FRP Holdings announced its third-quarter 2024 results, reporting a 39% year-over-year improvement in pro rata Net Operating Income (NOI) to $11,272,000. Net income for the quarter was $1,361,000, or $0.07 per share, compared to $1,259,000, or $0.07 per share, in the same period last year. This growth aligns with the company's 26.4% compound annual growth rate in pro rata NOI over the last three years.
The Mining and Royalty Lands segment was a primary driver of this increase, with NOI surging by 80% to $5,103,000. This substantial rise was largely due to a $2,040,000 increase in unrealized revenues, resulting from a one-time minimum royalty payment at one location that is straight-lined for GAAP revenue purposes. The Multifamily segment also contributed significantly, with pro rata NOI increasing by 23% to $4,722,000, primarily from the lease-up stabilization of Bryant Street, .408 Jackson, and The Verge.
In the Industrial and Commercial segment, NOI increased by 10% to $1,209,000. The company also provided updates on its development pipeline, noting that shell construction for the 258,000 square foot Chelsea Project in Harford County, MD, is nearing completion and is expected to be under budget. FRP Holdings anticipates starting construction in March 2025 on two industrial joint ventures in Florida, which will add 640,000 square feet of new Class A industrial product with an estimated total capital expenditure of $116 million.
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