FRP Holdings Industrial Leasing Rebounds After a Loss

The Tip Desk · November 11, 2026 · 3 min read

The company signed 126,682 square feet of industrial leases, its most active quarter since the second quarter of 2021, as mining royalty NOI rose 10% to $4.1 million.

FRP Holdings, Inc. (FRPH), a full-service real estate investment and development company, reported a net loss of $165,000, or $0.01 a share, for the quarter ended September 30, 2026, versus net income of $662,000, or $0.03 a share, a year earlier.

Total revenues were $11.0 million, up 1.7%, as a 10% increase in mining royalty revenue and $49,000 of joint venture management fee revenue from the Altman platform helped offset a 3% decline in lease revenue. Pro rata NOI was down 5% to $9.0 million versus $9.5 million in the third quarter of 2025, with the decline driven by lower Multifamily, Industrial and Commercial, and Development NOI, partially offset by higher Mining Royalty NOI.

Mining royalty NOI rose 10% year-over-year to $4.1 million, with volume up 6.9% and revenue per ton up 3.0%. That followed 12% NOI growth in the second quarter and 15% in the first quarter. Mining royalty and rent revenue was $4.04 million.

Multifamily pro rata NOI fell 12% year-over-year to $4.0 million, with average occupancy 93.0% across 1,827 units. The company said higher concessions and operating expenses, together with weaker performance at Washington, DC properties, reduced NOI. Bryant Street’s NOI was down $273,000, accounting for over 50% of the multifamily year-over-year decline, with occupancy down 240 basis points to 91.0%. Dock 79’s NOI was down $121,000 despite occupancy improving 120 basis points to 95.0%. The Maren’s NOI was down $71,000 and The Verge’s NOI was down $49,000. Greenville assets remained steady with average occupancy above 95%.

Industrial and Commercial NOI declined 28% year-over-year to $651,000, including the $183,000 expiration of the former Vulcan land lease at 21st Street and vacancies in Maryland assets. Average occupancy excluding Chelsea was 71.4% versus 72.4% a year earlier. Quarter-end occupancy was 74.3% after the company added a new tenant. During the quarter it signed 61,065 square feet of new leases, 59,828 square feet of renewals, and a 5,789-square-foot three-month extension, totaling 126,682 square feet, which the company said was its most active quarter since the second quarter of 2021 and more total leasing activity than the second quarter of 2025 through the second quarter of 2026 combined. Leasing approximately 399,000 square feet of available space in the Maryland portfolio remains a primary near-term opportunity to increase NOI.

General and administrative expenses increased $1,007,000 versus the third quarter of 2025, driven by higher personnel costs, higher legal fees and integration expenses following the Altman acquisition, partially offset by $365,000 of increased labor capitalization. Investment income decreased $1,018,000, reflecting $761,000 of lower interest income on cash balances and $257,000 of lower lending venture income as outstanding loan balances declined. Chief Executive Officer John Baker III said third-quarter results reflected continued leasing challenges in Washington, DC multifamily assets and the Maryland industrial portfolio, higher G&A following the Altman acquisition, and lower interest income as cash is deployed into development.

Industrial deliveries are advancing. The company said Lakeland and Davie warehouses are expected to be substantially complete in the fourth quarter of 2026 and Camp Lake in the first quarter of 2027. Chelsea, Lakeland, Davie and Camp Lake together represent approximately 1.0 million square feet of industrial space. At stabilization, the company estimates those four assets will generate approximately $12 million in annual recurring pro rata NOI and $7 million in annual FFO. Interest expense and property operating costs previously capitalized during construction, along with depreciation, will weigh on reported earnings until rental income increases. Cranberry Business Park vacancies, the company said, could contribute approximately $1 million in additional annual recurring NOI and FFO at full occupancy.