Good day, everyone, and welcome to today's FRP Holdings, Inc. Third Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode [Operator Instructions] Please note this call is being recorded. [Operator Instructions] It is now my pleasure to turn the conference over to Matt McNulty, CFO of FRP.

Thank you. Good afternoon. I am Matt McNulty, CFO of FRP Holdings, Inc. With me today are John Baker III, our CEO; David deVilliers III, our COO; David deVilliers, Jr., our President; John Baker II, our Chairman; John Milton, our Executive Vice President and General Counsel; and John Klopfenstein, our Chief Accounting Officer. First, a disclosure regarding forward-looking statements and non-GAAP measures used by the company. As a reminder, any statements on this call, which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. We have no obligation to revise or update any forward-looking statements except as imposed by law, as a result of future events or new information. To supplement the presentation of our GAAP financial results, FRP presents certain non-GAAP financial measures within the meaning of the SEC's Regulation G. The non-GAAP financial measures referenced in this call are net operating income or NOI and pro rata NOI. FRP uses these non-GAAP financial measures to analyze its operations and to monitor, assess and identify meaningful trends in its operating and financial performance. This measure is not and should not be viewed as a substitute for GAAP financial measures. To reconcile NOI to GAAP net income, please refer to the segment titled Non-GAAP Financial Measures on pages 14 and 15 of our most recent earnings press release. Now for certain financial highlights following our third quarter. Net income for the third quarter increased 8% to $1.4 million or $0.07 per share versus $1.3 million or $0.07 per share in the same period last year. For the first nine months, net income saw a 94% increase to $4.7 million or $0.25 per share versus $2.4 million or $0.13 per…

Thank you, Matt, and good day to those on the call. Allow me to provide an operational perspective on the third quarter results of the company. Starting with our Commercial and Industrial segment, this segment consists of nine buildings, totaling nearly 550,000 square feet, which are mainly warehouses in the state of Maryland. At quarter-end, 95.6% of the buildings were occupied. Total revenues and NOI for the quarter totaled $1.5 million and $1.2 million, respectively, an increase of 0.9% and 10.3% over the same period last year. Moving onto the results of our Mining and Royalty Business segment. This division consists of 16 mining locations predominantly located in Florida and Georgia, with one mine in Virginia. Total revenues and NOI for the quarter totaled $3.2 million and $5.1 million, respectively, an increase of 3.8% and 79.9% over the same period last year. NOI for this quarter included a $1.9 million one-time cash royalty received during the quarter that is straight lined over the life of the agreement. As for our Multifamily segment, this business segment consists of 1,827 apartments and over 125,000 square feet of retail located in Washington, D.C. and South Carolina. At quarter-end, the apartments were 91.9% occupied, and the retail space was 79.4% occupied. Total revenues and NOI for the quarter were $14.2 million and $8.2 million, respectively. FRP's share revenues and NOI for this quarter totaled $8.2 million and $4.7 million, respectively. This is a significant increase over prior quarters due to our Bryant Street and 408 Jackson joint ventures being included in this segment as of January 1, 2024, and the verge being included in this segment as of July 1, 2024. These three projects contributed $4.7 million and $2.5 million in revenue and NOI this quarter versus $3.6 million and $1.8 million in last…

Thank you, David, and good afternoon to all those on the call. The 26.4% NOI compound annual growth rate, that Matt referenced that we've achieved over the last three years is remarkable. It's also unsustainable. Our ratio of stabilized assets to project under development is beginning to shift. So, while we expect to continue to grow NOI both organically on a same-store level and incrementally through future development, the rate at which we will grow NOI should moderate as earnings and cash flow growth increase with more stabilized projects. Though our NOI growth rate might taper on a percentage basis, we are by no means slowing down. As David spoke to, we have a healthy industrial development pipeline of joint ventures and 100% in-house projects, which in the immediate future will deliver three projects totaling 649,000 square feet of new Class A industrial space and an estimated -- costing an estimated $118 million in total CapEx. Further interest rate cuts and stable construction costs make the prospect of multifamily development more palatable than it has been in some time. We will continue to monitor the fundamentals of that asset class. But at least for now, the lion's share of our development strategy remains focused on industrial. I will now open the call up for any questions you might have.

[Operator Instructions] And I'm showing we have no questions in the queue at this time.

Thank you all and we appreciate your continued investment and interest in the company. That concludes the call.

That concludes today's teleconference. Thank you for your participation. You may now disconnect.