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FRP Holdings, Inc. (NASDAQ: FRPH) Announces Results for the Fourth Quarter and Year Ended December 31, 2024

1. FRPH's Q4 2024 net income decreased by 41.7% year-over-year. 2. Pro rata NOI increased 26% in 2024 but expected to stall in 2025. 3. Two industrial joint ventures and multifamily projects planned for 2025. 4. Mining royalties showed significant growth, contributing positively to revenue. 5. Overall, challenges in leasing and market conditions may hinder growth.

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FAQ

Why Bearish?

The decrease in net income coupled with forecasts of flat NOI in 2025 creates uncertainty. A similar trend of stalling growth has historically led to downward price adjustments for similar asset managers.

How important is it?

The substantial decrease in net income and flat growth expectations will directly affect investor sentiment and FRPH's stock price in the short term. Market reactions to earnings are often immediate and impactful.

Why Short Term?

Immediate impacts are likely due to slower growth forecasts affecting investor sentiment. Investors may react quickly to profit warnings, which could lead to short-term price declines.

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PLDDREEXRPSA
JACKSONVILLE, Fla., March 05, 2025 (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 Lands. Net Income Results - Net income for the fourth quarter of 2024 was $1,679,000 or $.09 per share versus $2,880,000 or $.15 per share in the fourth quarter of 2023. Net income for 2024 was $6,385,000 or $.34 per share versus $5,302,000 or $.28 per share in 2023. Executive Summary and Analysis – In the fourth quarter, the Company saw a 21% improvement in pro rata NOI compared to the same period last year, and for the year ended December 31, 2024 saw a 26% increase in pro rata NOI ($38.1 million vs $30.2 million) compared to 2023. This is consistent with the almost 30% compound annual growth rate at which we have grown pro rata NOI since 2021. We experienced meaningful NOI growth across all segments in 2024 compared to last year including a 17% improvement ($649,000) in Industrial and Commercial NOI; a 23% increase ($2.7 million) in Mining Royalty lands NOI; and a 34% increase ($4.6 million) in Multifamily NOI. While we are proud of this level of growth, as we have mentioned in the past and highlight in our shareholder letter, it is also a pace we cannot possibly sustain, and do not expect to match in 2025. For a number of reasons, we expect 2025 NOI to be flat if not slightly less than 2024. In the Industrial Segment, we have vacancies at Cranberry and our new Chelsea building that will take time to lease up and will have operating expenses that will negatively impact NOI compared to 2024. The lease-up of three different projects (Verge, Bryant Street, and .408 Jackson) in our Multifamily segment had a profound impact in the growth of our NOI over the last 12 months. In 2025, these lease-ups will give way to more organic growth as we attempt to improve rents on already stabilized assets, a particular challenge for the DC assets which will be competing with a glut of new projects. Mining royalty revenue and earnings should remain strong in 2025, though from an NOI perspective, it will be difficult to keep pace with 2024, simply for the fact that we received a $1.9 million one-time minimum payment at one location, which we cannot replicate for obvious reasons. The flip side of this coin is that while we anticipate our NOI growth to stall in 2025, the driver of most of our future NOI growth will also come in 2025 through an estimated $71 million in equity capital investment. In 2025, we will begin construction on our two industrial joint ventures in Florida, continue to entitle our existing industrial pipeline in Maryland to have the land shovel ready in 2026, and look to augment our existing pipeline through a land purchase, industrial joint venture, or possibly both. This is where the rubber hits the road on our pivot to industrial development, and sets the course for our stated goal of delivering three new industrial assets every two years as we look to double the size of this segment over the next five years. While our core focus is industrial, we will continue to partner on multifamily projects that meet our return thresholds. We believe these are an effective hedge of our aggressive industrial strategy. We will always try to exploit our competitive advantage in the asset class we have the most experience in, but real estate is cyclical and there will almost certainly come a day where the state of the industrial market will make us glad we continued to pursue multifamily development. In 2025, we anticipate moving forward with two multifamily projects outside the DC area, one in South Carolina and the other in southwest Florida, which will add 810 units and $6 million in pro rata NOI upon stabilization. Fourth Quarter Highlights. 21% increase in pro rata Net Operating Income (NOI) ($9.1 million vs $7.6 million)21% increase in the Multifamily segment’s NOIMining Royalty Land's revenue increased 19%, and segment NOI increased 34% COMPARATIVE RESULTS OF OPERATIONS Consolidated Results (dollars in thousands)Three months ended December 31 2024 2023 Change %Revenues:       Lease revenue$7,072  7,206  $(134) -1.9%Mining royalty and rents 3,459  2,899   560  19.3%Total revenues 10,531  10,105   426  4.2%        Cost of operations:       Depreciation, depletion and amortization 2,558  2,406   152  6.3%Operating expenses 1,741  1,790   (49) -2.7%Property taxes 920  905   15  1.7%General and administrative 2,393  1,821   572  31.4%Total cost of operations 7,612  6,922   690  10.0%        Total operating profit 2,919  3,183   (264) -8.3%        Net investment income 2,317  2,690   (373) -13.9%Interest expense (668) (1,064)  396  -37.2%Equity in loss of joint ventures (2,777) (1,352)  (1,425) 105.4%(Loss) gain on sale of real estate 182  46   136  295.7%Income before income taxes 1,973  3,503   (1,530) -43.7%Provision for income taxes 286  618   (332) -53.7%        Net income 1,687  2,885   (1,198) -41.5%Income (loss) attributable to noncontrolling interest 8  5   3  60.0%Net income attributable to the Company$1,679  2,880  $(1,201) -41.7%         Net income for the fourth quarter of 2024 was $1,679,000 or $.09 per share versus $2,880,000 or $.15 per share last year. Pro rata NOI for the fourth quarter of 2024 was $9,103,000 versus $7,553,000 last year. General and administrative expense increased $572,000 over the same period last year due primarily to the implementation of our executive succession and transition plan that commenced in May, 2024.Net investment income decreased $373,000 due to reduced income from our lending ventures ($96,000), and decreased preferred interest ($346,000) due to the conversion of FRP preferred equity to common equity at Bryant Street. This decrease was mitigated by increased earnings on cash equivalents ($69,000).Interest expense decreased $396,000 compared to the same period last year as we capitalized $427,000 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 increased $1,425,000 due primarily to a one-time gain of $1,886,000 received in the fourth quarter of last year versus an expense of $124,000 in this year’s fourth quarter in connection with the loan guarantee on our Bryant Street multifamily development.   Notwithstanding the negative impact of the loan guarantee on this year’s fourth quarter versus last year, we saw improved operating results at The Verge ($486,000) and .408 Jackson ($90,000) compared to the same quarter 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 prior period (when these projects were still in our Development segment).  Three months ended December 31    (dollars in thousands)2024 % 2023 % Change %            Lease revenue$8,162 100.0% 7,249  100.0% 913  12.6%            Depreciation and amortization 3,303 40.5% 3,282  45.3% 21  .6%Operating expenses 2,894 35.5% 2,325  32.1% 569  24.5%Property taxes 1,009 12.4% 1,019  14.1% (10) -1.0%            Cost of operations 7,206 88.3% 6,626  91.4% 580  8.8%            Operating profit before G&A$956 11.7% 623  8.6% 333  53.5%            Depreciation and amortization 3,303   3,282    21   Unrealized rents & other 27   (377)   404   Net operating income$4,286 52.5% 3,528  48.7% 758  21.5%                   The combined consolidated and unconsolidated pro rata net operating income this year for this segment was $4,286,000, up $758,000 or 22% compared to $3,528,000 last year. Most of this increase was from the lease up of The Verge which contributed $690,000 of pro rata NOI compared to $182,000 in the Development segment last year, an increase of $508,000. Same store NOI (Dock, Maren & Riverside) increased $228,000 or 12%. Apartment BuildingUnitsPro rata NOI Q4 2024Pro rata NOI Q4 2023Avg. Occupancy Q4 2024Avg. Occupancy Q4 2023Renewal Success Rate Q4 2024Renewal % increase Q4 2024        Dock 79 Anacostia DC305$958,000$886,00094.4%94.8%65.4%4.0%Maren Anacostia DC264$956,000$855,00093.9%94.1%58.1%3.5%Riverside Greenville200$179,000$124,00092.6%95.2%60.0%3.0%Bryant Street DC487$1,205,000$1,254,00089.7%93.7%60.3%2.5%.408 Jackson Greenville227$298,000$227,00096.2%90.4%71.0%3.8%Verge Anacostia DC344$690,000$182,00090.9%79.0%72.1%4.3%Multifamily Segment1,827$4,286,000$3,528,00092.5%92.0%           Multifamily Segment (Consolidated - Dock & Maren)  Three months ended December 31    (dollars in thousands)2024 % 2023 % Change %            Lease revenue$5,504 100.0% 5,370 100.0% 134 2.5%            Depreciation and amortization 1,989 36.2% 1,971 36.8% 18 0.9%Operating expenses 1,494 27.1% 1,467 27.3% 27 1.8%Property taxes 623 11.3% 582 10.8% 41 7.0%            Cost of operations 4,106 74.6% 4,020 74.9% 86 2.1%            Operating profit before G&A$1,398 25.4% 1,350 25.1% 48 3.6%                 Total revenues for our two consolidated joint ventures (Dock & Maren) were $5,504,000, an increase of $134,000 versus $5,370,000 last year. Total operating profit before G&A for the consolidated joint ventures was $1,398,000, up 4% versus $1,350,000 last year. Multifamily Segment (Pro rata unconsolidated)  Three months ended December 31    (dollars in thousands)2024 % 2023 % Change %            Lease revenue$5,162 100.0% 4,323  100.0% 839  19.4%            Depreciation and amortization 2,213 42.9% 2,201  50.9% 12  .5%Operating expenses 2,073 40.2% 1,527  35.3% 546  35.8%Property taxes 670 13.0% 701  16.2% (31) -4.4%            Cost of operations 4,956 96.0% 4,429  102.5% 527  11.9%            Operating profit before G&A$206 4.0% (106) (2.5%) 312                For our four unconsolidated joint ventures, pro rata revenues were $5,162,000, an increase of $839,000 or 19% compared to $4,323,000 in the same period last year. Pro rata operating profit before G&A was $206,000 versus a loss of $106,000 last year, an increase of $312,000. Industrial and Commercial Segment  Three months ended December 31    (dollars in thousands)2024 % 2023 % Change %            Lease revenue$1,268 100.0%  1,422  100.0%  (154) (10.8%)            Depreciation and amortization 361 28.5%  368  25.8%  (7) (1.9%)Operating expenses 212 16.7%  163  11.5%  49  30.1%Property taxes 69 5.4%  62  4.4%  7  11.3%            Cost of operations 642 50.6%  593  41.7%  49  8.3%            Operating profit before G&A$626 49.4%  829  58.3%  (203) (24.5%)            Depreciation and amortization 361    368     (7)  Unrealized revenues 5    (25)    30   Net operating income$992 78.2% $1,172  82.4% $(180) (15.4%)                     Total revenues in this segment were $1,268,000, down $154,000 or 11%, over last year. Operating profit before G&A was $626,000, down $203,000 or (24.5%) from $829,000 last year. Revenues and operating profit are down due to $222,000 of allowance for uncollectible revenue on one tenant in the process of eviction. We were 95.6% leased and occupied during both periods inclusive of the uncollectable space leased. Net operating income in this segment was $992,000, down $180,000 or 15% compared to last year due to the uncollectible revenue. Mining Royalty Lands Segment Results  Three months ended December 31    (dollars in thousands)2024 % 2023 % Change %            Mining royalty and rent revenue$3,459 100.0%  2,899  100.0%  560  19.3%            Depreciation, depletion and amortization 165 4.7%  25  0.8%  140  560.0%Operating expenses 16 0.5%  17  0.6%  (1) -5.9 Property taxes 80 2.3%  104  3.6%  (24) -23.1%            Cost of operations 261 7.5%  146  5.0%  115  78.8%            Operating profit before G&A$3,198 92.5%  2,753  95.0%  445  16.2%            Depreciation and amortization 165    25     140   Unrealized revenues 142    (168)    310   Net operating income$3,505 101.3% $2,610  90.0% $895  34.3% Total revenues in this segment were $3,459,000, an increase of $560,000 or 19% versus $2,899,000 last year. Last year’s fourth quarter was negatively impacted by the deduction of $223,000 as a credit for a (prior overpayment of royalties at one location).   Royalty tons were up 11%. Total operating profit before G&A in this segment was $3,198,000, an increase of $445,000 versus $2,753,000 last year. Net operating income in this segment was $3,505,000, up $895,000 or 34% compared to last year due to the increased revenues and a beneficial/ positive swing in the unrealized revenue of $310,000. Development Segment Results  Three months ended December 31  (dollars in thousands)2024 2023 Change      Lease revenue$300 414 (114)      Depreciation, depletion and amortization 43 42 1 Operating expenses 19 143 (124)Property taxes 148 157 (9)      Cost of operations 210 342 (132)      Operating profit before G&A$90 72 18          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 second quarter of 2025.Last summer we broke ground on a new speculative warehouse project in Aberdeen, MD on Chelsea Road. This Class A, 258,000 square foot building is due to be completed in the 1st quarter of 2025.We are the principal capital source to develop 344 residential lots on 110 acres in Harford County, MD. We have funded $26.5 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 year end, 100 lots have been sold and $15.3 million of preferred interest and principal has been returned to the Company of which $4.0 million was booked as profit to the Company. Highlights of the year ending 12/31/24. 20% increase in Net Income ($6.4 million vs $5.3 million)26% increase in pro rata NOI ($38.1 million vs $30.2 million)The Mining Royalty Lands Segment's pro rata NOI includes a $2.2 million increase in unrealized revenues primarily due to a one-time, $1.9 million minimum royalty payment 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 estimated remaining 20 year life of the lease.34% 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).Industrial and Commercial revenue increased 5%, and segment NOI increased 17% COMPARATIVE RESULTS OF OPERATIONS Consolidated Results (dollars in thousands)Twelve Months Ended December 31, 2024 2023 Change %Revenues:       Lease revenue$28,922  28,979  $(57) -.2%Mining royalty and rents 12,852  12,527   325  2.6%Total revenues 41,774  41,506   268  .6%        Cost of operations:       Depreciation, depletion and amortization 10,187  10,821   (634) -5.9%Operating expenses 7,170  7,364   (194) -2.6%Property taxes 3,437  3,650   (213) -5.8%General and administrative 9,276  7,971   1,305  16.4%Total cost of operations 30,070  29,806   264  .9%        Total operating profit 11,704  11,700   4  —%        Net investment income 11,112  10,897   215  2.0%Interest expense (3,150) (4,315)  1,165  -27.0%Equity in loss of joint ventures (11,359) (11,937)  578  -4.8%(Loss) gain on sale of real estate 182  53   129  243.4%Income before income taxes 8,489  6,398   2,091  32.7%Provision for income taxes 2,029  1,516   513  33.8%        Net income 6,460  4,882   1,578  32.3%Income (loss) attributable to noncontrolling interest 75  (420)  495  -117.9%Net income attributable to the Company$6,385  5,302  $1,083  20.4%         Net income for 2024 was $6,385,000 or $.34 per share versus $5,302,000 or $.28 per share last year. Pro rata NOI for 2024 was $38,139,000 versus $30,240,000 last year. Pro rata NOI includes a one-time, 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 estimated remaining 20 year life of the lease.General and administrative expense increased $1,305,000 over the same period last year due primarily to the implementation of our executive succession and transition plan that commenced in May, 2024.Net investment income increased $215,000 due to increased earnings on cash equivalents ($1,321,000) and increased income from our lending ventures ($1,059,000), partially offset by decreased preferred interest ($2,165,000) due to the conversion of FRP preferred equity to common equity at Bryant Street.Interest expense decreased $1,165,000 compared to the same period last year as we capitalized $1,296,000 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 $578,000 due to improved results at our unconsolidated joint ventures. Results improved at The Verge ($2,445,000) and .408 Jackson ($259,000) but that improvement was mostly offset by a $2,255,000 increase in loan guarantee expense. The Company recorded a gain on loan guarantee of $1,886,000 in December 2023 as the guarantee liability was relieved upon the refinancing of the Bryant Street debt versus an expense of $496,000 in 2024 stemming from the guarantee of the new Bryant Street loan. 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 prior period (when these projects were still in our Development segment).  Twelve Months Ended December 31,    (dollars in thousands)2024 % 2023 % Change %            Lease revenue$32,377 100.0% 26,592  100.0% 5,785 21.8%            Depreciation and amortization 13,309 41.1% 12,847  48.3% 462 3.6%Operating expenses 10,740 33.2% 9,649  36.3% 1,091 11.3%Property taxes 3,578 11.1% 3,207  12.1% 371 11.6%            Cost of operations 27,627 85.3% 25,703  96.7% 1,924 7.5%            Operating profit before G&A$4,750 14.7% 889  3.3% 3,861 434.3%            Depreciation and amortization 13,309   12,847    462  Unrealized rents & other 118   (193)   311  Net operating income$18,177 56.1% 13,543  50.9% 4,634 34.2%                  The combined consolidated and unconsolidated pro rata net operating income this year for this segment was $18,177,000, up $4,634,000 or 34% compared to $13,543,000 last year. Most of this increase was from the lease up of Bryant Street, .408 Jackson, and The Verge. These three projects contributed $9,740,000 of pro rata NOI to this segment compared to $5,466,000 in the Development segment last year, an increase of $4,274,000. Same store NOI (Dock, Maren & Riverside) increased $360,000 or 4%. Apartment BuildingUnitsPro rata NOI 2024Pro rata NOI 2023Avg. Occupancy 2024Avg. Occupancy 2023Renewal Success Rate YTD 2024Renewal % increase 2024        Dock 79 Anacostia DC305$3,800,000$3,711,00094.2%94.4%67.6%3.4%Maren Anacostia DC264$3,776,000$3,566,00094.3%95.6%57.1%2.6%Riverside Greenville200$861,000$800,00095.0%94.5%56.4%4.7%Bryant Street DC487$5,793,000$4,849,00091.3%92.9%58.1%2.7%.408 Jackson Greenville227$1,298,000$577,00090.0%59.9%68.8%3.2%Verge Anacostia DC344$2,649,000$40,00093.3%46.7%58.0%3.1%Multifamily Segment1,827$18,177,000$13,543,00092.8%84.5%           Multifamily Segment (Consolidated - Dock & Maren)  Twelve Months Ended December 31,    (dollars in thousands) 2024 %  2023 %  Change  %            Lease revenue$22,096 100.0% 21,824 100.0% 272  1.2%            Depreciation and amortization 7,936 35.8% 8,768 40.2% (832) -9.5%Operating expenses 6,047 27.4% 6,285 28.8% (238) -3.8%Property taxes 2,288 10.4% 2,231 10.2% 57  2.6%            Cost of operations 16,271 73.6% 17,284 79.2% (1,013) -5.9%Operating profit before G&A            $5,825 26.4% 4,540 20.8% 1,285  28.3%                  Total revenues for our two consolidated joint ventures (Dock & Maren) were $22,096,000, an increase of $272,000 versus $21,824,000 last year. Total operating profit before G&A for the consolidated joint ventures was $5,825,000, an increase of $1,285,000, or 28% versus $4,540,000 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)  Twelve Months Ended December 31,    (dollars in thousands)2024 % 2023 % Change %            Lease revenue$20,335 100.0% 14,700  100.0% 5,635 38.3%            Depreciation and amortization 8,960 44.1% 8,055  54.8% 905 11.2%Operating expenses 7,431 36.5% 6,194  42.1% 1,237 20.0%Property taxes 2,335 11.5% 1,993  13.6% 342 17.2%            Cost of operations 18,726 92.1% 16,242  110.5% 2,484 15.3%            Operating profit before G&A$1,609 7.9% (1,542) (10.5%) 3,151 -204.3%             For our four unconsolidated joint ventures, pro rata revenues were $20,335,000, an increase of $5,635,000 or 38% compared to $14,700,000 in the same period last year. Pro rata operating profit before G&A was $1,609,000 versus a loss of $1,542,000 last year, an increase of $3,151,000. Industrial and Commercial Segment  Twelve Months Ended December 31,    (dollars in thousands)2024 % 2023 % Change %            Lease revenue$5,621  100.0%  5,354  100.0%  267 5.0%            Depreciation and amortization 1,444  25.7%  1,374  25.7%  70 5.1%Operating expenses 803  14.3%  653  12.2%  150 23.0%Property taxes 264  4.7%  247  4.6%  17 6.9%            Cost of operations 2,511  44.7%  2,274  42.5%  237 10.4%            Operating profit before G&A$3,110  55.3%  3,080  57.5%  30 1.0%            Depreciation and amortization 1,444     1,374     70  Unrealized revenues (7)    (556)    549  Net operating income$4,547  80.9% $3,898  72.8% $649 16.6%                     Total revenues in this segment were $5,621,000, up $267,000 or 5%, over last year. Operating profit before G&A was $3,110,000, up $30,000 or 1% from $3,080,000 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 less $222,000 of allowance for uncollectible revenue on one tenant in the process of eviction. We were 95.6% leased and occupied during 2024 inclusive of the uncollectable space leased. Net operating income in this segment was $4,547,000, up $649,000 or 17% compared to last year partially due to $549,000 more unrealized rental revenue in the prior year due to rent abatements that expired in 2023. Mining Royalty Lands Segment Results  Twelve Months Ended December 31,    (dollars in thousands)2024 % 2023 % Change %            Mining royalty and rent revenue$12,852 100.0%  12,527  100.0%  325  2.6%            Depreciation, depletion and amortization 636 5.0%  497  4.0%  139  28.0%Operating expenses 69 0.5%  68  0.5%  1  1.5 Property taxes 294 2.3%  428  3.4%  (134) -31.3%            Cost of operations 999 7.8%  993  7.9%  6  0.6%            Operating profit before G&A$11,853 92.2%  11,534  92.1%  319  2.8%            Depreciation and amortization 636    497     139   Unrealized revenues 1,907    (311)    2,218   Net operating income$14,396 112.0% $11,720  93.6% $2,676  22.8%                     Total revenues in this segment were $12,852,000, an increase of $325,000 or 3% versus $12,527,000 last year despite a 3% decrease in royalty tons sold compared to 2023. Royalty revenues were impacted by the deduction of royalties to resolve an $842,000 overpayment. During the year, the tenant 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. Total operating profit before G&A in this segment was $11,853,000, an increase of $319,000 versus $11,534,000 last year. Net operating income in this segment was $14,396,000, up $2,676,000 or 23% compared to last year mostly due to a one-time, minimum royalty payment at one location which is straight-lined across the estimated remaining 20 year life of the lease for GAAP revenue purposes. Development Segment Results  Twelve Months Ended December 31,  (dollars in thousands)2024 2023 Change      Lease revenue$1,205 1,801 (596)      Depreciation, depletion and amortization 171 182 (11)Operating expenses 251 358 (107)Property taxes 591 744 (153)      Cost of operations 1,013 1,284 (271)      Operating profit before G&A$192 517 (325)         CONSOLIDATED BALANCE SHEETS (In thousands, except share data) Assets:December 31, 2024 December 31, 2023Real estate investments at cost:   Land$168,943 141,602Buildings and improvements 283,421 282,631Projects under construction 32,770 10,845Total investments in properties 485,134 435,078Less accumulated depreciation and depletion 77,695 67,758Net investments in properties 407,439 367,320    Real estate held for investment, at cost 11,722 10,662Investments in joint ventures 153,899 166,066Net real estate investments 573,060 544,048    Cash and cash equivalents 148,620 157,555Cash held in escrow 1,315 860Accounts receivable, net 1,352 1,046Federal and state income taxes receivable — 337Unrealized rents 1,380 1,640Deferred costs 2,136 3,091Other assets 622 589Total assets$728,485 709,166    Liabilities:   Secured notes payable$178,853 178,705Accounts payable and accrued liabilities 6,026 8,333Other liabilities 1,487 1,487Federal and state income taxes payable 611 —Deferred revenue 2,437 925Deferred income taxes 67,688 69,456Deferred compensation 1,465 1,409Tenant security deposits 805 875Total liabilities 259,372 261,190    Commitments and contingencies       Equity:   Common stock, $.10 par value 25,000,000 shares authorized, 19,046,894 and 18,968,448 shares issued and outstanding, respectively 1,905 1,897Capital in excess of par value 68,876 66,706Retained earnings 352,267 345,882Accumulated other comprehensive income, net 55 35Total shareholders’ equity 423,103 414,520Noncontrolling interests 46,010 33,456Total equity 469,113 447,976Total liabilities and equity$728,485 709,166      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 Twelve months ended 12/31/24 (in thousands)  Industrial and Commercial Segment Development Segment Multifamily Segment Mining Royalties Segment Unallocated Corporate Expenses FRP Holdings Totals            Net income (loss)$1,459 (3,098) (5,708) 8,219 5,588 6,460 Income tax allocation 448 (952) (1,764) 2,525 1,772 2,029             Income (loss) before income taxes 1,907 (4,050) (7,472) 10,744 7,360 8,489             Less:           Unrealized rents 7 —  —  — — 7 Gain on sale of real estate — —  —  182 — 182 Interest income — 3,574  —  — 7,538 11,112 Plus:           Unrealized rents — —  10  1,907 — 1,917 Professional fees — —  85  — — 85 Equity in loss of joint ventures — 2,049  9,266  44 — 11,359 Interest expense — —  2,972  — 178 3,150 Depreciation/amortization 1,444 171  7,936  636 — 10,187 General and administrative 1,203 5,767  1,059  1,247 — 9,276              Net operating income (loss) 4,547 363  13,856  14,396 — 33,162             NOI of noncontrolling interest — —  (6,326) — — (6,326)Pro rata NOI from unconsolidated joint ventures — 656  10,647  — — 11,303             Pro rata net operating income$4,547 1,019  18,177  14,396 — 38,139  Pro Rata Net Operating Income Reconciliation Twelve months ended 12/31/23 (in thousands)  Industrial/CommercialSegment DevelopmentSegment MultifamilySegment MiningRoyaltiesSegment UnallocatedCorporateExpenses FRPHoldingsTotalsNet Income (loss)$1,285 (8,043) (848) 7,682 4,806 4,882 Income Tax Allocation 477 (2,983) (158) 2,848 1,332 1,516 Income (loss) before income taxes 1,762 (11,026) (1,006) 10,530 6,138 6,398             Less:           Unrealized rents 556 —  10  311 — 877 Gain on sale of real estate and other income — —  46  10 — 56 Interest income — 4,712  —  — 6,185 10,897 Plus:           Loss on sale of real estate 2 —  1  — — 3 Equity in loss of Joint Ventures — 11,397  500  40 — 11,937 Professional fees - other — —  60  — — 60 Interest Expense — —  4,268  — 47 4,315 Depreciation/Amortization 1,374 182  8,768  497 — 10,821 Management Co. Indirect 529 2,471  444  525 — 3,969 Allocated Corporate Expenses 787 2,387  379  449 — 4,002             Net Operating Income 3,898 699  13,358  11,720 — 29,675             NOI of noncontrolling interest — —  (6,081) — — (6,081)Pro rata NOI from unconsolidated joint ventures — 5,846  800  — — 6,646             Pro rata net operating income$3,898 6,545  8,077  11,720 — 30,240                  Conference Call The Company will host a conference call on Thursday, March 6, 2025 at 9:00 a.m. (EDT). Analysts, stockholders and other interested parties may access the teleconference live by calling 1-800-343-4849 (passcode 83364) within the United States. International callers may dial 1-203-518-9848 (passcode 83364). Audio replay will be available until March 20, 2025 by dialing 1-800-839-2434 within the United States. International callers may dial 1-402-220-7211. 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: Matthew C. McNultyChief Financial Officer904/858-9100

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