FRP Holdings, Inc. — Fiscal 2026 Third Quarter Earnings Summary

Financial Performance

• Reported a net loss attributable to the Company of $165,000 ($0.01 per share) for Q3 2026, compared to net income of $662,000 ($0.03 per share) in Q3 2025.
• Year-to-date (nine months ended September 30, 2026) net loss was $1.111 million ($0.06 per share), versus net income of $2.95 million ($0.16 per share) in the same period of 2025.
• Total revenues for Q3 2026 were $11.0 million, up 1.7% year-over-year, driven by a 10% increase in mining royalty revenue and $49,000 in joint venture management fees, partially offset by a 3% decline in lease revenue.
• Year-to-date total revenues were $32.6 million, up 2.2% year-over-year, with a 12% increase in mining royalty revenue and $407,000 in joint venture management fees offsetting a 5% decline in lease revenue.
• Pro rata NOI for Q3 2026 was $9.034 million, down 5% year-over-year from $9.523 million; year-to-date pro rata NOI was $27.266 million, down 5% from $28.575 million.
• General and administrative (G&A) expenses increased by $1.007 million in Q3 2026 and $3.317 million year-to-date, driven by higher personnel costs, legal fees, and integration expenses following the Altman acquisition.
• Investment income decreased by $1.018 million in Q3 2026 and $3.002 million year-to-date, reflecting lower interest income on cash balances and reduced lending venture income.
• Notes payable increased to $231.666 million as of September 30, 2026, from $192.554 million as of December 31, 2025.
• Cash, cash equivalents, and restricted cash stood at $73.180 million as of September 30, 2026, down from $105.361 million as of December 31, 2025.
• Deferred revenue was $3.850 million as of September 30, 2026, compared to $3.356 million as of December 31, 2025.

Guidance and Future Outlook

• Management expects Lakeland and Davie warehouses to be substantially complete in the fourth quarter of 2026, with Camp Lake following in the first quarter of 2027.
• At stabilization, the four assets (Chelsea, Lakeland, Davie, and Camp Lake) are estimated to generate approximately $12 million in annual recurring pro rata NOI and $7 million in annual FFO.
• Cranberry Business Park vacancies are estimated to contribute approximately $1 million in additional annual recurring NOI and FFO at full occupancy.
• Three merchant build projects in Delray, Florida, and Hamilton and Parsippany, New Jersey, totaling 510,307 square feet, are in early stages of lease-up with plans to monetize following stabilization.
• The Woven project in Greenville, SC (214 units and 13,500 sq ft retail) and Estero Phase 1 in Naples/Ft. Myers, FL (296 multifamily units and 28,745 sq ft retail) are under construction with substantial completion expected late 2027.

Business Segments and Product Lines

• Multifamily: Pro rata NOI was $4.028 million in Q3 2026, down 12% year-over-year; portfolio average occupancy was 93.0% across 1,827 units. Performance weakened in Washington, DC properties due to higher concessions and operating expenses, while Greenville assets remained steady with occupancy above 95%.
• Industrial & Commercial: Pro rata NOI was $651,000 in Q3 2026, down 28% year-over-year. Average occupancy excluding Chelsea was 71.4% versus 72.4% a year earlier; quarter-end occupancy was 74.3%. Executed 126,682 square feet of leasing activity, the most active quarter since Q2 2021.
• Mining Royalty: NOI was $4.115 million in Q3 2026, up 10% year-over-year, driven by a 6.9% increase in volume and a 3.0% increase in revenue per ton. Year-to-date, mining royalties were up 12%.
• Development: Operating profit before G&A was $514,000 year-to-date, a significant improvement from a $1.802 million loss in the prior year period, driven by joint venture management fees and the absence of prior year acquisition expenses.
• Merchant Platform: The Altman Logistics Property acquisition closed on October 21, 2025, adding origination, construction, and asset management capabilities. Projects in Delray, Hamilton, Parsippany, and Southwest Ranches, FL, are in various stages of completion and lease-up.

Market and Competitive Landscape

• Leasing challenges persist in Washington, DC multifamily assets and the Maryland industrial portfolio.
• The Maryland portfolio includes approximately 399,000 square feet of available space, including 13,710 square feet of office space, representing a primary near-term opportunity to increase NOI.
• The expiration of the former Vulcan land lease at 21st Street contributed to a $183,000 decline in Industrial & Commercial NOI in Q3 2026 and $365,000 year-to-date.

Risks and Challenges

• Reported earnings are currently weighed down by interest expense, property operating costs, and depreciation from properties moving through shell completion and lease-up prior to stabilization.
• Multifamily performance is pressured by higher concessions and operating expenses, particularly in DC assets where occupancy declined.
• Investment income is under pressure due to lower average cash balances, lower interest rates, and declining outstanding loan balances in lending ventures.
• Forward-looking statements note risks including inability to find investment opportunities, construction activity levels, demand for flexible facilities, zoning entitlements, capital market conditions, tenant defaults, and interest rate volatility.

Management Commentary and Tone

• CEO John Baker III stated that results reflect continued leasing challenges, higher G&A following the Altman acquisition, and lower interest income.
• Management emphasized that mining remained a strong contributor and that the immediate priority is building industrial scale and converting investments into recurring NOI and FFO.
• The tone indicates a focus on carrying forward recent leasing activity and improving performance across the operating portfolio.

Other Key Points

• Executed 126,682 square feet of industrial leasing activity in Q3 2026, exceeding the combined total of Q2 2025 through Q2 2026.
• The Altman acquisition added significant capabilities and projects, including 199,476 sq ft in Delray (completed Q1 2026), 170,800 sq ft in Hamilton (completed Q2 2026), 140,031 sq ft in Parsippany (completed Q3 2026), and 335,617 sq ft in Southwest Ranches (land acquired July 2026).
• Sold 23 lots at the Harford County residential lending venture in Q3 2026 (271 of 344 lots sold to date), booking $7.8 million of interest and profit.
• Conference call scheduled for November 5, 2026, at 9:00 a.m. (ET).