FRP (FRPH) investor relations material

Executive summary

• Reported a net loss of $0.3 million for Q2 2026, compared to net income of $0.6 million in Q2 2025, mainly due to higher G&A expenses, lower investment income, and lower occupancy in multifamily and industrial segments, partially offset by mining royalty growth.

• Pro rata NOI declined 3% year-over-year to $9.4 million, with declines in multifamily and industrial segments partially offset by strong mining royalty performance.

• Leasing activity and tenant engagement increased, but this has not yet translated into a significant rise in signed leases.

• Management's top priorities are leasing the Maryland industrial portfolio, stabilizing DC multifamily occupancy, and delivering active development projects on schedule.

• Integration of the Altman Logistics acquisition contributed to higher G&A expenses.

Financial highlights

• Q2 2026 total revenues were $11.1 million, up 2.1% year-over-year, with lease revenue down 5.8% and mining royalty and rents up 12.7%.

• Pro rata NOI was $9.4 million for Q2 2026 and $18.2 million for the first six months, both down year-over-year.

• Pro rata FFO for Q2 2026 was $4.1 million ($0.21/share), and YTD was $7.7 million ($0.40/share).

• G&A expenses rose by 27.8% due to Altman integration and higher personnel/legal costs.

• Cash and cash equivalents at June 30, 2026: $101.0 million; outstanding debt: $214.6 million.

Outlook and guidance

• Near-term FFO will be impacted by lease-up timing, elevated platform costs, and higher interest expense.

• Management expects continued focus on leasing and occupancy stabilization, with high engagement from potential tenants but no significant new leases signed in Q2.

• Development pipeline remains active, with several projects reaching substantial completion and others expected to complete in late 2026 and 2027.

• Industrial portfolio expected to grow from 800,000 sq ft at end of 2025 to 2.1 million sq ft as pipeline delivers through Q1 2027.

• Multifamily pipeline to add 510 units by Q1 2028, increasing total units from 1,827 to 2,337.