FRP HOLDINGS, INC. Q3 FY2024 earnings call

• Commercial and Industrial segment: 95.6% of buildings occupied at quarter-end, revenues and NOI up vs same period last year.
• Mining and Royalty Business segment: NOI for quarter included a $1.9 million one-time cash royalty, revenues and NOI up vs same period last year, consists of 16 mining locations.
• Multifamily segment: Bryant Street and 408 Jackson joint ventures and the verge included, leading to increased revenues and NOI. Same-store comparison showed growth. DC market new deliveries and supply put pressure on vacancies and revenue growth, but renewal success rates over 50% with positive rental rate growth.
• Development segment: 258,000 square feet warehouse in Harford County, MD nearing completion, expected to be delivered before year-end. 200,000 square feet warehouse in Lakeland, FL well into entitlement stage. Land closed in Broward County for two Class A warehouses. 170 acres in Cecil County for distribution center in permitting. 55 acre track in Harford County in initial permitting stage. Over next 3-5 years focus on several development projects with estimated costs and potential pro rata NOI.

Commercial and Industrial segment

• Third quarter total revenues and NOI: $1.5 million and $1.2 million respectively, up 0.9% and 10.3% vs same period last year. Consists of nine buildings totaling nearly 550,000 square feet, 95.6% occupied at quarter-end.

Mining and Royalty Business segment

• Third quarter total revenues and NOI: $3.2 million and $5.1 million respectively, up 3.8% and 79.9% vs same period last year. NOI included a $1.9 million one-time cash royalty received during the quarter. Consists of 16 mining locations.

Multifamily segment

• Third quarter FRP's share revenues and NOI: $8.2 million and $4.7 million respectively. Significant increase over prior quarters due to joint ventures included. Bryant Street and 408 Jackson joint ventures and the verge included since 2024, contributing $4.7 million and $2.5 million in revenue and NOI this quarter vs last year's third quarter. Same-store comparison (Dock, Maren and Riverside) had FRP's share of revenues and NOI at $3.5 million and $2.2 million respectively, up 2.2% and 6.5% vs same period last year. Apartments 91.9% occupied, retail space 79.4% occupied. Revenue contribution %: Not explicitly stated in absolute terms for each segment's revenue contribution % but the text details the performance of each segment's financials

• NOI growth rate should moderate as earnings and cash flow grow with more stabilized projects.
• Have a healthy industrial development pipeline with projects to deliver new Class A industrial space.
• Further interest rate cuts and stable construction costs make multifamily development more palatable, though development strategy remains focused on industrial for now.

• New deliveries in DC market put pressure on vacancies and revenue growth for DC assets.
• Industrial and multifamily vacancy rates slightly up across all markets due to new deliveries over last two years.
• Rental rate increases have decelerated and are returning to historical annual 3% to 4% norms.

Q: Is there any questions in the queue?

A: And I'm showing we have no questions in the queue at this time