Quarterly Report (10-q)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

FORM 10-Q

_________________

(Mark One)

[X]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2016.

[_]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from_________ to _________

Commission File Number: 001-36769

_____________________

FRP HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

_____________________

Florida		47-2449198
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

200 W. Forsyth St., 7th Floor, Jacksonville, FL		32202
(Address of principal executive offices)		(Zip Code)

904-396-5733

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [_]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [x] No [_]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer [_]		Accelerated filer [x]

Non-accelerated filer [_]		Smaller reporting company [_]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [_] No [x]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

	Class				Outstanding at June 30, 2016
	Common Stock, $.10 par value				9,862,379 shares
	per share

FRP HOLDINGS, INC.

FORM 10-Q

QUARTER ENDED JUNE 30, 2016

CONTENTS

Page No.

Preliminary Note Regarding Forward-Looking Statements		3

	Part I. Financial Information

Item 1.	Financial Statements
	Consolidated Balance Sheets	4
	Consolidated Statements of Income	5
	Consolidated Statements of Cash Flows	6
	Condensed Notes to Consolidated Financial Statements	7

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	19

Item 3.	Quantitative and Qualitative Disclosures about Market Risks	36

Item 4.	Controls and Procedures	36

	Part II. Other Information

Item 1A.	Risk Factors	36

Item 2.	Purchase of Equity Securities by the Issuer	37

Item 6.	Exhibits	37

Signatures		38

Exhibit 31	Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	40

Exhibit 32	Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	43

Preliminary Note Regarding Forward-Looking Statements.

Certain matters discussed in this report contain forward-looking statements, including without limitation relating to the Company's plans, strategies, objectives, expectations, intentions, capital expenditures, future liquidity, plans and timetables for completion of pending development projects and other transactions. The words or phrases “anticipate,” “estimate,” ”believe,” “budget,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and similar expressions identify forward-looking statements. The following factors and others discussed in the Company’s periodic reports and filings with the Securities and Exchange Commission are among the principal factors that could cause actual results to differ materially from the forward-looking statements: uncertainties as to whether the Company will recognize the benefits of the spin-off of the transportation group; uncertainties as to whether the Company can complete, and the timetable for completion of pending or proposed development projects and other transactions; levels of construction activity in the markets served by our mining properties; risk insurance markets; availability and terms of financing; competition; interest rates, inflation and general economic conditions; demand for flexible warehouse/office facilities in the Baltimore-Washington-Northern Virginia area; and ability to obtain zoning and entitlements necessary for property development. However, this list is not a complete statement of all potential risks or uncertainties.

These forward-looking statements are made as of the date hereof based on management’s current expectations, and the Company does not undertake an obligation to update such statements, whether as a result of new information, future events or otherwise. Additional information regarding these and other risk factors may be found in the Company’s other filings made from time to time with the Securities and Exchange Commission.

PART I. FINANCIAL INFORMATION, ITEM 1. FINANCIAL STATEMENTS

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited) (In thousands, except share data)

	June 30			September 30
Assets:	2016			2015
Real estate investments at cost:
Land	$	97,850			102,347
Buildings and improvements		186,434			174,820
Projects under construction		2,399			4,129
Total investments in properties		286,683			281,296
Less accumulated depreciation and depletion		78,919			74,091
Net investments in properties		207,764			207,205

Real estate held for investment, at cost		7,306			7,306
Real estate held for sale, at cost		—			4,826
Investment in joint ventures		24,139			19,010
Net real estate investments		239,209			238,347

Cash and cash equivalents		3,469			419

Accounts receivable		886			778
Federal and state income taxes receivable		—			393
Unrealized rents		4,905			4,817
Deferred costs		6,436			7,449
Other assets		677			275
Total assets	$	255,582			252,478

Liabilities:
Line of credit payable	$	—			8,494
Secured notes payable, current portion		4,384			4,180
Secured notes payable, less current portion		32,697			36,011
Accounts payable and accrued liabilities		3,259			3,456
Environmental remediation liability		2,039			51
Federal and state income taxes payable		275			—
Deferred revenue		46			1,060
Deferred income taxes		16,406			14,541
Deferred compensation		1,486			1,400
Deferred lease intangible, net		20			45
Tenant security deposits		973			898
Total liabilities		61,585			70,136

Commitments and contingencies (Note 8)

Shareholders’ Equity:
Common stock, $.10 par value 25,000,000 shares authorized, 9,862,379 and 9,791,770 shares issued and outstanding, respectively		986			979
Capital in excess of par value		51,488			49,872
Retained earnings		141,529			131,497
Accumulated other comprehensive loss, net		(6	)		(6	)
Total shareholders’ equity		193,997			182,342
Total liabilities and shareholders’ equity	$	255,582			252,478

See accompanying notes.

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In thousands except per share amounts)

(Unaudited)

	THREE MONTHS ENDED						NINE MONTHS ENDED
	JUNE 30,						JUNE 30,
	2016			2015			2016			2015
Revenues:
Rental revenue	$	6,082			5,784			18,198			17,531
Royalty and rents		2,033			1,714			5,427			4,349
Revenue – reimbursements		1,128			999			4,056			3,867
Total Revenues		9,243			8,497			27,681			25,747

Cost of operations:
Depreciation, depletion and amortization		2,066			1,805			5,891			5,566
Operating expenses		974			818			3,478			3,487
Environmental remediation expense (recovery)		2,000			—			(1,000	)		—
Property taxes		1,128			994			3,388			3,323
Management company indirect		425			434			1,425			1,228
Corporate expenses (Note 4 Related Party)		684			557			2,424			3,750
Total cost of operations		7,277			4,608			15,606			17,354

Total operating profit		1,966			3,889			12,075			8,393

Interest income		—			—			2			—
Interest expense		(392	)		(459	)		(1,288	)		(1,524	)
Equity in loss of joint ventures		(186	)		(75	)		(326	)		(255	)
Gain (Loss) on investment land sold		(109	)		—			6,177			(20	)

Income from continuing operations before income taxes		1,279			3,355			16,640			6,594
Provision for income taxes		505			1,309			6,573			2,572
Income from continuing operations		774			2,046			10,067			4,022

Gain from discontinued transportation operations, net of taxes		—			—			—			2,179

Net income	$	774			2,046			10,067			6,201

Comprehensive net income	$	774			2,046			10,067			6,201

Earnings per common share:
Income from continuing operations-
Basic	$	0.08			0.21			1.02			0.41
Diluted	$	0.08			0.21			1.02			0.41
Discontinued operations-
Basic	$	—			—			—			0.23
Diluted	$	—			—			—			0.22
Net Income-
Basic	$	0.08			0.21			1.02			0.64
Diluted	$	0.08			0.21			1.02			0.63

Number of shares (in thousands) used in computing:
-basic earnings per common share		9,864			9,777			9,839			9,745
-diluted earnings per common share		9,907			9,839			9,884			9,822

See accompanying notes.

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED JUNE 30, 2016 AND 2015

(In thousands) (Unaudited)

		2016		2015
Cash flows from operating activities:
Net income	$	10,067		6,201
Adjustments to reconcile net income to net cash
provided by operating activities:
Income from discontinued operations, net		—		(2,179	)
Depreciation, depletion and amortization		6,068		5,663
Deferred income taxes		1,865		981
Equity in loss of joint ventures		326		255
(Gain) Loss on sale of equipment and property		(6,196	)	87
Stock-based compensation		547		763
Net changes in operating assets and liabilities:
Accounts receivable		(108	)	453
Deferred costs and other assets		(470	)	458
Accounts payable and accrued liabilities		777		(3,443	)
Income taxes payable and receivable		668		(1,108	)
Other long-term liabilities		136		62
Net cash provided by operating activities of continuing operations		13,680		8,193
Net cash provided by operating activities of discontinued operations		—		4,984
Net cash provided by operating activities		13,680		13,177

Cash flows from investing activities:
Investments in properties		(12,969	)	(3,693	)
Investment in joint ventures		(561	)	35
Cash held in escrow		—		(469	)
Proceeds from the sale of real estate held for investment and properties		13,463		76
Net cash used in investing activities of continuing operations		(67	)	(4,051	)
Net cash used in investing activities of discontinued operations		—		(2,694	)
Net cash used in investing activities		(67	)	(6,745	)

Cash flows from financing activities:
Increase in bank overdrafts		—		—
Repayment of long-term debt		(3,110	)	(4,397	)
Proceeds from borrowing on revolving credit facility		15,434		16,657
Payment on revolving credit facility		(23,928	)	(18,341	)
Repurchase of Company stock		(43	)	—
Excess tax benefits from exercises of stock options		—		175
Exercise of employee stock options		1,084		831
Net cash used in financing activities of continuing operations		(10,563	)	(5,075	)
Net cash used in financing activities of discontinued operations		—		(1,631	)
Net cash used in financing activities		(10,563	)	(6,706	)

Net increase (decrease) in cash and cash equivalents		3,050		(274	)
Cash and cash equivalents at beginning of period		419		1,013
Cash and cash equivalents at end of the period	$	3,469		739

See accompanying notes.

FRP HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2016

(Unaudited)

(1) Basis of Presentation. The accompanying consolidated financial statements include the accounts of FRP Holdings, Inc. (the “Company” or “FRP”) inclusive of our operating real estate subsidiaries, FRP Development Corp. (“Development”) and Florida Rock Properties, Inc. (”Properties”), subsequent to the completed spin-off (the “Spin-off”) of our transportation assets into a new, publicly traded entity, Patriot Transportation Holding, Inc. (“Patriot”; stock symbol “PATI”) effective January 30, 2015. As a result of the Spin-off the former transportation segment of the Company is reported as a discontinued operation that cannot receive any corporate overhead allocation. Hence, all corporate overhead of the transportation group through the date of the spin-off is included in “corporate expense” on the Company’s consolidated income statements herein. Our investment in the 50% owned Brooksville Joint Venture, the 50% owned BC FRP Realty Joint Ventures and in the Riverfront Investment Partners I, LLC are accounted for under the equity method of accounting (See Note 12). These statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q and do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (primarily consisting of normal recurring accruals) considered necessary for a fair statement of the results for the interim periods have been included. Operating results for the nine months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2016. The accompanying consolidated financial statements and the information included under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" should be read in conjunction with the Company's consolidated financial statements and related notes included in the Company’s Form 10-K for the year ended September 30, 2015.

Following the completion of the Spin-off of the transportation business, management conducted a strategic review of the Company’s real estate operations. As a result of this review, it was determined that the information that the Company’s chief operating decision makers regularly review for purposes of allocating resources and assessing performance, had changed. Therefore, beginning with the quarter ending June 30, 2015 (with prior periods adjusted accordingly), the Company is reporting its financial performance based on three reportable segments, Asset Management, Mining Royalty Lands and Land Development and Construction, as described below.

Our Mining Royalty Lands segment stays the same, but based on our strategic review the Developed Property Rentals segment has been broken down into an Asset Management segment and a Land Development and Construction segment to reflect how management now evaluates the real estate activities previously presented in the Developed Property Rentals segment. The Asset Management segment contains all the developed buildings capable of producing current rental income; the Land Development and Construction segment contains the remaining developable land not yet developed to its eventual highest and best use potential where the Company's focus is to add further entitlements, construct vertical improvements or market the property to third parties all in an effort to bring such property to income producing status or realization of its fair market value through sales or exchange. This Land Development and Construction segment is generally in a pre-income production state where objectives are long term capital investment for eventual production of long-term rental streams or capital investment to achieve highest potential market value for sale to third parties.

Prior to the quarter ending December 31, 2015 certain corporate expenses (primarily stock compensation, corporate aircraft and one-time Spin-off related expenses) were reported as “unallocated”

on the Company’s consolidated income statement and were not allocated to any business segment. Effective with fiscal 2016 all corporate expenses, other than those not allocated to discontinued operations, have been allocated. Reclassifications to the appropriate prior period line items and amounts have been made to be comparable to the current presentation. See Note 3 for a breakdown of corporate expenses showing the amounts allocated to the segments and the unallocated to discontinued operations.

(2) Recently Issued Accounting Standards. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”. The guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The guidance becomes effective for annual reporting periods beginning after December 15, 2016 with early adoption permitted. The Company adopted this guidance retrospectively as of October 1, 2015 and reclassified $143,000 from deferred costs to long-term deferred tax liability.

In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which requires lessees to recognize a right-to-use asset and a lease obligation for all leases. Lessees are permitted to make an accounting policy election to not recognize an asset and liability for leases with a term of twelve months or less. Additional qualitative and quantitative disclosures, including significant judgments made by management, will be required. Lessors will account for leases using an approach that is substantially equivalent to existing accounting standards. The new standard will become effective for the Company beginning with the first quarter 2020 and requires a modified retrospective transition approach and includes a number of practical expedients. Early adoption of the standard is permitted. As the Company is primarily a lessor the adoption of this guidance is not expected to have a material impact on its financial statements.

In March 2016, the FASB issued ASU No. 2016-09, “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting”. The ASU includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. Excess tax benefits for share-based payments will be recorded as a reduction of income taxes and reflected in operating cash flows upon the adoption of this ASU. Excess tax benefits are currently recorded in equity and as financing activity under the current rules. In addition, the guidance allows for a policy election to account for forfeitures as they occur rather than on an estimated basis. This guidance is effective for annual and interim reporting periods of public entities beginning after December 15, 2016 with early adoption permitted. The Company is currently evaluating early adoption of this accounting guidance.

(3) Business Segments. Following the completion of the spin-off of the transportation business, management conducted a strategic review of the Company’s real estate operations. As a result of this review, it was determined that the information that the Company’s chief operating decision makers regularly review for purposes of allocating resources and assessing performance, had changed. Therefore, beginning with the quarter ending June 30, 2015 (with prior periods adjusted accordingly), the Company is reporting its financial performance based on three reportable segments, Asset Management, Mining Royalty Lands and Land Development and Construction, as described below.

The Asset Management segment owns, leases and manages warehouse/office buildings located predominately in the Baltimore/Northern Virginia/Washington, DC market area.

Our Mining Royalty Lands segment was unaffected by the change in segments and owns several properties comprising approximately 15,000 acres currently under lease for mining rents or royalties (this

does not include the 4,280 acres owned in our Brooksville joint venture with Vulcan Materials). Other than one location in Virginia, all of these properties are located in Florida and Georgia.

Through our Land Development and Construction segment, we own and are continuously monitoring for their “highest and best use” several parcels of land that are in various stages of development. Our overall strategy in this segment is to convert all of our non-income producing lands into income production through (i) an orderly process of constructing new warehouse/office buildings for us to own and operate or (ii) a sale to, or joint venture with, third parties.

Subsequent to the Spin-off, the Company is receiving certain services from Patriot (e.g. executive oversight, accounting, information technology and human resource services) which are billed to the Company on a monthly basis in accordance with the Transition Services Agreement entered into and made effective as of the date of the Spin-off. As was the case prior to the Spin-off, these costs (excluding stock compensation) are included in the Company’s corporate expense and are fully allocated to the business segments. Certain other corporate expenses (primarily stock compensation, corporate aircraft and one-time Spin-off related expenses) are reported as “unallocated” on the Company’s consolidated income statement and are not allocated to any business segment. As a result of the Spin-off the former transportation segment of the Company is reported as a discontinued operation and thus is not allowed any corporate overhead allocation. Hence, all corporate overhead of the transportation group through the date of the Spin-off is included in “corporate expense” on the Company’s consolidated income statements herein. Reclassifications to the appropriate prior period line items and amounts have been made to be comparable to the current presentation.

Operating results and certain other financial data for the Company’s business segments are as follows (in thousands):

	Three Months ended						Nine Months ended
	June 30,						June 30,
	2016			2015			2016			2015
Revenues:
Asset management	$	6,927			6,509			21,416			20,596
Mining royalty lands		2,059			1,735			5,496			4,414
Land development and construction		257			253			769			737
		9,243			8,497			27,681			25,747

Operating profit:
Before corporate expenses:
Asset management	$	3,318			3,289			10,129			9,862
Mining royalty lands		1,940			1,576			5,114			3,967
Land development and construction		(2,608	)		(419	)		(744	)		(1,686	)
Corporate expenses:
Allocated to asset management		(354	)		(210	)		(1,252	)		(1,007	)
Allocated to mining royalty		(52	)		(223	)		(182	)		(1,067	)
Allocated to land development and construction		(278	)		(124	)		(990	)		(595	)
Unallocated to discontinued operations		—			—			—			(1,081	)
		(684	)		(557	)		(2,424	)		(3,750	)
	$	1,966			3,889			12,075			8,393

Interest expense:
Asset management	$	392			459			1,288			1,524


Depreciation, depletion and amortization:
Asset management	$	1,985	1,694	5,618	5,256
Mining royalty lands		15	39	80	100
Land development and construction		66	72	193	210
	$	2,066	1,805	5,726	5,566

Capital expenditures:
Asset management	$	699	231	10,340	1,498
Mining royalty lands		101	—	106	—
Land development and construction		673	1,033	2,523	2,195
	$	1,473	1,264	12,969	3,693

	June 30,		September 30,
Identifiable net assets	2016		2015

Asset management	$	161,487		151,023
Mining royalty lands		39,737		39,300
Land development and construction		50,357		60,682
Cash items		3,469		419
Unallocated corporate assets		532		1,054
	$	255,582		252,478

(4) Related Party Transactions. In order to effect the Spin-off and govern our relationship with Patriot Transportation Holding, Inc. after the Spin-off, we entered into an Employee Matters Agreement and a Transition Services Agreement. The Employee Matters Agreement generally allocates responsibilities to each company for liabilities relating to each Company’s current and former employees and allocated responsibilities under employee benefit plans. The Transition Services Agreement sets forth the terms on which Patriot will provide to FRP certain services that were shared prior to the Spin-off, including the services of certain shared executive officers, for a period of 12 or more months after the Spin-off.

The consolidated statements of income reflects charges and/or allocations from Patriot for these services of $388,000 and $924,000 for the three months ended June 30, 2016 and 2015, and $1,180,000 and $2,361,000 for the nine months ended June 30, 2016 and 2015, respectively.

To determine these allocations between FRP and Patriot as set forth in the Transition Services Agreement, we generally employed the same methodology historically used by the Company pre Spin-off to allocate said expenses and thus we believe that the allocations to FRP are a reasonable approximation of the costs related to FRP’s operations but any such related-party transactions cannot be presumed to be carried out on an arm’s-length basis as the terms were negotiated while Patriot was still a subsidiary of FRP.

As a result of the Spin-off the former transportation segment of the Company is reported as a discontinued operation and thus is not allowed any corporate overhead allocation. Hence, all corporate overhead of the transportation group through the date of the Spin-off is included in “corporate expense” on the Company’s consolidated income statements. The consolidated statements of income reflect charges and/or allocation for these services of $1,081,000 for the nine months ended June 30, 2015.

(5) Long-Term debt. Long-term debt is summarized as follows (in thousands):

	June 30,		September 30,
	2016		2015
Revolving credit agreements	$	—		8,494
5.6% to 7.9% mortgage notes
due in installments through 2027		37,081		40,191
		37,081		48,685
Less portion due within one year		4,384		4,180
	$	32,697		44,505

On January 30, 2015, in connection with the Spin-off, the Company terminated its $55 million credit facility entered into with Wells Fargo Bank, N.A. in 2012 and simultaneously entered into a new five year credit agreement with Wells Fargo with a maximum facility amount of $20 million (the "Credit Agreement"). The Credit Agreement provides a revolving credit facility (the “Revolver”) with a $10 million sublimit available for standby letters of credit. At the time of the Spin-off, the Company refinanced $10,483,000 of borrowings then outstanding on the terminated revolver. As of June 30, 2016, there was no debt outstanding on the Company’s new credit facility, $2,442,000 letters of credit commitment and $17,558,000 available for borrowing. The credit agreement contains certain conditions and financial covenants, including a minimum $110 million tangible net worth. As of June 30, 2016, the tangible net worth covenant would have limited our ability to pay dividends or repurchase stock with borrowed funds to a maximum of $83 million combined. The Company was in compliance with all covenants as of June 30, 2016.

During the first quarter of fiscal 2015, the Company announced the execution of a commitment from First Tennessee Bank to provide up to $40 million dollars of mortgage backed financing in two separate facilities. On July 24, 2015 the Company closed on a five year, $20 million secured revolver with a twenty-four month window to convert up to the full amount of the facility into a ten year term loan. As of June 30, 2016, there was no debt outstanding on the revolver. The second facility is a $20 million ten year term loan secured by to-be-determined collateral from our current pool of unencumbered warehouse/office properties. The purpose of these loans is to facilitate growth through new construction in the Land Development and Construction segment and/or acquisition of existing, operating buildings to be added to the Asset Management segment.

During the three months ended June 30, 2016 and June 30, 2015 the Company capitalized interest costs of $240,000 and $258,000, respectively. During the nine months ended June 30, 2016 and June 30, 2015, the Company capitalized interest costs of $704,000 and $827,000, respectively.

The fair values of the Company’s mortgage notes payable were estimated based on current rates available to the Company for debt of the same remaining maturities. At June 30, 2016, the carrying amount and fair value of such long-term debt was $37,081,000 and $40,533,000, respectively.

(6) Earnings per share. The following details the computations of the basic and diluted earnings per common share (dollars in thousands, except share and per share amounts):

	Three Months ended				Nine Months ended
	June 30,				June 30,
	2016		2015		2016		2015
Weighted average common shares
outstanding during the period
- shares used for basic
earnings per common share		9,864		9,777		9,839		9,745

Common shares issuable under
share based payment plans
which are potentially dilutive		43		62		45		77

Common shares used for diluted
earnings per common share		9,907		9,839		9,884		9,822

Income from continuing operations	$	774		2,046		10,067		4,022
Discontinued operations		—		—		—		2,179
Net income	$	774		2,046		10,067		6,201

Basic earnings per common share:
Income from continuing operations	$	0.08		0.21		1.02		0.41
Discontinued operations		0.00		0.00		0.00		0.23
Net income	$	0.08		0.21		1.02		0.64

Diluted earnings per common share:
Income from continuing operations	$	0.08		0.21		1.02		0.41
Discontinued operations		0.00		0.00		0.00		0.22
Net income	$	0.08		0.21		1.02		0.63

For the three and nine months ended June 30, 2016, 72,090 shares attributable to outstanding stock options were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive. For the three and nine months ended June 30, 2015, 62,021 and 76,691 shares attributable to outstanding stock options were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive.

(7) Stock-Based Compensation Plans. As more fully described in Note 8 to the Company’s notes to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended September 30, 2015, the Company’s stock-based compensation plan permits the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units, and stock awards. The number of common shares available for future issuance was 384,430 at June 30, 2016.

As a result of the Spin-off and pursuant to the Employee Matters Agreement, we made certain adjustments to the exercise price and number of outstanding FRP stock options. All outstanding options held by the Company directors, Company officers and key employees on January 30, 2015 were cancelled and replaced by an equal number of FRP options at 75.14% of the previous exercise price based upon the market value of FRP less the when issued market value of the Company on that day. For FRP officers additional options were issued rather than issuing Patriot options for the 24.86% market value attributed to Patriot. The adjusted stock options are subject to the same vesting conditions and other terms that applied to the original FRP award immediately prior to the Spin-off, except as otherwise described above.

Subsequent to Spin-off, the realized tax benefit pertaining to options exercised and the remaining

compensation cost of options previously granted prior to the Spin-off will be recognized by FRP or Patriot based on the employment location of the related employee or director.

The Company recorded the following stock compensation expense (including unallocated to Patriot in periods prior to the Spin-off) in its consolidated statements of income (in thousands):

	Three Months ended				Nine Months ended
	June 30,				June 30,
	2016		2015		2016		2015
Stock option grants	$	32		9		135		227
Annual director stock award		—		—		412		536
	$	32		9		547		763

A summary of changes in outstanding options is presented below (in thousands, except share and per share amounts):

				Weighted	Weighted		Weighted
	Number			Average	Average		Average
	of			Exercise	Remaining		Grant Date
Options	Shares			Price	Term (yrs)		Fair Value

Outstanding at
October 1, 2015	305,750		$	21.90	5.9	$	2,738
Granted	21,540		$	31.15		$	272
Exercised	(58,830	)	$	18.42		$	(438	)
Outstanding at
June 30, 2016	268,460		$	23.40	5.8	$	2,572
Exercisable at
June 30, 2016	190,613		$	22.19	5.0	$	1,653
Vested during
nine months ended
June 30, 2016	35,596					$	341

The aggregate intrinsic value of exercisable in-the-money options was $2,347,000 and the aggregate intrinsic value of outstanding in-the-money options was $2,980,000 based on the market closing price of $34.50 on June 30, 2016 less exercise prices.

The realized tax benefit to the Company or Patriot from options exercised in the nine months ended June 30, 2016 was $323,000. The unrecognized compensation cost of options granted to FRP employees but not yet vested as of June 30, 2016 was $354,000, which is expected to be recognized over a weighted-average period of 3.6 years. Gains of $835,000 were realized by option holders during the nine months ended June 30, 2016.

(8) Contingent liabilities. Certain of the Company’s subsidiaries are involved in litigation on a number of matters and are subject to certain claims which arise in the normal course of business. The Company has retained certain self-insurance risks with respect to losses for third party liability and property damage. The liability at any point in time depends upon the relative ages and amounts of the individual open claims. In the opinion of management, none of these matters are expected to have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows.

Preliminary testing on the site of the Company's four phase master development known as RiverFront on the Anacostia in Washington, D.C. indicated the presence of contaminated material that will have to be specially handled upon excavation in conjunction with construction. The Company has agreed with our joint venture partner to bear the cost of handling the contaminated materials on the first phase of this development up to a cap of $1.871 million. We recorded an expense in the fourth quarter of fiscal 2012 of $1,771,000 for this environmental remediation liability which is the lower end of the range of estimates. As of June 30, 2016, the excavation and foundation work for Phase 1 were substantially complete; thus, the bulk of the remediation expenses have been incurred. Management believes the total cost for remediation on Phase 1 will be approximately $1.9 million. During the quarter ending December 31, 2015, management successfully completed negotiations and entered into a $3,000,000 settlement of environmental claims on all four phases against our former tenant at the Riverfront on the Anacostia property and continues to pursue settlement negotiations with other potentially responsible parties. The Company executed a letter of intent with MRP Realty in May 2016 to develop Phase II of the Riverfront on the Anacostia project and recorded an estimated environmental remediation expense of $2.0 million for the Company’s estimated liability under the proposed agreement. The Company has no obligation to remediate this contamination on Phases III and IV of the development until such time as it makes a commitment to commence construction on each phase.

(9) Concentrations. With the completion and occupancy of the 3rd build to suit for the same tenant at Patriot Business Park in the first quarter of fiscal 2015 this particular tenant accounted for 11.5% of the Company’s consolidated revenues during the nine months ended June 30, 2016. The mining royalty lands segment has a total of four tenants currently leasing mining locations and one lessee that accounted for 15.3% of the Company’s consolidated revenues in the nine months ended June 30, 2016 and $278,000 of accounts receivable at June 30, 2016. The termination of these lessees’ underlying leases could have a material adverse effect on the Company. The Company places its cash and cash equivalents with First Tennessee Bank. At times, such amounts may exceed FDIC limits.

(10) Fair Value Measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 means the use of quoted prices in active markets for identical assets or liabilities. Level 2 means the use of values that are derived principally from or corroborated by observable market data. Level 3 means the use of inputs are those that are unobservable and significant to the overall fair value measurement.

As of June 30, 2016 the Company had no assets or liabilities measured at fair value on a recurring or non-recurring basis. At June 30, 2016 and 2015, the carrying amount reported in the consolidated balance sheets for cash and cash equivalents, short-term notes payable and revolving credit approximate their fair value based upon the short-term nature of these items. The fair values of the Company’s other mortgage notes payable were estimated based on current rates available to the Company for debt of the same remaining maturities.

(11) Unusual or Infrequent Items Impacting Quarterly Results. Operating profit includes expenses of $17,000 and $324,000 in the third quarter and nine months respectively of fiscal 2015 for nonrecurring costs related to the Spin-off.

Costs of operations for the land development and construction segment for the quarter ending December 31, 2015 includes a $3,000,000 positive benefit from settlement of environmental claims against our

former tenant at the Riverfront on the Anacostia property (see Note 8).

Gain on investment land sold for the quarter ending December 31, 2015 includes $6,277,000 gain on the sale of phase 2 of Windlass Run residential property.

In January 2015 the Company prepaid the $1,314,000 remaining principal balance on 8.55% and 7.95% mortgages. The prepayment penalty of $116,000 is included in interest expense. The remaining deferred loan costs of $15,000 were also included in interest expense.

Costs of operations for the land development and construction segment for the quarter ending June 30, 2016 includes a $2,000,000 expense for estimated environmental remediation liability on Phase II of the Riverfront on the Anacostia property (see Note 8).

(12) Investment in Joint Ventures.

RiverFront. On March 30, 2012 the Company entered into a Contribution Agreement with MRP SE Waterfront Residential, LLC. (“MRP”) to form a joint venture to develop the first phase only of the four phase master development known as RiverFront on the Anacostia in Washington, D.C. The purpose of the Joint Venture is to develop, own, lease and ultimately sell an approximately 300,000 square foot residential apartment building (including approximately 18,000 square feet of retail) on approximately 2.1 acres of the roughly 5.82 acre site. The joint venture, RiverFront Investment Partners I, LLC (“RiverFront I”) was formed in June 2013 as contemplated. The Company contributed land with an agreed to value of $13,500,000 (cost basis of $6,165,000) and contributed cash of $4,866,000 to the Joint Venture for a 76.91% stake in the venture. MRP contributed capital of $5,553,000 to the joint venture including development costs paid prior to formation of the joint venture. The Joint Venture closed on $17,000,000 of EB5 secondary financing and a nonrecourse construction loan for $65,000,000 on August 8, 2014. Both these financing sources are non-recourse to FRP. At the time of these financings, RiverFront Holdings I, LLC. was formed as a parent to RiverFront Investment Partners I, LLC with EB5 as an equity partner in Riverfront Holdings I, LLC. Construction commenced in October 2014. At this point, the Company anticipates lease up to occur in the second half of calendar 2016 and into 2017. The Company’s equity interest in the joint venture is accounted for under the equity method of accounting as MRP acts as the administrative agent of the joint venture and oversees and controls the day to day operations of the project.

Other income for the nine months ended June 30, 2016 includes a loss of $296,000 representing the Company’s portion of the loss of this joint venture due primarily to expenses incurred in the joint venture with respect to advertising expense, depreciation on the bulkhead, and audit fees.

of $2,397,000 have been made by each party as of June 30, 2016. Distributions will be made on a 50-50 basis except for royalties and depletion specifically allocated to the Company. Other income for the nine months ended June 30, 2016 includes a loss of $30,000 representing the Company’s portion of the loss of this joint venture. In April 2011, the Florida Department of Community Affairs issued its Final Order approving the development of the Project, and zoning for the Project was obtained from Hernando County in August 2012. We will continue to monitor the residential market in Hernando County and pursue opportunities to partner with a master community developer or major homebuilder to commence construction when the market dictates.

BC FRP Realty (Windlass Run). During the 2nd quarter, we entered into an agreement with a substantial Baltimore development company (St. John Properties, Inc.) to jointly develop the remaining lands of our Windlass Run Business Park. The 50/50 partnership initially calls for FRP to combine its 25 acres (valued at $7,500,000) with St. John Properties’ adjacent 10 acres fronting on a major state highway (valued at $3,239,536) which resulted in an initial cash distribution of $2,130,232 to FRP in May, 2016. Thereafter, the venture will jointly develop the combined properties into a multi-building business park to consist of approximately 329,000 square feet of single story office space.

Investments in Joint Ventures (in thousands):

							The
							Company's
				Total Assets	Net Loss		Share of Net
			Total	of the	of the		Loss of the
	Ownership		Investment	Partnership	Partnership		Partnership
				(Unaudited)	(Unaudited)
As of June 30, 2016
Riverfront Holdings I, LLC	76.91	%	$ 11,705	$ 76,823	$ (365	)	$ (296	)
Brooksville Quarry, LLC	50.00	%	7,508	14,351	(60	)	(30	)
BC FRP Realty, LLC	50.00	%	4,926	10,415	-		-
Total			$ 24,139	$ 101,589	$ (425	)	$ (326	)

As of September 30, 2015
Riverfront Holdings I, LLC	76.91	%	$ 11,517	$ 40,970	$ (108	)	$ (105	)
Brooksville Quarry, LLC	50.00	%	7,493	14,336	(80	)	(40	)
Total			$ 19,010	$ 55,306	$ (188	)	$ (145	)

The amount of consolidated retained earnings for these joint ventures was $(591,000) and $(389,000) as of June 30, 2016 and September 30, 2015, respectively.

Summarized Unaudited Financial Information for the Investments in Joint Ventures (in thousands):

	As of
		6/30/2016	9/30/2015

Cash	$	118	61
Cash held in escrow		223	3,420
Amortizable Debt Costs		1,283	1,593
Investments in real estate, net		99,965	50,232
Total Assets	$	101,589	55,306

Other Liabilities	$	4,118	6,969
Long-term Debt		55,684	17,000
Capital – FRP		24,139	19,010
Capital - Third Parties		17,648	12,327
Total Liabilities and Capital	$	101,589	55,306

(13) Spin-off. On January 30, 2015, FRP Holdings, Inc. (Nasdaq GM: FRPH) (the “Company” or “FRP”) completed the spin-off of its transportation business into a new, separately traded public company - Patriot Transportation Holding, Inc. (Nasdaq GM: PATI) (“Patriot”) - resulting in FRP becoming a pure real estate company. As a result, the former transportation segment is reported as a discontinued operation without any corporate overhead allocation. Hence, all corporate overhead attributable to the transportation group through the date of the spin-off is included in “corporate expense” on the Company’s historical consolidated income statements.

The results of operations associated with discontinued operations for the three and nine month periods ended June 30, 2016 and 2015 were as follows (in thousands):

	Three Months ended				Nine Months ended
	June 30,				June 30,
	2016		2015		2016		2015
Revenue	$	—		—		—		41,800

Cost of operations		—		—		—		38,195
Operating profit		—		—		—		3,605
Interest expense		—		—		—		(33	)
Income before income taxes		—		—		—		3,572
Provision for income taxes		—		—		—		1,393
Income from discontinued operations	$	—		—		—		2,179

The following table presents the carrying value of the major categories of assets and liabilities of discontinued operations reflected on the Company’s consolidated balance sheets at September 30, 2014:

Property and equipment, net	$	42,174
Accounts receivable, net		7,119
Deferred costs		11,809
Other assets		32
Assets of discontinued operation	$	61,134

Line of credit	$	7,282
Accounts payable and accrued liabilities		11,489
Deferred compensation		717
Deferred income taxes		8,924
Liabilities of discontinued operation	$	28,412

(14) Port Capital Property Acquisition. On October 19, 2015, the Company purchased for approximately $9.9 million, 7700 Port Capital Drive in Elkridge, Maryland which consists of 1 building on 6.39 acres totaling 91,218 square feet plus approximately 29,558 square feet of mezzanine space. The Company has accounted for this acquisition in accordance with the provisions of ASC 805, Business Combinations (ASC 805). The Company has allocated the purchase price of the property, through the use of a third party valuation, based upon the fair value of the assets acquired, consisting of land, buildings and intangible assets, including in-place leases. The deferred leasing intangible asset is recorded within Deferred Costs in the consolidated balance sheets. The value of the in-place lease intangibles will be charged to amortization expense over the remaining lease terms.

The Company will recognize the amortization related to the Port Capital Drive property intangible assets according to the following schedule (in thousands):

		In-place
		Leases
Initial Values	$	1,126
Annual Amortization:
2016	$	104
2017		114
2018		114
2019		114
2020		114
2021-2025		566

(15) Subsequent Events. During the 2nd quarter, the Company identified an opportunity to buy the Gilroy Road building located in Hunt Valley, MD, for a purchase price of $8,331,000. The Company closed on this acquisition July 1, 2016. The building is a 116,338 square foot Class “B” warehouse facility inclusive of 8,900 square feet of second floor mezzanine office space (107,438 sf footprint) on 7.0 acres in Hunt Valley, MD. The property is 100% leased.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the consolidated financial information and related notes that appear in Part I, Item 1 of this Quarterly Report on Form 10-Q. The following discussion also presents net operating income (“NOI”) and adjusted operating profit, non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission (“Regulation G”) to supplement the financial results as reported in accordance with GAAP. Management uses these metrics to analyze its continuing operations and to monitor, assess, and identify meaningful trends in its operating and financial performance. These measures are not, and should not be viewed as, a substitute for GAAP financial measures. Refer to “Non-GAAP Financial Measures” below in this Quarterly Report on Form 10-Q for a more detailed discussion, including a reconciliation of NOI to the most directly comparable GAAP financial measure.

Overview – This section provides management's discussion and analysis of the financial condition and results of operations of FRP Holdings, Inc. for the quarter ended June 30, 2016 as well as the first nine months of fiscal year 2016.

FRP Holdings, Inc. (“FRP” or the “Company”) is a holding company engaged in the real estate business, namely (i) warehouse/office building ownership, leasing and management, (ii) mining royalty land ownership, leasing and management, and (iii) land acquisition, entitlement, development and construction mainly for warehouse/office buildings.

On January 30, 2015, FRP completed the tax-free spin-off of its transportation business (“Spin-off”) into a new, separately traded public company, Patriot Transportation Holding, Inc. (“Patriot”). In the Spin-off, FRP distributed all of the outstanding stock of Patriot to FRP’s shareholders as of the record date of January 9, 2015. FRP’s shareholders received one share of Patriot common stock for every three shares of FRP common stock owned on the record date. Patriot is now an independent publicly-traded company, and FRP retains no ownership in Patriot. FRP retained the real estate business, which is now the sole business of the Company. As a result, the former transportation segment is reported as a discontinued operation without any corporate overhead allocation. Hence, all corporate overhead attributable to the transportation group through the date of the spin-off is included in “corporate expense” on the Company’s historical consolidated income statements.

Following the completion of the spin-off of the transportation business, management conducted a strategic review of the Company’s real estate operations. As a result of this review, Management determined that the information that the Company’s chief operating decision makers regularly review for purposes of allocating resources and assessing performance, had changed. Therefore, beginning with the quarter ending June 30, 2015 (with prior periods adjusted accordingly), the Company is reporting its financial performance based on three reportable segments, Asset Management, Mining Royalty Lands and Land Development and Construction, as described below.

Our Mining Royalty Lands segment remains unaffected, but our former Developed Property Rentals segment has been broken down into an Asset Management segment and a Land Development and Construction segment to reflect how management now evaluates the real estate activities previously presented in the Developed Property Rentals segment. The Asset Management segment contains all the developed buildings capable of producing current rental income. The Land Development and Construction segment contains the remaining developable land that is generally in a pre-income

production state where objectives are long term capital investment in an effort to bring such property to income producing status or realization of its fair market value through sales or exchange.

Prior to the quarter ending December 31, 2015 certain corporate expenses (primarily stock compensation, corporate aircraft and one-time Spin-off related expenses) were reported as “unallocated” on the Company’s consolidated income statement and were not allocated to any business segment. Effective with fiscal 2016 all corporate expenses, other than those not allocated to discontinued operations, have been allocated. Reclassifications to the appropriate prior period line items and amounts have been made to be comparable to the current presentation. See Note 3 for a breakdown of corporate expenses showing the amounts allocated to the segments and the unallocated to discontinued operations.

The Company’s operations are influenced by a number of external and internal factors. External factors include levels of economic and industrial activity in the United States and the Southeast, construction activity and costs, aggregates sales by lessees from the Company’s mining properties, interest rates, market conditions in the Baltimore/Northern Virginia/Washington DC area, and our ability to obtain zoning and entitlements necessary for property development. Internal factors include administrative costs and group health claims experience. Financial results of the Company for any individual quarter are not necessarily indicative of results to be expected for the year.

Asset Management Segment.

The Asset Management segment owns, leases and manages warehouse/office buildings located predominately in the Baltimore/Northern Virginia/Washington, DC market area. We focus primarily on owning flexible type facilities that cater to the maximum number of tenant types. As most of our buildings are less than 150,000 square feet, we focus on local and regional vs. national tenants. Hands-on service provided by our in-house construction and property management teams keeps us close to our tenant base. These practices are the cornerstone of our mission to provide the highest quality product and services at competitive rates resulting in tenant satisfaction and ultimately, retention.

These assets create revenue and cash flows through tenant rental payments, lease management fees and reimbursements for building operating costs. The major cash outlays incurred in this segment are for operating expenses, real estate taxes, building repairs, lease commissions and other lease closing costs, construction of tenant improvements, capital to acquire existing operating buildings and closing costs related thereto and personnel costs of our property management team. Of the 41 buildings we own today, 27 were constructed by the Company through what is now known as our Land Development and Construction segment. Additionally, over the years, we have opportunistically acquired 14 existing operating buildings, typically in connection with a deferred like-kind (Section 1031) exchange opportunity. Today, this segment consists of just under 3.8 million square feet.

Management focuses on several factors to measure our success on a comparative basis in this segment. The major factors we focus on are (1) revenue growth, (2) net operating income (cash basis), (3) growth in occupied square feet, (4) actual occupancy rate, (5) average annual occupied square feet, (6) average annual occupancy rate (defined as the occupied square feet at the end of each month during a fiscal year divided by the number of months to date in that fiscal year as a percentage of the average number of square feet in the portfolio over that same time period), (7) growth of our portfolio (in square feet), and (8) tenant retention success rate (as a percentage of total square feet to be renewed).

Asset Management segment – nine months ended	June 30, 2016	June 30, 2015
Revenues	$21,416,000	$20,596,000
Net Operating Income (Cash Basis)	$16,317,000	15,726,000
Occupied square feet	3,319,891	3,256,405
Overall occupancy rate	88.0%	90.4%
Average annual occupied square feet	3,346,303	3,256,962
Average annual occupancy rate	90.0%	90.8%
Portfolio square feet	3,772,927	3,602,159
Retention Success rate	65%	78%

Mining Royalty Lands Segment.

Our Mining Royalty Lands segment owns several properties comprising approximately 15,000 acres currently under lease for mining rents or royalties (this does not include the 4,280 acres owned in our Brooksville joint venture with Vulcan Materials). Other than one location in Virginia, all of these properties are located in Florida and Georgia. The typical lease in this segment requires the tenant to pay us a royalty based on the number of tons of mined materials sold from our property during a given fiscal year multiplied by a percentage of the average annual sales price per ton sold. As a result of this royalty payment structure, we do not bear the cost risks associated with the mining operations, however, we are subject to the cyclical nature of the construction markets in these States as both volumes and prices tend to fluctuate through those cycles. In certain locations, typically where the reserves on our property have been depleted but the tenant still has a need for the leased land, we collect a fixed annual rental amount. We believe strongly in the potential for future growth in construction in Florida and Georgia which would positively benefit our profitability in this segment. Our mining properties had estimated remaining reserves of 438 million tons as of September 30, 2015 after a total of 6.1 million tons were consumed in fiscal 2015.

The major expenses in this segment are comprised of collection and accounting for royalties, management’s oversight of the mining leases, land entitlement for post-mining uses and property taxes at our non-leased locations and at our Grandin location which, unlike our other leased mining locations, are not paid by the tenant. As such, our costs in this business are very low as a percentage of revenue, are relatively stable and are not affected by increases in production at our locations. Our current mining tenants include Vulcan Materials, Martin Marietta and Cemex, among others.

Additionally, these locations provide us with excellent opportunities for valuable “2nd lives” for these assets through proper land planning and entitlement.

Significant “2^nd life” Mining Lands:

Location	Acreage	Status
Brooksville, FL	4,280 +/-	Development of Regional of Impact and County Land Use and Master Zoning in place for 5,800 residential unit, mixed-use development
Ft. Myers, FL	1,993 +/-	Approval in place for 105, 1 acre, waterfront residential lots after mining completed.
Gulf Hammock,FL	1,600 +/-	Currently on the market for $4.5 million
Total	7,873 +/-

Land Development and Construction Segment.

Revenues in this segment are generated predominately from land sales and interim property rents. The significant cash outlays incurred in this segment are for land acquisition costs, entitlement costs, property taxes, design and permitting, the personnel costs of our in-house management team and horizontal and vertical construction costs.

Since 1990, one of our primary strategies in this segment has been to acquire, entitle and ultimately develop commercial/industrial business parks providing 5–15 building pads which we typically convert into warehouse/office buildings. To date, our management team has converted 27 of these pads into developed buildings that we continue to own and manage through the Asset Management segment. Our typical practice has been to transfer these assets to the Asset Management segment on the earlier to occur of (i) commencement of rental revenue or (ii) issuance of the certificate of occupancy. We have also opportunistically sold several of these pad sites over time to third party “users”.

The remaining pad sites in our inventory today are fully entitled, located in business parks in four different submarkets in the DC/Baltimore/Northern Virginia area, and can support an additional approximately 973,603 sq.ft. of warehouse/office buildings.

Summary of Our Remaining Lot Inventory:

Location	Acreage	SF +/-	Status
Lakeside, MD	20	286,500	Horizontal development completed. Ready for vertical permitting.
Windlass Run Business Park, MD	17.5 (50% interest)	164,500 (50% interest)	Company owns a 50% interest in a joint venture formed in April 2016 with St. John Properties. The joint venture owns the 35 acres and plans to develop the land into 12 office buildings for a total of 329,000 sq. ft..
Patriot Business Center, Manassas, VA	25	202,653	Horizontal development completed. Construction in progress on 103,653 sq. ft. warehouse/office building with the balance of the land ready for vertical permitting.
Hollander 95 Business Park, MD	33	319,950	Horizontal development completed. Ready for vertical permitting.
Total	95.5	973,603

We completed a third build-to-suit building for the same tenant at our Patriot Business Park and transferred that asset to the Asset Management segment on or about November 2014 when the building was approved for occupancy. Having sites ready for vertical construction has rewarded us in the past. It is the main reason why we were able to convert 3 of our finished pads at Patriot Business Park into build-to-suit opportunities in 2012, 2013 and 2014. We completed construction on a 79,550 square foot spec building at Hollander Business Park that was put into service in this 3rd quarter of fiscal 2016. Also in the 3^rd quarter of fiscal 2016 we started construction on a 103,653 square foot building in Patriot

Business Center and pre-leased 51,727 square feet. In April, 2016 we entered into a joint venture agreement to develop 12 office buildings on our remaining lots at Windlass Run and on adjacent frontage property owned by St. John Properties. We will continue to actively monitor these submarkets where we have lots ready for construction and take advantage of the opportunities presented to us.

In addition to the inventory of finished building lots, we have several other properties that were either spun-off to us from Florida Rock Industries in 1986 or acquired by us from unrelated 3rd parties. These properties, as a result of our “highest and best use” studies, are being prepared for income generation through sale or joint venture with third parties, and in certain cases we are leasing these properties on an interim basis for an income stream while we wait for the development market to mature.

Our strategy when selling parcels outright is to attempt to convert the proceeds into income producing real estate for our Asset Management segment through a Section 1031 tax-deferred exchange. An example of this is the Windlass Run 179 acre tract purchased for $5.2 million in 2002. When purchased, the entire parcel was zoned for commercial/industrial uses. Today, some 70 acres of this original tract makes up our Windlass Run Business Park. We successfully rezoned the remaining acreage for medium density residential development and on April 17, 2013, we entered into a contract to sell the residential portion of the property for $19 million. The first phase of the Windlass Run residential land was sold for $8 million and the proceeds were used in a Section 1031 exchange to acquire our Transit Business Park in 2013. Phase 2 was sold in November, 2015 for $11.1 million and we used $9.9 million of the proceeds to acquire the fully leased Port Capital Building.

An example of property in this segment being developed through joint venture is Phase I of our RiverFront on the Anacostia project which was contributed to a joint venture with MRP in 2014 and is now under construction as a 305 unit apartment building including 18,000 sq. ft. of ground floor retail.

Significant Investment Lands Inventory:

Location	Approx. Acreage	Status	NBV
Riverfront on the Anacostia Phase I	2.1	Phase I under construction	$11,702,000
Riverfront on the Anacostia Phases II-IV	3.7	Phase II design approval plans were submitted to the Zoning Commission on June 27, 2016.	$10,484,000
Hampstead Trade Center, MD	117	Residential studies ongoing	$7,181,000
Square 664E,on the Anacostia River in DC	2	Under lease to Vulcan Materials as a concrete batch plant through 2021 with one 5 year renewal option.	$4,822,000
Total	125		$34,189,000

RIVERFRONT ON THE ANACOSTIA:

This property consists of 5.8 acres on the Anacostia River and is immediately adjacent to the Washington National’s baseball park in the SE Central Business District of Washington, DC. Once zoned for

industrial use and under a ground lease, this property is no longer under lease and has been re-zoned for the construction of approximately 1.1M square feet of “mixed-use” development in four phases. In 2014, approximately 2.1 acres (Phase I) of the total 5.8 acres was contributed to a joint venture owned by the Company (77%) and our partner, MRP Realty (23%), and construction commenced in October 2014 on a 305 unit residential apartment building with approximately 18,000 sq. ft. of first floor retail space. Lease up commenced in May 2016 and is expected to continue into fiscal 2017. Pre-leasing activity for the 305 residential units commenced in late May of 2016 and as of July 18^th the residential units were 18.8% pre-leased with occupancy not expected until August 2016. Phases II, III and IV are slated for residential, office, and hotel/residential buildings, respectively, all with permitted first floor retail uses. The company and MRP Realty executed a letter of intent in May 2016 to develop Phase II. In accordance with our Master Planned Unit Development (PUD) approval, Phase II plans were submitted to the Zoning Commission for final design approval on June 27, 2016.

HAMPSTEAD TRADE CENTER: We purchased this 117 acre tract in 2005 for $4.3 million in a Section 1031 exchange with plans of developing it as a commercial business park. The “great recession” caused us to reassess our plans for this property. As a result, Management determined that the prudent course of action is to attempt to rezone the property for residential uses and sell the entire tract to another developer such that we can redeploy this capital into an asset with more near-term income producing potential. Residential studies are on-going today.

SQUARE 664E, WASHINGTON, DC

This property sits on the Anacostia River at the base of South Capitol Street in an area named Buzzard Point, approximately 1 mile down river from our RiverFront on the Anacostia property. The Square 664E property consists of approximately 2 acres and is currently under lease to Vulcan Materials for use as a concrete batch plant. The lease terminates on August 31, 2021 and Vulcan has the option to renew for one additional period of five (5) years. In the quarter ending December 31, 2014, the District of Columbia announced that it had selected Buzzard Point for the future site of the new DC United major league soccer stadium. The selected stadium location is separated from our property by just one small industrial lot.

Comparative Results of Operations for the Three months ended June 30, 2016 and 2015

Consolidated Results

	THREE MONTHS ENDED
	JUNE 30
	2016		2015		Change			%
Revenues:
Rental Revenue	$	6,082		5,784		298			5.2	%
Royalty and Rents		2,033		1,714		319			18.6	%
Revenue-Reimbursements		1,128		999		129			12.9	%
Total Revenues		9,243		8,497		746			8.8	%

Cost of operations:
Depreciation/Depletion/Amortization		2,066		1,805		261			14.5	%
Operating Expenses		974		818		156			19.1	%
Environmental remediation expense		2,000		—		2,000			0.0	%
Property Taxes		1,128		994		134			13.5	%
Mgmt Co Allocation-In		425		434		(9	)		-2.1	%
Corporate Expense		684		557		127			22.8	%
Corp Mgmt fee not alloc. to discontinued operations		—		—		—			0.0	%
Total cost of operations		7,277		4,608		2,669			57.9	%

Total operating profit		1,966		3,889		(1,923	)	-49.4	%

Interest Income and other		—		—		—		0.0	%
Interest Expense		(392	)	(459	)	67		-14.6	%
Equity in loss of joint ventures		(186	)	(75	)	(111	)	148.0	%
Gain (loss) on investment land sold		(109	)	—		(109	)	0.0	%

Income before income taxes		1,279		3,355		(2,076	)	-61.9	%
Provision for income taxes		505		1,309		(804	)	-61.4	%

Net income	$	774		2,046		(1,272	)	-62.2	%

Net income for the third quarter of fiscal 2016 was $774,000 or $.08 per share versus $2,046,000 or $.21 per share in the third quarter last year. Total revenues were $9,243,000, up $746,000, or 8.8%, versus the same quarter last year. Total cost of operations increased $2,669,000, or 57.9%, as the Company recorded an environmental remediation expense of $2.0 million for the Company’s estimated liability under the proposed agreement with our joint venture partner, MRP, to develop Phase II of Riverfront on the Anacostia. Consolidated total operating profit decreased by $1,923,000, or 49.4%, to $1,966,000 this quarter.

During fiscal 2015, management analyzed the amount of corporate and management company time likely to be spent on our segments going forward and, as a result, the allocation of corporate expense to the Mining Royalty Lands segment was reduced and reallocated to our other two segments (the “Reallocation”).

Asset Management Segment Results

Highlights of the Third quarter 2016:

Revenue up $418,000, or 6.4%, over the same quarter last year due to the addition of income producing square feet to our portfolio.

	Three months ended June 30
(dollars in thousands)	2016		%			2015		%			Change			%

Rental revenue	$	5,952		85.9	%		5,684		87.3	%		268			4.7	%
Revenue-reimbursements		975		14.1	%		825		12.7	%		150			18.2	%

Total revenue		6,927		100.0	%		6,509		100.0	%		418			6.4	%

Depreciation, depletion and amortization		1,985		28.7	%		1,694		26.0	%		291			17.2	%
Operating expenses		774		11.2	%		730		11.2	%		44			6.0	%
Property taxes		668		9.6	%		551		8.5	%		117			21.2	%
Management company indirect		182		2.6	%		245		3.8	%		(63	)		-25.7	%
Corporate expense		354		5.1	%		210		3.2	%		144			68.6	%

Cost of operations		3,963		57.2	%		3,430		52.7	%		533			15.5	%

Operating profit	$	2,964		42.8	%		3,079		47.3	%		(115	)		-3.7	%

Total revenues in this segment were $6,927,000, up $418,000 or 6.4%, over the same quarter last year. Net Operating Income in this segment for the 3rd quarter was $5,485,000, compared to $5,273,000 in the 3rd quarter last year, an increase of 4%. The increase was mainly due to the acquisition of the Port Capital building in Baltimore in October of 2015. We ended this quarter with total occupied square feet of 3,319,891 versus 3,256,405 at the end of the 3rd quarter last year, an increase of 1.9% or 63,486 square feet.

Depreciation and amortization expense increased primarily due to $139,000 of accelerated depreciation for tenant improvements removed during the quarter for a new tenant and the Port Capital purchase. Corporate expense increased due to the Reallocation and higher professional fees.

During the 2nd quarter, the Company identified an opportunity to buy the Gilroy Road building located in Hunt Valley, MD, for a purchase price of $8,331,000. The Company closed on this acquisition July 1, 2016. The building is a 116,338 square foot Class “B” warehouse facility inclusive of 8,900 square feet of second floor mezzanine office space (107,438 sf footprint) on 7.0 acres in Hunt Valley, MD. The property is 100% leased. Rental revenue (excluding reimbursements) is projected to be $755,000 in fiscal 2017.

Mining Royalty Land Results

Highlights of the Third quarter 2016:

Royalty and rents revenue were up $321,000, or 18.7%, as tons mined continued to increase at several of our locations.

	Three months ended June 30
(dollars in thousands)	2016		%			2015		%

Royalty and rents	$	2,035		98.8	%		1,714		98.8	%
Revenue-reimbursements		24		1.2	%		21		1.2	%

Total revenue		2,059		100.0	%		1,735		100.0	%

Depreciation, depletion and amortization		15		0.7	%		39		2.2	%
Operating expenses		45		2.2	%		66		3.8	%
Property taxes		59		2.9	%		54		3.1	%
Corporate expense		52		2.5	%		223		12.9	%

Cost of operations		171		8.3	%		382		22.0	%

Operating profit	$	1,888		91.7	%		1,353		78.0	%

Total revenues in this segment were $2,059,000, an increase of 18.7%, versus $1,735,000 in the same quarter last year due to an increase in tons sold at locations over the minimum. Total operating profit in this segment was $1,888,000, an increase of $535,000 (inclusive of a $171,000 benefit from the Reallocation), versus $1,353,000 in the third quarter of last year.

Land Development and Construction Segment Results

Highlights of the Third quarter 2016:

The Company executed a letter of intent with MRP Realty in May 2016 to develop Phase II of the Riverfront on the Anacostia project and recorded an estimated environmental remediation expense of $2.0 million for the Company’s estimated liability under the proposed agreement.

	Three months ended June 30
(dollars in thousands)	2016			2015			Change

Rental revenue	$	130			100			30
Royalty and rents		(2	)		—			(2	)
Revenue-reimbursements		129			153			(24	)

Total revenue		257			253			4

Depreciation, depletion and amortization		66			72			(6	)
Operating expenses		155			22			133
Environmental remediation expense		2,000			—			2,000
Property taxes		401			389			12
Management company indirect		243			189			54
Corporate expense		278			124			154

Cost of operations		3,143			796			2,347

Operating loss	$	(2,886	)		(543	)		(2,343	)

The Land Development and Construction segment is responsible for (i) seeking out and identifying opportunistic purchases of income producing warehouse/office buildings, and (ii) developing our non-income producing properties into income production. Construction of the 79,550 square foot spec warehouse at Hollander Business park was completed during the third quarter of this fiscal year and, upon receipt of a Certificate of Occupancy, was transferred to the Asset Management segment for lease-up. Also in the 3rd quarter of fiscal 2016 we started construction on a 103,653 square foot building in Patriot Business Center and pre-leased 51,727 square feet.

Operating expenses were higher than the same quarter last year primarily due to professional fees pursuing settlement negotiations with other potentially responsible parties for environmental contamination and an eminent domain proceeding both at Riverfront on the Anacostia.

During the 2nd quarter, we entered into an agreement with a substantial Baltimore development company (St. John Properties, Inc.) to jointly develop the remaining lands of our Windlass Run Business Park. The 50/50 partnership initially calls for FRP to combine its 25 acres (valued at $7,500,000) with St. John Properties’ adjacent 10 acres fronting on a major state highway (valued at $3,239,536) which resulted in an initial cash distribution of $2,130,232 to FRP in May, 2016. Thereafter, the venture will jointly develop the combined properties into a multi-building business park to consist of approximately 329,000 square feet of single story office space.

Comparative Results of Operations for the Nine months ended June 30, 2016 and 2015

Consolidated Results

	NINE MONTHS ENDED
	JUNE 30
	2016			2015			Change			%
Revenues:
Rental Revenue	$	18,198			17,531			667			3.8	%
Royalty and Rents		5,427			4,349			1,078			24.8	%
Revenue-Reimbursements		4,056			3,867			189			4.9	%
Total Revenues		27,681			25,747			1,934			7.5	%

Cost of operations:
Depreciation/Depletion/Amortization		5,891			5,566			325			5.8	%
Operating Expenses		3,478			3,487			(9	)		-0.3	%
Environmental remediation recovery		(1,000	)		—			(1,000	)		—
Property Taxes		3,388			3,323			65			2.0	%
Mgmt Co Allocation-In		1,425			1,228			197			16.0	%
Corporate Expense		2,424			2,669			(245	)		-9.2	%
Corp Mgmt fee not alloc. to discontinued operations		—			1,081			(1,081	)		-100.0	%
Total cost of operations		15,606			17,354			(1,748	)		-10.1	%

Total operating profit		12,075			8,393			3,682			43.9	%

Interest Income and other		2			—			2			—
Interest Expense		(1,288	)		(1,524	)		236			-15.5	%
Equity in loss of joint ventures		(326	)		(255	)		(71	)		27.8	%
Gain (loss) on investment land sold		6,177			(20	)		6,197			—

Income before income taxes		16,640			6,594			10,046			152.4	%
Provision for income taxes		6,573			2,572			4,001			155.6	%
Income from continuing operations		10,067			4,022			6,045			150.3	%

Gain from discontinued operations, net		—			2,179			(2,179	)		(100.0	)%

Net income	$	10,067			6,201			3,866			62.3	%

Income from continuing operations for the first nine months of fiscal 2016 was $10,067,000 or $1.02 per share versus $4,022,000 or $.41 per share in the first nine months last year. The first nine months of fiscal 2016 included $.44 per share from a gain on land sale of $6,177,000 and income of $1,000,000 from the $3 million environmental claim cash settlement received offset by a $2 million estimated liability for environmental remediation on Phase II.

Post Spin-off we are reporting any net gain/(loss) from the transportation business as “discontinued operations” and we currently have no other discontinued operations being reported. For the nine months ended June 30, 2016 we received no benefit to after tax net income versus a $2,179,000 benefit in the same period last year. Additionally, GAAP accounting rules do not allow corporate overhead expense to be allocated to a discontinued operation of the Company which resulted in the first nine months of fiscal 2015 including $1,081,000 of corporate overhead expense to the Company that was associated with the discontinued transportation operations.

Total revenues were up $1,934,000, or 7.5%, versus the same period last year.

Consolidated adjusted total operating profit in the first nine months of the year (excluding the positive impacts of the environmental settlement/expense (net) in this period and the negative impact of corporate expense not allocable to discontinued operations in the prior year) was up 16.9% over the same period last year (see table “Non-GAAP Financial Measures).

Asset Management Segment Results

Highlights of the First Nine months of 2016:

Revenue was up $820,000, or 4.0%, over the same period last year due to the addition of income producing square feet to our portfolio.

	Nine months ended June 30
(dollars in thousands)	2016		%			2015		%			Change			%

Rental revenue	$	17,818		83.2	%		17,183		83.4	%		635			3.7	%
Revenue-reimbursements		3,598		16.8	%		3,413		16.6	%		185			5.4	%

Total revenue		21,416		100.0	%		20,596		100.0	%		820			4.0	%

Depreciation, depletion and amortization		5,618		26.2	%		5,256		25.5	%		362			6.9	%
Operating expenses		3,043		14.2	%		2,931		14.2	%		112			3.8	%
Property taxes		1,989		9.3	%		2,003		9.7	%		(14	)		-0.7	%
Management company indirect		637		3.0	%		544		2.7	%		93			17.1	%
Corporate expense		1,252		5.8	%		1,007		4.9	%		245			24.3	%

Cost of operations		12,539		58.5	%		11,741		57.0	%		798			6.8	%

Operating profit	$	8,877		41.5	%		8,855		43.0	%		22			0.2	%

Total revenues in this segment were $21,416,000, up $820,000 or 4.0%, over the same period last year. Net operating income in this segment for the period was $16,317,000, compared to $15,726,000 in the 3rd quarter last year, an increase of 3.8%. The increase was due mainly to completion of the third build-to-suit in the middle of the 2nd quarter last year and the acquisition of the Port Capital building in October of 2015.

Depreciation and amortization expense increased primarily due to $139,000 of accelerated depreciation for tenant improvements removed during the current quarter for a new tenant and the Port Capital purchase. Corporate expense increased due to the Reallocation and higher professional fees.

Mining Royalty Land Results

Highlights of the First Nine months of 2016:

Royalty and rents revenue were up $1,080,000, or 25%, as tons sold continued to increase at several of our locations.

	Nine months ended June 30
(dollars in thousands)	2016		%			2015		%

Royalty and rents	$	5,429		98.8	%		4,349		98.5	%
Revenue-reimbursements		67		1.2	%		65		1.5	%

Total revenue		5,496		100.0	%		4,414		100.0	%

Depreciation, depletion and amortization		80		1.5	%		100		2.3	%
Operating expenses		125		2.3	%		180		4.1	%
Property taxes		177		3.2	%		167		3.8	%
Corporate expense		182		3.3	%		1,067		24.1	%

Cost of operations		564		10.3	%		1,514		34.3	%

Operating profit	$	4,932		89.7	%		2,900		65.7	%

Total revenues in this segment were $5,496,000, an increase of 24.5%, versus $4,414,000 in the same period last year due to an increase in tons sold. Total operating profit in this segment was $4,932,000, an increase of $2,032,000 (inclusive of a $885,000 benefit from the Reallocation), versus $2,900,000 in the first nine months of last year.

Land Development and Construction Segment Results

Highlights of the First Nine months of 2016:

Property taxes at our Anacostia location increased significantly contributing to a $69,000 increase in property taxes this period versus the same period last year.

	Nine months ended June 30
(dollars in thousands)	2016			2015			Change

Rental revenue	$	380			348			32
Royalty and rents		(2	)		—			(2	)
Revenue-reimbursements		391			389			2

Total revenue		769			737			32

Depreciation, depletion and amortization		193			210			(17	)
Operating expenses		310			376			(66	)
Environmental remediation recovery		(1,000	)		—			(1,000	)
Property taxes		1,222			1,153			69
Management company indirect		788			684			104
Corporate expense		990			595			395

Cost of operations		2,503			3,018			(515	)

Operating loss	$	(1,734	)		(2,281	)		547

In addition to the items occurring in the 3rd quarter as outlined above, during the first nine months of

fiscal 2016 this segment successfully closed on the sale of Phase II of the Windlass Run residential land (a non-income producing property) for $11,288,000. Using $9,900,000 of the proceeds from that sale in a Section 1031 exchange, the Asset Management segment acquired the Port Capital building, a 91,218 square foot, 100% occupied warehouse with first full year projected rental revenue of $594,000. Management successfully completed negotiations and entered into a $3,000,000 settlement of environmental claims against our former tenant at the Riverfront on the Anacostia property and continues to pursue settlement negotiations with other potentially responsible parties. This recovery was mostly offset by the recordation of environmental remediation expense of $2.0 million for Phase II.

Liquidity and Capital Resources. The growth of the Company’s businesses requires significant cash needs to acquire and develop land or operating buildings and to construct new buildings and tenant improvements. As of June 30, 2016, we had no debt outstanding under our $20 million revolver, $2,442,000 letters of credit and $17,558,000 available to borrow under the revolver. The Company closed on a $20 Million secured revolver with First Tennessee Bank on July 24, 2015 to provide additional liquidity for growth opportunities. As of June 30, 2016, there was no debt outstanding on the First Tennessee Bank revolver. First Tennessee has also committed to provide an additional $20 Million of secured financing to the Company on a ten year term loan amortizing on a twenty five (25) year basis and we anticipate closing on this loan during calendar 2016.

Cash Flows - The following table summarizes our cash flows from operating, investing and financing activities for each of the periods presented (in thousands of dollars):

		Nine months
		Ended June 30,
		2016		2015
Total cash provided by (used for):
Operating activities	$	13,680			13,177
Investing activities		(67	)		(6,745	)
Financing activities		(10,563	)		(6,706	)
Decrease in cash and cash equivalents	$	3,050			(274	)

Outstanding debt at the beginning of the period	$	48,685			55,956
Outstanding debt at the end of the period	$	37,081			49,875

Operating Activities - Net cash provided by operating activities increased $503,000 to $13,680,000 for the nine months ended June 30, 2016. The total of net income plus depreciation, depletion and amortization less gains on sales of property and equipment decreased $2,012,000 versus the same period last year. These changes are described above under “Comparative Results of Operations”. The current period includes $4,220,000 less cash used to reduce accounts payable and accrued liabilities. The current period includes $2,660,000 larger increases to deferred and current income tax payables due to a 1031 exchange and other timing differences. Income and net cash from discontinued operations provided $4,984,000 benefit to the same period last year.

Investing Activities - For the nine months ended June 30, 2016, cash required by investing activities decreased $6,678,000 to $67,000. The prior period discontinued operations cash required was $2,694,000 higher. Cash required by investing activities for continuing operations decreased $3,984,000 due to higher construction activity in the same period last year. Proceeds from the sale of the Windlass Run Residential Phase 2 property of $11,288,000 was used in a tax deferred reverse Section 1031

exchange to acquire the Port Capital property for a total purchase price of $9,900,000.

Financing Activities – For the nine months ended June 30, 2016, cash required by financing activities was $10,563,000 versus $6,706,000 in the nine months ended June 30, 2015. The prior period discontinued operations cash required was $1,631,000 higher. Cash required by financing activities for continuing operations was $5,488,000 higher in the current period primarily due to payments on the revolver.

Credit Facilities - On January 30, 2015, in connection with the Spin-off, the Company terminated its $55 million credit facility entered into with Wells Fargo Bank, N.A. in 2012 and simultaneously entered into a new five year credit agreement with Wells Fargo with a maximum facility amount of $20 million (the "Credit Agreement"). The Credit Agreement provides a revolving credit facility (the “Revolver”) with a $10 million sublimit available for standby letters of credit. At the time of the Spin-off, the Company refinanced $10,483,000 of borrowings then outstanding on the terminated revolver. As of June 30, 2016, there was no debt outstanding on the revolver, $2,442,000 letters of credit and $17,558,000 available for borrowing. The letters of credit were issued to guarantee certain obligations to state agencies related to real estate development. Most of the letters of credit are irrevocable for a period of one year and typically are automatically extended for additional one-year periods. The Revolver bears interest at a rate of 1.4% over the selected LIBOR, which may change quarterly based on the Company’s ratio of Consolidated Total Debt to Consolidated Total Capital, as defined. A commitment fee of 0.15% per annum is payable quarterly on the unused portion of the commitment. The commitment fee may also change quarterly based upon the ratio described above. The credit agreement contains certain conditions and financial covenants, including a minimum $110 million tangible net worth. As of June 30, 2016, the tangible net worth covenant would have limited our ability to pay dividends or repurchase stock with borrowed funds to a maximum of $83 million combined. The Company was in compliance with all covenants as of June 30, 2016.

During the first quarter of fiscal 2015, the Company announced the execution of a commitment from First Tennessee Bank to provide up to $40 million dollars of mortgage backed financing in two separate facilities. On July 24, 2015 the Company closed on a five year, $20 million secured revolver with a twenty-four month window to convert up to the full amount of the facility into a ten year term loan. Interest accrues at 1.90% over one month LIBOR plus an annual commitment fee of 0.10%. As of June 30, 2016, there was no debt outstanding on the revolver. The second facility is a $20 million ten year term loan secured by to-be-determined collateral from our current pool of unencumbered warehouse/office properties. The purpose of these loans is to facilitate growth through new construction in the Land Development and Construction segment and/or acquisition of existing, operating buildings to be added to the Asset Management segment.

Cash Requirements – The Board of Directors has authorized Management to repurchase shares of the Company’s common stock from time to time as opportunities arise. During the first nine months of fiscal 2016 the Company repurchased 1,421 shares of stock. As of June 30, 2016, $4,957,000 was authorized for future repurchases of common stock. The Company does not currently pay any cash dividends on common stock.

The Company currently expects its fiscal 2016 capital expenditures to include approximately $28,000,000 for real estate development and acquisitions, of which $12,969,000 has been expended to date (inclusive of the Port Capital acquisition using 1031 funds), which will be funded mostly out of cash generation from operations and property sales or partly from borrowings under our credit facilities.

Summary and Outlook. We are focused on building shareholder value through our real estate holdings - mainly by growing our portfolio through the opportunistic purchase of income producing warehouse/office buildings, and the conversion of our non-income producing assets into income production through a two pronged approach that includes (i) selling land that is not conducive to warehouse/office development (e.g. Windlass Run Residential Phase 2 land) and using the proceeds to acquire existing income producing warehouse/office buildings typically in a Section 1031 exchange (e.g. the Port Capital building purchase) and (ii) the construction of new warehouse/office buildings on existing pad sites in our developed business parks (e.g. new spec building at Hollander Business Park). Over the past five years, we have converted 172 acres of non-income producing land into 766,216 square feet of income producing properties (excluding the recently completed spec building) with estimated FY 2016 rental revenues of $5,587,000.

We saw another quarter of real improvement in mining royalties due mainly to increased volumes at most of our locations.

During the remainder of fiscal 2016, we expect to continue construction on a new 104,000 sq.ft. spec building at Patriot Business Park, reconstruct the bulk head at the Square 664E property in anticipation of future high-rise development, and continue management of construction and lease up of Phase I (Dock 79) of RiverFront on the Anacostia and pre-development activities for Phase II. Phase I pre-leasing activity for the 305 residential units commenced in late May of 2016 and as of July 18th the residential units were 18.8% pre-leased with occupancy not expected until August 2016.

Non-GAAP Financial Measures.

To supplement the financial results presented in accordance with GAAP, FRP presents certain non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The non-GAAP financial measures included in this quarterly report are adjusted operating profit and net operating income (NOI). FRP uses these non-GAAP financial measures to analyze its continuing operations and to monitor, assess, and identify meaningful trends in its operating and financial performance. These measures are not, and should not be viewed as, substitutes for GAAP financial measures.

Post Spin-off we are reporting any net gain/(loss) from the transportation business as “discontinued operations” and we currently have no other discontinued operations being reported. GAAP accounting rules do not allow corporate overhead expenses to be allocated to a discontinued operation of the Company; thus, those corporate expenses attributable to the transportation business prior to the spin-off are charged to the Company as part of continuing operations.

Adjusted Operating Profit

Adjusted operating profit excludes the impact of the corporate expense not allocated to discontinued operations and the environmental remediation recovery. Adjusted operating profit is presented to provide additional perspective on underlying trends in FRP’s core operating results. A reconciliation between operating profit and adjusted operating profit is as follows:

Adjusted Operating Profit	Nine months ended
	June 30,
	2016			2015		Change		%
Operating profit	$	12,075			8,393		3,682		43.9	%
Adjustments:
Environmental remediation recovery		(1,000	)		—
Corporate costs not allocated to discontinued operations		—			1,081
Adjusted Operating profit	$	11,075			9,474		1,601		16.9	%

Net Operating Income Reconciliation
Three months ending 06/30/16 (in thousands)

	Asset	Land		Mining	Unallocated	FRP
	Management	Development		Royalties	Corporate	Holdings
	Segment	Segment		Segment	Expenses	Totals

Income from continuing operations	$ 1,556	(1,927	)	1,145	—	774
Income Tax Allocation	1,016	(1,259	)	748	—	505
Inc. from continuing operations before income taxes	2,572	(3,186	)	1,893	—	1,279

Less:
Lease intangible rents	5	—
Plus:
Unrealized rents	5	—
Equity in loss of Joint Venture	—	176
Loss on investment land sold	—	124
Interest Expense	392	—
Depreciation/Amortization	1,985	66
Management Co. Indirect	182	243
Allocated Corporate Expenses	354	278

Net Operating Income (loss)	$ 5,485	(2,299	)

Net Operating Income Reconciliation
Nine months ending 06/30/16 (in thousands)

	Asset	Land	Mining	Unallocated	FRP
	Management	Development	Royalties	Corporate	Holdings
	Segment	Segment	Segment	Expenses	Totals

Income from continuing operations	$ 4,596	2,496	2,975	—	10,067
Income Tax Allocation	3,002	1,629	1,942	—	6,573
Inc. from continuing operations before income taxes	7,598	4,125	4,917	—	16,640

Less:
Gains on investment land sold	9	6,153
Other income	—	2
Unrealized rents	44	—
Lease intangible rents	23	—
Plus:
Equity in loss of Joint Venture	—	296
Interest Expense	1,288	—
Depreciation/Amortization	5,618	193
Management Co. Indirect	637	788
Allocated Corporate Expenses	1,252	990

Net Operating Income	$ 16,317	237

Net Operating Income Reconciliation
Three months ending 06/30/15 (in thousands)

	Asset	Land		Mining	Unallocated	FRP
	Management	Development		Royalties	Corporate	Holdings
	Segment	Segment		Segment	Expenses	Totals

Income from continuing operations	$ 1,611	(383	)	818	-	2,046
Income Tax Allocation	1,030	(244	)	523	-	1,309
Inc. from continuing operations before income taxes	2,641	(627	)	1,341	-	3,355

Less:
Gains on investment land sold	20	—
Lease intangible rents	14	—
Plus:
Loss on investment land sold	—	20
Unrealized rents	59	—
Equity in loss of Joint Venture	—	64
Interest Expense	458	—
Depreciation/Amortization	1,694	72
Management Co. Indirect	245	189
Allocated Corporate Expenses	210	124

Net Operating Income (loss)	$ 5,273	(158	)

Net Operating Income Reconciliation
Nine months ending 06/30/15 (in thousands)

	Asset	Land		Mining	Unallocated	FRP
	Management	Development		Royalties	Corporate	Holdings
	Segment	Segment		Segment	Expenses	Totals

Income from continuing operations	$ 4,503	(1,541	)	1,720	(660)	4,022
Income Tax Allocation	2,879	(986	)	1,100	(421)	2,572
Inc. from continuing operations before income taxes	7,382	(2,527	)	2,820	(1,081)	6,594

Less:
Lease intangible rents	39	—
Plus:
Loss on investment land sold	—	20
Unrealized rents	103	—
Equity in loss of Joint Venture	—	226
Interest Expense	1,473	—
Depreciation/Amortization	5,256	210
Management Co. Indirect	544	684
Allocated Corporate Expenses	1,007	595

Net Operating Income	$ 15,726	(792	)

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS

Interest Rate Risk - We are exposed to the impact of interest rate changes through our variable-rate borrowings under Credit Agreements with Wells Fargo and First Tennessee Bank.

Under the Wells Fargo Credit Agreement, the applicable margin for borrowings at June 30, 2016 was 1.4%. The applicable margin for such borrowings will be reduced or increased in the event that our debt to capitalization ratio as calculated under the Wells Fargo Credit Agreement Facility exceeds a target level.

The applicable borrowing margin at June 30, 2016 with First Tennessee Bank was 1.9%.

ITEM 4. CONTROLS AND PROCEDURES

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), as appropriate, to allow timely decisions regarding required disclosure.

The Company also maintains a system of internal accounting controls over financial reporting that are designed to provide reasonable assurance to the Company’s management and Board of Directors regarding the preparation and fair presentation of published financial statements.

All control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving the desired control objectives.

As of June 30, 2016, the Company, under the supervision and with the participation of the Company's management, including the CEO, CFO and CAO, carried out an evaluation of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on this evaluation, the Company’s CEO, CFO and CAO concluded that the Company's disclosure controls and procedures are effective in alerting them in a timely manner to material information required to be included in periodic SEC filings.

There have been no changes in the Company’s internal controls over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors

discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended September 30, 2015, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Item 2. PURCHASES OF EQUITY SECURITIES BY THE ISSUER

(c)

Total

Number of

(d)

Purchased

Approximate

(a)

As Part of

Dollar Value of

Total

(b)

Publicly

Shares that May

Number of

Average

Announced

Yet Be Purchased

Price Paid

Plans or

Under the Plans

Period

Purchased

per Share

Programs

or Programs (1)

April 1

Through

April 30

—

5,000,000

May 1

Through

May 31

—

5,000,000

June 1

Through

June 30

1,421

30.32

1,421

4,957,000

Total

1,421

30.32

1,421

(1) On February 4, 2015, the Board of Directors authorized management to expend up to $5,000,000 to repurchase shares of the Company’s common stock from time to time as opportunities arise.

Item 6. EXHIBITS

(a)

Exhibits. The response to this item is submitted as a separate Section entitled "Exhibit Index", on page 39.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

		FRP Holdings, Inc.


Date: August 2, 2016	By	THOMPSON S. BAKER II
		Thompson S. Baker II
		Chief Executive Officer
		(Principal Executive Officer)


	By	JOHN D. MILTON, JR.
		John D. Milton, Jr.
		Executive Vice President, Treasurer,
		Secretary and Chief Financial Officer
		(Principal Financial Officer)


	By	JOHN D. KLOPFENSTEIN
		John D. Klopfenstein
		Controller and Chief Accounting
		Officer (Principal Accounting Officer)

FRP HOLDINGS, INC.

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2016

EXHIBIT INDEX

(14)	Financial Code of Ethical Conduct between the Company, Chief Executive Officers and Financial Managers, as revised on January 28, 2004, which is available on the Company’s website at www.frpholdings.com.
(31)(a)	Certification of Thompson S. Baker II.
(31)(b)	Certification of John D. Milton, Jr.
(31)(c)	Certification of John D. Klopfenstein.
(32)	Certification of Chief Executive Officer, Chief Financial Officer, and Chief Accounting Officer under Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS	XBRL Instance Document
101.XSD	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

CERTIFICATIONS Exhibit 31(a)

I, Thompson S. Baker II, certify that:

I have reviewed this report on Form 10-Q of FRP Holdings, Inc.;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

designed such disclosure controls and procedures, or caused such disclosure controls to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosures controls and procedures, as of the end of the period covered by this report based on such evaluation; and

disclosed in this report any changes in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial report; and

The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

all significant deficiencies in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2016 /s/Thompson S. Baker II

Chief Executive Officer

CERTIFICATIONS Exhibit 31(b)

I, John D. Milton, Jr., certify that:

I have reviewed this report on Form 10-Q of FRP Holdings, Inc.;

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2016 /s/John D. Milton, Jr.

Executive Vice President, Treasurer,

Secretary and Chief Financial Officer

CERTIFICATIONS Exhibit 31(c)

I, John D. Klopfenstein, certify that:

I have reviewed this report on Form 10-Q of FRP Holdings, Inc.;

any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2016 /s/John D. Klopfenstein

Controller and Chief Accounting Officer

Exhibit 32

CERTIFICATION UNDER SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned certifies that this periodic report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in this periodic report fairly presents, in all material respects, the financial condition and results of operations of FRP Holdings, Inc.

August 2, 2016 FRP HOLDINGS, INC.

/s/THOMPSON S. BAKER II

Thompson S. Baker II

Chief Executive Officer

/s/JOHN D. MILTON, JR.

John D. Milton, Jr.

Executive Vice President, treasurer, Secretary and

Chief Financial Officer

/s/JOHN D. KLOPFENSTEIN

John D. Klopfenstein

Controller and Chief Accounting Officer

A signed original of this written statement required by Section 906 has been provided to FRP Holdings, Inc. and will be retained by FRP Holdings, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification accompanies the issuer’s Quarterly report on Form 10-Q and is not filed as provided in SEC Release Nos. 33-8212, 34-4751 and IC-25967, dated June 30, 2003.

Document and Entity Information	9 Months Ended
Document and Entity Information	Jun. 30, 2016 shares
Document And Entity Information
Entity Registrant Name	FRP HOLDINGS, INC.
Entity Central Index Key	0000844059
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--09-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	9,862,379
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2016

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Assets:
Land	$ 97,850	$ 102,347
Buildings and improvements	186,434	174,820
Projects under construction	2,399	4,129
Total investments in properties	286,683	281,296
Less accumulated depreciation and depletion	78,919	74,091
Net investments in properties	207,764	207,205
Real estate held for investment, at cost	7,306	7,306
Real estate held for sale, at cost	0	4,826
Investment in joint ventures	24,139	19,010
Net real estate investments	239,209	238,347
Cash and cash equivalents	3,469	419
Accounts receivable	886	778
Federal and state income taxes receivable	0	393
Unrealized rents	4,905	4,817
Deferred costs	6,436	7,449
Other assets	677	275
Total assets	255,582	252,478
Liabilities:
Lines of credit payable	0	8,494
Secured notes payable, current portion	4,384	4,180
Secured notes payable, less current portion	32,697	36,011
Accounts payable and accrued liabilities	3,259	3,456
Environmental remediation liability	2,039	51
Federal and state income taxes payable	275	0
Deferred revenue	46	1,060
Deferred income taxes	16,406	14,541
Deferred compensation	1,486	1,400
Deferred lease intangible, net	20	45
Tenant security deposits	973	898
Total liabilities	61,585	70,136
Commitments and contingencies (Note 8)
Shareholders' Equity:
Common stock, $.10 par value; 25,000,000 shares authorized, 9,862,379 and 9,791,770 shares issued and outstanding, respectively	986	979
Capital in excess of par value	51,488	49,872
Retained earnings	141,529	131,497
Accumulated other comprehensive loss, net	(6)	(6)
Total shareholders' equity	193,997	182,342
Total liabilities and shareholders' equity	$ 255,582	$ 252,478

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2016	Sep. 30, 2015
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.10	$ 0.10
Common stock, shares authorized	25,000,000	25,000,000
Common stock, shares issued and outstanding	9,862,379	9,791,770

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Consolidated Statements of Income - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Rental revenue	$ 6,082	$ 5,784	$ 18,198	$ 17,531
Royalty and rents	2,033	1,714	5,427	4,349
Revenue - reimbursements	1,128	999	4,056	3,867
Total revenues	9,243	8,497	27,681	25,747
Cost of operations:
Depreciation, depletion and amortization	2,066	1,805	5,891	5,566
Operating expenses	974	818	3,478	3,487
Environmental remediation expense (recovery)	2,000	0	(1,000)	0
Property taxes	1,128	994	3,388	3,323
Management company indirect	425	434	1,425	1,228
Corporate expenses (Note 4 Related Party)	684	557	2,424	3,750
Total cost of operations	7,277	4,608	15,606	17,354
Total operating profit	1,966	3,889	12,075	8,393
Interest income	0	0	2	0
Interest expense	(392)	(459)	(1,288)	(1,524)
Equity in loss of joint ventures	(186)	(75)	(326)	(255)
Gain (loss) on investment land sold	(109)	0	6,177	(20)
Income from continuing operations before income taxes	1,279	3,355	16,640	6,594
Provision for income taxes	505	1,309	6,573	2,572
Income from continuing operations	774	2,046	10,067	4,022
Gain from discontinued transportation operations, net of taxes	0	0	0	2,179
Net income	774	2,046	10,067	6,201
Comprehensive net income	$ 774	$ 2,046	$ 10,067	$ 6,201
Basic earnings per common share
Income from continuing operations	$ .08	$ .21	$ 1.02	$ .41
Discontinued operations	0.00	0.00	0.00	0.23
Net income	.08	.21	1.02	0.64
Diluted earnings per common share
Income from continuing operations	.08	.21	1.02	.41
Discontinued operations	0.00	0.00	0.00	0.22
Net income	$ .08	$ .21	$ 1.02	$ 0.63
Number of shares (in thousands) used in computing:
-basic earnings per common share	9,864	9,777	9,839	9,745
-diluted earnings per common share	9,907	9,839	9,884	9,822

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 10,067	$ 6,201
Adjustments to reconcile net income to net cash provided by operating activities:
Income from discontinued operations, net	0	(2,179)
Depreciation, depletion and amortization	6,068	5,663
Deferred income taxes	1,865	981
Equity in loss of joint ventures	326	255
(Gain) Loss on sale of equipment and property	(6,196)	87
Stock-based compensation	547	763
Net changes in operating assets and liabilities:
Accounts receivable	(108)	453
Deferred costs and other assets	(470)	458
Accounts payable and accrued liabilities	777	(3,443)
Income taxes payable and receivable	668	(1,108)
Other long-term liabilities	136	62
Net cash provided by operating activities of continuing operations	13,680	8,193
Net cash provided by operating activities of discontinued operations	0	4,984
Net cash provided by operating activities	13,680	13,177
Cash flows from investing activities:
Investments in properties	(12,969)	(3,693)
Investment in joint ventures	(561)	35
Cash held in escrow	0	(469)
Proceeds from the sale of real estate held for investment and properties	13,463	76
Net cash used in investing activities of continuing operations	(67)	(4,051)
Net cash used in investing activities of discontinued operations	0	(2,694)
Net cash used in investing activities	(67)	(6,745)
Cash flows from financing activities:
Increase in bank overdrafts	0	0
Repayment of long-term debt	(3,110)	(4,397)
Repurchase of Company Stock	(43)	0
Proceeds from borrowing on revolving credit facility	15,434	16,657
Payment on revolving credit facility	(23,928)	(18,341)
Excess tax benefits from exercises of stock options	0	175
Exercise of employee stock options	1,084	831
Net cash used in financing activities of continuing operations	(10,563)	(5,075)
Net cash used in financing activities of discontinued operations	0	(1,631)
Net cash used in financing activities	(10,563)	(6,706)
Net increase (decrease) in cash and cash equivalents	3,050	(274)
Cash and cash equivalents at beginning of period	419	1,013
Cash and cash equivalents at end of the period	$ 3,469	$ 739

Basis of Presentation

9 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Recently Issued Accounting Standards

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Recently Issued Accounting Standards

Business Segments

9 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Business Segments

The Asset Management segment owns, leases and manages warehouse/office buildings located predominately in the Baltimore/Northern Virginia/Washington, DC market area.

Our Mining Royalty Lands segment was unaffected by the change in segments and owns several properties comprising approximately 15,000 acres currently under lease for mining rents or royalties (this does not include the 4,280 acres owned in our Brooksville joint venture with Vulcan Materials). Other than one location in Virginia, all of these properties are located in Florida and Georgia.

Operating results and certain other financial data for the Company’s business segments are as follows (in thousands):

	Three Months ended						Nine Months ended
	June 30,						June 30,
	2016			2015			2016			2015
Revenues:
Asset management	$	6,927			6,509			21,416			20,596
Mining royalty lands		2,059			1,735			5,496			4,414
Land development and construction		257			253			769			737
		9,243			8,497			27,681			25,747

Operating profit:
Before corporate expenses:
Asset management	$	3,318			3,289			10,129			9,862
Mining royalty lands		1,940			1,576			5,114			3,967
Land development and construction		(2,608	)		(419	)		(744	)		(1,686	)
Corporate expenses:
Allocated to asset management		(354	)		(210	)		(1,252	)		(1,007	)
Allocated to mining royalty		(52	)		(223	)		(182	)		(1,067	)
Allocated to land development and construction		(278	)		(124	)		(990	)		(595	)
Unallocated to discontinued operations		—			—			—			(1,081	)
		(684	)		(557	)		(2,424	)		(3,750	)
	$	1,966			3,889			12,075			8,393

Interest expense:
Asset management	$	392			459			1,288			1,524

Depreciation, depletion and amortization:
Asset management	$	1,985			1,694			5,618			5,256
Mining royalty lands		15			39			80			100
Land development and construction		66			72			193			210
	$	2,066			1,805			5,726			5,566

Capital expenditures:
Asset management	$	699			231			10,340			1,498
Mining royalty lands		101			—			106			—
Land development and construction		673			1,033			2,523			2,195
	$	1,473			1,264			12,969			3,693

	June 30,		September 30,
Identifiable net assets	2016		2015

Asset management	$	161,487		151,023
Mining royalty lands		39,737		39,300
Land development and construction		50,357		60,682
Cash items		3,469		419
Unallocated corporate assets		532		1,054
	$	255,582		252,478

Related Party Transactions

9 Months Ended

Jun. 30, 2016

Related Party Transactions

Long-Term Debt

9 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Long-Term Debt

(5) Long-Term debt. Long-term debt is summarized as follows (in thousands):

	June 30,		September 30,
	2016		2015
Revolving credit agreements	$	—		8,494
5.6% to 7.9% mortgage notes
due in installments through 2027		37,081		40,191
		37,081		48,685
Less portion due within one year		4,384		4,180
	$	32,697		44,505

Earnings per Share

9 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings per Share

(6) Earnings per share. The following details the computations of the basic and diluted earnings per common share (dollars in thousands, except share and per share amounts):

	Three Months ended				Nine Months ended
	June 30,				June 30,
	2016		2015		2016		2015
Weighted average common shares
outstanding during the period
- shares used for basic
earnings per common share		9,864		9,777		9,839		9,745

Common shares issuable under
share based payment plans
which are potentially dilutive		43		62		45		77

Common shares used for diluted
earnings per common share		9,907		9,839		9,884		9,822

Income from continuing operations	$	774		2,046		10,067		4,022
Discontinued operations		—		—		—		2,179
Net income	$	774		2,046		10,067		6,201

Basic earnings per common share:
Income from continuing operations	$	0.08		0.21		1.02		0.41
Discontinued operations		0.00		0.00		0.00		0.23
Net income	$	0.08		0.21		1.02		0.64

Diluted earnings per common share:
Income from continuing operations	$	0.08		0.21		1.02		0.41
Discontinued operations		0.00		0.00		0.00		0.22
Net income	$	0.08		0.21		1.02		0.63

Stock-Based Compensation Plans

9 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation Plans

Subsequent to Spin-off, the realized tax benefit pertaining to options exercised and the remaining compensation cost of options previously granted prior to the Spin-off will be recognized by FRP or Patriot based on the employment location of the related employee or director.

The Company recorded the following stock compensation expense (including unallocated to Patriot in periods prior to the Spin-off) in its consolidated statements of income (in thousands):

	Three Months ended				Nine Months ended
	June 30,				June 30,
	2016		2015		2016		2015
Stock option grants	$	32		9		135		227
Annual director stock award		—		—		412		536
	$	32		9		547		763

A summary of changes in outstanding options is presented below (in thousands, except share and per share amounts):

				Weighted	Weighted		Weighted
	Number			Average	Average		Average
	of			Exercise	Remaining		Grant Date
Options	Shares			Price	Term (yrs)		Fair Value

Outstanding at
October 1, 2015	305,750		$	21.90	5.9	$	2,738
Granted	21,540		$	31.15		$	272
Exercised	(58,830	)	$	18.42		$	(438	)
Outstanding at
June 30, 2016	268,460		$	23.40	5.8	$	2,572
Exercisable at
June 30, 2016	190,613		$	22.19	5.0	$	1,653
Vested during
nine months ended
June 30, 2016	35,596					$	341

Contingent liabilities

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Contingent liabilities

Concentrations

9 Months Ended

Jun. 30, 2016

Risks and Uncertainties [Abstract]

Concentrations

Fair Value Measurements

9 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Unusual or Infrequent Items Impacting Quarterly Results

9 Months Ended

Jun. 30, 2016

Unusual or Infrequent Items, or Both [Abstract]

Unusual or Infrequent Items Impacting Quarterly Results

Gain on investment land sold for the quarter ending December 31, 2015 includes $6,277,000 gain on the sale of phase 2 of Windlass Run residential property.

Investment in Riverfront and Brooksville Joint Ventures

9 Months Ended

Jun. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Investment in Joint Ventures

(12) Investment in Joint Ventures.

Brooksville. In 2006, the Company entered into a Joint Venture Agreement with Florida Rock Industries, Inc. (now owned by Vulcan Materials Company) to jointly own and develop approximately 4,300 acres of land near Brooksville, Florida. Under the terms of the joint venture, FRP contributed its fee interest in approximately 3,443 acres formerly leased to Vulcan under a long-term mining lease which had a net book value of $2,548,000. Vulcan is entitled to mine a portion of the property until 2022 and pay royalties to the Company. FRP also contributed $3,018,000 for one-half of the acquisition costs of a 288-acre contiguous parcel. Vulcan contributed 553 acres that it owned as well as its leasehold interest in the 3,443 acres that it leased from FRP and $3,018,000 for one-half of the acquisition costs of the 288-acre contiguous parcel. The joint venture is jointly controlled by Vulcan and FRP, and they each have a mandatory obligation to fund additional capital contributions of up to $2,430,000. Capital contributions of $2,397,000 have been made by each party as of June 30, 2016. Distributions will be made on a 50-50 basis except for royalties and depletion specifically allocated to the Company. Other income for the nine months ended June 30, 2016 includes a loss of $30,000 representing the Company’s portion of the loss of this joint venture. In April 2011, the Florida Department of Community Affairs issued its Final Order approving the development of the Project, and zoning for the Project was obtained from Hernando County in August 2012. We will continue to monitor the residential market in Hernando County and pursue opportunities to partner with a master community developer or major homebuilder to commence construction when the market dictates.

Investments in Joint Ventures (in thousands):

							The
							Company's
				Total Assets	Net Loss		Share of Net
			Total	of the	of the		Loss of the
	Ownership		Investment	Partnership	Partnership		Partnership
				(Unaudited)	(Unaudited)
As of June 30, 2016
Riverfront Holdings I, LLC	76.91	%	$ 11,705	$ 76,823	$ (365	)	$ (296	)
Brooksville Quarry, LLC	50.00	%	7,508	14,351	(60	)	(30	)
BC FRP Realty, LLC	50.00	%	4,926	10,415	-		-
Total			$ 24,139	$ 101,589	$ (425	)	$ (326	)

As of September 30, 2015
Riverfront Holdings I, LLC	76.91	%	$ 11,517	$ 40,970	$ (108	)	$ (105	)
Brooksville Quarry, LLC	50.00	%	7,493	14,336	(80	)	(40	)
Total			$ 19,010	$ 55,306	$ (188	)	$ (145	)

The amount of consolidated retained earnings for these joint ventures was $(591,000) and $(389,000) as of June 30, 2016 and September 30, 2015, respectively.

Summarized Unaudited Financial Information for the Investments in Joint Ventures (in thousands):

	As of
		6/30/2016	9/30/2015

Cash	$	118	61
Cash held in escrow		223	3,420
Amortizable Debt Costs		1,283	1,593
Investments in real estate, net		99,965	50,232
Total Assets	$	101,589	55,306

Other Liabilities	$	4,118	6,969
Long-term Debt		55,684	17,000
Capital – FRP		24,139	19,010
Capital - Third Parties		17,648	12,327
Total Liabilities and Capital	$	101,589	55,306

Spin-off

9 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Spin-off

The results of operations associated with discontinued operations for the three and nine month periods ended June 30, 2016 and 2015 were as follows (in thousands):

	Three Months ended				Nine Months ended
	June 30,				June 30,
	2016		2015		2016		2015
Revenue	$	—		—		—		41,800

Cost of operations		—		—		—		38,195
Operating profit		—		—		—		3,605
Interest expense		—		—		—		(33	)
Income before income taxes		—		—		—		3,572
Provision for income taxes		—		—		—		1,393
Income from discontinued operations	$	—		—		—		2,179

Property and equipment, net	$	42,174
Accounts receivable, net		7,119
Deferred costs		11,809
Other assets		32
Assets of discontinued operation	$	61,134

Line of credit	$	7,282
Accounts payable and accrued liabilities		11,489
Deferred compensation		717
Deferred income taxes		8,924
Liabilities of discontinued operation	$	28,412

Port Capital Property Acquisition

9 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Port Capital Property Acquisition

The Company will recognize the amortization related to the Port Capital Drive property intangible assets according to the following schedule (in thousands):

		In-place
		Leases
Initial Values	$	1,126
Annual Amortization:
2016	$	104
2017		114
2018		114
2019		114
2020		114
2021-2025		566

Subsequent Events

9 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

Business Segments (Tables)

9 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Business segments

in thousands	Three Months ended						Nine Months ended
	June 30,						June 30,
	2016			2015			2016			2015
Revenues:
Asset management	$	6,927			6,509			21,416			20,596
Mining royalty lands		2,059			1,735			5,496			4,414
Land development and construction		257			253			769			737
		9,243			8,497			27,681			25,747

Operating profit:
Before corporate expenses:
Asset management	$	3,318			3,289			10,129			9,862
Mining royalty lands		1,940			1,576			5,114			3,967
Land development and construction		(2,608	)		(419	)		(744	)		(1,686	)
Corporate expenses:
Allocated to asset management		(354	)		(210	)		(1,252	)		(1,007	)
Allocated to mining royalty		(52	)		(223	)		(182	)		(1,067	)
Allocated to land development and construction		(278	)		(124	)		(990	)		(595	)
Unallocated to discontinued operations		—			—			—			(1,081	)
		(684	)		(557	)		(2,424	)		(3,750	)
	$	1,966			3,889			12,075			8,393

Interest expense:
Asset management	$	392			459			1,288			1,524

Depreciation, depletion and amortization:
Asset management	$	1,985			1,694			5,618			5,256
Mining royalty lands		15			39			80			100
Land development and construction		66			72			193			210
	$	2,066			1,805			5,726			5,566

Capital expenditures:
Asset management	$	699			231			10,340			1,498
Mining royalty lands		101			—			106			—
Land development and construction		673			1,033			2,523			2,195
	$	1,473			1,264			12,969			3,693

	June 30,		September 30,
Identifiable net assets	2016		2015

Asset management	$	161,487		151,023
Mining royalty lands		39,737		39,300
Land development and construction		50,357		60,682
Cash items		3,469		419
Unallocated corporate assets		532		1,054
	$	255,582		252,478

Long-Term Debt (Tables)

9 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Long-term debt

in thousands	June 30,		September 30,
	2016		2015
Revolving credit agreements	$	—		8,494
5.6% to 7.9% mortgage notes
due in installments through 2027		37,081		40,191
		37,081		48,685
Less portion due within one year		4,384		4,180
	$	32,697		44,505

Earnings per Share (Tables)

9 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Earnings per share

(dollars in thousands, except share and per share amounts)	Three Months ended				Nine Months ended
	June 30,				June 30,
	2016		2015		2016		2015
Weighted average common shares
outstanding during the period
- shares used for basic
earnings per common share		9,864		9,777		9,839		9,745

Common shares issuable under
share based payment plans
which are potentially dilutive		43		62		45		77

Common shares used for diluted
earnings per common share		9,907		9,839		9,884		9,822

Income from continuing operations	$	774		2,046		10,067		4,022
Discontinued operations		—		—		—		2,179
Net income	$	774		2,046		10,067		6,201

Basic earnings per common share:
Income from continuing operations	$	0.08		0.21		1.02		0.41
Discontinued operations		0.00		0.00		0.00		0.23
Net income	$	0.08		0.21		1.02		0.64

Diluted earnings per common share:
Income from continuing operations	$	0.08		0.21		1.02		0.41
Discontinued operations		0.00		0.00		0.00		0.22
Net income	$	0.08		0.21		1.02		0.63

Stock-Based Compensation Plans (Tables)

9 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Compensation Expense

(in thousands)	Three Months ended				Nine Months ended
	June 30,				June 30,
	2016		2015		2016		2015
Stock option grants	$	32		9		135		227
Annual director stock award		—		—		412		536
	$	32		9		547		763

Summary of Stock Activity

in thousands, except share and per share amounts				Weighted	Weighted		Weighted
	Number			Average	Average		Average
	of			Exercise	Remaining		Grant Date
Options	Shares			Price	Term (yrs)		Fair Value

Outstanding at
October 1, 2015	305,750		$	21.90	5.9	$	2,738
Granted	21,540		$	31.15		$	272
Exercised	(58,830	)	$	18.42		$	(438	)
Outstanding at
June 30, 2016	268,460		$	23.40	5.8	$	2,572
Exercisable at
June 30, 2016	190,613		$	22.19	5.0	$	1,653
Vested during
nine months ended
June 30, 2016	35,596					$	341

Investment in Joint Ventures (Tables)

9 Months Ended

Jun. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Investments in Joint Ventures

(in thousands)							The
							Company's
				Total Assets	Net Loss		Share of Net
			Total	of the	of the		Loss of the
	Ownership		Investment	Partnership	Partnership		Partnership
				(Unaudited)	(Unaudited)
As of June 30, 2016
Riverfront Holdings I, LLC	76.91	%	$ 11,705	$ 76,823	$ (365	)	$ (296	)
Brooksville Quarry, LLC	50.00	%	7,508	14,351	(60	)	(30	)
BC FRP Realty, LLC	50.00	%	4,926	10,415	-		-
Total			$ 24,139	$ 101,589	$ (425	)	$ (326	)

As of September 30, 2015
Riverfront Holdings I, LLC	76.91	%	$ 11,517	$ 40,970	$ (108	)	$ (105	)
Brooksville Quarry, LLC	50.00	%	7,493	14,336	(80	)	(40	)
Total			$ 19,010	$ 55,306	$ (188	)	$ (145	)

Summarized Unaudited Financial Information for the Investments in Joint Ventures

(in thousands)	As of
		6/30/2016	9/30/2015

Cash	$	118	61
Cash held in escrow		223	3,420
Amortizable Debt Costs		1,283	1,593
Investments in real estate, net		99,965	50,232
Total Assets	$	101,589	55,306

Other Liabilities	$	4,118	6,969
Long-term Debt		55,684	17,000
Capital – FRP		24,139	19,010
Capital - Third Parties		17,648	12,327
Total Liabilities and Capital	$	101,589	55,306

Spin-off (Tables)

9 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued operations results of operations

in thousands	Three Months ended				Nine Months ended
	June 30,				June 30,
	2016		2015		2016		2015
Revenue	$	—		—		—		41,800

Cost of operations		—		—		—		38,195
Operating profit		—		—		—		3,605
Interest expense		—		—		—		(33	)
Income before income taxes		—		—		—		3,572
Provision for income taxes		—		—		—		1,393
Income from discontinued operations	$	—		—		—		2,179

Discontinued operations balance sheet

(in thousands)		September 30, 2014
Property and equipment, net	$	42,174
Accounts receivable, net		7,119
Deferred costs		11,809
Other assets		32
Assets of discontinued operation	$	61,134

Line of credit	$	7,282
Accounts payable and accrued liabilities		11,489
Deferred compensation		717
Deferred income taxes		8,924
Liabilities of discontinued operation	$	28,412

Port Capital Property Acquisition (Tables)

9 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Port Capital Drive intangible asset amortization schedule

(in thousands)		In-place
		Leases
Initial Values	$	1,126
Annual Amortization:
2016	$	104
2017		114
2018		114
2019		114
2020		114
2021-2025		566

Business Segments - Business segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Segment Reporting Information [Line Items]
Revenues	$ 9,243	$ 8,497	$ 27,681	$ 25,747
Operating profit	1,966	3,889	12,075	8,393
Corporate expenses unallocated to discontinued operations	0	0	0	(1,081)
Interest expense	392	459	1,288	1,524
Depreciation, depletion and amortization			6,068	5,663
Cash items	3,469		3,469		$ 419
Total identifiable net assets	255,582		255,582		252,478
Asset Management
Segment Reporting Information [Line Items]
Revenues	6,927	6,509	21,416	20,596
Operating profit before corporate expenses	3,318	3,289	10,129	9,862
Corporate expenses	(354)	(210)	(1,252)	(1,007)
Interest expense	392	459	1,288	1,524
Capital expenditures	699	231	10,340	1,498
Depreciation, depletion and amortization	1,985	1,694	5,618	5,256
Total identifiable net assets	161,487		161,487		151,023
Mining royalty lands
Segment Reporting Information [Line Items]
Revenues	2,059	1,735	5,496	4,414
Operating profit before corporate expenses	1,940	1,576	5,114	3,967
Corporate expenses	(52)	(223)	(182)	(1,067)
Capital expenditures	101	0	106	0
Depreciation, depletion and amortization	15	39	80	100
Total identifiable net assets	39,737		39,737		39,300
Land Development and Construction
Segment Reporting Information [Line Items]
Revenues	257	253	769	737
Operating profit before corporate expenses	(2,608)	(419)	(744)	(1,686)
Corporate expenses	(278)	(124)	(990)	(595)
Capital expenditures	673	1,033	2,523	2,195
Depreciation, depletion and amortization	66	72	193	210
Total identifiable net assets	50,357		50,357		60,682
Corporate
Segment Reporting Information [Line Items]
Total identifiable net assets	532		532		$ 1,054
Total Segments
Segment Reporting Information [Line Items]
Revenues	9,243	8,497	27,681	25,747
Operating profit	1,966	3,889	12,075	8,393
Corporate expenses	(684)	(557)	(2,424)	(3,750)
Corporate expenses unallocated to discontinued operations	0	0	0	(1,081)
Capital expenditures	1,473	1,264	12,969	3,693
Depreciation, depletion and amortization	$ 2,066	$ 1,805	$ 5,726	$ 5,566

Long-term debt (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Debt Disclosure [Abstract]
Revolving credit agreements	$ 0	$ 8,494
5.6% to 7.9% mortgage notes due in installments through 2027	37,081	40,191
Total debt	37,081	48,685
Less portion due within one year	4,384	4,180
Long-term debt	$ 32,697	$ 44,505

Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Weighted average common shares outstanding during the period - shares used for basic earnings per common share	9,864	9,777	9,839	9,745
Common shares issuable under share based payment plans which are potentially dilutive	43	62	45	77
Common shares used for diluted earnings per common share	9,907	9,839	9,884	9,822
Income from continuing operations	$ 774	$ 2,046	$ 10,067	$ 4,022
Discontinued operations	0	0	0	2,179
Net income	$ 774	$ 2,046	$ 10,067	$ 6,201
Basic earnings per common share
Income from continuing operations	$ .08	$ .21	$ 1.02	$ .41
Discontinued operations	0.00	0.00	0.00	0.23
Net income	.08	.21	1.02	0.64
Diluted earnings per common share
Income from continuing operations	.08	.21	1.02	.41
Discontinued operations	0.00	0.00	0.00	0.22
Net income	$ .08	$ .21	$ 1.02	$ 0.63

Summary of Stock Activity (Details) $ / shares in Units, $ in Thousands	9 Months Ended
	Jun. 30, 2016 USD ($) Years $ / shares shares	Sep. 30, 2015 USD ($) Years $ / shares shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Options outstanding \| shares	268,460	305,750
Options granted \| shares	21,540
Options exercised \| shares	(58,830)
Options outstanding weighted average exercise price \| $ / shares	$ 23.40	$ 21.90
Options outstanding weighted average exercise price - Granted \| $ / shares	31.15
Options outstanding weighted average exercise price - Exercised \| $ / shares	$ 18.42
Options outstanding weighted average remaining term \| Years	5.8	5.9
Options outstanding weighted average grant date fair value \| $	$ 2,572	$ 2,738
Options granted weighted average grant date fair value \| $	272
Options exercised weighted average grant date fair value \| $	$ (438)
Options exercisable at June 30, 2016 \| shares	190,613
Options exerciseable weighted average exercise price \| $ / shares	$ 22.19
Options exerciseable weighted average remaining term \| Years	5.0
Options exerciseable weighted average grant date fair value \| $	$ 1,653
Options vested during nine months ended June 30, 2016 \| shares	35,596
Options vested weighted average grant date fair value \| $	$ 341

Stock Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock option grants	$ 32	$ 9	$ 135	$ 227
Annual director stock award	0	0	412	536
Stock based compensation	$ 32	$ 9	$ 547	$ 763

Investment in Joint Ventures (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Total Investment	$ 24,139		$ 24,139		$ 19,010
Total Assets of the Partnership	101,589		101,589		55,306
Net Loss of the Partnership			(425)		(188)
Company's share of Net Loss of the Partnership	$ (186)	$ (75)	$ (326)	$ (255)	$ (145)
Riverfront Holdings I, LLC
Ownership percent	76.91%		76.91%		76.91%
Total Investment	$ 11,705		$ 11,705		$ 11,517
Total Assets of the Partnership	$ 76,823		76,823		40,970
Net Loss of the Partnership			(365)		(108)
Company's share of Net Loss of the Partnership			$ (296)		$ (105)
Brooksville Quarry, LLC
Ownership percent	50.00%		50.00%		50.00%
Total Investment	$ 7,508		$ 7,508		$ 7,493
Total Assets of the Partnership	$ 14,351		14,351		14,336
Net Loss of the Partnership			(60)		(80)
Company's share of Net Loss of the Partnership			$ (30)		$ (40)
BC FRP Realty, LLC
Ownership percent	50.00%		50.00%
Total Investment	$ 4,926		$ 4,926
Total Assets of the Partnership	$ 10,415		10,415
Net Loss of the Partnership			0
Company's share of Net Loss of the Partnership			$ 0

Summarized Financial Information for Investments in Joint Ventures (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Summarized Financial Information For Investments In Joint Ventures Details
Cash	$ 118	$ 61
Cash held in escrow	223	3,420
Amortizable Debt costs	1,283	1,593
Investments in real estate, net	99,965	50,232
Total Assets	101,589	55,306
Other liabilities	4,118	6,969
Long-term debt	55,684	17,000
Capital - FRP	24,139	19,010
Capital - Third parties	17,648	12,327
Total liabilities and capital	$ 101,589	$ 55,306

Discontinued operations - Discontinued operations results of operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue	$ 9,243	$ 8,497	$ 27,681	$ 25,747
Cost of operations	7,277	4,608	15,606	17,354
Interest expense	(392)	(459)	(1,288)	(1,524)
Provision for income taxes	505	1,309	6,573	2,572
Income from discontinued operations	0	0	0	2,179
Patriot Transportation
Revenue	0	0	0	41,800
Cost of operations	0	0	0	38,195
Operating profit	0	0	0	3,605
Interest expense	0	0	0	(33)
Income before income taxes	0	0	0	3,572
Provision for income taxes	0	0	0	1,393
Income from discontinued operations	$ 0	$ 0	$ 0	$ 2,179

Discontinued operations - Discontinued operations balance sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015	Sep. 30, 2014
Property and equipment, net	$ 207,764	$ 207,205
Deferred costs	6,436	7,449
Other assets	677	275
Line of credit	0	8,494
Accounts payable and accrued liabilities	3,259	3,456
Deferred compensation	$ 1,486	$ 1,400
Patriot Transportation
Property and equipment, net			$ 42,174
Accounts receivable, net			7,119
Deferred costs			11,809
Other assets			32
Assets of discontinued operation			61,134
Line of credit			7,282
Accounts payable and accrued liabilities			11,489
Deferred compensation			717
Deferred income taxes			8,924
Liabilities of discontinued operation			$ 28,412

Port Capital Property Acquisition - Port Capital Drive intangible asset amortization schedule (Details) - Port Capital $ in Thousands	Jun. 30, 2016 USD ($)
Initial Values	$ 1,126
2016	104
2017	114
2018	114
2019	114
2020	114
2021-2025	$ 566

Basis of Presentation (Details Narrative)	9 Months Ended
Basis of Presentation (Details Narrative)	Jun. 30, 2016
Brooksville Quarry, LLC
Joint venture ownership percentage	50.00%
BC FRP Realty, LLC
Joint venture ownership percentage	50.00%

Recently Issued Accounting Standards (Details Narrative) $ in Thousands	Jun. 30, 2016 USD ($)
Recently Issued Accounting Standards Details Narrative
Reclass from deferred costs to long-term deferred tax liability	$ 143

Business Segments (Details Narrative)	9 Months Ended
Business Segments (Details Narrative)	Jun. 30, 2016 a Segments
Reportable business segments \| Segments	3
Mining royalty lands
Mining royalty lands acres	15,000
Brooksville Quarry, LLC
Mining royalty lands acres	4,280

Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Related Party Transactions [Abstract]
Charges/allocation related to Transition Services Agreement with Patriot	$ 388	$ 924	$ 1,180	$ 2,361
Charges/allocations related to discontinued operations	$ 0	$ 0	$ 0	$ 1,081

Long-Term debt (Details Narrative) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
Long-Term debt (Details Narrative) $ in Thousands	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jan. 30, 2015 USD ($)
Mortgage interest description			5.6% to 7.9% mortgage notes due in installments through 2027		5.6% to 7.9% mortgage notes due in installments through 2027
Carrying amount of mortgage notes payable	$ 37,081		$ 37,081		$ 40,191
Fair value of mortgage notes payable	40,533		40,533
Capitalized interest	$ 240	$ 258	$ 704	$ 827
First Tennessee bank Term Loan
Credit Agreement term years	10		10
Term loan facility	$ 20,000		$ 20,000
Wells Fargo Bank, N.A.
Credit Agreement term years	5		5
Revolving Credit Agreement	$ 20,000		$ 20,000			$ 55,000
Sublimit for standby letters of credit	10,000		10,000
Letters of credit issued	2,442		2,442
Borrowed under the revolver	0		0			$ 10,483
Available for borrowing	17,558		17,558
Tangible net worth covenant	110,000		110,000
Available to pay dividends or repurchase stock	$ 83,000		$ 83,000
First Tennessee Bank
Credit Agreement term years	5		5
Revolving Credit Agreement	$ 20,000		$ 20,000
Mortgage backed financing	40,000		$ 40,000
Revolver conversion to term loan			24 month window
Borrowed under the revolver	$ 0		$ 0

Earnings per Share (Details Narrative) - shares	3 Months Ended		9 Months Ended
Earnings per Share (Details Narrative) - shares	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Anti-dilutive shares	72,090	62,021	72,090	76,691

Stock-Based Compensation Plans (Details Narrative) $ / shares in Units, $ in Thousands	9 Months Ended
	Jun. 30, 2016 USD ($) Years $ / shares shares	Jan. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares available for future issuance \| shares	384,430
FRP options replacement		75.14%
Patriot options replacement		24.86%
Aggregate intrinsic value of exercisable in-the-money options	$ 2,347
Aggregate intrinsic value of outstanding in-the-money options	$ 2,980
Market close price \| $ / shares	$ 34.50
Realized tax benefit from options exercised	$ 323
Total unrecognized compensation cost of options granted but not yet vested	$ 354
Weighted average period for compensation to be recognized \| Years	3.6
Gains realized by option holders	$ 835

Contingent Liabilities (Details Narrative) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Sep. 30, 2012	Jun. 30, 2016	Jun. 30, 2015
Contingent Liabilities Details Narrative
Cap on environment financial responsibility	$ 1,871				$ 1,871
Environmental remediation expense	2,000		$ 0	$ 1,771	(1,000)	$ 0
Total cost of remediation	$ 1,900				$ 1,900
Environmental remediation recovery		$ 3,000	$ 0

Concentrations (Details Narrative) $ in Thousands	9 Months Ended
Concentrations (Details Narrative) $ in Thousands	Jun. 30, 2016 USD ($)
Asset Management Top Customer
Customer revenue concentration	11.50%
Mining Top Customer
Customer revenue concentration	15.30%
Accounts receivable concentration	$ 278

Fair Value Measurements (Details Narrative) $ in Thousands	Jun. 30, 2016 USD ($)
Fair Value Disclosures [Abstract]
Assets measured at fair value on a recurring basis	$ 0
Liabilities measured at fair value on a recurring basis	0
Assets measured at fair value on a non-recurring basis	0
Liabilities measured at fair value on a non-recurring basis	$ 0

Unusual or Infrequent Items Impacting Quarterly Results (Details Narrative) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Sep. 30, 2012	Jun. 30, 2016	Jun. 30, 2015
Spin off related costs			$ 17			$ 324
Gain on investment land sold	$ (109)		0		$ 6,177	(20)
Environmental claims settlement		$ 3,000	0
Mortgage prepayment						$ 1,314
Rate of prepaid mortgage						8.55% and 7.95%
Prepayment penalty						$ 116
Deferred loan costs on early prepayment						15
Environmental remediation expense	$ 2,000		$ 0	$ 1,771	$ (1,000)	$ 0
Windlass Run Phase 2
Gain on investment land sold		$ 6,277

Investment in Joint Ventures (Details Narrative) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2016 USD ($) a ft²	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) a ft²	Jun. 30, 2015 USD ($)	Sep. 30, 2015 USD ($)	Aug. 08, 2014 USD ($)
Capital contributions made			$ 561	$ (35)
Company's share of the loss of the joint venture	$ 186	$ 75	326	$ 255	$ 145
Joint Venture consolidated retained earnings	$ (591)		(591)		$ (389)
Riverfront Holdings I, LLC
Value of land contributed			13,500
Cash contributed			$ 4,866
Joint venture percentage stake	76.91%		76.91%		76.91%
Company's share of the loss of the joint venture			$ 296		$ 105
Brooksville Quarry, LLC
Land acreage \| a	4,300		4,300
Joint venture percentage stake	50.00%		50.00%		50.00%
FRP land contribution previously leased to Vulcan \| a	3,443		3,443
Book value of land contribution	$ 2,548		$ 2,548
FRP additional contribution for land			$ 3,018
Additional land acquired \| a	288		288
Vulcan land contribution \| a	553		553
Mandatory capital contribution obligation up to	$ 2,430		$ 2,430
Capital contributions made			2,397
Company's share of the loss of the joint venture			$ 30		$ 40
BC FRP Realty, LLC
Square feet \| a	329,000		329,000
Land acreage \| a	25		25
Value of land contributed			$ 7,500
Joint venture percentage stake	50.00%		50.00%
Company's share of the loss of the joint venture			$ 0
Riverfront Holdings I, LLC
Square feet \| ft²	300,000		300,000
Retail square feet \| ft²	18,000		18,000
Area of land to develop \| a	2.1		2.1
Land acreage \| a	5.82		5.82
Joint venture percentage stake	76.91%		76.91%
Other ownership capital contribution	$ 5,553		$ 5,553
EB5 Secondary financing						$ 17,000
Nonrecourse construction loan						$ 65,000
Book value of land contribution	$ 6,165		6,165
St Johns Properties JV St Johns
Value of land contributed			3,240
Cash contributed			$ 2,130
St Johns land contribution \| a	10		10