FRP Holdings Reports 69.7% Decrease in Net Income for Q2 2025

FRP Holdings, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $624,000, or $0.03 per share, a significant decrease of 69.7% compared to $2.059 million, or $0.11 per share, in the same period last year. For the first half of 2025, net income totaled $2.288 million, down 31.6% from $3.345 million in the prior year. Total revenues for the second quarter increased by 3.6% to $10.850 million, driven primarily by an 11.7% rise in mining royalty and rents, which reached $3.609 million, while lease revenue remained relatively stable at $7.241 million.

The company experienced notable changes in its operational metrics. The total operating profit for the second quarter fell to $1.657 million, a decline of 41.2% from $2.820 million in the previous year. This decrease was attributed to higher operating expenses, which rose by 51.6% to $2.580 million, and increased general and administrative costs, which were up 13% to $2.885 million. The Mining Royalty Lands segment showed a 21% increase in net operating income, reflecting improved market conditions, while the Industrial and Commercial segment faced a 15% decrease in net operating income due to tenant evictions and lease expirations.

In terms of strategic developments, FRP Holdings entered into a joint venture agreement with Strategic Real Estate Partners to develop two warehouses in Lake County, Florida, totaling 377,892 square feet. This project aligns with the company's focus on expanding its industrial segment, which is expected to double in size by 2030. Additionally, the company secured a new credit agreement with Wells Fargo, establishing a five-year revolving credit facility of up to $50 million, which will support ongoing and future development projects.

Operationally, the company reported a pro rata net operating income (NOI) of $9.688 million for the second quarter, a 5% increase from the previous year. The Multifamily segment's NOI remained stable, while the Mining Royalty Lands segment's performance improved significantly. The company also noted a decrease in its employee headcount, which may reflect ongoing adjustments to align with its strategic goals. As of June 30, 2025, FRP Holdings had cash and cash equivalents of $153.167 million, providing a solid liquidity position to fund its operations and investments.

Looking ahead, FRP Holdings aims to focus on leasing up current vacancies and investing in new projects to drive future growth. The company anticipates that its ongoing developments and strategic partnerships will enhance its revenue streams and overall market position. However, management cautioned that results may be impacted by market conditions and operational challenges, emphasizing the importance of maintaining flexibility in its business strategy.