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Annual Report 2025 FRP Holdings, Inc. CONSOLIDATED FINANCIAL HIGHLIGHTS Years ended December 31 (Amounts in thousands except per share amounts) 2024 2023 Change Revenues ............................................................................................................ $ Operating profit ................................................................................................. $ Net investment income ..................................................................................... $ Interest Expense ................................................................................................ $ Equity in loss of joint ventures ....................................................................... $ Gain on sale of real estate and other income ............................................. $ Gain (loss) attributable to noncontrolling interest....................................... $ Net income attributable to the Company ..................................................... $ 42,846 7,028 8,824 (2,967) (9,105) (368) 3,330 41,774 11,704 11,112 (3,150) (11,359) 182 75 6,385 2.6 (40.0) (20.6) (5.8) (19.8) (100.0) N/A (47.8) Per common share: Net income attributable to the Company: Basic ............................................................................................................. $ Diluted .......................................................................................................... $ 0.18 0.18 0.34 0.34 (47.1) (47.1) Total Assets ........................................................................................................ $ 735,145 Total Debt ............................................................................................................ $ 192,554 Shareholders Equity ........................................................................................ $ 428,513 Common Shares Outstanding ........................................................................ 19,110 Book Value Per Common Share .................................................................... $ 22.42 728,485 178,853 423,103 19,047 22.21 BUSINESS. FRP Holdings, Inc. is a holding company engaged in the real estate business, namely (i) real property acquisition, entitlement, development and construction primarily for apartment, retail, warehouse, and office, (ii) leasing and management of commercial properties owned by the Company, (iii) leasing and management of mining royalty land owned by the Company, (iv) leasing and management of residential apartment buildings. The Company s operating subsidiaries are FRP Development Corp. and Florida Rock Properties, Inc. STRATEGY. Our strategy consists of the re-deployment of cash from asset sales, real estate operations, and mining royalties, into new assets that allow management to exploit its knowledge and expertise. The asset classes of choice are mixed-use, industrial, raw land and existing 0.9 7.7 1.3 .3 0.9 buildings. We invest in these assets on our own or through repeatable strategic partnerships with a focus on core markets with growth potential. Emphasis will be placed on generating returns through opportunistic disposition, as well as cash-flow and long-term appreciation. OBJECTIVE. We strive to improve shareholder value through (1) active engagement with properties and partners to grow asset value, (2) contributing our operating expertise and connections to maximize net asset value, cashflow and NOI growth, and (3) manage our capital structure in an efficient and responsible manner, with a watchful eye on projected future market conditions and trends to facilitate timely disposition of selected assets, (4) diligent, sustainable growth. 1
To Our Shareholders Looking back at this time last year, we communicated that 2025 would likely represent a transitional financial year for the Company. That expectation largely proved accurate. Pro rata Net Operating Income (NOI) growth moderated and earnings declined as several multifamily assets moved beyond lease-up, portions of our industrial portfolio entered a new leasing cycle, and broader supplydemand dynamics created headwinds for rent growth and leasing velocity. These developments were largely anticipated and reflect timing within our development and leasing pipeline rather than any deterioration in asset quality or long-term strategy. Where we fell short as a Company was setting the company up for growth in 2026. We expected to lease up our most recent spec warehouse and shore up vacancies in our same store assets and we didn t. On top of that, we made an acquisition that while necessary and accretive for the long-term future of the company, also adds additional general and administrative expense, depreciation, and interest expense. Any growth in NOI in 2026 will be marginal. Funds From Operations (FFO), which most of our real estate peers use as the best metric for tracking operational cash flow, will be down. Increased expenses, depressed cash flows- these are not traditionally the ingredients for success in the short term for the performance of a stock. These metrics also do not tell the full story of everything we set in motion in 2025. This past year was incredibly important strategically for the long-term performance of the Company. The acquisition of the Altman Logistics Properties platform expands our operating footprint into Florida and New Jersey markets with strong demographic trends, logistics demand, and long-term capital interest. Equally important, the acquisition strengthened our internal talent base, broadened our development pipeline, and expanded relationships with equity partners, lenders, and operating counterparties. Together, these enhancements position the Company to grow both durable cash flow and net asset value over time. The increase in expenses are an alternative to expansion via a joint venture strategy that we have pursued in the past. While minimizing G&A initially, this strategy is paid for through development fees, and far more significantly, with equity in a successful project. Because of this acquisition, we not only have key personnel who fill roles that were already envisioned as part of our development strategy, but these new employees are based in the markets that we could only enter via our previous joint venture strategy. We are now able to execute our traditional inhouse development as well as take on fee development opportunities, or execute a hybrid of these two models. 2 FRP Holdings, Inc. This will allow us to generate equity in successful projects rather than giving it up. By acquiring Altman Logistics and its platform, we are in the markets we want to be in, have the people we need to grow, have projects underway capable of carrying the cost of this human capital, and can scale beyond our current size disproportionately to G&A growth. We have enhanced our flexibility in how we grow, can earn development fees instead of paying them, can generate equity in successful projects instead of giving it up, and compound these savings into additional projects under the same platform. The combination of development fees and loss in equity on a project can range from 3-15% of total project costs, so reversing that flow of cash and equity is not insignificant to the Company in terms of future financial performance. This acquisition has refined and augmented a platform and pipeline that management expects will drive earnings and earnings growth, operational cash flow, and net asset value, which we believe we will accomplish through three complementary drivers of value: (1) durable cash flow from mining royalties, (2) operational execution and samestore growth, and (3) development and disciplined capital deployment. We are fortunate to have as tenants some of the best operators in the aggregates business. They have continued to push price aggressively which is why we saw a $1.5 million improvement in royalty revenue in 2025 despite 500,000 fewer tons mined. Given our market concentration in Florida, I would expect volumes to be flat if not slightly down in 2026 given a relative softening in private construction (with the glaring exception of data centers) and housing starts. Our royalty agreements are based on the previous year s average sales price, so if pricing growth softens, it won t affect our royalty on the price side for another year. Historically, the Florida aggregates market is the tail of the whip in terms of market cyclicality, but that s generally a good thing. We have the utmost confidence in the long term direction of this segment because of the strength of the markets our assets serve and the operating skill of our tenants. It is for those very reasons that this segment has long been a significant cash flow generator for the company and why we have been able to put money towards development at conservative leverage levels relative to your typical developer. Improving same-store occupancy and performance across our existing assets remains a near-term priority. Multifamily performance, particularly within our Washington DC submarkets, has faced supply pressures and regulatory
To Our Shareholders continued challenges, though early signs of stabilization are emerging. Industrial vacancies tied to newly delivered buildings or recent move-outs and existing vacancy represent embedded NOI growth as leasing progresses. Fully occupied at current market rates, the vacancies in our current assets represent approximately $3-$3.5 million in NOI growth growth we can achieve with minimal capital expenditures. It may take a year, it may take two, but we will have our current industrial assets back to the occupancy levels we have historically enjoyed. Development, and industrial development in particular, continues to be our primary engine for long-term value creation. Our expanded industrial pipeline is set to deliver value in two distinct ways. The merchant development program we acquired from our purchase of Altman Logistics Properties will generate cash from sales upon stabilization. More in line with our traditional growth model are our industrial assets under development in Lakeland and Broward County and Minneola, FL. When these assets reach stabilization in approximately 2028, they will represent approximately $9.3 million in NOI attributable to the Company. As an asset class, industrial has always been an operating business more so than ever as industrial moves past the covid surge and into a more normalized environment. Success will require disciplined underwriting and talent in execution, both by leveraging networks to find off market deals in infill locations and developing assets under budget. If assets are well executed and in the right location, a properly capitalized company that underwrites realistically won t put themselves in a bad place on the front end and won t have to force anything in terms of leasing and sales that it will regret five years down the line. Talent, discipline, location, and capital have always been the ingredients for success in real estate. Going forward they are an absolute necessity. Our strategy remains concentrated in Florida, New Jersey, and Maryland markets we know well and where long-term demand drivers remain intact. Each benefits from population density, critical infrastructure, and barriers to entry that constrain supply in well-located submarkets. While nearterm conditions vary, these regions serve as essential nodes within the national logistics network, and we invest with that durability in mind. I have touched on this several times in the past, but anyone who has looked at our sum of the parts valuation will have noticed that the market tends to only give this Company credit for its income producing assets. Anything under development is essentially free for anyone who FRP Holdings, Inc. buys our stock. What that tells me is that the market considers us a show me story. Over the next several years, the ratio of our income producing assets to assets under development will shift significantly. When the assets currently under development are producing cash flows, I refuse to believe that the market will continue to look at this company and say your dollar is worth sixty cents. As is typical in real estate development cycles, periods of elevated investment, integration, and leasing activity can temporarily pressure reported earnings. Incremental general and administrative costs, depreciation, financing expenses, and capital deployment associated with newly acquired and developing assets will continue to depress near-term financial results. GAAP earnings may therefore understate underlying value creation, while FFO may reflect some continued short-term pressure. Reported results will likely remain mixed until assets under development stabilize, vacancies are leased, and the next phase of earnings and NAV expansion is realized. Said simply, I know that 2026 is likely to be a mixed bag in much the way 2025 was. I also know that is frustrating for any shareholder looking for an immediate turn around to this year. But more important to me is knowing where the Company is headed. For a public company, even a small-cap public company, management and board ownership of this company is disproportionately large. Because insider ownership is so prevalent, there can be no doubt regarding alignment between management and shareholders. When we make capital decisions, we make them based on long-term value creation, even if they come at the expense of short-term results. Because of where we are and where we are going, our chairman bought 14,971 shares in 2025, and I bought 4,166. I won t speak for him, but I intend to buy just as much in 2026. With the assets, balance sheet, and talent at this Company s disposal, it is an investment I am only too happy to make, because I am confident that the market will ultimately recognize the value we are set to create with our same store growth and development pipeline. When we do, it will be hard to ignore. Sincerely, John D. Baker III Chief Executive Officer 3
 • shareholder letter icon 4/15/2026 Letter Continued (Full PDF)
 • stockholder letter icon 3/24/2023 FRPH Stockholder Letter
 • stockholder letter icon 4/16/2024 FRPH Stockholder Letter
 • stockholder letter icon 4/1/2025 FRPH Stockholder Letter
 • stockholder letter icon More "Real Estate" Category Stockholder Letters
 • Benford's Law Stocks icon FRPH Benford's Law Stock Score = 92


FRPH Shareholder/Stockholder Letter Transcript:



Annual Report 2025
FRP Holdings, Inc.
CONSOLIDATED FINANCIAL HIGHLIGHTS
Years ended December 31
(Amounts in thousands except per share amounts)

2024
2023

Change
Revenues ............................................................................................................ $
Operating profit ................................................................................................. $
Net investment income ..................................................................................... $
Interest Expense ................................................................................................ $
Equity in loss of joint ventures ....................................................................... $
Gain on sale of real estate and other income ............................................. $
Gain (loss) attributable to noncontrolling interest....................................... $
Net income attributable to the Company ..................................................... $
42,846
7,028
8,824
(2,967)
(9,105)
(368)
3,330
41,774
11,704
11,112
(3,150)
(11,359)
182
75
6,385
2.6
(40.0)
(20.6)
(5.8)
(19.8)
(100.0)
N/A
(47.8)
Per common share:
   Net income attributable to the Company:
  Basic ............................................................................................................. $
  Diluted .......................................................................................................... $
0.18
0.18
0.34
0.34
(47.1)
(47.1)
Total Assets ........................................................................................................ $ 735,145
Total Debt ............................................................................................................ $ 192,554
Shareholders    Equity ........................................................................................ $ 428,513
Common Shares Outstanding ........................................................................
19,110
Book Value Per Common Share .................................................................... $
22.42
728,485
178,853
423,103
19,047
22.21
BUSINESS. FRP Holdings, Inc. is a holding company
engaged in the real estate business, namely (i) real property
acquisition, entitlement, development and construction
primarily for apartment, retail, warehouse, and office,
(ii) leasing and management of commercial properties
owned by the Company, (iii) leasing and management of
mining royalty land owned by the Company, (iv) leasing
and management of residential apartment buildings. The
Company   s operating subsidiaries are FRP Development
Corp. and Florida Rock Properties, Inc.
STRATEGY. Our strategy consists of the re-deployment
of cash from asset sales, real estate operations, and
mining royalties, into new assets that allow management
to exploit its knowledge and expertise. The asset classes
of choice are mixed-use, industrial, raw land and existing
0.9
7.7
1.3
.3
0.9
buildings. We invest in these assets on our own or through
repeatable strategic partnerships with a focus on core
markets with growth potential. Emphasis will be placed on
generating returns through opportunistic disposition, as
well as cash-flow and long-term appreciation.
OBJECTIVE. We strive to improve shareholder value
through (1) active engagement with properties and
partners to grow asset value, (2) contributing our operating
expertise and connections to maximize net asset value,
cashflow and NOI growth, and (3) manage our capital
structure in an efficient and responsible manner, with a
watchful eye on projected future market conditions and
trends to facilitate timely disposition of selected assets,
(4) diligent, sustainable growth.
1

To Our Shareholders
Looking back at this time last year, we communicated
that 2025 would likely represent a transitional financial
year for the Company. That expectation largely proved
accurate. Pro rata Net Operating Income (NOI) growth
moderated and earnings declined as several multifamily
assets moved beyond lease-up, portions of our industrial
portfolio entered a new leasing cycle, and broader supplydemand dynamics created headwinds for rent growth
and leasing velocity. These developments were largely
anticipated and reflect timing within our development and
leasing pipeline rather than any deterioration in asset
quality or long-term strategy.
Where we fell short as a Company was setting the company
up for growth in 2026. We expected to lease up our most
recent spec warehouse and shore up vacancies in our
same store assets and we didn   t. On top of that, we made
an acquisition that while necessary and accretive for the
long-term future of the company, also adds additional
general and administrative expense, depreciation, and
interest expense. Any growth in NOI in 2026 will be
marginal. Funds From Operations (FFO), which most of
our real estate peers use as the best metric for tracking
operational cash flow, will be down.
Increased expenses, depressed cash flows- these are not
traditionally the ingredients for success in the short term
for the performance of a stock. These metrics also do not
tell the full story of everything we set in motion in 2025.
This past year was incredibly important strategically for the
long-term performance of the Company. The acquisition
of the Altman Logistics Properties platform expands our
operating footprint into Florida and New Jersey     markets
with strong demographic trends, logistics demand, and
long-term capital interest. Equally important, the acquisition
strengthened our internal talent base, broadened our
development pipeline, and expanded relationships with
equity partners, lenders, and operating counterparties.
Together, these enhancements position the Company to
grow both durable cash flow and net asset value over time.
The increase in expenses are an alternative to expansion
via a joint venture strategy that we have pursued in the
past. While minimizing G&A initially, this strategy is paid for
through development fees, and far more significantly, with
equity in a successful project. Because of this acquisition,
we not only have key personnel who fill roles that were
already envisioned as part of our development strategy,
but these new employees are based in the markets
that we could only enter via our previous joint venture
strategy. We are now able to execute our traditional inhouse development as well as take on fee development
opportunities, or execute a hybrid of these two models.
2
FRP Holdings, Inc.
This will allow us to generate equity in successful projects
rather than giving it up. By acquiring Altman Logistics
and its platform, we are in the markets we want to be in,
have the people we need to grow, have projects underway
capable of carrying the cost of this human capital, and can
scale beyond our current size disproportionately to G&A
growth. We have enhanced our flexibility in how we grow,
can earn development fees instead of paying them, can
generate equity in successful projects instead of giving it
up, and compound these savings into additional projects
under the same platform. The combination of development
fees and loss in equity on a project can range from 3-15%
of total project costs, so reversing that flow of cash and
equity is not insignificant to the Company in terms of future
financial performance.
This acquisition has refined and augmented a platform
and pipeline that management expects will drive earnings
and earnings growth, operational cash flow, and net asset
value, which we believe we will accomplish through three
complementary drivers of value: (1) durable cash flow
from mining royalties, (2) operational execution and samestore growth, and (3) development and disciplined capital
deployment.
We are fortunate to have as tenants some of the best
operators in the aggregates business. They have
continued to push price aggressively which is why we
saw a $1.5 million improvement in royalty revenue in 2025
despite 500,000 fewer tons mined. Given our market
concentration in Florida, I would expect volumes to be
flat if not slightly down in 2026 given a relative softening
in private construction (with the glaring exception of data
centers) and housing starts. Our royalty agreements are
based on the previous year   s average sales price, so
if pricing growth softens, it won   t affect our royalty on
the price side for another year. Historically, the Florida
aggregates market is the tail of the whip in terms of
market cyclicality, but that   s generally a good thing. We
have the utmost confidence in the long term direction of
this segment because of the strength of the markets our
assets serve and the operating skill of our tenants. It is
for those very reasons that this segment has long been a
significant cash flow generator for the company and why
we have been able to put money towards development
at conservative leverage levels relative to your typical
developer.
Improving same-store occupancy and performance across
our existing assets remains a near-term priority. Multifamily
performance, particularly within our Washington DC
submarkets, has faced supply pressures and regulatory

To Our Shareholders continued
challenges, though early signs of stabilization are
emerging. Industrial vacancies tied to newly delivered
buildings or recent move-outs and existing vacancy
represent embedded NOI growth as leasing progresses.
Fully occupied at current market rates, the vacancies
in our current assets represent approximately $3-$3.5
million in NOI growth   growth we can achieve with minimal
capital expenditures. It may take a year, it may take two,
but we will have our current industrial assets back to the
occupancy levels we have historically enjoyed.
Development, and industrial development in particular,
continues to be our primary engine for long-term value
creation. Our expanded industrial pipeline is set to deliver
value in two distinct ways. The merchant development
program we acquired from our purchase of Altman
Logistics Properties will generate cash from sales upon
stabilization. More in line with our traditional growth model
are our industrial assets under development in Lakeland
and Broward County and Minneola, FL. When these
assets reach stabilization in approximately 2028, they will
represent approximately $9.3 million in NOI attributable to
the Company.
As an asset class, industrial has always been an operating
business   more so than ever as industrial moves past the
covid surge and into a more normalized environment.
Success will require disciplined underwriting and talent
in execution, both by leveraging networks to find off
market deals in infill locations and developing assets
under budget. If assets are well executed and in the right
location, a properly capitalized company that underwrites
realistically won   t put themselves in a bad place on the
front end and won   t have to force anything in terms of
leasing and sales that it will regret five years down the line.
Talent, discipline, location, and capital have always been
the ingredients for success in real estate. Going forward
they are an absolute necessity. Our strategy remains
concentrated in Florida, New Jersey, and Maryland
    markets we know well and where long-term demand
drivers remain intact. Each benefits from population
density, critical infrastructure, and barriers to entry that
constrain supply in well-located submarkets. While nearterm conditions vary, these regions serve as essential
nodes within the national logistics network, and we invest
with that durability in mind.
I have touched on this several times in the past, but
anyone who has looked at our sum of the parts valuation
will have noticed that the market tends to only give this
Company credit for its income producing assets. Anything
under development is essentially free for anyone who
FRP Holdings, Inc.
buys our stock. What that tells me is that the market
considers us a    show me    story. Over the next several
years, the ratio of our income producing assets to assets
under development will shift significantly. When the assets
currently under development are producing cash flows, I
refuse to believe that the market will continue to look at
this company and say    your dollar is worth sixty cents.   
As is typical in real estate development cycles, periods
of elevated investment, integration, and leasing activity
can temporarily pressure reported earnings. Incremental
general and administrative costs, depreciation, financing
expenses, and capital deployment associated with newly
acquired and developing assets will continue to depress
near-term financial results. GAAP earnings may therefore
understate underlying value creation, while FFO may
reflect some continued short-term pressure. Reported
results will likely remain mixed until assets under
development stabilize, vacancies are leased, and the next
phase of earnings and NAV expansion is realized. Said
simply, I know that 2026 is likely to be a mixed bag in
much the way 2025 was. I also know that is frustrating
for any shareholder looking for an immediate turn around
to this year. But more important to me is knowing where
the Company is headed. For a public company, even
a small-cap public company, management and board
ownership of this company is disproportionately large.
Because insider ownership is so prevalent, there can be
no doubt regarding alignment between management and
shareholders. When we make capital decisions, we make
them based on long-term value creation, even if they come
at the expense of short-term results. Because of where we
are and where we are going, our chairman bought 14,971
shares in 2025, and I bought 4,166. I won   t speak for him,
but I intend to buy just as much in 2026. With the assets,
balance sheet, and talent at this Company   s disposal, it
is an investment I am only too happy to make, because
I am confident that the market will ultimately recognize
the value we are set to create with our same store growth
and development pipeline. When we do, it will be hard to
ignore.
Sincerely,
John D. Baker III
Chief Executive Officer
3


shareholder letter icon 4/15/2026 Letter Continued (Full PDF)
 

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