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

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

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

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

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|---------------|--------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | FRP Holdings, Inc. | | | | | | | | | | Q3'24 Earnings | | | | | | | | | Presentation | | | | | | | | | | | | | | | | | | | | NOVEMBER 2024 | | | | | ...

Financial Data and Key Metrics Changes - Net income for Q3 2024 increased by 8% to $1.4 million or $0.07 per share compared to $1.3 million or $0.07 per share in the same period last year [5] - Year-to-date net income saw a 94% increase to $4.7 million or $0.25 per share versus $2.4 million or $0.13 per share for the first nine months of last year [5] - Pro rata share of NOI in Q3 was up 39% to $11.3 million, and year-to-date was up 28% to $29 million [6] Business Line Data and Key Metrics Changes - Commercial and Industrial segment revenues and NOI for Q3 totaled $1.5 million and $1.2 million, respectively, an increase of 0.9% and 10.3% over the same period last year [12] - Mining and Royalty Business segment revenues and NOI for Q3 totaled $3.2 million and $5.1 million, respectively, an increase of 3.8% and 79.9% over the same period last year [13] - Multifamily segment revenues and NOI for Q3 were $14.2 million and $8.2 million, respectively, with significant contributions from new joint ventures [15] Market Data and Key Metrics Changes - The Multifamily segment's apartment occupancy was 91.9% and retail space occupancy was 79.4% at quarter-end [14] - Management noted that new deliveries and existing supply in the DC market will continue to pressure vacancies and revenue growth [17] - Industrial and multifamily vacancy rates are slightly up across all markets due to new deliveries over the last two years [25] Company Strategy and Development Direction - The company plans to focus on the permitting, construction, and lease-up of several new industrial projects over the next three to five years, representing over 850,000 square feet of new product [23] - The development strategy remains primarily focused on industrial assets, with multifamily development being monitored for future opportunities [30] - The company expects NOI growth to moderate as more projects stabilize, but continues to anticipate growth both organically and through development [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the impact of recent Federal Reserve interest rate cuts and stabilizing construction costs on development prospects [25] - The company highlighted a healthy industrial development pipeline and the expectation of continued NOI growth, albeit at a moderated rate [29] - Management acknowledged the challenges posed by increased vacancy rates and decelerating rental rate increases in the market [25] Other Important Information - The company updated its valuation methodology for mining royalty assets from an EBITDA multiple to a cap rate valuation [10] - The estimated value of the company's real estate assets, net of debt and liabilities, was reported to be in the range of $34.54 to $39.15 per share [10] Q&A Session Summary - There were no questions from participants during the Q&A session [31]

Revenue Performance - For the three months ended September 30, 2024, total revenues were $10,633,000, a slight increase from $10,591,000 for the same period in 2023, representing a growth of 0.4%[31] - The Industrial and Commercial segment reported revenues of $1,455,000 for the three months ended September 30, 2024, compared to $1,442,000 in the same period of 2023, reflecting a growth of 0.9%[31] - The Mining Royalty Lands segment generated revenues of $3,199,000 for the three months ended September 30, 2024, up from $3,082,000 in 2023, marking a growth of 3.8%[31] - The Multifamily segment reported revenues of $5,682,000 for the three months ended September 30, 2024, slightly up from $5,633,000 in 2023, a growth of 0.9%[31] - The company reported total revenues of $11,814,000 for the nine months ended September 30, 2024, an increase from $11,106,000 in the same period of 2023[70] - Total revenues for the nine months ended September 30, 2024, increased to $6,116,000 from $2,362,000 in the same period of 2023, representing a growth of 158.5%[75] - Pro rata revenues for the multifamily segment increased to $15,173,000, up $4,796,000 or 46.2% compared to $10,377,000 in the same period last year[142] - Total revenues in the Industrial and Commercial segment were $1,455,000, an increase of $13,000 or 1% compared to the same period last year[125] - Total revenues in the Mining Royalty Lands segment were $3,199,000, an increase of $117,000 or 3.8% versus $3,082,000 in the same period last year[128] Profitability - Operating profit before general and administrative expenses for the three months ended September 30, 2024, was $5,372,000, an increase from $4,844,000 in the same period of 2023, representing an increase of 10.9%[31] - Net income attributable to the Company for the three months ended September 30, 2024, was $1,361 million, compared to $1,259 million for the same period in 2023, representing an increase of 8.1%[43] - For the nine months ended September 30, 2024, net income attributable to the Company was $4,706 million, significantly up from $2,422 million in the prior year, marking an increase of 94.3%[43] - Operating profit for the total joint ventures was $1,230,000 for the nine months ended September 30, 2024, compared to $731,000 in the prior year[70] - The total operating loss improved to $(178,000) compared to $(3,394,000) in the prior year, reflecting a significant reduction in losses[75] - Net income for Q3 2024 was $1,361,000, representing an increase of 8.1% from $1,259,000 in the same period last year[112] - Operating profit increased by 6% to $3,083,000, driven by favorable results in Multifamily, Industrial, Commercial, and Mining segments[112] - Operating profit before G&A for the consolidated joint ventures was $4,427,000, an increase of $1,237,000 or 39% compared to the same period last year[140] Expenses and Costs - Total general and administrative expenses for the three months ended September 30, 2024, were $2,289,000, compared to $1,948,000 in 2023, indicating an increase of 17.5%[31] - The total cost of operations for the total joint ventures was $10,584,000 for the nine months ended September 30, 2024, compared to $10,375,000 in the previous year[70] - The company reported a total stock compensation expense of $1,613 million for the nine months ended September 30, 2024, compared to $1,472 million for the same period in 2023, reflecting an increase of 9.6%[47] Capital Expenditures and Investments - Capital expenditures for the three months ended September 30, 2024, totaled $34,571,000, significantly higher than $2,449,000 in the same period of 2023[31] - The Company has $548,000 outstanding under letters of credit related to real estate development obligations as of September 30, 2024[55] - The Company’s investments in joint ventures totaled $157,272 million as of September 30, 2024, with a total loss of $13,460 million reported for the partnerships[62] - The company expects to invest $16 million into existing real estate holdings and joint ventures during the remainder of 2024, with an additional $213 million planned for future projects[162] Financial Position and Liquidity - The Company was in compliance with all debt covenants as of September 30, 2024, ensuring financial stability[41] - As of September 30, 2024, total assets reached $470,027,000, reflecting a diversified investment portfolio across multiple joint ventures[64] - Cash and restricted cash totaled $10,825,000 as of September 30, 2024, providing liquidity for ongoing operations[64] - Outstanding debt at the end of the period was $178,816,000, up from $178,631,000 at the end of the previous period[152] - The company held U.S. Treasury notes valued at $117,933,000, with an unrealized gain of $89,000 recorded[153] Joint Ventures and Development Projects - The company completed ownership adjustments in the Bryant Street Partnerships, increasing its ownership from 61.36% to 72.10% effective in 2024[71] - The Company is focusing on industrial development, with three projects representing 640,000 square feet of new Class A industrial product requiring $116 million in total capex[109] - The company entered into two new joint venture agreements for warehouse development projects in Florida, with construction anticipated to start in Q1 2025[130] - The Company expects to start construction on two industrial joint ventures in Florida in March 2025[109] Market and Segment Insights - The Industrial and Commercial segment includes properties with an average occupancy rate of 90.8% for the office building and 92.1% for industrial buildings[86][89] - The Mining Royalty Lands segment owns approximately 16,650 acres under lease for mining rents or royalties, with potential for future growth in construction markets in Florida and Georgia[91] - The Development segment is focused on converting non-income producing lands into income-generating properties, with significant cash outlays for land acquisition and construction costs[96][97] - Significant "second life" opportunities exist for mining lands, with 4,280 acres in Brooksville, FL, planned for a mixed-use development of 5,800 residential units[95] Stock and Compensation - As of September 30, 2024, the Company had 159,410 stock options outstanding with a weighted average exercise price of $22.33 and a remaining term of 4.0 years[49] - The unrecognized compensation cost of options granted but not yet vested as of September 30, 2024, was $292,000, expected to be recognized over a weighted-average period of 3.8 years[51] - The aggregate intrinsic value of exercisable in-the-money options was $1,252,000 based on the market closing price of $29.86 on September 30, 2024[50]

Financial Performance - Net income for Q3 2024 was $1.361 million, an increase of 8.1% from $1.259 million in Q3 2023[5] - Total revenues for Q3 2024 were $10.633 million, a slight increase of 0.4% from $10.591 million in Q3 2023[5] - Operating profit increased by 6.5% to $3.083 million, up from $2.896 million in the same period last year[5] - Consolidated net income for the first nine months of 2024 was $4,706,000, a 94.3% increase from $2,422,000 in the same period last year[27] - The company reported a net income of $4,773,000 for the nine months ended September 30, 2024, compared to $1,996,000 for the same period in 2023, an increase of approximately 138.5%[48] Revenue Growth - Pro rata NOI for Q3 2024 was $11.272 million, a 39% increase compared to $8.085 million in the same period last year[5] - The Mining and Royalties segment saw an 80% increase in pro rata NOI, driven by a $2 million increase in unrealized revenue[3] - The Multifamily segment's pro rata NOI increased by 23%, primarily due to the lease-up of new projects[3] - Combined pro rata net operating income for the multifamily segment was $13,891,000, up $3,876,000 or 39% compared to $10,015,000 in the same period last year[36] - Pro rata NOI for the first nine months of 2024 was $29,036,000, a 28% increase from $22,687,000 in the same period last year[25] Segment Performance - Total revenues in the Multifamily segment were $4,722,000 for Q3 2024, up 23.4% from $3,825,000 in Q3 2023[17] - Average occupancy for the Multifamily segment was 92.8% in Q3 2024, compared to 81.0% in CY 2023[17] - Industrial and Commercial segment revenues were $1,455,000 for Q3 2024, a 0.9% increase from $1,442,000 in Q3 2023[18] - Net operating income for the Industrial and Commercial segment was $1,209,000, up 10.3% from $1,096,000 in the same quarter last year[18] - Net operating income for the Mining Royalty Lands segment was $5,103,000, up 79.9% compared to $2,837,000 in the same quarter last year[20] Expenses and Liabilities - General and administrative expenses increased by 17.5% to $2.289 million compared to $1.948 million in Q3 2023[5] - Total liabilities decreased slightly to $259,815,000 in 2024 from $261,190,000 in 2023, a reduction of $(1,375,000) or about 0.5%[44] Investments and Assets - Total assets increased to $726,918,000 as of September 30, 2024, compared to $709,166,000 at the end of 2023, reflecting a growth of approximately 2.5%[44] - Net investments in properties rose to $406,293,000 in 2024 from $367,320,000 in 2023, an increase of $38,973,000 or about 10.6%[44] Future Outlook - The company expects to start construction on two industrial joint ventures in Florida in March 2025, representing 640,000 square feet of new Class A industrial product[4] - The company entered into two new joint venture agreements for warehouse projects in Florida, with construction expected to start in Q1 2025[22] - A new speculative warehouse project in Aberdeen, MD, is under construction and expected to be completed in Q4 2024[23] - The company plans to host a conference call on November 6, 2024, to discuss financial results and future outlook[51] Risks and Uncertainties - Investors are cautioned about risks and uncertainties that could affect future results, including market demand and construction activity[53]

Core Insights - FRP Holdings, Inc. reported a 39% increase in pro rata Net Operating Income (NOI) for Q3 2024, driven by strong performance across all segments, particularly in Mining and Royalties, which saw an 80% increase [2][24][19] - The company achieved a net income of $1.4 million for Q3 2024, up from $1.3 million in the same period last year, reflecting a 25.5% increase [1][5] - The Multifamily segment experienced a 39% increase in pro rata NOI, primarily due to the lease-up of new projects [2][24] Financial Performance - Q3 2024 net income was $1,361,000 or $0.07 per share, compared to $1,259,000 or $0.07 per share in Q3 2023 [5][24] - Total revenues for Q3 2024 were $10,633,000, a slight increase of 0.4% from $10,591,000 in Q3 2023 [4][25] - The company reported a 28% increase in pro rata NOI for the first nine months of 2024, totaling $29 million compared to $22.7 million in the same period last year [24][25] Segment Performance - The Multifamily segment's pro rata NOI increased by 23% due to successful lease-ups of several projects, including Bryant St., 408 Jackson, and The Verge [2][24] - The Industrial and Commercial segment saw a 10% increase in NOI, contributing positively to overall performance [2][25] - The Mining and Royalty segment reported a significant increase in NOI, attributed to a one-time minimum royalty payment and unrealized revenue [2][19] Development Projects - The Chelsea Project in Harford County, MD, is nearing completion and is expected to come in under budget [3] - The company is preparing for two new industrial joint ventures in Florida, with construction anticipated to start in March 2025 [3][21] - FRP Holdings is also involved in developing residential lots in Harford County, MD, with significant funding already committed [23] Cost Management - Total operating expenses decreased by 1.9% in Q3 2024 compared to Q3 2023, reflecting effective cost management strategies [4][25] - General and administrative expenses increased by 17.5%, indicating a focus on operational efficiency despite rising costs in certain areas [4][5]

JACKSONVILLE, Fla., Oct. 31, 2024 (GLOBE NEWSWIRE) -- FRP Holdings, Inc. (NASDAQ: FRPH) anticipates issuing its third quarter earnings results on Wednesday, November 6, 2024. The Company will host a conference call on Wednesday, November 6, 2024, at 4:00 p.m. (EST). Analysts, stockholders and other interested parties may access the teleconference live by calling 1-800-343-5172 (passcode 83364) within the United States. International callers may dial 1-203-518-9856 (passcode 83364). Audio replay will be avai ...