FRP Holdings, Inc. (FRPH): Business Model Canvas [Dec-2025 Updated]

You're looking past the stock ticker to truly understand how FRP Holdings, Inc. actually makes money, especially now after their big October 2025 Altman Logistics acquisition. Honestly, this isn't just another developer; they've built a surprisingly resilient model balancing high-margin, passive mining royalty income-like the 15% royalty revenue jump in Q3 2025-with active development in industrial and multifamily spaces, which brought in $14.6 million in consolidated revenue that same quarter. We're breaking down the nine core blocks, from their 16,500 acres of royalty land to their strategic joint ventures, so you can see exactly where the value is being built today. Dive in to see the full, fact-based blueprint.

FRP Holdings, Inc. (FRPH) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel FRP Holdings, Inc.'s operations, especially after that big late-2025 industrial platform grab. These partnerships are how FRP scales its development and secures its steady royalty income stream.

Altman Logistics Properties (Acquisition closed October 2025)

This was a major move to expand the industrial platform, closing on October 21, 2025. The total purchase price was $33.5 million, resulting in a net cash requirement of $23.6 million for FRP Holdings, Inc.. FRP also assumed approximately $5.2 million in debt attributable to its share of construction financing at closing. The deal brought in operations and a development pipeline covering six industrial warehouse projects totaling over 1.28 million square feet across Florida and New Jersey. A key outcome is gaining 100% ownership of the Lakeland and Davie, Florida projects, where Altman previously held 10% and 20% minority interests, respectively. FRP expects the develop-and-sell model on most acquired projects to generate an internal rate of return (IRR) of 15-20%+ at the property level before any promotes.

The integration of Altman's team, led by the former President Mark Levy now serving as FRP's Chief Investment Officer, is expected to help execute the goal of doubling Net Operating Income (NOI) over the next five years and growing the sum-of-the-parts valuation to over $1 billion.

Woodfield Development for Multifamily Joint Ventures

FRP Holdings, Inc. has a history of joint ventures (JVs) with Woodfield Development, focusing on multifamily assets. For instance, in Greenville, South Carolina, FRP contributed $9.7 million in common equity for a 40% ownership interest in the 227-unit "408 Jackson" development, which also included 4,700 square feet of retail space. Another Greenville project, "Riverside," involved an FRP common equity contribution of $6.2 million. More recently, in 2023, FRP entered JVs with Woodfield to develop the Estero, FL project. The Estero project is a 46-acre site planned for 596 multifamily units, 60,000 square feet of commercial space, 20,000 square feet of office space, and a boutique 190-key hotel.

Industrial Development in Lake County, Florida

FRP Holdings, Inc.'s development pipeline includes industrial projects in Minneola, which is in Lake County, Florida. These involve two warehouse developments totaling 378,000 square feet, with construction slated to start in the third quarter of 2025. While the prompt specifies Strategic Real Estate Partners, the search results confirm the Minneola projects without naming that specific partner.

Major Aggregate Companies Leasing Mining Royalty Land

The Mining & Royalties segment relies heavily on leasing land to major aggregate producers. FRP Holdings, Inc. owns approximately 16,648 acres currently under lease for mining rents or royalties. This portfolio includes reserves totaling over 500M+ Tons across its properties. A significant partner here is Vulcan Materials Company, which leases several sites, including 4,280 acres in the Brooksville joint venture. For Q2 2025, the Pro Rata Net Operating Income (NOI) for the Mining & Royalties segment was $3,665,000, marking a 21% increase compared to Q2 2024. Year-to-date 2025 Pro Rata NOI reached $6,949,000, a 20% increase over the same period in 2024.

Here's a snapshot of the key mining royalty land relationships as of mid-2025:

Financial Institutions for Credit Facilities

FRP Holdings, Inc. uses credit facilities to finance its operations and development pipeline. The impact of restrictions imposed by its credit facility is explicitly noted as a risk factor affecting liquidity and the ability to finance projects or repay debt, as detailed in the May 2025 Form 10-Q. While the prompt suggests Wells Fargo as an example, specific details on the current outstanding balance or total committed amount of FRP Holdings, Inc.'s credit facility with Wells Fargo were not available in the provided late-2025 data points.

The company's ability to manage these relationships is key to its stated goal of growing its industrial platform and achieving its financial targets.

• FRP gained an experienced team from Altman, including Mark Levy, who directed over $3B in major initiatives across his career.
• The Altman acquisition adds to a development pipeline that previously included over 5M+ Square Feet.
• FRP's leadership team has over 120 years of combined experience.

Finance: draft the pro forma balance sheet impact of the Altman acquisition by next Tuesday.

FRP Holdings, Inc. (FRPH) - Canvas Business Model: Key Activities

You're looking at the core engine of FRP Holdings, Inc. (FRPH) as of late 2025, which is a blend of asset management, opportunistic development, and resource monetization. The activities are clearly segmented, but the recent Altman Logistics platform acquisition in October 2025 is a major shift in execution capability.

Real estate development: industrial, multifamily, and mixed-use projects.

FRP Holdings, Inc. continues to execute on development, though the Industrial and Commercial segment saw its pro rata Net Operating Income (NOI) fall 25% in the third quarter of 2025, partly due to vacancies and depreciation from the new Chelsea warehouse. The company is targeting mid-teens-20% project Internal Rates of Return (IRRs) on projects stemming from the recent Altman Logistics acquisition. The overall strategy includes deploying equity capital, with a stated goal of deploying $71 million in equity capital investments during 2025. The company also has a long-term goal to double the size of its industrial portfolio by 2030 by delivering three new industrial assets every two years. The multifamily development pipeline includes projects like the 'Woven' in Greenville, SC (214 multifamily units and 14,000 square feet of retail) and a 46-acre project in Estero, FL, featuring 596 multifamily units, commercial, and office space, with construction planned to start in 2025.

Leasing and property management of stabilized commercial and residential assets.

The leasing and management of stabilized assets provide the recurring cash flow base. As of the third quarter of 2025, the Multifamily segment, which includes assets like The Verge and Dock 79, had 91% of its apartments occupied and 74% of its retail space occupied. This portfolio comprises 1,827 apartments and over 125,000 square feet of retail space in Washington, D.C., and Greenville, South Carolina. The Industrial and Commercial segment occupancy was reported at 48.6% including the new Chelsea warehouse, or 72.4% excluding it, in the third quarter of 2025. The pro rata NOI for the entire company in Q3 2025 was $9.52 million.

Land entitlement and development of over 5,000 acres.

The land bank is a key resource, supporting future development across asset classes. FRP Holdings, Inc. owns, directly or through joint ventures, over 20,000 acres of land across Florida, Georgia, Maryland, Virginia, Delaware, and the District of Columbia. Specific examples of entitled land ready for construction include 15 acres at Lakeside Business Park in Harford County, Maryland, capable of supporting an additional 187,550 square feet of space, and 25 acres at Hollander 95 Business Park in Baltimore City, Maryland, supporting 227,490 square feet. The company's strategy emphasizes re-deployment of capital into raw land and development.

Strategic acquisitions of development platforms and minority interests.

A significant recent activity was the acquisition of the business operations and development pipeline of Altman Logistics Properties LLC, announced on October 21, 2025, for $33.5 million. This transaction immediately increased FRP Holdings, Inc.'s ownership in Florida industrial projects to 100% in some cases and brought in experienced talent. The acquisition expenses related to Altman Logistics totaled $1.28 million in the third quarter of 2025, impacting GAAP net income, which fell 51% to $0.66 million for the quarter. The company is focused on generating returns through opportunistic disposition, but this acquisition is clearly about scaling execution capability.

Managing 16 mining royalty locations across Florida, Georgia, and Virginia.

The Mining and Royalty Lands segment remains a consistent revenue contributor. This division manages 16 mining locations, with 1 mine located in Virginia and the remainder predominantly in Florida and Georgia. This segment showed strength in Q3 2025, with mining royalty revenues rising 15% year over year, driven by royalty tons up 6.5% and revenue per ton up approximately 5%. The segment's operating profit increased by $438,000 in Q3 2025 compared to the prior year, despite a tough comparison due to a non-recurring $1.9 million minimum royalty payment in the third quarter of 2024.

Here's a quick look at the Q3 2025 segment performance highlights:

FRP Holdings, Inc. (FRPH) - Canvas Business Model: Key Resources

You're looking at the core assets FRP Holdings, Inc. (FRPH) is using to drive its strategy right now, late in 2025. These aren't just line items; they are the physical and intellectual foundations supporting their goal to double Net Operating Income (NOI) over the next five years. Here's the quick math on what they bring to the table.

The foundation of the royalty stream is massive and stable. FRP Holdings, Inc. controls a significant land bank tied to aggregate mining. This resource is not subject to the direct operational costs of mining, which is a key advantage when construction cycles slow down. The scale here is substantial:

• Mining Royalty Land: Approximately 16,650 total acres, primarily in Florida and Georgia, subject to mining royalty leases with major operators like Vulcan Materials and Martin Marietta.

The growth engine is the development pipeline, significantly bolstered by the October 2025 acquisition of Altman Logistics Properties. This move immediately expanded their capacity to execute on large-scale industrial projects. The total pipeline is quite large, suggesting a multi-year runway for construction and stabilization activities.

The stabilized portfolio provides immediate, albeit smaller, cash flow while the development projects mature. As of Q3 2025, the multifamily portion was performing, with 91% of the apartments occupied. Still, the industrial segment faced headwinds, with a newly completed 258,000 square foot warehouse in Maryland being 100% vacant during Q2 2025.

Intellectual capital and financial firepower are the final pieces. The Altman acquisition wasn't just about square footage; it was about acquiring expertise to execute the growth plan. This talent is now integrated to help FRP Holdings, Inc. achieve its stated goal of doubling its industrial portfolio by 2030.

The company has the financial mandate to deploy capital aggressively this year to realize that growth. Honestly, this deployment target shows serious intent.

• Equity Capital Target: Management stated the goal to deploy $71 million in equity capital investments during 2025.
• Altman Acquisition Cost: The purchase price for the platform was $33.5 million, with a net cash requirement of $23.6 million at closing.
• Team Enhancement: The acquisition brought in a seasoned industrial development team, with President Mark Levy becoming FRP Holdings, Inc.'s new Chief Investment Officer.

Finance: draft 13-week cash view by Friday.

FRP Holdings, Inc. (FRPH) - Canvas Business Model: Value Propositions

You're looking at the core strengths FRP Holdings, Inc. (FRPH) offers to the market, which are rooted in its diversified asset base and patient, development-focused strategy. These aren't just abstract goals; they are backed by specific capital commitments and operational metrics as of late 2025.

Long-term value creation through strategic, well-located real estate development.

FRP Holdings, Inc. is executing a multi-year plan designed to significantly expand its high-quality portfolio. The company's stated goal is to double the size of its industrial portfolio by 2030. This is being funded through a massive capital deployment plan outlined through 2030.

• Total FRP Equity committed for 2025-2030 developments: $339 million.
• Total projected Pro Rata NOI Addition upon stabilization from this pipeline: $44 million.
• Total Assets as of December 31, 2024: $728,485,000.

Diversified income stability from three distinct segments: industrial, multifamily, and mining.

The business model relies on the counter-cyclical nature of its segments. For the first six months of 2025, leasing revenue totaled $14.3 million, while mining royalty payments contributed $6.8 million. This diversification helps smooth out performance, even when one area faces temporary headwinds, such as the $1.28 million in Altman Logistics acquisition-related expenses impacting Q3 2025 net income.

Segment performance in the third quarter of 2025 showed this bifurcation:

Still, the overall pro rata NOI for the first half of 2025 showed a 7% increase compared to the same period last year, driven by the mining segment's 20% year-to-date growth.

High-quality, Class A logistics assets in supply-constrained markets.

FRP Holdings, Inc. is actively increasing its exposure to modern logistics facilities. The October 2025 acquisition of Altman Logistics Properties LLC pipeline brings interests in six industrial properties under development totaling about 1.3 million square feet in Florida and New Jersey. These projects are targeted to deliver strong returns.

• Projected Internal Rates of Return (IRRs) for new industrial joint ventures are in the mid-teens to 20% prior to promote.
• Industrial and Commercial NOI segment occupancy was 48.6% in Q3 2025, reflecting lease expirations and a tenant eviction.
• The company owns over 5,000+ acres developed and is counting more.

Passive, high-margin royalty income from over 500 million tons of aggregate reserves.

The mining royalty segment provides a source of passive income based on the extraction of natural resources from land FRP Holdings, Inc. owns. The company states it has aggregate reserves totaling 500M+ Tons across its leased properties. This income stream has shown pricing power, with royalty tons up 6.5% and revenue per ton up about 5% year-over-year in Q3 2025. The company owns a fee simple interest in 14 aggregate quarries spanning approximately 16,650 total acres in Florida, Georgia, and Virginia.

Disciplined leasing strategy prioritizing value over short-term occupancy.

FRP Holdings, Inc. explicitly states it will not sacrifice long-term value for immediate occupancy gains. Management noted that a bad lease creates a longer headache than the short-term pain of a vacancy. This is a core tenet of their leasing approach in 2025.

• Management's stated position: 'We will not lease below value just to boost occupancy'.
• Multifamily renewal success rates were reported over 55%, though new lease trade-out rates were generally down in Q3 2025.

Finance: draft 13-week cash view by Friday.

FRP Holdings, Inc. (FRPH) - Canvas Business Model: Customer Relationships

You're looking at how FRP Holdings, Inc. manages its diverse set of relationships across its real estate and royalty businesses as of late 2025. It's a mix of hands-on management for residents and long-term contracts for resource extraction.

Dedicated management for large industrial and commercial tenants.

The Industrial and Commercial segment, which is mainly warehouses in Maryland, is currently navigating some leasing headwinds. This relationship management is critical for turning around recent occupancy dips. As of the third quarter of 2025, this segment had 10 buildings totaling nearly 810,000 square feet under management. The relationship challenge was evident as same-store occupancy reduced by 24%, equating to 132,000 square feet. Furthermore, the new Chelsea building, which adds 258,000 square feet, was 100% vacant in the quarter, meaning combined vacancies hit 51% of the segment. The focus here is definitely on re-tenanting to stabilize the segment's NOI, which saw a 25% decrease in Q3 2025.

Professional property management for multifamily residents (e.g., Dock 79, The Maren).

For the residents in Washington, D.C. and Greenville, South Carolina, FRP Holdings, Inc.'s Multifamily segment manages a portfolio of 1,827 apartments and over 125,000 square feet of retail space as of Q3 2025. The relationship quality here directly impacts revenue, as the consolidated portion of this segment saw a decrease of $404,000 due to uncollectible revenue and higher operating expenses/property taxes. The Maren specifically saw a decrease in NOI from increased uncollectible revenue. Here's a quick look at the unit counts for two key properties:

Overall, at the end of Q3 2025, 91% of the apartments were occupied, while retail space occupancy stood at 74%.

Long-term, contractual relationships with major mining operators.

The Mining and Royalty Lands segment relies on deep, long-term contractual ties. These relationships are crucial for the steady, albeit sometimes variable, cash flow they generate. In Q3 2025, total revenues for this segment were $3.7 million, with an NOI of $3.8 million. The segment showed resilience, posting a 16% increase in adjusted pro forma NOI when you take out a one-time, nonrecurring royalty payment of $1.9 million received in the third quarter of the prior year. This segment's performance indicates that the underlying contractual relationships are sound, even with the natural fluctuations in royalty tons and revenues.

Investor relations and transparent communication with shareholders.

FRP Holdings, Inc. maintains a formal, transparent communication channel with its stockholders, which is a key relationship focus for a publicly traded entity. The company released its Q3 2025 earnings on Wednesday, November 5, 2025, followed by a conference call on Thursday, November 6, 2025, at 9:00 a.m. (EST). The company directs interested parties to its investor relations page at https://www.frpdev.com/investor-relations/ for ongoing updates. The Q3 results showed a 51% decrease in Net Income to $700,000 (or $0.03 per share), largely due to $1.3 million in expenses related to the Altman Logistics Properties acquisition. Excluding those acquisition costs, adjusted Net Income was up 21% over the prior year's third quarter.

• Shareholders can access conference call replays until November 20, 2025.
• The company's strategy is to improve shareholder value through active engagement to grow asset value.
• The company's operating subsidiaries are FRP Development Corp. and Florida Rock Properties, Inc..

Transactional and project-based relationships with development partners.

FRP Holdings, Inc. actively engages in project-based relationships, often through joint ventures, to expand its pipeline. These partnerships are essential for deploying capital and leveraging specialized expertise. For instance, the company entered a joint venture with Strategic Real Estate Partners to develop industrial warehouses in Florida. Furthermore, the acquisition of Altman Logistics Properties brought in future development opportunities, specifically the potential to develop 3 additional buildings totaling 725,000 square feet in Florida. These development relationships are structured to exploit knowledge and expertise in asset classes like mixed-use, industrial, and raw land.

FRP Holdings, Inc. (FRPH) - Canvas Business Model: Channels

You're looking at how FRP Holdings, Inc. (FRPH) gets its properties leased, its royalties collected, and its capital story out to the market as of late 2025. It's a mix of direct management and external partners across its four main segments: Industrial/Commercial, Mining Royalty Lands, Development, and Multifamily.

The core of the leasing effort for wholly-owned and joint venture properties relies on direct in-house leasing and property management teams. This team handles the day-to-day for their Industrial and Commercial Segment, which includes eight warehouses and an office building. For the Multifamily Segment, which consists of joint ventures holding residential apartment communities, the direct team manages the leasing process for the 1,827 apartments and over 125,000 square feet of retail in the D.C. and South Carolina markets as of Q1 2025.

To expand its reach, especially in the industrial space, FRP Holdings, Inc. uses third-party commercial real estate brokers for industrial/commercial leasing. This channel was significantly bolstered in October 2025 when FRP acquired the business operations and development pipeline of Altman Logistics Properties, LLC. This acquisition brought in a talented team with deep contacts, supporting the goal to double the industrial segment NOI over five years. The acquired pipeline includes interests in six industrial properties under development totaling about 1.3 million square feet.

For the Multifamily Segment, marketing relies on digital presence and on-site operations. You see this in the occupancy figures: at the end of Q1 2025, the apartments were 94% occupied and the retail space was 74.8% occupied. Leasing revenue for the first six months of 2025 totaled $14.3 million, with most of that coming from the multifamily buildings.

Capital markets communication is strictly managed through formal channels. FRP Holdings, Inc. uses its Investor Relations website, found at https://www.frpdev.com/investor-relations/, to distribute key documents like the November 2025 presentation. They also use scheduled conference calls to discuss performance, such as the call held on November 6, 2025, following the Q3 2025 earnings release. All official financial data is disseminated via SEC filings.

The Mining Royalty Lands Segment operates through a distinct channel: direct negotiation and contracts for mining royalty leases. FRP Holdings, Inc. owns approximately 16,650 total acres under lease for mining rents or royalties, primarily in Florida and Georgia, with one location in Virginia. These royalties are structured based on a per ton, fixed percentage of the prior year's average sales price of aggregates. This segment generated $6.8 million in mining royalty payments in the first six months of 2025.

Here's a quick look at some key figures related to these channels as of 2025 data points:

The operational reach and financial performance across these channels can be summarized by segment:

• Direct In-House Leasing: Manages stabilized assets and new developments, targeting a doubling of Industrial NOI over five years.
• Third-Party Brokers: Used for industrial leasing, supplemented by the October 2025 acquisition of the Altman Logistics development platform.
• Online/On-Site Leasing: Drives multifamily occupancy, which stood at 94% for apartments in Q1 2025.
• Investor Relations: Utilizes the investor website and SEC filings; hosted a conference call on November 6, 2025, for Q3 results.
• Mining Royalty Contracts: Based on per-ton royalties across 14 aggregate quarries.

The company's overall market capitalization stood around $443.8M as of early December 2025. Finance: draft 13-week cash view by Friday.

FRP Holdings, Inc. (FRPH) - Canvas Business Model: Customer Segments

You're looking at the core groups that keep FRP Holdings, Inc. (FRPH) running, and honestly, the picture in late 2025 is one of distinct, specialized customer bases across its four operating segments. It's not a one-size-fits-all model; each segment serves a very different type of client or stakeholder.

For the Large-scale logistics and distribution companies (Industrial/Commercial tenants), the focus is on high-quality warehouse space, primarily in Maryland. This group is currently navigating some turbulence, as evidenced by the Q3 2025 results showing a 25% drop in Net Operating Income (NOI) for the segment. This segment holds 10 buildings totaling nearly 810,000 square feet. Occupancy was a key focus point, reported at 48.6% including the new Chelsea warehouse, or 72.4% excluding it, down from 95.6% the prior year. Management is clearly prioritizing lease quality over immediate occupancy, framing 2025 as a foundational year for disciplined leasing.

The Major aggregate and construction materials companies (Mining Royalty lessees) are the bedrock of stable income, leasing the company's land in Florida, Georgia, and Virginia. This group delivered strong top-line performance, with Mining Royalty revenues rising 15% year-over-year in Q3 2025. The segment's Q2 2025 NOI jumped 21% to $3.67 million. This growth was driven by both volume and price, with royalty tons up 6.5% and revenue per ton up about ~5% in Q3. These lessees, including major names like Vulcan Materials and Martin Marietta, provide the crucial, less volatile income stream.

For the Urban and suburban renters in high-growth markets (Multifamily residents), FRP Holdings manages properties through joint ventures, mainly in Washington, D.C. and Greenville, South Carolina. This segment showed modest resilience, with Q2 2025 pro forma NOI growing 1% to $4.74 million. The portfolio includes 1,827 apartments and over 125,000 square feet of retail space. At one point in Q2 2025, the average apartment occupancy reached 94.1%. However, Q3 saw a slight dip, with FRP's share of NOI down 3.2% year-over-year due to higher operating costs and uncollectible revenue at Maren.

The Institutional and private real estate development partners (Joint Ventures) are critical for future growth, especially in the industrial sector following the Altman Logistics acquisition. This customer group is less about immediate rent and more about shared upside. The results show improvement here, with equity losses from unconsolidated JVs improving by $0.61 million in Q3 2025. The strategic catalyst is the development pipeline, which is set to add over 1.8 million square feet of industrial product, with projects in Florida expected to generate around $9 million in annual NOI when stabilized, with FRP's share just over $8 million.

Finally, the Public equity investors seeking real estate exposure (FRPH shareholders) are a segment that values the underlying asset value and cash flow stability. As of late 2025, the Market Cap stood at $442.33M. An internal assessment from Q2 2025 suggested a potential undervaluation, estimating the per-share value between $36.27 and $40.96, based on 19,030,474 shares outstanding. Total revenue for the trailing twelve months ending Q3 2025 was $33.05M, up 5.21% year-over-year.

Here's a quick look at how the operating segments stacked up in recent quarters:

The diversification across these groups is clear, but the near-term focus for FRP Holdings, Inc. is definitely on stabilizing the Industrial/Commercial tenant base and capitalizing on the development pipeline funded by partners.

• Total TTM Revenue (ending Q3 2025): $33.05M.
• Pro rata share of NOI (Q3 2025): Decreased 16% year-over-year to $9.5 million.
• Adjusted net income (Q3 2025, ex-acquisition expenses): Up 21% over last year's third quarter.
• Industrial/Commercial Square Footage: Nearly 810,000 square feet.
• Multifamily Units: 1,827 apartments.

FRP Holdings, Inc. (FRPH) - Canvas Business Model: Cost Structure

You're looking at the expenses that keep FRP Holdings, Inc. running, which is a mix of building new things, running existing properties, and paying for the money you borrow. It's not just one bucket; it's several distinct cost centers that drive the bottom line.

Development and construction costs for new industrial and multifamily projects represent a significant outlay, as FRP Holdings, Inc. continues to build out its pipeline. These costs are tied up in projects until they stabilize and start generating income. For instance, the multifamily joint venture known as Woven in Greenville, South Carolina, has total project costs estimated at $142 million. On the land development side, the Aberdeen Overlook residential project has seen $31.1 million committed, with $27.0 million drawn to date.

Here's a look at some of the capital committed to the development pipeline as of the second quarter of 2025:

Property operating expenses, including taxes and maintenance, hit the existing portfolio. In the third quarter of 2025, the consolidated portion of the Multifamily segment saw its operating profit decrease by $404,000 year-over-year, directly because of higher operating expenses, property taxes, and uncollectible revenue at The Maren property. Management noted that higher operating costs and property taxes specifically impacted the Multifamily segment's pro rata NOI.

General and administrative (G&A) expenses, including executive transition costs, were a notable factor in earlier periods, which you should keep an eye on for ongoing impact. The decline in Q2 2025 combined segment profit was attributed to 'transaction related professional fees and elevated G&A tied to executive transition'. The executive succession and transition plan, which started in May 2024, caused G&A expense to increase in the first quarter of 2025 due to overlapping compensation.

Acquisition-related expenses were a major, one-time drag on Q3 2025 reported earnings. The net income for the third quarter decreased by 51%, largely due to $1.3 million of expenses related to the Altman Logistics Properties acquisition. This acquisition expense also caused the operating profit to decrease by $1,281,000.

Interest expense on construction financing and credit facilities is a carrying cost for the development pipeline. You saw evidence of this in the joint venture results, where improved results at Bryant Street and BC Realty were partly due to lower variable rate interest expense. Earlier in the year, FRP Holdings, Inc. amended its credit agreement with Wells Fargo to be at SOFR + 2.25%. In Q1 2025, interest expense decreased by $216,000 because $211,000 more interest was capitalized due to the increase in projects under development compared to the prior year.

Finance: draft 13-week cash view by Friday.

FRP Holdings, Inc. (FRPH) - Canvas Business Model: Revenue Streams

The revenue streams for FRP Holdings, Inc. (FRPH) are derived from a diversified real estate platform spanning rental properties, mining royalties, and development activities.

Multifamily rental income forms a significant part of the top line.

• Multifamily rental income (Q3 2025 consolidated revenue of $14.6 million).
• FRP's share of revenues for the Multifamily segment in Q3 2025 totaled $8.5 million.
• At the end of Q3 2025, 91% of the apartments were occupied.

Industrial and Commercial property rental income contributes through leasing and management of commercial properties, primarily warehouses in the Baltimore-Washington-Northern Virginia area.

Mining royalty payments provide a stable, commodity-linked revenue source from land holdings predominantly in Florida and Georgia.

• Mining royalty revenues rose 15% year over year in Q3 2025.
• The segment's total revenues for the quarter were $3.7 million.
• The Q3 2024 period included a nonrecurring catch-up minimum royalty payment of $1.9 million, which impacted the year-over-year NOI comparison.

Equity in earnings from unconsolidated joint ventures reflects FRP Holdings, Inc.'s non-controlling interests in various real estate partnerships.

Here's the quick math on the joint venture contribution for Q3 2025:

Potential development fees and promote income represent future revenue upside from the development-and-sell model, often realized upon project completion or sale.

• The Aberdeen Overlook residential development has had $6.0 million in interest & profits booked thus far.
• The Altman Logistics platform acquisition positions FRP Holdings, Inc. to generate fees and equity upside with targeted mid-teens-20% project Internal Rates of Return (IRRs).

Finance: draft 13-week cash view by Friday.