FRP Holdings (FRPH) Q2 2025 Earnings Transcript

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Thursday, August 7, 2025 astatine 9 a.m. ET

• Chief Executive Officer — John D. Baker III

• Chief Operating Officer — David H. deVilliers

• Chief Financial Officer — Matt

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Now for the fiscal highlights from our 2nd 4th results. Net income for the 2nd 4th decreased 72% to $600,000 oregon $0.03 per stock versus $2 cardinal oregon $0.11 per stock successful the aforesaid play past twelvemonth owed chiefly to owed diligence-related ineligible expenses and little involvement income. The company's pro rata stock of NOI successful the 2nd 4th accrued 5% year-over-year to $9.7 million, mostly driven by higher contributions from our multifamily and mining royalty segments. More specifically, versus the twelvemonth agone period, the multifamily conception contributed an further $57,000 of NOI and the mining conception contributed an further $637,000 of NOI.

It is worthy noting that our Industrial and Commercial conception NOI decreased by $177,000 year-over-year owed chiefly to the vacancy and uncollectible gross arsenic a effect of a tenant eviction successful Q1 and lease expirations during Q2. We expect that we volition spot comparatively level NOI during 2025 versus 2024 arsenic we enactment to lease up our Chelsea task and regenerate vacancies astatine our Cranberry Industrial Park this twelvemonth and into the archetypal fractional of 2026. whereafter we expect we volition resume meaningful year-over-year NOI growth. I volition present crook the telephone implicit to our Chief Operating Officer, David deVilliers, for his study connected operations. David?

David H. deVilliers: Thank you, Matt, and bully greeting to those connected the telephone this morning. Allow maine to supply further penetration into the 2nd 4th results of the company. Starting with our Commercial and Industrial segment. This conception consists of 10 buildings totaling astir 810,000 quadrate feet, which are chiefly warehouses successful the authorities of Maryland. Total revenues and NOI for the 4th totaled $1.4 cardinal and $1 million, respectively, a alteration of 5% and 15% implicit the aforesaid play past year. The alteration was owed to 64,000 quadrate feet of tenant leases expiring successful Q2.

57,000 quadrate feet attributed to a tenant defaulting connected its lease and the caller completion of our 258,000 quadrate ft state-of-the-art Class A warehouse gathering successful the Perryman concern assemblage of Harford County, Maryland, which was 100% vacant successful the quarter. These vacancies full 50% of the concern conception and a absorption to lease and summation occupancy is simply a priority. Moving connected to the results of our Mining and Royalty concern segment. The part consists of 16 mining locations, predominantly located successful Florida and Georgia with 1 excavation successful Virginia. Total revenues and NOI for the 4th totaled $3.6 cardinal and $3.7 million, respectively, an summation of 12% and 21% implicit the aforesaid play past year.