Stephen Farrell's questions to FRP Holdings Inc (FRPH) leadership • Q4 2024
Question
Stephen Farrell inquired about FRP's acquisition strategy, including geographic focus between Maryland and the Southeast, the potential for acquiring distressed properties versus new development, and the impact of tariffs on industrial real estate.
Answer
President and COO David deVilliers explained that the company's acquisition focus is primarily on the Southeast due to favorable growth drivers and easier entitlement processes, though they remain open to opportunities in Maryland. He noted that cap rates on stabilized assets are currently too low for acquisitions, but they are monitoring the market for potential distress. Regarding tariffs, deVilliers believes they will have a greater impact on multifamily projects due to lumber costs, whereas the company has already planned around potential steel tariffs for its near-term industrial developments.