FRP Holdings announced its first-quarter 2025 financial results, reporting a 31.4% increase in net income attributable to the company, reaching $1,710,000, or $0.09 per share, compared to $1,301,000, or $0.07 per share, in the same period last year. Pro rata Net Operating Income (NOI) also saw a 10% year-over-year increase, totaling $9,364,000.
The Multifamily segment's pro rata NOI increased by 3.1% to $4.63 million, primarily driven by improved occupancy at The Verge, which recently stabilized. However, consolidated operating profit for wholly-owned multifamily joint ventures (Dock 79, The Maren) decreased by 16.5% due to higher operating expenses, including increased utilities and repairs. Management noted that future same-store growth in this segment is expected to be flat to slightly negative due to intense competition from new deliveries in the Washington D.C. market.
The Mining Royalty Lands segment's NOI surged by 19.0% to $3.28 million, attributed to higher revenues and a decrease in unrealized revenues from the straight-lining of temporarily higher minimum royalty payments. Conversely, the Industrial and Commercial segment experienced a 1.7% decrease in NOI to $1.14 million, primarily due to a tenant default and eviction at Cranberry Business Park, which resulted in vacancy and a write-off of uncollectible revenue.
FRP Holdings continues to advance its development pipeline, with the 258,000 square foot Chelsea warehouse now completed and moving to the Industrial segment for lease-up. The company secured construction/stabilization loans in March 2025 for two industrial joint ventures in Florida: a $16 million loan for the Lakeland project (200,000 sq ft, 90% FRP ownership) and a $31.9 million loan for the Broward County project (two-building, 182,000 sq ft, 80% FRP ownership). Vertical construction for both Florida projects is anticipated to begin in the second quarter of 2025.
The company maintains robust liquidity, with $142.93 million in cash and cash equivalents as of March 31, 2025. Its $35 million Wells Fargo revolving credit facility had no debt outstanding, with $34.45 million available for borrowing. Interest expense decreased due to increased interest capitalization on a larger pipeline of development projects.
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