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].

Core Viewpoint - The article discusses the journey of wealth accumulation from 1 million to 10 million, emphasizing the importance of investment strategies in real estate and the stock market, while highlighting the challenges and opportunities in each sector [1][2]. Group 1: Investment Strategies - Real estate was once the best investment option due to rapid urbanization and population growth, but the current market presents risks, especially for new investors who may become "back holders" [1][2]. - The stock market is seen as a more reliable long-term investment, with historical annualized returns of 8.4% for U.S. stocks and 6.5% for China's CSI 300 ETF from 2013 to 2024 [1][2]. - A calculation shows that with a 6.5% annual return and an additional investment of 50,000 per year, it would take 29 years to reach 10 million, while an 8% return would shorten this to under 25 years [2]. Group 2: Personal Experience and Insights - The author shares personal investment experiences, focusing on low-cost purchases of leading stocks and ETFs in sectors like consumer goods and healthcare, achieving an annualized return of around 11% [2][3]. - The article emphasizes the cyclical nature of the Chinese stock market, suggesting that strategic buying during downturns can yield significant returns [2][3]. - The author aims to maintain a 10% annualized return to reach the 10 million target in approximately 9 years [2]. Group 3: Real Estate Market Analysis - The current real estate market is described as favorable for investors due to low down payments and high leverage, with some cities offering rental income that exceeds loan interest [3][4]. - The article discusses the potential for significant profits if real estate prices double over ten years, while also addressing the risks of price declines and the lack of forced liquidation policies in mainland banks [3][4]. - Historical examples from the U.S., Japan, and Hong Kong are cited to illustrate that real estate values can recover over time, even after significant downturns [3][4]. Group 4: Financial Products and Leverage - The article suggests that leveraged financial products, such as margin trading and real estate loans, can be advantageous if there are no forced liquidation policies in place [4]. - It highlights the importance of understanding risk and reward dynamics in leveraged investments, suggesting that the absence of forced liquidation can provide a safety net for investors [4].