FRP Holdings Inc. Reports 72% Decrease in Q2'25 Net Income Amid Transaction Fees, While Pro Rata NOI Rises 5%

Reuters
Aug 07, 2025
FRP Holdings Inc. Reports 72% Decrease in <a href="https://laohu8.com/S/QTWO">Q2</a>'25 Net Income Amid Transaction Fees, While Pro Rata NOI Rises 5%

FRP Holdings Inc. has released its Q2 2025 earnings results, highlighting a 72% decrease in net income to $0.6 million compared to $2.0 million in the same quarter last year. This decline is attributed mainly to professional fees related to a transaction under evaluation and lower net interest income, although these were partially offset by higher mining royalties and improved results in equity in loss of joint ventures. The company reported a 5% increase in pro rata net operating income (NOI), which rose to $9.7 million from $9.2 million in Q2 2024. The company's development highlights include entering a joint venture with Strategic Real Estate Partners to develop 377,892 square feet of industrial space in Lake County, FL, with options for future expansion. Additionally, shell construction on the Chelsea Road warehouse project was completed as of April 1, 2025. In its segment results, FRP Holdings noted a 1% increase in the multifamily segment's pro rata NOI, primarily due to improved occupancy rates at The Verge and Dock 79. Conversely, there was a 15% decrease in the industrial and commercial segment's NOI due to tenant evictions and lease expirations. The mining royalty lands segment saw a 21% increase in NOI. The company also amended its credit agreement with Wells Fargo, establishing a five-year, $50 million revolver at SOFR + 2.25%, effective July 21, 2025. For the year-to-date results, FRP Holdings reported a 32% decrease in net income to $2.3 million from $3.3 million, with a 7% increase in pro rata NOI to $19.1 million from $17.8 million in the previous year-to-date period. The overall pro rata NOI increased by 5% for the quarter and 7% year-to-date, reflecting stronger performance in the mining royalty segment and improved occupancy at key joint ventures.

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