FRP Holdings, Inc. (FRPH): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how FRP Holdings, Inc. (FRPH), a real estate company with nearly 40 years of development experience, operates and generates revenue across diverse markets? With a market capitalization of $508.10 million, FRP Holdings strategically invests in real estate, growing cash flow and maximizing stockholder value. Keep reading to discover how FRP Holdings navigates the real estate landscape through its four key segments and its strategic approach to development and asset management.

FRP Holdings, Inc. (FRPH) History

FRP Holdings, Inc. Founding Timeline

Year established

The company was originally established in 1986.

Original location

The original location was in Florida.

Founding team members

The founding team members included Harry Posner III, Thomas O. Posey III and David deVilliers Jr.

Initial capital/funding

Initially, the company began with the assets of a predecessor phosphate rock mining operation.

FRP Holdings, Inc. Evolution Milestones

FRP Holdings, Inc. Transformative Moments

• Shift from Mining to Real Estate: The decision to cease phosphate rock mining operations and transition to real estate development marked a significant turning point. This shift allowed the company to capitalize on its existing land holdings in new ways.
• Focus on Entitlement and Development: Prioritizing the entitlement of land for mixed-use projects was a strategic move that added substantial value to the company’s portfolio.
• Strategic Investments: Increasing investments in income-producing properties and development projects has diversified revenue streams and enhanced long-term growth prospects.

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FRP Holdings, Inc. (FRPH) Ownership Structure

FRP Holdings, Inc. exhibits a mixed ownership structure, featuring a combination of institutional, insider, and retail investors. Understanding this structure is key to grasping the balance of power and influence within the company.

FRP Holdings, Inc.'s Current Status

FRP Holdings, Inc. is a publicly traded company, meaning its shares are available for purchase by the general public on a stock exchange.

FRP Holdings, Inc.'s Ownership Breakdown

The ownership of FRP Holdings, Inc. is distributed among various types of shareholders. Here's a breakdown:

FRP Holdings, Inc.'s Leadership

The leadership team is crucial for guiding the strategic direction and operational execution of FRP Holdings, Inc. Here are some key aspects of the company's leadership:

• John Baker II serves as the Chairman of the Board.
• Jason Milton is the Chief Executive Officer.
• John Milton holds the position of President.
• Robert J. Campbell, Jr. acts as the Chief Financial Officer.

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FRP Holdings, Inc. (FRPH) Mission and Values

FRP Holdings, Inc. aims to deliver value through real estate investments and create sustainable growth. Their core values emphasize integrity, innovation, and community focus.

FRP Holdings, Inc. Core Purpose

Official mission statement

FRP Holdings, Inc. does not have a formal, publicly declared mission statement. However, based on their business activities and investor presentations, their implicit mission can be understood as:

• Creating value for shareholders through strategic investments in real estate, including land acquisition, development, and leasing.
• Operating with a focus on long-term growth and sustainability.
• Maintaining a commitment to the communities in which they operate.

Vision statement

Similarly, FRP Holdings, Inc. does not have an explicit vision statement. However, their vision can be inferred from their strategic goals and business activities:

• To be a leading real estate investment and development company recognized for its ability to identify and capitalize on opportunities in diverse markets.
• To foster a culture of innovation and excellence, attracting and retaining top talent in the industry.
• To build lasting relationships with stakeholders, including tenants, investors, and community members.

Company slogan/tagline

FRP Holdings, Inc. does not have a widely publicized official slogan or tagline. However, phrases that encapsulate their approach might include:

• 'Building Value, Building Communities.'
• 'Strategic Real Estate Investments for Sustainable Growth.'
• 'Creating Opportunities, Delivering Results.'

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FRP Holdings, Inc. (FRPH) How It Works

FRP Holdings, Inc. (FRPH) operates through three main segments: land acquisition and development, mining royalty, and stabilized investments. These segments work together to generate revenue and create value for shareholders.

FRP Holdings, Inc.'s Product/Service Portfolio

FRP Holdings, Inc.'s Operational Framework

FRP Holdings, Inc. focuses on opportunistic investments and value creation through land development, mining royalties, and income-producing properties.

• Land Acquisition and Development: FRP identifies and acquires land parcels with potential for future development. The company navigates the entitlement process, securing necessary approvals for residential, commercial, or mixed-use projects. Once entitled, the land is sold to developers, generating a profit for FRP.
• Mining Royalty: FRP owns land containing valuable aggregate resources like sand and gravel. They lease the land to mining operators, who extract these materials and pay FRP a royalty based on the volume of materials removed. This provides a steady stream of income with relatively low operating costs.
• Stabilized Investments: FRP owns and manages a portfolio of income-producing properties, primarily warehouses and mixed-use developments. They lease space to tenants, generating rental income and managing property operations to maintain occupancy and maximize returns.

FRP Holdings, Inc.'s Strategic Advantages

• Diversified Revenue Streams: FRP's revenue is derived from three distinct business segments, reducing its reliance on any single market or industry. This diversification provides stability and resilience to economic fluctuations.
• Strategic Land Holdings: FRP's land holdings are strategically located in high-growth areas, positioning the company to capitalize on increasing demand for residential and commercial development.
• Experienced Management Team: FRP's management team has a proven track record of identifying and executing successful real estate and resource-based investments.
• Disciplined Capital Allocation: FRP employs a disciplined approach to capital allocation, carefully evaluating investment opportunities and prioritizing projects with the highest potential returns.

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FRP Holdings, Inc. (FRPH) How It Makes Money

FRP Holdings, Inc. primarily generates revenue through its real estate holdings, which include land, mining royalties, and development projects.

FRP Holdings, Inc.'s Revenue Breakdown

FRP Holdings, Inc. classifies its operations into three reportable segments: Mining Royalty Lands, Real Estate, and Stabilized Joint Venture Properties. Here is a breakdown of these segments:

FRP Holdings, Inc.'s Business Economics

The business economics of FRP Holdings are influenced by several factors:

• Real Estate Market Conditions: The overall health of the real estate market significantly impacts the company's ability to sell and lease properties at favorable prices.
• Mining Activities: Royalty income from mining activities is directly tied to the volume of resources extracted from FRP's land.
• Development Costs: Costs associated with developing new properties can affect profitability. Efficient cost management is crucial.
• Interest Rates: Changes in interest rates can impact borrowing costs for development projects and the attractiveness of real estate investments.
• Occupancy Rates: For stabilized joint venture properties, maintaining high occupancy rates is essential for generating consistent rental income.

FRP Holdings, Inc.'s Financial Performance

Key aspects of FRP Holdings Inc.'s financial performance include:

• Revenue Growth: Monitoring the growth in revenue from each segment provides insights into the company's overall performance. In 2023, total revenues increased 11% to $74.1 million compared to $66.8 million in 2022.
• Profitability: Analyzing gross profit margins and net income helps assess the profitability of FRP's operations. In 2023, net income attributable to common shareholders was $10.9 million, compared to $11.7 million in 2022.
• Asset Management: Effective management of real estate assets is crucial for maximizing returns.
• Debt Levels: The company's debt levels and ability to meet its obligations are important indicators of financial health.
• Return on Equity (ROE): ROE measures the company's ability to generate profits from shareholders' equity.

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FRP Holdings, Inc. (FRPH) Market Position & Future Outlook

FRP Holdings, Inc. is strategically positioned to leverage its diverse real estate portfolio for continued growth, balancing opportunities in a dynamic market with inherent risks.

Competitive Landscape

Opportunities & Challenges

Industry Position

FRP Holdings maintains a unique position within the real estate industry due to its legacy in the aggregates business, which provides a distinct advantage in land acquisition and development. As of fiscal year 2024, the company focuses on:

• Aggregates Royalty segment which leases land for mining, generating revenue through royalties.
• Land Development and Entitlement segment focuses on rezoning, entitling and selling land.
• Development segment focuses on constructing, owning and managing buildings.

These activities allow FRP Holdings to:

• Generate revenue from diverse sources, reducing dependence on any single market segment.
• Control significant land assets, providing a buffer against market volatility and opportunities for future development.
• Specialize in niche markets such as data centers and logistics facilities, which have high growth potential.

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