Key Points – FRP’s second-quarter results were broadly in line with expectations, with approximately $9.4 million in pro forma NOI, $4.1 million in FFO, or $0.21 per share, and roughly $130 million of liquidity. – Management is prioritizing industrial real estate, expecting its…
dustrial portfolio to expand to about 2.1 million square feet as development projects are completed. Leasing activity improved, but tenant decisions remain slow and Maryland occupancy fell sharply amid departures and a bankruptcy. – FRP lowered its full-year NOI outlook to approximately $36.2 million, reflecting delayed industrial lease-up and continued Washington, D.C., multifamily pressures, partly offset by stronger mining results
D.C. properties face new supply, rents on new leases about 10% below prior levels, and tenant delinquency of roughly 8%. FRP (NASDAQ:FRPH) said its second-quarter results were largely in line with management’s expectations as industrial leasing activity improved but lease execution remained uneven, while multifamily operations in Washington, D.C., continued to face supply and delinquency pressures. President and Chief Operating Officer David deVilliers III said the company generated approximately $9.4 million in pro forma net operating income, or NOI, and approximately $4.1 million in funds from operations, or FFO, equal to $0.21 per share, during the quarter.
FRP ended the period with about $130 million of liquidity, including approximately $101 million of cash. Management said it is directing most future discretionary growth capital toward industrial real estate, while continuing to operate and maximize the value of its multifamily and mining-royalty businesses. DeVilliers said the company views industrial properties serving logistics, manufacturing, distribution and service users as its most attractive long-term investment opportunity.