JACKSONVILLE, Fla., May 08, 2024 (GLOBE NEWSWIRE) -- FRP Holdings, Inc. (NASDAQ-FRPH) —  First Quarter Highlights and Recent Developments 130% increase in Net Income ($1.3 million vs $565,000) 22% increase in pro-rata NOI ($8.53 million vs $6.99 million) 92% increase in the Multifamily segment's NOI 36% increase in Industrial and Commercial revenue and 47% increase in that segment's NOI Executive Summary and Analysis This quarter represented another meaningful step in the growth of this Company. The brisk pace at which we grew pro-rata NOI in 2023 continued into the first quarter of this year as we saw a 22% increase over the same period last year. The primary driver for this increase was our Multifamily Segment, due in part to the stabilization of .408 Jackson and Bryant Street. The addition of these two assets to this business segment, as well as the improved performance of Dock 79 and Maren drove the segment's 92% increase in pro-rata NOI over the same period last year. As we have communicated on a number of occasions recently, we have shifted our development focus primarily towards industrial projects. The returns are currently better than most multifamily projects, and are less capital intensive and less reliant on debt. Industrial development has always been our core competency and we are excited to flex that muscle in markets both familiar and new. The Company is in predevelopment work to get shovel ready on two projects in Maryland: the first is on 170 acres of land in Cecil County, MD that can accommodate 900,000 square feet of industrial development; and the second is on 54 acres of land in Aberdeen, MD capable of supporting up to 650,000 square feet of industrial product. We expect both projects to be ready to go vertical in the next eighteen months. We are also underway on the construction of a $30 million, 259,200 square-foot spec warehouse project at our Chelsea site in Aberdeen, MD, which we plan to deliver in the third quarter of 2024. Finally, this quarter, we entered into two separate joint venture agreements to develop industrial product in Florida. These projects represent our first industrial developments outside of the Mid-Atlantic. In entering Broward County and the I-4 corridor in Lakeland, we are expanding into two of the best growth markets in the United States. Our share of the industrial projects we have in development represents $191 million in capex, a portion which will be financed with debt. $27 million of that has been spent already, but we anticipate putting the remainder to use in the next two to three years if market conditions are right. We have underwritten these projects with a 6-7% NOI yield on cost. First Quarter Consolidated Results of Operations Net income for the first quarter of 2024 was $1,301,000 or $.07 per share versus $565,000 or $.03 per share in the same period last year. These earnings per share are adjusted to reflect the 2 for 1 stock split that was effective April 12, 2024. The first quarter of 2024 was impacted by the following items: Operating profit increased slightly as favorable results in Multifamily and Industrial and Commercial were offset by lower Mining royalties and higher Development Segment losses. Interest expense decreased $95,000 compared to the same quarter last year due to $127,000 more capitalized interest and increased costs related to our credit agreement. More interest was capitalized due to increased in-house and joint venture projects under development this quarter compared to last year. Interest income increased $401,000 due to an increase in interest earned on cash equivalents ($552,000), increased income from our lending ventures ($449,000), partially offset by decreased preferred interest ($600,000). Equity in loss of Joint Ventures decreased $606,000 primarily due to lease-up of The Verge. First 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 the other two 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 $5,414,000, an increase of $138,000 versus $5,276,000 in the same period last year. Total operating profit in this segment was $1,212,000, an increase of $408,000, or 51% versus $804,000 in the same period last year. For our three unconsolidated joint ventures pro-rata revenues were $3,713,000, an increase of $1,007,000 or 37% compared to $2,706,000 the same period last year. Pro-rata operating profit was $409,000, an increase of $199,000 or 95% versus $210,000 in the same period last year. For the purposes of these comparisons, results from the Development Segment for the three joint ventures stabilized at the beginning of 2024 are included in the same quarter last year. Apartment Building Units Pro-rataNOI Q1 2024 %Occupied3/31/24 Avg.OccupancyQ1 2024 Avg.OccupancyCY 2023 RenewalSuccessRateQ1 2024 Renewal%increaseQ1 2024                 Dock 79 Anacostia DC 305   $946,000   94.8%   94.8%   94.4%   71.1%   2.6%   Maren Anacostia DC 264   924,000   95.1%   93.8%   95.6%   50.0%   2.5%   Bryant Street DC 487   1,496,000   92.8%   93.0%   93.0%   56.5%   5.7%   Riverside Greenville 200   224,000   94.0%   93.7%   94.5%   65.7%   1.6%   .408 Jackson Greenville 227   293,000   94.7%   93.0%   59.9%   36.4%   3.5%                             Multifamily Segment 1,483   $3,883,000   94.1%   93.5%   87.7%       The combined consolidated and unconsolidated pro-rata net operating income this quarter for this segment was $3,883,000, up $1,861,000 or 92% compared to $2,022,000 in the same quarter last year. During the same quarter last year, Bryant Street and .408 Jackson were in the Development segment and contributed $869,000 of pro-rata NOI. Industrial and Commercial Segment: Total revenues in this segment were $1,453,000, up $383,000 or 36%, over the same period last year. Operating profit was $562,000, up $267,000 or 91% from $295,000 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 same period 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 quarter. Net operating income in this segment was $1,159,000, up $372,000 or 47% compared to the same quarter last year. Mining Royalty Lands Segment: Total revenues in this segment were $2,963,000, a decrease of $319,000 or 9.7% versus $3,282,000 in the same period last year. Royalty tons were down 14%. Total operating profit in this segment was $2,446,000, a decrease of $344,000 versus $2,790,000 in the same period last year. Net Operating Income this quarter for this segment was $2,760,000, down $388,000 or 12% compared to the same quarter last year. Among the reasons for this decrease is a shift in production off our land in Manassas and a decrease in production at our Ft. Myers quarry because of weather-related delays and slowdowns. There was also a large beach restoration project completed early last year from our Keuka location. This individual project accounted for over 82,000 tons in sales in the first quarter of last year and there was no need to repeat it this year. The primary reason for the decrease, however, is the deduction of royalties to resolve an $842,000 overpayment, as referenced in our 10-Q from the quarter ended June 30, 2023. Through a temporary amendment to our mining lease, the tenant deducted $289,000 in royalties otherwise due the Company this quarter. The outstanding balance on this overpayment is $335,000. Excluding that adjustment, royalties per ton increased 13%. Development Segment: With respect to ongoing Development Segment projects: We entered into two new joint venture agreements this quarter 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 160,000 square-foot warehouse redevelopment project in Broward County, FL. Last summer we broke ground on a new speculative warehouse project in Aberdeen, MD on Chelsea Road. Vertical construction is underway. This Class A, 259,200 square foot building is due to be complete in the 4th quarter of 2024. Lease-up is nearing completion at The Verge. At quarter end, the building was 94.2% leased and 91.6% occupied. Retail at this location is 45.2% leased.  This is our third mixed-use project in the Anacostia waterfront submarket in Washington, DC.   We are the principal capital source for a residential development venture in Harford County, MD known as Aberdeen Overlook. The project includes 110 acres and 344 residential building lots. We have committed $31.1 million to the project with $23.1 million currently drawn. A national homebuilder is under contract to purchase all 222 townhomes and 122 single family dwelling lots. As of quarter-end 23 lots had been sold and $5.8 million of preferred interest and principal has been returned to the company. Subsequent Event - Appointment of Officers Subsequent to the end of the quarter, on May 8, 2024 the Board of Directors appointed John D. Baker III as Chief Executive Officer, David deVilliers III as Chief Operating Officer, and Matt McNulty as Chief Financial Officer and Treasurer. Mr. Baker III had previously served as the CFO and Treasurer of the Company and Mr. deVilliers III had served as its Executive Vice President. Prior to the spinoff of Patriot Transportation Holding, Inc. from FRP Holdings, Inc., Mr. McNulty had previously worked for the combined companies as its Director of Southern Lands. Post spinoff, Mr. McNulty was the CFO and COO of Patriot Transportation. John D. Baker II will remain the Company's Chairman of the Board of Directors. David deVilliers, Jr. will remain the Company's President and Vice Chairman of the Board of Directors.    Conference Call The Company will host a conference call on Thursday, May 9, 2024 at 10:00 a.m. (EDT). Analysts, stockholders and other interested parties may access the teleconference live by calling 1-877-876-9177 (passcode 62742) within the United States. International callers may dial 1-785-424-1672 (passcode 62742). Audio replay will be available until May 23, 2024 by dialing 1-888-567-0057 within the United States. International callers may dial 1-402-220-6960. 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 Baltimore-Washington-Northern Virginia area; demand for apartments 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     MARCH 31,     2024   2023 Revenues:         Lease revenue   $ 7,170       6,832   Mining royalty and rents     2,963       3,282   Total revenues     10,133       10,114                     Cost of operations:                 Depreciation, depletion and amortization     2,535       2,780   Operating expenses     1,867       1,740   Property taxes     807       947   General and administrative     2,042       1,793   Total cost of operations     7,251       7,260                     Total operating profit     2,882       2,854                     Net investment income     2,783       2,382   Interest expense     (911 )     (1,006 ) Equity in loss of joint ventures     (3,019 )     (3,625 ) Gain on sale of real estate     —       10                     Income before income taxes     1,735       615   Provision for income taxes     400       209                     Net income     1,335       406   Income (loss) attributable to noncontrolling interest     34       (159 ) Net income attributable to the Company   $ 1,301       565                     Earnings per common share (1):                 Net income attributable to the Company-                 Basic   $ 0.07       0.03   Diluted   $ 0.07       0.03                     Number of shares (in thousands) used in computing (1):                 -basic earnings per common share     18,859       18,832   -diluted earnings per common share     18,944       18,912   (1) adjusted for the 2 for 1 stock split that occurred in April 2024           FRP HOLDINGS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Unaudited) (In thousands, except share data)               March 31   December 31 Assets:   2024   2023 Real estate investments at cost:                 Land   $ 141,602       141,602   Buildings and improvements     282,780       282,631   Projects under construction     16,730       10,845   Total investments in properties     441,112       435,078   Less accumulated depreciation and depletion     70,241       67,758   Net investments in properties     370,871       367,320                     Real estate held for investment, at cost     10,832       10,662   Investments in joint ventures     164,271       166,066   Net real estate investments     545,974       544,048                     Cash and cash equivalents     152,484       157,555   Cash held in escrow     655       860   Accounts receivable, net     1,397       1,046   Federal and state income taxes receivable     —       337   Unrealized rents     1,770       1,640   Deferred costs     2,798       3,091   Other assets     595       589   Total assets   $ 705,673       709,166                     Liabilities:                 Secured notes payable   $ 178,742       178,705   Accounts payable and accrued liabilities     3,829       8,333   Other liabilities     1,487       1,487   Federal and state income taxes payable     60       —   Deferred revenue     920       925   Deferred income taxes     69,456       69,456   Deferred compensation     1,423       1,409   Tenant security deposits     885       875   Total liabilities     256,802       261,190                     Commitments and contingencies