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    Bill Chen

    Research Analyst at Rhizome Partners

    Bill Chen is Managing Director at Rhizome Partners, specializing in institutional real estate investing with a particular focus on publicly traded REITs and life sciences companies. He has covered firms such as FRP Holdings, Clipper Realty, and Alexander's, and has delivered robust investment performance based on his disciplined capital allocation and detailed market analysis, including positions in Fevertree and multiple smaller biotech companies. Bill began his career prior to joining Rhizome Partners, where he has become known for insightful sector theses, regular appearances as an expert guest on investment podcasts, and a strong operational and analytical edge in real estate portfolio management. Professionally, he holds recognized finance credentials and maintains active industry involvement through conferences such as NAREIT.

    Bill Chen's questions to FRP HOLDINGS (FRPH) leadership

    Bill Chen's questions to FRP HOLDINGS (FRPH) leadership • Q4 2024

    Question

    Bill Chen of Rhizome Partners engaged in a detailed discussion covering several topics, including the company's underwriting targets for new industrial and multifamily developments, the current competitive landscape and construction cost environment, the leasing outlook for the Cranberry and Chelsea properties, and the development timeline for future multifamily phases in Washington D.C. He also advocated for initiating a dividend and using more market-reflective cap rates in the company's NAV calculation.

    Answer

    CFO Matthew McNulty and President/COO David deVilliers detailed their 6.5%-7% trended return-on-cost targets for new developments. DeVilliers noted that a slowdown in construction starts has created a competitive advantage, with GCs offering better pricing. He provided a candid outlook on the Commercial segment, expecting significant vacancy at the Cranberry property in 2025 due to known tenant move-outs, but expressed confidence in re-leasing at higher market rates. CEO John Baker addressed shareholder feedback, stating that while the company's NAV calculation is illustrative, he would review the cap rates used to ensure they are fair and not overly conservative. He also confirmed the multi-year timeline for future D.C. multifamily development.

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