FRP Holdings, Inc.

Good morning, ladies and gentlemen, and welcome to the FRP Holdings, Inc. second quarter 2026 earnings call. All lines have been placed on a listen-only mode, and the call will be open for questions and comments following the management presentation. At this time, it is my pleasure to call over to Matt McNulty.

Thank you, Mike. Good morning, and thank you for joining us today. I'm Matt McNulty, Chief Financial Officer of FRP Holdings, Inc., and with me as speakers today are John Baker III, our CEO, David deVilliers III, our President and Chief Operating Officer, and Mark Levy, our Chief Investment Officer. Also joining us on the call are John Baker II, our Chairman, David deVilliers Jr., our Vice Chairman, John Milton, our Executive Vice President, and John Klopfenstein, our Chief Accounting Officer. As a reminder, any statements on the 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. Additionally, 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, Pro Rata NOI, Funds from Operations, or FFO, and FFO per share. We also reference debt service coverage and net debt as a percentage of the fair market value, which are not measures calculated in accordance with GAAP. 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 net operating income to GAAP net income, please refer to our most recently filed 10 earnings press release and our quarterly earnings deck published on our website. 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. The second quarter unfolded largely as we expected. Industrial leasing continues to take longer than we originally underwrote, but tenant activity continues to improve. Our balance sheet remains exceptionally strong, and our long-term strategy has not changed. Let me begin with where FRP is headed, because it frames everything we do. At FRP, disciplined capital allocation is at the core of our strategy. We continually evaluate where each incremental dollar can earn the highest long-term risk-adjusted return. That philosophy has created a portfolio and pipeline that includes industrial, multifamily, and mining royalties. Each business generates recurring NOI, creates long-term shareholder value, and plays an important role in our company.