FRP Holdings, Inc. Reports Fiscal 2025 Second Quarter Results

Rhea-AI Summary

FRP Holdings (NASDAQ:FRPH) reported its Q2 2025 financial results, showing mixed performance across its business segments. Net income decreased 72% to $0.6 million compared to $2.0 million in Q2 2024, primarily due to legal expenses for potential investments and lower net interest income. The company saw a 5% increase in pro rata NOI to $9.7 million.

Key developments include a new $50 million credit facility with Wells Fargo and a strategic joint venture with SREP to develop 377,892 square feet of warehouse space in Lake County, Florida. The company's multifamily segment showed 1% NOI growth, while the industrial segment experienced a 15% NOI decline. Mining royalty lands performed strongly with a 21% NOI increase.

FRP remains focused on expansion, particularly in its industrial segment, with plans to double the size of its industrial portfolio by 2030 through delivering three new industrial assets every two years.

Positive

• 5% increase in pro rata NOI to $9.7 million
• 21% increase in Mining Royalty Lands segment NOI
• Secured new $50 million five-year revolving credit facility
• Strategic expansion with 377,892 sq ft warehouse development project in Florida
• Clear growth strategy to double industrial segment by 2030
• Improved occupancy rates in multifamily segment (94.1% vs 93.0%)

Negative

• 72% decrease in Net Income to $0.6 million
• 15% decrease in Industrial segment NOI due to tenant eviction and lease expirations
• Higher operating expenses with 51.6% increase year-over-year
• 36.7% decline in net investment income
• 50.3% occupancy rate in industrial properties including new Chelsea warehouse

Insights

Financial Analyst

FRP reported mixed Q2 results with 72% lower net income but improving NOI across key segments, highlighting strategic investment phase for future growth.

FRP Holdings delivered mixed financial results for Q2 2025, with net income declining 72% to $0.6 million ($0.03 per share) compared to $2.0 million ($0.11 per share) in Q2 2024. This significant decrease was primarily attributed to increased legal expenses for due diligence on potential investments and lower interest income.

Despite the earnings decline, pro rata NOI increased 5% to $9.7 million, showing operational strength across most segments. The company's three core business segments showed mixed performance:

• Multifamily segment: NOI increased 1% to $4.74 million, with improved occupancy at The Verge and Dock 79 properties. Average occupancy across the portfolio reached 94.1%, up from 93.0%.
• Industrial and Commercial segment: NOI decreased 15% to $1.01 million due to tenant eviction and lease expirations, with occupancy dropping to 50.3% from 95.6% in the prior year (excluding the new Chelsea warehouse).
• Mining Royalty Lands segment: NOI increased substantially by 21% to $3.67 million, showing strong performance.

Management explicitly framed 2025 as an investment year focused on setting the stage for future growth, with several strategic developments:

• Entered a new $50 million five-year revolving credit facility with Wells Fargo
• Formed a joint venture to develop 377,892 square feet of warehouse space in Florida
• Continued construction on two joint venture projects expected to add 384,193 square feet of industrial space by Q2 2026

The company's strategic shift toward industrial development is clearly outlined, with management stating they aim to double the size of their industrial segment by 2030 through a consistent pipeline of new projects. While current financial results reflect this transitional period, the company is positioning itself for long-term growth through strategic capital deployment.

JACKSONVILLE, FL / ACCESS Newswire / August 6, 2025 / FRP Holdings, Inc. (NASDAQ:FRPH), a full-service real estate investment and development company with four distinct business segments including Multifamily, Industrial and Commercial Development, Mining and Royalty Lands, today reported financial results for the quarter ended June 30, 2025.

Second Quarter Highlights and Recent Developments

• 72% decrease in Net Income ($0.6 million vs $2.0 million) due largely to legal expenses related to due diligence for a potential investment the company is evaluating, as well as lower Net Interest Income offset by higher mining royalties and improved results in Equity in Loss of Joint Ventures

• 5% increase in pro rata NOI ($9.7 million vs $9.2 million)

• 1% increase in the Multifamily segment's pro rata NOI primarily due to improved occupancy of The Verge and Dock 79. This comparison includes the results for The Verge from the same period last year (when the Verge was still in our Development segment).

• 15% decrease in Industrial and Commercial segment NOI primarily due to an eviction of one tenant and lease expirations.

• 21% increase in NOI for Mining Royalty Lands segment

• Effective July 21, 2025, the Company entered into a 2025 Amended and Restated Credit Agreement (the "Credit Agreement") with Wells Fargo Bank, N.A. The Credit Agreement modifies the Company's prior Credit Agreement with Wells Fargo dated December 22, 2023. The Credit Agreement establishes a five-year revolving credit facility with a maximum facility amount of $50 million. The interest rate under the Credit Agreement will be 2.25% over the Daily Simple SOFR in effect. A commitment fee of 0.35% per annum is payable quarterly on the unused portion of the commitment.

• On July 23, 2025, subsequent to quarters end, we entered into a joint venture agreement with Strategic Real Estate Partners ("SREP"), a private real estate development firm which specializes in industrial real estate development, to develop 377,892 square feet in two warehouses in Lake County, Florida near Orlando, with options for investment in additional industrial warehouses on adjacent properties in the future.

Executive Summary and Analysis

Results this quarter and for the first six months are consistent with both our expectations as well as what we cautioned investors to expect for the last two quarters. As stated previously, our primary aim for 2025 is to set the stage for future growth. We will accomplish this first by leasing up our current vacancies, but mostly by putting money to work in new projects. We have started construction on both our JVs with Altman Logistics in Lakeland and Broward County, FL which will add 384,193 square feet of class A industrial space to our portfolio. We expect substantial completion on these projects in the second quarter of 2026. Work continues on the entitlements for our industrial pipeline in Maryland in order to be shovel ready in 2026. Finally, as mentioned in our highlights, subsequent to the end of the quarter, the Company entered into a joint venture agreement to develop 377,892 square feet in two warehouses in Lake County, FL. The site is located off the Florida Turnpike, in the City of Minneola, outside of Orlando. The lack of available land in the broader Orlando market has driven industrial users to expand into the Lake County submarket, attracting both institutional owners and users. Notably, there remains a meaningful shortage of shallow bay industrial buildings in the size range of the buildings we are developing for this market. We expect to begin construction on this project this month and FRP will have a 95% interest in this joint venture, with options for future development of just under 1 million SF of industrial product on adjacent property. This agreement supports our shift in focus and investment toward our industrial business segment and the Company remains on track to deliver three new industrial assets every two years with the goal of doubling the size of our industrial segment by 2030.

Comparative Results of Operations for the three months ended June 30, 2025 and 2024

Consolidated Results

(dollars in thousands)		Three Months Ended June 30,
		2025				2024				Change				%
Revenues:
Lease revenue		$	7,241				7,246			$	(5	)			-.1	%
Mining royalty and rents			3,609				3,231				378				11.7	%
Total revenues			10,850				10,477				373				3.6	%
Cost of operations:
Depreciation, depletion and amortization			2,726				2,543				183				7.2	%
Operating expenses			2,580				1,702				878				51.6	%
Property taxes			1,002				860				142				16.5	%
General and administrative			2,885				2,552				333				13.0	%
Total cost of operations			9,193				7,657				1,536				20.1	%
Total operating profit			1,657				2,820				(1,163	)			-41.2	%
Net investment income			2,348				3,708				(1,360	)			-36.7	%
Interest expense			(824	)			(829	)			5				-.6	%
Equity in loss of joint ventures			(2,379	)			(2,724	)			345				-12.7	%
Income before income taxes			802				2,975				(2,173	)			-73.0	%
Provision for income taxes			178				916				(738	)			-80.6	%
Net income			624				2,059				(1,435	)			-69.7	%
Income (loss) attributable to noncontrolling interest			46				15				31				206.7	%
Net income attributable to the Company		$	578				2,044			$	(1,466	)			-71.7	%

Net income for the second quarter of 2025 was $578,000 or $.03 per share versus $2,044,000 or $.11 per share in the same period last year. Pro rata NOI for the second quarter of 2025 was $9,688,000 versus $9,230,000 in the same period last year. The second quarter of 2025 was impacted by the following items:

• Operating profit decreased $1,163,000 primarily as a result of higher Development segment professional fees ($831,000) and higher General and administrative expense ($333,000). Development segment professional fees included $712,000 of legal expenses related to due diligence for a potential investment the company is evaluating along with other expensed acquisition and development costs. General and administrative expense increased primarily because of overlapping compensation as a result of the implementation of our executive succession and transition plan that commenced in June, 2024. Industrial and commercial segment operating profit declined $387,000 due to $211,000 higher depreciation from completion of our new Chelsea warehouse along with lower occupancy due to a tenant default and non-renewing leases. Mining Royalty Land's segment operating profit increased $355,000 primarily due to the prior year including a $277,000 overpayment deduction.

• Net investment income decreased $1,360,000 because of reduced earnings on cash equivalents ($456,000) primarily due to lower interest rates and lower income from our lending ventures ($904,000) primarily due to 27 residential lots sold compared to 54 residential lots sold in the same quarter last year.

• Equity in loss of Joint Ventures improved $345,000 due to improved results of our unconsolidated joint ventures. Results improved at The Verge ($90,000) due to improved occupancy and at Bryant Street ($212,000) and BC Realty ($115,000) both due to higher revenues and lower variable rate interest expense.

Multifamily Segment (Pro rata consolidated and pro rata unconsolidated)

For ease of comparison all the figures in the tables below include the results for The Verge from the same period last year (when this project was still in our Development segment).

		Three months ended June 30
(dollars in thousands)		2025				%				2024				%				Change				%
Lease revenue		$	8,467				100.0	%			8,113				100.0	%			354				4.4	%
Depreciation and amortization			3,386				40.0	%			3,384				41.7	%			2				.1	%
Operating expenses			2,691				31.8	%			2,553				31.5	%			138				5.4	%
Property taxes			1,008				11.9	%			912				11.2	%			96				10.5	%
Cost of operations			7,085				83.7	%			6,849				84.4	%			236				3.4	%
Operating profit before G&A		$	1,382				16.3	%			1,264				15.6	%			118				9.3	%
Depreciation and amortization			3,386								3,384								2
Unrealized rents & other			(31	)							32								(63	)
Net operating income		$	4,737				55.9	%			4,680				57.7	%			57				1.2	%

The combined consolidated and unconsolidated pro rata net operating income this quarter for this segment was $4,737,000, up $57,000 or 1% compared to $4,680,000 in the same quarter last year. Most of this increase was from the improved occupancy of The Verge. This project contributed $733,000 of pro rata NOI to this segment compared to $710,000 in the Development segment in the same quarter last year, an increase of $23,000. Same store NOI increased $34,000 as favorable revenues at Dock 79 were partially offset by lower revenues at the Maren and higher property taxes.

Apartment Building		Units				Pro rata NOI Q2 2025				Pro rata NOI Q2 2024				Avg. Occupancy Q2 2025				Avg. Occupancy Q2 2024				Renewal Success Rate Q2 2025				Renewal % increase Q2 2025
Dock 79 Anacostia DC			305			$	995,000			$	932,000				95.5	%			93.6	%			74.6	%			5.9	%
Maren Anacostia DC			264			$	890,000			$	923,000				93.6	%			94.8	%			55.3	%			3.2	%
Riverside Greenville			200			$	215,000			$	215,000				92.9	%			93.0	%			65.8	%			6.3	%
Bryant Street DC			487			$	1,542,000			$	1,555,000				94.6	%			91.2	%			56.3	%			2.1	%
.408 Jackson Greenville			227			$	362,000			$	345,000				94.3	%			96.2	%			52.2	%			4.7	%
Verge Anacostia DC			344			$	733,000			$	710,000				93.3	%			91.3	%			63.3	%			2.0	%
Multifamily Segment			1,827			$	4,737,000			$	4,680,000				94.1	%			93.0	%

Multifamily Segment (Consolidated - Dock 79 & The Maren)

		Three months ended June 30
(dollars in thousands)		2025				%				2024				%				Change				%
Lease revenue		$	5,567				100.0	%			5,496				100.0	%			71				1.3	%
Depreciation and amortization			1,935				34.8	%			1,981				36.1	%			(46	)			-2.3	%
Operating expenses			1,527				27.4	%			1,519				27.6	%			8				.5	%
Property taxes			648				11.6	%			576				10.5	%			72				12.5	%
Cost of operations			4,110				73.8	%			4,076				74.2	%			34				.8	%
Operating profit before G&A		$	1,457				26.2	%			1,420				25.8	%			37				2.6	%

Total revenues for our two consolidated joint ventures were $5,567,000, an increase of $71,000 versus $5,496,000 in the same period last year. Total operating profit before G&A for the consolidated joint ventures was $1,457,000, an increase of $37,000, or 3% versus $1,420,000 in the same period last year primarily due to lower depreciation.

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 June 30
(dollars in thousands)		2025				%				2024				%				Change				%
Lease revenue		$	5,436				100.0	%			5,118				100.0	%			318				6.2	%
Depreciation and amortization			2,325				42.8	%			2,299				44.9	%			26				1.1	%
Operating expenses			1,886				34.7	%			1,724				33.7	%			162				9.4	%
Property taxes			654				12.0	%			599				11.7	%			55				9.2	%
Cost of operations			4,865				89.5	%			4,622				90.3	%			243				5.3	%
Operating profit before G&A		$	571				10.5	%			496				9.7	%			75				15.1	%

For our four unconsolidated joint ventures, pro rata revenues were $5,436,000, an increase of $318,000 or 6% compared to $5,118,000 in the same period last year. Pro rata operating profit before G&A was $571,000, an increase of $75,000 or 15% versus $496,000 in the same period last year. The increase was due to improved occupancy at The Verge and Bryant Street and higher revenues at .408 Jackson.

Industrial and Commercial Segment

		Three months ended June 30
(dollars in thousands)		2025				%				2024				%				Change				%
Lease revenue		$	1,374				100.0	%			1,445				100.0	%			(71	)			(4.9	%)
Depreciation and amortization			571				41.6	%			360				25.0	%			211				58.6	%
Operating expenses			230				16.7	%			191				13.2	%			39				20.4	%
Property taxes			130				9.5	%			64				4.4	%			66				103.1	%
Cost of operations			931				67.8	%			615				42.6	%			316				51.4	%
Operating profit before G&A		$	443				32.2	%			830				57.4	%			(387	)			(46.6	%)
Depreciation and amortization			571								360								211
Unrealized revenues			(4	)							(3	)							(1	)
Net operating income		$	1,010				73.5	%		$	1,187				82.1	%		$	(177	)			(14.9	%)

Shell construction on our 258,279 square foot spec warehouse project in Aberdeen, MD on Chelsea Road was completed effective April 1, 2025 and is in the lease-up phase. We have ten buildings in service at four different locations totaling 773,356 square feet of industrial and 33,708 square feet of office of which 50.3% was leased and occupied at June 30, 2025. Excluding Chelsea these assets were 74.0% leased and occupied during the quarter compared to 95.6% leased and occupied during the same quarter last year primarily due to an eviction for failure to pay rent by one tenant and lease expirations. Total revenues in this segment were $1,374,000, down $71,000 or 5%, over the same period last year. Operating profit before G&A was $443,000, down $387,000 or 47% over the same quarter last year due to $216,000 of depreciation and $30,000 of operating costs at Chelsea along with the lower occupancy. Net operating income in this segment was $1,010,000, down $177,000 or 15% compared to the same quarter last year.

Mining Royalty Lands Segment Results

		Three months ended June 30
(dollars in thousands)		2025				%				2024				%				Change				%
Mining royalty and rent revenue		$	3,609				100.0	%			3,231				100.0	%			378				11.7	%
Depreciation, depletion and amortization			177				5.0	%			159				4.9	%			18				11.3	%
Operating expenses			16				0.4	%			16				0.5	%			-				-	%
Property taxes			76				2.1	%			71				2.2	%			5				7.0	%
Cost of operations			269				7.5	%			246				7.6	%			23				9.3	%
Operating profit before G&A		$	3,340				92.5	%			2,985				92.4	%			355				11.9	%
Depreciation and amortization			177								159								18
Unrealized revenues			148								(116	)							264
Net operating income		$	3,665				101.6	%		$	3,028				93.7	%		$	637				21.0	%

Total revenues in this segment were $3,609,000, an increase of $378,000 or 12% versus $3,231,000 in the same period last year. Royalty revenues in the prior year were impacted by the deduction of $277,000 of royalties to resolve an overpayment which we referenced previously. Royalty tons were down 3% primarily due to a decrease at one location that experienced a project specific spike in demand in the prior year. Royalty revenue per ton increased 7% over the same period last year excluding the prior year overpayment deduction. Total operating profit before G&A in this segment was $3,340,000, an increase of $355,000 versus $2,985,000 in the same period last year. Net operating income was $3,665,000, up $637,000 or 21% compared to the same quarter last year due to the higher revenues and a $264,000 decrease in unrealized revenues. The unrealized revenue decrease is due to the temporarily higher minimum royalty payments we are currently receiving at one location which are straight-lined across the life of the lease for GAAP revenue purposes.

Development Segment Results

		Three months ended June 30
(dollars in thousands)		2025				2024				Change
Lease revenue		$	300				305				(5	)
Depreciation, depletion and amortization			43				43				-
Operating expenses			807				(24	)			831
Property taxes			148				149				(1	)
Cost of operations			998				168				830
Operating profit before G&A		$	(698	)			137				(835	)

With respect to ongoing Development Segment projects:

• We are the principal capital source to develop 344 residential lots on 110 acres in Harford County, MD. We have funded $27.0 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, 160 lots have been sold and $22.2 million has been returned to the company of which $5.5 million was booked as profit to the Company.

• We entered into two new joint venture agreements in early 2024 with Altman Logistics. The first joint venture is a 201,420 square-foot warehouse development project in Lakeland, FL, and the second joint venture is a two building 183,215 square-foot warehouse redevelopment project in Broward County, FL. We closed on both construction loans in March, 2025 and construction commenced in the second quarter of 2025.

• On May 30, 2025, we secured construction financing for our multifamily joint venture with Woodfield Development, known as Woven. This is our third multifamily project in Greenville, SC. This is an $87.8M project with 214 units and 13,500 square feet of ground floor retail that is eligible to receive South Carolina Textile Rehabilitation Credits upon substantial completion and received Special Source Credits equal to 50% of the real estate taxes for a period of 20 years.

• On June 16, 2025, our BC Realty partnership refinanced our FRP provided floating rate construction loans on our two (2) office buildings with Symetra Life Insurance Company. This is a 10-year, fully amortizing $10.5M permanent loan, at a fixed interest rate of 6.40%.

Six Month Highlights

• 32% decrease in Net Income ($2.3 million vs $3.3 million)

• 7% increase in pro rata NOI ($19.1 million vs $17.8 million)

• 2% increase in the Multifamily segment's pro rata NOI primarily due to lease up of The Verge. This comparison includes the results for this project from the same period last year (when this project was still in our Development segment).

• 6% decrease in Industrial and Commercial revenue and 8% decrease in that segment's NOI

• 20.1% increase in the Mining Royalty Lands' segment's NOI

Comparative Results of Operations for the Six months ended June 30, 2025 and 2024

Consolidated Results

(dollars in thousands)		Six Months Ended June 30,
		2025				2024				Change				%
Revenues:
Lease revenue		$	14,313				14,416			$	(103	)			-.7	%
Mining royalty and rents			6,843				6,194				649				10.5	%
Total revenues			21,156				20,610				546				2.6	%
Cost of operations:
Depreciation/depletion/amortization			5,333				5,078				255				5.0	%
Operating expenses			4,439				3,569				870				24.4	%
Property taxes			1,940				1,667				273				16.4	%
General and administrative			5,462				4,594				868				18.9	%
Total cost of operations			17,174				14,908				2,266				15.2	%
Total operating profit			3,982				5,702				(1,720	)			-30.2	%
Net investment income			4,909				6,491				(1,582	)			-24.4	%
Interest expense			(1,519	)			(1,740	)			221				-12.7	%
Equity in loss of joint ventures			(4,410	)			(5,743	)			1,333				-23.2	%
Income before income taxes			2,962				4,710				(1,748	)			-37.1	%
Provision for income taxes			704				1,316				(612	)			-46.5	%
Net income			2,258				3,394				(1,136	)			-33.5	%
Income (loss) attributable to noncontrolling interest			(30	)			49				(79	)			-161.2	%
Net income attributable to the Company		$	2,288			$	3,345			$	(1,057	)			-31.6	%

Net income for the first six months of 2025 was $2,288,000 or $.12 per share versus $3,345,000 or $.18 per share in the same period last year. Pro rata NOI for the first six months of 2025 was $19,052,000 versus $17,764,000 in the same period last year. The first six months of 2025 were impacted by the following items:

• Operating profit decreased $1,720,000 primarily due to higher Development segment professional fees ($682,000) and higher General and administrative expense ($868,000). Development segment professional fees included $712,000 of legal expenses related to due diligence for a potential investment the company is evaluating. General and administrative expense increased primarily due to overlapping compensation as a result of the implementation of our executive succession and transition plan that commenced in June, 2024. Industrial and commercial segment operating profit declined $556,000 because of a $211,000 increase in depreciation expense from completion of our new Chelsea warehouse, as well as lower occupancy due to a tenant default and non-renewing leases. Mining Royalty Land's segment operating profit increased $596,000 primarily because of the prior year's overpayment deduction of $566,000.

• Net investment income decreased $1,582,000 from reduced earnings on cash equivalents ($904,000) and reduced income from our lending ventures ($678,000) primarily due to fewer residential lot sales.

• Interest expense decreased $221,000 compared to the same period last year as we capitalized $209,000 more interest. 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 $1,333,000 because of improved results at our unconsolidated joint ventures. Results improved at The Verge ($499,000) due to lease up, and also at Bryant Street ($656,000) and BC Realty ($222,000) because of higher revenues and lower variable rate interest expense.

Multifamily Segment (Pro rata consolidated and pro rata unconsolidated)

For ease of comparison all the figures in the tables below include the results for The Verge from prior periods (when this project was still in our Development segment).

		Six months ended June 30
(dollars in thousands)		2025				%				2024				%				Change				%
Lease revenue		$	16,772				100.0	%			15,996				100.0	%			776				4.9	%
Depreciation and amortization			6,673				39.8	%			6,689				41.8	%			(16	)			-.2	%
Operating expenses			5,316				31.7	%			5,072				31.7	%			244				4.8	%
Property taxes			1,978				11.8	%			1,801				11.3	%			177				9.8	%
Cost of operations			13,967				83.3	%			13,562				84.8	%			405				3.0	%
Operating profit before G&A		$	2,805				16.7	%			2,434				15.2	%			371				15.2	%
Depreciation and amortization			6,673								6,689								(16	)
Unrealized rents & other			(111	)							46								(157	)
Net operating income		$	9,367				55.8	%			9,169				57.3	%			198				2.2	%

The combined consolidated and unconsolidated pro rata net operating income this quarter for this segment was $9,367,000, up $198,000 or 2% compared to $9,169,000 in the same period last year. Most of this increase was from the lease up of The Verge which contributed $1,486,000 of pro rata NOI to this segment compared to $1,316,000 in the Development segment in the same period last year, an increase of $170,000. Same store NOI increased $28,000.

Apartment Building		Units				Pro rata NOI YTD 2025				Pro rata NOI YTD 2024				Avg. Occupancy YTD 2025				Avg. Occupancy YTD 2024				Renewal Success Rate YTD 2025				Renewal % increase YTD 2025
Dock 79 Anacostia DC			305			$	1,900,000			$	1,878,000				95.6	%			94.2	%			70.4	%			4.8	%
Maren Anacostia DC			264			$	1,745,000			$	1,847,000				93.7	%			94.3	%			54.0	%			4.9	%
Riverside Greenville			200			$	437,000			$	439,000				92.9	%			93.3	%			56.8	%			5.0	%
Bryant Street DC			487			$	3,081,000			$	3,051,000				93.5	%			92.0	%			51.8	%			2.1	%
.408 Jackson Greenville			227			$	718,000			$	638,000				96.1	%			94.6	%			58.8	%			4.6	%
Verge Anacostia DC			344			$	1,486,000			$	1,316,000				93.4	%			89.5	%			69.1	%			2.8	%
Multifamily Segment			1,827			$	9,367,000			$	9,169,000				94.1	%			92.7	%

Multifamily Segment (Consolidated - Dock 79 and The Maren)

		Six months ended June 30
(dollars in thousands)		2025				%				2024				%				Change				%
Lease revenue		$	10,991				100.0	%			10,910				100.0	%			81				.7	%
Depreciation and amortization			3,930				35.7	%			3,962				36.3	%			(32	)			-.8	%
Operating expenses			3,112				28.3	%			2,980				27.3	%			132				4.4	%
Property taxes			1,283				11.7	%			1,100				10.1	%			183				16.6	%
Cost of operations			8,325				75.7	%			8,042				73.7	%			283				3.5	%
Operating profit before G&A		$	2,666				24.3	%			2,868				26.3	%			(202	)			-7.0	%

Total revenues for our two consolidated joint ventures were $10,991,000, an increase of $81,000 versus $10,910,000 in the same period last year. Total operating profit before G&A for the consolidated joint ventures was $2,666,000, a decrease of $202,000, or 7% versus $2,868,000 in the same period last year primarily due to higher operating expenses ($132,000) and property taxes ($183,000).

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.

		Six months ended June 30
(dollars in thousands)		2025				%				2024				%				Change				%
Lease revenue		$	10,785				100.0	%			10,051				100.0	%			734				7.3	%
Depreciation and amortization			4,518				41.9	%			4,518				45.0	%			-				-	%
Operating expenses			3,666				34.0	%			3,452				34.3	%			214				6.2	%
Property taxes			1,279				11.9	%			1,204				12.0	%			75				6.2	%
Cost of operations			9,463				87.7	%			9,174				91.3	%			289				3.2	%
Operating profit		$	1,322				12.3	%			877				8.7	%			445				50.7	%

For our four unconsolidated joint ventures, pro rata revenues were $10,785,000, an increase of $734,000 or 7% compared to $10,051,000 in the same period last year. Pro rata operating profit before G&A was $1,322,000, an increase of $445,000, or 51% versus $877,000 in the same period last year. The increase was due to lease up at The Verge and higher revenues at Bryant Street and .408 Jackson.

Industrial and Commercial Segment

		Six months ended June 30
(dollars in thousands)		2025				%				2024				%				Change				%
Lease revenue		$	2,721				100.0	%			2,898				100.0	%			(177	)			(6.1	%)
Depreciation and amortization			962				35.4	%			723				24.9	%			239				33.1	%
Operating expenses			463				17.0	%			406				14.0	%			57				14.0	%
Property taxes			210				7.7	%			127				4.4	%			83				65.4	%
Cost of operations			1,635				60.1	%			1,256				43.3	%			379				30.2	%
Operating profit before G&A		$	1,086				39.9	%			1,642				56.7	%			(556	)			(33.9	%)
Depreciation and amortization			962								723								239
Unrealized revenues			101								(19	)							120
Net operating income		$	2,149				79.0	%		$	2,346				81.0	%		$	(197	)			(8.4	%)

Total revenues in this segment were $2,721,000, down $177,000 or 6%, over the same period last year. Operating profit before G&A was $1,086,000, down $556,000 or 34% from $1,642,000 in the same period last year due to $216,000 of depreciation and $30,000 of operating costs at our spec Chelsea warehouse placed in service in April, a write-off of $118,000 unrealized rent receivable and $34,000 deferred leasing commission related to a tenant that defaulted, and the related lower occupancy. Net operating income in this segment was $2,149,000, down $197,000 or 8% compared to the same period last year.

Mining Royalty Lands Segment Results

		Six months ended June 30
(dollars in thousands)		2025				%				2024				%				Change				%
Mining royalty and rent revenue		$	6,843				100.0	%			6,194				100.0	%			649				10.5	%
Depreciation, depletion and amortization			355				5.2	%			308				5.0	%			47				15.3	%
Operating expenses			32				0.5	%			33				0.5	%			(1	)			-3.0
Property taxes			151				2.2	%			144				2.3	%			7				4.9	%
Cost of operations			538				7.9	%			485				7.8	%			53				10.9	%
Operating profit before G&A		$	6,305				92.1	%			5,709				92.2	%			596				10.4	%
Depreciation and amortization			355								308								47
Unrealized revenues			289								(229	)							518
Net operating income		$	6,949				101.5	%		$	5,788				93.4	%		$	1,161				20.1	%

Total revenues in this segment were $6,843,000, an increase of $649,000 or 10% versus $6,194,000 in the same period last year. Royalty revenues in the prior year were impacted by the deduction of royalties to resolve an $842,000 overpayment which we referenced previously. Through the six months of last year, the tenant withheld $566,000 in royalties otherwise due to the Company. Royalty tons were down 7% primarily due to a decrease at one location that had one-time project specific rail shipments in the prior year. The revenue reduction from the decreased volume was more than offset by increased royalties per ton (up 8.5% excluding the prior year payment deduction) along with the overpayment reduction in the prior year. Total operating profit before G&A in this segment was $6,305,000, an increase of $596,000 versus $5,709,000 in the same period last year. Net operating income in this segment was $6,949,000, up $1,161,000 or 20% compared to the same period last year due to higher revenues and a $518,000 increase in unrealized revenues due to temporarily higher minimum royalty payments at one location which are straight-lined across the life of the lease for GAAP revenue purposes.

Development Segment Results

		Six months ended June 30
(dollars in thousands)		2025				2024				Change
Lease revenue		$	601				608				(7	)
Depreciation, depletion and amortization			86				85				1
Operating expenses			832				150				682
Property taxes			296				296				-
Cost of operations			1,214				531				683
Operating profit before G&A		$	(613	)			77				(690	)

FRP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

Assets:		June 30 2025				December 31 2024
Real estate investments at cost:
Land		$	168,927				168,943
Buildings and improvements			308,561				283,421
Projects under construction			16,167				32,770
Total investments in properties			493,655				485,134
Less accumulated depreciation and depletion			82,916				77,695
Net investments in properties			410,739				407,439
Real estate held for investment, at cost			12,312				11,722
Investments in joint ventures			139,098				153,899
Net real estate investments			562,149				573,060
Cash and cash equivalents			153,167				148,620
Cash held in escrow			1,266				1,315
Accounts receivable, net			1,586				1,352
Federal and state income taxes receivable			778				-
Unrealized rents			1,264				1,380
Deferred costs			1,942				2,136
Other assets			630				622
Total assets		$	722,782				728,485
Liabilities:
Secured notes payable		$	180,371				178,853
Accounts payable and accrued liabilities			6,739				6,026
Other liabilities			1,487				1,487
Federal and state income taxes payable			-				611
Deferred revenue			2,842				2,437
Deferred income taxes			67,655				67,688
Deferred compensation			1,494				1,465
Tenant security deposits			780				805
Total liabilities			261,368				259,372
Commitments and contingencies
Equity:
Common stock, $.10 par value 25,000,000 shares authorized, 19,109,234 and 19,046,894 shares issued and outstanding, respectively			1,911				1,905
Capital in excess of par value			70,196				68,876
Retained earnings			354,555				352,267
Accumulated other comprehensive income, net			40				55
Total shareholders' equity			426,702				423,103
Noncontrolling interests			34,712				46,010
Total equity			461,414				469,113
Total liabilities and equity		$	722,782				728,485

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 The Verge in the Multifamily segment for all periods shown.

Pro rata Net Operating Income Reconciliation
Six months ending 6/30/25 (in thousands)

		Industrial and Commercial Segment				Development Segment				Multifamily Segment				Mining Royalties Segment				Unallocated Corporate Expenses				FRP Holdings Totals
Net income (loss)		$	831				1,086				(2,531	)			4,806				(1,934	)			2,258
Income tax allocation			255				333				(788	)			1,476				(572	)			704
Income (loss) before income taxes			1,086				1,419				(3,319	)			6,282				(2,506	)			2,962
Less:
Unrealized rents			-								-				-								-
Interest income							1,876				1								3,032				4,909
Plus:
Unrealized rents			101				-				14				289				-				404
Professional fees							734				87												821
Equity in loss of joint ventures			-				(156	)			4,543				23								4,410
Interest expense			-				-				1,443				-				76				1,519
Depreciation/amortization			962				86				3,930				355								5,333
General and administrative			-				-				-				-				5,462				5,462
Net operating income (loss)			2,149				207				6,697				6,949				-				16,002
NOI of noncontrolling interest											(3,052	)											(3,052	)
Pro rata NOI from unconsolidated joint ventures							380				5,722												6,102
Pro rata net operating income		$	2,149				587				9,367				6,949				-				19,052

Pro-rata Net Operating Income Reconciliation
Six months ended 06/30/24 (in thousands)

		Industrial and Commercial Segment				Development Segment				Multifamily Segment				Mining Royalties Segment				Unallocated Corporate Expenses				FRP Holdings Totals
Net income (loss)		$	805				(1,115	)			(2,477	)			3,876				2,305				3,394
Income tax allocation			247				(343	)			(772	)			1,191				993				1,316
Income (loss) before income taxes			1,052				(1,458	)			(3,249	)			5,067				3,298				4,710
Less:
Unrealized rents			19								9				229								257
Interest income							2,554												3,937				6,491
Plus:																							-
Professional fees											15												15
Equity in loss of joint ventures			-				1,782				3,939				22								5,743
Interest expense			-				-				1,652				-				88				1,740
Depreciation/amortization			723				85				3,962				308								5,078
General and administrative			590				2,307				526				620				551				4,594
																							-
Net operating income (loss)			2,346				162				6,836				5,788				-				15,132
NOI of noncontrolling interest											(3,111	)											(3,111	)
Pro-rata NOI from unconsolidated joint ventures							299				5,444												5,743
Pro-rata net operating income		$	2,346				461				9,169				5,788				-				17,764

Conference Call

The Company will host a conference call on Thursday, August 7, 2025 at 9:00 a.m. (EDT). Analysts, stockholders and other interested parties may access the teleconference live by calling 1-800-343-4849 (passcode 83364) within the United States. International callers may dial 1-203-518-9848 (passcode 83364). Audio replay will be available until August 21, 2025 by dialing 1-800-839-2385 within the United States. International callers may dial 1-402-220-7203. No passcode needed. An audio replay will also be available on the Company's website under investors, financials, quarterly results (https://investors.frpdev.com/quarterly-reports) following the call.

Additional Information

Our investor relations website is https://investors.frpdev.com and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, press releases, quarterly earnings presentations, investor presentations, and corporate governance information, which may contain material information about us, and you may subscribe to Email Alerts to be notified of new information posted to this site.

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 the impact of tariffs on our industrial tenants and construction costs; 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, and (iv) leasing and management of residential apartment buildings.

Contact:

Matthew C. McNulty
Chief Financial Officer
(904) 858-9100

SOURCE: FRP Holdings, Inc.

View the original press release on ACCESS Newswire

FAQ

What caused FRPH's net income to decline in Q2 2025?

FRPH's net income declined 72% primarily due to legal expenses for due diligence on potential investments, lower net interest income, and increased operating expenses, partially offset by higher mining royalties.

What are FRPH's expansion plans for its industrial segment?

FRPH aims to double its industrial segment by 2030 by delivering three new industrial assets every two years, including current developments in Lake County, FL totaling 377,892 square feet.

How did FRPH's multifamily segment perform in Q2 2025?

The multifamily segment showed 1% NOI growth to $4.7 million, with improved average occupancy of 94.1% across 1,827 units in six properties.

What new credit facility did FRPH secure in Q2 2025?

FRPH secured a $50 million five-year revolving credit facility with Wells Fargo, with an interest rate of 2.25% over Daily Simple SOFR.

How is FRPH's mining royalty segment performing?

The mining royalty segment showed strong performance with a 21% increase in NOI and 11.7% growth in revenue to $3.6 million in Q2 2025.