FRP Holdings, Inc.

Good day, everyone. Welcome to the FRP Holdings, Inc. First Quarter 2026 Conference Call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Matt McNulty, CFO of FRP Holdings. The floor is yours.

Great. Thank you. Good morning, and thank you for joining us on this call today. I am Matt McNulty, Chief Financial Officer of FRP Holdings, Inc., and with me today are John Baker II, our Chairman, John Baker III, our CEO, David DeVilliers III, our President and Chief Operating Officer, David DeVilliers Jr., our Vice Chairman, John Milton, our Executive Vice President, Mark Levy, Chief Investment Officer, and John Klopfenstein, our Chief Accounting Officer. First, let me run you through a brief disclosure regarding forward-looking statements and non-GAAP measures used by the company. As a reminder, any statements on this call which relate to the future are by their nature subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These risks and uncertainties are listed in our SEC filings. To supplement the financial results presented in accordance with generally accepted accounting principles, FRP presents certain non-GAAP financial measures within the meaning of Regulation G. The non-GAAP financial measures referenced in this call are Net Operating Income, or NOI, and Pro Rata NOI. FRP uses these non-GAAP financial measures to analyze its operations and to monitor, assess, and identify meaningful trends in our operating and financial performance. These measures are not and should not be viewed as a substitute for GAAP financial measures. To reconcile adjusted net income, net operating income, and adjusted net operating income to GAAP net income, please refer to our most recently filed 10-Q. I will now turn the call over to our President and Chief Operating Officer, David DeVilliers III, for his report on operations. David?

Thank you, Matt, and good morning, everyone. I will begin with a review of our first quarter 2026 results and then discuss our operating priorities for the balance of the year and beyond. 2025 was a year where we significantly expanded the scale and long-term earnings potential of the platform. As we move through 2026, the focus shifts towards execution. Simply put, we need to fill buildings, stabilize projects, and turned that embedded value into dependable recurring cash flow over time. For the quarter, we generated approximately 8.9 million of NOI and 3.6 million of FFO, or 19 cents per share, and ended the quarter with approximately 130 million of liquidity between cash and line availability. Late in the fourth quarter of 2025, we completed the Altman industrial acquisition for approximately 33.5 million, adding roughly 1.6 million square feet of industrial development pipeline and expanding our presence in Florida and New Jersey. Turning to commercial and industrial, the portfolio totals approximately 807,000 square feet and ended the quarter approximately 47.5% occupied compared to approximately 85% last year, primarily due to anticipated lease rollover timing, slower tenant decision cycles, and the addition of the Chelsea building. Segment NOI totaled approximately 758,000 during the quarter compared to 1,139,000 last year. We continue to believe This is more a timing issue than a demand issue. Today, we have approximately 423,000 square feet available for lease up representing roughly 3.3 million of incremental annual NOI opportunity at stabilization. Execution now comes down to leasing velocity, pricing discipline, and occupancy growth over the next several quarters. Operationally, activity feels materially different today than what we experienced in 2025. We are seeing more tours, more proposals, more tenant dialogue, and improving leasing activity across multiple markets. Through Q1, we have now signed or LOI'd approximately 53,000 square feet, representing roughly $1 million of future annualized NOI as those leases commence and convert to occupancy. We still have substantial work ahead of us, remain focused on filling our buildings, and believe the platform is moving in the right direction. Turning to mining and royalties, this segment generated approximately 3.8 million of NOI during the quarter, up 498,000, or 15% year-over-year, the second consecutive quarter of double-digit underlying growth, with both volume and pricing trending favorably. Mining continues to provide durable, high-margin cash flow with minimal incremental capital requirements. Mining royalties remain an important stabilizing component of the company's overall earnings profile and balance sheet flexibility. Moving to multifamily, The portfolio includes approximately 1,827 units across Washington, D.C. and Greenville, South Carolina. NOI totaled approximately 4.1 million during the quarter. First quarter results were below expectations, primarily due to lower occupancy and economic occupancy in our Washington, D.C. assets, higher operating costs, and some softness in ground floor retail. From a market standpoint, South Carolina remains relatively stable, with economic occupancy remaining in the low 90 percent range. Washington, D.C. remains more competitive due to continued supply pressure, particularly from Vermeer and the Stacks, which impacted occupancy and concessions across Dock 79, Marin, and Verge, with economic occupancy remaining in the high 80 percent range during the quarter. Importantly, we view this primarily as a localized supply issue rather than a broader deterioration across the multifamily platform. Development remains the company's largest long-term NOI growth opportunity. The Altman acquisition, which I mentioned earlier, was critical for two reasons. It expanded our pipeline and geographic footprint, and it gave us the management capacity to execute on it. Current pipeline represents approximately $441 million of total project costs, with expected stabilized incremental NOI of approximately $30 million over time. This opportunity represents a significant increase in NOI and earnings. Our pacing remains disciplined, and the focus is on execution, lease-up, stabilization, and converting these projects into recurring cash flow over time, and not simply grow into grow. Turning to the full-year outlook for 2026, we expect NOI to remain relatively stable in the approximately $37 million range, while lease-up timing, elevated platform costs, and higher interest expense continue to pressure near-term FFL. We expect FFO to remain pressured in the near term with meaningful improvement tied to industrial lease-up and development stabilization, both of which are underway. Importantly, 2026 GNA is expected to be approximately 15 to 16 million and reflects the investment in people, systems, and infrastructure needed to operate at scale. Balance sheet discipline remains foundational. We ended the quarter with approximately $130 million of liquidity and conservative asset level leverage. Importantly, while leverage metrics appear elevated on an EBITDA basis, asset-level leverage remains conservative and liquidity remains strong. The balance sheet continues to provide substantial flexibility while we work through lease-up and stabilization. To close, 2025 was about building the platform. The next several quarters are about proving it. The near-term priorities are clear. lease the vacancy, stabilize the development pipeline, and convert that embedded NOI into dependable recurring cash flow. We have the balance sheet, liquidity, and now the operational infrastructure to execute, and we believe the pieces are in place for a meaningfully different earnings profile. Mining continues to perform. The DC multifamily supply overhang will clear, and the industrial portfolio has the leasing activity to support it. With that, I'll turn the call over to Mark Levy, our Chief Investment Officer, to provide additional perspective on leasing activity, market conditions, and capital deployment. Mark?