FRP Holdings, Inc. Reports Fiscal 2025 Third Quarter Results

JACKSONVILLE, FL / ACCESS Newswire / November 5, 2025 / FRP Holdings, Inc. (NASDAQ:FRPH), a full-service real estate investment and development company with four distinct business segments including Multifamily, Industrial and Commercial Development, and Mining and Royalty Lands, today reported financial results for the quarter ended September 30, 2025.Third Quarter Highlights and Recent Developments51% decrease in Net Income ($0.7 million vs $1.4 million) due largely to expenses related to the Altman Logistics platform acquisition ($1.3 million) partially offset by higher mining royalties and improved results in Equity in Loss of Joint Ventures (excluding the Altman acquisition expenses, adjusted Net Income was up $0.3 million).16% decrease in pro rata NOI ($9.5 million vs $11.3 million) primarily due to a non-recurring $1.9 million minimum royalty payment in last year's third quarter. This one-time, catch-up payment applied to the prior twenty-four months when the tenant failed to meet a production requirement contained in the lease. The revenue from this payment was straight-lined over the life of the lease. Excluding the $1.9 million payment in last year, adjusted pro rata NOI was up $0.1 million this quarter versus last year's same quarter.3% decrease in the Multifamily segment's pro rata NOI primarily due to lower NOI at the Maren from higher uncollectable revenue along with higher operating costs and property taxes.25% decrease in Industrial and Commercial segment NOI primarily due to vacancies from an eviction of one tenant and lease expirations.26% decrease in Mining Royalty Lands segment NOI from the aforementioned $1.9 million minimum royalty payment in the third quarter of 2024. Excluding the $1.9 million payment in last year, adjusted pro rata NOI was up $0.5 million or 16% this quarter versus last year's same quarter.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.Subsequent to the end of the quarter, on October 21, 2025, the Company acquired the business operations and development pipeline of Altman Logistics Property, LLC, including two projects already majority-owned by FRP Holdings as well as minority interests in a portfolio of institutional grade assets under development.Executive Summary and AnalysisResults for the first nine months were in line with the expectations we outlined earlier this year. Net income is down for this calendar year primarily due to legal expenses associated with our recently announced acquisition of Altman Logistics. On an NOI basis, year-to-date results trailed our 2024 performance primarily due to the one-time $1.9 million catch-up payment received in the third quarter of last year.Looking forward to next quarter and beyond, we are focused on laying the foundation for long-term earnings and NOI growth. Leasing and occupying the industrial and commercial vacancies accumulated over the past year will be key drivers of both these metrics. Over the next five years, though, our most significant growth will come from executing on projects within our development pipeline. This includes advancing development entitlements in Maryland to ensure these projects are shovel-ready in 2026, continuing to deliver on our active developments in Florida and South Carolina, and filling the newly developed spaces with tenants.Essential to any discussion of future growth for the Company is our acquisition of Altman Logistics, which closed subsequent to the end of the quarter. Altman was the Company's partner on our first two industrial joint venture in Florida. This transaction is an important step toward scaling the Company and expanding beyond our traditional in-house development footprint into key growth markets, especially Florida and New Jersey. The additional cashflows generated from the future sale of our minority interests acquired in the Altman transaction will help fuel our newly expanded development platform. This combination will be the driver for the Company's next decade of growth.Comparative Results of Operations for the three months ended September 30, 2025 and 2024Consolidated Results(dollars in thousands) Three Months Ended September 30, 2025 2024 Change % Revenues: Lease revenue $7,086 7,434 $(348) -4.7%Mining royalty and rents 3,689 3,199 490 15.3%Total revenues 10,775 10,633 142 1.3% Cost of operations: Depreciation, depletion and amortization 2,825 2,551 274 10.7%Operating expenses 3,304 1,860 1,444 77.6%Property taxes 955 850 105 12.4%General and administrative 2,328 2,289 39 1.7%Total cost of operations 9,412 7,550 1,862 24.7% Total operating profit 1,363 3,083 (1,720) -55.8% Net investment income 2,369 2,304 65 2.8%Interest expense (739) (742) 3 -.4%Equity in loss of joint ventures (2,225) (2,839) 614 -21.6%Income before income taxes 768 1,806 (1,038) -57.5%Provision for income taxes 203 427 (224) -52.5% Net income 565 1,379 (814) -59.0%Income (loss) attributable to noncontrolling interest (97) 18 (115) -638.9%Net income attributable to the Company $662 1,361 $(699) -51.4% Net income for the third quarter of 2025 was $662,000 or $.03 per share versus $1,361,000 or $.07 per share in the same period last year. Excluding the Altman acquisition expenses, adjusted Net Income was up $281,000 . Pro rata NOI for the third quarter of 2025 was $9,523,000 versus $11,272,000 in the same period last year. Excluding the $1.9 million payment in last year, adjusted pro rata NOI was up $104,000 this quarter versus last year's same quarter. The third quarter of 2025 was impacted by the following items:Operating profit decreased $1,720,000 primarily due to $1,281,000 of expenses related to the Altman Logistics platform acquisition. The pro rata operating profit of the Multifamily segment increased however the consolidated portion of the Multifamily segment (Dock/Maren) decreased $404,000 due to uncollectable revenue and higher operating expenses and property taxes. The Industrial and Commercial segment operating profit declined $501,000 due to $207,000 higher depreciation from completion of our new Chelsea warehouse along with lower occupancy due to a tenant default and non-renewing leases. Mining Royalty Land's segment operating profit increased $438,000 due to higher royalty tons and revenues less related depletion.Net investment income increased $65,000 because of higher income from our lending ventures ($465,000) mostly offset by reduced earnings on cash equivalents ($400,000).Equity in loss of Joint Ventures improved $614,000 due to improved results of our unconsolidated joint ventures. Results improved at Bryant Street ($255,000) and BC Realty ($401,000) both due to higher revenues and lower variable rate interest expense.Pro rata NOI decreased $1,749,000 primarily due to the same quarter last year including a catch-up, minimum royalty payment of $1.9 million that applied 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. Excluding the $1.9 million payment in last year, adjusted pro rata NOI was up $104,000 this quarter versus last year's same quarter.Multifamily Segment (Pro rata consolidated and pro rata unconsolidated) Three months ended September 30 (dollars in thousands) 2025 % 2024 % Change % Lease revenue $8,466 100.0% 8,226 100.0% 240 2.9% Depreciation and amortization 3,347 39.5% 3,353 40.8% (6) -.2%Operating expenses 2,842 33.6% 2,841 34.5% 1 -%Property taxes 1,021 12.1% 865 10.5% 156 18.0% Cost of operations 7,210 85.2% 7,059 85.8% 151 2.1% Operating profit before G&A $1,256 14.8% 1,167 14.2% 89 7.6% Depreciation and amortization 3,347 3,353 (6) Unrealized rents & other (33) 202 (235) Net operating income $4,570 54.0% 4,722 57.4% (152) -3.2%The combined consolidated and unconsolidated pro rata net operating income this quarter for this segment was $4,570,000, down $152,000 or 3% compared to $4,722,000 in the same quarter last year. Most of this decrease was from $177,000 lower NOI at the Maren due to increased uncollectable revenue along with higher operating costs and property taxes.Apartment Building Units Pro rata NOIQ3 2025 Pro rata NOIQ3 2024 Avg. Occupancy Q3 2025 Avg. Occupancy Q3 2024 Renewal Success RateQ3 2025 Renewal % increaseQ3 2025 Dock 79 Anacostia DC 305 $938,000 $964,000 93.8% 94.0% 68.1% 2.8%Maren Anacostia DC 264 $796,000 $973,000 94.1% 94.9% 56.5% 2.7%Riverside Greenville 200 $213,000 $243,000 92.0% 94.0% 55.6% 4.9%Bryant Street DC 487 $1,649,000 $1,537,000 93.4% 91.5% 67.2% 2.7%.408 Jackson Greenville 227 $358,000 $362,000 92.5% 94.5% 59.1% 3.1%Verge Anacostia DC 344 $616,000 $643,000 92.0% 90.1% 64.8% 1.9%Multifamily Segment 1,827 $4,570,000 $4,722,000 93.0% 92.8% Multifamily Segment (Consolidated - Dock 79 & The Maren) Three months ended September 30 (dollars in thousands) 2025 % 2024 % Change % Lease revenue $5,556 100.0% 5,682 100.0% (126) -2.2% Depreciation and amortization 2,002 36.1% 1,985 35.0% 17 .9%Operating expenses 1,763 31.7% 1,573 27.7% 190 12.1%Property taxes 636 11.4% 565 9.9% 71 12.6% Cost of operations 4,401 79.2% 4,123 72.6% 278 6.7% Operating profit before G&A $1,155 20.8% 1,559 27.4% (404) -25.9%Total revenues for our two consolidated joint ventures were $5,556,000, a decrease of $126,000 versus $5,682,000 in the same period last year. Total operating profit before G&A for the consolidated joint ventures was $1,155,000, a decrease of $404,000, or 26% versus $1,559,000 in the same period last year primarily due to increased uncollectable revenue along with higher operating costs and property taxes at the Maren.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) 2025 % 2024 % Change % Lease revenue $5,440 100.0% 5,129 100.0% 311 6.1% Depreciation and amortization 2,250 41.4% 2,265 44.2% (15) -.7%Operating expenses 1,894 34.8% 1,985 38.7% (91) -4.6%Property taxes 675 12.4% 557 10.9% 118 21.2% Cost of operations 4,819 88.6% 4,807 93.7% 12 .2% Operating profit before G&A $621 11.4% 322 6.3% 299 92.9%For our four unconsolidated joint ventures, pro rata revenues were $5,440,000, an increase of $311,000 or 6% compared to $5,129,000 in the same period last year. Pro rata operating profit before G&A was $621,000, an increase of $299,000 or 93% versus $322,000 in the same period last year. The increase was due to improved occupancy at The Verge and Bryant Street and higher revenues at .408 Jackson.Industrial and Commercial Segment Three months ended September 30 (dollars in thousands) 2025 % 2024 % Change % Lease revenue $1,229 100.0% 1,455 100.0% (226) (15.5%) Depreciation and amortization 567 46.2% 360 24.7% 207 57.5%Operating expenses 224 18.2% 185 12.7% 39 21.1%Property taxes 97 7.9% 68 4.7% 29 42.6% Cost of operations 888 72.3% 613 42.1% 275 44.9% Operating profit before G&A $341 27.7% 842 57.9% (501) (59.5%) Depreciation and amortization 567 360 207 Unrealized revenues (4) 7 (11) Net operating income $904 73.6% $1,209 83.1% $(305) (25.2%)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 48.6% was leased and occupied at September 30, 2025. Excluding Chelsea these assets were 72.4% leased and occupied during the quarter compared to 95.6% leased and occupied during the same quarter last year primarily due to an eviction for failure to pay rent by one tenant and lease expirations. Total revenues in this segment were $1,229,000, down $226,000 or 16%, over the same period last year. Operating profit before G&A was $341,000, down $501,000 or 60% over the same quarter last year due to $216,000 of depreciation and $40,000 of operating costs at Chelsea along with the lower occupancy. Net operating income in this segment was $904,000, down $305,000 or 25% compared to the same quarter last year.Mining Royalty Lands Segment Results Three months ended September 30 (dollars in thousands) 2025 % 2024 % Change % Mining royalty and rent revenue $3,689 100.0% 3,199 100.0% 490 15.3% Depreciation, depletion and amortization 213 5.8% 163 5.1% 50 30.7%Operating expenses 17 0.5% 20 0.6% (3) -15.0%Property taxes 75 2.0% 70 2.2% 5 7.1% Cost of operations 305 8.3% 253 7.9% 52 20.6% Operating profit before G&A $3,384 91.7% 2,946 92.1% 438 14.9% Depreciation and amortization 213 163 50 Unrealized revenues 159 1,994 (1,835) Net operating income $3,756 101.8% $5,103 159.5% $(1,347) (26.4%)Total revenues in this segment were $3,689,000, an increase of $490,000 or 15% versus $3,199,000 in the same period last year. Royalty tons were up 6.5%. Royalty revenue per ton increased 5% over the same period last year. Total operating profit before G&A in this segment was $3,384,000, an increase of $438,000 versus $2,946,000 in the same period last year. Net operating income was $3,756,000, down $1,347,000 or 26% compared to the same quarter last year as higher revenues were more than offset by a $1,835,000 decrease in unrealized revenues. The unrealized revenue decrease is due to the same quarter last year including a catch-up, minimum royalty payment of $1.9 million that applied 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.Development Segment Results Three months ended September 30 (dollars in thousands) 2025 2024 Change Lease revenue $301 297 4 Depreciation, depletion and amortization 43 43 - Operating expenses 1,300 82 1,218 Property taxes 147 147 - Cost of operations 1,490 272 1,218 Operating profit before G&A $(1,189) 25 (1,214)With respect to ongoing Development Segment projects:We are the principal capital source to develop 344 residential lots on 110 acres in Harford County, MD. We have funded $27.5 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, 180 lots have been sold and $24.8 million has been returned to the company of which $6.1 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 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 fourth quarter of 2026,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.Nine Month Highlights37% decrease in Net Income ($3.0 million vs $4.7 million) due to $2 million of expenses related to acquiring the Altman Logistics platform. Excluding the $2 million of Altman acquisition expenses, adjusted Net income was down $0.2 million.1.6% decrease in pro rata NOI ($28.6 million vs $29.0 million). Excluding the $1.9 million payment in last year, adjusted pro rata NOI was up $1.4 million this year.Multifamily segment's pro rata NOI was up slightly as improved results at Bryant Street, .408 Jackon and The Verge were mostly offset by uncollectable revenue along with higher operating costs and property taxes at the Maren.9% decrease in Industrial and Commercial revenue and 14% decrease in that segment's NOI1.7% decrease in the Mining Royalty Lands' Segment's NOI. Excluding the $1.9 million paynent in last year, adjusted pro rata NOI in this segment was up $1.7 million or 18%.Comparative Results of Operations for the Nine months ended September 30, 2025 and 2024Consolidated Results(dollars in thousands) Nine Months Ended September 30, 2025 2024 Change % Revenues: Lease revenue $21,399 21,850 $(451) -2.1%Mining royalty and rents 10,532 9,393 1,139 12.1%Total revenues 31,931 31,243 688 2.2% Cost of operations: Depreciation/depletion/amortization 8,158 7,629 529 6.9%Operating expenses 7,743 5,429 2,314 42.6%Property taxes 2,895 2,517 378 15.0%General and administrative 7,790 6,883 907 13.2%Total cost of operations 26,586 22,458 4,128 18.4% Total operating profit 5,345 8,785 (3,440) -39.2% Net investment income 7,278 8,795 (1,517) -17.2%Interest expense (2,258) (2,482) 224 -9.0%Equity in loss of joint ventures (6,635) (8,582) 1,947 -22.7%Income before income taxes 3,730 6,516 (2,786) -42.8%Provision for income taxes 907 1,743 (836) -48.0% Net income 2,823 4,773 (1,950) -40.9%Income (loss) attributable to noncontrolling interest (127) 67 (194) -289.6%Net income attributable to the Company $2,950 $4,706 $(1,756) -37.3% Net income for the first nine months of 2025 was $2,950,000 or $.16 per share versus $4,706,000 or $.25 per share in the same period last year. Excluding the $2 million of Altman acquisition expenses, adjusted Net Income was down $231,000. Pro rata NOI for the first nine months of 2025 was $28,575,000 versus $29,036,000 in the same period last year. Excluding the $1.9 million payment in last year, adjusted pro rata NOI was up $1.4 million this year. The first nine months of 2025 were impacted by the following items:Operating profit decreased $3,440,000 primarily due to $1,993,000 of expenses related to the Altman Logistics platform acquisition and higher General and administrative expense ($907,000). General and administrative expense increased primarily due to overlapping compensation as a result of the implementation of our executive succession and transition plan that commenced in June, 2024. Industrial and commercial segment operating profit declined $1,057,000 because of a $446,000 increase in depreciation expense from completion of our new Chelsea warehouse, as well as lower occupancy due to a tenant default and non-renewing leases. Mining Royalty Land's segment operating profit increased $1,034,000 due to higher royalty revenues and the prior year's overpayment deduction of $566,000.Net investment income decreased $1,517,000 from reduced earnings on cash equivalents ($1,303,000) and reduced income from our lending ventures ($214,000) primarily due to fewer residential lot sales.Interest expense decreased $224,000 compared to the same period last year as we capitalized $215,000 more interest. More interest was capitalized due to increased in-house and joint venture projects under development this quarter compared to last year.Equity in loss of Joint Ventures improved $1,947,000 because of improved results at our unconsolidated joint ventures. Results improved at The Verge ($517,000) due to lower rent concessions, improved occupancy and lower interest expense, and also at Bryant Street ($911,000) and BC Realty ($623,000) because of higher revenues and lower variable rate interest expense.Multifamily Segment (Pro rata consolidated and pro rata unconsolidated)For ease of comparison all the figures in the tables below include the results for The Verge from prior periods (when this project was still in our Development segment). Nine months ended September 30 (dollars in thousands) 2025 % 2024 % Change % Lease revenue $25,238 100.0% 24,222 100.0% 1,016 4.2% Depreciation and amortization 10,020 39.7% 10,042 41.5% (22) -.2%Operating expenses 8,158 32.3% 7,913 32.7% 245 3.1%Property taxes 2,999 11.9% 2,666 11.0% 333 12.5% Cost of operations 21,177 83.9% 20,621 85.1% 556 2.7% Operating profit before G&A $4,061 16.1% 3,601 14.9% 460 12.8% Depreciation and amortization 10,020 10,042 (22) Unrealized rents & other (144) 248 (392) Net operating income $13,937 55.2% 13,891 57.3% 46 .3%The combined consolidated and unconsolidated pro rata net operating income this quarter for this segment was $13,937,000, up $46,000 compared to $13,891,000 in the same period last year. The NOI increase was primarily due to improved results at Bryant Street, .408 Jackson, and The Verge mostly offset by underperformance at Maren due to increased uncollectable revenue along with higher operating costs and property taxes. Apartment Building Units Pro rata NOIYTD 2025 Pro rata NOIYTD 2024 Avg. Occupancy YTD 2025 Avg. Occupancy YTD 2024 Renewal Success Rate YTD 2025 Renewal % increase YTD 2025 Dock 79 Anacostia DC 305 $2,838,000 $2,842,000 95.0% 94.1% 69.3% 3.8%Maren Anacostia DC 264 $2,541,000 $2,820,000 93.8% 94.5% 55.1% 3.9%Riverside Greenville 200 $650,000 $682,000 92.6% 93.6% 56.3% 4.9%Bryant Street DC 487 $4,730,000 $4,588,000 93.5% 91.9% 58.8% 2.4%.408 Jackson Greenville 227 $1,076,000 $1,000,000 94.9% 94.6% 59.0% 4.0%Verge Anacostia DC 344 $2,102,000 $1,959,000 92.9% 89.7% 67.6% 2.5%Multifamily Segment 1,827 $13,937,000 $13,891,000 93.7% 92.7% Multifamily Segment (Consolidated - Dock 79 and The Maren) Nine months ended September 30 (dollars in thousands) 2025 % 2024 % Change % Lease revenue $16,547 100.0% 16,592 100.0% (45) -.3% Depreciation and amortization 5,932 35.8% 5,947 35.9% (15) -.3%Operating expenses 4,875 29.5% 4,553 27.4% 322 7.1%Property taxes 1,919 11.6% 1,665 10.0% 254 15.3% Cost of operations 12,726 76.9% 12,165 73.3% 561 4.6% Operating profit before G&A $3,821 23.1% 4,427 26.7% (606) -13.7%Total revenues for our two consolidated joint ventures were $16,547,000, an increase of $45,000 versus $16,592,000 in the same period last year. Total operating profit before G&A for the consolidated joint ventures was $3,821,000, a decrease of $606,000, or 14% versus $4,427,000 in the same period last year primarily due to higher operating expenses ($322,000) and property taxes ($254,000).Multifamily Segment (Pro rata unconsolidated)Our Multifamily Segment has four unconsolidated joint ventures (Bryant Street, The Verge, Riverside, and .408 Jackson). Riverside was moved from the Development segment to the Multifamily segment in 2022, Bryant Street and .408 Jackson moved as of the beginning of 2024 and The Verge moved effective July 1, 2024, each upon reaching lease up stabilization. Nine months ended September 30 (dollars in thousands) 2025 % 2024 % Change % Lease revenue $16,225 100.0% 15,180 100.0% 1,045 6.9% Depreciation and amortization 6,768 41.7% 6,783 44.7% (15) -.2%Operating expenses 5,560 34.3% 5,437 35.8% 123 2.3%Property taxes 1,954 12.0% 1,761 11.6% 193 11.0% Cost of operations 14,282 88.0% 13,981 92.1% 301 2.2% Operating profit $1,943 12.0% 1,199 7.9% 744 62.1% For our four unconsolidated joint ventures, pro rata revenues were $16,225,000, an increase of $1,045,000 or 7% compared to $15,180,000 in the same period last year. Pro rata operating profit before G&A was $1,943,000, an increase of $744,000, or 62% versus $1,199,000 in the same period last year. The increase was due to lease up at The Verge and higher revenues at Bryant Street and .408 Jackson.Industrial and Commercial Segment Nine months ended September 30 (dollars in thousands) 2025 % 2024 % Change % Lease revenue $3,950 100.0% 4,353 100.0% (403) (9.3%) Depreciation and amortization 1,529 38.7% 1,083 24.8% 446 41.2%Operating expenses 687 17.4% 591 13.6% 96 16.2%Property taxes 307 7.8% 195 4.5% 112 57.4% Cost of operations 2,523 63.9% 1,869 42.9% 654 35.0% Operating profit before G&A $1,427 36.1% 2,484 57.1% (1,057) (42.6%) Depreciation and amortization 1,529 1,083 446 Unrealized revenues 97 (12) 109 Net operating income $3,053 77.3% $3,555 81.7% $(502) (14.1%)Total revenues in this segment were $3,950,000, down $403,000 or 9%, over the same period last year. Operating profit before G&A was $1,427,000, down $1,057,000 or 43% from $2,484,000 in the same period last year due to $432,000 of depreciation and $70,000 of operating costs at our spec Chelsea warehouse placed in service in April, a write-off of $118,000 unrealized rent receivable and $34,000 deferred leasing commission related to a tenant that defaulted, and the related lower occupancy. Net operating income in this segment was $3,053,000, down $502,000 or 14% compared to the same period last year.Mining Royalty Lands Segment Results Nine months ended September 30 (dollars in thousands) 2025 % 2024 % Change % Mining royalty and rent revenue $10,532 100.0% 9,393 100.0% 1,139 12.1% Depreciation, depletion and amortization 568 5.4% 471 5.0% 97 20.6%Operating expenses 49 0.5% 53 0.6% (4) -7.5 Property taxes 226 2.1% 214 2.3% 12 5.6% Cost of operations 843 8.0% 738 7.9% 105 14.2% Operating profit before G&A $9,689 92.0% 8,655 92.1% 1,034 11.9% Depreciation and amortization 568 471 97 Unrealized revenues 448 1,765 (1,317) Net operating income $10,705 101.6% $10,891 115.9% $(186) (1.7%)Total revenues in this segment were $10,532,000, an increase of $1,139,000 or 12% versus $9,393,000 in the same period last year. Royalty revenues in the prior year were impacted by the deduction of royalties to resolve an $842,000 overpayment which we referenced previously. Through the nine months of last year, the tenant withheld $619,000 in royalties otherwise due to the Company. Royalty tons were down 5% primarily due to a decrease at one location that had one-time project specific rail shipments in the prior year. The revenue reduction from the decreased volume was more than offset by increased royalties per ton (up 10.6% excluding the prior year payment deduction) along with the overpayment reduction in the prior year. Total operating profit before G&A in this segment was $9,689,000, an increase of $1,034,000 versus $8,655,000 in the same period last year. Net operating income in this segment was $10,705,000, down $186,000 or 2% compared to the same period last year as higher revenues were more than offset by a $1,317,000 decrease in unrealized revenues (see discussion in the Mining segment's quarterly analysis.Development Segment Results Nine months ended September 30 (dollars in thousands) 2025 2024 Change Lease revenue $902 905 (3) Depreciation, depletion and amortization 129 128 1 Operating expenses 2,132 232 1,900 Property taxes 443 443 - Cost of operations 2,704 803 1,901 Operating profit before G&A $(1,802) 102 (1,904)FRP HOLDINGS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands, except share data)Assets: September 302025 December 312024 Real estate investments at cost: Land $180,121 168,943 Buildings and improvements 308,807 283,421 Projects under construction 29,548 32,770 Total investments in properties 518,476 485,134 Less accumulated depreciation and depletion 85,746 77,695 Net investments in properties 432,730 407,439 Real estate held for investment, at cost 12,484 11,722 Investments in joint ventures 143,298 153,899 Net real estate investments 588,512 573,060 Cash and cash equivalents 134,853 148,620 Cash held in escrow 966 1,315 Accounts receivable, net 1,560 1,352 Federal and state income taxes receivable 961 - Unrealized rents 1,262 1,380 Deferred costs 2,509 2,136 Other assets 637 622 Total assets $731,260 728,485 Liabilities: Secured notes payable $185,338 178,853 Accounts payable and accrued liabilities 9,365 6,026 Other liabilities 1,487 1,487 Federal and state income taxes payable - 611 Deferred revenue 2,973 2,437 Deferred income taxes 67,655 67,688 Deferred compensation 1,508 1,465 Tenant security deposits 738 805 Total liabilities 269,064 259,372 Commitments and contingencies Equity: Common stock, $.10 par value25,000,000 shares authorized,19,109,234 and 19,046,894 shares issuedand outstanding, respectively 1,911 1,905 Capital in excess of par value 70,558 68,876 Retained earnings 355,217 352,267 Accumulated other comprehensive income, net 32 55 Total shareholders' equity 427,718 423,103 Noncontrolling interests 34,478 46,010 Total equity 462,196 469,113 Total liabilities and equity $731,260 728,485 Non-GAAP Financial Measures.To supplement the financial results presented in accordance with GAAP, FRP presents certain non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. We believe these non-GAAP measures provide useful information to our Board of Directors, management and investors regarding certain trends relating to our financial condition and results of operations. Our management uses these non-GAAP measures to compare our performance to that of prior periods for trend analyses, purposes of determining management incentive compensation and budgeting, forecasting and planning purposes. We provide Pro rata net operating income (NOI) because we believe it assists investors and analysts in estimating our economic interest in our consolidated and unconsolidated partnerships, when read in conjunction with our reported results under GAAP. In this quarter, we provided an adjusted Net Income to adjust for the impact of one-time expenses of the Altman Logistics acquisition, which is a material business combination unlike our historical real estate acquisitions or joint ventures where expenses are capitalized. We also provided adjusted net operating income to adjust for the impact of the one-time material royalty payment in the third quarter of 2024 to better depict the comparable results in both the quarter and year to date. Management believes these adjustments provide a more accurate comparison of our on-going business operations and results over time due to the non-recurring, material and unusual nature of these two specific items. These measures are not, and should not be viewed as, a substitute for GAAP financial measures. For ease of comparison all the figures in the tables below include the results for The Verge in the Multifamily segment for all periods shown.Pro rata Net Operating Income Reconciliation Nine months ending9/30/25 (in thousands) Industrial andCommercialSegment DevelopmentSegment MultifamilySegment MiningRoyaltiesSegment UnallocatedCorporateExpenses FRPHoldingsTotals Net income (loss) $1,092 948 (3,940) 7,385 (2,662) 2,823 Income tax allocation 335 291 (1,221) 2,269 (767) 907 Income (loss) before income taxes 1,427 1,239 (5,161) 9,654 (3,429) 3,730 Less: Unrealized rents - - - - Interest income 2,782 10 4,486 7,278 Plus: Unrealized rents 97 - 20 448 - 565 Professional fees 1,975 114 2,089 Equity in loss of joint ventures - (259) 6,859 35 6,635 Interest expense - - 2,133 - 125 2,258 Depreciation/amortization 1,529 129 5,932 568 8,158 General and administrative - - - - 7,790 7,790 Net operating income (loss) 3,053 302 9,887 10,705 - 23,947 NOI of noncontrolling interest (4,508) (4,508)Pro rata NOI from unconsolidated joint ventures 578 8,558 9,136 Pro rata net operating income $3,053 880 13,937 10,705 - 28,575 Pro rata Net Operating Income Reconciliation Nine months ended 09/30/24 (in thousands) Industrial andCommercialSegment DevelopmentSegment MultifamilySegment MiningRoyaltiesSegment UnallocatedCorporateExpenses FRPHoldingsTotals 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 THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 2025 2024 2025 2024 Reconciliation of net Income to adjusted net income: Net income attributable to the Company $662 $1,361 $2,950 $4,706 Adjustments related to Altman acquisition expenses: Operating expenses 1,263 - 1,975 - General and administrative 18 - 18 - Total adjustments to net income before income taxes 1,281 - 1,993 - Income tax effect on non-GAAP adjustment (301) - (468) - Adjusted net income attributable to the Company $1,642 $1,361 $4,475 $4,706 Reconciliation of NOI to adjusted NOI: Pro rata net operating income $9,523 $11,272 $28,575 $29,036 Minimum royalty payment applicable to prior 24 months - (1,853) - (1,853)Adjusted pro rata net operating income $9,523 $9,419 $28,575 $27,183 Conference CallThe Company will host a conference call on Thursday, November 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 November 20, 2025 by dialing 1-800-839-2389 within the United States. International callers may dial 1-402-220-7204. No passcode needed. An audio replay will also be available on the Company's website under investors, financials, quarterly results (https://investors.frpdev.com/quarterly-reports) following the call.Additional InformationOur investor relations website is https://investors.frpdev.com and we encourage investors to use it as a way of easily finding information about us. We promptly make available on this website, free of charge, the reports that we file or furnish with the SEC, press releases, quarterly earnings presentations, investor presentations, and corporate governance information, which may contain material information about us, and you may subscribe to Email Alerts to be notified of new information posted to this site.Investors are cautioned that any statements in this press release which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These include, but are not limited to: the possibility that we may be unable to find appropriate investment opportunities; levels of construction activity in the markets served by our mining properties; demand for flexible warehouse/office facilities in the MidAtlantic and Florida; multifamily demand in Washington D.C. and Greenville, South Carolina; our ability to obtain zoning and entitlements necessary for property development; the impact of lending and capital market conditions on our liquidity; our ability to finance projects or repay our debt; general real estate investment and development risks; vacancies in our properties; risks associated with developing and managing properties in partnership with others; competition; our ability to renew leases or re-lease spaces as leases expire; illiquidity of real estate investments; bankruptcy or defaults of tenants; the impact of restrictions imposed by our credit facility; the level and volatility of interest rates; environmental liabilities; inflation risks; cybersecurity risks; as the impact of tariffs on our industrial tenants and construction costs; well as other risks listed from time to time in our SEC filings; including but not limited to; our annual and quarterly reports. We have no obligation to revise or update any forward-looking statements, other than as imposed by law, as a result of future events or new information. Readers are cautioned not to place undue reliance on such forward-looking statements.FRP Holdings, Inc. is a holding company engaged in the real estate business, namely (i) leasing and management of commercial properties owned by the Company, (ii) leasing and management of mining royalty land owned by the Company, (iii) real property acquisition, entitlement, development and construction primarily for apartment, retail, warehouse, and office, and (iv) leasing and management of residential apartment buildings.Contact: Matthew C. McNultyChief Financial Officer 904/858-9100SOURCE: FRP Holdings, Inc.View the original press release on ACCESS Newswire