FRP Holdings, Inc. Q4 FY2025 earnings call

• 2025 was a transition year operationally but saw significant expansion of scale, capabilities, and long-term earnings potential. Late in the fourth quarter, completed the Altman Industrial Acquisition for approximately $33.5 million. • For commercial and industrial, the focus is on leasing velocity, pricing discipline, and progressing occupancy towards approximately 70% by year end with a path to stabilization in the low 90% range over the following 18 to 24 months. • Mining and royalties business provides durable, high-margin cash flow with minimal incremental capital requirements and is an important stabilizing component. • Multifamily focuses on resident retention, disciplined pricing, expense control, and improving retail occupancy. • Operate a capital-efficient logistics platform combining development, selective ownership, and partners to generate multiple sources of return. • Estimated NAV per share is approximately $37.60 and expected to increase to over $40 per share over the next three years. • 2026 focus is on execution and value realization, including leasing the industrial portfolio and stabilizing development.

Commercial and industrial: Portfolio totals approximately 807,000 square feet and ended the year approximately 47.5% occupied or 69.9% excluding the new Chelsea building compared to 95.6% last year. Segment NOI was approximately $875,000 in Q4 and $3.9 million for the year, representing declines of 11.8% and 13.6% respectively. Mining and royalties: Generated approximately $3.9 million of NOI in Q4 and $14.6 million for the year, representing increases of 11.5% and 1.5% respectively, with strong margins. Multifamily: The portfolio includes approximately 1,827 units. NOI totaled approximately $4.2 million in Q4 and $18.1 million for the year, representing modest declines of 2.6 percent and 0.4 percent respectively, with average occupancy around 93 percent and economic occupancy of approximately 88 percent.

• 2026 expected NOI to be approximately 37.1 to 37.7 million. • G&A is expected to increase to approximately 15 to 16 million as integrating the Altman platform and investing in infrastructure. • G&A as a percentage of NOI is expected to be in the low 40 percent range in 2026 and then decline meaningfully as leasing activity accelerates, development stabilizes, and incremental NOI is realized. • Over time, operating leverage is expected to emerge with G&A trending toward a more normalized range in the low 20 percent area. • Ended 2025 with approximately $144 million of liquidity, net debt to enterprise value of approximately 21%, and a weighted average interest rate of approximately 5.24%.

Q: Questions regarding D.C. market absorption, concessions, vacancy, delinquencies, etc.

A: Discussed absorption of around 2,000 units in the D.C. market, concessions, rental growth, occupancy rates at different D.C. assets, delinquency percentages, and legal changes affecting eviction cycles.

Q: Questions about Altman JVs, construction, capital needed, projects delivering, and the lease at Cranberry.

A: Discussed the construction progress of Altman JVs, capital required for projects, leasing at Cranberry where a lease for 15,000 square feet was signed with a face rent 38% higher than the previous tenant, and no concern over the time taken to lease due to improving market activity and internal execution.

Q: Questions about Hartford County development and Woven and Estero developments.

A: Discussed Hartford County development positioning for larger tenants, and Woven having a bridge loan with equity in place while Estero needing approximately $3 million of equity.