Here’s How FRP Holdings (FRPH) Survived Recession

Rhizome Partners, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund generated a 4.8% net loss compared to a 4.9% loss for the S&P 500 Index and a 10.8% loss for the National Association of Real Estate Investment Trusts (NAREIT). The hedging efforts of the fund generated a gain of 2.9% during the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Rhizome Partners highlighted stocks like FRP Holdings, Inc. (NASDAQ:FRPH) in its Q3 2022 investor letter. Headquartered in Jacksonville, Florida, FRP Holdings, Inc. (NASDAQ:FRPH) is a US-based real estate company. On December 6, 2022, FRP Holdings, Inc. (NASDAQ:FRPH) stock closed at $59.31 per share. One-month return of FRP Holdings, Inc. (NASDAQ:FRPH) was 6.65% and its shares gained 4.40% of their value over the last 52 weeks. FRP Holdings, Inc. (NASDAQ:FRPH) has a market capitalization of $560.782 million.

Rhizome Partners made the following comment about FRP Holdings, Inc. (NASDAQ:FRPH) in its Q3 2022 investor letter:

“FRP Holdings, Inc. (NASDAQ:FRPH) continues to post impressive results. Rents increased by 7.3% and 4.6% on lease renewals at Dock 79 and The Maren, respectively. The Cranberry Run warehouse is now 100% leased. The aggregate business experienced the highest quarterly revenue in company history, largely due to the recent acquisition in Astatula, FL. Of the 487 multi-family units at Bryant Street, 85% were leased at the end of Q2. Preleasing has begun at The Verge, the new multi-family near Dock 79, and The Maren. FRP Holdings received $16.9 million of the $18.5 million of the capital lent to the Amber Ridge project. The company has bought $140 million of short-term Treasuries, which may add $4-6 million of additional interest income per year. FRP Holdings’ large cash balance has quickly shifted from being a heavy anchor dragging down returns to an opportunistic distress fund that could earn outsized returns in the coming years. In a year when we have a lot to worry about, FRP Holdings is the company we worry about the least.”

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FRP Holdings, Inc. (NASDAQ:FRPH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held FRP Holdings, Inc. (NASDAQ:FRPH) at the end of the third quarter, which was 6 in the previous quarter.

We discussed FRP Holdings, Inc. (NASDAQ:FRPH) in another article and shared Rhizome Partners’ views on the company. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.