FRP Holdings, Inc. (FRPH): PESTLE Analysis [Nov-2025 Updated]

If you're tracking FRP Holdings, Inc. (FRPH), the near-term story boils down to two things: federal infrastructure dollars driving aggregate demand and the 5.50% Federal Funds Rate squeezing development margins. We've mapped out the full PESTLE landscape-from the legal hurdles of Mine Safety and Health Administration (MSHA) compliance to the sociological shift toward mixed-use Sun Belt properties-to give you a clear, actionable view of the risks and growth opportunities for their real estate and mining segments in 2025. Dive in to see exactly where the macro-environment presents the biggest challenges and the best chances for FRPH.

FRP Holdings, Inc. (FRPH) - PESTLE Analysis: Political factors

Federal Infrastructure Spending Drives Aggregate Demand

You need to know that massive federal outlays, despite recent political turbulence, are still creating a demand floor under FRP Holdings, Inc.'s core business segments. The Infrastructure Investment and Jobs Act (IIJA) allocated a total of $1.2 trillion over eight years, with a significant portion, about $110 billion, earmarked for roads and bridges alone.

This spending directly impacts FRP's Mining Royalty Lands segment, which owns approximately 16,648 acres of land leased for mining in states like Florida and Georgia. More road projects mean higher demand for construction aggregates, which is why the segment's pro rata Net Operating Income (NOI) rose 20% year-to-date in Q2 2025 to $6.949 million. That's a clear line from federal policy to your bottom line.

Still, a new Executive Order in January 2025 directed federal agencies to immediately pause the disbursement of IIJA funds for review, creating a near-term risk. This political action injects uncertainty into the construction pipeline and could lead to project delays, potentially slowing the growth of royalty tonnage in late 2025 and 2026. The new administration also revoked the Justice40 initiative, shifting the focus of how the funding is prioritized.

Local Government Zoning and Permitting Timelines

The speed of your development pipeline is often a function of local politics, and in FRP's key operating state of Florida, the regulatory landscape has changed dramatically. New legislation, Senate Bill 1080, effective October 1, 2025, imposes strict, enforceable deadlines on local governments for development orders and permits.

This is defintely a game-changer for projects like the 375,000+ square feet of industrial development pending permits in Lake County, Florida. The law requires local governments to approve, approve with conditions, or deny an application within 120 days for non-hearing matters, or 180 days if a public hearing is required, after the application is deemed complete. If they miss the deadline, the local government must issue a refund, giving you a real financial remedy for delays.

Here's the quick math on Florida's new permitting clock:

• Local government must confirm application receipt within 5 business days.
• Completeness determination must be made within 30 days.
• Final decision deadline is 120-180 days after the application is deemed complete.

Potential Changes in Corporate Tax Rates

The most important near-term political win for real estate developers is the stability in tax deductions, not just the corporate rate itself. The 'One Big Beautiful Bill Act (OBBBA),' signed in July 2025, permanently restored two critical provisions for companies like FRP Holdings, Inc.

This is a huge boost to after-tax cash flows for new developments. The corporate tax rate remains at 21%, but the real benefit is the permanent restoration of 100% bonus depreciation for qualifying property. Without this law, the bonus depreciation was scheduled to phase down to 40% for 2025, which would have significantly increased the taxable income on the new industrial projects in Lakeland and Davie, Florida.

The new law also permanently restores the more favorable EBITDA-based business interest expense limitation (Section 163(j)), which is crucial for a company deploying $71 million in equity capital investments this year.

Regulatory Stability in Key Operating States

FRP operates in high-growth, high-regulation markets like Florida and the Baltimore-Washington-Northern Virginia area (Maryland/D.C.), so regulatory stability is less about a static environment and more about predictable change.

In Florida, the new permitting law increases predictability on timelines but introduces new compliance risks and the potential for litigation over the initial 'completeness' determination. In Maryland, new legislation effective July 1, 2025, requires local jurisdictions to enact ordinances allowing for the construction of Accessory Dwelling Units (ADUs) on single-family properties by October 2026. This push for housing supply, while not directly impacting FRP's current industrial and large multifamily portfolio, signals a political environment actively trying to streamline residential development, which could eventually benefit the company's land holdings like the 110-acre Aberdeen Overlook residential development.

What this estimate hides is the local-level friction; state laws set the ceiling, but local governments still control the execution. The table below outlines the key political-regulatory factors impacting FRP's development segments.

Next Step: Development and Finance teams should model the impact of the 100% bonus depreciation on the Q4 2025 tax provision and update the Internal Rate of Return (IRR) projections for the Florida industrial pipeline accordingly.

FRP Holdings, Inc. (FRPH) - PESTLE Analysis: Economic factors

The economic landscape in late 2025 presents a mixed bag for FRP Holdings, Inc., pushing up development costs while maintaining a decent, though slowing, demand for its core real estate assets. Your primary challenge is navigating the cost of capital and construction inflation, but the steady job market still supports rental income.

Sustained high interest rates (e.g., the Federal Funds Rate near 3.75%-4.00%) increase borrowing costs for new projects.

While the Federal Reserve has started to cut rates from their peak, the cost of borrowing remains a significant headwind for new real estate development. The Federal Funds Rate target range currently sits between 3.75%-4.00% as of October 2025, following two cuts earlier in the year. To be fair, this is a relief from the multi-decade highs, but it's still far from the near-zero rates of the past decade. This higher cost of capital directly impacts the viability of FRP Holdings, Inc.'s development pipeline, especially for its Multifamily and Industrial segments.

Here's the quick math: higher rates mean a lower Net Present Value (NPV) for future cash flows, making it harder for new projects to clear the internal hurdle rate (the minimum return a company expects to earn). Management's focus on disciplined leasing over occupancy, as noted in the Q3 2025 results, shows they are prioritizing long-term value over short-term revenue, a smart move in a high-rate environment. The market is projecting the Fed Funds Rate could trend toward 3.50%-3.75% by the end of 2025, which would offer a slight easing, but new construction loans still average higher, around 7.5% for many commercial projects.

Inflation in construction materials (e.g., steel, lumber) compresses development margins.

The cost of materials continues to squeeze development margins, even as global inflation moderates. Construction cost growth is forecasted to be between 5% and 7% for 2025, a substantial jump that eats into the profit margins of new builds. This is a direct threat to the profitability of FRP Holdings, Inc.'s development segment.

Specific material price volatility remains a pain point. For example, the Producer Price Index (PPI) for Lumber/Plywood was up +4.9% year-to-date in 2025, and Steel Mill Products saw an increase of +3.7% over the same period. These increases make fixed-price contracts risky and force developers to constantly revise their budgets. This is defintely a factor in the company's mixed Q3 2025 results, where underlying strength in adjusted net income (up 21% to $1.64 million) was achieved despite these cost pressures.

The following table illustrates the material cost pressure FRP Holdings, Inc. is facing in its development pipeline:

Strong US job growth maintains demand for commercial and residential rental properties.

Despite the economic slowdown in some sectors, the US labor market remains a pillar of support for FRP Holdings, Inc.'s rental properties. Strong job creation translates directly into demand for both Multifamily and Industrial/Commercial space. The national unemployment rate in September 2025 was 4.4%, which, while slightly up from earlier in the year, is still indicative of a healthy labor market that supports rent growth and low vacancy.

The market for rental properties is still solid, but there are pockets of weakness. The Multifamily segment saw a 3% decrease in pro rata Net Operating Income (NOI) in Q3 2025, primarily due to higher uncollectible revenue and operating costs at the Maren property. Meanwhile, the Industrial and Commercial segment's NOI fell 25%, a stark drop driven by vacancies from an eviction and lease expirations, showing that not all commercial markets are equally strong. The overall employment picture remains positive, with nonfarm payrolls adding 119,000 jobs in September 2025, which is a good sign for future occupancy rates.

Fluctuation in the price of crude oil impacts transportation costs for aggregate delivery.

FRP Holdings, Inc.'s Mining and Royalty Lands segment, which generates revenue from aggregate delivery, is sensitive to energy prices. Crude oil price volatility translates directly into diesel costs, which are a major component of aggregate transportation expenses. The good news is that crude oil prices have been relatively stable, with Brent crude averaging between $67/b and $70/b in Q3 2025, and forecasted to average around $66/b by the end of the year.

However, the cost of refined products, like diesel, has seen sharp spikes. Diesel crack spreads (the refiner's margin over crude oil) reached a high of 85 cents per gallon in July 2025 before easing to 60 cents/gal later in the quarter. This volatility is a planning headache for your royalty tenants. On the positive side, the Mining royalty revenues for FRP Holdings, Inc. rose 15% year-over-year in Q3 2025, driven by a 6.5% increase in royalty tons and a ~5% rise in revenue per ton, suggesting that the underlying demand for aggregates remains robust enough to absorb the fluctuating delivery costs.

• Monitor diesel crack spreads: They are a better short-term indicator of transportation cost pressure than crude oil alone.
• Lock in fuel hedges: Help royalty tenants manage the volatility of delivery costs to protect their margins and your royalty stream.

FRP Holdings, Inc. (FRPH) - PESTLE Analysis: Social factors

Post-pandemic migration patterns continue to shift demand to Sun Belt and suburban markets.

You can't ignore the migration patterns; they are fundamentally reshaping real estate demand, and FRP Holdings, Inc. is positioned right in the sweet spot. The surge to the Sun Belt, particularly Florida and the Southeast, remains the dominant social trend in 2025. Between July 2020 and July 2024, the South gained a staggering 2,685,000 net domestic migrants, a clear signal that people are trading high-cost, dense metros for more space and value.

Florida is a top destination, which is excellent news for a Florida-based company like FRP Holdings. Fort Myers, for instance, saw a 6.73% population surge from net migration between 2021 and 2022 alone. This influx creates immediate, sustained demand for housing and industrial logistics space in the suburban and exurban markets that FRP Holdings targets. They are defintely putting capital to work where the people are moving.

The company's development pipeline reflects this strategic alignment:

• Florida: Industrial projects in Lakeland, Davie, and Minneola, totaling over 760,000 sq ft, with construction starting in Q2/Q3 2025.
• Southeast: Multifamily and mixed-use projects in Estero, FL, and Greenville, SC, which are key secondary Sun Belt markets.

Increased preference for mixed-use developments that blend residential, retail, and office spaces.

The modern resident wants to live, work, and shop in the same place, and this preference for mixed-use developments is a major driver of value creation. It's about creating a 'sense of place'-a crucial factor for attracting and retaining tenants in a competitive market. FRP Holdings is actively pursuing this model, which mitigates risk by diversifying income streams within a single project.

For example, the Estero, FL, project is a 46-acre master-planned community that is far more than just apartments. It includes 596 multifamily units, 60,000 sq ft of commercial space, 20,000 sq ft of office space, and a 190-key boutique hotel, with construction slated to start in 2025. A project like this is less susceptible to a downturn in any single asset class. The 'Woven' project in Greenville, SC, is another example, blending 214 multifamily units with 14,000 retail sq ft.

Demographic shifts, like the aging population, influence the design and location of new residential units.

We are seeing two massive demographic waves hitting real estate simultaneously: Millennials (the largest generation) seeking family homes, and Baby Boomers (the second largest) aging into senior living. Over the next decade, the 30-50 and 70+ age groups will lead population growth. This dual-demand profile is influencing FRP Holdings' residential strategy.

While the company is not heavily in the senior living space, their Aberdeen Overlook residential development, with 344 residential lots (222 townhome lots and 122 single-family lots), directly targets the Millennial and Gen X cohorts who are aging out of apartments and seeking larger, suburban homes. This shift is also why the demand for single-family rentals is so strong. The table below shows how the company's development pipeline is aligning with these generational demands in 2025:

Remote work trends create uncertainty in the long-term occupancy rates of traditional office buildings.

The hybrid work model is now the standard, not a temporary fix; about 66% of US companies offer some form of flexibility as of September 2025. This is the single biggest headwind for traditional office assets, leading to a national office vacancy rate of 18.7% in August 2025.

For FRP Holdings, this uncertainty is visible in their Industrial and Commercial segment, which saw a decrease in Net Operating Income (NOI) in Q2 2025 due to vacancies and lease expirations. The market is bifurcating: Class A properties still command a premium, with an average listing rate of $43.13 per square foot for high-end buildings, while older, lower-grade properties struggle. The good news is that the company's office exposure is relatively limited and often integrated into resilient mixed-use projects, like the 20,000 sq ft of office space planned for the Estero, FL, development. This integration into a live-work-play environment makes that office space much more defensible against the broader market slump.

The key action here is simple: avoid standalone, non-Class A office buildings and focus on high-quality, flexible space within mixed-use hubs. The market is demanding quality over quantity now.

FRP Holdings, Inc. (FRPH) - PESTLE Analysis: Technological factors

Adoption of Building Information Modeling (BIM) improves efficiency and reduces waste in construction.

The use of Building Information Modeling (BIM) is no longer optional; it is the defintely the standard for large-scale development, which is critical for FRP Holdings, Inc.'s pipeline of projects. This technology creates a data-rich, three-dimensional digital twin of a building, moving project management from file-based to database-driven. By 2025, over 80% of large US construction firms are using BIM on some projects, making it nearly universal in commercial construction.

For a developer like FRP Holdings, Inc., adopting advanced BIM workflows is a direct path to higher margins. Firms that have integrated AI-driven BIM platforms are reporting productivity gains of up to 25% and a significant reduction in costly rework by automating clash detection and quantity takeoffs. The global BIM market itself is projected to reach approximately $9.93 billion in 2025, underscoring its foundational role in the industry.

Increased use of autonomous vehicles and drones for surveying and managing aggregate mining sites.

The Mining segment, which contributes significantly to FRP Holdings, Inc.'s asset value (estimated between $242.2 million and $266.4 million in 2025), is being rapidly transformed by automation. Autonomous vehicles and drones are moving from pilot programs to core operational tools. By 2025, industry forecasts suggest that more than 60% of new mining equipment purchases will include autonomous or automated capabilities, which is a massive capital shift.

The primary opportunity here is efficiency and safety. AI-powered mining vehicles can increase operational efficiency by up to 20% compared to traditional machinery, primarily through optimized haul routes and 24/7 operation. Drones are now standard for high-precision surveying and volumetric measurements of aggregate stockpiles, cutting down on manual labor and providing real-time inventory data. The global market for autonomous mining drones alone is projected to reach $5.4 billion in 2025, indicating the scale of investment in this area.

Smart building technologies (e.g., energy management systems) are now expected in new commercial leases.

In the commercial and multifamily real estate space, smart building technology is a non-negotiable expectation that directly impacts Net Operating Income (NOI). Tenants, particularly large corporate occupiers, are demanding features like advanced energy management systems, automated lighting, and air quality monitoring to meet their own Environmental, Social, and Governance (ESG) goals.

The financial incentive is clear: properties equipped with advanced automation systems can command a 15-20% higher rental premium. Plus, smart technologies that enhance occupant comfort and air quality have been shown to boost lease renewals by 14%, which is a powerful defense against the kind of tenant churn that contributed to the Industrial and Commercial segment's YTD NOI decrease to $2,149,000 in Q2 2025.

• Integrate IoT sensors for real-time energy tracking.
• Implement predictive maintenance to reduce costly downtime.
• Use centralized Building Management Systems (BMS) for efficiency.

Data analytics helps optimize rental pricing strategies and tenant retention efforts.

The days of setting rental rates based on a static spreadsheet are over. Today, predictive analytics and machine learning are essential for dynamic pricing (adjusting rent based on real-time demand, seasonality, and competitor rates) and proactive tenant retention. You need to know which tenants are likely to churn before they even send a notice.

For the multifamily and commercial portfolio, leveraging this data is a direct revenue lever. Predictive analytics for rental pricing has been shown to increase rental income by up to 15% and can cut vacancy rates by as much as 60% in competitive markets. For example, some large real estate investment trusts (REITs) are using AI to adjust multifamily rents daily, which has resulted in a 5-7% improvement in revenue per property.

Here is the quick math on the impact of these technologies on core business segments:

What this estimate hides is the initial capital expenditure and the skill gap for implementing these systems, but the long-term return on investment (ROI) makes the transition mandatory.

FRP Holdings, Inc. (FRPH) - PESTLE Analysis: Legal factors

You can't talk about a diversified real estate and land holding company like FRP Holdings, Inc. without talking about legal risk. The regulatory landscape for real estate development and mining is a constant, expensive headwind, but also one that creates a moat for those who manage it well. For FRPH in 2025, the legal environment is a mixed bag: a positive regulatory shift in Florida's commercial tax structure, but a significant compliance cost looming for the aggregate business.

Evolving state-level landlord-tenant laws affect lease agreements and operating expenses for rental properties.

The patchwork of state and local housing laws is always shifting, directly impacting the Multifamily and Industrial/Commercial segments. In Florida, a key market for FRPH, the 2025 legislative session brought a decisive move toward state-level uniformity, which is a win for large operators like you. Specifically, a state preemption law, effective July 1, 2024, essentially nullified local ordinances that attempted to impose tenant protections beyond state statutes, effectively banning local rent control measures. This removes a major, unpredictable risk from your rent-setting strategy in markets like Orlando and Miami-Dade County.

However, compliance still requires constant vigilance. For instance, the 30-day notice period for terminating a month-to-month tenancy (up from 15 days) in Florida, effective January 1, 2024, means your property management teams need to adjust their lease renewal and termination timelines to avoid legal challenges. Plus, the new Florida Anti-Squatting Law (HB 621), effective July 1, 2024, is a significant operational improvement, allowing commercial property owners to bypass the lengthy traditional eviction process by requesting direct sheriff intervention to remove unauthorized occupants.

Here's the quick math on regulatory impact:

• Florida Business Rent Tax (BRT): The total elimination of the BRT in 2025 is a massive operational cost saving for the Industrial/Commercial segment, directly boosting net operating income (NOI).
• Virginia Reforms: Amendments effective July 1, 2025, relaxed staff licensing for certain administrative leasing tasks, which can slightly reduce administrative overhead.
• Compliance Action: Your legal and property management teams must defintely update all lease agreements to reflect the new state-level electronic notice option (HB 615, effective July 1, 2025) and the extended notice periods.

Strict adherence to Mine Safety and Health Administration (MSHA) regulations is mandatory for aggregate operations.

The Mining Royalty Lands Segment, which leases over 16,500 acres with over 500 million tons of aggregate reserves, is subject to the stringent Federal Mine Safety and Health Act of 1977. The most significant legal factor in 2025 is the new MSHA Respirable Crystalline Silica rule, which halves the permissible exposure limit (PEL) for silica dust.

While the final compliance deadline for Metal/Nonmetal (MNM) mines, which includes aggregates, is April 8, 2026, the capital planning and engineering controls must be implemented in the 2025 fiscal year. This translates to substantial, though indirect, compliance costs for your lessees, which can impact their royalty payments or their long-term operational viability. The risk is not direct fines to FRPH, but a potential disruption to the lessees' operations.

The financial risk from non-compliance remains high. For 2025, the maximum inflation-adjusted civil penalty for a single failure-to-abate violation (30 CFR 100.3(a)) is set at $90,649. This is a serious number, and it forces your lessees to prioritize MSHA compliance spending.

Compliance with the Americans with Disabilities Act (ADA) is an ongoing requirement for all new and existing commercial properties.

ADA Title III compliance is an evergreen liability for the Industrial/Commercial and Multifamily segments, especially with new construction and property renovations. The 2025 environment is seeing a continued emphasis on tighter standards for accessible design, particularly concerning the 'path of travel' and parking in commercial facilities.

For a company with a development pipeline of over 5 million square feet, ensuring that new projects are designed to the absolute latest ADA Standards for Accessible Design (ADAS) is cheaper than retrofitting later. The cost of a lawsuit is steep: civil penalties for non-compliance can reach up to $75,000 for the first violation and $150,000 for subsequent violations, plus the cost of remediation and legal defense. Simply put, building it right the first time is the only way to go.

Environmental permitting for new mining sites is a complex, multi-year legal process.

The process of obtaining environmental permits and zoning entitlements for new aggregate sites is a significant legal hurdle that dictates the long-term value of your royalty land holdings. Historically, a major mining permit can take anywhere from 7 to 10 years in the United States, which is a massive drag on capital deployment and a source of regulatory uncertainty.

While the Trump administration's 2025 executive order to fast-track permitting for critical minerals (FAST-41 status) is a positive sign for the broader mining sector, FRPH's aggregate operations, which focus on construction materials, may not directly benefit from this critical mineral focus. However, the overall regulatory climate is shifting toward streamlining, which could still shorten timelines for other permits. For example, a previous FRPH project in Lake Louisa, Florida, took nearly two years from county approval (November 2017) to permit issuance (July 2019), showing that even a single site can involve a multi-year legal and administrative commitment before a shovel hits the dirt.

This is a long-term legal risk you manage by maintaining a deep bench of environmental counsel and proactively engaging with local and state regulators years before development begins. You're playing the long game here.

FRP Holdings, Inc. (FRPH) - PESTLE Analysis: Environmental factors

Increased focus on Environmental, Social, and Governance (ESG) reporting by institutional investors like BlackRock.

You need to understand that the pressure from institutional capital on environmental performance is real, even if the language shifts. While BlackRock CEO Larry Fink has publicly moved away from the term 'ESG' in his 2025 Chairman's Letter due to political headwinds, the core demand for climate risk disclosure and resilience remains. BlackRock, managing over $11.6 trillion in assets, is now prioritizing 'energy pragmatism' and 'climate resilience,' which means they are still scrutinizing real estate developers like FRP Holdings, Inc. on physical climate risk and energy efficiency. FRP Holdings, Inc. has an official ESG commitment, stating new properties are designed to advance energy efficiency and foster environmental protection, but the latest publicly available report is from 2022.

The gap here is quantifiable data. Investors are using tools like the iShares Global Real Estate Environmental Tilt UCITS ETF, which specifically favors companies with better green building certifications and reduced carbon intensity. FRP Holdings, Inc. must move beyond a general statement to publish up-to-date, verifiable 2025 metrics to satisfy this evolving institutional demand. It's not about the label anymore; it's about the verifiable numbers.

Stricter stormwater management and erosion control regulations for all construction sites.

The regulatory environment for stormwater management in Florida, a key market for FRP Holdings, Inc., is tightening significantly in 2025, driven by the Statewide Stormwater Rule (SB 7040). This isn't just paperwork; it mandates expensive, long-term changes to how you design and operate development sites. The Florida Department of Environmental Protection (FDEP) is enforcing new requirements, especially around nutrient runoff, which is critical for projects near sensitive water bodies.

The most immediate and costly compliance deadlines for FRP Holdings, Inc.'s Development Segment are:

• All permits issued after June 28, 2024, require a Qualified Inspector for all site inspections conducted after June 28, 2025.
• New Stormwater Quality Nutrient Permitting Requirements take effect for all applications deemed complete after December 28, 2025.

This means every project in the 1.3 million square feet of new industrial space FRP Holdings, Inc. acquired in Florida in October 2025 must be designed to meet these new, stricter nutrient performance criteria, or risk significant permitting delays. Compliance costs will rise, but non-compliance means project delays, and a delayed project is a dead project.

Pressure to reduce the carbon footprint of construction materials, favoring sustainable sourcing.

The focus in 2025 has shifted to embodied carbon, which is the total carbon dioxide released throughout a building material's lifecycle, from extraction to disposal. This is a direct cost pressure on all new industrial and multifamily construction in FRP Holdings, Inc.'s pipeline. Developers are now expected to use Life Cycle Assessments (LCAs) to inform procurement, essentially setting a 'carbon budget' for materials.

FRP Holdings, Inc. has a strategic opportunity to gain a competitive edge by adopting low-carbon alternatives, which are now commercially viable:

• Low-Carbon Concrete: New formulations, like Limestone-calcined clay cement (LC³), can cut concrete's carbon emissions by up to 40%.
• Engineered Timber: Cross-Laminated Timber (CLT) is gaining ground, offering a renewable, carbon-sequestering alternative to steel and concrete, and can reduce on-site build time by as much as 20%.
• Recycled Steel: Using recycled steel reduces the need for virgin material, minimizing environmental degradation from mining.

This is defintely a risk to the Development Segment's profit margins if they stick to traditional, high-carbon materials, but a clear opportunity for cost-effective, faster construction if they switch.

Climate change risks, specifically sea-level rise, pose long-term physical risks to coastal properties in Florida.

For a Florida-centric developer like FRP Holdings, Inc., sea-level rise is not a distant problem; it is a financial risk to the long-term asset value of its portfolio. NOAA projects a sea-level rise of 10-12 inches by 2050, which translates to a projected 61% increase in flood damage costs over the next 30 years across Florida.

FRP Holdings, Inc.'s recent acquisition of 1.3 million square feet of industrial space includes key development sites in South Florida areas like Davie and Broward County. These low-lying coastal areas are acutely exposed. McKinsey & Company has projected that Florida coastal home values subject to flood risk could lose 5% to 15% of their value by 2030. While FRP Holdings, Inc. focuses on commercial/industrial, the principle of asset devaluation due to chronic flooding risk is the same.

The exposure is clear, and the market will eventually price this in. Here's a look at the risk-adjusted investment horizon:

The strategic action is to proactively engineer resilience into the $153 million of projects planned beyond 2025, using elevated foundations and flood-resistant materials, making the assets 'future-proof' against these inevitable physical risks.