FRP Holdings (NASDAQ: FRPH) posts Q1 2026 loss as G&A and occupancy pressure NOI
Filing Impact
Filing Sentiment
Form Type
10-Q
FRP Holdings reported a first-quarter 2026 net loss of $0.7 million, or $0.04 per share, compared with net income of $1.7 million, or $0.09 per share, a year earlier. Total revenue rose slightly to $10.6 million from $10.3 million, as higher mining royalties and new joint venture management fees offset lower lease revenue.
Operating profit fell to $0.5 million from $2.3 million, driven by a 58.5% increase in general and administrative expenses to $4.1 million, largely tied to the Altman Logistics acquisition, and weaker performance in the multifamily and industrial segments. Pro rata net operating income declined 5% to $8.9 million, with multifamily NOI down 12% and industrial/commercial NOI down 33% on lower occupancy and higher costs.
The mining royalty lands segment remained a bright spot, with revenue up 15% to $3.7 million and NOI up 15% as royalty tons rose 7.9% and royalty revenue per ton increased 6.5%. FRP continues to invest heavily in development, using $17.9 million for properties and joint ventures in the quarter, while cash, cash equivalents and restricted cash increased to $107.9 million and total debt rose to $203.9 million.
Positive
- None.
Negative
- Profitability deteriorated: FRP moved from $1.7 million net income to a $0.7 million net loss, as operating profit fell 78% and pro rata NOI declined 5%, driven by higher G&A and weaker multifamily and industrial performance.
Insights
Quarter shows earnings pressure from G&A and occupancy, partly offset by strong royalties.
FRP Holdings swung from a $1.7M profit to a $0.7M loss as general and administrative expenses rose 58.5% to $4.1M, reflecting integration costs and added overhead from the Altman Logistics platform. Operating profit fell sharply despite a modest 2.8% revenue increase.
Segment results highlight the mix shift. Multifamily pro rata NOI declined 11.8% to $4.1M, with average occupancy slipping to 92.1% and expenses rising, especially at Washington, D.C. assets. Industrial and commercial NOI dropped 33.5% to $0.8M, hurt by vacancies and the lease-up of the Chelsea warehouse.
The Mining Royalty Lands segment delivered 15.2% NOI growth to $3.8M on higher volumes and pricing, providing stable cash flow. FRP also deployed $17.9M into properties and joint ventures while ending the quarter with $107.9M in cash and a manageable $203.9M of debt, positioning it to fund its $69M 2026 and $113M longer-term investment pipeline.
Key Figures
Total revenue: $10.6M
Net income (loss): -$0.7M
Earnings per share: -$0.04/share
+5 more
8 metrics
Total revenue
$10.6M
Three months ended March 31, 2026
Net income (loss)
-$0.7M
Three months ended March 31, 2026
Earnings per share
-$0.04/share
Basic and diluted, Q1 2026
Pro rata NOI
$8.9M
Q1 2026 vs $9.4M in Q1 2025
Mining royalty revenue
$3.7M
Three months ended March 31, 2026
Cash and restricted cash
$107.9M
As of March 31, 2026
Total debt
$203.9M
Notes payable, net, March 31, 2026
G&A expenses
$4.1M
Three months ended March 31, 2026, up 58.5%
Key Terms
pro rata net operating income, joint venture management fee revenue, noncontrolling interests, Deferred income taxes, +1 more
5 terms
pro rata net operating income financial
"Pro rata NOI for the first quarter of 2026 was $8,861,000 versus $9,364,000 in the same period last year."
joint venture management fee revenue financial
"Joint venture management fee revenue | 164 | — | 164"
noncontrolling interests financial
"Noncontrolling interests | 26,219 | 27,144 Total equity"
The portion of a subsidiary’s equity and profits that belongs to outside owners rather than the parent company; when a parent reports consolidated results it includes the whole subsidiary but shows the noncontrolling slice separately. Think of a company’s subsidiary as a pie where the parent owns most slices but some are held by other investors — noncontrolling interests tell you how much of the pie and its future earnings don’t belong to the parent, which affects how much profit and net assets are truly attributable to the parent’s shareholders.
Deferred income taxes financial
"Deferred income taxes | 66,901 | 66,900"
Deferred income taxes are accounting entries that record taxes a company will owe or reclaim in the future because the company's financial accounting and its tax returns recognize income or expenses at different times. They matter to investors because deferred taxes affect future cash flow and can change a company’s real profit picture—think of them as a postponed tax bill or credit that shifts when and how much cash actually leaves or enters the business.
opportunity zone holding period financial
"The term coincides with when the opportunity zone holding period lapses in 2030, when a sale could take place and the tax on gain is forgiven."
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 10-Q
_____________________
| (Mark One) | |||||||||||
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
For the quarterly period ended | |||||||||||
or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||
| For the transition period from_________ to _________ | |||||||||||
Commission File Number: 001-36769
_____________________
(Exact name of registrant as specified in its charter)
_____________________
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(Registrant’s telephone number, including area code)
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [_]
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [x] No [_]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer [_] | Accelerated filer [_] | |||||||
Smaller reporting company | ||||||||
Emerging growth company | ||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [_]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [_] No [x]
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
| Class | Outstanding at May 13, 2026 | |||||||
| Common Stock, $.10 par value per share | ||||||||
1
Table of Contents
FRP HOLDINGS, INC.
FORM 10-Q
QUARTER ENDED MARCH 31, 2026
CONTENTS
| Page No. | ||||||||
Preliminary Note Regarding Forward-Looking Statements | 3 | |||||||
Part I. Financial Information | ||||||||
Item 1. | Financial Statements | |||||||
Consolidated Balance Sheets | 4 | |||||||
Consolidated Statements of Income | 5 | |||||||
Consolidated Statements of Comprehensive Income | 6 | |||||||
Consolidated Statements of Cash Flows | 7 | |||||||
Consolidated Statements of Shareholders’ Equity | 8 | |||||||
Condensed Notes to Consolidated Financial Statements | 9 | |||||||
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 22 | ||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risks | 40 | ||||||
Item 4. | Controls and Procedures | 41 | ||||||
Part II. Other Information | ||||||||
Item 1A. | Risk Factors | 42 | ||||||
Item 2. | Purchase of Equity Securities by the Issuer | 42 | ||||||
Item 6. | Exhibits | 42 | ||||||
Signatures | 43 | |||||||
Exhibit 31 | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | 45 | ||||||
Exhibit 32 | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | 45 | ||||||
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Preliminary Note Regarding Forward-Looking Statements.
This Quarterly Report on Form 10-Q, together with other statements and information publicly disseminated by us, contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words or phrases “anticipate,” “estimate,” “believe,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and similar expressions identify forward-looking statements. Such statements reflect management’s current views with respect to financial results related to future events and are based on assumptions and expectations that may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial or otherwise, may differ, perhaps materially, from the results discussed in the forward-looking statements. Risk factors discussed in Item 1A of this Form 10-Q and other factors that might cause differences, some of which could be material, 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 Mid-Atlantic 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; cyber security risks; and construction costs; 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. Additional information regarding these and other risk factors may be found in the Company’s other filings made from time to time with the Securities and Exchange Commission.
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PART I. FINANCIAL INFORMATION, ITEM 1. FINANCIAL STATEMENTS
FRP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited) (In thousands, except share data)
| Assets: | March 31 2026 | December 31 2025 | |||||||||
| Real estate investments at cost: | |||||||||||
| Land | $ | ||||||||||
| Buildings and improvements | |||||||||||
| Projects under construction | |||||||||||
| Total investments in properties | |||||||||||
| Less accumulated depreciation and depletion | |||||||||||
| Net investments in properties | |||||||||||
| Real estate held for investment, at cost | |||||||||||
| Investments in joint ventures | |||||||||||
| Net real estate investments | |||||||||||
Cash, cash equivalents and restricted cash including $ | |||||||||||
| Accounts receivable, net | |||||||||||
| Federal and state income taxes receivable | |||||||||||
| Unrealized rents | |||||||||||
| Deferred costs | |||||||||||
Goodwill | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | ||||||||||
| Liabilities: | |||||||||||
| Notes payable, net | $ | ||||||||||
| Accounts payable and accrued liabilities | |||||||||||
| Other liabilities | |||||||||||
| Deferred revenue | |||||||||||
| Deferred income taxes | |||||||||||
| Deferred compensation | |||||||||||
| Tenant security deposits | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies | |||||||||||
| Equity: | |||||||||||
Common stock, $ and outstanding, respectively | |||||||||||
| Capital in excess of par value | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive income, net | |||||||||||
| Total shareholders’ equity | |||||||||||
| Noncontrolling interests | |||||||||||
| Total equity | |||||||||||
| Total liabilities and equity | $ | ||||||||||
See accompanying notes.
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FRP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share amounts)
(Unaudited)
| THREE MONTHS ENDED | ||||||||||||||||||||||||||
| MARCH 31, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Lease revenue | $ | |||||||||||||||||||||||||
| Mining royalty and rents | ||||||||||||||||||||||||||
Joint venture management fee revenue | ||||||||||||||||||||||||||
| Total revenues | ||||||||||||||||||||||||||
| Cost of operations: | ||||||||||||||||||||||||||
| Depreciation/depletion/amortization | ||||||||||||||||||||||||||
| Operating expenses | ||||||||||||||||||||||||||
| Property taxes | ||||||||||||||||||||||||||
| General and administrative | ||||||||||||||||||||||||||
| Total cost of operations | ||||||||||||||||||||||||||
| Total operating profit | ||||||||||||||||||||||||||
| Net investment income | ||||||||||||||||||||||||||
| Interest expense | ( | ( | ||||||||||||||||||||||||
| Equity in loss of joint ventures | ( | ( | ||||||||||||||||||||||||
| Income (loss) before income taxes | ( | |||||||||||||||||||||||||
| Provision for income taxes | ( | |||||||||||||||||||||||||
| Net income (loss) | ( | |||||||||||||||||||||||||
| Income (loss) attributable to noncontrolling interest | ( | ( | ||||||||||||||||||||||||
| Net income (loss) attributable to the Company | $ | ( | ||||||||||||||||||||||||
| Earnings per common share: | ||||||||||||||||||||||||||
| Net income attributable to the Company- | ||||||||||||||||||||||||||
| Basic | $ | ( | ||||||||||||||||||||||||
| Diluted | $ | ( | ||||||||||||||||||||||||
| Number of shares (in thousands) used in computing: | ||||||||||||||||||||||||||
| -basic earnings per common share | ||||||||||||||||||||||||||
| -diluted earnings per common share | ||||||||||||||||||||||||||
See accompanying notes.
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FRP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands except per share amounts)
(Unaudited)
| THREE MONTHS ENDED | ||||||||||||||||||||||||||
| MARCH 31 | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| Net income (loss) | $ | ( | ||||||||||||||||||||||||
| Other comprehensive income (loss) net of tax: | ||||||||||||||||||||||||||
Minimum pension liability, net of income tax effect of $ | ( | ( | ||||||||||||||||||||||||
| Comprehensive income (loss) | $ | ( | ||||||||||||||||||||||||
| Less comp. income (loss) attributable to noncontrolling interests | ( | ( | ||||||||||||||||||||||||
| Comprehensive income (loss) attributable to the Company | $ | ( | ||||||||||||||||||||||||
See accompanying notes
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FRP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2026 AND 2025
(In thousands) (Unaudited)
| 2026 | 2025 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
Net income (loss) | $ | ( | ||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||
| Depreciation, depletion and amortization | ||||||||||||||
| Deferred income taxes | ( | |||||||||||||
| Equity in loss of joint ventures | ||||||||||||||
| Stock-based compensation | ||||||||||||||
| Net changes in operating assets and liabilities: | ||||||||||||||
| Accounts receivable | ( | |||||||||||||
| Deferred costs and other assets | ( | ( | ||||||||||||
| Accounts payable and accrued liabilities | ( | |||||||||||||
| Income taxes payable and receivable | ( | |||||||||||||
| Other long-term liabilities | ( | |||||||||||||
| Net cash provided by operating activities | ||||||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Investments in properties | ( | ( | ||||||||||||
| Investments in joint ventures | ( | ( | ||||||||||||
| Return of capital from investments in joint ventures | ||||||||||||||
| Net cash (used in) provided by investing activities | ( | |||||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Proceeds from long-term debt | ||||||||||||||
| Debt issue costs | ( | |||||||||||||
Distributions to noncontrolling interests | ( | ( | ||||||||||||
Contributions from noncontrolling interests | ||||||||||||||
| Net cash (used in) provided by financing activities | ( | |||||||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | ( | |||||||||||||
| Cash, cash equivalents and restricted cash at beginning of year | ||||||||||||||
| Cash, cash equivalents and restricted cash at end of the year | $ | |||||||||||||
| Supplemental disclosure of cash flow information: | ||||||||||||||
| Cash paid during the period for: | ||||||||||||||
| Interest | $ | $ | ||||||||||||
Income taxes, federal | ||||||||||||||
Income taxes, state | ||||||||||||||
See accompanying notes.
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FRP HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
THREE MONTHS ENDED MARCH 31, 2026 AND 2025
(In thousands, except share amounts) (Unaudited)
| Common Stock | Capital in Excess of Par Value | Retained Earnings | Accum. Other Comp- rehensive Income (loss), net | Total Share holders’ Equity | Non- Controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2025 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Restricted stock award | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Forfeiture of restricted stock award | ( | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | ( | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Contributions from partner | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Distributions to partners | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Minimum pension liability,net | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2026 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
| Equity-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Restricted stock award | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
| Contributions from partner | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Distributions to partners | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Minimum pension liability, net | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
| Balance at March 31, 2025 | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
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FRP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2026
(Unaudited)
(1) Description of Business and Basis of Presentation.
FRP Holdings, Inc. is engaged in the real estate business, namely (i) leasing and management of industrial and commercial properties (the “Industrial and Commercial Segment”), (ii) leasing and management of mining royalty land owned by the Company (the “Mining Royalty Lands Segment”), (iii) real property acquisition, entitlement, development and construction primarily for apartment, retail, industrial, and office (the “Development Segment”), and (iv) management of mixed-use residential/retail properties owned through our joint ventures (the “Multifamily Segment”). Our investments in real estate partnerships not wholly owned by FRP which are conducted through limited liability corporations (“LLC”) are also referred to as joint ventures.
The accompanying consolidated financial statements include the accounts of FRP Holdings, Inc. inclusive of our wholly owned operating real estate subsidiaries, FRP Development Corp., Florida Rock Properties, Inc., and consolidated partnerships Riverfront Investment Partners I, LLC, Riverfront Investment Partners II, LLC, and Camp Lake Venture IA, LLC. Investments in real estate joint ventures not controlled by the Company are accounted for under the equity or cost method of accounting as appropriate (See Note 10). Our ownership of Riverfront Investment Partners I, LLC, Riverfront Investment Partners II, LLC, and Camp Lake Venture IA, LLC includes a noncontrolling interest representing the ownership of our partners. Our consolidated financial statements included a non-controlling interest for Lakeland Logistics Park Venture, LLC and Davie Logistics Park Venture, LLC from their formation in 2024 through October 21, 2025 when we purchased the noncontrolling interest from our partner. All significant intercompany balances and transactions are eliminated in the consolidated financial statements. Certain items in the 2025 financial statements have been reclassified for comparability purposes with the 2026 financials. These reclassifications had no effect on previously reported net income or equity.
These statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q and do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. Operating results for the three months ended March 31, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. The accompanying consolidated financial statements and the information included under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" should be read in conjunction with the Company's consolidated financial statements and related notes included in the Company’s Form 10-K for the year ended December 31, 2025.
(2) Recently Issued Accounting Standards.
In November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses (Subtopic 220-40). The ASU requires the disaggregated disclosure of specific expense categories, including employee compensation, depreciation, and amortization, within relevant income statement captions. The ASU is effective beginning with our 10-K for 2027. We are evaluating the impact of this standard on our disclosures.
(3) Business Segments.
Our Chief Executive Officer, as the CODM, organizes our company, manages resource allocations and measures performance among our four reportable segments: Industrial and Commercial, Mining Royalty Lands, Development, and Multifamily, as described below.
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The Industrial and Commercial Segment owns, leases and manages in-service commercial properties. Currently this includes ten warehouses in three business parks, an office building partially occupied by the Company, and two ground leases all wholly owned by the Company. This segment will also include joint ventures of commercial properties when they are stabilized.
Our Mining Royalty Lands Segment owns several properties totaling approximately 16,640 acres currently under lease for mining rents or royalties (this does not include the 4,280 acres owned 50 /50 in our Brooksville joint venture with Vulcan Materials). Other than one location in Virginia, all of these properties are located in Florida and Georgia.
Through our Development Segment, we own and are continuously assessing the highest and best use of several parcels of land that are in various stages of development. Our overall strategy in this segment is to convert all of our non-income producing lands into income production through (i) an orderly process of constructing new buildings for us to own and operate or (ii) a sale to, or joint venture with, third parties. Additionally, our Development segment will acquire or form joint ventures on new land for development not previously owned by the Company. Three of our joint ventures in the segment, Lakeland Logistics Park Venture, LLC ("Lakeland"), Davie Logistics Park Venture, LLC ("Davie"), and Camp Lake Venture IA ("Camp Lake", LLC were consolidated until we purchased the noncontrolling interest of Lakeland and Davie as part of the Altman Logistics acquisition on October 21, 2025. In conjunction with this acquisition, the Company assumed contracts with its real estate joint ventures to provide management services during development, construction, lease up, and stabilization. The Company recognizes Joint venture management fee revenues, net of intercompany amounts, over time using the percentage completion method based upon costs incurred to date relative to total estimated costs. The joint venture agreements provide for promote distributions in excess of the Company's percentage ownership based upon total return of the investments over certain financial hurdles (waterfalls). Promote revenues are recognized when earned under the waterfall provisions.
The Multifamily Segment includes joint ventures which own, lease and manage buildings that have met our initial lease-up criteria. Two of our joint ventures in the segment, Riverfront Investment Partners I, LLC (“Dock 79”) and Riverfront Investment Partners II, LLC (“The Maren”) are consolidated.
Our CODM uses revenues, operating profit before general and administrative expense, depreciation and amortization, and identifiable assets to allocate operating and capital resources and assesses performance of each segment by comparing actual results to historical, budgeted, and forecasted financial information. We do not believe that an allocation of general and administrative expense to each segment is relevant to our CODM's assessments due to the market excluding those costs in property valuation and the materiality of expenditures related to future opportunities.
Operating results and certain other financial data for the Company’s business segments are as follows (in thousands):
| Three Months ended | ||||||||||||||||||||||||||
| March 31, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||
| Industrial and commercial | $ | |||||||||||||||||||||||||
| Mining royalty lands | ||||||||||||||||||||||||||
| Development | ||||||||||||||||||||||||||
| Multifamily | ||||||||||||||||||||||||||
| $ | ||||||||||||||||||||||||||
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| Operating profit (loss): | ||||||||||||||||||||||||||
| Before general and administrative expenses: | ||||||||||||||||||||||||||
| Industrial and commercial | $ | |||||||||||||||||||||||||
| Mining royalty lands | ||||||||||||||||||||||||||
| Development | ||||||||||||||||||||||||||
| Multifamily | ||||||||||||||||||||||||||
| Operating profit before G&A | ||||||||||||||||||||||||||
| Total general and administrative expenses | ||||||||||||||||||||||||||
| $ | ||||||||||||||||||||||||||
| Interest expense | $ | $ | ||||||||||||||||||||||||
| Depreciation, depletion and amortization: | ||||||||||||||||||||||||||
| Industrial and commercial | $ | |||||||||||||||||||||||||
| Mining royalty lands | ||||||||||||||||||||||||||
| Development | ||||||||||||||||||||||||||
| Multifamily | ||||||||||||||||||||||||||
| $ | ||||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||
| Industrial and commercial | $ | |||||||||||||||||||||||||
| Mining royalty lands | ||||||||||||||||||||||||||
| Development | ||||||||||||||||||||||||||
| Multifamily | ||||||||||||||||||||||||||
| $ | ||||||||||||||||||||||||||
| Property taxes: | ||||||||||||||||||||||||||
| Industrial and commercial | $ | |||||||||||||||||||||||||
| Mining royalty lands | ||||||||||||||||||||||||||
| Development | ||||||||||||||||||||||||||
| Multifamily | ||||||||||||||||||||||||||
| $ | ||||||||||||||||||||||||||
| Capital expenditures: | ||||||||||||||||||||||||||
| Industrial and commercial | $ | |||||||||||||||||||||||||
| Mining royalty lands | ||||||||||||||||||||||||||
| Development | ||||||||||||||||||||||||||
| Multifamily | ||||||||||||||||||||||||||
| $ | ||||||||||||||||||||||||||
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| Identifiable net assets | March 31, 2026 | December 31, 2025 | |||||||||
| Industrial and commercial | $ | ||||||||||
| Mining royalty lands | |||||||||||
| Development | |||||||||||
| Multifamily | |||||||||||
| Cash items | |||||||||||
| Unallocated corporate assets | |||||||||||
| $ | |||||||||||
(4) Long-Term Debt.
The Company’s outstanding debt, net of unamortized debt issuance costs, consisted of the following (in thousands):
| March 31, 2026 | December 31, 2025 | ||||||||||||||||
Fixed rate mortgage loans, | $ | ||||||||||||||||
| Variable rate construction/stabilization loans | |||||||||||||||||
| Unamortized debt issuance costs | ( | ( | |||||||||||||||
| Credit agreement | |||||||||||||||||
| $ | |||||||||||||||||
Unamortized debt issuance costs - undrawn loans included in Deferred costs in the Company's consolidated balance sheets | $ | ||||||||||||||||
On July 21, 2025, the Company entered into a 2025 Amended and Restated Credit Agreement (the “Credit Agreement”) with Wells Fargo Bank, N.A. (“Wells Fargo”), effective July 21, 2025. 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. As of March 31, 2026, there was $6,500,000 debt outstanding on this revolver, $410,000 outstanding under letters of credit and $43,090,000 available for borrowing. The letters of credit were issued to guarantee certain obligations to state agencies related to real estate development. Most of the letters of credit are irrevocable for a period of one year and typically are automatically extended for additional one-year periods. The letter of credit fee is 2.25 % and applicable interest rate was 5.88 % on March 31, 2026. The credit agreement contains affirmative financial covenants and negative covenants, including a minimum tangible net worth. As of March 31, 2026, these covenants would have limited our ability to pay dividends to a maximum of $87.0 million combined.
On March 19, 2021, the Company refinanced Dock 79 and The Maren pursuant to separate Loan Agreements and Deed of Trust Notes entered into with Teachers Insurance and Annuity Association of America, LLC. Dock 79 and The Maren borrowed principal sums of $92,070,000 and $88,000,000 respectively, in connection with the refinancing. The loans are separately secured by the Dock 79 and The Maren real property and improvements, bear a fixed interest rate of 3.03 60 7.5 0.75
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On March 7, 2025 the Lakeland partnership secured a $16.0 million loan with a floating rate equal to SOFR plus 2.75 % from Seacoast National Bank. The applicable rate at March 31, 2026 was 6.42 %. It is a three-year construction/stabilization loan with a two-year conditional extension at SOFR plus 2.50 % with an interest rate swap conversion option.
On March 13, 2025 the Davie partnership secured a $31.9 million loan with a floating rate equal to SOFR plus 2.75 % from Synovus National Bank. The applicable rate at March 31, 2026 was 6.42 %. It is a three-year construction/stabilization loan with a two-year conditional extension at SOFR plus 2.25 %.
On July 23, 2025 the Camp Lake partnership secured a $33.0 million loan at SOFR plus 2.75 % from Pinnacle Bank. It is a three-year construction/stabilization loan with two 1 -year conditional extensions.
Debt cost amortization of $109,000 and $65,000 was recorded during the three months ended March 31, 2026 and 2025, respectively. During the three months ended March 31, 2026 and 2025 the Company capitalized interest costs of $777,000 and $744,000 , respectively.
The Company was in compliance with all debt covenants as of March 31, 2026.
(5) Earnings per Share.
The following details the computations of the basic and diluted earnings per common share (in thousands, except per share amounts):
| Three Months ended | ||||||||||||||||||||||||||
| March 31, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| Weighted average common shares outstanding during the period – shares used for basic earnings per common share | ||||||||||||||||||||||||||
Common shares issuable under share-based payment plans which are potentially dilutive | ||||||||||||||||||||||||||
Common shares used for diluted earnings per common share | ||||||||||||||||||||||||||
| Net income (loss) attributable to the Company | $ | ( | ||||||||||||||||||||||||
| Earnings per common share: | ||||||||||||||||||||||||||
| -basic | $ | ( | ||||||||||||||||||||||||
| -diluted | $ | ( | ||||||||||||||||||||||||
For the three months ended March 31, 2026 and March 31, 2025, the Company had 87,390 and 73,905 shares, respectively, of stock options outstanding which were not used in the calculation above because the effect would have been anti-dilutive.
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(6) Stock-Based Compensation Plans.
The Company has two Equity Compensation Plans (the 2016 Equity Incentive Plan and it's replacement, the 2026 Equity Incentive Plan) under which outstanding stock options, restricted stock, and stock awards were granted to directors, officers and key employees. The plans permit the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, or stock awards. The options awarded under the plans have similar characteristics. All stock options are non-qualified and expire ten years from the date of grant. Stock based compensation awarded to directors, officers and employees are exercisable immediately or become exercisable in cumulative installments of 20 % or 25 % at the end of each year following the date of grant. When stock options are exercised, the Company issues new shares after receipt of exercise proceeds and taxes due, if any, from the grantee. The number of common shares available for future issuance was 411,224 at March 31, 2026.
On October 21, 2025, the Company completed the closing on its Purchase and Sales Agreement to acquire the business operations and development pipeline of Altman Logistics Properties, LLC, an operating platform of BBX Capital. The Company offered the hired Altman employees project profits interests grants that can be settled in Company stock at the Company’s discretion. These interests were valued by a 3rd party specialist at $796,000 of which $344,000 was earned prior to the acquisition and treated as goodwill on the balance sheet.
The Company utilizes the Black-Scholes valuation model for estimating fair value of stock compensation for options awarded to officers and employees. Each grant is evaluated based upon assumptions at the time of grant. The assumptions were no dividend yield, expected volatility between 28.5 % and 41.2 %, risk-free interest rate of 2.0 % to 4.5 % and expected life of 5.0 to 7.0 years.
The dividend yield of zero is based on the fact that the Company does not pay cash dividends and has no present intention to pay cash dividends. Expected volatility is estimated based on the Company’s historical experience over a period equivalent to the expected life in years. The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate at the date of grant with a term consistent with the expected life of the options granted. The expected life calculation is based on the observed and expected time to exercise options by the employees.
The Company recorded the following stock compensation expense in its consolidated statements of income (in thousands):
| Three Months ended | ||||||||||||||||||||||||||
| March 31, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| Stock option grants | $ | $ | ||||||||||||||||||||||||
| Restricted stock awards | ||||||||||||||||||||||||||
Profits interests grants | ||||||||||||||||||||||||||
| $ | $ | |||||||||||||||||||||||||
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A summary of changes in outstanding options is presented below (in thousands, except share and per share amounts):
| Options | Number Of Shares | Weighted Average Exercise Price | Weighted Average Remaining Term (yrs) | Weighted Average Grant Date Fair Value(000's) | ||||||||||||||||||||||||||||
| Outstanding at December 31, 2025 | $ | $ | ||||||||||||||||||||||||||||||
| Time-based awards granted | ||||||||||||||||||||||||||||||||
| Performance-based awards granted | ||||||||||||||||||||||||||||||||
| Performance-based awards forfeited | ( | ( | ||||||||||||||||||||||||||||||
| Outstanding at March 31, 2026 | $ | $ | ||||||||||||||||||||||||||||||
| Exercisable at March 31, 2026 | $ | $ | ||||||||||||||||||||||||||||||
| Vested during three months ended March 31, 2026 | $ | |||||||||||||||||||||||||||||||
The aggregate intrinsic value of exercisable in-the-money options was $64,000 and the aggregate intrinsic value of outstanding in-the-money options was $64,000 based on the market closing price of $21.88 on March 31, 2026 less exercise prices.
The unrecognized compensation cost of options granted to FRP employees but not yet vested as of March 31, 2026 was $419,000 , which is expected to be recognized over a weighted-average period of 3.0 years.
A summary of changes in restricted stock awards is presented below (in thousands, except share and per share amounts):
| Restricted stock | Number Of Shares | Weighted Average Grant Date Fair Value Per Share | Weighted Average Remaining Term (yrs) | Weighted Average Grant Date Fair Value(000's) | ||||||||||||||||||||||||||||
| Non-vested at December 31, 2025 | $ | $ | ||||||||||||||||||||||||||||||
| Time-based awards granted | ||||||||||||||||||||||||||||||||
| Performance-based awards granted | ||||||||||||||||||||||||||||||||
| Performance-based awards forfeited | ( | ( | ||||||||||||||||||||||||||||||
| Vested | ( | ( | ||||||||||||||||||||||||||||||
| Non-vested at March 31, 2026 | $ | $ | ||||||||||||||||||||||||||||||
Total unrecognized compensation cost of restricted stock granted but not yet vested as of March 31, 2026 was $3,363,000 which is expected to be recognized over a weighted-average period of 3.3 years.
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(7) Contingencies.
The Company may be involved in litigation on a number of matters and is subject to certain claims which arise in the normal course of business. The Company has retained certain self-insurance risks with respect to losses for third party liability and property damage. In the opinion of management, none of these matters are expected to have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows.
The Company is subject to numerous environmental laws and regulations. The Company believes that the ultimate disposition of currently known environmental matters will not have a material effect on its financial position, liquidity, or operations. The Company can give no assurance that previous environmental studies with respect to its properties have revealed all potential environmental contaminants; that any previous owner, occupant or tenant did not create any material environmental condition not known to the Company; that the current environmental condition of the properties will not be affected by tenants and occupants, by the condition of nearby properties, or by unrelated third parties; and that changes in applicable environmental laws and regulations or their interpretation will not result in additional environmental liability to the Company.
As of March 31, 2026, there was $410,000 outstanding under letters of credit. The letters of credit were issued to guarantee certain obligations to state agencies related to real estate development.
The Company and MidAtlantic Realty Partners (MRP) provided a guaranty for the interest carry cost of the $110 million loan on the Bryant Street Partnerships issued in December 2023. The Company and MRP have a side agreement limiting the Company’s guarantee to its proportionate ownership. The value of the guarantee was calculated at $1.5 million based on the present value of our assumption of 0.8 % interest savings over the anticipated 36-month term. This amount is included as part of the Company’s investment basis and is amortized to expense over the 36 months. The Company will evaluate the guarantee liability based upon the success of the project and assuming no payments are made under the guarantee, the Company will have a gain of $1.5 million when the loan is paid in full.
On October 21, 2025 in conjunction with the Altman Logistics platform acquisition, FRP Guaranty, LLC (wholly owned by the Company) provided repayment, construction completion, and cost overrun guarantees to the construction lenders at Lakeland, Davie, Delray, Hamilton and Parsippany and the joint venture partners at Delray, Hamilton and Parsippany. As of March 31, 2026, the maximum amount of future payments that FRP Guaranty, LLC could be required to make under its repayment guarantees is $25.0 million on aggregate joint venture indebtedness of $121.7 million. FRP Guaranty, LLC would be required to perform on the guarantees upon a default on a construction loan by a joint venture or to ensure the completion of the construction of a joint venture project. As of March 31, 2026, FRP Guaranty, LLC has been funded with $10.0 million in cash and cash equivalents. The Company believes that the fair values of these guarantees are minimal based on various factors, including the collateral values securing the loans, the status of the applicable development projects, and current expectations regarding the probability of payments being made pursuant to such guarantees.
In November 2023, the Central Florida Expressway Authority (CFX) used its eminent domain power to take title to approximately 27.6 acres from the southern boundary of a parcel of the Company’s approximately 1,196 -acre Lake Louisa property that is leased to Cemex. As required by Florida law, CFX deposited $2,582,000 into the registry of the Court, representing CFX’s good faith estimate of the value of the condemned property. As the Company’s tenant, Cemex is claiming a portion of the funds ultimately paid by CFX as business damages. The Company is litigating with CFX over the value of the condemned property. The condemnation proceeding is not expected to impact the lease with Cemex. Management believes that the Company is entitled to compensation in excess of the carrying value of the property. Under the applicable accounting guidance, the Company has not recognized any gain related to this matter in the consolidated financial statements. The ultimate amount and timing of any gain will depend on the final settlement with CFX and Cemex. The Company will recognize the transactions in the period in which the compensation is realized or realizable.
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(8) Concentrations .
The mining royalty lands segment has a total of five tenants currently leasing mining locations and one lessee that accounted for 26.9 % of the Company’s consolidated revenues during the three months ended March 31, 2026, and $715,000 of accounts receivable at March 31, 2026. The termination of these lessees’ underlying leases could have a material adverse effect on the Company. The Company places its cash and cash equivalents with Wells Fargo Bank and TD Bank. At times, such amounts may exceed FDIC limits.
(9) Fair Value Measurements.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 means the use of quoted prices in active markets for identical assets or liabilities. Level 2 means the use of values that are derived principally from or corroborated by observable market data. Level 3 means the use of inputs are those that are unobservable and significant to the overall fair value measurement.
The fair values of the Company’s fixed rate mortgage notes payable were estimated based on current rates available to the Company for debt of the same remaining maturities. At March 31, 2026, the carrying amount and fair value of such other long-term debt was $180,070,000 and $148,485,000 , respectively. At December 31, 2025, the carrying amount and fair value of such other long-term debt was $180,070,000 and $148,736,000 , respectively.
(10) Investments in Joint Ventures.
The Company has investments in joint ventures, primarily with other real estate developers. Joint ventures where FRP is not the primary beneficiary are not consolidated and are reflected in the line “Investment in joint ventures” along with $921,000 in Other liabilities on the balance sheet and “Equity in loss of joint ventures” on the income statement. The assets of these joint ventures are restricted to use by the joint ventures and their obligations are non-recourse to FRP as to their principal balances and can only be settled by their assets.
The following table summarizes the Company’s investments in unconsolidated joint ventures (in thousands):
| FRP Ownership | The Company's Total Investment | Total Assets of The Partnership | Profit (Loss) Of the Partnership | The Company's Share of Profit (Loss) of the Partnership | |||||||||||||||||||||||||
| As of March 31, 2026 | |||||||||||||||||||||||||||||
| Brooksville Quarry, LLC | % | $ | ( | ( | |||||||||||||||||||||||||
| BC FRP Realty, LLC | % | ||||||||||||||||||||||||||||
| Buzzard Point Sponsor, LLC | % | ||||||||||||||||||||||||||||
| Bryant Street Partnerships | % | ( | ( | ||||||||||||||||||||||||||
| Industrial Partnerships | % | ( | ( | ||||||||||||||||||||||||||
| Lending ventures | |||||||||||||||||||||||||||||
| Estero Partnership | % | ||||||||||||||||||||||||||||
| The Verge Partnership | % | ( | ( | ||||||||||||||||||||||||||
| Greenville Partnerships | % | ( | ( | ||||||||||||||||||||||||||
| Total | $ | ( | ( | ||||||||||||||||||||||||||
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The major classes of assets, liabilities and equity of the Company’s Investments in unconsolidated Joint Ventures as of March 31, 2026 are summarized in the following two tables (in thousands):
| As of March 31, 2026 | ||||||||||||||||||||||||||||||||||||||
| Buzzard Point Sponsor, LLC | Bryant Street Partnerships | Estero Partnership | Verge Partnership | Greenville Partnerships | Total Multifamily JV’s | |||||||||||||||||||||||||||||||||
| Investments in real estate, net | $ | $ | ||||||||||||||||||||||||||||||||||||
| Cash and restricted cash | ||||||||||||||||||||||||||||||||||||||
| Unrealized rents & receivables | ||||||||||||||||||||||||||||||||||||||
| Deferred costs | ||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | $ | ||||||||||||||||||||||||||||||||||||
| Secured notes payable | $ | $ | ||||||||||||||||||||||||||||||||||||
| Other liabilities | ||||||||||||||||||||||||||||||||||||||
| Capital – FRP | ||||||||||||||||||||||||||||||||||||||
| Capital – Third Parties | ||||||||||||||||||||||||||||||||||||||
| Total Liabilities and Capital | $ | $ | ||||||||||||||||||||||||||||||||||||
| Industrial Partnerships | Brooksville Quarry, LLC | BC FRP Realty, LLC | Lending Ventures | Multifamily JV’s | Grand Total | ||||||||||||||||||||||||||||||||||||
| Investments in real estate, net | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Cash and restricted cash | |||||||||||||||||||||||||||||||||||||||||
| Unrealized rents & receivables | |||||||||||||||||||||||||||||||||||||||||
| Deferred costs | |||||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Secured notes payable | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
| Other liabilities | |||||||||||||||||||||||||||||||||||||||||
| Capital – FRP | |||||||||||||||||||||||||||||||||||||||||
| Capital – Third Parties | |||||||||||||||||||||||||||||||||||||||||
| Total Liabilities and Capital | $ | $ | |||||||||||||||||||||||||||||||||||||||
The Company’s capital recorded by the unconsolidated Joint Ventures is $7,016,000 less than the Investment in Joint Ventures reported in the Company’s consolidated balance sheet due primarily to capitalized interest.
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The major classes of assets, liabilities and equity of the Company’s Investments in Joint Ventures as of December 31, 2025 are summarized in the following two tables (in thousands):
| As of December 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| Buzzard Point Sponsor, LLC | Bryant Street Partnership | Estero Partnership | Verge Partnership | Greenville Partnership | Total Multifamily JV’s | |||||||||||||||||||||||||||||||||
| Investments in real estate, net | $ | $ | ||||||||||||||||||||||||||||||||||||
| Cash and restricted cash | ||||||||||||||||||||||||||||||||||||||
| Unrealized rents & receivables | ||||||||||||||||||||||||||||||||||||||
| Deferred costs | ||||||||||||||||||||||||||||||||||||||
| Total Assets | $ | $ | ||||||||||||||||||||||||||||||||||||
| Secured notes payable | $ | $ | ||||||||||||||||||||||||||||||||||||
| Other liabilities | ||||||||||||||||||||||||||||||||||||||
| Capital – FRP | ||||||||||||||||||||||||||||||||||||||
| Capital – Third Parties | ||||||||||||||||||||||||||||||||||||||
| Total Liabilities and Capital | $ | $ | ||||||||||||||||||||||||||||||||||||
| As of December 31, 2025 | |||||||||||||||||||||||||||||||||||
| Industrial Partnerships | Brooksville Quarry, LLC | BC FRP Realty, LLC | Lending Ventures | Multifamily JV’s | Grand Total | ||||||||||||||||||||||||||||||
| Investments in real estate, net | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Cash and restricted cash | |||||||||||||||||||||||||||||||||||
| Unrealized rents & receivables | |||||||||||||||||||||||||||||||||||
| Deferred costs | |||||||||||||||||||||||||||||||||||
| Total Assets | $ | $ | $ | ||||||||||||||||||||||||||||||||
| Secured notes payable | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
| Other liabilities | |||||||||||||||||||||||||||||||||||
| Capital – FRP | |||||||||||||||||||||||||||||||||||
| Capital - Third Parties | |||||||||||||||||||||||||||||||||||
| Total Liabilities and Capital | $ | $ | $ | ||||||||||||||||||||||||||||||||
The amount of consolidated retained earnings (accumulated deficit) for these joint ventures was $(39,478,000 ) and $(37,478,000 ) as of March 31, 2026 and December 31, 2025, respectively.
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The income statements of the Bryant Street Partnerships are as follows (in thousands):
| Bryant Street Partnerships Total JV | Bryant Street Partnerships Total JV | Bryant Street Partnerships Company Share | Bryant Street Partnerships Company Share | ||||||||||||||||||||
| Three months ended | Three months ended | Three months ended | Three months ended | ||||||||||||||||||||
| March 31, | March 31, | March 31, | March 31, | ||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Lease revenue | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Property taxes | |||||||||||||||||||||||
| Cost of operations | |||||||||||||||||||||||
| Total operating profit | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Net loss before tax | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Interest expense for the three months ended March 31, 2026 and 2025 for the the Company share includes $124,000
The income statements of the Greenville Partnerships are as follows (in thousands):
| Greenville Partnerships Total JV | Greenville Partnerships Total JV | Greenville Partnerships Company Share | Greenville Partnerships Company Share | ||||||||||||||||||||
| Three months ended | Three months ended | Three months ended | Three months ended | ||||||||||||||||||||
| March 31, | March 31, | March 31, | March 31, | ||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Lease revenue | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Property taxes | |||||||||||||||||||||||
| Cost of operations | |||||||||||||||||||||||
| Total operating profit | |||||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Net loss before tax | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
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The income statements of The Verge Partnership are as follows (in thousands):
| The Verge Partnership Total JV | The Verge Partnership Total JV | The Verge Partnership Company Share | The Verge Partnership Company Share | ||||||||||||||||||||
| Three months ended | Three months ended | Three months ended | Three months ended | ||||||||||||||||||||
| March 31, | March 31, | March 31, | March 31, | ||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Lease revenue | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Property taxes | |||||||||||||||||||||||
| Cost of operations | |||||||||||||||||||||||
| Total operating profit/(loss) | ( | ( | |||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Net loss before tax | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
(11) Subsequent Events.
None.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying unaudited consolidated financial statements and related notes in Item 1 and with the audited consolidated financial statements and the related notes included in our annual report on Form 10-K. The statements in this discussion regarding industry outlook, our expectations regarding our future performance, liquidity and capital resources and other non-historical statements in this discussion are forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including the risks and uncertainties described in “Forward-Looking Statements” below and “Risk Factors” on page 5 of our annual report on Form 10-K. Our actual results may differ materially from those contained in or implied by any forward-looking statements. We assume no obligation to revise or publicly release any revision to any forward-looking statements contained in this quarterly report on Form 10-Q, unless required by law.
The following discussion includes non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission to supplement the financial results as reported in accordance with GAAP. The non-GAAP financial measures discussed are operating profit before G&A and pro rata net operating income (NOI), adjusted pro rata net operating income, and adjusted net income. The Company uses these metrics to analyze its continuing operations and to monitor, assess, and identify meaningful trends in its operating and financial performance. These measures are not, and should not be viewed as, a substitute for GAAP financial measures. Refer to “Non-GAAP Financial Measure” below in this quarterly report for a more detailed discussion, including reconciliations of this non-GAAP financial measure to its most directly comparable GAAP financial measure.
Executive Overview - FRP Holdings, Inc. is a real estate development, asset management and operating company business. Our properties are located in the Mid-Atlantic and southeastern United States and consist of:
Residential apartments and retail spaces in Washington, D.C. and Greenville, SC;
Warehouse or office properties in Maryland and Florida either existing or under development;
Mining royalty lands, some of which will have second lives as development properties;
Mixed use properties under development in Washington, D.C., Greenville, SC and Florida; and
Properties held for sale.
We believe our present capital structure, liquidity and land provide us with years of opportunities to increase recurring revenue and long-term value for our shareholders. We intend to focus on our core business activity of real estate development, asset management and operations. We are developing a broad range of asset types that we believe will provide acceptable rates of return, grow recurring revenues and support future business. Capital commitments will be funded with operational cash flow from existing assets, existing cash, owned-land, partner capital and financing arrangements. Timing of projects may be subject to delays caused by factors beyond our control.
Reportable Segments
We conduct primarily all of our business in the following four reportable segments: (1) multifamily (2) industrial and commercial (3) mining royalty lands and (4) development.
Multifamily Segment.
As of March 31, 2026, the Multifamily segment included six stabilized joint ventures which own and manage apartment buildings and any associated retail. These assets create revenue and cash flows through tenant rental
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payments and reimbursements for building operating costs. The Company’s residential units typically lease for 12 – 15-month lease terms. If no notice to move out or renew is made, then the leases go month-to-month until notification of termination or renewal is received. Renewal terms are typically 9 – 12 months. The Company also leases retail spaces at apartment/mixed-use properties. The retail leases are typically 10 - 15-year leases with options to renew for another five years. Retail leases at these properties also include percentage rents which collect on average 3-6% of annual sales when a tenant exceeds a breakpoint stipulated by each individual lease. All base rent revenue is recognized on a straight-line basis. The major cash outlays incurred in this segment are for property taxes, full service maintenance, property management, utilities and marketing. The six multifamily properties are as follows:
| Property and Occupancy | JV Partners | Method of Accounting | % Ownership | ||||||||
| Dock 79, Washington, D.C., 305 apartment units and 14,430 square feet of retail | MRP Realty & Steuart Investment Company | Consolidated | 52.8% | ||||||||
| The Maren, Washington, D.C., 264 residential units and 6,811 square feet of retail | MRP Realty & Steuart Investment Company | Consolidated | 56.33% | ||||||||
| The Verge, Washington, D.C., 344 apartments and 8,536 square feet of retail. | MRP Realty | Equity Method | 61.37% | ||||||||
| Riverside, Greenville, SC, 200 apartment units | Woodfield Development | Equity Method | 40% | ||||||||
| Bryant Street, Washington D.C., 487 apartments, 91,520 square feet of retail | MRP Realty | Equity Method | 72.10% | ||||||||
| .408 Jackson, Greenville, SC, 227 apartments, 4,539 square feet of retail. | Woodfield Development | Equity Method | 40% | ||||||||
Industrial and Commercial Segment.
The Industrial and Commercial segment owns, leases and manages commercial properties. These assets create revenue and cash flows through tenant rental payments, lease management fees and reimbursements for building operating costs. The Company’s industrial warehouses typically lease for terms ranging from 3 – 10 years often with one or two renewal options. All base rent revenue is recognized on a straight-lined basis. All of the commercial warehouse leases are triple net and common area maintenance costs (CAM Revenue) are billed monthly, and insurance and real estate taxes are billed annually. Office leases are also recognized on a straight-lined basis. The major cash outlays incurred in this segment are for operating expenses, real estate taxes, building repairs, lease commissions and other lease closing costs, construction of tenant improvements, capital to acquire existing operating buildings and closing costs related thereto and personnel costs of our property management team.
As of March 31, 2026, the Industrial and Commercial Segment includes five commercial properties owned by the Company in fee simple as follows:
1)34 Loveton Circle in suburban Baltimore County, MD consists of one office building totaling 33,708 square feet which is 59.3% occupied (25% of the space is occupied by the Company for use as our Baltimore headquarters). The property is subject to commercial leases with various tenants.
2)155 E. 21st Street in Duval County, FL was an prior office building property that remained under lease through March 31, 2026. The lease expired April 1, 2026 and this vacant parcel has minimal value.
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3)Cranberry Run Business Park in Harford County, MD consists of five industrial buildings totaling 267,737 square feet which are 43.4% leased and occupied. The property is subject to commercial leases with various tenants.
4)Hollander 95 Business Park in Baltimore City, MD consists of three industrial buildings totaling 247,340 square feet and two ground leases that are 100.0% leased and occupied.
5)755 Chelsea Road in Harford County, MD is a 258,279 square foot speculative industrial building. Our Development segment completed construction and it moved to this segment as of April 1, 2025.
Management focuses on several factors to measure our success on a comparative basis in this segment. The major factors we focus on are (1) net operating income growth, (2) growth in occupancy, (3) average annual occupancy rate (defined as the occupied square feet at the end of each month during a fiscal year divided by the number of months to date in that fiscal year as a percentage of the average number of square feet in the portfolio over that same time period), (4) tenant retention success rate (as a percentage of total square feet to be renewed), (5) building and refurbishing assets to meet Class A and Class B institutional grade classifications, and (6) reducing complexities and deferred capital expenditures to maximize sale price.
Mining Royalty Lands Segment.
Our Mining Royalty Lands segment owns several properties comprising approximately 16,640 acres currently under lease for mining rents or royalties (excluding the 4,280 acres owned by our Brooksville joint venture with Vulcan Materials). Other than one location in Virginia, all of these properties are located in Florida and Georgia. The Company leases land under long-term leases that grant the lessee the right to mine and sell sand and stone deposits from our property in exchange for royalty payments. A typical lease has an option to extend the lease for additional terms. The typical lease in this segment requires the tenant to pay us a royalty based on the number of tons of mined materials sold from our property during a given fiscal year multiplied by a percentage of the average annual sales price per ton sold. As a result of this royalty payment structure, we do not bear the cost risks associated with the mining operations, however, we are subject to the cyclical nature of the construction markets in these states as both volumes and prices tend to fluctuate through those cycles. In certain locations, typically where the sand and stone deposits on our property have been depleted but the tenant still has a need for the leased land, we collect a minimum annual rental amount. In the year ended December 31, 2025, aggregate royalty tons sold were 9.04 million.
The major expenses in this segment are comprised of collection and accounting for royalties, management’s oversight of the mining leases, land entitlement for post-mining uses and property taxes at our non-leased locations and at our Grandin location which, unlike our other leased mining locations, are not entirely paid by the tenant. As such, our costs in this business are very low as a percentage of revenue, are relatively stable and are not affected by increases in production at our locations. Our current mining tenants are Vulcan Materials, Martin Marietta, Cemex, Summit Materials and The Concrete Company.
Additionally, these locations provide us with opportunities for valuable “second lives” for these assets through proper land planning and entitlement.
Significant “Second life” Mining Lands:
| Location | Acreage | Status | ||||||
| Brooksville, FL | 4,280 +/- | Development of Regional Impact and County Land Use and Master Zoning in place for 5,800 residential unit, mixed-use development | ||||||
| Ft. Myers, FL | 1,907 +/- | Seeking to rezone and obtain entitlements to allow residential development of 497 units following mining operations and the extension of Alico Road | ||||||
| Total | 6,187 +/- | |||||||
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In late 2023, the Central Florida Expressway Authority (CFX) used its eminent domain power to take title to approximately 27.6 acres from the southern boundary of a parcel of the Company’s approximately 1,196-acre Lake Louisa property that is leased to Cemex. As required by Florida law, CFX deposited $2,582,000 into the registry of the Court, representing CFX’s good faith estimate of the value of the condemned property. As the Company’s tenant, Cemex is claiming a portion of the funds ultimately paid by CFX as business damages. The Company is litigating with CFX over the value of the condemned property. The condemnation proceeding is not expected to impact the lease with Cemex.
Development Segment.
Through our Development segment, we own and are continuously monitoring for their “highest and best use” several parcels of land that are in various stages of development. Our overall strategy in this segment is to convert all our non-income producing lands into income production through (i) an orderly process of constructing new commercial and residential buildings for us to own and operate or (ii) a sale to, or joint venture with, third parties. Additionally, our Development segment will purchase land or form joint ventures on new developments of land not previously owned by the Company.
Revenues in this segment are generated predominately from land sales and interim property rents. The significant cash outlays incurred in this segment are for land acquisition costs, entitlement costs, property taxes, design and permitting, the personnel costs of our in-house management team and horizontal and vertical construction costs.
Development Segment – Industrial and Commercial Projects under Development.
At March 31, 2026, this segment owned the following future development parcels:
1)54 acres of land that will be capable of supporting up to 635,000 square feet of industrial product located at 1001 Old Philadelphia Road in Aberdeen, MD (Crouse land adjacent to Cranberry Business Park).
2)170 acres of land located at 765 Mechanics Valley Road in Cecil County, MD that can accommodate 900,000 square feet of industrial development.
Development Segment – Land Held for Development or Sale.
At March 31, 2026, this segment was invested in the following development parcels:
1)Riverfront on the Anacostia: The Riverfront on the Anacostia property is a 5.8-acre parcel of real estate in Washington, D.C. that fronts the Anacostia River and is adjacent to the Washington Nationals Baseball Park. A revised Planned Unit Development (PUD) plan was approved in 2012 and permitted the Company to develop, in four phases, a four-building, mixed-use project, containing approximately 1,161,050 square feet. The approved development includes numerous publicly accessible open spaces and a waterfront esplanade along the Anacostia River. Phase 1 and 2 (Dock 79 & The Maren) are in the multifamily segment. The final two phases, Phase 3 and Phase 4 obtained second-stage PUD approval on October 10, 2025, permitting approximately 602,553 square feet of apartments (~590 units) with first floor retail. The PUD requires Phase 4 construction to commence within 3 years and commencing Phase 3 construction within 3 years after obtaining the Phase 4 certificate of occupancy. The net book value of this property is $9.3 million.
2)Square 664E: The Company’s Square 664E property is approximately two acres situated on the Anacostia River at the base of South Capitol Street less than half a mile down river from our Riverfront on the Anacostia property. This property is currently under lease to Vulcan Materials for use as a concrete batch plant through 2026. In March 2017, reconstruction of the bulkhead was completed at a
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cost of $4.2 million in anticipation of future high-rise development. The net book value of this property is $7.0 million.
3)Hampstead Trade Center: The Hampstead Trade Center property in Carroll County, MD is a 118-acre parcel located adjacent to the State Route 30 bypass. The parcel was previously zoned for industrial use, but our request for rezoning for residential use was approved in December 2018. Management believes this to be a higher and better use of the property. We are fully engaged in the formal process of seeking PUD entitlements for this tract, which is now known as “Hampstead Overlook”. This property is classified as Real estate held for investment, at cost on the balance sheet.
4)Windlass Run: In March 2016, the Company entered into an agreement with St. Johns Properties Inc., a Baltimore development company, to jointly develop the remaining lands of our Windlass Run Business Park, located in Middle River, MD, into a multi-building business park consisting of approximately 329,000 square feet of single-story office and retail space. The project will take place in several phases. Construction of the first phase, which includes two office buildings and two retail buildings totaling 100,030-square-feet (inclusive of 27,950 retail), commenced in the fourth quarter of 2017 and was completed in January 2019. At March 31, 2026 Phase I was 87.2% leased and occupied. In 2024, the partnership agreed to spend up to $1.0 million dollars to amend and modify 218,620 square feet of office and retail development for 153 for rent residential units, up to four (4) one-acre retail lots for ground lease opportunities, and maintain the flexibility to construct a single-story office building totaling 21,760 square feet.
5)Aberdeen Overlook: In October 2021, the Company entered into a loan agreement with CBR Aberdeen, LLC for $31.1 million in exchange for an interest rate of 10% and a 20% preferred return after which the Company is also entitled to a portion of proceeds from sales from a residential land development in Harford County, MD.
6)Estero: In August 2022, the Company invested $3.6 million for a 16% interest in a joint venture with Woodfield Development to purchase and develop 46 acres in Estero, FL into a mixed-use project with 596 multifamily units, 60,000 square feet of commercial space, 20,000 square feet of office space and a boutique 170-key hotel. While the joint venture rezoned the property, the Company received a preferred return of 8% with an option to roll its investment into equity in the vertical development or exit at that point. On September 12, 2025, we secured construction financing for the first phase (296 multifamily units and 28,745 square feet of retail) and agreed to invest $7.7 million to maintain our 16% interest.
7)Buzzard Point: In November 2022, the Company entered into a contribution agreement with MRP and Steuart Investment Company (SIC) regarding potential development of an estimated 1,200 multifamily units in four phases on land owned by SIC. The Company entered into a separate agreement with MRP to perform pre-development obligations for the contribution agreement. The Company owns 50% of the partnership with MRP.
8)Woven: In August 2023, the Company entered into an agreement with Woodfield Development for the acquisition and development our third multifamily project in Greenville, SC. On May 30, 2025, we secured construction financing for the $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. The project broke ground during the 3rd quarter and substantial completion of the project is expected in late 2027.
9)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. Substantial completion of both projects is expected in the second quarter of 2026. On
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October 21, 2025 we purchased the interests of Altman Logistics in these two joint ventures and now own 100% of both of these projects.
10)Camp Lake: On July 23, 2025, 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. Substantial completion of the first warehouse is expected in the first quarter of 2027.
11)Altman Logistics business acquisition: On October 21, 2025, the Company completed the closing on its Purchase and Sales Agreement to acquire the business operations and development pipeline of Altman Logistics Properties, LLC, an operating platform of BBX Capital. The following table details the projects purchased and the square feet (SF) of the warehouses:
| City | Street Address | 36’ Clear Height SF | Ownership Acquired | Status | ||||||||||
| Delray Beach, FL | 14130 S State Rd. 7 | 199,476 | 10%(1) | Completed Q1 2026 | ||||||||||
| Delray Beach, FL | 14130 S State Rd. 7 | 392,976 | 10% (1) | Land for 2 warehouses | ||||||||||
| Hamilton, NJ | 600 Horizon Dr. | 170,800 | 8.5% (1) | Substantial completion Q1 2026 | ||||||||||
| Parsippany, NJ | 8 Lanidex Plaza W. | 140,031 | 10% (1) | Substantial completion Q2 2026 | ||||||||||
| Southwest Ranches, FL | SW 202nd Ave. & Sheridan St. | 335,617 | Land acquisition contract 2026 | |||||||||||
(1) General Partner investment, distributions will be based upon waterfall model.
Joint ventures where FRP is not the primary beneficiary (including those in the Multifamily Segment) are not consolidated and are reflected in the line “Investment in joint ventures” on the balance sheet and “Equity in loss of joint ventures” on the income statement. The following table summarizes the Company’s investments in unconsolidated joint ventures (in thousands):
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| FRP Ownership | The Company's Total Investment in Partnership | The Company's Share of Assets of the Partnership | The Company's Share of Debt of the Partnership | The Company's Share of Profit (Loss) of the Partnership | |||||||||||||||||||||||||
| As of March 31, 2026 | |||||||||||||||||||||||||||||
| Brooksville Quarry, LLC | 50.00 | % | $ | 7,517 | 7,200 | — | (12) | ||||||||||||||||||||||
| BC FRP Realty, LLC | 50.00 | % | 5,103 | 11,869 | 6,790 | 72 | |||||||||||||||||||||||
| Buzzard Point Sponsor, LLC | 50.00 | % | 2,678 | 2,678 | — | — | |||||||||||||||||||||||
| Bryant Street Partnerships | 72.10 | % | 57,873 | 132,415 | 78,256 | (1,693) | |||||||||||||||||||||||
| Lending ventures | — | % | 16,575 | — | — | — | |||||||||||||||||||||||
| Industrial partnerships | 9.63 | % | 8,428 | 11,551 | 4,510 | (39) | |||||||||||||||||||||||
| Greenville Woven | 64.85 | % | 12,253 | 17,832 | 4,021 | — | |||||||||||||||||||||||
| Estero Partnership | 16.00 | % | 9,371 | 12,127 | 1,318 | — | |||||||||||||||||||||||
| The Verge Partnership | 61.37 | % | 33,529 | 74,183 | 42,077 | (697) | |||||||||||||||||||||||
| Greenville Partnerships | 40.00 | % | 817 | 35,059 | 32,068 | (246) | |||||||||||||||||||||||
| Total | $ | 154,144 | 304,914 | 169,040 | (2,615) | ||||||||||||||||||||||||
The major classes of assets, liabilities and equity of the Company’s unconsolidated joint ventures as of March 31, 2026 are summarized in the following two tables (in thousands):
| As of March 31, 2026 | ||||||||||||||||||||||||||||||||||||||
| Buzzard Point Sponsor, LLC | Bryant Street Partnerships | Estero Partnership | Verge Partnership | Greenville Partnerships | Total Multifamily JV’s | |||||||||||||||||||||||||||||||||
| Investments in real estate, net | $ | 0 | 172,986 | 70,448 | 118,898 | 112,715 | $ | 475,047 | ||||||||||||||||||||||||||||||
| Cash and restricted cash | 0 | 2,521 | 5,111 | 1,463 | 2,172 | 11,267 | ||||||||||||||||||||||||||||||||
| Unrealized rents & receivables | 0 | 7,042 | 236 | 420 | 116 | 7,814 | ||||||||||||||||||||||||||||||||
| Deferred costs | 5,356 | 1,169 | 0 | 96 | 141 | 6,762 | ||||||||||||||||||||||||||||||||
| Total Assets | $ | 5,356 | 183,718 | 75,795 | 120,877 | 115,144 | $ | 500,890 | ||||||||||||||||||||||||||||||
| Secured notes payable | $ | 0 | 108,576 | 8,235 | 68,562 | 86,371 | $ | 271,744 | ||||||||||||||||||||||||||||||
| Other liabilities | 0 | 1,927 | 5,280 | 1,263 | 4,855 | 13,325 | ||||||||||||||||||||||||||||||||
| Capital – FRP | 2,678 | 55,274 | 9,509 | 31,255 | 12,139 | 110,855 | ||||||||||||||||||||||||||||||||
| Capital – Third Parties | 2,678 | 17,941 | 52,771 | 19,797 | 11,779 | 104,966 | ||||||||||||||||||||||||||||||||
| Total Liabilities and Capital | $ | 5,356 | 183,718 | 75,795 | 120,877 | 115,144 | $ | 500,890 | ||||||||||||||||||||||||||||||
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| Industrial Partnerships | Brooksville Quarry, LLC | BC FRP Realty, LLC | Lending Ventures | Multifamily JV’s | Grand Total | ||||||||||||||||||||||||||||||||||||
| Investments in real estate, net | $ | 119,215 | 14,349 | 21,633 | 13,200 | 475,047 | $ | 643,444 | |||||||||||||||||||||||||||||||||
| Cash and restricted cash | 760 | 44 | 1,409 | 0 | 11,267 | 13,480 | |||||||||||||||||||||||||||||||||||
| Unrealized rents & receivables | 0 | 0 | 451 | 0 | 7,814 | 8,265 | |||||||||||||||||||||||||||||||||||
| Deferred costs | 0 | 7 | 245 | 0 | 6,762 | 7,014 | |||||||||||||||||||||||||||||||||||
| Total Assets | $ | 119,975 | 14,400 | 23,738 | 13,200 | 500,890 | $ | 672,203 | |||||||||||||||||||||||||||||||||
| Secured notes payable | $ | 46,843 | 0 | 13,580 | (3,375) | 271,744 | $ | 328,792 | |||||||||||||||||||||||||||||||||
| Other liabilities | 6,163 | 21 | 274 | 0 | 13,325 | 19,783 | |||||||||||||||||||||||||||||||||||
| Capital – FRP | 7,239 | 7,517 | 4,942 | 16,575 | 110,855 | 147,128 | |||||||||||||||||||||||||||||||||||
| Capital – Third Parties | 59,730 | 6,862 | 4,942 | 0 | 104,966 | 176,500 | |||||||||||||||||||||||||||||||||||
| Total Liabilities and Capital | $ | 119,975 | 14,400 | 23,738 | 13,200 | 500,890 | $ | 672,203 | |||||||||||||||||||||||||||||||||
The following table presents the calculation of the Company's pro rata share of certain balance sheet items by segment as of March 31, 2026:
| Pro rata balance sheet (in thousands) | Multifamily | Industrial and Commercial | Mining Royalty Lands | Development | Corporate | Total | |||||||||||||||||||||||||||||
| Consolidated assets | $ | 325,139 | 62,205 | 47,683 | 204,113 | 111,249 | $ | 750,389 | |||||||||||||||||||||||||||
| Investments in unconsolidated joint ventures | (92,219) | (7,517) | (54,408) | (154,144) | |||||||||||||||||||||||||||||||
| Company's share of assets in unconsolidated joint ventures | 241,657 | 7,200 | 56,057 | 304,914 | |||||||||||||||||||||||||||||||
| Noncontrolling interest in consolidated assets | (105,212) | (1,046) | (1,298) | (107,556) | |||||||||||||||||||||||||||||||
| Pro rata assets | $ | 369,365 | 62,205 | 47,366 | 204,716 | 109,951 | $ | 793,603 | |||||||||||||||||||||||||||
| Consolidated secured notes payable | 179,037 | 18,379 | 6,500 | 203,916 | |||||||||||||||||||||||||||||||
| Company's share of debt in unconsolidated joint ventures | 156,422 | 12,618 | 169,040 | ||||||||||||||||||||||||||||||||
| Noncontrolling interest in consolidated debt | (81,424) | — | (81,424) | ||||||||||||||||||||||||||||||||
| Pro rata debt | $ | 254,035 | — | — | 30,997 | 6,500 | $ | 291,532 | |||||||||||||||||||||||||||
| Pro rata assets less debt | $ | 115,330 | 62,205 | 47,366 | 173,719 | 103,451 | $ | 502,071 | |||||||||||||||||||||||||||
| Deferred income taxes | (66,901) | ||||||||||||||||||||||||||||||||||
| Other liabilities and noncontrolling interest adjustment | (6,992) | ||||||||||||||||||||||||||||||||||
| Consolidated shareholder's equity | $ | 428,178 | |||||||||||||||||||||||||||||||||
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First Quarter Financial Highlights
•Net loss of ($0.7) million vs $1.7 million net income primarily due to $1.5 million increase in G&A, $0.9 million lower interest income, and lower occupancy in our Multifamily and Industrial segments.
•5% decrease in pro rata NOI ($8.9 million vs $9.4 million) driven by lower occupancy and elevated costs in the Multifamily segment, partially offset by strong Mining Royalty Lands performance.
•12% decrease in the Multifamily segment’s pro rata NOI primarily due to lower occupancy and higher costs at our DC assets.
•33% decrease in Industrial and Commercial segment NOI primarily due to vacancies from an eviction of one tenant and lease expirations.
•15% increase in Mining Royalty Lands segment NOI driven by a 7.9% rise in royalties tons and a 6.5% increase in royalty revenue per ton.
Executive Summary and Analysis
The headwinds we experienced last year continued to affect results into this year’s first quarter. Oversupply in DC multifamily continues to hamper rent growth and occupancy levels while expenses have risen unabated. We still have significant vacancies in our industrial assets in Maryland, which combined with the increase in general and administrative expense associated with the Altman acquisition have served to put downward pressure on earnings and NOI compared to the same period last year, mitigated to some extent by the increases in mining royalties. None of these factors are new developments, and our focus on leasing remains the same. What is new is the activity in the leasing space this year relative to 2025, which management finds particularly heartening. Same store occupancy levels and rent growth are perhaps our most important driver for earnings, FFO, and NOI growth, because they require very little in capex and the impact is nearly immediate. Looking forward to the rest of 2026, our focus in the near-term is capitalizing on the increase in leasing activity to bolster our same store assets and return occupancy back to historic norms; control and minimize expenses in our multifamily assets where possible to limit the impact of a soft market; and finally execute on the industrial assets we have under development to set the company up for future growth.
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Comparative Results of Operations for the three months ended March 31, 2026 and 2025
Consolidated Results
(dollars in thousands) | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Change | % | ||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Lease revenue | $ | 6,713 | 7,072 | $ | (359) | -5.1 | % | ||||||||||||||||||||||||||||
| Mining royalty and rents | 3,717 | 3,234 | 483 | 14.9 | % | ||||||||||||||||||||||||||||||
| Joint venture management fee revenue | 164 | — | 164 | ||||||||||||||||||||||||||||||||
| Total revenues | 10,594 | 10,306 | 288 | 2.8 | % | ||||||||||||||||||||||||||||||
| Cost of operations: | |||||||||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 2,842 | 2,607 | 235 | 9.0 | % | ||||||||||||||||||||||||||||||
| Operating expenses | 2,130 | 1,859 | 271 | 14.6 | % | ||||||||||||||||||||||||||||||
| Property taxes | 1,025 | 938 | 87 | 9.3 | % | ||||||||||||||||||||||||||||||
| General and administrative | 4,085 | 2,577 | 1,508 | 58.5 | % | ||||||||||||||||||||||||||||||
| Total cost of operations | 10,082 | 7,981 | 2,101 | 26.3 | % | ||||||||||||||||||||||||||||||
| Total operating profit | 512 | 2,325 | (1,813) | -78.0 | % | ||||||||||||||||||||||||||||||
| Net investment income | 1,688 | 2,561 | (873) | -34.1 | % | ||||||||||||||||||||||||||||||
| Interest expense | (708) | (695) | (13) | 1.9 | % | ||||||||||||||||||||||||||||||
| Equity in loss of joint ventures | (2,615) | (2,031) | (584) | 28.8 | % | ||||||||||||||||||||||||||||||
| Income before income taxes | (1,123) | 2,160 | (3,283) | -152.0 | % | ||||||||||||||||||||||||||||||
| Provision for income taxes | (202) | 526 | (728) | -138.4 | % | ||||||||||||||||||||||||||||||
| Net income (loss) | (921) | 1,634 | (2,555) | -156.4 | % | ||||||||||||||||||||||||||||||
| Income (loss) attributable to noncontrolling interest | (234) | (76) | (158) | 207.9 | % | ||||||||||||||||||||||||||||||
| Net income (loss) attributable to the Company | $ | (687) | 1,710 | $ | (2,397) | -140.2 | % | ||||||||||||||||||||||||||||
Net loss for the first quarter of 2026 was $(687,000) or $(.04) per share versus income of $1,710,000 or $.09 per share in the same period last year. Pro rata NOI for the first quarter of 2026 was $8,861,000 versus $9,364,000 in the same period last year. The first quarter of 2026 was impacted by the following items:
•Operating profit decreased $1,813,000 primarily due to $1,508,000 higher General & administrative costs. G&A costs included $311,000 higher audit fees, $173,000 of valuation and accounting consulting fees, $110,000 of IT consulting, and higher wages, all primarily related to the Altman acquisition. The consolidated portion of the Multifamily segment (Dock/Maren) decreased $357,000 due to uncollectable revenue and higher operating expenses and property taxes. The Industrial and Commercial segment operating profit declined $462,000 with $298,000 due to $218,000 of depreciation and $80,000 of carrying costs on our Chelsea spec warehouse placed in service in April 2025 along with non-renewing leases. Mining Royalty Land's segment operating profit increased $432,000 due to higher royalty tons
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and revenues less related depletion. Development segment operating profit increased $82,000 due to joint venture management fee revenues partially offset by less capitalized real estate taxes.
•Net investment income decreased $873,000 because of reduced earnings on cash equivalents ($650,000) due to lower balances and interest rates and lower income from our lending ventures ($223,000) on smaller loan balances outstanding.
•Equity in loss of joint ventures was an unfavorable $584,000 due to higher losses at Bryant Street ($437,000) and Verge ($128,000) both due to lower revenues and higher expenses. Bryant Street expenses included $125,000 for exploratory refinancing costs and $40,000 for the annual tax returns.
•Pro rata NOI decreased $503,000 driven by declines in the Multifamily segment NOI ($546,000), Industrial segment ($381,000), and Development segment ($74,000), partially offset by higher Mining Royalty segment NOI ($498,000).
Multifamily Segment (Pro rata consolidated and pro rata unconsolidated)
| Three months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 2026 | % | 2025 | % | Change | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Lease revenue | $ | 8,014 | 100.0 | % | 8,305 | 100.0 | % | (291) | -3.5 | % | |||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,375 | 42.1 | % | 3,287 | 39.6 | % | 88 | 2.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses | 2,889 | 36.0 | % | 2,625 | 31.6 | % | 264 | 10.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Property taxes | 950 | 11.9 | % | 970 | 11.7 | % | (20) | -2.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Cost of operations | 7,214 | 90.0 | % | 6,882 | 82.9 | % | 332 | 4.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Operating profit before G&A | $ | 800 | 10.0 | % | 1,423 | 17.1 | % | (623) | -43.8 | % | |||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 3,375 | 3,287 | 88 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized rents & other | (91) | (80) | (11) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net operating income | $ | 4,084 | 51.0 | % | 4,630 | 55.7 | % | (546) | -11.8 | % | |||||||||||||||||||||||||||||||||||||||||||
The combined consolidated and unconsolidated pro rata net operating income this quarter for this segment was $4,084,000, down $546,000 or 12% compared to $4,630,000 in the same quarter last year. Most of this decrease was due to lower occupancy and higher costs at our DC assets.
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| Apartment Building | Units | Pro rata NOI Q1 2026 | Pro rata NOI Q1 2025 | Avg. Occupancy Q1 2026 | Avg. Occupancy Q1 2025 | Renewal Success Rate Q1 2026 | Renewal % increase Q1 2026 | ||||||||||||||||
| Dock 79 Anacostia DC | 305 | $801,000 | $905,000 | 89.3 | % | 95.6 | % | 63.6 | % | 6.1 | % | ||||||||||||
| Maren Anacostia DC | 264 | $759,000 | $855,000 | 91.6 | % | 93.9 | % | 55.6 | % | 3.7 | % | ||||||||||||
| Riverside Greenville | 200 | $234,000 | $222,000 | 97.0 | % | 92.9 | % | 60.6 | % | 0.6 | % | ||||||||||||
| Bryant Street DC | 487 | $1,344,000 | $1,539,000 | 92.1 | % | 92.5 | % | 63.6 | % | 1.9 | % | ||||||||||||
| .408 Jackson Greenville | 227 | $341,000 | $356,000 | 95.3 | % | 97.2 | % | 41.9 | % | 5.3 | % | ||||||||||||
| Verge Anacostia DC | 344 | $605,000 | $753,000 | 89.8 | % | 93.5 | % | 62.5 | % | 1.2 | % | ||||||||||||
| Multifamily Segment | 1,827 | $4,084,000 | $4,630,000 | 92.1 | % | 94.0 | % | ||||||||||||||||
Multifamily Segment (Consolidated - Dock 79 & The Maren)
| Three months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 2026 | % | 2025 | % | Change | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Lease revenue | $ | 5,195 | 100.0 | % | 5,424 | 100.0 | % | (229) | -4.2 | % | |||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 2,007 | 38.7 | % | 1,995 | 36.8 | % | 12 | .6 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses | 1,726 | 33.2 | % | 1,585 | 29.2 | % | 141 | 8.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Property taxes | 610 | 11.7 | % | 635 | 11.7 | % | (25) | -3.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Cost of operations | 4,343 | 83.6 | % | 4,215 | 77.7 | % | 128 | 3.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Operating profit before G&A | $ | 852 | 16.4 | % | 1,209 | 22.3 | % | (357) | -29.5 | % | |||||||||||||||||||||||||||||||||||||||||||
Total revenues for our two consolidated joint ventures were $5,195,000, a decrease of $229,000 versus $5,424,000 in the same period last year primarily due to lower occupancy and concessions. Total operating profit before G&A for the consolidated joint ventures was $852,000, a decrease of $357,000, or 30% versus $1,209,000 in the same period last year primarily due to lower revenues along with higher operating 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.
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| Three months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 2026 | % | 2025 | % | Change | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Lease revenue | $ | 5,181 | 100.0 | % | 5,349 | 100.0 | % | (168) | -3.1 | % | |||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 2,276 | 43.9 | % | 2,193 | 41.0 | % | 83 | 3.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses | 1,974 | 38.1 | % | 1,780 | 33.3 | % | 194 | 10.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Property taxes | 618 | 11.9 | % | 625 | 11.7 | % | (7) | -1.1 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Cost of operations | 4,868 | 94.0 | % | 4,598 | 86.0 | % | 270 | 5.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Operating profit before G&A | $ | 313 | 6.0 | % | 751 | 14.0 | % | (438) | -58.3 | % | |||||||||||||||||||||||||||||||||||||||||||
For our four unconsolidated joint ventures, pro rata revenues were $5,181,000, a decrease of $168,000 or 3% compared to $5,349,000 in the same period last year. Pro rata operating profit before G&A was $313,000, a decrease of $438,000 or 58% versus $751,000 in the same period last year. The decrease was primarily due to lower occupancy at The Verge and higher costs at Bryant Street.
Industrial and Commercial Segment
| Three months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 2026 | % | 2025 | % | Change | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Lease revenue | $ | 1,200 | 100.0 | % | 1,347 | 100.0 | % | (147) | (10.9 | %) | |||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 566 | 47.1 | % | 391 | 29.1 | % | 175 | 44.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses | 326 | 27.2 | % | 233 | 17.3 | % | 93 | 39.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Property taxes | 127 | 10.6 | % | 80 | 5.9 | % | 47 | 58.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Cost of operations | 1,019 | 84.9 | % | 704 | 52.3 | % | 315 | 44.7 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Operating profit before G&A | $ | 181 | 15.1 | % | 643 | 47.7 | % | (462) | (71.9 | %) | |||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 566 | 391 | 175 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized revenues | 11 | 105 | (94) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net operating income | $ | 758 | 63.2 | % | $ | 1,139 | 84.6 | % | $ | (381) | (33.5 | %) | |||||||||||||||||||||||||||||||||||||||||
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 59.3% was leased and occupied at March 31, 2026. Excluding Chelsea these assets were 69.9% leased and occupied during the quarter compared to 85.2% leased and occupied during the same quarter last year primarily due to an eviction and lease expirations. Total revenues in this segment were $1,200,000, down $147,000 or 11%, over the same period last year. Operating profit before G&A was $181,000, down $462,000 or 72% over the same quarter last year due to $218,000 of depreciation and $80,000 of operating costs at Chelsea along with the lower occupancy. Net operating income in this segment was $758,000, down $381,000 or 33% compared to the same quarter last year.
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Mining Royalty Lands Segment Results
| Three months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 2026 | % | 2025 | % | Change | % | |||||||||||||||||||||||||||||||||||||||||||||||
| Mining royalty and rent revenue | $ | 3,717 | 100.0 | % | 3,234 | 100.0 | % | 483 | 14.9 | % | |||||||||||||||||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 226 | 6.1 | % | 178 | 5.5 | % | 48 | 27.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Operating expenses | 19 | 0.5 | % | 16 | 0.5 | % | 3 | 18.8 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Property taxes | 75 | 2.0 | % | 75 | 2.3 | % | — | — | % | ||||||||||||||||||||||||||||||||||||||||||||
| Cost of operations | 320 | 8.6 | % | 269 | 8.3 | % | 51 | 19.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
| Operating profit before G&A | $ | 3,397 | 91.4 | % | 2,965 | 91.7 | % | 432 | 14.6 | % | |||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 226 | 178 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized revenues | 159 | 141 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Net operating income | $ | 3,782 | 101.7 | % | $ | 3,284 | 101.5 | % | $ | 498 | 15.2 | % | |||||||||||||||||||||||||||||||||||||||||
Total revenues in this segment were $3,717,000, an increase of $483,000 or 15% versus $3,234,000 in the same period last year. Royalty tons were up 7.9%. Royalty revenue per ton increased 6.5% over the same period last year. Total operating profit before G&A in this segment was $3,397,000, an increase of $432,000 versus $2,965,000 in the same period last year. Net operating income was $3,782,000, up $498,000 or 15% compared to the same quarter last year.
Development Segment Results
| Three months ended March 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | Change | |||||||||||||||||||||||||||||||||||||||||
| Lease revenue | $ | 319 | 301 | 18 | ||||||||||||||||||||||||||||||||||||||||
| Joint venture management fee revenue | 163 | — | 163 | |||||||||||||||||||||||||||||||||||||||||
| Total revenues | 482 | 301 | 181 | |||||||||||||||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 43 | 43 | — | |||||||||||||||||||||||||||||||||||||||||
| Operating expenses | 59 | 25 | 34 | |||||||||||||||||||||||||||||||||||||||||
| Property taxes | 213 | 148 | 65 | |||||||||||||||||||||||||||||||||||||||||
| Cost of operations | 315 | 216 | 99 | |||||||||||||||||||||||||||||||||||||||||
| Operating profit before G&A | $ | 167 | 85 | 82 | ||||||||||||||||||||||||||||||||||||||||
Joint venture management fee revenues primarily represent fees earned from the Company's three minority ownership warehouse projects acquired October 21, 2025. Property taxes increased because Phase III at
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Riverfront received second-stage PUD approval on October 10, 2025 and is not currently in development; accordingly, carrying costs are now being expensed rather than capitalized.
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 $28.1 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, 228 lots have been sold and $30.0 million has been returned to the company of which $7.1 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. Substantial completion of both projects is expected in the second quarter of 2026. On October 21, 2025 we purchased the interests of Altman Logistics.
▪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. The project broke ground during the 3rd quarter and substantial completion of the project is expected in late 2027.
▪On July 23,2025, 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. Substantial completion of the first warehouse is expected in the first quarter of 2027.
▪On September 12, 2025, we secured construction financing for the first phase (296 multifamily units and 28,745 square feet of retail) of our Estero joint venture with Woodfield Development, located between Naples and Ft. Myers. Substantial completion is expected late 2027.
▪On October 21, 2025, the Company completed the closing on its Purchase and Sales Agreement to acquire the business operations and development pipeline of Altman Logistics Properties, LLC, an operating platform of BBX Capital. In conjunction with the acquisition, the Company hired six of Altman Logistic's employees. The following table details the projects purchased and the square feet (SF) of the warehouses:
| City | Street Address | 36’ Clear Height SF | Ownership Acquired | Status | ||||||||||
| Delray Beach, FL | 14130 S State Rd. 7 | 199,476 | 10%(1) | Completed Q1 2026 | ||||||||||
| Delray Beach, FL | 14130 S State Rd. 7 | 392,976 | 10% (1) | Land for 2 warehouses | ||||||||||
| Hamilton, NJ | 600 Horizon Dr. | 170,800 | 8.5% (1) | Substantial completion Q1 2026 | ||||||||||
| Parsippany, NJ | 8 Lanidex Plaza W. | 140,031 | 10% (1) | Substantial completion Q2 2026 | ||||||||||
| Southwest Ranches, FL | SW 202nd Ave. & Sheridan St. | 335,617 | Land acquisition contract 2026 | |||||||||||
(1) General Partner investment, distributions will be based upon waterfall model.
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Liquidity and Capital Resources. The growth of the Company’s businesses requires significant cash needs to acquire and develop land or operating buildings and to construct new buildings and tenant improvements. As of March 31, 2026, we had $107,859,000 of cash and cash equivalents. As of March 31, 2026 we had $6.5 million borrowed under our $50 million Wells Fargo revolver to fund the Woven bridge loan, $410,000 outstanding under letters of credit and $43,090,000 available to borrow under the revolver.
Cash Flows - The following table summarizes our cash flows from operating, investing and financing activities for each of the periods presented (in thousands of dollars):
Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Total cash provided by (used for): | |||||||||||||||||
| Operating activities | $ | 9,670 | 4,503 | ||||||||||||||
| Investing activities | (17,931) | 465 | |||||||||||||||
| Financing activities | 10,759 | (11,269) | |||||||||||||||
| Increase (decrease) in cash and cash equivalents | $ | 2,498 | (6,301) | ||||||||||||||
| Outstanding debt at the beginning of the period | 192,554 | 178,853 | |||||||||||||||
| Outstanding debt at the end of the period | 203,916 | 178,250 | |||||||||||||||
Operating Activities - Net cash provided by operating activities for the three months ended March 31, 2026 was $9,670,000 versus $4,503,000 in the same period last year. The increase was primarily due to higher accounts payable and accrued liabilities due to the timing of construction in progress payments partially offset by lower net income.
Investing Activities - Net cash used in investing activities for the three months ended March 31, 2026 was $17,931,000 versus $465,000 provided in the same period last year. The $18.4 million increase was due to a $10.3 million increase in investment in properties (primarily Davie, Camp Lake, and Lakeland) combined with a $7.2 million increase in investments in joint ventures (primarily Estero, Aberdeen, and Woven) and with a $0.9 million decrease in return of capital from joint ventures.
Financing Activities – Net cash provided by financing activities was $10,759,000 versus $11,269,000 used by financing activities in the same period last year primarily due to $11.5 million draws on the loans in the current year compared to $10.7 million distribution to noncontrolling interests related to the the planned increase in ownership of our partnerships with Altman Logistics at the construction loan closings.
Credit Facilities - On July 21, 2025, the Company entered into a 2025 Amended and Restated Credit Agreement (the "Credit Agreement") with Wells Fargo Bank, N.A. (“Wells Fargo”). 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 Daily Simple SOFR. A commitment fee of 0.35% per annum is payable quarterly on the unused portion of the commitment. The credit agreement contains certain conditions and financial covenants, including a minimum tangible net worth and dividend restriction. As of March 31, 2026, these covenants would have limited our ability to pay dividends to a maximum of $87.0 million combined.
On March 19, 2021, the Company refinanced Dock 79 and The Maren projects pursuant to separate Loan Agreements and Deed of Trust Notes entered into with Teachers Insurance and Annuity Association of America, LLC. Dock 79 and The Maren borrowed principal sums of $92,070,000 and $88,000,000 respectively,
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in connection with the refinancing. The loans bear a fixed interest rate of 3.03% per annum, and require monthly payments of interest only with the principal in full due April 1, 2033.
On July 25, 2022 the Greenville partnership at Riverside secured a $32,000,000 loan with a fixed rate of 4.92% from Synovus Bank, replacing the $22,800,000 loan with Truist Bank. It is an eight year loan maturing July 25, 2030. The term coincides with when the opportunity zone holding period lapses in 2030, when a sale could take place and the tax on gain is forgiven.
On December 4, 2023 the Bryant Street partnership secured a $110,000,000 loan with a floating rate equal to SOFR plus 2.9% from Rialto Capital Management, replacing the $132,000,000 loan with Capital One. It is a three year loan with two one-year extensions. A SOFR rate cap was secured at 5.35% from Chatham Financial creating an effective interest rate ceiling of 8.25%. The loan has a floor interest rate of 6.90%. FRP will look to secure a fixed permanent loan in the future when interest rates are more favorable.
On January 30, 2024 the Greenville partnership at .408 Jackson secured a $49,450,000 loan with a fixed rate of 5.59% from Fannie Mae, replacing the $36,000,000 loan with First National Bank. It is a seven year loan maturing February 1, 2031. The interest rate was favorable given the current market conditions and the term coincides with when the opportunity zone holding period lapses in 2030, when a sale could take place and the tax on gain is forgiven. As a result of refinancing, the Company received a $5 million return of capital.
On April 25, 2024 the Verge partnership secured a $68,862,000 loan with a fixed rate of 5.72% from Fannie Mae, replacing the $72,823,000 loan with Truist Bank. It is a seven year loan maturing May 1, 2031. The opportunity zone holding period lapses in 2030, when a sale could take place and the tax on gain is forgiven.
On March 7, 2025 the Lakeland partnership secured a $16.0 million loan with a floating rate equal to SOFR plus 2.75% from Seacoast National Bank. It is a three-year construction/stabilization loan with a two-year conditional extension at SOFR plus 2.50% with an interest rate swap conversion.
On March 13, 2025 the Davie partnership secured a $31.9 million loan with a floating rate equal to SOFR plus 2.75% from Synovus National Bank. It is a three-year construction/stabilization loan with a two-year conditional extension at SOFR plus 2.25%.
On May 30, 2025 the Woven partnership secured a $42.9 million loan with a floating rate equal to SOFR plus 2.85% from Bank of Texas and First Horizon Bank. It is a four-year construction/stabilization loan and includes a one-year conditional extension with principal and interest payments.
On June 16, 2025 the BC Realty partnership refinanced our FRP provided floating rate construction loans on our two 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%.
On July 23, 2025 the Camp Lake partnership secured a $33.0 million loan at SOFR plus 2.75% from Pinnacle Bank. It is a three-year construction/stabilization loan with two one-year conditional extensions.
On September 15, 2025 the Estero partnership secured a $81.5 million loan at SOFR plus 2.75% from Santander Bank. It is a four-year construction/stabilization loan with two one-year conditional extensions. In addition, there is an $8 million loan at SOFR plus 4.25% from Santander Bank related to future phases.
On October 21, 2025 as part of the Altman Logistics platform acquisition the Company assumed minority equity ownership interests in three joint ventures which had existing construction debt agreements. Delray partnership secured a $23.8 million loan at SOFR plus 3.50% from City National Bank. It is a two-year construction loan issued April 4, 2024 with two one-year conditional extensions. The Delray partnership also secured a two-year $7.5 million loan at SOFR plus 3.75% on April 4, 2024 from City National for the land for future phases of the project, also with two one-year conditional extensions. Parsippany partnership secured a $22.0 million loan at SOFR plus 2.75% from Truist Bank. It is a three-year construction loan issued January 15, 2025 with a one-year conditional extension. Hamilton partnership secured a $20.5 million loan at SOFR
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plus 3.50% from the joint venture partner effective for three years from May 22, 2025 with two one-year conditional extensions.
Cash Requirements – The Company expects to invest $69 million into our existing real estate holdings and joint ventures during the remainder of 2026 and $113 million beyond 2026 for projects currently in our pipeline, with such capital being funded from cash and investments on hand, cash generated from operations, property sales, distributions from joint ventures, or borrowings under our credit facilities.
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), adjusted Pro rata net operating income, and adjusted Net income because we believe they assist investors and analysts in estimating our economic interest in our consolidated and unconsolidated partnerships, when read in conjunction with our reported results under GAAP. These measures are not, and should not be viewed as, a substitute for GAAP financial measures.
| Pro rata Net Operating Income Reconciliation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three months ending 3/31/26 (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Industrial and Commercial Segment | Development Segment | Multifamily Segment | Mining Royalties Segment | Unallocated Corporate Expenses | FRP Holdings Totals | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 138 | 768 | (1,893) | 2,590 | (2,524) | (921) | ||||||||||||||||||||||||||||||||||||||||||||||
| Income tax allocation | 43 | 236 | (510) | 795 | (766) | (202) | |||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 181 | 1,004 | (2,403) | 3,385 | (3,290) | (1,123) | |||||||||||||||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized rents | — | — | 46 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Management fee revenue | — | 163 | — | — | — | 163 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | 804 | 7 | 877 | 1,688 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Plus: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized rents | 11 | — | — | 159 | — | 124 | |||||||||||||||||||||||||||||||||||||||||||||||
| Professional fees | — | 12 | 51 | — | — | 63 | |||||||||||||||||||||||||||||||||||||||||||||||
| Equity in loss of joint ventures | — | (33) | 2,636 | 12 | — | 2,615 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | — | — | 626 | — | 82 | 708 | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation/amortization | 566 | 43 | 2,007 | 226 | — | 2,842 | |||||||||||||||||||||||||||||||||||||||||||||||
| General and administrative | — | — | — | — | 4,085 | 4,085 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net operating income (loss) | 758 | 59 | 2,864 | 3,782 | — | 7,463 | |||||||||||||||||||||||||||||||||||||||||||||||
| NOI of noncontrolling interest | — | — | (1,304) | — | — | (1,304) | |||||||||||||||||||||||||||||||||||||||||||||||
| Pro rata NOI from unconsolidated joint ventures | — | 178 | 2,524 | — | — | 2,702 | |||||||||||||||||||||||||||||||||||||||||||||||
| Pro rata net operating income | $ | 758 | 237 | 4,084 | 3,782 | — | 8,861 | ||||||||||||||||||||||||||||||||||||||||||||||
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| Pro rata Net Operating Income Reconciliation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three months ending 3/31/25 (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Industrial and Commercial Segment | Development Segment | Multifamily Segment | Mining Royalties Segment | Unallocated Corporate Expenses | FRP Holdings Totals | ||||||||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 492 | 905 | (1,169) | 2,259 | (853) | 1,634 | ||||||||||||||||||||||||||||||||||||||||||||||
| Income tax allocation | 151 | 278 | (369) | 694 | (228) | 526 | |||||||||||||||||||||||||||||||||||||||||||||||
| Income (loss) before income taxes | 643 | 1,183 | (1,538) | 2,953 | (1,081) | 2,160 | |||||||||||||||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized rents | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest income | — | 1,027 | — | — | 1,534 | 2,561 | |||||||||||||||||||||||||||||||||||||||||||||||
| Plus: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Unrealized rents | 105 | — | 3 | 141 | — | 249 | |||||||||||||||||||||||||||||||||||||||||||||||
| Professional fees | — | — | 31 | — | — | 31 | |||||||||||||||||||||||||||||||||||||||||||||||
| Equity in loss of joint ventures | — | (71) | 2,090 | 12 | — | 2,031 | |||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | — | — | 657 | — | 38 | 695 | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation/amortization | 391 | 43 | 1,995 | 178 | — | 2,607 | |||||||||||||||||||||||||||||||||||||||||||||||
| General and administrative | — | — | — | — | 2,577 | 2,577 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net operating income (loss) | 1,139 | 128 | 3,238 | 3,284 | — | 7,789 | |||||||||||||||||||||||||||||||||||||||||||||||
| NOI of noncontrolling interest | — | — | (1,478) | — | — | (1,478) | |||||||||||||||||||||||||||||||||||||||||||||||
| Pro rata NOI from unconsolidated joint ventures | — | 183 | 2,870 | — | — | 3,053 | |||||||||||||||||||||||||||||||||||||||||||||||
| Pro rata net operating income | $ | 1,139 | 311 | 4,630 | 3,284 | — | 9,364 | ||||||||||||||||||||||||||||||||||||||||||||||
Critical Accounting Policies – Management’s Discussion and Analysis of Financial Condition and Results of Operations is based upon our condensed consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP”). The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions that could affect the reported amounts in our condensed consolidated financial statements. Actual results could differ
from these estimates. Please refer to the section of our Annual Report on Form 10-K for the year ended December 31, 2025, entitled "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies” for a discussion of our critical accounting policies. During the three months ended March 31, 2026, there were no material changes to these policies.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
Interest Rate Risk - We are exposed to the impact of interest rate changes through our variable-rate borrowings under our Credit Agreement with Wells Fargo, our variable rate construction/stabilization loans, and earnings on our cash equivalents and variable rate lending ventures.
Applicable margin for borrowings at March 31, 2026 under the Wells Fargo Credit Agreement was Daily simple SOFR plus 2.25%. and under our variable rate construction/stabilization loans was Daily SOFR plus 2.75%. The Company had $25.3 million of variable rate debt outstanding at March 31, 2026, so a 100 basis point
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decrease in SOFR would increase cash flows before income taxes by $0.3 million annually. The Company had $111.7 million of cash equivalents and variable rate lending venture advances at March 31, 2026, so a 100 basis point increase in SOFR would reduced cash flows before income taxes by $1.1 million annually.
ITEM 4. CONTROLS AND PROCEDURES
CONCLUSION REGARDING THE EFFECTIVENESS OF DISCLOSURE CONTROLS AND PROCEDURES
The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosure.
The Company also maintains a system of internal accounting controls over financial reporting that are designed to provide reasonable assurance to the Company’s management and Board of Directors regarding the preparation and fair presentation of published financial statements.
All control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving the desired control objectives.
As of March 31, 2026, the Company, under the supervision and with the participation of the Company's management, including the CEO, CFO and CAO, carried out an evaluation of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on this evaluation, the Company’s CEO, CFO and CAO concluded that the Company's disclosure controls and procedures are effective in alerting them in a timely manner to material information required to be included in periodic SEC filings.
There have been no changes in the Company’s internal controls over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
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PART II. OTHER INFORMATION
Item 1A. RISK FACTORS
In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.
Item 2. PURCHASES OF EQUITY SECURITIES BY THE ISSUER
| Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||||||||||||||||||||||||||
| January 1 through January 31 | — | $ | — | — | $ | 6,899,000 | ||||||||||||||||||||||||||
| February 1 through February 28 | — | $ | — | — | $ | 6,899,000 | ||||||||||||||||||||||||||
| March 1 through March 31 | — | $ | — | — | $ | 6,899,000 | ||||||||||||||||||||||||||
| Total | — | $— | — | |||||||||||||||||||||||||||||
(1)On February 4, 2015, the Board of Directors authorized management to expend up to $5,000,000 to repurchase shares of the Company’s common stock from time to time as opportunities arise. On December 5, 2018, the Board of Directors approved a $10,000,000 increase in the Company’s stock repurchase authorization. On August 5, 2019, the Board of Directors approved a $10,000,000 increase in the Company’s stock repurchase authorization. On May 6, 2020, the Board of Directors approved a $10,000,000 increase in the Company’s stock repurchase authorization. On August 26, 2020, the Board of Directors approved a $10,000,000 increase in the Company’s stock repurchase authorization.
Item 6. EXHIBITS
(a)Exhibits. The response to this item is submitted as a separate Section entitled "Exhibit Index", on page 34.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
| FRP Holdings, Inc. | |||||||||||
Date: May 14, 2026 | By | JOHN D. BAKER III | |||||||||
| John D. Baker III | |||||||||||
| Chief Executive Officer | |||||||||||
| (Principal Executive Officer) | |||||||||||
| By | MATTHEW C. MCNULTY | ||||||||||
| Matthew C. McNulty | |||||||||||
| Chief Financial Officer & Treasurer | |||||||||||
| (Principal Financial Officer) | |||||||||||
| By | JOHN D. KLOPFENSTEIN | ||||||||||
| John D. Klopfenstein | |||||||||||
| Controller and Chief Accounting | |||||||||||
| Officer (Principal Accounting Officer) | |||||||||||
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FRP HOLDINGS, INC.
FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 2026
EXHIBIT INDEX
| (31)(a) | Certification of John D. Baker III. | ||||
| (31)(b) | Certification of Matthew C. McNulty | ||||
| (31)(c) | Certification of John D. Klopfenstein. | ||||
| (32) | Certification of Chief Executive Officer, Chief Financial Officer, and Controller and Chief Accounting Officer under Section 906 of the Sarbanes-Oxley Act of 2002. | ||||
| 101.XSD | XBRL Taxonomy Extension Schema | ||||
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase | ||||
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase | ||||
| 101.LAB | XBRL Taxonomy Extension Label Linkbase | ||||
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase | ||||
| 104. | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | ||||
FAQ
How did FRP Holdings (FRPH) perform financially in Q1 2026?
FRP reported a net loss of $0.7 million, or -$0.04 per share, versus net income of $1.7 million or $0.09 per share a year earlier. Revenue increased slightly to $10.6 million, but higher expenses and joint venture losses drove the loss.
What happened to FRPH’s segment-level NOI in Q1 2026?
Pro rata NOI fell 5% to $8.9 million, down from $9.4 million in Q1 2025. Multifamily NOI declined 12% to $4.1 million, industrial/commercial NOI dropped 33.5% to $0.8 million, while mining royalty lands NOI rose 15.2% to $3.8 million.
How strong was FRP Holdings’ mining royalty business in Q1 2026?
Mining royalty lands were a key strength, with revenue up 15% to $3.7 million and net operating income up 15.2% to $3.8 million. Royalty tons rose 7.9% and royalty revenue per ton increased 6.5%, reflecting both volume and pricing gains.
What is FRPH’s liquidity and debt position as of March 31, 2026?
FRP held $107.9 million in cash, cash equivalents and restricted cash at quarter-end. Total notes payable were $203.9 million, including $180.1 million of fixed-rate mortgage loans and $6.5 million drawn on a $50 million Wells Fargo revolving credit facility.
How much is FRP Holdings investing in development projects?
Management expects to invest about $69 million into existing real estate and joint ventures during the remainder of 2026 and another $113 million beyond 2026. These investments will be funded by cash on hand, operating cash flow, property sales, joint venture distributions, or credit facilities.
What drove the increase in FRPH’s general and administrative expenses?
General and administrative expenses rose 58.5% to $4.1 million, mainly due to costs associated with the Altman Logistics acquisition. These included higher audit fees, valuation and accounting consulting, IT consulting, and increased wages, which together significantly reduced operating profit.