FRP Holdings, Inc. (NASDAQ

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    FRPH) Announces Results for the Third Quarter and Nine Months Ended September 30, 2024

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

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

    Third Quarter Highlights

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

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

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

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

    Consolidated Results

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

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

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

    Multifamily Segment (Consolidated)

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

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

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

    Multifamily Segment (Pro rata unconsolidated)

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

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

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

    Multifamily Segment (Pro rata consolidated and pro rata unconsolidated)

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

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

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

    Apartment Building Units   Pro rata NOI
    Q3 2024
    Pro rata NOI
    Q3 2023
    Avg.
    Occupancy
    Q3 2024
    Avg.
    Occupancy
    CY 2023
    Renewal
    Success
    Rate
    Q3 2024
    Renewal
    % increase
    Q3 2024
                     
    Dock 79 Anacostia DC 305   $964,000 $952,000 94.0% 94.4% 71.4% 2.9%
    Maren Anacostia DC 264   $973,000 $855,000 94.9% 95.6% 50.7% 2.3%
    Riverside Greenville 200   $243,000 $231,000 94.0% 94.5% 56.0% 2.7%
    Bryant Street DC 487   $1,537,000 $1,210,000 91.5% 92.9% 56.7% 2.0%
    .408 Jackson Greenville 227   $362,000 $284,000 94.5% 59.9% 52.9% 6.1%
    Verge Anacostia DC 344   $643,000 $293,000 90.1% 47.3% 63.6% 3.9%
    Multifamily Segment 1,483   $4,722,000 $3,825,000 92.8% 81.0%    
                     

    Industrial and Commercial Segment

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

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

    Mining Royalty Lands Segment Results

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

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

    Development Segment Results

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

    With respect to ongoing Development Segment projects:

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

    Nine Month Highlights

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

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

    Consolidated Results

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

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

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

    Multifamily Segment (Consolidated)

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

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

    Multifamily Segment (Pro rata unconsolidated)

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

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

    Multifamily Segment (Pro rata consolidated and pro rata unconsolidated)

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

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

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

    Apartment Building Units   Pro rata NOI
    YTD 2024
    Pro rata NOI
    YTD 2023
    Avg.
    Occupancy
    YTD 2024
    Avg.
    Occupancy
    CY 2023
    Renewal
    Success
    Rate
    YTD 2024
    Renewal
    % increase
    YTD 2024
                     
    Dock 79 Anacostia DC 305   $2,842,000 $2,825,000 94.1% 94.4% 68.3% 3.2%
    Maren Anacostia DC 264   $2,820,000 $2,711,000 94.5% 95.6% 56.8% 2.2%
    Riverside Greenville 200   $682,000 $676,000 93.6% 94.5% 57.5% 3.1%
    Bryant Street DC 487   $4,588,000 $3,595,000 91.9% 92.9% 57.5% 2.8%
    .408 Jackson Greenville 227   $1,000,000 $350,000 94.6% 59.9% 53.3% 5.0%
    Verge Anacostia DC 344   $1,959,000 -$142,000 89.7% 47.3% 67.4 % 1.8%
    Multifamily Segment 1,483   $13,891,000 $10,015,000 92.7%      
                     

    Industrial and Commercial Segment

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

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

    Mining Royalty Lands Segment Results

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

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

    Development Segment Results

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


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

    Non-GAAP Financial Measures.

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

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


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

    Conference Call

    The Company will host a conference call on Wednesday, November 6, 2024 at 4:00 p.m. (EDT). Analysts, stockholders and other interested parties may access the teleconference live by calling 1-800-343-5172 (passcode 83364) within the United States. International callers may dial 1-203-518-9856 (passcode 83364). Audio replay will be available until November 20, 2024 by dialing 1-800-753-5207 within the United States. International callers may dial 1-402-220-2156. No passcode needed. An audio replay will also be available on the Company’s investor relations page (https://www.frpdev.com/investor-relations/) following the call.

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

    FRP Holdings, Inc. is a holding company engaged in the real estate business, namely (i) leasing and management of commercial properties owned by the Company, (ii) leasing and management of mining royalty land owned by the Company, (iii) real property acquisition, entitlement, development and construction primarily for apartment, retail, warehouse, and office, (iv) leasing and management of residential apartment buildings.

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




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    FRP Holdings, Inc. (NASDAQ FRPH) Announces Results for the Third Quarter and Nine Months Ended September 30, 2024 JACKSONVILLE, Fla., Nov. 06, 2024 (GLOBE NEWSWIRE) - FRP Holdings, Inc. (NASDAQ-FRPH) – FRP Holdings is a real estate asset developer and manager across three differing asset classes including Multifamily, Industrial and Commercial, and Mining …