• FRP Holdings, Inc. (NASDAQ: FRPH) Announces Results for the Third Quarter and Nine Months Ended September 30, 2024

    ソース: Nasdaq GlobeNewswire / 06 11 2024 13:11:52   America/Chicago

    JACKSONVILLE, Fla., Nov. 06, 2024 (GLOBE NEWSWIRE) -- FRP Holdings, Inc. (NASDAQ-FRPH) –

    FRP Holdings is a real estate asset developer and manager across three differing asset classes including Multifamily, Industrial and Commercial, and Mining and Royalty.

    Third Quarter Highlights

    • 8% increase in Net Income ($1.4 million vs $1.3 million)
    • 39% increase in pro rata NOI ($11.3 million vs $8.1 million)
    • Pro rata NOI includes a one-time, catch-up, minimum royalty payment of $1.9 million that applies to the prior twenty-four months as the tenant failed to meet a production requirement contained in the lease. This revenue was straight-lined over the life of the lease.
    • 23% increase in the Multifamily segment’s pro rata NOI primarily due to lease up of Bryant St., 408 Jackson, and The Verge. This comparison includes the results for these three projects from the same period last year (when these projects were still in our Development segment).
    • 10% increase in Industrial and Commercial segment NOI

    Executive Summary and Analysis – In the third quarter, the Company saw a 39% improvement in pro rata NOI compared to the same period last year, and a 28% increase in pro rata NOI in the first nine months compared to the same period last year. This is consistent with the 26.4% CAGR at which we have grown pro rata NOI over the last three years on a trailing twelve month basis. The growth in pro rata NOI for the third quarter was driven by increases across all segments but particularly in the Mining and Royalties segment (80% increase). The substantial increase in Mining Royalty NOI was due to a $2 million increase in unrealized revenue. This was mostly the result of a one-time, minimum royalty payment at one location which is straight-lined across the life of the lease for GAAP revenue purposes.

    Shell construction is nearly complete for our Chelsea Project in Harford County, MD, which we expect to come in under budget. We are working to get shovel ready the sites of our two industrial JV’s in Florida with an anticipated construction start for both in March of 2025. These three projects represent 640,000 square feet of new, Class A, industrial product requiring $116 million in total capex and are in keeping with our stated strategy of focusing on industrial development. We have underwritten all these projects at an unlevered 6-7% yield.

    Comparative Results of Operations for the Three months ended September 30, 2024 and 2023

    Consolidated Results

    (dollars in thousands) Three Months EndedSeptember 30,
      2024
    		 2023 Change %
    Revenues:        
    Lease revenue $7,434  7,509  $(75) -1.0%
    Mining royalty and rents  3,199  3,082   117  3.8%
    Total revenues  10,633  10,591   42  .4%
             
    Cost of operations:        
    Depreciation, depletion and amortization  2,551  2,816   (265) -9.4%
    Operating expenses  1,860  2,012   (152) -7.6%
    Property taxes  850  919   (69) -7.5%
    General and administrative  2,289  1,948   341  17.5%
    Total cost of operations  7,550  7,695   (145) -1.9%
             
    Total operating profit  3,083  2,896   187  6.5%
             
    Net investment income  2,304  2,700   (396) -14.7%
    Interest expense  (742) (1,116)  374  -33.5%
    Equity in loss of joint ventures  (2,839) (2,913)  74  -2.5%
    (Loss) gain on sale of real estate  —  (1)  1  -100.0%
    Income before income taxes  1,806  1,566   240  15.3%
    Provision for income taxes  427  467   (40) -8.6%
             
    Net income  1,379  1,099   280  25.5%
    Income (loss) attributable to noncontrolling interest  18  (160)  178  -111.3%
    Net income attributable to the Company $1,361  1,259  $102  8.1%
             

    Net income for the third quarter of 2024 was $1,361,000 or $.07 per share versus $1,259,000 or $.07 per share in the same period last year. Pro rata NOI for the third quarter of 2024 was $11,272,000 versus $8,085,000 in the same period last year including the one-time, $1.9 million royalty payment referenced in the third quarter highlights. The third quarter of 2024 was impacted by the following items:

    • Operating profit increased 6% as favorable results in Multifamily, Industrial and Commercial, and Mining were partially offset by higher net Development segment and General and administrative costs.
    • Net investment income decreased $396,000 due to reduced income from our lending ventures ($75,000) and decreased preferred interest ($613,000) due to the conversion of FRP preferred equity to common equity at Bryant Street partially offset by increased earnings on cash equivalents ($292,000).
    • Interest expense decreased $374,000 compared to the same quarter last year as we capitalized $408,000 more interest this quarter, partially offset by higher costs related to the increase in our line of credit with Wells Fargo. More interest was capitalized due to increased in-house and joint venture projects under development this quarter compared to last year.
    • Equity in loss of Joint Ventures improved $74,000 due to improved results of our unconsolidated joint ventures. Results improved at The Verge ($372,000) due to lease up but were lower at .408 Jackson ($104,000) due to an increased real estate tax assessment and BC Realty ($196,000) due to a $302,000 write off of design costs for offices on phase II as we made the decision to repurpose the plan to a higher and better use.

    Multifamily Segment (Consolidated)

    Our Multifamily Segment has two consolidated joint ventures (Dock 79 and The Maren).

      Three months ended September 30    
    (dollars in thousands) 2024 % 2023 % Change %
                  
    Lease revenue $5,682  100.0% 5,633  100.0% 49  .9%
                  
    Depreciation and amortization  1,985  35.0% 2,265  40.1% (280) -12.4%
    Operating expenses  1,573  27.7% 1,773  31.5% (200) -11.3%
    Property taxes  565  9.9% 555  9.9% 10  1.8%
                  
    Cost of operations  4,123  72.6% 4,593  81.5% (470) -10.2%
                  
    Operating profit before G&A $1,559  27.4% 1,040  18.5% 519  49.9%
                        

    Total revenues for our two consolidated joint ventures were $5,682,000, an increase of $49,000 versus $5,633,000 in the same period last year. Total operating profit before G&A for the consolidated joint ventures was $1,559,000, an increase of $519,000, or 50% versus $1,040,000 in the same period last year primarily due to lower depreciation and operating expenses. Depreciation decreased as some of the assets became fully depreciated. Operating expenses decreased due to lower maintenance, utilities, insurance and marketing costs.

    Multifamily Segment (Pro rata unconsolidated)

    Our Multifamily Segment has four unconsolidated joint ventures (Bryant Street, The Verge, Riverside, and .408 Jackson). Riverside was moved from the Development segment to the Multifamily segment in 2022, Bryant Street and .408 Jackson moved as of the beginning of 2024 and The Verge moved effective July 1, 2024, each upon reaching lease up stabilization.

      Three months ended September 30    
    (dollars in thousands) 2024 % 2023 % Change %
                  
    Lease revenue $5,119  100.0% 4,103  100.0% 1,016  24.8%
                  
    Depreciation and amortization  2,228  43.5% 1,813  44.2% 415  22.9%
    Operating expenses  1,895  37.0% 1,652  40.3% 243  14.7%
    Property taxes  467  9.1% 487  11.9% (20) -4.1%
                  
    Cost of operations  4,590  89.7% 3,952  96.3% 638  16.1%
                  
    Operating profit before G&A $529  10.3% 151  3.7% 378  250.3%
                        

    For our four unconsolidated joint ventures, pro rata revenues were $5,119,000, an increase of $1,016,000 or 25% compared to $4,103,000 in the same period last year. Pro rata operating profit before G&A was $529,000, an increase of $378,000 or 250% versus $151,000 in the same period last year.

    Multifamily Segment (Pro rata consolidated and pro rata unconsolidated)

    For ease of comparison all the figures in the tables below include the results for Bryant Street, .408 Jackson, and The Verge from the same period last year (when these projects were still in our Development segment).

      Three months ended September 30    
    (dollars in thousands) 2024 % 2023 % Change %
                  
    Lease revenue $8,215  100.0% 7,171  100.0% 1,044  14.6%
                  
    Depreciation and amortization  3,316  40.4% 3,049  42.5% 267  8.8%
    Operating expenses  2,749  33.5% 2,622  36.6% 127  4.8%
    Property taxes  774  9.4% 788  11.0% (14) -1.8%
                  
    Cost of operations  6,839  83.3% 6,459  90.1% 380  5.9%
                  
    Operating profit before G&A $1,376  16.7% 712  9.9% 664  93.3%
                  
    Depreciation and amortization  3,316    3,049    267   
    Unnrealized rents & other  30    64    (34)  
    Net operating income $4,722  57.5% 3,825  53.3% 897  23.5%
                        

    The combined consolidated and unconsolidated pro rata net operating income this quarter for this segment was $4,722,000, up $897,000 or 23% compared to $3,825,000 in the same quarter last year. Most of this increase was from the lease up of Bryant Street, .408 Jackson, and The Verge. These three projects contributed $2,542,000 of pro rata NOI to this segment compared to $1,787,000 in the Development segment in the same quarter last year, an increase of $755,000. Same store NOI increased $142,000 or 7%,

    Apartment BuildingUnits Pro rata NOI
    Q3 2024    		Pro rata NOI
    Q3 2023    		Avg.
    Occupancy
    Q3 2024    		Avg.
    Occupancy
    CY 2023    		Renewal
    Success
    Rate
    Q3 2024    		Renewal
    % increase
    Q3 2024
             
    Dock 79 Anacostia DC305 $964,000$952,00094.0%94.4%71.4%2.9%
    Maren Anacostia DC264 $973,000$855,00094.9%95.6%50.7%2.3%
    Riverside Greenville200 $243,000$231,00094.0%94.5%56.0%2.7%
    Bryant Street DC487 $1,537,000$1,210,00091.5%92.9%56.7%2.0%
    .408 Jackson Greenville227 $362,000$284,00094.5%59.9%52.9%6.1%
    Verge Anacostia DC344 $643,000$293,00090.1%47.3%63.6%3.9%
    Multifamily Segment1,483 $4,722,000$3,825,00092.8%81.0%  
             

    Industrial and Commercial Segment

      Three months ended September 30    
    (dollars in thousands) 2024 % 2023 % Change %
                 
    Lease revenue $1,455  100.0%  1,442  100.0%  13  0.9%
                 
    Depreciation and amortization  360  24.7%  369  25.6%  (9) (2.4%)
    Operating expenses  185  12.7%  173  12.0%  12  6.9%
    Property taxes  68  4.7%  62  4.3%  6  9.7%
                 
    Cost of operations  613  42.1%  604  41.9%  9  1.5%
                 
    Operating profit before G&A $842  57.9%  838  58.1%  4  0.5%
                 
    Depreciation and amortization  360     369     (9)  
    Unrealized revenues  7     (111)    118   
    Net operating income $1,209  83.1% $1,096  76.0% $113  10.3%
                          

    Total revenues in this segment were $1,455,000, up $13,000 or 1%, over the same period last year. Operating profit before G&A was $842,000, up $4,000 or 0.5% over the same quarter last year. We now have nine buildings in service at three different locations totaling 515,077 square feet of industrial and 33,708 square feet of office. These assets were 95.6% leased and occupied during the entire quarter. Net operating income in this segment was $1,209,000, up $113,000 or 10% compared to the same quarter last year primarily due to more unrealized rental revenue in the prior year due to rent abatements that expired in 2023.

    Mining Royalty Lands Segment Results

      Three months ended September 30    
    (dollars in thousands) 2024 % 2023 % Change %
                 
    Mining royalty and rent revenue $3,199  100.0%  3,082  100.0%  117  3.8%
                 
    Depreciation, depletion and amortization  163  5.1%  138  4.4%  25  18.1%
    Operating expenses  20  0.6%  18  0.6%  2  11.1 
    Property taxes  70  2.2%  181  5.9%  (111) -61.3%
                 
    Cost of operations  253  7.9%  337  10.9%  (84) -24.9%
                 
    Operating profit before G&A $2,946  92.1%  2,745  89.1%  201  7.3%
                 
    Depreciation and amortization  163     138     25   
    Unrealized revenues  1,994     (46)    2,040   
    Net operating income $5,103  159.5% $2,837  92.1% $2,266  79.9%
                          

    Total revenues in this segment were $3,199,000, an increase of $117,000 or 3.8% versus $3,082,000 in the same period last year. Royalty tons were down 3%. Total operating profit before G&A in this segment was $2,946,000, an increase of $201,000 versus $2,745,000 in the same period last year due to higher revenues and lower property taxes. Net Operating Income this quarter for this segment was $5,103,000, up $2,266,000 or 80% compared to the same quarter last year mostly due to a $2,040,000 increase in unrealized revenues. This was mostly the result of a one-time, minimum royalty payment at one location which is straight-lined across the life of the lease for GAAP revenue purposes.

    Development Segment Results

      Three months ended September 30  
    (dollars in thousands) 2024 2023 Change
            
    Lease revenue $297  434  (137)
            
    Depreciation, depletion and amortization  43  44  (1)
    Operating expenses  82  48  34 
    Property taxes  147  121  26 
            
    Cost of operations  272  213  59 
            
    Operating profit before G&A $25  221  (196)
               

    With respect to ongoing Development Segment projects:

    • We entered into two new joint venture agreements in early 2024 with BBX Logistics. The first joint venture is a 200,000 square-foot warehouse development project in Lakeland, FL, and the second joint venture is a 182,000 square-foot warehouse redevelopment project in Broward County, FL. We anticipate construction to start on both projects in the first quarter of 2025.
    • Last summer we broke ground on a new speculative warehouse project in Aberdeen, MD on Chelsea Road. Vertical construction is underway. This Class A, 258,000 square foot building is due to be complete in the 4th quarter of 2024.
    • We are the principal capital source to develop 344 residential lots on 110 acres in Harford County, MD. We have funded $25.5 million of our $31.1 million total commitment. A national homebuilder is under contract to purchase all 222 townhome lots and 122 single family lots. At quarter-end, 79 lots have been sold and $12.9 million of preferred interest and principal has been returned to the company of which $3.6 million was booked as profit to the Company.

    Nine Month Highlights

    • 94% increase in Net Income ($4.7 million vs $2.4 million)
    • 28% increase in pro rata NOI ($29.0 million vs $22.7 million), including the one-time, $1.9 million minimum royalty payment referenced previously
    • 39% increase in the Multifamily segment’s pro rata NOI primarily due to lease up of Bryant St., 408 Jackson, and The Verge. This comparison includes the results for these three projects from the same period last year (when these projects were still in our Development segment).
    • 11% increase in Industrial and Commercial revenue and 30% increase in that segment’s NOI

    Comparative Results of Operations for the Nine months ended September 30, 2024 and 2023

    Consolidated Results

    (dollars in thousands) Nine Months EndedSeptember 30,
      2024
    		 2023
    		 Change %
    Revenues:        
    Lease revenue $21,850   21,773  $77  .4%
    Mining royalty and rents  9,393   9,628   (235) -2.4%
    Total revenues  31,243   31,401   (158) -.5%
             
    Cost of operations:        
    Depreciation/depletion/amortization  7,629   8,415   (786) -9.3%
    Operating expenses  5,429   5,574   (145) -2.6%
    Property taxes  2,517   2,745   (228) -8.3%
    General and administrative  6,883   6,150   733  11.9%
    Total cost of operations  22,458   22,884   (426) -1.9%
             
    Total operating profit  8,785   8,517   268  3.1%
             
    Net investment income  8,795   8,207   588  7.2%
    Interest expense  (2,482)  (3,251)  769  -23.7%
    Equity in loss of joint ventures  (8,582)  (10,585)  2,003  -18.9%
    Gain on sale of real estate  —   7   (7) -100.0%
    Income before income taxes  6,516   2,895   3,621  125.1%
    Provision for income taxes  1,743   898   845  94.1%
             
    Net income  4,773   1,997   2,776  139.0%
    Income (loss) attributable to noncontrolling interest  67   (425)  492  -115.8%
    Net income attributable to the Company $4,706  $2,422  $2,284  94.3%
             

    Net income for the first nine months of 2024 was $4,706,000 or $.25 per share versus $2,422,000 or $.13 per share in the same period last year. Pro rata NOI for the first nine months of 2024 was $29,036,000 versus $22,687,000 in the same period last year. The first nine months of 2024 were impacted by the following items:

    • Operating profit increased 3.1% as favorable results in Multifamily and Industrial and Commercial were mostly offset by lower Mining profits and higher net Development and General and administrative costs.
    • Pro rata NOI includes a one-time, catch-up, minimum royalty payment of $1,853,000 that applies to the prior twenty-four months as the tenant failed to meet a production requirement contained in the lease. This revenue was straight-lined over the life of the lease.
    • Net investment income increased $588,000 due to increased earnings on cash equivalents ($1,252,000) and increased income from our lending ventures ($1,155,000), partially offset by decreased preferred interest ($1,819,000) due to the conversion of FRP preferred equity to common equity at Bryant Street.
    • Interest expense decreased $769,000 compared to the same period last year as we capitalized $869,000 more interest, partially offset by increased costs related to the increase in our line of credit with Wells Fargo. More interest was capitalized due to increased in-house and joint venture projects under development this quarter compared to last year.
    • Equity in loss of Joint Ventures improved $2,003,000 due to improved results at our unconsolidated joint ventures. Results improved at The Verge ($1,959,000) and .408 Jackson ($169,000).

    Multifamily Segment (Consolidated)

      Nine Months Ended September 30,    
    (dollars in thousands) 2024 % 2023 % Change %
                  
    Lease revenue $16,592  100.0% 16,454  100.0% 138  .8%
                  
    Depreciation and amortization  5,947  35.9% 6,797  41.3% (850) -12.5%
    Operating expenses  4,553  27.4% 4,818  29.3% (265) -5.5%
    Property taxes  1,665  10.0% 1,649  10.0% 16  1.0%
                  
    Cost of operations  12,165  73.3% 13,264  80.6% (1,099) -8.3%
                  
    Operating profit before G&A $4,427  26.7% 3,190  19.4% 1,237  38.8%
                        

    Total revenues for our two consolidated joint ventures were $16,592,000, an increase of $138,000 versus $16,454,000 in the same period last year. Total operating profit before G&A for the consolidated joint ventures was $4,427,000, an increase of $1,237,000, or 39% versus $3,190,000 in the same period last year primarily due to lower depreciation and operating expense. Depreciation decreased as some of the assets became fully depreciated. Operating expenses decreased due to lower maintenance, utilities, insurance and marketing costs.

    Multifamily Segment (Pro rata unconsolidated)

      Nine Months Ended September 30,     
    (dollars in thousands) 2024 % 2023 % Change %
                  
    Lease revenue $15,173  100.0% 10,377  100.0% 4,796  46.2%
                  
    Depreciation and amortization  6,747  44.5% 5,854  56.4% 893  15.3%
    Operating expenses  5,358  35.3% 4,667  45.0% 691  14.8%
    Property taxes  1,665  11.0% 1,292  12.5% 373  28.9%
                  
    Cost of operations  13,770  90.8% 11,813  113.8% 1,957  16.6%
                  
    Operating profit $1,403  9.2% (1,436) (13.8%) 2,839   
                  

    For our four unconsolidated joint ventures, pro rata revenues were $15,173,000, an increase of $4,796,000 or 46% compared to $10,377,000 in the same period last year. Pro rata operating profit before G&A was $1,403,000, an increase of $2,839,000 versus a loss of $1,436,000 in the same period last year.

    Multifamily Segment (Pro rata consolidated and pro rata unconsolidated)

    For ease of comparison all the figures in the tables below include the results for Bryant Street, .408 Jackson, and The Verge from prior periods (when these projects were still in our Development segment).

      Nine Months Ended September 30,    
    (dollars in thousands) 2024 % 2023 % Change %
                  
    Lease revenue $24,214  100.0% 19,343  100.0% 4,871  25.2%
                  
    Depreciation and amortization  10,006  41.3% 9,565  49.4% 441  4.6%
    Operating expenses  7,844  32.4% 7,324  37.9% 520  7.1%
    Property taxes  2,570  10.6% 2,188  11.3% 382  17.5%
                  
    Cost of operations  20,420  84.3% 19,077  98.6% 1,343  7.0%
                  
    Operating profit before G&A $3,794  15.7% 266  1.4% 3,528  1326.3%
                  
    Depreciation and amortization  10,006    9,565    441   
    Unnrealized rents & other  91    184    (93)  
    Net operating income $13,891  57.4% 10,015  51.8% 3,876  38.7%
                        

    The combined consolidated and unconsolidated pro rata net operating income this quarter for this segment was $13,891,000, up $3,876,000 or 39% compared to $10,015,000 in the same period last year. Most of this increase was from the lease up of Bryant Street, .408 Jackson, and The Verge. These three projects contributed $7,547,000 of pro rata NOI to this segment compared to $3,803,000 in the Development segment in the same period last year, an increase of $3,744,000. Same store NOI increased $132,000 or 2%.

    Apartment BuildingUnits Pro rata NOI
    YTD 2024    		Pro rata NOI
    YTD 2023    		Avg.
    Occupancy
    YTD 2024    		Avg.
    Occupancy
    CY 2023    		Renewal
    Success
    Rate
    YTD 2024    		Renewal
    % increase
    YTD 2024
             
    Dock 79 Anacostia DC305 $2,842,000$2,825,00094.1%94.4%68.3%3.2%
    Maren Anacostia DC264 $2,820,000$2,711,00094.5%95.6%56.8%2.2%
    Riverside Greenville200 $682,000$676,00093.6%94.5%57.5%3.1%
    Bryant Street DC487 $4,588,000$3,595,00091.9%92.9%57.5%2.8%
    .408 Jackson Greenville227 $1,000,000$350,00094.6%59.9%53.3%5.0%
    Verge Anacostia DC344 $1,959,000-$142,00089.7%47.3%67.4 %1.8%
    Multifamily Segment1,483 $13,891,000$10,015,00092.7%   
             

    Industrial and Commercial Segment

      Nine Months Ended September 30,    
    (dollars in thousands) 2024 % 2023 % Change %
                 
    Lease revenue $4,353  100.0%  3,932  100.0%  421  10.7%
                 
    Depreciation and amortization  1,083  24.8%  1,006  25.6%  77  7.7%
    Operating expenses  591  13.6%  490  12.5%  101  20.6%
    Property taxes  195  4.5%  185  4.7%  10  5.4%
                 
    Cost of operations  1,869  42.9%  1,681  42.8%  188  11.2%
                 
    Operating profit before G&A $2,484  57.1%  2,251  57.2%  233  10.4%
                 
    Depreciation and amortization  1,083     1,006     77   
    Unrealized revenues  (12)    (531)    519   
    Net operating income $3,555  81.7% $2,726  69.3% $829  30.4%
                          

    Total revenues in this segment were $4,353,000, up $421,000 or 11%, over the same period last year. Operating profit before G&A was $2,484,000, up $233,000 or 10% from $2,251,000 in the same quarter last year. Revenues and operating profit are up because of full occupancy at 1841 62nd Street (which had only $11,000 of revenue in the first quarter last year) and the addition of 1941 62nd Street to this segment in March 2023. We were 95.6% leased and occupied during the entire period. Net operating income in this segment was $3,555,000, up $829,000 or 30% compared to the same period last year partially due to $519,000 more unrealized rental revenue in the prior year due to rent abatements that expired in 2023.

    Mining Royalty Lands Segment Results

      Nine Months Ended September 30,    
    (dollars in thousands) 2024 % 2023 % Change %
                 
    Mining royalty and rent revenue $9,393  100.0%  9,628  100.0%  (235) -2.4%
                 
    Depreciation, depletion and amortization  471  5.0%  472  4.9%  (1) -0.2%
    Operating expenses  53  0.6%  51  0.5%  2  3.9 
    Property taxes  214  2.3%  324  3.4%  (110) -34.0%
                 
    Cost of operations  738  7.9%  847  8.8%  (109) -12.9%
                 
    Operating profit before G&A $8,655  92.1%  8,781  91.2%  (126) -1.4%
                 
    Depreciation and amortization  471     472     (1)  
    Unrealized revenues  1,765     (143)    1,908   
    Net operating income $10,891  115.9% $9,110  94.6% $1,781  19.5%
                          

    Total revenues in this segment were $9,393,000, a decrease of $235,000 or 2% versus $9,628,000 in the same period last year. Royalty revenues were impacted by the deduction of royalties to resolve an $842,000 overpayment which we referenced previously. Through the first three quarters of this year, the tenant has withheld $619,000 in royalties otherwise due to the Company with the remainder ($223,000) withheld in the fourth quarter of 2023. There are no further amounts to be withheld moving forward. Royalty tons were down 8%. Total operating profit before G&A in this segment was $8,655,000, a decrease of $126,000 versus $8,781,000 in the same period last year. Net operating income in this segment was $10,891,000, up $1,781,000 or 20% compared to the same period last year mostly due to a $1,908,000 increase in unrealized revenues (see discussion in the Mining segment's quarterly analysis).

    Development Segment Results

      Nine Months Ended September 30,  
    (dollars in thousands) 2024 2023 Change
            
    Lease revenue $905  1,387  (482)
            
    Depreciation, depletion and amortization  128  140  (12)
    Operating expenses  232  215  17 
    Property taxes  443  587  (144)
            
    Cost of operations  803  942  (139)
            
    Operating profit before G&A $102  445  (343)


    FRP HOLDINGS, INC. AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Unaudited) (In thousands, except share data)
     
    Assets: September 30
    2024    		 December 31
    2023
    Real estate investments at cost:     
    Land $168,958  141,602 
    Buildings and improvements  283,104  282,631 
    Projects under construction  29,414  10,845 
    Total investments in properties  481,476  435,078 
    Less accumulated depreciation and depletion  75,183  67,758 
    Net investments in properties  406,293  367,320 
          
    Real estate held for investment, at cost  11,290  10,662 
    Investments in joint ventures  157,272  166,066 
    Net real estate investments  574,855  544,048 
          
    Cash and cash equivalents  144,681  157,555 
    Cash held in escrow  981  860 
    Accounts receivable, net  1,826  1,046 
    Federal and state income taxes receivable  —  337 
    Unrealized rents  1,395  1,640 
    Deferred costs  2,569  3,091 
    Other assets  611  589 
    Total assets $726,918  709,166 
          
    Liabilities:     
    Secured notes payable $178,816  178,705 
    Accounts payable and accrued liabilities  6,060  8,333 
    Other liabilities  1,487  1,487 
    Federal and state income taxes payable  452  — 
    Deferred revenue  2,392  925 
    Deferred income taxes  68,356  69,456 
    Deferred compensation  1,451  1,409 
    Tenant security deposits  801  875 
    Total liabilities  259,815  261,190 
          
    Commitments and contingencies  —  — 
          
    Equity:     
    Common stock, $.10 par value 25,000,000 shares authorized, 19,030,474 and 18,968,448 shares issued and outstanding, respectively  1,903  1,897 
    Capital in excess of par value  68,313  66,706 
    Retained earnings  350,588  345,882 
    Accumulated other comprehensive income, net  80  35 
    Total shareholders’ equity  420,884  414,520 
    Noncontrolling interests  46,219  33,456 
    Total equity  467,103  447,976 
    Total liabilities and equity $726,918  709,166 
            

    Non-GAAP Financial Measures.

    To supplement the financial results presented in accordance with GAAP, FRP presents certain non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. We believe these non-GAAP measures provide useful information to our Board of Directors, management and investors regarding certain trends relating to our financial condition and results of operations. Our management uses these non-GAAP measures to compare our performance to that of prior periods for trend analyses, purposes of determining management incentive compensation and budgeting, forecasting and planning purposes. We provide Pro rata net operating income (NOI) because we believe it assists investors and analysts in estimating our economic interest in our consolidated and unconsolidated partnerships, when read in conjunction with our reported results under GAAP. This measure is not, and should not be viewed as, a substitute for GAAP financial measures. For ease of comparison all the figures in the tables below include the results for Bryant Street, .408 Jackson, and The Verge in the Multifamily segment for all periods shown.

    Pro rata Net Operating Income Reconciliation              
    Nine months ended 09/30/24 (in thousands)              
      Industrial and
    Commercial
    Segment    		 Development
    Segment    		 Multifamily
    Segment    		 Mining
    Royalties
    Segment    		 Unallocated
    Corporate
    Expenses    		 FRP
    Holdings
    Totals
                   
    Net income (loss) $1,222  (2,498) (3,951) 5,884  4,116  4,773 
    Income tax allocation  376  (767) (1,224) 1,808  1,550  1,743 
                   
    Income (loss) before income taxes  1,598  (3,265) (5,175) 7,692  5,666  6,516 
                   
    Less:              
    Unrealized rents  12  —  —  —  —  12 
    Interest income   2,995       5,800  8,795 
    Plus:              
    Unrealized rents  —  —  —  1,765  —  1,765 
    Professional fees  —  —  15  —  —  15 
    Equity in loss of joint ventures  —  2,081  6,466  35  —  8,582 
    Interest expense  —  —  2,348  —  134  2,482 
    Depreciation/amortization  1,083  128  5,947  471  —  7,629 
    General and administrative  886  4,281  788  928  —  6,883 
                  — 
    Net operating income (loss)  3,555  230  10,389  10,891  —  25,065 
                   
    NOI of noncontrolling interest  —  —  (4,727) —  —  (4,727)
    Pro rata NOI from unconsolidated joint ventures  —  469  8,229  —  —  8,698 
                   
    Pro rata net operating income $3,555  699  13,891  10,891  —  29,036 


    Pro rata Net Operating Income Reconciliation              
    Nine months ended 09/30/23 (in thousands)              
                   
      Industrial and
    Commercial
    Segment    		 Development
    Segment    		 Multifamily
    Segment    		 MiningRoyalties
    Segment    		 Unallocated
    Corporate
    Expenses    		 FRP
    Holdings
    Totals
                   
    Net income (loss) $892  (7,192) (816) 5,842  3,270  1,996 
    Income tax allocation  331  (2,667) (145) 2,168  1,212  899 
                   
    Income (loss) before income taxes  1,223  (9,859) (961) 8,010  4,482  2,895 
                   
    Less:              
    Unrealized rents  531  —  —  143  —  674 
    Gain on sale of real estate  —  —  —  10  —  10 
    Interest income  —  3,692  —  —  4,515  8,207 
    Plus:              
    Unrealized rents  —  —  117  —  —  117 
    Loss on sale of real estate  2  —  1  —  —  3 
    Professional fees  —  —  59  —  —  59 
    Equity in loss of joint ventures  —  10,256  298  31  —  10,585 
    Interest Expense  —  —  3,218  —  33  3,251 
    Depreciation/amortization  1,006  140  6,797  472  —  8,415 
    General and administrative  1,026  3,740  634  750  —  6,150 
                   
    Net operating income (loss)  2,726  585  10,163  9,110  —  22,584 
                   
    NOI of noncontrolling interest  —  —  (4,627) —  —  (4,627)
    Pro rata NOI from unconsolidated joint ventures  —  251  4,479  —  —  4,730 
                   
    Pro rata net operating income $2,726  836  10,015  9,110  —  22,687 
                        

    Conference Call

    The Company will host a conference call on Wednesday, November 6, 2024 at 4:00 p.m. (EDT). 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 available until November 20, 2024 by dialing 1-800-753-5207 within the United States. International callers may dial 1-402-220-2156. No passcode needed. An audio replay will also be available on the Company’s investor relations page (https://www.frpdev.com/investor-relations/) following the call.

    Investors are cautioned that any statements in this press release which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These include, but are not limited to: the possibility that we may be unable to find appropriate investment opportunities; levels of construction activity in the markets served by our mining properties; demand for flexible warehouse/office facilities in the MidAtlantic and Florida; multifamily demand in Washington D.C. and Greenville, South Carolina; our ability to obtain zoning and entitlements necessary for property development; the impact of lending and capital market conditions on our liquidity; our ability to finance projects or repay our debt; general real estate investment and development risks; vacancies in our properties; risks associated with developing and managing properties in partnership with others; competition; our ability to renew leases or re-lease spaces as leases expire; illiquidity of real estate investments; bankruptcy or defaults of tenants; the impact of restrictions imposed by our credit facility; the level and volatility of interest rates; environmental liabilities; inflation risks; cybersecurity risks; as well as other risks listed from time to time in our SEC filings; including but not limited to; our annual and quarterly reports. We have no obligation to revise or update any forward-looking statements, other than as imposed by law, as a result of future events or new information. Readers are cautioned not to place undue reliance on such forward-looking statements.

    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, development and construction primarily for apartment, retail, warehouse, and office, (iv) leasing and management of residential apartment buildings.

    Contact:John D. Baker III
    		 
     Chief Executive Officer(904) 858-9100

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