FRP Holdings, Inc. (NASDAQ: FRPH) Announces Results for the Second Quarter and Six Months Ended June 30, 2024

JACKSONVILLE, Fla., Aug. 07, 2024 (GLOBE NEWSWIRE) -- FRP Holdings, Inc. (NASDAQ-FRPH)

Second Quarter Highlights

• 242% increase in Net Income ($2.0 million vs $598,000)
• 21% increase in pro rata NOI ($9.2 million vs $7.6 million)
• 84% increase in the Multifamily segment’s pro rata NOI due to the transfer of Bryant St. and .408 Jackson to this segment from our Development segment at the beginning of the year
• 41% increase in Industrial and Commercial segment NOI

Executive Summary and Analysis

Net Income increased by 242% in the second quarter and 188% for the first six months compared to last year, despite operating profit remaining more or less flat. This increase is due both to the improved performance of the Verge during lease-up and increased net investment income from the steady sale of lots this year at Aberdeen Overlook, our most recent Lending Venture. In the second quarter, Aberdeen Overlook generated $1.5 million in investment income compared to $564,000 in the second quarter last year from Amber Ridge, a prior Lending Venture project. In the first six months, Aberdeen Overlook generated $2.1 million in investment income compared to $614,000 last year from Amber Ridge. While Lending Ventures are not necessarily part of our long-term core business strategy, they have been an effective way to put our balance sheet to work to generate real cash at better returns than treasuries.

The Company continued to grow Pro rata Net Operating Income (NOI) at the same meaningful clip that we have achieved over the last 36 months (21.6% CAGR since the same period in 2021). In the second quarter, we saw a 21.2% improvement in NOI compared to the same period last year, and a 21.7% increase in NOI in the first six months compared to the same period last year. The Industrial and Commercial and Multifamily Segments were the primary drivers of this increase. We grew our Industrial and Commercial NOI by 41% in the second quarter and 44% in the first six months when compared to the same periods last year as we burned through a rent abatement period (unrealized revenue) at two buildings at Hollander Business Park in 2023 and started generating real cash flow. Multifamily pro rata NOI increased by 84% this quarter and 88% for the first six months when compared to the same periods last year, mostly due to the stabilization of .408 Jackson and Bryant Street. The addition of the Verge to this segment later this year should only serve to increase the performance of this segment on an NOI basis.

In keeping with our strategy to grow our industrial footprint, in July, we closed on the purchase of the land for our industrial joint venture in Broward County, FL for a total purchase price of $24.5 million, of which we contributed $12.25 million. Per our partnership agreement, we represent 80% of the equity capital in this 182,000 square-foot class A building. We also closed on the land for our other industrial JV in Lakeland, FL at the end of the first quarter of this year for a total purchase price of $2.8 million. We will account for 90% of the equity capital for this 200,000 square-foot industrial project. Total expected capex for these projects is $57 million and $28 million respectively with total equity capital of $26 million and $13 million and an expected start of construction by March of 2025 for both projects. We are in the home stretch on finishing shell construction on our Chelsea project in Harford County, MD. This 258,000 square-foot industrial building should be complete in the fourth quarter of this year with an expected total project cost, including land, of $30 million. We have underwritten all these projects at an unlevered 6-7% yield on cost but expect to outperform these assumptions.

Second Quarter Consolidated Results of Operations

Net income for the second quarter of 2024 was $2,044,000 or $.11 per share versus $598,000 or $.03 per share in the same period last year. Pro rata NOI for the second quarter of 2024 was $9,230,000 versus $7,614,000 in the same period last year. The second quarter of 2024 was impacted by the following items:

• Operating profit increased slightly as favorable results in Multifamily, Industrial and Commercial, and Development were partially offset by lower Mining royalties and higher General and administrative costs.
• Net investment income increased $583,000 due to increased earnings on cash equivalents ($408,000) and increased income from our lending ventures ($781,000), partially offset by decreased preferred interest ($606,000) due to the conversion of FRP preferred equity to common equity at Bryant Street.
• Interest expense decreased $300,000 compared to the same quarter last year due to $334,000 more capitalized interest partially offset by increased costs related to our larger credit agreement. More interest was capitalized due to increased in-house and joint venture projects under development this quarter compared to last year.
• Equity in loss of Joint Ventures improved $1,323,000 due to improved performance of our unconsolidated joint ventures. Results improved at The Verge ($891,000), .408 Jackson ($225,000), Bryant Street ($159,000) and BC Realty ($55,000).

Second Quarter Segment Operating Results

Multifamily Segment:

Our Multifamily Segment consists of two consolidated joint ventures (Dock 79 and The Maren) and three unconsolidated joint ventures (Bryant Street, Riverside, and .408 Jackson). Riverside achieved stabilization in 2022 while Bryant Street and .408 Jackson moved from our Development Segment to this segment upon stabilization as of the beginning of 2024.

Total revenues for our two consolidated joint ventures were $5,496,000, a decrease of $49,000 versus $5,545,000 in the same period last year. Total operating profit for the consolidated joint ventures was $1,130,000, an increase of $218,000, or 24% versus $912,000 in the same period last year primarily because of less depreciation expense.

For our three unconsolidated joint ventures, pro rata revenues were $3,865,000, an increase of $905,000 or 31% compared to $2,960,000 in the same period last year. Pro rata operating profit was $508,000, an increase of $455,000 or 858% versus $53,000 in the same period last year. For ease of comparison these figures and the table below include the results for Bryant Street and .408 Jackson from the same period last year (when these projects were still in our Development segment).

		Pro rata NOI	Pro rata NOI		Avg. Occupancy	Avg. Occupancy	Renewal Success Rate Q2	Renewal % increase Q2
Apartment Building	Units	Q2 2024	Q2 2023		Q2 2024	CY 2023	2024	2024
Dock 79 Anacostia DC	305	$932,000	$986,000		93.6%	94.4%	60.4%	4.2%
Maren Anacostia DC	264	$923,000	$942,000		94.8%	95.6%	74.4%	2.0%
Bryant Street DC	487	$1,555,000	$1,130,000		91.2%	93.0%	60.9%	1.7%
Riverside Greenville	200	$215,000	$224,000		93.0%	94.5%	52.4%	5.5%
.408 Jackson Greenville	227	$345,000	$88,000		96.2%	59.9%	65.3%	4.6%
Multifamily Segment	1,483	$3,970,000	$3,370,000		93.3%	88.9%

The combined consolidated and unconsolidated pro rata net operating income this quarter for this segment was $3,970,000, up $1,818,000 or 84% compared to $2,152,000 in the same quarter last year. Substantially all of this increase was from the transfer of Bryant Street and .408 Jackson from Development to this segment at the beginning of 2024 as same store NOI was more or less flat. T hese two projects contributed $1,900,000 of pro rata NOI to this segment compared to $1,218,000 in the Development segment in the same quarter last year, an increase of $682,000.

Industrial and Commercial Segment:

Total revenues in this segment were $1,445,000, up $25,000 or 2%, over the same period last year. Operating profit was $490,000, up $80,000 or 20% over the same quarter last year. We now have nine buildings in service at three different locations totaling 515,077 square feet of industrial and 33,708 square feet of office. These assets were 95.6% leased and occupied during the entire quarter. Net operating income in this segment was $1,187,000, up $344,000 or 41% compared to the same quarter last year primarily due to $335,000 more unrealized rental revenue in the prior year due to rent abatements that expired in 2023.

Mining Royalty Lands Segment:

Total revenues in this segment were $3,231,000, a decrease of $33,000 or 1% versus $3,264,000 in the same period last year. Royalty tons were down 5%. Total operating profit in this segment was $2,643,000, a decrease of $89,000 versus $2,732,000 in the same period last year. Net Operating Income this quarter for this segment was $3,028,000, down $97,000 or 3% compared to the same quarter last year. The primary reason for these decreases is the deduction of royalties to resolve an $842,000 overpayment, as referenced in our 10-Q from the quarter ended June 30, 2023. As part of the ongoing resolution of this overpayment, this quarter, the tenant withheld $277,000 in royalties otherwise due the Company. The outstanding balance on this overpayment credit is $53,000 which we expect will be exhausted in the first month of the third quarter of this year.

Development Segment:

With respect to ongoing Development Segment projects:

• We entered into two new joint venture agreements in early 2024 with BBX Logistics. The first joint venture is a 200,000 square-foot warehouse development project in Lakeland, FL, and the second joint venture is a 182,000 square-foot warehouse redevelopment project in Broward County, FL. We anticipate construction to start on both projects in the first quarter of 2025.
• Last summer we broke ground on a new speculative warehouse project in Aberdeen, MD on Chelsea Road. Vertical construction is underway. This Class A, 258,000 square foot building is due to be complete in the 4th quarter of 2024.
• The Verge has achieved residential stabilization and will move to our Multifamily segment on July 1, 2024. At quarter end, the building was 93.3% leased and 90.7% occupied. This is our third mixed-use project in the Anacostia waterfront submarket in Washington, DC.
• We are the principal capital source to develop 344 residential lots on 110 acres in Harford County, MD. The project includes 110 acres and 344 residential building lots. We have funded $24.6 million of our $31.1 million total commitment. A national homebuilder is under contract to purchase all 222 townhome lots and 122 single family lots. At quarter-end, 78 lots have been sold and $12.7 million of preferred interest and principal has been returned to the company of which $3.2 million was booked as profit to the Company.

Six Month Highlights

• 188% increase in Net Income ($3.3 million vs $1.2 million)
• 22% increase in pro rata NOI ($17.8 million vs $14.6 million)
• 88% increase in the Multifamily segment’s NOI due to the transfer of Bryant St. and .408 Jackson to this segment from our Development segment at the beginning of the year
• 16% increase in Industrial and Commercial revenue and 44% increase in that segment’s NOI

First Half Consolidated Results of Operations

Net income for the first six months of 2024 was $3,345,000 or $.18 per share versus $1,163,000 or $.06 per share in the same period last year. Pro rata NOI for the first six months of 2024 was $17,764,000 versus $14,602,000 in the same period last year. The first six months of 2024 were impacted by the following items:

• Operating profit increased slightly as favorable results in Multifamily, Industrial and Commercial, and Development were partially offset by lower Mining royalties and higher General and administrative costs.
• Net investment income increased $984,000 due to increased earnings on cash equivalents ($960,000) and increased income from our lending ventures ($1,230,000), partially offset by decreased preferred interest ($1,206,000) due to the conversion of FRP preferred equity to common equity at Bryant Street.
• Interest expense decreased $395,000 compared to the same period last year due to $461,000 more capitalized interest partially offset by increased costs related to our larger credit agreement. More interest was capitalized due to increased in-house and joint venture projects under development this quarter compared to last year.
• Equity in loss of Joint Ventures improved $1,929,000 due to improved results at our unconsolidated joint ventures. Results improved at The Verge ($1,587,000), .408 Jackson ($273,000), and BC Realty ($110,000).

First Half Segment Operating Results

Multifamily Segment:

Total revenues for our two consolidated joint ventures were $10,910,000, an increase of $89,000 versus $10,821,000 in the same period last year. Total operating profit for the consolidated joint ventures was $2,342,000, an increase of $626,000, or 36% versus $1,716,000 in the same period last year primarily because of less depreciation expense.

For our three unconsolidated joint ventures, pro rata revenues were $7,578,000, an increase of $1,912,000 or 34% compared to $5,666,000 in the same period last year. Pro rata operating profit was $917,000, an increase of $654,000 or 249% versus $263,000 in the same period last year. For ease of comparison these figures and the table below include the results for Bryant Street and .408 Jackson from the same period last year (when these projects were still in our Development segment).

		Pro rata NOI	Pro rata NOI		Avg. Occupancy	Avg. Occupancy	Renewal Success Rate YTD	Renewal % increase
Apartment Building	Units	YTD 2024	YTD 2023		YTD 2024	CY 2023	2024	YTD 2024
Dock 79 Anacostia DC	305	$1,878,000	$1,873,000		94.2%	94.4%	65.3%	3.5%
Maren Anacostia DC	264	$1,847,000	$1,856,000		94.3%	95.6%	63.4%	2.2%
Bryant Street DC	487	$3,051,000	$2,385,000		92.0%	93.0%	58.3%	3.6%
Riverside Greenville	200	$439,000	$445,000		93.3%	94.5%	58.4%	3.4%
.408 Jackson Greenville	227	$638,000	$66,000		94.6%	59.9%	53.7%	4.3%
Multifamily Segment	1,483	$7,853,000	$6,625,000		93.5%	88.9%

The combined consolidated and unconsolidated Pro rata net operating income this quarter for this segment was $7,853,000, up $3,679,000 or 88% compared to $4,174,000 in the same period last year. Substantially all of this increase was from the transfer of Bryant Street and .408 Jackson from Development to this segment at the beginning of 2024 as same store NOI was more or less flat. These two projects contributed $3,689,000 of Pro rata NOI to this segment compared to $2,451,000 in the Development segment in the same period last year, an increase of $1,238,000.

Industrial and Commercial Segment:

Total revenues in this segment were $2,898,000, up $408,000 or 16%, over the same period last year. Operating profit was $1,052,000, up $347,000 or 49% from $705,000 in the same quarter last year. Revenues and operating profit are up because of full occupancy at 1841 62nd Street (which had only $11,000 of revenue in the first quarter last year) and the addition of 1941 62nd Street to this segment in March 2023. We now have nine buildings in service at three different locations totaling 515,077 square feet of industrial and 33,708 square feet of office. We were 95.6% leased and occupied during the entire period. Net operating income in this segment was $2,346,000, up $716,000 or 44% compared to the same period last year partially due to $401,000 more unrealized rental revenue in the prior year due to rent abatements that expired in 2023.

Mining Royalty Lands Segment:
Total revenues in this segment were $6,194,000, a decrease of $352,000 or 5% versus $6,546,000 in the same period last year. Royalty tons were down 10%. Total operating profit in this segment was $5,089,000, a decrease of $433,000 versus $5,522,000 in the same period last year. Net operating income in this segment was $5,788,000, down $485,000 or 8% compared to the same period last year. Among the reasons for this decrease is a shift in production off our land in Manassas, but the primary factor in the decrease is the deduction of royalties to resolve an $842,000 overpayment which we referenced previously. Through the first two quarters of this year, the tenant has withheld $566,000 in royalties otherwise due to the Company.

Conference Call

The Company will host a conference call on Thursday, August 8, 2024 at 2:00 p.m. (EDT). Analysts, stockholders and other interested parties may access the teleconference live by calling 1-800-579-2543 (passcode 72219) within the United States. International callers may dial 1-785-424-1789 (passcode 72219). Audio replay will be available until August 22, 2024 by dialing 1-800-756-0554 within the United States. International callers may dial 1-402-220-7213. No passcode needed. An audio replay will also be available on the Company’s investor relations page (https://www.frpdev.com/investor-relations/) following the call.

Investors are cautioned that any statements in this press release which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These include, but are not limited to: the possibility that we may be unable to find appropriate investment opportunities; levels of construction activity in the markets served by our mining properties; demand for flexible warehouse/office facilities in the MidAtlantic and Florida; multifamily demand in Washington D.C. and Greenville, South Carolina; our ability to obtain zoning and entitlements necessary for property development; the impact of lending and capital market conditions on our liquidity; our ability to finance projects or repay our debt; general real estate investment and development risks; vacancies in our properties; risks associated with developing and managing properties in partnership with others; competition; our ability to renew leases or re-lease spaces as leases expire; illiquidity of real estate investments; bankruptcy or defaults of tenants; the impact of restrictions imposed by our credit facility; the level and volatility of interest rates; environmental liabilities; inflation risks; cybersecurity risks; as well as other risks listed from time to time in our SEC filings; including but not limited to; our annual and quarterly reports. We have no obligation to revise or update any forward-looking statements, other than as imposed by law, as a result of future events or new information. Readers are cautioned not to place undue reliance on such forward-looking statements.

FRP Holdings, Inc. is a holding company engaged in the real estate business, namely (i) leasing and management of commercial properties owned by the Company, (ii) leasing and management of mining royalty land owned by the Company, (iii) real property acquisition, entitlement, development and construction primarily for apartment, retail, warehouse, and office, (iv) leasing and management of residential apartment buildings.                         

FRP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands except per share amounts) (Unaudited)
	THREE MONTHS ENDED JUNE 30,						SIX MONTHS ENDED JUNE 30,
		2024		2023				2024			2023
Revenues:
Lease revenue	$	7,246		7,432			$	14,416			14,264
Mining royalty and rents		3,231		3,264				6,194			6,546
Total revenues		10,477		10,696				20,610			20,810
Cost of operations:
Depreciation/depletion/amortization		2,543		2,819				5,078			5,599
Operating expenses		1,702		1,822				3,569			3,562
Property taxes		860		879				1,667			1,826
General and administrative		2,552		2,409				4,594			4,202
Total cost of operations		7,657		7,929				14,908			15,189
Total operating profit		2,820		2,767				5,702			5,621
Net investment income		3,708		3,125				6,491			5,507
Interest expense		(829	)	(1,129	)			(1,740	)		(2,135	)
Equity in loss of joint ventures		(2,724	)	(4,047	)			(5,743	)		(7,672	)
(Loss) gain on sale of real estate		—		(2	)			—			8
Income before income taxes		2,975		714				4,710			1,329
Provision for income taxes		916		222				1,316			431
Net income		2,059		492				3,394			898
Income (loss) attributable to noncontrolling interest		15		(106	)			49			(265	)
Net income attributable to the Company	$	2,044		598			$	3,345		$	1,163
Earnings per common share(1):
Net income attributable to the Company-
Basic	$	.11		.03			$	.18			.06
Diluted	$	.11		.03			$	.18			.06

Number of shares (in thousands) used in computing ⁽¹⁾:

-basic earnings per common share	18,879	18,864	18,871	18,848
-diluted earnings per common share	18,948	18,932	18,958	18,926

(1) adjusted for the 2 for 1 stock split that occurred in April 2024

        

FRP HOLDINGS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share data)
		June 30	December 31
		2024	2023
Assets:
Real estate investments at cost:
Land	$	141,602	141,602
Buildings and improvements		282,977	282,631
Projects under construction		22,568	10,845
Total investments in properties		447,147	435,078
Less accumulated depreciation and depletion		72,734	67,758
Net investments in properties		374,413	367,320
Real estate held for investment, at cost		11,111	10,662
Investments in joint ventures		161,391	166,066
Net real estate investments		546,915	544,048
Cash and cash equivalents		156,929	157,555
Cash held in escrow		1,491	860
Accounts receivable, net		1,827	1,046
Federal and state income taxes receivable		—	337
Unrealized rents		1,905	1,640
Deferred costs		2,188	3,091
Other assets		601	589
Total assets	$	711,856	709,166
Liabilities:
Secured notes payable	$	178,779	178,705
Accounts payable and accrued liabilities		7,303	8,333
Other liabilities		1,487	1,487
Federal and state income taxes payable		1,708	—
Deferred revenue		762	925
Deferred income taxes		68,356	69,456
Deferred compensation		1,436	1,409
Tenant security deposits		877	875
Total liabilities		260,708	261,190
Commitments and contingencies		—	—
Equity:
Common stock, $.10 par value 25,000,000 shares authorized, 19,030,474 and 18,968,448 shares issued and outstanding, respectively		1,903	1,897
Capital in excess of par value		67,980	66,706
Retained earnings		349,227	345,882
Accumulated other comprehensive income, net		22	35
Total shareholders’ equity		419,132	414,520
Noncontrolling interest		32,016	33,456
Total equity		451,148	447,976
Total liabilities and equity	$	711,856	709,166

Multifamily Segment (Consolidated):

	Three months ended June 30
(dollars in thousands)		2024		%			2023		%				Change			%
Lease revenue	$	5,496		100.0	%		5,545		100.0	%			(49	)		-.9	%
Depreciation and amortization		1,981		36.0	%		2,268		40.9	%			(287	)		-12.7	%
Operating expenses		1,519		27.6	%		1,557		28.1	%			(38	)		-2.4	%
Property taxes		576		10.5	%		563		10.2	%			13			2.3	%
General and administrative		290		5.3	%		245		4.4	%			45			18.4	%
Cost of operations		4,366		79.4	%		4,633		83.6	%			(267	)		-5.8	%
Operating profit	$	1,130		20.6	%		912		16.4	%			218			23.9	%

Multifamily Segment (Pro rata Unconsolidated):

	Three months ended June 30
(dollars in thousands)	2024			%				2023				%					Change						%
Lease revenue	$	3,865		100.0%				2,960				100.0%					905						30.6%
Depreciation and amortization	1,570			40.6%				1,420				48.0%					150						10.6%
Operating expenses	1,371			35.5%				1,169				39.5%					202						17.3%
Property taxes	416			10.8%				318				10.7%					98						30.8%
Cost of operations	3,357			86.9%				2,907				98.2%					450						15.5%
Operating profit	$	508		13.1%				53				1.8%					455						858.5%

Industrial and Commercial Segment:

	Three months ended June 30
(dollars in thousands)		2024		%			2023		%				Change			%
Lease revenue	$	1,445		100.0	%		1,420		100.0	%			25			1.8	%
Depreciation and amortization		360		25.0	%		359		25.3	%			1			0.3	%
Operating expenses		191		13.2	%		176		12.4	%			15			8.5	%
Property taxes		64		4.4	%		63		4.4	%			1			1.6	%
General and administrative		340		23.5	%		412		29.0	%			(72	)		-17.5	%
Cost of operations		955		66.1	%		1,010		71.1	%			(55	)		(5.4	%)
Operating profit	$	490		33.9	%		410		28.9	%			80			19.5	%

Mining Royalty Lands Segment:

		Three months ended June 30
(dollars in thousands)		2024			%			2023			%						Change				%
Mining royalty and rent revenue		$	3,231		100.0%			3,264			100.0%						(33)				-1.0%
Depreciation, depletion and amortization		159			4.9%			151			4.6%						8				5.3%
Operating expenses		16			0.5%			16			0.5%						—				—
Property taxes		71			2.2%			74			2.3%						(3)				-4.1%
General and administrative		342			10.6%			291			8.9%						51				17.5%
Cost of operations		588			18.2%			532			16.3%						56				10.5%
Operating profit		$	2,643		81.8%			2,732			83.7%						(89)				-3.3%

Development Segment:

	Three months ended June 30
(dollars in thousands)		2024				2023				Change
Lease revenue	$	305				467				(162	)
Depreciation and amortization		43				41				2
Operating expenses		(24	)			73				(97	)
Property taxes		149				179				(30	)
General and administrative		1,029				1,461				(432	)
Cost of operations		1,197				1,754				(557	)
Operating loss	$	(892	)			(1,287	)			395

Multifamily Segment (Consolidated):

	Six months ended June 30
(dollars in thousands)		2024		%			2023		%				Change			%
Lease revenue	$	10,910		100.0	%		10,821		100.0	%			89			.8	%
Depreciation and amortization		3,962		36.3	%		4,532		41.9	%			(570	)		-12.6	%
Operating expenses		2,980		27.3	%		3,045		28.1	%			(65	)		-2.1	%
Property taxes		1,100		10.1	%		1,094		10.1	%			6			.5	%
General and administrative		526		4.8	%		434		4.0	%			92			21.2	%
Cost of operations		8,568		78.5	%		9,105		84.1	%			(537	)		-5.9	%
Operating profit	$	2,342		21.5	%		1,716		15.9	%			626			36.5	%

Multifamily Segment (Pro rata Unconsolidated):

	Six months ended June 30
(dollars in thousands)		2024		%			2023		%				Change		%
Lease revenue	$	7,578		100.0	%		5,666		100.0	%			1,912		33.7	%
Depreciation and amortization		3,132		41.3	%		2,685		47.4	%			447		16.6	%
Operating expenses		2,652		35.0	%		2,225		39.3	%			427		19.2	%
Property taxes		877		11.6	%		493		8.7	%			384		77.9	%
Cost of operations		6,661		87.9	%		5,403		95.4	%			1,258		23.3	%
Operating profit	$	917		12.1	%		263		4.6	%			654		248.7	%

Industrial and Commercial Segment:

	Six months ended June 30
(dollars in thousands)		2024		%			2023		%				Change			%
Lease revenue	$	2,898		100.0	%		2,490		100.0	%			408			16.4	%
Depreciation and amortization		723		24.9	%		637		25.7	%			86			13.5	%
Operating expenses		406		14.0	%		317		12.7	%			89			28.1	%
Property taxes		127		4.4	%		123		4.9	%			4			3.3	%
General and administrative		590		20.4	%		708		28.4	%			(118	)		-16.7	%
Cost of operations		1,846		63.7	%		1,785		71.7	%			61			3.4	%
Operating profit	$	1,052		36.3	%		705		28.3	%			347			49.2	%

Mining Royalty Lands Segment:

	Six months ended June 30
(dollars in thousands)		2024		%			2023		%				Change			%
Mining royalty and rent revenue	$	6,194		100.0	%		6,546		100.0	%			(352	)		-5.4	%
Depreciation, depletion and amortization		308		5.0	%		334		5.0	%			(26	)		-7.8	%
Operating expenses		33		0.5	%		33		0.5	%			—			—
Property taxes		144		2.3	%		143		2.2	%			1			0.7	%
General and administrative		620		10.0	%		514		7.9	%			106			20.6	%
Cost of operations		1,105		17.8	%		1,024		15.6	%			81			7.9	%
Operating profit	$	5,089		82.2	%		5,522		84.4	%			(433	)		-7.8	%

Development Segment:

	Six months ended June 30
(dollars in thousands)		2024				2023				Change
Lease revenue	$	608				953				(345	)
Depreciation and amortization		85				96				(11	)
Operating expenses		150				167				(17	)
Property taxes		296				466				(170	)
General and administrative		2,307				2,546				(239	)
Cost of operations		2,838				3,275				(437	)
Operating loss	$	(2,230	)			(2,322	)			92

The following table summarizes the Company’s investments in unconsolidated joint ventures (in thousands):

	Common Ownership			Total Investment	Total Assets of The Partnership	Profit (Loss) Of the Partnership		The Company's Share of Profit (Loss) of the Partnership
As of June 30, 2024
Brooksville Quarry, LLC	50.00	%	$	7,528	14,548	(44	)	(22	)
BC FRP Realty, LLC	50.00	%		5,783	22,708	(130	)	(65	)
Buzzard Point Sponsor, LLC	50.00	%		2,402	4,804	—		—
Bryant Street Partnerships	72.10	%		68,334	201,139	(4,594	)	(3,382	)
Lending ventures				26,273	15,647	—		—
BBX Partnerships	50.00	%		2,304	4,598	—		—
Estero Partnership	16.00	%		3,655	38,520	—		—
The Verge Partnership	61.37	%		38,568	128,752	(2,797	)	(1,717	)
Greenville Partnerships	40.00	%		6,544	100,330	(1,392	)	(557	)
Total			$	161,391	531,046	(8,957	)	(5,743	)

Non-GAAP Financial Measures.

To supplement the financial results presented in accordance with GAAP, FRP presents certain non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. We believe these non-GAAP measures provide useful information to our Board of Directors, management and investors regarding certain trends relating to our financial condition and results of operations. Our management uses these non-GAAP measures to compare our performance to that of prior periods for trend analyses, purposes of determining management incentive compensation and budgeting, forecasting and planning purposes. We provide Pro rata net operating income (NOI) because we believe it assists investors and analysts in estimating our economic interest in our consolidated and unconsolidated partnerships, when read in conjunction with our reported results under GAAP. This measure is not, and should not be viewed as, a substitute for GAAP financial measures.

Pro rata Net Operating Income Reconciliation
Six months ended 06/30/24 (in thousands)
	Industrial and Commercial Segment			Development Segment			Multifamily Segment		Mining Royalties Segment		Unallocated Corporate Expenses	FRP Holdings Totals
Net income (loss)	$	805		(1,115	)		(2,477)		3,876		2,305		3,394
Income tax allocation	247			(343	)		(772)		1,191		993		1,316
Income (loss) before income taxes	1,052			(1,458	)		(3,249)		5,067		3,298		4,710
Less:
Unrealized rents	19						9		229				257
Interest income				2,554							3,937		6,491
Plus:
Professional fees							15						15
Equity in loss of joint ventures	—			1,782			3,939		22				5,743
Interest expense	—			—			1,652		—		88		1,740
Depreciation/amortization	723			85			3,962		308				5,078
General and administrative	590			2,307			526		620		551		4,594
Net operating income (loss)	2,346			162			6,836		5,788		—		15,132
NOI of noncontrolling interest							(3,111)						(3,111	)
Pro rata NOI from unconsolidated joint ventures				1,615			4,128						5,743
Pro rata net operating income	$	2,346		1,777			7,853		5,788		—		17,764

Pro rata Net Operating Income Reconciliation Six months ended 06/30/23 (in thousands)
	Industrial and Commercial			Development			Multifamily			Mining Royalties		Unallocated Corporate		FRP Holdings
	Segment			Segment			Segment			Segment		Expenses		Totals
Net income (loss)	$	513		(5,257	)		(509	)		4,018		2,133		898
Income tax allocation		190		(1,950	)		(90	)		1,490		791		431
Income (loss) before income taxes		703		(7,207	)		(599	)		5,508		2,924		1,329
Less:
Unrealized rents		420		—			—			97		—		517
Gain on sale of real estate		—		—			—			10		—		10
Interest income		—		2,561			—			—		2,946		5,507
Plus:
Unrealized rents		—		—			100			—		—		100
Loss on sale of real estate		2		—			—			—		—		2
Professional fees		—		—			59			—		—		59
Equity in loss of joint ventures		—		7,446			202			24		—		7,672
Interest Expense		—		—			2,113			—		22		2,135
Depreciation/amortization		637		96			4,532			334		—		5,599
General and administrative		708		2,546			434			514		—		4,202
Net operating income (loss)		1,630		320			6,841			6,273		—		15,064
NOI of noncontrolling interest		—		—			(3,112	)		—		—		(3,112	)
Pro rata NOI from unconsolidated joint ventures		—		2,205			445			—		—		2,650
Pro rata net operating income	$	1,630		2,525			4,174			6,273		—		14,602

The following tables detail the Development and Multifamily Segment Pro rata NOI by project:

Development Segment:
	FRP		Bryant	BC FRP		.408	The		Total
Six months ended	Portfolio		Street	Realty, LLC		Jackson	Verge		Pro rata NOI
6/30/2024		$162	—	299		—	1,316		1,777
6/30/2023		$320	2,385	189		66	(435	)	2,525

Multifamily Segment:
Six months ended		Dock 79		The Maren		Riverside		.408 Jackson		Bryant Street		Total Pro rata NOI
6/30/2024	$1,878			1,847		439		638		3,051		7,853
6/30/2023	$1,873			1,856		445		—		—		4,174

Contact:
John D. Baker III
Chief Executive Officer
904/858-9100