FRP Holdings Reports 31% Increase in Net Income to $1.7 Million in Q1 2025

FRP Holdings, Inc. reported a net income of $1.7 million for the first quarter of 2025, reflecting a 31% increase from $1.3 million in the same period last year. The company's total revenues rose to $10.3 million, a 1.7% increase compared to $10.1 million in the prior year. This growth was primarily driven by a 9.1% increase in mining royalty and rent revenue, which reached $3.2 million, while lease revenue slightly declined by 1.4% to $7.1 million. The company's operating profit, however, decreased by 19% to $2.3 million, attributed to higher general and administrative expenses and the impact of a tenant default in the industrial segment.

In terms of operational performance, FRP Holdings experienced a 10% increase in pro rata net operating income (NOI), which amounted to $9.4 million compared to $8.5 million in the previous year. The multifamily segment saw a 3% increase in pro rata NOI, largely due to improved occupancy at The Verge, while the industrial and commercial segment's NOI decreased by 2% due to the aforementioned tenant eviction. The mining royalty lands segment reported a 19% increase in NOI, benefiting from higher revenues and a decrease in unrealized revenues.

Strategically, the company is focusing on expanding its development pipeline, with plans to invest $79 million into existing real estate holdings and joint ventures throughout 2025. This includes the completion of a 258,000 square-foot industrial asset in Harford County, Maryland, which is currently in the lease-up phase. Additionally, FRP Holdings has secured construction loans for two new industrial joint ventures with Altman Logistics, expected to break ground in the second quarter of 2025. The company is also preparing to begin construction on two multifamily projects, which will add 810 units and an estimated $6 million in NOI upon stabilization.

As of March 31, 2025, FRP Holdings had cash and cash equivalents totaling $142.9 million, with no outstanding debt under its $35 million revolving credit facility. The company reported a net cash provided by operating activities of $4.5 million, an increase from $2.9 million in the same quarter last year. However, net cash used in financing activities rose significantly to $11.3 million, primarily due to a $10.7 million distribution to noncontrolling interests related to partnership ownership increases. Looking ahead, the company anticipates continued challenges in the multifamily segment due to increased competition but remains optimistic about growth opportunities in its mining and development segments.