FRP Holdings, Inc. (NASDAQ:FRPH) reported a net loss attributable to the company for the quarter ended September 30, 2026, as weaker multifamily performance, vacancies in its Maryland industrial portfolio, higher general and administrative costs and lower investment income affected results. Mining royalty revenue provided an offset, increasing 10% compared with Q3 2025.
#Third-quarter financial results
FRP Holdings reported a net loss attributable to the company of $(165,000), or $(0.01) per share, compared with net income of $662,000, or $0.03 per share, in Q3 2025.
Pro rata net operating income declined 5% to $9.0 million from $9.5 million. Total revenues were $11.0 million, an increase of 1.7%, supported by higher mining royalty revenue and $49,000 of joint venture management fee revenue from the Altman platform. The increase partly offset a 3% decline in lease revenue.
General and administrative expenses increased $1,007,000 compared with Q3 2025, reflecting higher personnel costs, legal fees and integration expenses following the Altman acquisition. The increase was partly offset by $365,000 of higher labor capitalization. Investment income decreased $1,018,000, including $761,000 of lower interest income on cash balances and $257,000 of lower lending venture income as outstanding loan balances declined.
#Multifamily performance
The Multifamily segment recorded pro rata NOI of $4.0 million, a decrease of 12% from Q3 2025. Average occupancy was 93.0% across 1,827 units. FRP Holdings attributed the lower NOI to increased concessions and operating expenses, along with weaker performance at its Washington, DC properties.
Bryant Street’s NOI decreased $273,000, with occupancy declining to 91.0%. Dock 79’s NOI decreased $121,000 despite occupancy improving to 95.0%. The Maren’s NOI decreased $71,000, while The Verge’s NOI decreased $49,000. Average occupancy at the Greenville assets remained above 95%.
Renewal rate increases averaged 2.5% in the company’s Washington, DC assets and 4.5% in its Greenville assets.
#Industrial leasing remains a near-term focus
NOI from the Industrial and Commercial segment was $651,000, a decrease of 28% compared with Q3 2025. The company cited the expiration of the former Vulcan land lease at 21st Street and vacancies in its Maryland properties as primary factors.
Average occupancy excluding Chelsea was 71.4% during the quarter, compared with 72.4% a year earlier. Occupancy in the nine existing in-service buildings was 74.3% at quarter-end after a new tenant was added.
FRP Holdings completed 126,682 square feet of industrial leasing activity during the quarter. This included 61,065 square feet of new leases, 59,828 square feet of renewals and a 5,789-square-foot three-month extension. The company said leasing approximately 399,000 square feet of available space in its Maryland portfolio, including 13,710 square feet of office space, remains a primary near-term opportunity to increase NOI.
#Mining royalties increase
Mining Royalty segment NOI increased 10% year-over-year to $4.1 million. Mining royalty revenue increased 10%, supported by a 6.9% increase in volume and a 3.0% increase in revenue per ton.
#Development pipeline and forward estimates
FRP Holdings sold 23 lots through its Harford County residential lending venture during the quarter, compared with 20 lot sales in Q3 2025. The company said 271 of the 344 lots had been sold and that $7.8 million of interest and profit had been booked to date.
The company said Lakeland and Davie are expected to be substantially complete in the fourth quarter of 2026, with Camp Lake expected to follow in the first quarter of 2027. FRP Holdings also said interest expense, property operating costs previously capitalized during construction and depreciation will weigh on reported earnings until rental income increases as the assets progress through completion and lease-up.
John Baker III, chief executive officer of FRP Holdings, said the company estimates Chelsea, Lakeland, Davie and Camp Lake could generate approximately $12 million in annual recurring pro rata NOI and $7 million in annual FFO at stabilization. Baker said the timing will depend on leasing and ultimately rent commencement.
FRP Holdings said Cranberry Business Park could contribute approximately $1 million in additional annual recurring NOI and FFO at full occupancy, based on the company’s estimate. The company’s three merchant build projects in Delray, Florida, and Hamilton and Parsippany, New Jersey, total 510,307 square feet and are in the early stages of lease-up. FRP Holdings said it intends to monetize those investments following stabilization and recycle the proceeds into future industrial opportunities.
#Nine-month results
For the nine months ended September 30, 2026, FRP Holdings reported a net loss of $1,111,000, or $(0.06) per share, compared with net income of $2,950,000, or $0.16 per share, in the first nine months of 2025.
Pro rata NOI decreased 5% to $27.3 million from $28.6 million. Total revenues increased 2.2% to $32.6 million, helped by a 12% increase in mining royalty revenue and $407,000 of joint venture management fee revenue from the Altman platform, which partly offset a 5% decline in lease revenue.
Multifamily average occupancy was 92.8%, compared with 93.7% in the first nine months of the previous year. Multifamily pro rata NOI decreased 11% to $12.4 million. Industrial and Commercial NOI decreased 34% to $2,025,000, while Mining Royalty NOI increased 12% to $12.0 million.
#Conference call
FRP Holdings said it will host a conference call on Thursday, November 5, 2026, at 9:00 a.m. (ET) to discuss the results. The company said audio replay will be available until November 5, 2027, and that a webcast replay will also be posted on its investor relations page.
#Key Takeaways
- FRP Holdings reported a Q3 2026 net loss of $(165,000), or $(0.01) per share.
- Third-quarter pro rata NOI decreased 5% to $9.0 million from $9.5 million.
- Multifamily NOI decreased 12%, with average occupancy of 93.0% across 1,827 units.
- Industrial leasing activity totalled 126,682 square feet, while Maryland vacancies remained a near-term issue.
- Mining royalty revenue increased 10%, with higher volume and revenue per ton.
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