index=11&type=chunk) - **Interest expense decreased by $216,000** as the company **capitalized $211,000 more in interest** this quarter due to **increased development activity**[9](index=9&type=chunk) [Segment Performance Analysis](index=5&type=section&id=Segment%20Performance%20Analysis) This section analyzes the performance of Multifamily, Industrial and Commercial, Mining Royalty Lands, and Development segments, detailing their contributions and operational changes [Multifamily Segment](index=5&type=section&id=Multifamily%20Segment) Multifamily segment pro rata NOI rose 3.1% to $4.63 million in Q1 2025, driven by improved occupancy at The Verge, with overall portfolio occupancy reaching 94.0% Multifamily Segment Pro Rata Performance (in thousands) | Metric | Q1 2025 | Q1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Lease Revenue | $8,305 | $7,883 | $422 | 5.4% | | Operating Profit before G&A | $1,423 | $1,170 | $253 | 21.6% | | Net Operating Income (NOI) | $4,630 | $4,489 | $141 | 3.1% | Key Property Performance Q1 2025 | Property | Avg. Occupancy | Pro Rata NOI (in thousands) | Renewal Success | | :--- | :--- | :--- | :--- | | Dock 79 | 95.6% | $905 | 65.1% | | Maren | 93.9% | $855 | 52.5% | | Bryant Street | 92.5% | $1,539 | 47.1% | | Verge | 93.5% | $753 | 75.0% | [Consolidated Multifamily (Dock 79 & The Maren)](index=7&type=section&id=Consolidated%20Multifamily%20%28Dock%2079%20%26%20The%20Maren%29) Consolidated multifamily properties Dock 79 and The Maren saw a 17% decrease in operating profit before G&A to $1.21 million, driven by increased operating expenses - Operating profit before G&A for consolidated properties **decreased by $239,000 (17%)** year-over-year, primarily due to **higher operating expenses** and **property taxes**[19](index=19&type=chunk) [Pro Rata Unconsolidated Multifamily](index=7&type=section&id=Pro%20Rata%20Unconsolidated%20Multifamily) Unconsolidated multifamily JVs achieved strong growth, with pro rata revenues up 8% to $5.35 million and operating profit before G&A surging 97% to $751,000 - Pro rata operating profit before G&A for unconsolidated JVs **increased by $370,000 (97%)** year-over-year, driven by improved performance at **The Verge**, **Bryant Street**, and **.408 Jackson**[21](index=21&type=chunk) [Industrial and Commercial Segment](index=9&type=section&id=Industrial%20and%20Commercial%20Segment) Industrial and Commercial segment NOI declined 2% to $1.14 million in Q1 2025, and operating profit before G&A fell 21% due to a tenant default and eviction, reducing occupancy to 85.2% Industrial and Commercial Segment Performance (in thousands) | Metric | Q1 2025 | Q1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Lease Revenue | $1,347 | $1,453 | ($106) | -7.3% | | Operating Profit before G&A | $643 | $812 | ($169) | -20.8% | | Net Operating Income (NOI) | $1,139 | $1,159 | ($20) | -1.7% | - Occupancy for the quarter was **85.2%**, down from **95.6%** in Q1 2024, due to an **eviction of a tenant** for failure to pay rent[23](index=23&type=chunk) [Mining Royalty Lands Segment](index=10&type=section&id=Mining%20Royalty%20Lands%20Segment) Mining Royalty Lands segment showed strong Q1 2025 performance, with revenues up 9% to $3.23 million and NOI up 19% to $3.28 million, despite a 10% decrease in royalty tons Mining Royalty Lands Segment Performance (in thousands) | Metric | Q1 2025 | Q1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Mining Royalty Revenue | $3,234 | $2,963 | $271 | 9.1% | | Operating Profit before G&A | $2,965 | $2,724 | $241 | 8.8% | | Net Operating Income (NOI) | $3,284 | $2,760 | $524 | 19.0% | - **Royalty tons decreased by 10%** compared to the prior year, which had a project-specific spike in demand. However, **royalty revenue per ton increased by 7%** (excluding the prior year's overpayment deduction)[24](index=24&type=chunk) [Development Segment](index=11&type=section&id=Development%20Segment) The Development segment advanced key projects in Q1, securing construction loans for two new industrial JVs, completing a spec warehouse, and progressing residential lot sales - Entered **two new industrial JVs** with **Altman Logistics** for warehouse projects in **Lakeland, FL (200,000 sq-ft)** and **Broward County, FL (182,000 sq-ft)**. Construction is anticipated to start in **Q2 2025**[25](index=25&type=chunk) - **Completed shell construction** on the **Chelsea Road spec warehouse** in Aberdeen, MD, which is now in the **lease-up phase** as of April 1, 2025[25](index=25&type=chunk) - In the Harford County, MD residential lot development, **133 lots have been sold**, and **$19.1 million has been returned** to the company, of which **$4.8 million was booked as profit**[25](index=25&type=chunk) [Financial Statements](index=12&type=section&id=Financial%20Statements) This section presents the company's consolidated balance sheets, detailing assets, liabilities, and equity as of March 31, 2025 [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, FRP Holdings reported total assets of $717.1 million, a decrease from year-end 2024, with total liabilities and equity also slightly decreasing Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net Real Estate Investments | $568,015 | $573,060 | | Cash and Cash Equivalents | $142,932 | $148,620 | | **Total Assets** | **$717,123** | **$728,485** | | Secured Notes Payable | $178,250 | $178,853 | | **Total Liabilities** | **$256,627** | **$259,372** | | **Total Equity** | **$460,496** | **$469,113** | [Non-GAAP Financial Measures](index=14&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP financial measures, specifically Pro Rata Net Operating Income (NOI), to their most directly comparable GAAP measures [Pro Rata Net Operating Income (NOI) Reconciliation](index=14&type=section&id=Pro%20Rata%20Net%20Operating%20Income%20%28NOI%29%20Reconciliation) This section reconciles Q1 2025 GAAP Net Income of $1.63 million to Pro Rata NOI of $9.36 million, a non-GAAP measure used by management to analyze performance trends Pro Rata NOI Reconciliation Q1 2025 (in thousands) | Segment | Pro Rata NOI | | :--- | :--- | | Industrial and Commercial | $1,139 | | Development | $311 | | Multifamily | $4,630 | | Mining Royalties | $3,284 | | **Total Pro Rata NOI** | **$9,364** | Pro Rata NOI Reconciliation Q1 2024 (in thousands) | Segment | Pro Rata NOI | | :--- | :--- | | Industrial and Commercial | $1,159 | | Development | $126 | | Multifamily | $4,489 | | Mining Royalties | $2,760 | | **Total Pro Rata NOI** | **$8,534** | [Other Information](index=15&type=section&id=Other%20Information) This section provides details on the upcoming conference call and important forward-looking statements [Conference Call Information](index=15&type=section&id=Conference%20Call%20Information) A conference call to discuss quarterly results is scheduled for Tuesday, May 13, 2025, at 9:00 a.m. EDT, with access details for live participation and replay - A conference call is scheduled for **Tuesday, May 13, 2025, at 9:00 a.m. (EDT)**. An **audio replay will be available until May 27, 2025**[32](index=32&type=chunk) [Forward-Looking Statements](index=16&type=section&id=Forward-Looking%20Statements) This section includes a standard safe harbor statement, cautioning that forward-looking statements are subject to risks like development, tenant defaults, and interest rate volatility - The report includes a disclaimer that forward-looking statements are subject to **risks and uncertainties** that could cause actual results to differ materially. These include **development risks**, **tenant demand**, **interest rates**, and **competition**[34](index=34&type=chunk)

Core Insights - FRP Holdings, Inc. reported a net income of $1,710,000 or $0.09 per share for Q1 2025, a 31% increase from $1,301,000 or $0.07 per share in Q1 2024 [1][6] - The company experienced a 10% increase in pro rata Net Operating Income (NOI), reaching $9,364,000 compared to $8,534,000 in the same period last year [2][6] - The growth in net income and NOI was primarily driven by increased mining royalty revenue, improved occupancy at The Verge, and higher lending venture interest income [2][6] Financial Performance - Total revenues for Q1 2025 were $10,306,000, up 1.7% from $10,133,000 in Q1 2024 [7] - Lease revenue decreased by 1.4% to $7,072,000 from $7,170,000 year-over-year [5][7] - Mining royalty and rents increased by 9.1% to $3,234,000 from $2,963,000 in the previous year [5][19] Segment Analysis - The Multifamily segment saw a 3% increase in pro rata NOI, primarily due to improved occupancy at The Verge [6][10] - The Industrial and Commercial segment experienced a 2% decrease in NOI due to a tenant default and eviction [6][17] - The Mining Royalty Lands segment reported a 19% increase in NOI, driven by higher revenues despite a 10% decrease in royalty tons [6][19] Future Outlook - The company plans to focus on leasing efforts at Cranberry and Chelsea while investing in new projects, including two multifamily developments expected to add 810 units and an estimated $6 million in NOI upon stabilization [3][22] - FRP Holdings aims to double the size of its industrial segment over the next five years, with plans to deliver three new industrial assets every two years [3][22] - Construction on two new joint ventures with Altman Logistics is anticipated to begin in Q2 2025 [3][20]

Group 1 - FRP Holdings, Inc. will release its first quarter earnings results on May 12, 2025, and a conference call is scheduled for May 13, 2025, at 9:00 a.m. EDT [1] - The company operates in the real estate sector, focusing on leasing and management of commercial properties, mining royalty land, and residential apartment buildings, as well as property acquisition and development [2] Group 2 - The company provides contact information for its Chief Financial Officer, Matthew C. McNulty, for further inquiries [4]

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]

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% year-over-year [16] - The Multifamily segment reported total revenues of $14.1 million and NOI of $7.6 million, with significant contributions from new joint ventures, leading to a substantial increase compared to prior quarters [17][18] Market Data and Key Metrics Changes - The Multifamily projects are facing pressure from new deliveries in the D.C. market, impacting vacancies and revenue growth [19] - The average rental rate of expiring industrial leases was $6.55 triple net, with expectations for new rates to start in the $7 range or higher [30] Company Strategy and Development Direction - The company plans to invest approximately $71 million in equity capital in 2025, focusing on both Industrial and Multifamily developments [35][42] - 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 strong, but 2024 NOI was positively impacted by a one-time payment that is not repeatable [34] - Management is optimistic about the potential for re-tenanting spaces at higher rental rates, despite short-term challenges [106] Other Important Information - The company is experiencing delays in construction due to weather conditions, impacting the timeline for new projects [21] - The company is monitoring construction costs and potential impacts from tariffs on materials like steel and lumber [31] 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 focusing on the Southeast for acquisitions due to easier entitlements compared to Maryland, but will consider opportunities in its home state if they arise [51] Question: Impact of tariffs on construction and goods flow - Tariffs could impact the Multifamily segment more than Industrial, but the company is moving forward with projects in Florida before potential tariffs take effect [56] 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 challenges in backfilling spaces at Cranberry due to multiple tenant expirations, but is optimistic about achieving market rents [102][106] Question: Future Multifamily developments - The company is modifying existing plans to pursue Multifamily developments in D.C., with zoning approvals expected in Q2 2025 [113]

Financial Highlights - Net income attributable to the company decreased by 42% to $17 million in Q4 2024[7] - Net income attributable to the company increased by 20% to $64 million YTD[7] - Pro rata NOI increased by 26% YTD, reaching $38139 million[7, 9] - Total operating profit decreased by 8% to $29 million in Q4 2024[7] - Pro rata NOI increased by 21% to $91 million in Q4 2024[7] Segment Performance - Multifamily pro rata NOI increased by 21% to $4286 million in Q4 2024[11] - Multifamily pro rata NOI increased by 34% to $18177 million YTD[12] - Industrial and Commercial segment NOI increased by 17% to $4547 million YTD[7, 18] - Mining and Royalties segment revenue increased by 19% to $3459 million in Q4 2024[22] - Mining and Royalties segment NOI increased by 23% to $14396 million YTD[22] Development Plans - The company expects to commence construction on a 200000 sq ft warehouse in Lakeland, FL, and a 182000 sq ft warehouse in Broward County, FL, in Q2 2025[7, 26]