FRP HOLDINGS, INC.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
FRPH$18.63+1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-14.
0000844059-26-000069
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0000844059-26-000086
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 115 previous paragraphs and 141 current paragraphs.
72 unchanged; 36 reworded; 26 added; 5 removed; 2 previous and 7 current paragraphs rearranged.
Tables are not compared: 19 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (26)
Current report
The following discussion and analysis addresses material changes in the financial condition and results of operations of the Company for the periods presented. This discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q (“Form 10-Q”), as well as the audited consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on April 15, 2026 (the “2025 Annual Report”). Unless the context otherwise requires, “the Company,” “FRP,” “we,” “us,” “our,” and “ours” refer to FRP Holdings, Inc. and its subsidiaries.
Current report
Equity Method Investments.
Current report
Second Quarter Financial Highlights
Current report
•9% decrease in the Multifamily segment’s pro rata NOI primarily due to lower occupancy, higher rent concessions, bad debts, and operating expenses at our DC assets.
Current report
Second quarter results continued to reflect the occupancy pressure we flagged exiting last year across our DC multifamily assets and the Maryland industrial portfolio, alongside higher G&A tied to the Altman integration. Mining royalties again posted double-digit NOI growth, and our development pipeline continues to advance, with the Hamilton and Parsippany, New Jersey merchant build projects reaching substantial completion this quarter. Same-store leasing is the single most important lever we have to improve the company's performance — it has the most immediate impact and requires very little capital relative to development. To say it is management’s top priority understates the extent to which our day-to-day revolves around it. The activity and engagement with potential tenants remains high, especially compared to last year. While that did not translate into signed leases this quarter, we believe that if we focus on what we can control and execute, the results we are looking for will come. Our priorities remain unchanged: lease the Maryland industrial portfolio, stabilize occupancy across the DC multifamily assets, and deliver our active development projects on schedule.
Current report
•Operating profit decreased $198,000 or 12%. The consolidated portion of the Multifamily segment (Dock/Maren) decreased $274,000 due to lower occupancy, rent concessions, and higher operating costs. The Industrial and Commercial segment operating profit declined $446,000 due mainly to lease expirations. Mining Royalty Land's segment operating profit increased $339,000 due to higher royalty tons and revenues less related depletion. Development segment operating profit increased $985,000 due to joint venture management fee revenues ($195,000), and the prior year including Altman acquisition expenses ($713,000), partially offset by less capitalized real estate taxes ($65,000). General & administrative costs increased $802,000 due to higher personnel costs ($901,000, primarily Altman acquisition related), increased legal fees related to replacing our equity incentive plan, the acquisition, and other one-time events ($111,000), higher acquisition-related IT and other professional fees ($94,000), partially offset by increased labor capitalization ($328,000).
Current report
•Interest expense decreased $123,000 compared to the same period last year as we capitalized $243,000 more interest partially offset by the interest expense on our Wells Fargo Credit Agreement. More interest was capitalized due to increased in-house and joint venture projects under development this quarter compared to last year.
Current report
•Equity in loss of joint ventures was an unfavorable $40,000 due to losses at recently completed industrial properties ($119,000), mostly offset by improved results at other joint venture properties.
Current report
Six Month Highlights
Current report
•Net loss attributable to the Company of ($0.9) million vs $2.3 million of net income primarily due to $2.3 million increase in G&A, $2.0 million lower interest income, and lower occupancy in our Multifamily and Industrial segments partially offset by strong Mining Royalty Lands performance
Current report
•4% decrease in pro rata NOI ($18.2 million vs $19.1 million) driven by lower occupancy in the Multifamily and Industrial and Commercial segments, partially offset by strong Mining Royalty Lands performance.
Current report
•14% increase in the Mining Royalty Lands' Segment's NOI driven by a 7.3% rise in royalty tons and a 5.9% increase in royalty revenue per ton.
Current report
Consolidated Results
Current report
Net loss attributable to the Company for the first six months of 2026 was $946,000 or $(.05) per share versus income of $2,288,000 or $.12 per share in the same period last year. Pro rata NOI for the first six months of 2026 was $18,232,000 versus $19,052,000 in the same period last year. The first six months of 2026 were impacted by the following items:
Current report
•Net investment income decreased $1,984,000 from reduced earnings on our lower cash equivalents ($1,269,000) and reduced income from our lending ventures ($715,000) on smaller loan balances outstanding and fewer residential lots sold.
Current report
•Interest expense decreased $110,000 compared to the same period last year as we capitalized $276,000 more interest partially offset by the interest expense on our Wells Fargo Credit Agreement. More interest was capitalized due to increased in-house and joint venture projects under development this quarter compared to last year.
Current report
•Equity in loss of Joint Ventures was an unfavorable $624,000 due to higher losses at Bryant Street ($429,000) and Verge ($171,000) both due to lower revenues and higher expenses, along with losses at recently completed industrial properties ($159,000) partially offset by improved results at our other unconsolidated joint ventures.
Current report
The combined consolidated and unconsolidated pro rata net operating income this quarter for this segment was $8,400,000, down $967,000 compared to $9,367,000 in the same period last year. The NOI decrease was primarily due to lower occupancy and higher cost at Bryant Street ($323,000), The Verge ($260,000), Dock ($243,000), and Maren ($150,000).
Current report
Total revenues for our two consolidated joint ventures (Dock 79/Maren) were $10,634,000, a decrease of $357,000 versus $10,991,000 in the same period last year due to higher vacancy and rent concessions. Total operating profit before G&A for the consolidated joint ventures was $2,035,000, a decrease of $631,000, or 24% versus $2,666,000 in the same period last year primarily due to lower revenues along with higher operating costs and recent capital improvements depreciation.
Current report
Multifamily Segment (Pro rata unconsolidated)
Current report
For our four unconsolidated joint ventures, pro rata revenues were $10,422,000, a decrease of $363,000 or 3% compared to $10,785,000 in the same period last year. The decrease was primarily due to lower occupancy and higher bad debts at Bryant Street and The Verge. Pro rata operating profit before G&A was $750,000, a decrease of $572,000, or 43% versus $1,322,000 in the same period last year. The decrease was due to lower occupancy and higher bad debts at Bryant Sheet and The Verge and higher operating costs at Bryant Street.
Current report
Industrial and Commercial Segment
Current report
Mining Royalty Lands Segment Results
Current report
Total revenues in this segment were $7,783,000, an increase of $940,000 or 14% versus $6,843,000 in the same period last year. Royalty tons were up 7.3% over the same period last year. Royalty revenue per ton increased 5.9% over the same period last year. Total operating profit before G&A in this segment was $7,076,000, an increase of $771,000 versus $6,305,000 in the same period last year. Net operating income in this segment was $7,900,000, up $951,000 or 14% compared to the same period last year.
Current report
Development Segment Results
Current report
Non-GAAP Financial Measures.
Removed paragraphs (5)
Previous report
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying unaudited consolidated financial statements and related notes in Item 1 and with the audited consolidated financial statements and the related notes included in our annual report on Form 10-K. The statements in this discussion regarding industry outlook, our expectations regarding our future performance, liquidity and capital resources and other non-historical statements in this discussion are forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including the risks and uncertainties described in “Forward-Looking Statements” below and “Risk Factors” on page 5 of our annual report on Form 10-K. Our actual results may differ materially from those contained in or implied by any forward-looking statements. We assume no obligation to revise or publicly release any revision to any forward-looking statements contained in this quarterly report on Form 10-Q, unless required by law.
Previous report
In late 2023, the Central Florida Expressway Authority (CFX) used its eminent domain power to take title to approximately 27.6 acres from the southern boundary of a parcel of the Company’s approximately 1,196-acre Lake Louisa property that is leased to Cemex. As required by Florida law, CFX deposited $2,582,000 into the registry of the Court, representing CFX’s good faith estimate of the value of the condemned property. As the Company’s tenant, Cemex is claiming a portion of the funds ultimately paid by CFX as business damages. The Company is litigating with CFX over the value of the condemned property. The condemnation proceeding is not expected to impact the lease with Cemex.
Previous report
First Quarter Financial Highlights
Previous report
The headwinds we experienced last year continued to affect results into this year’s first quarter. Oversupply in DC multifamily continues to hamper rent growth and occupancy levels while expenses have risen unabated. We still have significant vacancies in our industrial assets in Maryland, which combined with the increase in general and administrative expense associated with the Altman acquisition have served to put downward pressure on earnings and NOI compared to the same period last year, mitigated to some extent by the increases in mining royalties. None of these factors are new developments, and our focus on leasing remains the same. What is new is the activity in the leasing space this year relative to 2025, which management finds particularly heartening. Same store occupancy levels and rent growth are perhaps our most important driver for earnings, FFO, and NOI growth, because they require very little in capex and the impact is nearly immediate. Looking forward to the rest of 2026, our focus in the near-term is capitalizing on the increase in leasing activity to bolster our same store assets and return occupancy back to historic norms; control and minimize expenses in our multifamily assets where possible to limit the impact of a soft market; and finally execute on the industrial assets we have under development to set the company up for future growth.
Previous report
•Equity in loss of joint ventures was an unfavorable $584,000 due to higher losses at Bryant Street ($437,000) and Verge ($128,000) both due to lower revenues and higher expenses. Bryant Street expenses included $125,000 for exploratory refinancing costs and $40,000 for the annual tax returns.
Reworded paragraphs (36)
Previous wording
The following discussion includes non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission to supplement the financial results as reported in accordance with GAAP. The non-GAAP financial measures discussed are operating profit before G&A and pro rata net operating income (NOI), adjusted pro rata net operating income, and adjusted net income. The Company uses these metrics to analyze its continuing operations and to monitor, assess, and identify meaningful trends in its operating and financial performance. These measures are not, and should not be viewed as, a substitute for GAAP financial measures. Refer to “Non-GAAP Financial Measure” below in this quarterly report for a more detailed discussion, including reconciliations of this non-GAAP financial measure to its most directly comparable GAAP financial measure.
Current wording
The following discussion includes non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission to supplement the financial results as reported in accordance with GAAP. The non-GAAP financial measures discussed are operating profit before G&A and pro rata net operating income (NOI). The Company uses these metrics to analyze its continuing operations and to monitor, assess, and identify meaningful trends in its operating and financial performance. These measures are not, and should not be viewed as, a substitute for GAAP financial measures. Refer to “Non-GAAP Financial Measure” below in this quarterly report for a more detailed discussion, including reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measure.
Previous wording
2)155 E. 21 st Street in Duval County, FL was an prior office building property that remained under lease through March 31, 2026. The lease expired April 1, 2026 and this vacant parcel has minimal value.
Current wording
2)155 E. 21 st Street in Duval County, FL was formerly a building property (now a vacant parcel) that remained under lease through March 31, 2026. The lease expired April 1, 2026 and this parcel has minimal value.
Previous wording
3)Cranberry Run Business Park in Harford County, MD consists of five industrial buildings totaling 267,737 square feet which are 43.4% leased and occupied. The property is subject to commercial leases with various tenants.
Current wording
3)Cranberry Run Business Park in Harford County, MD consists of five industrial buildings totaling 267,737 square feet which are 49.0% leased and 43.4% occupied. The property is subject to commercial leases with various tenants.
Previous wording
Our Mining Royalty Lands segment owns several properties comprising approximately 16,640 acres currently under lease for mining rents or royalties (excluding the 4,280 acres owned by our Brooksville joint venture with Vulcan Materials). Other than one location in Virginia, all of these properties are located in Florida and Georgia. The Company leases land under long-term leases that grant the lessee the right to mine and sell sand and stone deposits from our property in exchange for royalty payments. A typical lease has an option to extend the lease for additional terms. The typical lease in this segment requires the tenant to pay us a royalty based on the number of tons of mined materials sold from our property during a given fiscal year multiplied by a percentage of the average annual sales price per ton sold. As a result of this royalty payment structure, we do not bear the cost risks associated with the mining operations, however, we are subject to the cyclical nature of the construction markets in these states as both volumes and prices tend to fluctuate through those cycles. In certain locations, typically where the sand and stone deposits on our property have been depleted but the tenant still has a need for the leased land, we collect a minimum annual rental amount. In the year ended December 31, 2025, aggregate royalty tons sold were 9.04 million.
Current wording
Our Mining Royalty Lands segment owns several properties comprising approximately 16,640 acres currently under lease for mining rents or royalties (excluding the 4,280 acres owned by our Brooksville joint venture with Vulcan Materials). Other than one location in Virginia, all of these properties are located in Florida and Georgia. The Company leases land under long-term leases that grant the lessee the right to mine and sell sand and stone deposits from our property in exchange for royalty payments. A typical lease has an option to extend the lease for additional terms. The typical lease in this segment requires the tenant to pay us a royalty based on the number of tons of mined materials sold from our property during a given fiscal year multiplied by a percentage of the average annual sales price per ton sold. As a result of this royalty payment structure, we do not bear the cost risks associated with the mining operations, however, we are subject to the cyclical nature of the construction markets in these states as both volumes and prices tend to fluctuate through those cycles. In certain locations, typically where the sand and stone deposits on our property have been depleted but the tenant still has a need for the leased land, we collect a minimum annual rental amount. In the year ended December 31, 2025 and six months ending June 30, 2026, royalty tons sold were 9.04 million and 4.9 million, respectively.
Previous wording
The major expenses in this segment are comprised of collection and accounting for royalties, management’s oversight of the mining leases, land entitlement for post-mining uses and property taxes at our non-leased locations and at our Grandin location which, unlike our other leased mining locations, are not entirely paid by the tenant. As such, our costs in this business are very low as a percentage of revenue, are relatively stable and are not affected by increases in production at our locations. Our current mining tenants are Vulcan Materials, Martin Marietta, Cemex, Summit Materials and The Concrete Company.
Current wording
The major expenses in this segment are comprised of collection and accounting for royalties, management’s oversight of the mining leases, land entitlement for post-mining uses and property taxes at our non-leased locations and at our Grandin location which, unlike our other leased mining locations, are not entirely paid by the tenant. As such, our costs in this business are very low as a percentage of revenue, are relatively stable and are not affected by increases in production at our locations. Our current mining tenants are Vulcan Materials, Martin Marietta, Cemex, Quikrete and The Concrete Company.
Previous wording
1)Riverfront on the Anacostia: The Riverfront on the Anacostia property is a 5.8-acre parcel of real estate in Washington, D.C. that fronts the Anacostia River and is adjacent to the Washington Nationals Baseball Park. A revised Planned Unit Development (PUD) plan was approved in 2012 and permitted the Company to develop, in four phases, a four-building, mixed-use project, containing approximately 1,161,050 square feet. The approved development includes numerous publicly accessible open spaces and a waterfront esplanade along the Anacostia River. Phase 1 and 2 (Dock 79 & The Maren) are in the multifamily segment. The final two phases, Phase 3 and Phase 4 obtained second-stage PUD approval on October 10, 2025, permitting approximately 602,553 square feet of apartments (~590 units) with first floor retail. The PUD requires Phase 4 construction to commence within 3 years and commencing Phase 3 construction within 3 years after obtaining the Phase 4 certificate of occupancy. The net book value of this property is $9.3 million.
Current wording
1)Riverfront on the Anacostia: The Riverfront on the Anacostia property is a 5.8-acre parcel of real estate in Washington, D.C. that fronts the Anacostia River and is adjacent to the Washington Nationals Baseball Park. A revised Planned Unit Development (PUD) plan was approved in 2012 and permitted the Company to develop, in four phases, a four-building, mixed-use project, containing approximately 1,161,050 square feet. The approved development includes numerous publicly accessible open spaces and a waterfront esplanade along the Anacostia River. Phase I and II (Dock 79 & The Maren) are in the multifamily segment. The final two phases, Phase III and Phase IV obtained second-stage PUD approval on October 10, 2025, permitting approximately 602,553 square feet of apartments (~590 units) with first floor retail. The PUD requires Phase IV construction to commence within 3 years and commencing Phase III construction within 3 years after obtaining the Phase IV certificate of occupancy. Phase IV under entitlement consisting of 281 units and 6,000 sq ft of ground-floor retail. The net book value of this property is $9.9 million.
Previous wording
8)Woven: In August 2023, the Company entered into an agreement with Woodfield Development for the acquisition and development our third multifamily project in Greenville, SC. On May 30, 2025, we secured construction financing for the $87.8M project with 214 units and 13,500 square feet of ground floor retail that is eligible to receive South Carolina Textile Rehabilitation Credits upon substantial completion and received Special Source Credits equal to 50% of the real estate taxes for a period of 20 years. The project broke ground during the 3rd quarter and substantial completion of the project is expected in late 2027.
Current wording
8)Woven: In August 2023, the Company entered into an agreement with Woodfield Development for the acquisition and development our third multifamily project in Greenville, SC. On May 30, 2025, we secured construction financing for the $87.8M project with 214 units and 13,500 square feet of ground floor retail that is eligible to receive South Carolina Textile Rehabilitation Credits upon substantial completion and received Special Source Credits equal to 50% of the real estate taxes for a period of 20 years. The project broke ground during the 3rd quarter of 2025 and substantial completion of the project is expected in late 2027.
Previous wording
9)We entered into two new joint venture agreements in early 2024 with Altman Logistics. The first joint venture is a 201,420 square-foot warehouse development project in Lakeland, FL, and the second joint venture is a two building 183,215 square-foot warehouse redevelopment project in Broward County, FL. We closed on both construction loans in March, 2025 and construction commenced in the second quarter of 2025. Substantial completion of both projects is expected in the second quarter of 2026. On
Current wording
9)We entered into two new joint venture agreements in early 2024 with Altman Logistics. The first joint venture is a 201,420 square-foot warehouse development project in Lakeland, FL, and the second joint venture is a two building 183,215 square-foot warehouse redevelopment project in Broward County, FL. We closed on both construction loans in March, 2025 and construction commenced in the second quarter of 2025. Substantial completion of both projects is expected in the third quarter of 2026. On October 21, 2025 we purchased the interests of Altman Logistics in these two joint ventures and now own 100% of both of these projects.
Previous wording
•Net loss of ($0.7) million vs $1.7 million net income primarily due to $1.5 million increase in G&A, $0.9 million lower interest income, and lower occupancy in our Multifamily and Industrial segments.
Current wording
•Net loss attributable to the Company of ($0.3) million vs $0.6 million net income primarily due to $0.8 million increase in G&A, $1.1 million lower interest income, and lower occupancy in our Multifamily and Industrial segments.
Previous wording
•5% decrease in pro rata NOI ($8.9 million vs $9.4 million) driven by lower occupancy and elevated costs in the Multifamily segment, partially offset by strong Mining Royalty Lands performance.
Current wording
•3% decrease in pro rata NOI ($9.4 million vs $9.7 million) driven by lower occupancy in the Multifamily and Industrial and Commercial segments, partially offset by strong Mining Royalty Lands performance.
Previous wording
•33% decrease in Industrial and Commercial segment NOI primarily due to vacancies from an eviction of one tenant and lease expirations.
Current wording
•39% decrease in Industrial and Commercial segment NOI primarily due to vacancies from an eviction of one tenant and lease expirations.
Previous wording
•15% increase in Mining Royalty Lands segment NOI driven by a 7.9% rise in royalties tons and a 6.5% increase in royalty revenue per ton.
Current wording
•12% increase in Mining Royalty Lands segment NOI driven by a 6.8% rise in royalty tons and a 5.4% increase in royalty revenue per ton.
Previous wording
Net loss for the first quarter of 2026 was $(687,000) or $(.04) per share versus income of $1,710,000 or $.09 per share in the same period last year. Pro rata NOI for thefirst quarter of 2026 was $8,861,000 versus$9,364,000 in the same period last year. The first quarter of 2026 was impacted by the following items:
Current wording
Net loss attributable to the Company for the second quarter of 2026 was $(259,000) or $(.01) per share versus income of $578,000 or $.03 per share in the same period last year. Pro rata NOI for thesecond quarter of 2026 was $9,371,000 versus$9,688,000 in the same period last year. The second quarter of 2026 was impacted by the following items:
Previous wording
•Net investment income decreased $873,000 because of reduced earnings on cash equivalents ($650,000) due to lower balances and interest rates and lower income from our lending ventures ($223,000) on smaller loan balances outstanding.
Current wording
•Net investment income decreased $1,111,000 because of reduced earnings on cash equivalents ($619,000) due to lower balances and interest rates and lower income from our lending ventures ($492,000) on smaller loan balances outstanding and fewer residential lots sold.
Previous wording
•Pro rata NOI decreased $503,000 driven by declines in the Multifamily segment NOI ($546,000), Industrial segment ($381,000), and Development segment ($74,000), partially offset by higher Mining Royalty segment NOI ($498,000).
Current wording
•Pro rata NOI decreased $317,000 driven by declines in the Multifamily segment ($421,000), and Industrial segment ($394,000), partially offset by increases in Mining Royalty segment ($453,000) and Development segment ($45,000).
Previous wording
The combined consolidated and unconsolidated pro rata net operating income this quarter for this segment was $4,084,000, down $546,000 or 12% compared to $4,630,000 in the same quarter last year. Most of this decrease was due to lower occupancy and higher costs at our DC assets.
Current wording
The combined consolidated and unconsolidated pro rata net operating income this quarter for this segment was $4,316,000, down $421,000 or 9% compared to $4,737,000 in the same quarter last year. Most of this decrease was due to lower occupancy, higher rent concessions, bad debts, and operating expenses at our DC assets.
Previous wording
Total revenues for our two consolidated joint ventures were $5,195,000, a decrease of $229,000 versus $5,424,000 in the same period last year primarily due to lower occupancy and concessions. Total operating profit before G&A for the consolidated joint ventures was $852,000, a decrease of $357,000, or 30% versus $1,209,000 in the same period last year primarily due to lower revenues along with higher operating costs.
Current wording
Total revenues for our two consolidated joint ventures (Dock 79/Maren) were $5,439,000, a decrease of $128,000 versus $5,567,000 in the same period last year primarily due to lower occupancy and higher rent concessions. Total operating profit before G&A for the consolidated joint ventures was $1,183,000, a decrease of $274,000, or 19% versus $1,457,000 in the same period last year primarily due to lower revenues along with higher operating costs and recent capital improvements depreciation.
Previous wording
For our four unconsolidated joint ventures, pro rata revenues were $5,181,000, a decrease of $168,000 or 3% compared to $5,349,000 in the same period last year. Pro rata operating profit before G&A was $313,000, a decrease of $438,000 or 58% versus $751,000 in the same period last year. The decrease was primarily due to lower occupancy at The Verge and higher costs at Bryant Street.
Current wording
For our four unconsolidated joint ventures, pro rata revenues were $5,241,000, a decrease of $195,000 or 4% compared to $5,436,000 in the same period last year. Pro rata operating profit before G&A was $437,000, a decrease of $134,000 or 23% versus $571,000 in the same period last year. The decrease was primarily due to lower occupancy, higher bad debts, and increased costs at Bryant Street and The Verge.
Previous wording
Shell construction on our 258,279 square foot spec warehouse project in Aberdeen, MD on Chelsea Road was completed effective April 1, 2025 and is in the lease-up phase. We have ten buildings in service at four different locations totaling 773,356 square feet of industrial and 33,708 square feet of office of which 59.3% was leased and occupied at March 31, 2026. Excluding Chelsea these assets were 69.9% leased and occupied during the quarter compared to 85.2% leased and occupied during the same quarter last year primarily due to an eviction and lease expirations. Total revenues in this segment were $1,200,000, down $147,000 or 11%, over the same period last year. Operating profit before G&A was $181,000, down $462,000 or 72% over the same quarter last year due to $218,000 of depreciation and $80,000 of operating costs at Chelsea along with the lower occupancy. Net operating income in this segment was $758,000, down $381,000 or 33% compared to the same quarter last year.
Current wording
We have ten buildings in service at four different locations totaling 773,356 square feet of industrial (includes 258,279 square foot Chelsea building completed April 1, 2025) and 33,708 square feet of office of which 49.4% was leased and 47.5% was occupied at June 30, 2026. Excluding Chelsea (100% vacant), these assets were 69.9% leased and occupied during the quarter compared to 77.9% leased and occupied during the same quarter last year primarily due to lease expirations. Total revenues in this segment were $983,000, down $391,000 or 28%, over the same period last year. Operating loss before G&A was $3,000, down $446,000 or 101% over the profit in the same quarter last year due to the lower occupancy and higher operating costs primarily related to a real estate tax appeal and leasing activity. Net operating income in this segment was $616,000, down $394,000 or 39% compared to the same quarter last year.
Previous wording
Total revenues in this segment were $3,717,000, an increase of $483,000 or 15% versus $3,234,000 in the same period last year. Royalty tons were up 7.9%. Royalty revenue per ton increased 6.5% over the same period last year. Total operating profit before G&A in this segment was $3,397,000, an increase of $432,000 versus $2,965,000 in the same period last year. Net operating income was $3,782,000, up $498,000 or 15% compared to the same quarter last year.
Current wording
Total revenues in this segment were $4,066,000, an increase of $457,000 or 13% versus $3,609,000 in the same period last year. Royalty tons were up 6.8% over the same period last year. Royalty revenue per ton increased 5.4% over the same period last year. Total operating profit before G&A in this segment was $3,679,000, an increase of $339,000 versus $3,340,000 in the same period last year. Net operating income was $4,118,000, up $453,000 or 12% compared to the same quarter last year.
Previous wording
Joint venture management fee revenues primarily represent fees earned from the Company's three minority ownership warehouse projects acquired October 21, 2025. Property taxes increased because Phase III at
Current wording
Joint venture management fee revenues primarily represent fees earned from the Company's three minority ownership warehouse projects acquired October 21, 2025. The prior year operating expenses included $713,000 of Altman acquisition expenses. Property taxes increased because Phase III at Riverfront received second-stage PUD approval on October 10, 2025 and is not currently in development; accordingly, carrying costs are now being expensed rather than capitalized.
Previous wording
▪We are the principal capital source to develop 344 residential lots on 110 acres in Harford County, MD. We have funded $28.1 million of our $31.1 million total commitment. A national homebuilder is under contract to purchase all 222 townhome lots and 122 single family lots. At quarter-end, 228 lots have been sold and $30.0 million has been returned to the company of which $7.1 million was booked as profit to the Company.
Current wording
▪We are the principal capital source to develop 344 residential lots on 110 acres in Harford County, MD. We have funded $28.7 million of our $31.1 million total commitment. A national homebuilder is under contract to purchase all 222 townhome lots and 122 single family lots. Cumulatively as of June 30, 2026, 248 lots have been sold for $32.5 million of which $7.4 million was booked as profit to the Company.
Previous wording
▪We entered into two new joint venture agreements in early 2024 with Altman Logistics. The first joint venture is a 201,420 square-foot warehouse development project in Lakeland, FL, and the second joint venture is a two building 183,215 square-foot warehouse redevelopment project in Broward County, FL. We closed on both construction loans in March, 2025 and construction commenced in the second quarter of 2025. Substantial completion of both projects is expected in the second quarter of 2026. On October 21, 2025 we purchased the interests of Altman Logistics.
Current wording
▪We entered into two new joint venture agreements in early 2024 with Altman Logistics. The first joint venture is a 201,420 square-foot warehouse development project in Lakeland, FL, and the second joint venture is a two building 183,215 square-foot warehouse redevelopment project in Broward County, FL. We closed on both construction loans in March, 2025 and construction commenced in the second quarter of 2025. Substantial completion of both projects is expected in the third quarter of 2026. On October 21, 2025 we purchased the interests of Altman Logistics and now 100% of these two assets.
Previous wording
▪On May 30, 2025, we secured construction financing for our multifamily joint venture with Woodfield Development, known as Woven. This is our third multifamily project in Greenville, SC. This is an $87.8M project with 214 units and 13,500 square feet of ground floor retail that is eligible to receive South Carolina Textile Rehabilitation Credits upon substantial completion and received Special Source Credits equal to 50% of the real estate taxes for a period of 20 years. The project broke ground during the 3rd quarter and substantial completion of the project is expected in late 2027.
Current wording
▪On May 30, 2025, we secured construction financing for our multifamily joint venture with Woodfield Development, known as Woven. This is our third multifamily project in Greenville, SC. This is an $87.8 million project with 214 units and 13,500 square feet of ground floor retail that is eligible to receive South Carolina Textile Rehabilitation Credits upon substantial completion and received Special Source Credits equal to 50% of the real estate taxes for a period of 20 years. The project broke ground during the 3rd quarter of 2025 and substantial completion of the project is expected in late 2027.
Previous wording
▪On July 23,2025, we entered into a joint venture agreement with Strategic Real Estate Partners (“SREP”), a private real estate development firm which specializes in industrial real estate development, to develop 377,892 square feet in two warehouses in Lake County, Florida near Orlando, with options for investment in additional industrial warehouses on adjacent properties in the future. Substantial completion of the first warehouse is expected in the first quarter of 2027.
Current wording
▪On July 23, 2025, we entered into a joint venture agreement with Strategic Real Estate Partners (“SREP”), a private real estate development firm which specializes in industrial real estate development, to develop 377,892 square feet in two warehouses in Lake County, Florida near Orlando, with options for investment in additional industrial warehouses on adjacent properties in the future. Substantial completion of the first warehouse is expected in the first quarter of 2027.
Previous wording
•12% decrease in the Multifamily segment’s pro rata NOI primarily due to lower occupancy and higher costs at our DC assets.
Current wording
•10% decrease in the Multifamily segment’s pro rata NOI primarily due to lower occupancy, higher rent concessions and bad debts, and higher costs at our DC assets.
Previous wording
•Operating profit decreased $1,813,000 primarily due to $1,508,000 higher General & administrative costs. G&A costs included $311,000 higher audit fees, $173,000 of valuation and accounting consulting fees, $110,000 of IT consulting, and higher wages, all primarily related to the Altman acquisition. The consolidated portion of the Multifamily segment (Dock/Maren) decreased $357,000 due to uncollectable revenue and higher operating expenses and property taxes. The Industrial and Commercial segment operating profit declined $462,000 with $298,000 due to $218,000 of depreciation and $80,000 of carrying costs on our Chelsea spec warehouse placed in service in April 2025 along with non-renewing leases. Mining Royalty Land's segment operating profit increased $432,000 due to higher royalty tons and revenues less related depletion. Development segment operating profit increased $82,000 due to joint venture management fee revenues partially offset by less capitalized real estate taxes.
Current wording
•Operating profit decreased $2,011,000 or 51%. The consolidated portion of the Multifamily segment (Dock/Maren) decreased $631,000 due to lower occupancy, rent concessions, and higher operating costs. Industrial and commercial segment operating profit declined $908,000 with $298,000 due to $218,000 of depreciation and $80,000 of first quarter carrying costs on our Chelsea spec warehouse placed in service in April 2025 along with non-renewing leases. Mining Royalty Land's segment operating profit increased $771,000 due to higher royalty tons and revenues less related depletion. Development segment operating profit increased $1,067,000 due to joint venture management fee revenues ($358,000), and the prior year including Altman acquisition expenses ($713,000), partially offset by less capitalized real estate taxes ($130,000). General & administrative costs increased $2,310,000 due to $1,892,000 higher personnel costs (primarily Altman acquisition related), $346,000 higher audit fees, $173,000 of acquisition valuation and accounting consulting fees, $175,000 increased legal fees related to replacement of our equity incentive plan, the acquisition, and other one-time events, $253,000 higher acquisition-related IT and other professional fees, $115,000 higher marketing costs, partially offset by $602,000 increased labor capitalization.
Previous wording
Liquidity and Capital Resources. The growth of the Company’s businesses requires significant cash needs to acquire and develop land or operating buildings and to construct new buildings and tenant improvements. As of March 31, 2026, we had $107,859,000 of cash and cash equivalents. As of March 31, 2026 we had $6.5 million borrowed under our $50 million Wells Fargo revolver to fund the Woven bridge loan, $410,000 outstanding under letters of credit and $43,090,000 available to borrow under the revolver.
Current wording
Liquidity and Capital Resources. The growth of the Company’s businesses requires significant cash to acquire and develop land or operating buildings and to construct new buildings and tenant improvements. As of June 30, 2026, we had $100,975,000 of cash and cash equivalents. As of June 30, 2026 we had $11.0 million borrowed under our $50 million Credit Agreement with Wells Fargo to fund the Woven bridge loan, $410,000 outstanding under letters of credit and $38,590,000 available to borrow under the Credit Agreement. We believe that our cash on hand and expected future operating cash inflows as well as availability under our Credit Agreement will be sufficient to fund operations, debt service requirements and necessary capital expenditures for at least the next 12 months.
Previous wording
Operating Activities -Net cash provided by operating activities for the three months ended March 31, 2026 was $9,670,000 versus $4,503,000 in the same period last year. The increase was primarily due to higher accounts payable and accrued liabilities due to the timing of construction in progress payments partially offset by lower net income.
Current wording
Operating Activities -Net cash provided by operating activities for the six months ended June 30, 2026 was $10,794,000 versus $12,209,000 in the same period last year. The decrease was primarily due to lower net income.
Previous wording
Investing Activities - Net cash used in investing activities for the three months ended March 31, 2026 was $17,931,000 versus $465,000 provided in the same period last year. The $18.4 million increase was due to a $10.3 million increase in investment in properties (primarily Davie, Camp Lake, and Lakeland) combined with a $7.2 million increase in investments in joint ventures (primarily Estero, Aberdeen, and Woven) and with a $0.9 million decrease in return of capital from joint ventures.
Current wording
Investing Activities - Net cash used in investing activities for the six months ended June 30, 2026 was $36,604,000 versus $2,207,000 provided by investing activities for the same period last year. The $38.8 million increase was due to a $18.4 million increase in investment in properties (primarily Davie, Camp Lake, and Lakeland) combined with a $10.2 million increase in investments in joint ventures (primarily Estero, Aberdeen, and Woven) and with a $10.3 million decrease in return of capital from joint ventures primarily due to the prior year including $7.3 million received from our BC Realty partnership refinancing our FRP provided floating rate construction loans on our two (2) office buildings with Symetra Life Insurance Company.
Previous wording
Financing Activities – Net cash provided by financing activities was $10,759,000 versus $11,269,000 used by financing activities in the same period last year primarily due to $11.5 million draws on the loans in the current year compared to$10.7 million distribution to noncontrolling interests related to the the planned increase in ownership of our partnerships with Altman Logistics at the construction loan closings.
Current wording
Financing Activities – Net cash provided by financing activities was $21,424,000 versus $9,918,000 used by financing activities in the same period last year primarily due to $22.4 million of draws on the loans in the current year compared to$11.6 million distribution to noncontrolling interests related to the planned increase in ownership of our partnerships with Altman Logistics at the construction loan closings during 2025.
Previous wording
Credit Facilities - On July 21, 2025, the Company entered into a 2025 Amended and Restated Credit Agreement (the "Credit Agreement") with Wells Fargo Bank, N.A. (“Wells Fargo”). The Credit Agreement modifies the Company’s prior Credit Agreement with Wells Fargo, dated December 22, 2023. The Credit Agreement establishes a five-year revolving credit facility with a maximum facility amount of $50 million. The interest rate under the Credit Agreement will be 2.25% over Daily Simple SOFR. A commitment fee of 0.35% per annum is payable quarterly on the unused portion of the commitment. The credit agreement contains certain conditions and financial covenants, including a minimum tangible net worth and dividend restriction. As of March 31, 2026, these covenants would have limited our ability to pay dividends to a maximum of $87.0 million combined.
Current wording
Credit Facilities - On July 21, 2025, the Company entered into the 2025 Amended and Restated Credit Agreement (the "Credit Agreement") with Wells Fargo Bank, N.A. (“Wells Fargo”). The Credit Agreement establishes a five-year revolving credit facility with a maximum facility amount of $50 million. The interest rate under the Credit Agreement will be 2.25% over Daily Simple SOFR. A commitment fee of 0.35% per annum is payable quarterly on the unused portion of the commitment. The Credit Agreement contains certain conditions and financial covenants, including a minimum tangible net worth and dividend restriction. As of June 30, 2026, these covenants would have limited our ability to pay dividends to a maximum of $88.0 million combined.
Previous wording
On October 21, 2025 as part of the Altman Logistics platform acquisition the Company assumed minority equity ownership interests in three joint ventures which had existing construction debt agreements. Delray partnership secured a $23.8 million loan at SOFR plus 3.50% from City National Bank. It is a two-year construction loan issued April 4, 2024 with two one-year conditional extensions. The Delray partnership also secured a two-year $7.5 million loan at SOFR plus 3.75% on April 4, 2024 from City National for the land for future phases of the project, also with two one-year conditional extensions. Parsippany partnership secured a $22.0 million loan at SOFR plus 2.75% from Truist Bank. It is a three-year construction loan issued January 15, 2025 with a one-year conditional extension. Hamilton partnership secured a $20.5 million loan at SOFR plus 3.50% from the joint venture partner effective for three years from May 22, 2025 with two one-year conditional extensions.
Current wording
On October 21, 2025 as part of the Altman Logistics platform acquisition the Company assumed minority equity ownership interests in three joint ventures which had existing construction debt agreements. Delray partnership secured a $23.8 million loan at SOFR plus 3.50% from City National Bank. It is a two-year construction loan issued April 4, 2024 with two one-year conditional extensions, the first of which is in effect. The Delray partnership also secured a two-year $7.5 million loan at SOFR plus 3.75% on April 4, 2024 from
Previous wording
Cash Requirements – The Company expects to invest $69 million into our existing real estate holdings and joint ventures during the remainder of 2026 and $113 million beyond 2026 for projects currently in our pipeline, with such capital being funded from cash and investments on hand, cash generated from operations, property sales, distributions from joint ventures, or borrowings under our credit facilities.
Current wording
Cash Requirements – The Company expects to invest $42 million into maintenance capex and projects currently under development during the remainder of 2026 and $112 million 2027-2030 for maintenance capex plus new projects currently in our pipeline, with such capital being funded from cash and investments on hand, cash generated from operations, property sales, distributions from joint ventures, or borrowings under our credit facilities.
Previous wording
To supplement the financial results presented in accordance with GAAP, FRP presents certain non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. We believe these non-GAAP measures provide useful information to our Board of Directors, management and investors regarding certain trends relating to our financial condition and results of operations. Our management uses these non-GAAP measures to compare our performance to that of prior periods for trend analyses, purposes of determining management incentive compensation and budgeting, forecasting and planning purposes. We provide Pro rata net operating income (NOI), adjusted Pro rata net operating income, and adjusted Net income because we believe they assist investors and analysts in estimating our economic interest in our consolidated and unconsolidated partnerships, when read in conjunction with our reported results under GAAP. These measures are not, and should not be viewed as, a substitute for GAAP financial measures.
Current wording
To supplement the financial results presented in accordance with GAAP, FRP presents certain non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. We believe these non-GAAP measures provide useful information to our Board of Directors, management and investors regarding certain trends relating to our financial condition and results of operations. Our management uses these non-GAAP measures to compare our performance to that of prior periods for trend analyses, purposes of determining management incentive compensation and budgeting, forecasting and planning purposes. We provide operating profit before G&A and Pro rata net operating income (NOI) because we believe they assist investors and analysts in estimating our economic interest in our consolidated and unconsolidated partnerships, when read in conjunction with our reported results under GAAP. These measures are not, and should not be viewed as, a substitute for GAAP financial measures.
Previous wording
from these estimates. Please refer to the section of our Annual Report on Form 10-K for the year ended December 31, 2025, entitled "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies” for a discussion of our critical accounting policies. During thethree months ended March 31, 2026, there were no material changes to these policies.
Current wording
from these estimates. Please refer to the section of our Annual Report on Form 10-K for the year ended December 31, 2025, entitled "Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies” for a discussion of our critical accounting policies. During thesix months ended June 30, 2026, there were no material changes to these policies.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
•20% decrease in Industrial and Commercial revenue and 36% decrease in that segment’s NOI primarily due to vacancies from an eviction of one tenant and lease expirations.
Current report — wording carried from elsewhere
Comparative Results of Operations for the Six months ended June 30, 2026 and 2025
Current report — wording carried from elsewhere
Multifamily Segment (Pro rata consolidated and pro rata unconsolidated)
Current report — wording carried from elsewhere
Multifamily Segment (Consolidated - Dock 79 and The Maren)
Current report — wording carried from elsewhere
Our Multifamily Segment has four unconsolidated joint ventures (Bryant Street, The Verge, Riverside, and .408 Jackson). Riverside was moved from the Development segment to the Multifamily segment in 2022, Bryant Street and .408 Jackson moved as of the beginning of 2024 and The Verge moved effective July 1, 2024, each upon reaching lease up stabilization.
Current report — wording carried from elsewhere
Total revenues in this segment were $2,183,000, down $538,000 or 20%, over the same period last year. Operating profit before G&A was $178,000, down $908,000 or 84% from $1,086,000 in the same period last year with $298,000 due to $218,000 of depreciation and $80,000 of first quarter carrying costs on our Chelsea spec warehouse placed in service in April 2025 along with non-renewing leases. Net operating income in this segment was $1,374,000, down $775,000 or 36% compared to the same period last year.
Current report — wording carried from elsewhere
City National for the land for future phases of the project, also with two one-year conditional extensions. Parsippany partnership secured a $22.0 million loan at SOFR plus 2.75% from Truist Bank. It is a three-year construction loan issued January 15, 2025 with a one-year conditional extension. Hamilton partnership secured a $20.5 million loan at SOFR plus 3.50% from the joint venture partner effective for three years from May 22, 2025 with two one-year conditional extensions.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
October 21, 2025 we purchased the interests of Altman Logistics in these two joint ventures and now own 100% of both of these projects.
Previous report — wording carried elsewhere
Riverfront received second-stage PUD approval on October 10, 2025 and is not currently in development; accordingly, carrying costs are now being expensed rather than capitalized.