Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Five Point Holdings, LLC Reports Second Quarter 2023 Results By: Five Point Holdings, LLC via Business Wire July 20, 2023 at 16:10 PM EDT Second Quarter 2023 Highlights Great Park Venture sold 798 homesites on approximately 84 acres of land and recognized revenue of $357.8 million. Great Park Venture distributions and incentive compensation payments to the Company totaled $103.8 million. Great Park builder sales of 177 homes during the quarter compared to 255 in the first quarter of 2023. Valencia builder sales of 79 homes during the quarter compared to 75 in the first quarter of 2023. Consolidated revenues of $21.3 million; consolidated net income of $50.6 million, which includes $52.3 million equity in earnings from the Great Park Venture. Cash and cash equivalents of $193.2 million as of June 30, 2023. Debt to total capitalization ratio of 24.7% and liquidity of $318.2 million as of June 30, 2023. Five Point Holdings, LLC (“Five Point” or the “Company”) (NYSE:FPH), an owner and developer of large mixed-use planned communities in California, today reported its second quarter 2023 results. Dan Hedigan, Chief Executive Officer, said, “During the second quarter, we were able to execute effectively on our three main priorities (generating revenue, rightsizing SG&A, and managing capital spend) and to achieve results that exceeded our expectations. For the quarter, we had $50.6 million in consolidated net income and a net cash increase of $86.6 million, leaving us with a cash balance of $193.2 million at quarter end. While these results are due in part to the residential land sale market that has strengthened throughout the year, it is also a testament to the management team and our continued focus on matching our capital spend with near term revenue opportunities. Five Point has created a strong organizational base for moving the development of our communities forward and creating value for our shareholders.” Consolidated Results Liquidity and Capital Resources As of June 30, 2023, total liquidity of $318.2 million was comprised of cash and cash equivalents totaling $193.2 million and borrowing availability of $125.0 million under our unsecured revolving credit facility. Total capital was $1.9 billion, reflecting $2.9 billion in assets and $1.0 billion in liabilities and redeemable noncontrolling interests. Results of Operations for the Three Months Ended June 30, 2023 Revenues. Revenues of $21.3 million for the three months ended June 30, 2023 were primarily generated from management services. Additionally, we collected $22.0 million in incentive compensation payments under our development management agreement with the Great Park Venture. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $52.1 million for the three months ended June 30, 2023. The Great Park Venture generated net income of $168.2 million during the three months ended June 30, 2023, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $52.3 million. Additionally, we recognized $0.5 million in loss from our 75% interest in the Gateway Commercial Venture. During the three months ended June 30, 2023, the Great Park Venture sold 798 homesites on approximately 84 acres of land at the Great Park Neighborhoods. The Great Park Venture recognized $357.8 million in revenue, consisting of $214.7 million paid at closing plus $143.1 million in revenue representing variable consideration from future price participation payments expected to be received when homes are sold to homebuyers. After completing the land sale, the Great Park Venture made aggregate distributions of $25.5 million to holders of Legacy Interests and $218.0 million to holders of Percentage Interests. We received $81.8 million for our 37.5% Percentage Interest. Selling, general, and administrative. Selling, general, and administrative expenses were $12.7 million for the three months ended June 30, 2023. Net income. Consolidated net income for the quarter was $50.6 million. Net income attributable to noncontrolling interests totaled $27.0 million, resulting in net income attributable to the Company of $23.6 million. Net income attributable to noncontrolling interests represents the portion of income allocated to related party partners and members that hold units of the operating company and the San Francisco Venture. Holders of units of the operating company and the San Francisco Venture can redeem their interests for either, at our election, our Class A common shares on a one-for-one basis or cash. In connection with any redemption or exchange, our ownership of our operating subsidiaries will increase thereby reducing the amount of income allocated to noncontrolling interests in subsequent periods. Conference Call Information In conjunction with this release, Five Point will host a conference call on Thursday, July 20, 2023 at 5:00 p.m. Eastern Time. Dan Hedigan, Chief Executive Officer, and Leo Kij, Interim Chief Financial Officer, will host the call. Interested investors and other parties can listen to a live Internet audio webcast of the conference call that will be available on the Five Point website at ir.fivepoint.com. The conference call can also be accessed by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international). A telephonic replay will be available starting approximately two hours after the end of the call by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 13740212. The telephonic replay will be available until 11:59 p.m. Eastern Time on July 28, 2023. About Five Point Five Point, headquartered in Irvine, California, designs and develops large mixed-use planned communities in Orange County, Los Angeles County, and San Francisco County that combine residential, commercial, retail, educational, and recreational elements with public amenities, including civic areas for parks and open space. Five Point’s communities include the Great Park Neighborhoods® in Irvine, Valencia® in Los Angeles County, and Candlestick® and The San Francisco Shipyard® in the City of San Francisco. These communities are designed to include approximately 40,000 residential homes and approximately 23 million square feet of commercial space. Forward-Looking Statements This press release contains forward-looking statements that are subject to risks and uncertainties. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. This press release may contain forward-looking statements regarding: our expectations of our future revenues, costs and financial performance; future demographics and market conditions in the areas where our communities are located; the outcome of pending litigation and its effect on our operations; the timing of our development activities; and the timing of future real estate purchases or sales. We caution you that any forward-looking statements included in this press release are based on our current views and information currently available to us. Forward-looking statements are subject to risks, trends, uncertainties and factors that are beyond our control. Some of these risks and uncertainties are described in more detail in our filings with the SEC, including our Annual Report on Form 10-K, under the heading “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. They are based on estimates and assumptions only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. FIVE POINT HOLDINGS, LLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 REVENUES: Land sales $ 16 $ 14 $ (9 ) $ 571 Land sales—related party (29 ) 1,711 595 1,712 Management services—related party 20,774 2,703 25,010 6,250 Operating properties 588 965 1,454 1,746 Total revenues 21,349 5,393 27,050 10,279 COSTS AND EXPENSES: Land sales — — — — Management services 9,682 2,200 12,048 4,884 Operating properties 1,798 2,378 2,970 4,217 Selling, general, and administrative 12,710 12,651 26,462 29,442 Restructuring — — — 19,437 Total costs and expenses 24,190 17,229 41,480 57,980 OTHER INCOME (EXPENSE): Interest income 1,293 117 2,129 138 Miscellaneous (20 ) 112 (41 ) 224 Total other income 1,273 229 2,088 362 EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES 52,128 643 53,176 (389 ) INCOME (LOSS) BEFORE INCOME TAX PROVISION 50,560 (10,964 ) 40,834 (47,728 ) INCOME TAX PROVISION (5 ) (8 ) (13 ) (13 ) NET INCOME (LOSS) 50,555 (10,972 ) 40,821 (47,741 ) LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 26,984 (5,861 ) 21,786 (25,500 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY $ 23,571 $ (5,111 ) $ 19,035 $ (22,241 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE Basic $ 0.34 $ (0.07 ) $ 0.28 $ (0.32 ) Diluted $ 0.34 $ (0.07 ) $ 0.27 $ (0.33 ) WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING Basic 68,811,975 68,495,523 68,758,894 68,332,460 Diluted 145,040,689 69,635,563 144,939,450 69,472,500 NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS B SHARE Basic and diluted $ 0.00 $ (0.00 ) $ 0.00 $ (0.00 ) WEIGHTED AVERAGE CLASS B SHARES OUTSTANDING Basic and diluted 79,233,544 79,233,544 79,233,544 79,233,544 FIVE POINT HOLDINGS, LLC CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except shares) (Unaudited) June 30, 2023 December 31, 2022 ASSETS INVENTORIES $ 2,254,935 $ 2,239,125 INVESTMENT IN UNCONSOLIDATED ENTITIES 302,337 331,594 PROPERTIES AND EQUIPMENT, NET 29,668 30,243 INTANGIBLE ASSET, NET—RELATED PARTY 31,656 40,257 CASH AND CASH EQUIVALENTS 193,203 131,771 RESTRICTED CASH AND CERTIFICATES OF DEPOSIT 992 992 RELATED PARTY ASSETS 89,933 97,126 OTHER ASSETS 11,179 14,676 TOTAL $ 2,913,903 $ 2,885,784 LIABILITIES AND CAPITAL LIABILITIES: Notes payable, net $ 621,419 $ 620,651 Accounts payable and other liabilities 90,760 94,426 Related party liabilities 83,684 93,086 Deferred income tax liability, net 11,506 11,506 Payable pursuant to tax receivable agreement 173,208 173,068 Total liabilities 980,577 992,737 REDEEMABLE NONCONTROLLING INTEREST 25,000 25,000 CAPITAL: Class A common shares; No par value; Issued and outstanding: June 30, 2023—69,199,938 shares; December 31, 2022—69,068,354 shares Class B common shares; No par value; Issued and outstanding: June 30, 2023—79,233,544 shares; December 31, 2022—79,233,544 shares Contributed capital 589,634 587,733 Retained earnings 52,421 33,386 Accumulated other comprehensive loss (2,939 ) (2,988 ) Total members’ capital 639,116 618,131 Noncontrolling interests 1,269,210 1,249,916 Total capital 1,908,326 1,868,047 TOTAL $ 2,913,903 $ 2,885,784 FIVE POINT HOLDINGS, LLC SUPPLEMENTAL DATA (In thousands) (Unaudited) Liquidity June 30, 2023 Cash and cash equivalents $ 193,203 Borrowing capacity(1) 125,000 Total liquidity $ 318,203 (1) As of June 30, 2023, no borrowings or letters of credit were outstanding on the Company’s $125.0 million revolving credit facility. Debt to Total Capitalization and Net Debt to Total Capitalization June 30, 2023 Debt(1) $ 625,000 Total capital 1,908,326 Total capitalization $ 2,533,326 Debt to total capitalization 24.7 % Debt(1) $ 625,000 Less: Cash and cash equivalents 193,203 Net debt 431,797 Total capital 1,908,326 Total net capitalization $ 2,340,123 Net debt to total capitalization(2) 18.5 % (1) For purposes of this calculation, debt is the amount due on the Company’s notes payable before offsetting for capitalized deferred financing costs. (2) Net debt to total capitalization is a non-GAAP financial measure defined as net debt (debt less cash and cash equivalents) divided by total net capitalization (net debt plus total capital). The Company believes the ratio of net debt to total capitalization is a relevant and a useful financial measure to investors in understanding the leverage employed in the Company’s operations. However, because net debt to total capitalization is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the Company's GAAP results. Segment Results The following table reconciles the results of operations of our segments to our consolidated results for the three and six months ended June 30, 2023 (in thousands): Three Months Ended June 30, 2023 Valencia San Francisco Great Park Commercial Total reportable segments Corporate and unallocated Total under management Removal of unconsolidated entities(1) Total consolidated REVENUES: Land sales $ 16 $ — $ 358,668 $ — $ 358,684 $ — $ 358,684 $ (358,668 ) $ 16 Land sales—related party (29 ) — 1,928 — 1,899 — 1,899 (1,928 ) (29 ) Management services—related party(2) — — 20,670 104 20,774 — 20,774 — 20,774 Operating properties 426 162 — 2,021 2,609 — 2,609 (2,021 ) 588 Total revenues 413 162 381,266 2,125 383,966 — 383,966 (362,617 ) 21,349 COSTS AND EXPENSES: Land sales — — 165,749 — 165,749 — 165,749 (165,749 ) — Management services(2) — — 9,682 — 9,682 — 9,682 — 9,682 Operating properties 1,798 — — 1,019 2,817 — 2,817 (1,019 ) 1,798 Selling, general, and administrative 3,394 1,049 1,815 1,033 7,291 8,267 15,558 (2,848 ) 12,710 Management fees—related party — — 27,388 — 27,388 — 27,388 (27,388 ) — Total costs and expenses 5,192 1,049 204,634 2,052 212,927 8,267 221,194 (197,004 ) 24,190 OTHER (EXPENSE) INCOME: Interest income — 2 1,907 — 1,909 1,291 3,200 (1,907 ) 1,293 Interest expense — — — (575 ) (575 ) — (575 ) 575 — Miscellaneous (20 ) — — — (20 ) — (20 ) — (20 ) Total other (expense) income (20 ) 2 1,907 (575 ) 1,314 1,291 2,605 (1,332 ) 1,273 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 261 — 606 — 867 — 867 51,261 52,128 SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION (4,538 ) (885 ) 179,145 (502 ) 173,220 (6,976 ) 166,244 (115,684 ) 50,560 INCOME TAX PROVISION — — — — — (5 ) (5 ) — (5 ) SEGMENT (LOSS) PROFIT/NET INCOME $ (4,538 ) $ (885 ) $ 179,145 $ (502 ) $ 173,220 $ (6,981 ) $ 166,239 $ (115,684 ) $ 50,555 (1) Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investment in each venture using the equity method of accounting. (2) For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable. Six Months Ended June 30, 2023 Valencia San Francisco Great Park Commercial Total reportable segments Corporate and unallocated Total under management Removal of unconsolidated entities(1) Total consolidated REVENUES: Land sales $ (9 ) $ — $ 361,801 $ — $ 361,792 $ — $ 361,792 $ (361,801 ) $ (9 ) Land sales—related party 595 — 7,395 — 7,990 — 7,990 (7,395 ) 595 Management services—related party(2) — — 24,799 211 25,010 — 25,010 — 25,010 Operating properties 1,130 324 — 4,175 5,629 — 5,629 (4,175 ) 1,454 Total revenues 1,716 324 393,995 4,386 400,421 — 400,421 (373,371 ) 27,050 COSTS AND EXPENSES: Land sales — — 165,749 — 165,749 — 165,749 (165,749 ) — Management services(2) — — 12,048 — 12,048 — 12,048 — 12,048 Operating properties 2,970 — — 1,803 4,773 — 4,773 (1,803 ) 2,970 Selling, general, and administrative 6,041 2,242 5,143 2,153 15,579 18,179 33,758 (7,296 ) 26,462 Management fees—related party — — 31,848 — 31,848 — 31,848 (31,848 ) — Total costs and expenses 9,011 2,242 214,788 3,956 229,997 18,179 248,176 (206,696 ) 41,480 OTHER (EXPENSE) INCOME: Interest income — 3 3,208 — 3,211 2,126 5,337 (3,208 ) 2,129 Interest expense — — — (1,108 ) (1,108 ) — (1,108 ) 1,108 — Miscellaneous (41 ) — — — (41 ) — (41 ) — (41 ) Total other (expense) income (41 ) 3 3,208 (1,108 ) 2,062 2,126 4,188 (2,100 ) 2,088 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 359 — 1,236 — 1,595 — 1,595 51,581 53,176 SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION (6,977 ) (1,915 ) 183,651 (678 ) 174,081 (16,053 ) 158,028 (117,194 ) 40,834 INCOME TAX PROVISION — — — — — (13 ) (13 ) — (13 ) SEGMENT (LOSS) PROFIT/NET INCOME $ (6,977 ) $ (1,915 ) $ 183,651 $ (678 ) $ 174,081 $ (16,066 ) $ 158,015 $ (117,194 ) $ 40,821 (1) Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investments in each venture using the equity method of accounting. (2) For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable. The table below reconciles the Great Park segment results to the equity in earnings from our investment in the Great Park Venture that is reflected in the condensed consolidated statements of operations for the three and six months ended June 30, 2023 (in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Segment profit from operations $ 179,145 $ 183,651 Less net income of management company attributed to the Great Park segment 10,988 12,751 Net income of the Great Park Venture 168,157 170,900 The Company’s share of net income of the Great Park Venture 63,059 64,088 Basis difference amortization, net (10,737 ) (10,604 ) Equity in earnings from the Great Park Venture $ 52,322 $ 53,484 The table below reconciles the Commercial segment results to the equity in loss from our investment in the Gateway Commercial Venture that is reflected in the condensed consolidated statements of operations for the three and six months ended June 30, 2023 (in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Segment loss from operations $ (502 ) $ (678 ) Less net income of management company attributed to the Commercial segment 104 211 Net loss of the Gateway Commercial Venture (606 ) (889 ) Equity in loss from the Gateway Commercial Venture $ (455 ) $ (667 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20230720083825/en/Contacts Investor Relations: Leo Kij, 949-349-1029 Leo.Kij@fivepoint.com or Media: Eric Morgan, 949-349-1088 Eric.Morgan@fivepoint.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Five Point Holdings, LLC Reports Second Quarter 2023 Results By: Five Point Holdings, LLC via Business Wire July 20, 2023 at 16:10 PM EDT Second Quarter 2023 Highlights Great Park Venture sold 798 homesites on approximately 84 acres of land and recognized revenue of $357.8 million. Great Park Venture distributions and incentive compensation payments to the Company totaled $103.8 million. Great Park builder sales of 177 homes during the quarter compared to 255 in the first quarter of 2023. Valencia builder sales of 79 homes during the quarter compared to 75 in the first quarter of 2023. Consolidated revenues of $21.3 million; consolidated net income of $50.6 million, which includes $52.3 million equity in earnings from the Great Park Venture. Cash and cash equivalents of $193.2 million as of June 30, 2023. Debt to total capitalization ratio of 24.7% and liquidity of $318.2 million as of June 30, 2023. Five Point Holdings, LLC (“Five Point” or the “Company”) (NYSE:FPH), an owner and developer of large mixed-use planned communities in California, today reported its second quarter 2023 results. Dan Hedigan, Chief Executive Officer, said, “During the second quarter, we were able to execute effectively on our three main priorities (generating revenue, rightsizing SG&A, and managing capital spend) and to achieve results that exceeded our expectations. For the quarter, we had $50.6 million in consolidated net income and a net cash increase of $86.6 million, leaving us with a cash balance of $193.2 million at quarter end. While these results are due in part to the residential land sale market that has strengthened throughout the year, it is also a testament to the management team and our continued focus on matching our capital spend with near term revenue opportunities. Five Point has created a strong organizational base for moving the development of our communities forward and creating value for our shareholders.” Consolidated Results Liquidity and Capital Resources As of June 30, 2023, total liquidity of $318.2 million was comprised of cash and cash equivalents totaling $193.2 million and borrowing availability of $125.0 million under our unsecured revolving credit facility. Total capital was $1.9 billion, reflecting $2.9 billion in assets and $1.0 billion in liabilities and redeemable noncontrolling interests. Results of Operations for the Three Months Ended June 30, 2023 Revenues. Revenues of $21.3 million for the three months ended June 30, 2023 were primarily generated from management services. Additionally, we collected $22.0 million in incentive compensation payments under our development management agreement with the Great Park Venture. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $52.1 million for the three months ended June 30, 2023. The Great Park Venture generated net income of $168.2 million during the three months ended June 30, 2023, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $52.3 million. Additionally, we recognized $0.5 million in loss from our 75% interest in the Gateway Commercial Venture. During the three months ended June 30, 2023, the Great Park Venture sold 798 homesites on approximately 84 acres of land at the Great Park Neighborhoods. The Great Park Venture recognized $357.8 million in revenue, consisting of $214.7 million paid at closing plus $143.1 million in revenue representing variable consideration from future price participation payments expected to be received when homes are sold to homebuyers. After completing the land sale, the Great Park Venture made aggregate distributions of $25.5 million to holders of Legacy Interests and $218.0 million to holders of Percentage Interests. We received $81.8 million for our 37.5% Percentage Interest. Selling, general, and administrative. Selling, general, and administrative expenses were $12.7 million for the three months ended June 30, 2023. Net income. Consolidated net income for the quarter was $50.6 million. Net income attributable to noncontrolling interests totaled $27.0 million, resulting in net income attributable to the Company of $23.6 million. Net income attributable to noncontrolling interests represents the portion of income allocated to related party partners and members that hold units of the operating company and the San Francisco Venture. Holders of units of the operating company and the San Francisco Venture can redeem their interests for either, at our election, our Class A common shares on a one-for-one basis or cash. In connection with any redemption or exchange, our ownership of our operating subsidiaries will increase thereby reducing the amount of income allocated to noncontrolling interests in subsequent periods. Conference Call Information In conjunction with this release, Five Point will host a conference call on Thursday, July 20, 2023 at 5:00 p.m. Eastern Time. Dan Hedigan, Chief Executive Officer, and Leo Kij, Interim Chief Financial Officer, will host the call. Interested investors and other parties can listen to a live Internet audio webcast of the conference call that will be available on the Five Point website at ir.fivepoint.com. The conference call can also be accessed by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international). A telephonic replay will be available starting approximately two hours after the end of the call by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 13740212. The telephonic replay will be available until 11:59 p.m. Eastern Time on July 28, 2023. About Five Point Five Point, headquartered in Irvine, California, designs and develops large mixed-use planned communities in Orange County, Los Angeles County, and San Francisco County that combine residential, commercial, retail, educational, and recreational elements with public amenities, including civic areas for parks and open space. Five Point’s communities include the Great Park Neighborhoods® in Irvine, Valencia® in Los Angeles County, and Candlestick® and The San Francisco Shipyard® in the City of San Francisco. These communities are designed to include approximately 40,000 residential homes and approximately 23 million square feet of commercial space. Forward-Looking Statements This press release contains forward-looking statements that are subject to risks and uncertainties. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. This press release may contain forward-looking statements regarding: our expectations of our future revenues, costs and financial performance; future demographics and market conditions in the areas where our communities are located; the outcome of pending litigation and its effect on our operations; the timing of our development activities; and the timing of future real estate purchases or sales. We caution you that any forward-looking statements included in this press release are based on our current views and information currently available to us. Forward-looking statements are subject to risks, trends, uncertainties and factors that are beyond our control. Some of these risks and uncertainties are described in more detail in our filings with the SEC, including our Annual Report on Form 10-K, under the heading “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. They are based on estimates and assumptions only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. FIVE POINT HOLDINGS, LLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 REVENUES: Land sales $ 16 $ 14 $ (9 ) $ 571 Land sales—related party (29 ) 1,711 595 1,712 Management services—related party 20,774 2,703 25,010 6,250 Operating properties 588 965 1,454 1,746 Total revenues 21,349 5,393 27,050 10,279 COSTS AND EXPENSES: Land sales — — — — Management services 9,682 2,200 12,048 4,884 Operating properties 1,798 2,378 2,970 4,217 Selling, general, and administrative 12,710 12,651 26,462 29,442 Restructuring — — — 19,437 Total costs and expenses 24,190 17,229 41,480 57,980 OTHER INCOME (EXPENSE): Interest income 1,293 117 2,129 138 Miscellaneous (20 ) 112 (41 ) 224 Total other income 1,273 229 2,088 362 EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES 52,128 643 53,176 (389 ) INCOME (LOSS) BEFORE INCOME TAX PROVISION 50,560 (10,964 ) 40,834 (47,728 ) INCOME TAX PROVISION (5 ) (8 ) (13 ) (13 ) NET INCOME (LOSS) 50,555 (10,972 ) 40,821 (47,741 ) LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 26,984 (5,861 ) 21,786 (25,500 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY $ 23,571 $ (5,111 ) $ 19,035 $ (22,241 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE Basic $ 0.34 $ (0.07 ) $ 0.28 $ (0.32 ) Diluted $ 0.34 $ (0.07 ) $ 0.27 $ (0.33 ) WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING Basic 68,811,975 68,495,523 68,758,894 68,332,460 Diluted 145,040,689 69,635,563 144,939,450 69,472,500 NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS B SHARE Basic and diluted $ 0.00 $ (0.00 ) $ 0.00 $ (0.00 ) WEIGHTED AVERAGE CLASS B SHARES OUTSTANDING Basic and diluted 79,233,544 79,233,544 79,233,544 79,233,544 FIVE POINT HOLDINGS, LLC CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except shares) (Unaudited) June 30, 2023 December 31, 2022 ASSETS INVENTORIES $ 2,254,935 $ 2,239,125 INVESTMENT IN UNCONSOLIDATED ENTITIES 302,337 331,594 PROPERTIES AND EQUIPMENT, NET 29,668 30,243 INTANGIBLE ASSET, NET—RELATED PARTY 31,656 40,257 CASH AND CASH EQUIVALENTS 193,203 131,771 RESTRICTED CASH AND CERTIFICATES OF DEPOSIT 992 992 RELATED PARTY ASSETS 89,933 97,126 OTHER ASSETS 11,179 14,676 TOTAL $ 2,913,903 $ 2,885,784 LIABILITIES AND CAPITAL LIABILITIES: Notes payable, net $ 621,419 $ 620,651 Accounts payable and other liabilities 90,760 94,426 Related party liabilities 83,684 93,086 Deferred income tax liability, net 11,506 11,506 Payable pursuant to tax receivable agreement 173,208 173,068 Total liabilities 980,577 992,737 REDEEMABLE NONCONTROLLING INTEREST 25,000 25,000 CAPITAL: Class A common shares; No par value; Issued and outstanding: June 30, 2023—69,199,938 shares; December 31, 2022—69,068,354 shares Class B common shares; No par value; Issued and outstanding: June 30, 2023—79,233,544 shares; December 31, 2022—79,233,544 shares Contributed capital 589,634 587,733 Retained earnings 52,421 33,386 Accumulated other comprehensive loss (2,939 ) (2,988 ) Total members’ capital 639,116 618,131 Noncontrolling interests 1,269,210 1,249,916 Total capital 1,908,326 1,868,047 TOTAL $ 2,913,903 $ 2,885,784 FIVE POINT HOLDINGS, LLC SUPPLEMENTAL DATA (In thousands) (Unaudited) Liquidity June 30, 2023 Cash and cash equivalents $ 193,203 Borrowing capacity(1) 125,000 Total liquidity $ 318,203 (1) As of June 30, 2023, no borrowings or letters of credit were outstanding on the Company’s $125.0 million revolving credit facility. Debt to Total Capitalization and Net Debt to Total Capitalization June 30, 2023 Debt(1) $ 625,000 Total capital 1,908,326 Total capitalization $ 2,533,326 Debt to total capitalization 24.7 % Debt(1) $ 625,000 Less: Cash and cash equivalents 193,203 Net debt 431,797 Total capital 1,908,326 Total net capitalization $ 2,340,123 Net debt to total capitalization(2) 18.5 % (1) For purposes of this calculation, debt is the amount due on the Company’s notes payable before offsetting for capitalized deferred financing costs. (2) Net debt to total capitalization is a non-GAAP financial measure defined as net debt (debt less cash and cash equivalents) divided by total net capitalization (net debt plus total capital). The Company believes the ratio of net debt to total capitalization is a relevant and a useful financial measure to investors in understanding the leverage employed in the Company’s operations. However, because net debt to total capitalization is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the Company's GAAP results. Segment Results The following table reconciles the results of operations of our segments to our consolidated results for the three and six months ended June 30, 2023 (in thousands): Three Months Ended June 30, 2023 Valencia San Francisco Great Park Commercial Total reportable segments Corporate and unallocated Total under management Removal of unconsolidated entities(1) Total consolidated REVENUES: Land sales $ 16 $ — $ 358,668 $ — $ 358,684 $ — $ 358,684 $ (358,668 ) $ 16 Land sales—related party (29 ) — 1,928 — 1,899 — 1,899 (1,928 ) (29 ) Management services—related party(2) — — 20,670 104 20,774 — 20,774 — 20,774 Operating properties 426 162 — 2,021 2,609 — 2,609 (2,021 ) 588 Total revenues 413 162 381,266 2,125 383,966 — 383,966 (362,617 ) 21,349 COSTS AND EXPENSES: Land sales — — 165,749 — 165,749 — 165,749 (165,749 ) — Management services(2) — — 9,682 — 9,682 — 9,682 — 9,682 Operating properties 1,798 — — 1,019 2,817 — 2,817 (1,019 ) 1,798 Selling, general, and administrative 3,394 1,049 1,815 1,033 7,291 8,267 15,558 (2,848 ) 12,710 Management fees—related party — — 27,388 — 27,388 — 27,388 (27,388 ) — Total costs and expenses 5,192 1,049 204,634 2,052 212,927 8,267 221,194 (197,004 ) 24,190 OTHER (EXPENSE) INCOME: Interest income — 2 1,907 — 1,909 1,291 3,200 (1,907 ) 1,293 Interest expense — — — (575 ) (575 ) — (575 ) 575 — Miscellaneous (20 ) — — — (20 ) — (20 ) — (20 ) Total other (expense) income (20 ) 2 1,907 (575 ) 1,314 1,291 2,605 (1,332 ) 1,273 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 261 — 606 — 867 — 867 51,261 52,128 SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION (4,538 ) (885 ) 179,145 (502 ) 173,220 (6,976 ) 166,244 (115,684 ) 50,560 INCOME TAX PROVISION — — — — — (5 ) (5 ) — (5 ) SEGMENT (LOSS) PROFIT/NET INCOME $ (4,538 ) $ (885 ) $ 179,145 $ (502 ) $ 173,220 $ (6,981 ) $ 166,239 $ (115,684 ) $ 50,555 (1) Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investment in each venture using the equity method of accounting. (2) For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable. Six Months Ended June 30, 2023 Valencia San Francisco Great Park Commercial Total reportable segments Corporate and unallocated Total under management Removal of unconsolidated entities(1) Total consolidated REVENUES: Land sales $ (9 ) $ — $ 361,801 $ — $ 361,792 $ — $ 361,792 $ (361,801 ) $ (9 ) Land sales—related party 595 — 7,395 — 7,990 — 7,990 (7,395 ) 595 Management services—related party(2) — — 24,799 211 25,010 — 25,010 — 25,010 Operating properties 1,130 324 — 4,175 5,629 — 5,629 (4,175 ) 1,454 Total revenues 1,716 324 393,995 4,386 400,421 — 400,421 (373,371 ) 27,050 COSTS AND EXPENSES: Land sales — — 165,749 — 165,749 — 165,749 (165,749 ) — Management services(2) — — 12,048 — 12,048 — 12,048 — 12,048 Operating properties 2,970 — — 1,803 4,773 — 4,773 (1,803 ) 2,970 Selling, general, and administrative 6,041 2,242 5,143 2,153 15,579 18,179 33,758 (7,296 ) 26,462 Management fees—related party — — 31,848 — 31,848 — 31,848 (31,848 ) — Total costs and expenses 9,011 2,242 214,788 3,956 229,997 18,179 248,176 (206,696 ) 41,480 OTHER (EXPENSE) INCOME: Interest income — 3 3,208 — 3,211 2,126 5,337 (3,208 ) 2,129 Interest expense — — — (1,108 ) (1,108 ) — (1,108 ) 1,108 — Miscellaneous (41 ) — — — (41 ) — (41 ) — (41 ) Total other (expense) income (41 ) 3 3,208 (1,108 ) 2,062 2,126 4,188 (2,100 ) 2,088 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 359 — 1,236 — 1,595 — 1,595 51,581 53,176 SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION (6,977 ) (1,915 ) 183,651 (678 ) 174,081 (16,053 ) 158,028 (117,194 ) 40,834 INCOME TAX PROVISION — — — — — (13 ) (13 ) — (13 ) SEGMENT (LOSS) PROFIT/NET INCOME $ (6,977 ) $ (1,915 ) $ 183,651 $ (678 ) $ 174,081 $ (16,066 ) $ 158,015 $ (117,194 ) $ 40,821 (1) Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investments in each venture using the equity method of accounting. (2) For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable. The table below reconciles the Great Park segment results to the equity in earnings from our investment in the Great Park Venture that is reflected in the condensed consolidated statements of operations for the three and six months ended June 30, 2023 (in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Segment profit from operations $ 179,145 $ 183,651 Less net income of management company attributed to the Great Park segment 10,988 12,751 Net income of the Great Park Venture 168,157 170,900 The Company’s share of net income of the Great Park Venture 63,059 64,088 Basis difference amortization, net (10,737 ) (10,604 ) Equity in earnings from the Great Park Venture $ 52,322 $ 53,484 The table below reconciles the Commercial segment results to the equity in loss from our investment in the Gateway Commercial Venture that is reflected in the condensed consolidated statements of operations for the three and six months ended June 30, 2023 (in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Segment loss from operations $ (502 ) $ (678 ) Less net income of management company attributed to the Commercial segment 104 211 Net loss of the Gateway Commercial Venture (606 ) (889 ) Equity in loss from the Gateway Commercial Venture $ (455 ) $ (667 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20230720083825/en/Contacts Investor Relations: Leo Kij, 949-349-1029 Leo.Kij@fivepoint.com or Media: Eric Morgan, 949-349-1088 Eric.Morgan@fivepoint.com
Second Quarter 2023 Highlights Great Park Venture sold 798 homesites on approximately 84 acres of land and recognized revenue of $357.8 million. Great Park Venture distributions and incentive compensation payments to the Company totaled $103.8 million. Great Park builder sales of 177 homes during the quarter compared to 255 in the first quarter of 2023. Valencia builder sales of 79 homes during the quarter compared to 75 in the first quarter of 2023. Consolidated revenues of $21.3 million; consolidated net income of $50.6 million, which includes $52.3 million equity in earnings from the Great Park Venture. Cash and cash equivalents of $193.2 million as of June 30, 2023. Debt to total capitalization ratio of 24.7% and liquidity of $318.2 million as of June 30, 2023.
Five Point Holdings, LLC (“Five Point” or the “Company”) (NYSE:FPH), an owner and developer of large mixed-use planned communities in California, today reported its second quarter 2023 results. Dan Hedigan, Chief Executive Officer, said, “During the second quarter, we were able to execute effectively on our three main priorities (generating revenue, rightsizing SG&A, and managing capital spend) and to achieve results that exceeded our expectations. For the quarter, we had $50.6 million in consolidated net income and a net cash increase of $86.6 million, leaving us with a cash balance of $193.2 million at quarter end. While these results are due in part to the residential land sale market that has strengthened throughout the year, it is also a testament to the management team and our continued focus on matching our capital spend with near term revenue opportunities. Five Point has created a strong organizational base for moving the development of our communities forward and creating value for our shareholders.” Consolidated Results Liquidity and Capital Resources As of June 30, 2023, total liquidity of $318.2 million was comprised of cash and cash equivalents totaling $193.2 million and borrowing availability of $125.0 million under our unsecured revolving credit facility. Total capital was $1.9 billion, reflecting $2.9 billion in assets and $1.0 billion in liabilities and redeemable noncontrolling interests. Results of Operations for the Three Months Ended June 30, 2023 Revenues. Revenues of $21.3 million for the three months ended June 30, 2023 were primarily generated from management services. Additionally, we collected $22.0 million in incentive compensation payments under our development management agreement with the Great Park Venture. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $52.1 million for the three months ended June 30, 2023. The Great Park Venture generated net income of $168.2 million during the three months ended June 30, 2023, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $52.3 million. Additionally, we recognized $0.5 million in loss from our 75% interest in the Gateway Commercial Venture. During the three months ended June 30, 2023, the Great Park Venture sold 798 homesites on approximately 84 acres of land at the Great Park Neighborhoods. The Great Park Venture recognized $357.8 million in revenue, consisting of $214.7 million paid at closing plus $143.1 million in revenue representing variable consideration from future price participation payments expected to be received when homes are sold to homebuyers. After completing the land sale, the Great Park Venture made aggregate distributions of $25.5 million to holders of Legacy Interests and $218.0 million to holders of Percentage Interests. We received $81.8 million for our 37.5% Percentage Interest. Selling, general, and administrative. Selling, general, and administrative expenses were $12.7 million for the three months ended June 30, 2023. Net income. Consolidated net income for the quarter was $50.6 million. Net income attributable to noncontrolling interests totaled $27.0 million, resulting in net income attributable to the Company of $23.6 million. Net income attributable to noncontrolling interests represents the portion of income allocated to related party partners and members that hold units of the operating company and the San Francisco Venture. Holders of units of the operating company and the San Francisco Venture can redeem their interests for either, at our election, our Class A common shares on a one-for-one basis or cash. In connection with any redemption or exchange, our ownership of our operating subsidiaries will increase thereby reducing the amount of income allocated to noncontrolling interests in subsequent periods. Conference Call Information In conjunction with this release, Five Point will host a conference call on Thursday, July 20, 2023 at 5:00 p.m. Eastern Time. Dan Hedigan, Chief Executive Officer, and Leo Kij, Interim Chief Financial Officer, will host the call. Interested investors and other parties can listen to a live Internet audio webcast of the conference call that will be available on the Five Point website at ir.fivepoint.com. The conference call can also be accessed by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international). A telephonic replay will be available starting approximately two hours after the end of the call by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 13740212. The telephonic replay will be available until 11:59 p.m. Eastern Time on July 28, 2023. About Five Point Five Point, headquartered in Irvine, California, designs and develops large mixed-use planned communities in Orange County, Los Angeles County, and San Francisco County that combine residential, commercial, retail, educational, and recreational elements with public amenities, including civic areas for parks and open space. Five Point’s communities include the Great Park Neighborhoods® in Irvine, Valencia® in Los Angeles County, and Candlestick® and The San Francisco Shipyard® in the City of San Francisco. These communities are designed to include approximately 40,000 residential homes and approximately 23 million square feet of commercial space. Forward-Looking Statements This press release contains forward-looking statements that are subject to risks and uncertainties. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “would,” “result” and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. This press release may contain forward-looking statements regarding: our expectations of our future revenues, costs and financial performance; future demographics and market conditions in the areas where our communities are located; the outcome of pending litigation and its effect on our operations; the timing of our development activities; and the timing of future real estate purchases or sales. We caution you that any forward-looking statements included in this press release are based on our current views and information currently available to us. Forward-looking statements are subject to risks, trends, uncertainties and factors that are beyond our control. Some of these risks and uncertainties are described in more detail in our filings with the SEC, including our Annual Report on Form 10-K, under the heading “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. They are based on estimates and assumptions only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. FIVE POINT HOLDINGS, LLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 REVENUES: Land sales $ 16 $ 14 $ (9 ) $ 571 Land sales—related party (29 ) 1,711 595 1,712 Management services—related party 20,774 2,703 25,010 6,250 Operating properties 588 965 1,454 1,746 Total revenues 21,349 5,393 27,050 10,279 COSTS AND EXPENSES: Land sales — — — — Management services 9,682 2,200 12,048 4,884 Operating properties 1,798 2,378 2,970 4,217 Selling, general, and administrative 12,710 12,651 26,462 29,442 Restructuring — — — 19,437 Total costs and expenses 24,190 17,229 41,480 57,980 OTHER INCOME (EXPENSE): Interest income 1,293 117 2,129 138 Miscellaneous (20 ) 112 (41 ) 224 Total other income 1,273 229 2,088 362 EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES 52,128 643 53,176 (389 ) INCOME (LOSS) BEFORE INCOME TAX PROVISION 50,560 (10,964 ) 40,834 (47,728 ) INCOME TAX PROVISION (5 ) (8 ) (13 ) (13 ) NET INCOME (LOSS) 50,555 (10,972 ) 40,821 (47,741 ) LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 26,984 (5,861 ) 21,786 (25,500 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY $ 23,571 $ (5,111 ) $ 19,035 $ (22,241 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE Basic $ 0.34 $ (0.07 ) $ 0.28 $ (0.32 ) Diluted $ 0.34 $ (0.07 ) $ 0.27 $ (0.33 ) WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING Basic 68,811,975 68,495,523 68,758,894 68,332,460 Diluted 145,040,689 69,635,563 144,939,450 69,472,500 NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS B SHARE Basic and diluted $ 0.00 $ (0.00 ) $ 0.00 $ (0.00 ) WEIGHTED AVERAGE CLASS B SHARES OUTSTANDING Basic and diluted 79,233,544 79,233,544 79,233,544 79,233,544 FIVE POINT HOLDINGS, LLC CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except shares) (Unaudited) June 30, 2023 December 31, 2022 ASSETS INVENTORIES $ 2,254,935 $ 2,239,125 INVESTMENT IN UNCONSOLIDATED ENTITIES 302,337 331,594 PROPERTIES AND EQUIPMENT, NET 29,668 30,243 INTANGIBLE ASSET, NET—RELATED PARTY 31,656 40,257 CASH AND CASH EQUIVALENTS 193,203 131,771 RESTRICTED CASH AND CERTIFICATES OF DEPOSIT 992 992 RELATED PARTY ASSETS 89,933 97,126 OTHER ASSETS 11,179 14,676 TOTAL $ 2,913,903 $ 2,885,784 LIABILITIES AND CAPITAL LIABILITIES: Notes payable, net $ 621,419 $ 620,651 Accounts payable and other liabilities 90,760 94,426 Related party liabilities 83,684 93,086 Deferred income tax liability, net 11,506 11,506 Payable pursuant to tax receivable agreement 173,208 173,068 Total liabilities 980,577 992,737 REDEEMABLE NONCONTROLLING INTEREST 25,000 25,000 CAPITAL: Class A common shares; No par value; Issued and outstanding: June 30, 2023—69,199,938 shares; December 31, 2022—69,068,354 shares Class B common shares; No par value; Issued and outstanding: June 30, 2023—79,233,544 shares; December 31, 2022—79,233,544 shares Contributed capital 589,634 587,733 Retained earnings 52,421 33,386 Accumulated other comprehensive loss (2,939 ) (2,988 ) Total members’ capital 639,116 618,131 Noncontrolling interests 1,269,210 1,249,916 Total capital 1,908,326 1,868,047 TOTAL $ 2,913,903 $ 2,885,784 FIVE POINT HOLDINGS, LLC SUPPLEMENTAL DATA (In thousands) (Unaudited) Liquidity June 30, 2023 Cash and cash equivalents $ 193,203 Borrowing capacity(1) 125,000 Total liquidity $ 318,203 (1) As of June 30, 2023, no borrowings or letters of credit were outstanding on the Company’s $125.0 million revolving credit facility. Debt to Total Capitalization and Net Debt to Total Capitalization June 30, 2023 Debt(1) $ 625,000 Total capital 1,908,326 Total capitalization $ 2,533,326 Debt to total capitalization 24.7 % Debt(1) $ 625,000 Less: Cash and cash equivalents 193,203 Net debt 431,797 Total capital 1,908,326 Total net capitalization $ 2,340,123 Net debt to total capitalization(2) 18.5 % (1) For purposes of this calculation, debt is the amount due on the Company’s notes payable before offsetting for capitalized deferred financing costs. (2) Net debt to total capitalization is a non-GAAP financial measure defined as net debt (debt less cash and cash equivalents) divided by total net capitalization (net debt plus total capital). The Company believes the ratio of net debt to total capitalization is a relevant and a useful financial measure to investors in understanding the leverage employed in the Company’s operations. However, because net debt to total capitalization is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the Company's GAAP results. Segment Results The following table reconciles the results of operations of our segments to our consolidated results for the three and six months ended June 30, 2023 (in thousands): Three Months Ended June 30, 2023 Valencia San Francisco Great Park Commercial Total reportable segments Corporate and unallocated Total under management Removal of unconsolidated entities(1) Total consolidated REVENUES: Land sales $ 16 $ — $ 358,668 $ — $ 358,684 $ — $ 358,684 $ (358,668 ) $ 16 Land sales—related party (29 ) — 1,928 — 1,899 — 1,899 (1,928 ) (29 ) Management services—related party(2) — — 20,670 104 20,774 — 20,774 — 20,774 Operating properties 426 162 — 2,021 2,609 — 2,609 (2,021 ) 588 Total revenues 413 162 381,266 2,125 383,966 — 383,966 (362,617 ) 21,349 COSTS AND EXPENSES: Land sales — — 165,749 — 165,749 — 165,749 (165,749 ) — Management services(2) — — 9,682 — 9,682 — 9,682 — 9,682 Operating properties 1,798 — — 1,019 2,817 — 2,817 (1,019 ) 1,798 Selling, general, and administrative 3,394 1,049 1,815 1,033 7,291 8,267 15,558 (2,848 ) 12,710 Management fees—related party — — 27,388 — 27,388 — 27,388 (27,388 ) — Total costs and expenses 5,192 1,049 204,634 2,052 212,927 8,267 221,194 (197,004 ) 24,190 OTHER (EXPENSE) INCOME: Interest income — 2 1,907 — 1,909 1,291 3,200 (1,907 ) 1,293 Interest expense — — — (575 ) (575 ) — (575 ) 575 — Miscellaneous (20 ) — — — (20 ) — (20 ) — (20 ) Total other (expense) income (20 ) 2 1,907 (575 ) 1,314 1,291 2,605 (1,332 ) 1,273 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 261 — 606 — 867 — 867 51,261 52,128 SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION (4,538 ) (885 ) 179,145 (502 ) 173,220 (6,976 ) 166,244 (115,684 ) 50,560 INCOME TAX PROVISION — — — — — (5 ) (5 ) — (5 ) SEGMENT (LOSS) PROFIT/NET INCOME $ (4,538 ) $ (885 ) $ 179,145 $ (502 ) $ 173,220 $ (6,981 ) $ 166,239 $ (115,684 ) $ 50,555 (1) Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investment in each venture using the equity method of accounting. (2) For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable. Six Months Ended June 30, 2023 Valencia San Francisco Great Park Commercial Total reportable segments Corporate and unallocated Total under management Removal of unconsolidated entities(1) Total consolidated REVENUES: Land sales $ (9 ) $ — $ 361,801 $ — $ 361,792 $ — $ 361,792 $ (361,801 ) $ (9 ) Land sales—related party 595 — 7,395 — 7,990 — 7,990 (7,395 ) 595 Management services—related party(2) — — 24,799 211 25,010 — 25,010 — 25,010 Operating properties 1,130 324 — 4,175 5,629 — 5,629 (4,175 ) 1,454 Total revenues 1,716 324 393,995 4,386 400,421 — 400,421 (373,371 ) 27,050 COSTS AND EXPENSES: Land sales — — 165,749 — 165,749 — 165,749 (165,749 ) — Management services(2) — — 12,048 — 12,048 — 12,048 — 12,048 Operating properties 2,970 — — 1,803 4,773 — 4,773 (1,803 ) 2,970 Selling, general, and administrative 6,041 2,242 5,143 2,153 15,579 18,179 33,758 (7,296 ) 26,462 Management fees—related party — — 31,848 — 31,848 — 31,848 (31,848 ) — Total costs and expenses 9,011 2,242 214,788 3,956 229,997 18,179 248,176 (206,696 ) 41,480 OTHER (EXPENSE) INCOME: Interest income — 3 3,208 — 3,211 2,126 5,337 (3,208 ) 2,129 Interest expense — — — (1,108 ) (1,108 ) — (1,108 ) 1,108 — Miscellaneous (41 ) — — — (41 ) — (41 ) — (41 ) Total other (expense) income (41 ) 3 3,208 (1,108 ) 2,062 2,126 4,188 (2,100 ) 2,088 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 359 — 1,236 — 1,595 — 1,595 51,581 53,176 SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION (6,977 ) (1,915 ) 183,651 (678 ) 174,081 (16,053 ) 158,028 (117,194 ) 40,834 INCOME TAX PROVISION — — — — — (13 ) (13 ) — (13 ) SEGMENT (LOSS) PROFIT/NET INCOME $ (6,977 ) $ (1,915 ) $ 183,651 $ (678 ) $ 174,081 $ (16,066 ) $ 158,015 $ (117,194 ) $ 40,821 (1) Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investments in each venture using the equity method of accounting. (2) For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable. The table below reconciles the Great Park segment results to the equity in earnings from our investment in the Great Park Venture that is reflected in the condensed consolidated statements of operations for the three and six months ended June 30, 2023 (in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Segment profit from operations $ 179,145 $ 183,651 Less net income of management company attributed to the Great Park segment 10,988 12,751 Net income of the Great Park Venture 168,157 170,900 The Company’s share of net income of the Great Park Venture 63,059 64,088 Basis difference amortization, net (10,737 ) (10,604 ) Equity in earnings from the Great Park Venture $ 52,322 $ 53,484 The table below reconciles the Commercial segment results to the equity in loss from our investment in the Gateway Commercial Venture that is reflected in the condensed consolidated statements of operations for the three and six months ended June 30, 2023 (in thousands): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 Segment loss from operations $ (502 ) $ (678 ) Less net income of management company attributed to the Commercial segment 104 211 Net loss of the Gateway Commercial Venture (606 ) (889 ) Equity in loss from the Gateway Commercial Venture $ (455 ) $ (667 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20230720083825/en/
Investor Relations: Leo Kij, 949-349-1029 Leo.Kij@fivepoint.com or Media: Eric Morgan, 949-349-1088 Eric.Morgan@fivepoint.com