FRP Holdings announced its fourth-quarter and full-year results for 2024, reporting a 26% increase in full-year pro rata Net Operating Income (NOI) to $38.1 million, up from $30.2 million in 2023. Net income for the full year was $6,385,000, or $0.34 per share, compared to $5,302,000, or $0.28 per share, in the prior year. Fourth-quarter net income was $1,679,000 ($0.09 per share), a decrease from $2,880,000 ($0.15 per share) in Q4 2023.
The company experienced meaningful NOI growth across all segments in 2024, including a 17% improvement in Industrial and Commercial NOI, a 23% increase in Mining Royalty Lands NOI, and a 34% increase in Multifamily NOI. However, management cautioned that this growth pace is not sustainable and projected overall NOI for 2025 to be flat to slightly negative. This outlook is attributed to anticipated vacancies at Cranberry and the new Chelsea industrial building, intense competition in the Washington D.C. multifamily market, and the non-recurrence of a $1.9 million one-time minimum royalty payment from 2024.
Despite the near-term NOI forecast, FRP Holdings plans significant capital deployment in 2025, with an estimated $71 million in equity capital investments. This investment will fund the commencement of construction on two industrial joint ventures in Florida and continued entitlement work for its Maryland industrial pipeline, aiming for shovel-ready sites in 2026. The company's strategic goal is to double the size of its industrial segment over the next five years by delivering three new industrial assets every two years.
FRP Holdings also intends to pursue two new multifamily projects outside the DC area in 2025, one in South Carolina and another in southwest Florida. These projects are expected to add 810 units and an estimated $6 million in pro rata NOI upon stabilization. The company's fourth-quarter Industrial and Commercial NOI decreased by 15% to $992,000 due to a $222,000 allowance for uncollectible revenue from a tenant eviction.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.