In this most recent release, we changed the way we value the mining royalty asset stream from an EBITDA multiple to a cap rate valuation, as management believes this methodology more appropriately reflects how these assets should be valued. Any reference to cap rates, asset values, per share values or the estimated value of our assets net of debt and liabilities are for illustrative purposes only as a reflection of how management uses various assets for purposes of informing management decisions and do not ...

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]