{"id":11777,"date":"2024-06-03T18:42:02","date_gmt":"2024-06-03T23:42:02","guid":{"rendered":"https:\/\/1reason.com\/re\/frp-holdings-inc-nasdaq-frph-announces-results-for-the-first-quarter-ended-march-31-2024\/11777\/"},"modified":"2024-06-04T13:42:02","modified_gmt":"2024-06-04T18:42:02","slug":"frp-holdings-inc-nasdaq-frph-announces-results-for-the-first-quarter-ended-march-31-2024","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/frp-holdings-inc-nasdaq-frph-announces-results-for-the-first-quarter-ended-march-31-2024\/11777\/","title":{"rendered":"FRP Holdings, Inc. (NASDAQ: FRPH) Announces Results for the First Quarter Ended March 31, 2024"},"content":{"rendered":"
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\u2019s 92% increase in pro-rata NOI over the same period last year. <\/p>\n

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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

First Quarter Consolidated Results of Operations<\/strong><\/p>\n

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:<\/p>\n