Is FRP Holdings (FRPH) A Good Stock Investment?

Third Avenue Management, an investment management firm, published its “Small-Cap Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. The Third Avenue Small-Cap Value Fund (the “Fund”) rose 5.53% during the fourth quarter of 2021 versus a rise of 4.36% for the Fund’s most relevant benchmark, the Russell 2000 Value Index (the “Index”). In 2021, the Fund was up 25.84% versus a rise of 28.27% for the Index. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Third Avenue Management Small-Cap Value Fund, in its Q4 2021 investor letter, mentioned FRP Holdings, Inc. (NASDAQ: FRPH) and discussed its stance on the firm. FRP Holdings, Inc. is a Jacksonville, Florida-based holding company with a $516.2 million market capitalization. FRPH delivered a -5.09% return since the beginning of the year, while its 12-month returns are up by 21.94%. The stock closed at $54.86 per share on February 4, 2022.

Here is what Third Avenue Management Small-Cap Value Fund has to say about FRP Holdings, Inc. in its Q4 2021 investor letter:

“Multi-Family (5.1% of assets): FRP Holdings, a developer of commercial, industrial, mixed-use, and residential real estate along the Eastern Seaboard has been methodically constructing multi-family complexes predominantly in the DC metro area. The assets are in high demand with leasing activity robust despite many locations opening during Covid. Local DC regulations have also prohibited rental increases during Covid temporarily depressing pricing power. As these regulations will likely expire in 2022, FRP will be able to boost rents to catchup with robust demand for their locations. Multi-family leases typically renew annually which allows management to get compensated for rising costs.”

Photo by Breno Assis on Unsplash

Our calculations show that FRP Holdings, Inc. (NASDAQ: FRPH) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. FRPH was in 7 hedge fund portfolios at the end of the third quarter of 2021, compared to 7 funds in the previous quarter. FRP Holdings, Inc. (NASDAQ: FRPH) delivered a -15.60% return in the past 3 months.

In November 2021, we also shared another hedge fund’s views on FRPH in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

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