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 Fourth Quarter and Year-End 2023 Results By: Five Point Holdings, LLC via Business Wire January 18, 2024 at 16:10 PM EST Fourth Quarter 2023 and Recent Highlights Valencia sold 583 homesites on approximately 46 acres of land for a purchase price of $101.8 million. Great Park Venture closed two commercial land sales totaling approximately 38 acres for an aggregate purchase price of $174.2 million. Great Park Venture distributions and incentive compensation payments to the Company totaled $92.0 million. Valencia builder sales of 31 homes during the quarter. Great Park builder sales of 76 homes during the quarter. Consolidated revenues of $118.8 million; consolidated net income of $58.7 million. Cash and cash equivalents of $353.8 million as of December 31, 2023. Debt to total capitalization ratio of 24.0% and liquidity of $478.8 million as of December 31, 2023. On January 16, 2024, exchanged $623.5 million of existing 7.875% Senior Notes due November 2025 for $100.0 million in cash and $523.5 million in new 10.5% initial rate Senior Notes due January 2028. 2023 Highlights Valencia closed the sale of 729 homesites on approximately 72 acres of land for an aggregate purchase price of $162.4 million. Great Park Venture recognized land sale revenue of $532.0 million from the sale of 38 acres of commercial land and 798 homesites on approximately 84 acres of land. Great Park Venture distributions and incentive compensation payments to the Company totaled $195.8 million. Valencia builder sales of 297 homes during the year. Great Park builder sales of 628 homes during the year. Consolidated revenues of $211.7 million; consolidated net income of $113.7 million. Extended the maturity date of the Company’s $125.0 million unsecured revolving credit facility to April 2026. 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 fourth quarter and year-end 2023 results. Dan Hedigan, Chief Executive Officer, said, “We finished 2023 strong with consolidated net income for the quarter of $58.7 million, giving us consolidated net income for the year of $113.7 million and total cash and cash equivalents of $353.8 million as of year-end. This week we successfully settled our senior note exchange with a participation rate over 99%. Achieving these results in the face of a challenging economic and interest rate environment is a testament to our team’s focus on executing our key operating priorities: generating revenue, right-sizing our SG&A, and managing our capital spend. We will continue to closely monitor the market and interest rates; however, we believe that the ongoing housing supply shortage will help sustain strong demand for our land.” Consolidated Results Liquidity and Capital Resources As of December 31, 2023, total liquidity of $478.8 million was comprised of cash and cash equivalents totaling $353.8 million and borrowing availability of $125.0 million under our unsecured revolving credit facility. Total capital was $2.0 billion, reflecting $3.0 billion in assets and $1.0 billion in liabilities and redeemable noncontrolling interests. Results of Operations for the Three Months Ended December 31, 2023 Revenues. Revenues of $118.8 million for the three months ended December 31, 2023 were primarily generated from land sales at our Valencia segment. At Valencia we closed the sale of land entitled for an aggregate of 583 homesites on approximately 46 acres. The fixed base purchase price of $101.8 million was paid at closing. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $24.0 million for the three months ended December 31, 2023. The Great Park Venture generated net income of $81.1 million during the three months ended December 31, 2023, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $25.9 million. Additionally, we recognized $1.9 million in loss from our 75% interest in the Gateway Commercial Venture. During the three months ended December 31, 2023, the Great Park Venture closed two commercial land sales totaling approximately 38 acres for an aggregate purchase price of $174.2 million. After completing the land sale, the Great Park Venture made aggregate distributions of $22.6 million to holders of Legacy Interests and $193.1 million to holders of Percentage Interests. We received $72.4 million for our 37.5% Percentage Interest. Selling, general, and administrative. Selling, general, and administrative expenses were $13.1 million for the three months ended December 31, 2023. Net income. Consolidated net income for the quarter was $58.7 million. Net income attributable to noncontrolling interests totaled $29.0 million, resulting in net income attributable to the Company of $29.8 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. Results of Operations for the Twelve Months Ended December 31, 2023 Revenues. Revenues of $211.7 million for the twelve months ended December 31, 2023 were primarily generated from land sales at our Valencia segment. At Valencia we closed the sale of land entitled for an aggregate of 729 homesites on approximately 72 acres. The fixed base purchase price of $162.4 million was paid at closing. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $76.6 million for the twelve months ended December 31, 2023. The Great Park Venture generated net income of $250.6 million during the twelve months ended December 31, 2023, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $78.9 million. Additionally, we recognized $2.9 million in loss from our 75% interest in the Gateway Commercial Venture. During the twelve months ended December 31, 2023, the Great Park Venture closed the sale of approximately 38 acres of land entitled for commercial use for an aggregate purchase price of $174.2 million and sold 798 homesites on approximately 84 acres of land at the Great Park Neighborhoods. For the homesite sale, 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. The Great Park Venture made aggregate distributions of $48.2 million to holders of Legacy Interests and $411.2 million to holders of Percentage Interests. We received $154.2 million for our 37.5% Percentage Interest. Selling, general, and administrative. Selling, general, and administrative expenses were $51.5 million for the twelve months ended December 31, 2023. Net income. Consolidated net income for the year was $113.7 million. Net income attributable to noncontrolling interests totaled $58.3 million, resulting in net income attributable to the Company of $55.4 million. Conference Call Information In conjunction with this release, Five Point will host a conference call on Thursday, January 18, 2024 at 5:00 p.m. Eastern Time. Dan Hedigan, Chief Executive Officer, and Kim Tobler, 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 three 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 13743863. The telephonic replay will be available until 11:59 p.m. Eastern Time on January 27, 2024. 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. Forward-looking statements include, among others, statements that refer to: our expectations of our future home sales and/or builder sales; the impact of inflation and interest rates; our future revenues, costs and financial performance, including with respect to cash generation and profitability; and future demographics and market conditions, including housing supply levels, in the areas where our communities are located. 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 CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 REVENUES: Land sales $ 100,111 $ 270 $ 160,796 $ 913 Land sales—related party — 2,983 595 7,512 Management services—related party 18,109 13,075 47,621 31,433 Operating properties 539 671 2,720 2,836 Total revenues 118,759 16,999 211,732 42,694 COSTS AND EXPENSES: Land sales 66,684 (996 ) 105,651 (996 ) Management services 7,751 7,889 22,170 20,261 Operating properties 1,846 2,433 6,167 8,230 Selling, general, and administrative 13,095 13,119 51,495 54,591 Restructuring — — — 19,437 Total costs and expenses 89,376 22,445 185,483 101,523 OTHER INCOME (EXPENSE): Interest income 2,688 381 7,230 826 Miscellaneous (1,809 ) (91 ) (776 ) 245 Total other income 879 290 6,454 1,071 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 24,041 26,167 76,595 21,513 INCOME (LOSS) BEFORE INCOME TAX BENEFIT 54,303 21,011 109,298 (36,245 ) INCOME TAX BENEFIT 4,434 1,487 4,418 1,471 NET INCOME (LOSS) 58,737 22,498 113,716 (34,774 ) LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 28,981 11,221 58,322 (19,371 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY $ 29,756 $ 11,277 $ 55,394 $ (15,403 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE Basic $ 0.43 $ 0.16 $ 0.80 $ (0.22 ) Diluted $ 0.39 $ 0.15 $ 0.76 $ (0.23 ) WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING Basic 68,919,591 68,534,163 68,826,340 68,429,271 Diluted 145,331,135 144,630,573 145,131,125 68,430,212 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 CONSOLIDATED BALANCE SHEETS (In thousands, except shares) (Unaudited) December 31, 2023 December 31, 2022 ASSETS INVENTORIES $ 2,213,479 $ 2,239,125 INVESTMENT IN UNCONSOLIDATED ENTITIES 252,816 331,594 PROPERTIES AND EQUIPMENT, NET 29,145 30,243 INTANGIBLE ASSET, NET—RELATED PARTY 25,270 40,257 CASH AND CASH EQUIVALENTS 353,801 131,771 RESTRICTED CASH AND CERTIFICATES OF DEPOSIT 992 992 RELATED PARTY ASSETS 83,970 97,126 OTHER ASSETS 9,815 14,676 TOTAL $ 2,969,288 $ 2,885,784 LIABILITIES AND CAPITAL LIABILITIES: Notes payable, net $ 622,186 $ 620,651 Accounts payable and other liabilities 81,649 94,426 Related party liabilities 78,074 93,086 Deferred income tax liability, net 7,067 11,506 Payable pursuant to tax receivable agreement 173,208 173,068 Total liabilities 962,184 992,737 REDEEMABLE NONCONTROLLING INTEREST 25,000 25,000 CAPITAL: Class A common shares; No par value; Issued and outstanding: December 31, 2023—69,199,938 shares; December 31, 2022—69,068,354 shares Class B common shares; No par value; Issued and outstanding: December 31, 2023—79,233,544 shares; December 31, 2022—79,233,544 shares Contributed capital 591,606 587,733 Retained earnings 88,780 33,386 Accumulated other comprehensive loss (2,332 ) (2,988 ) Total members’ capital 678,054 618,131 Noncontrolling interests 1,304,050 1,249,916 Total capital 1,982,104 1,868,047 TOTAL $ 2,969,288 $ 2,885,784 FIVE POINT HOLDINGS, LLC SUPPLEMENTAL DATA (In thousands) (Unaudited) Liquidity December 31, 2023 Cash and cash equivalents $ 353,801 Borrowing capacity(1) 125,000 Total liquidity $ 478,801 (1) As of December 31, 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 December 31, 2023 Debt(1) $ 625,000 Total capital 1,982,104 Total capitalization $ 2,607,104 Debt to total capitalization 24.0 % Debt(1) $ 625,000 Less: Cash and cash equivalents 353,801 Net debt 271,199 Total capital 1,982,104 Total net capitalization $ 2,253,303 Net debt to total capitalization(2) 12.0 % (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 tables reconcile the results of operations of our segments to our consolidated results for the three and twelve months ended months ended December 31, 2023 (in thousands): Three Months Ended December 31, 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 $ 100,111 $ — $ 175,556 $ — $ 275,667 $ — $ 275,667 $ (175,556 ) $ 100,111 Land sales—related party — — 6,797 — 6,797 — 6,797 (6,797 ) — Management services—related party(2) — — 17,999 110 18,109 — 18,109 — 18,109 Operating properties 374 165 — 2,153 2,692 — 2,692 (2,153 ) 539 Total revenues 100,485 165 200,352 2,263 303,265 — 303,265 (184,506 ) 118,759 COSTS AND EXPENSES: Land sales 66,684 — 71,399 — 138,083 — 138,083 (71,399 ) 66,684 Home sales — — 161 — 161 — 161 (161 ) — Management services(2) — — 7,751 — 7,751 — 7,751 — 7,751 Operating properties 1,846 — — 856 2,702 — 2,702 (856 ) 1,846 Selling, general, and administrative 2,997 714 3,495 3,156 10,362 9,384 19,746 (6,651 ) 13,095 Management fees—related party — — 28,888 — 28,888 — 28,888 (28,888 ) — Total costs and expenses 71,527 714 111,694 4,012 187,947 9,384 197,331 (107,955 ) 89,376 OTHER (EXPENSE) INCOME: Interest income — 13 2,318 33 2,364 2,675 5,039 (2,351 ) 2,688 Interest expense — — — (702 ) (702 ) — (702 ) 702 — Miscellaneous (21 ) — — — (21 ) (1,788 ) (1,809 ) — (1,809 ) Total other (expense) income (21 ) 13 2,318 (669 ) 1,641 887 2,528 (1,649 ) 879 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 62 — 363 — 425 — 425 23,616 24,041 SEGMENT PROFIT (LOSS)/INCOME BEFORE INCOME TAX BENEFIT 28,999 (536 ) 91,339 (2,418 ) 117,384 (8,497 ) 108,887 (54,584 ) 54,303 INCOME TAX BENEFIT — — — — — 4,434 4,434 — 4,434 SEGMENT PROFIT (LOSS)/NET INCOME $ 28,999 $ (536 ) $ 91,339 $ (2,418 ) $ 117,384 $ (4,063 ) $ 113,321 $ (54,584 ) $ 58,737 (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. Twelve Months Ended December 31, 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 $ 160,796 $ — $ 538,612 $ — $ 699,408 $ — $ 699,408 $ (538,612 ) $ 160,796 Land sales—related party 595 — 16,213 — 16,808 — 16,808 (16,213 ) 595 Management services—related party(2) — — 47,190 431 47,621 — 47,621 — 47,621 Operating properties 2,066 654 — 8,482 11,202 — 11,202 (8,482 ) 2,720 Total revenues 163,457 654 602,015 8,913 775,039 — 775,039 (563,307 ) 211,732 COSTS AND EXPENSES: Land sales 105,651 — 237,148 — 342,799 — 342,799 (237,148 ) 105,651 Home sales — — 161 — 161 — 161 (161 ) — Management services(2) — — 22,170 — 22,170 — 22,170 — 22,170 Operating properties 6,167 — — 3,488 9,655 — 9,655 (3,488 ) 6,167 Selling, general, and administrative 11,577 3,989 10,927 6,406 32,899 35,929 68,828 (17,333 ) 51,495 Management fees—related party — — 65,395 — 65,395 — 65,395 (65,395 ) — Total costs and expenses 123,395 3,989 335,801 9,894 473,079 35,929 509,008 (323,525 ) 185,483 OTHER INCOME (EXPENSE): Interest income — 22 7,490 58 7,570 7,208 14,778 (7,548 ) 7,230 Interest expense — — — (2,531 ) (2,531 ) — (2,531 ) 2,531 — Miscellaneous 1,012 — — — 1,012 (1,788 ) (776 ) — (776 ) Total other income (expense) 1,012 22 7,490 (2,473 ) 6,051 5,420 11,471 (5,017 ) 6,454 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 562 — 1,926 — 2,488 — 2,488 74,107 76,595 SEGMENT PROFIT (LOSS)/INCOME BEFORE INCOME TAX BENEFIT 41,636 (3,313 ) 275,630 (3,454 ) 310,499 (30,509 ) 279,990 (170,692 ) 109,298 INCOME TAX BENEFIT — — — — — 4,418 4,418 — 4,418 SEGMENT PROFIT (LOSS)/NET INCOME $ 41,636 $ (3,313 ) $ 275,630 $ (3,454 ) $ 310,499 $ (26,091 ) $ 284,408 $ (170,692 ) $ 113,716 (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 consolidated statements of operations for the three and twelve months ended December 31, 2023 (in thousands): Three Months Ended December 31, 2023 Twelve Months Ended December 31, 2023 Segment profit from operations $ 91,339 $ 275,630 Less net income of management company attributed to the Great Park segment 10,248 25,020 Net income of the Great Park Venture 81,091 250,610 The Company’s share of net income of the Great Park Venture 30,409 93,979 Basis difference amortization, net (4,534 ) (15,032 ) Equity in earnings from the Great Park Venture $ 25,875 $ 78,947 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 consolidated statements of operations for the three and twelve months ended December 31, 2023 (in thousands): Three Months Ended December 31, 2023 Twelve Months Ended December 31, 2023 Segment loss from operations $ (2,418 ) $ (3,454 ) Less net income of management company attributed to the Commercial segment 110 431 Net loss of the Gateway Commercial Venture (2,528 ) (3,885 ) Equity in loss from the Gateway Commercial Venture $ (1,896 ) $ (2,914 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20240118205366/en/Contacts Investor Relations: Kim Tobler, 949-425-5211 Kim.Tobler@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 Fourth Quarter and Year-End 2023 Results By: Five Point Holdings, LLC via Business Wire January 18, 2024 at 16:10 PM EST Fourth Quarter 2023 and Recent Highlights Valencia sold 583 homesites on approximately 46 acres of land for a purchase price of $101.8 million. Great Park Venture closed two commercial land sales totaling approximately 38 acres for an aggregate purchase price of $174.2 million. Great Park Venture distributions and incentive compensation payments to the Company totaled $92.0 million. Valencia builder sales of 31 homes during the quarter. Great Park builder sales of 76 homes during the quarter. Consolidated revenues of $118.8 million; consolidated net income of $58.7 million. Cash and cash equivalents of $353.8 million as of December 31, 2023. Debt to total capitalization ratio of 24.0% and liquidity of $478.8 million as of December 31, 2023. On January 16, 2024, exchanged $623.5 million of existing 7.875% Senior Notes due November 2025 for $100.0 million in cash and $523.5 million in new 10.5% initial rate Senior Notes due January 2028. 2023 Highlights Valencia closed the sale of 729 homesites on approximately 72 acres of land for an aggregate purchase price of $162.4 million. Great Park Venture recognized land sale revenue of $532.0 million from the sale of 38 acres of commercial land and 798 homesites on approximately 84 acres of land. Great Park Venture distributions and incentive compensation payments to the Company totaled $195.8 million. Valencia builder sales of 297 homes during the year. Great Park builder sales of 628 homes during the year. Consolidated revenues of $211.7 million; consolidated net income of $113.7 million. Extended the maturity date of the Company’s $125.0 million unsecured revolving credit facility to April 2026. 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 fourth quarter and year-end 2023 results. Dan Hedigan, Chief Executive Officer, said, “We finished 2023 strong with consolidated net income for the quarter of $58.7 million, giving us consolidated net income for the year of $113.7 million and total cash and cash equivalents of $353.8 million as of year-end. This week we successfully settled our senior note exchange with a participation rate over 99%. Achieving these results in the face of a challenging economic and interest rate environment is a testament to our team’s focus on executing our key operating priorities: generating revenue, right-sizing our SG&A, and managing our capital spend. We will continue to closely monitor the market and interest rates; however, we believe that the ongoing housing supply shortage will help sustain strong demand for our land.” Consolidated Results Liquidity and Capital Resources As of December 31, 2023, total liquidity of $478.8 million was comprised of cash and cash equivalents totaling $353.8 million and borrowing availability of $125.0 million under our unsecured revolving credit facility. Total capital was $2.0 billion, reflecting $3.0 billion in assets and $1.0 billion in liabilities and redeemable noncontrolling interests. Results of Operations for the Three Months Ended December 31, 2023 Revenues. Revenues of $118.8 million for the three months ended December 31, 2023 were primarily generated from land sales at our Valencia segment. At Valencia we closed the sale of land entitled for an aggregate of 583 homesites on approximately 46 acres. The fixed base purchase price of $101.8 million was paid at closing. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $24.0 million for the three months ended December 31, 2023. The Great Park Venture generated net income of $81.1 million during the three months ended December 31, 2023, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $25.9 million. Additionally, we recognized $1.9 million in loss from our 75% interest in the Gateway Commercial Venture. During the three months ended December 31, 2023, the Great Park Venture closed two commercial land sales totaling approximately 38 acres for an aggregate purchase price of $174.2 million. After completing the land sale, the Great Park Venture made aggregate distributions of $22.6 million to holders of Legacy Interests and $193.1 million to holders of Percentage Interests. We received $72.4 million for our 37.5% Percentage Interest. Selling, general, and administrative. Selling, general, and administrative expenses were $13.1 million for the three months ended December 31, 2023. Net income. Consolidated net income for the quarter was $58.7 million. Net income attributable to noncontrolling interests totaled $29.0 million, resulting in net income attributable to the Company of $29.8 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. Results of Operations for the Twelve Months Ended December 31, 2023 Revenues. Revenues of $211.7 million for the twelve months ended December 31, 2023 were primarily generated from land sales at our Valencia segment. At Valencia we closed the sale of land entitled for an aggregate of 729 homesites on approximately 72 acres. The fixed base purchase price of $162.4 million was paid at closing. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $76.6 million for the twelve months ended December 31, 2023. The Great Park Venture generated net income of $250.6 million during the twelve months ended December 31, 2023, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $78.9 million. Additionally, we recognized $2.9 million in loss from our 75% interest in the Gateway Commercial Venture. During the twelve months ended December 31, 2023, the Great Park Venture closed the sale of approximately 38 acres of land entitled for commercial use for an aggregate purchase price of $174.2 million and sold 798 homesites on approximately 84 acres of land at the Great Park Neighborhoods. For the homesite sale, 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. The Great Park Venture made aggregate distributions of $48.2 million to holders of Legacy Interests and $411.2 million to holders of Percentage Interests. We received $154.2 million for our 37.5% Percentage Interest. Selling, general, and administrative. Selling, general, and administrative expenses were $51.5 million for the twelve months ended December 31, 2023. Net income. Consolidated net income for the year was $113.7 million. Net income attributable to noncontrolling interests totaled $58.3 million, resulting in net income attributable to the Company of $55.4 million. Conference Call Information In conjunction with this release, Five Point will host a conference call on Thursday, January 18, 2024 at 5:00 p.m. Eastern Time. Dan Hedigan, Chief Executive Officer, and Kim Tobler, 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 three 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 13743863. The telephonic replay will be available until 11:59 p.m. Eastern Time on January 27, 2024. 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. Forward-looking statements include, among others, statements that refer to: our expectations of our future home sales and/or builder sales; the impact of inflation and interest rates; our future revenues, costs and financial performance, including with respect to cash generation and profitability; and future demographics and market conditions, including housing supply levels, in the areas where our communities are located. 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 CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 REVENUES: Land sales $ 100,111 $ 270 $ 160,796 $ 913 Land sales—related party — 2,983 595 7,512 Management services—related party 18,109 13,075 47,621 31,433 Operating properties 539 671 2,720 2,836 Total revenues 118,759 16,999 211,732 42,694 COSTS AND EXPENSES: Land sales 66,684 (996 ) 105,651 (996 ) Management services 7,751 7,889 22,170 20,261 Operating properties 1,846 2,433 6,167 8,230 Selling, general, and administrative 13,095 13,119 51,495 54,591 Restructuring — — — 19,437 Total costs and expenses 89,376 22,445 185,483 101,523 OTHER INCOME (EXPENSE): Interest income 2,688 381 7,230 826 Miscellaneous (1,809 ) (91 ) (776 ) 245 Total other income 879 290 6,454 1,071 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 24,041 26,167 76,595 21,513 INCOME (LOSS) BEFORE INCOME TAX BENEFIT 54,303 21,011 109,298 (36,245 ) INCOME TAX BENEFIT 4,434 1,487 4,418 1,471 NET INCOME (LOSS) 58,737 22,498 113,716 (34,774 ) LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 28,981 11,221 58,322 (19,371 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY $ 29,756 $ 11,277 $ 55,394 $ (15,403 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE Basic $ 0.43 $ 0.16 $ 0.80 $ (0.22 ) Diluted $ 0.39 $ 0.15 $ 0.76 $ (0.23 ) WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING Basic 68,919,591 68,534,163 68,826,340 68,429,271 Diluted 145,331,135 144,630,573 145,131,125 68,430,212 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 CONSOLIDATED BALANCE SHEETS (In thousands, except shares) (Unaudited) December 31, 2023 December 31, 2022 ASSETS INVENTORIES $ 2,213,479 $ 2,239,125 INVESTMENT IN UNCONSOLIDATED ENTITIES 252,816 331,594 PROPERTIES AND EQUIPMENT, NET 29,145 30,243 INTANGIBLE ASSET, NET—RELATED PARTY 25,270 40,257 CASH AND CASH EQUIVALENTS 353,801 131,771 RESTRICTED CASH AND CERTIFICATES OF DEPOSIT 992 992 RELATED PARTY ASSETS 83,970 97,126 OTHER ASSETS 9,815 14,676 TOTAL $ 2,969,288 $ 2,885,784 LIABILITIES AND CAPITAL LIABILITIES: Notes payable, net $ 622,186 $ 620,651 Accounts payable and other liabilities 81,649 94,426 Related party liabilities 78,074 93,086 Deferred income tax liability, net 7,067 11,506 Payable pursuant to tax receivable agreement 173,208 173,068 Total liabilities 962,184 992,737 REDEEMABLE NONCONTROLLING INTEREST 25,000 25,000 CAPITAL: Class A common shares; No par value; Issued and outstanding: December 31, 2023—69,199,938 shares; December 31, 2022—69,068,354 shares Class B common shares; No par value; Issued and outstanding: December 31, 2023—79,233,544 shares; December 31, 2022—79,233,544 shares Contributed capital 591,606 587,733 Retained earnings 88,780 33,386 Accumulated other comprehensive loss (2,332 ) (2,988 ) Total members’ capital 678,054 618,131 Noncontrolling interests 1,304,050 1,249,916 Total capital 1,982,104 1,868,047 TOTAL $ 2,969,288 $ 2,885,784 FIVE POINT HOLDINGS, LLC SUPPLEMENTAL DATA (In thousands) (Unaudited) Liquidity December 31, 2023 Cash and cash equivalents $ 353,801 Borrowing capacity(1) 125,000 Total liquidity $ 478,801 (1) As of December 31, 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 December 31, 2023 Debt(1) $ 625,000 Total capital 1,982,104 Total capitalization $ 2,607,104 Debt to total capitalization 24.0 % Debt(1) $ 625,000 Less: Cash and cash equivalents 353,801 Net debt 271,199 Total capital 1,982,104 Total net capitalization $ 2,253,303 Net debt to total capitalization(2) 12.0 % (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 tables reconcile the results of operations of our segments to our consolidated results for the three and twelve months ended months ended December 31, 2023 (in thousands): Three Months Ended December 31, 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 $ 100,111 $ — $ 175,556 $ — $ 275,667 $ — $ 275,667 $ (175,556 ) $ 100,111 Land sales—related party — — 6,797 — 6,797 — 6,797 (6,797 ) — Management services—related party(2) — — 17,999 110 18,109 — 18,109 — 18,109 Operating properties 374 165 — 2,153 2,692 — 2,692 (2,153 ) 539 Total revenues 100,485 165 200,352 2,263 303,265 — 303,265 (184,506 ) 118,759 COSTS AND EXPENSES: Land sales 66,684 — 71,399 — 138,083 — 138,083 (71,399 ) 66,684 Home sales — — 161 — 161 — 161 (161 ) — Management services(2) — — 7,751 — 7,751 — 7,751 — 7,751 Operating properties 1,846 — — 856 2,702 — 2,702 (856 ) 1,846 Selling, general, and administrative 2,997 714 3,495 3,156 10,362 9,384 19,746 (6,651 ) 13,095 Management fees—related party — — 28,888 — 28,888 — 28,888 (28,888 ) — Total costs and expenses 71,527 714 111,694 4,012 187,947 9,384 197,331 (107,955 ) 89,376 OTHER (EXPENSE) INCOME: Interest income — 13 2,318 33 2,364 2,675 5,039 (2,351 ) 2,688 Interest expense — — — (702 ) (702 ) — (702 ) 702 — Miscellaneous (21 ) — — — (21 ) (1,788 ) (1,809 ) — (1,809 ) Total other (expense) income (21 ) 13 2,318 (669 ) 1,641 887 2,528 (1,649 ) 879 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 62 — 363 — 425 — 425 23,616 24,041 SEGMENT PROFIT (LOSS)/INCOME BEFORE INCOME TAX BENEFIT 28,999 (536 ) 91,339 (2,418 ) 117,384 (8,497 ) 108,887 (54,584 ) 54,303 INCOME TAX BENEFIT — — — — — 4,434 4,434 — 4,434 SEGMENT PROFIT (LOSS)/NET INCOME $ 28,999 $ (536 ) $ 91,339 $ (2,418 ) $ 117,384 $ (4,063 ) $ 113,321 $ (54,584 ) $ 58,737 (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. Twelve Months Ended December 31, 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 $ 160,796 $ — $ 538,612 $ — $ 699,408 $ — $ 699,408 $ (538,612 ) $ 160,796 Land sales—related party 595 — 16,213 — 16,808 — 16,808 (16,213 ) 595 Management services—related party(2) — — 47,190 431 47,621 — 47,621 — 47,621 Operating properties 2,066 654 — 8,482 11,202 — 11,202 (8,482 ) 2,720 Total revenues 163,457 654 602,015 8,913 775,039 — 775,039 (563,307 ) 211,732 COSTS AND EXPENSES: Land sales 105,651 — 237,148 — 342,799 — 342,799 (237,148 ) 105,651 Home sales — — 161 — 161 — 161 (161 ) — Management services(2) — — 22,170 — 22,170 — 22,170 — 22,170 Operating properties 6,167 — — 3,488 9,655 — 9,655 (3,488 ) 6,167 Selling, general, and administrative 11,577 3,989 10,927 6,406 32,899 35,929 68,828 (17,333 ) 51,495 Management fees—related party — — 65,395 — 65,395 — 65,395 (65,395 ) — Total costs and expenses 123,395 3,989 335,801 9,894 473,079 35,929 509,008 (323,525 ) 185,483 OTHER INCOME (EXPENSE): Interest income — 22 7,490 58 7,570 7,208 14,778 (7,548 ) 7,230 Interest expense — — — (2,531 ) (2,531 ) — (2,531 ) 2,531 — Miscellaneous 1,012 — — — 1,012 (1,788 ) (776 ) — (776 ) Total other income (expense) 1,012 22 7,490 (2,473 ) 6,051 5,420 11,471 (5,017 ) 6,454 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 562 — 1,926 — 2,488 — 2,488 74,107 76,595 SEGMENT PROFIT (LOSS)/INCOME BEFORE INCOME TAX BENEFIT 41,636 (3,313 ) 275,630 (3,454 ) 310,499 (30,509 ) 279,990 (170,692 ) 109,298 INCOME TAX BENEFIT — — — — — 4,418 4,418 — 4,418 SEGMENT PROFIT (LOSS)/NET INCOME $ 41,636 $ (3,313 ) $ 275,630 $ (3,454 ) $ 310,499 $ (26,091 ) $ 284,408 $ (170,692 ) $ 113,716 (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 consolidated statements of operations for the three and twelve months ended December 31, 2023 (in thousands): Three Months Ended December 31, 2023 Twelve Months Ended December 31, 2023 Segment profit from operations $ 91,339 $ 275,630 Less net income of management company attributed to the Great Park segment 10,248 25,020 Net income of the Great Park Venture 81,091 250,610 The Company’s share of net income of the Great Park Venture 30,409 93,979 Basis difference amortization, net (4,534 ) (15,032 ) Equity in earnings from the Great Park Venture $ 25,875 $ 78,947 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 consolidated statements of operations for the three and twelve months ended December 31, 2023 (in thousands): Three Months Ended December 31, 2023 Twelve Months Ended December 31, 2023 Segment loss from operations $ (2,418 ) $ (3,454 ) Less net income of management company attributed to the Commercial segment 110 431 Net loss of the Gateway Commercial Venture (2,528 ) (3,885 ) Equity in loss from the Gateway Commercial Venture $ (1,896 ) $ (2,914 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20240118205366/en/Contacts Investor Relations: Kim Tobler, 949-425-5211 Kim.Tobler@fivepoint.com or Media: Eric Morgan, 949-349-1088 Eric.Morgan@fivepoint.com
Fourth Quarter 2023 and Recent Highlights Valencia sold 583 homesites on approximately 46 acres of land for a purchase price of $101.8 million. Great Park Venture closed two commercial land sales totaling approximately 38 acres for an aggregate purchase price of $174.2 million. Great Park Venture distributions and incentive compensation payments to the Company totaled $92.0 million. Valencia builder sales of 31 homes during the quarter. Great Park builder sales of 76 homes during the quarter. Consolidated revenues of $118.8 million; consolidated net income of $58.7 million. Cash and cash equivalents of $353.8 million as of December 31, 2023. Debt to total capitalization ratio of 24.0% and liquidity of $478.8 million as of December 31, 2023. On January 16, 2024, exchanged $623.5 million of existing 7.875% Senior Notes due November 2025 for $100.0 million in cash and $523.5 million in new 10.5% initial rate Senior Notes due January 2028. 2023 Highlights Valencia closed the sale of 729 homesites on approximately 72 acres of land for an aggregate purchase price of $162.4 million. Great Park Venture recognized land sale revenue of $532.0 million from the sale of 38 acres of commercial land and 798 homesites on approximately 84 acres of land. Great Park Venture distributions and incentive compensation payments to the Company totaled $195.8 million. Valencia builder sales of 297 homes during the year. Great Park builder sales of 628 homes during the year. Consolidated revenues of $211.7 million; consolidated net income of $113.7 million. Extended the maturity date of the Company’s $125.0 million unsecured revolving credit facility to April 2026.
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 fourth quarter and year-end 2023 results. Dan Hedigan, Chief Executive Officer, said, “We finished 2023 strong with consolidated net income for the quarter of $58.7 million, giving us consolidated net income for the year of $113.7 million and total cash and cash equivalents of $353.8 million as of year-end. This week we successfully settled our senior note exchange with a participation rate over 99%. Achieving these results in the face of a challenging economic and interest rate environment is a testament to our team’s focus on executing our key operating priorities: generating revenue, right-sizing our SG&A, and managing our capital spend. We will continue to closely monitor the market and interest rates; however, we believe that the ongoing housing supply shortage will help sustain strong demand for our land.” Consolidated Results Liquidity and Capital Resources As of December 31, 2023, total liquidity of $478.8 million was comprised of cash and cash equivalents totaling $353.8 million and borrowing availability of $125.0 million under our unsecured revolving credit facility. Total capital was $2.0 billion, reflecting $3.0 billion in assets and $1.0 billion in liabilities and redeemable noncontrolling interests. Results of Operations for the Three Months Ended December 31, 2023 Revenues. Revenues of $118.8 million for the three months ended December 31, 2023 were primarily generated from land sales at our Valencia segment. At Valencia we closed the sale of land entitled for an aggregate of 583 homesites on approximately 46 acres. The fixed base purchase price of $101.8 million was paid at closing. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $24.0 million for the three months ended December 31, 2023. The Great Park Venture generated net income of $81.1 million during the three months ended December 31, 2023, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $25.9 million. Additionally, we recognized $1.9 million in loss from our 75% interest in the Gateway Commercial Venture. During the three months ended December 31, 2023, the Great Park Venture closed two commercial land sales totaling approximately 38 acres for an aggregate purchase price of $174.2 million. After completing the land sale, the Great Park Venture made aggregate distributions of $22.6 million to holders of Legacy Interests and $193.1 million to holders of Percentage Interests. We received $72.4 million for our 37.5% Percentage Interest. Selling, general, and administrative. Selling, general, and administrative expenses were $13.1 million for the three months ended December 31, 2023. Net income. Consolidated net income for the quarter was $58.7 million. Net income attributable to noncontrolling interests totaled $29.0 million, resulting in net income attributable to the Company of $29.8 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. Results of Operations for the Twelve Months Ended December 31, 2023 Revenues. Revenues of $211.7 million for the twelve months ended December 31, 2023 were primarily generated from land sales at our Valencia segment. At Valencia we closed the sale of land entitled for an aggregate of 729 homesites on approximately 72 acres. The fixed base purchase price of $162.4 million was paid at closing. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $76.6 million for the twelve months ended December 31, 2023. The Great Park Venture generated net income of $250.6 million during the twelve months ended December 31, 2023, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $78.9 million. Additionally, we recognized $2.9 million in loss from our 75% interest in the Gateway Commercial Venture. During the twelve months ended December 31, 2023, the Great Park Venture closed the sale of approximately 38 acres of land entitled for commercial use for an aggregate purchase price of $174.2 million and sold 798 homesites on approximately 84 acres of land at the Great Park Neighborhoods. For the homesite sale, 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. The Great Park Venture made aggregate distributions of $48.2 million to holders of Legacy Interests and $411.2 million to holders of Percentage Interests. We received $154.2 million for our 37.5% Percentage Interest. Selling, general, and administrative. Selling, general, and administrative expenses were $51.5 million for the twelve months ended December 31, 2023. Net income. Consolidated net income for the year was $113.7 million. Net income attributable to noncontrolling interests totaled $58.3 million, resulting in net income attributable to the Company of $55.4 million. Conference Call Information In conjunction with this release, Five Point will host a conference call on Thursday, January 18, 2024 at 5:00 p.m. Eastern Time. Dan Hedigan, Chief Executive Officer, and Kim Tobler, 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 three 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 13743863. The telephonic replay will be available until 11:59 p.m. Eastern Time on January 27, 2024. 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. Forward-looking statements include, among others, statements that refer to: our expectations of our future home sales and/or builder sales; the impact of inflation and interest rates; our future revenues, costs and financial performance, including with respect to cash generation and profitability; and future demographics and market conditions, including housing supply levels, in the areas where our communities are located. 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 CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (Unaudited) Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 REVENUES: Land sales $ 100,111 $ 270 $ 160,796 $ 913 Land sales—related party — 2,983 595 7,512 Management services—related party 18,109 13,075 47,621 31,433 Operating properties 539 671 2,720 2,836 Total revenues 118,759 16,999 211,732 42,694 COSTS AND EXPENSES: Land sales 66,684 (996 ) 105,651 (996 ) Management services 7,751 7,889 22,170 20,261 Operating properties 1,846 2,433 6,167 8,230 Selling, general, and administrative 13,095 13,119 51,495 54,591 Restructuring — — — 19,437 Total costs and expenses 89,376 22,445 185,483 101,523 OTHER INCOME (EXPENSE): Interest income 2,688 381 7,230 826 Miscellaneous (1,809 ) (91 ) (776 ) 245 Total other income 879 290 6,454 1,071 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 24,041 26,167 76,595 21,513 INCOME (LOSS) BEFORE INCOME TAX BENEFIT 54,303 21,011 109,298 (36,245 ) INCOME TAX BENEFIT 4,434 1,487 4,418 1,471 NET INCOME (LOSS) 58,737 22,498 113,716 (34,774 ) LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 28,981 11,221 58,322 (19,371 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY $ 29,756 $ 11,277 $ 55,394 $ (15,403 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE Basic $ 0.43 $ 0.16 $ 0.80 $ (0.22 ) Diluted $ 0.39 $ 0.15 $ 0.76 $ (0.23 ) WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING Basic 68,919,591 68,534,163 68,826,340 68,429,271 Diluted 145,331,135 144,630,573 145,131,125 68,430,212 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 CONSOLIDATED BALANCE SHEETS (In thousands, except shares) (Unaudited) December 31, 2023 December 31, 2022 ASSETS INVENTORIES $ 2,213,479 $ 2,239,125 INVESTMENT IN UNCONSOLIDATED ENTITIES 252,816 331,594 PROPERTIES AND EQUIPMENT, NET 29,145 30,243 INTANGIBLE ASSET, NET—RELATED PARTY 25,270 40,257 CASH AND CASH EQUIVALENTS 353,801 131,771 RESTRICTED CASH AND CERTIFICATES OF DEPOSIT 992 992 RELATED PARTY ASSETS 83,970 97,126 OTHER ASSETS 9,815 14,676 TOTAL $ 2,969,288 $ 2,885,784 LIABILITIES AND CAPITAL LIABILITIES: Notes payable, net $ 622,186 $ 620,651 Accounts payable and other liabilities 81,649 94,426 Related party liabilities 78,074 93,086 Deferred income tax liability, net 7,067 11,506 Payable pursuant to tax receivable agreement 173,208 173,068 Total liabilities 962,184 992,737 REDEEMABLE NONCONTROLLING INTEREST 25,000 25,000 CAPITAL: Class A common shares; No par value; Issued and outstanding: December 31, 2023—69,199,938 shares; December 31, 2022—69,068,354 shares Class B common shares; No par value; Issued and outstanding: December 31, 2023—79,233,544 shares; December 31, 2022—79,233,544 shares Contributed capital 591,606 587,733 Retained earnings 88,780 33,386 Accumulated other comprehensive loss (2,332 ) (2,988 ) Total members’ capital 678,054 618,131 Noncontrolling interests 1,304,050 1,249,916 Total capital 1,982,104 1,868,047 TOTAL $ 2,969,288 $ 2,885,784 FIVE POINT HOLDINGS, LLC SUPPLEMENTAL DATA (In thousands) (Unaudited) Liquidity December 31, 2023 Cash and cash equivalents $ 353,801 Borrowing capacity(1) 125,000 Total liquidity $ 478,801 (1) As of December 31, 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 December 31, 2023 Debt(1) $ 625,000 Total capital 1,982,104 Total capitalization $ 2,607,104 Debt to total capitalization 24.0 % Debt(1) $ 625,000 Less: Cash and cash equivalents 353,801 Net debt 271,199 Total capital 1,982,104 Total net capitalization $ 2,253,303 Net debt to total capitalization(2) 12.0 % (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 tables reconcile the results of operations of our segments to our consolidated results for the three and twelve months ended months ended December 31, 2023 (in thousands): Three Months Ended December 31, 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 $ 100,111 $ — $ 175,556 $ — $ 275,667 $ — $ 275,667 $ (175,556 ) $ 100,111 Land sales—related party — — 6,797 — 6,797 — 6,797 (6,797 ) — Management services—related party(2) — — 17,999 110 18,109 — 18,109 — 18,109 Operating properties 374 165 — 2,153 2,692 — 2,692 (2,153 ) 539 Total revenues 100,485 165 200,352 2,263 303,265 — 303,265 (184,506 ) 118,759 COSTS AND EXPENSES: Land sales 66,684 — 71,399 — 138,083 — 138,083 (71,399 ) 66,684 Home sales — — 161 — 161 — 161 (161 ) — Management services(2) — — 7,751 — 7,751 — 7,751 — 7,751 Operating properties 1,846 — — 856 2,702 — 2,702 (856 ) 1,846 Selling, general, and administrative 2,997 714 3,495 3,156 10,362 9,384 19,746 (6,651 ) 13,095 Management fees—related party — — 28,888 — 28,888 — 28,888 (28,888 ) — Total costs and expenses 71,527 714 111,694 4,012 187,947 9,384 197,331 (107,955 ) 89,376 OTHER (EXPENSE) INCOME: Interest income — 13 2,318 33 2,364 2,675 5,039 (2,351 ) 2,688 Interest expense — — — (702 ) (702 ) — (702 ) 702 — Miscellaneous (21 ) — — — (21 ) (1,788 ) (1,809 ) — (1,809 ) Total other (expense) income (21 ) 13 2,318 (669 ) 1,641 887 2,528 (1,649 ) 879 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 62 — 363 — 425 — 425 23,616 24,041 SEGMENT PROFIT (LOSS)/INCOME BEFORE INCOME TAX BENEFIT 28,999 (536 ) 91,339 (2,418 ) 117,384 (8,497 ) 108,887 (54,584 ) 54,303 INCOME TAX BENEFIT — — — — — 4,434 4,434 — 4,434 SEGMENT PROFIT (LOSS)/NET INCOME $ 28,999 $ (536 ) $ 91,339 $ (2,418 ) $ 117,384 $ (4,063 ) $ 113,321 $ (54,584 ) $ 58,737 (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. Twelve Months Ended December 31, 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 $ 160,796 $ — $ 538,612 $ — $ 699,408 $ — $ 699,408 $ (538,612 ) $ 160,796 Land sales—related party 595 — 16,213 — 16,808 — 16,808 (16,213 ) 595 Management services—related party(2) — — 47,190 431 47,621 — 47,621 — 47,621 Operating properties 2,066 654 — 8,482 11,202 — 11,202 (8,482 ) 2,720 Total revenues 163,457 654 602,015 8,913 775,039 — 775,039 (563,307 ) 211,732 COSTS AND EXPENSES: Land sales 105,651 — 237,148 — 342,799 — 342,799 (237,148 ) 105,651 Home sales — — 161 — 161 — 161 (161 ) — Management services(2) — — 22,170 — 22,170 — 22,170 — 22,170 Operating properties 6,167 — — 3,488 9,655 — 9,655 (3,488 ) 6,167 Selling, general, and administrative 11,577 3,989 10,927 6,406 32,899 35,929 68,828 (17,333 ) 51,495 Management fees—related party — — 65,395 — 65,395 — 65,395 (65,395 ) — Total costs and expenses 123,395 3,989 335,801 9,894 473,079 35,929 509,008 (323,525 ) 185,483 OTHER INCOME (EXPENSE): Interest income — 22 7,490 58 7,570 7,208 14,778 (7,548 ) 7,230 Interest expense — — — (2,531 ) (2,531 ) — (2,531 ) 2,531 — Miscellaneous 1,012 — — — 1,012 (1,788 ) (776 ) — (776 ) Total other income (expense) 1,012 22 7,490 (2,473 ) 6,051 5,420 11,471 (5,017 ) 6,454 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 562 — 1,926 — 2,488 — 2,488 74,107 76,595 SEGMENT PROFIT (LOSS)/INCOME BEFORE INCOME TAX BENEFIT 41,636 (3,313 ) 275,630 (3,454 ) 310,499 (30,509 ) 279,990 (170,692 ) 109,298 INCOME TAX BENEFIT — — — — — 4,418 4,418 — 4,418 SEGMENT PROFIT (LOSS)/NET INCOME $ 41,636 $ (3,313 ) $ 275,630 $ (3,454 ) $ 310,499 $ (26,091 ) $ 284,408 $ (170,692 ) $ 113,716 (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 consolidated statements of operations for the three and twelve months ended December 31, 2023 (in thousands): Three Months Ended December 31, 2023 Twelve Months Ended December 31, 2023 Segment profit from operations $ 91,339 $ 275,630 Less net income of management company attributed to the Great Park segment 10,248 25,020 Net income of the Great Park Venture 81,091 250,610 The Company’s share of net income of the Great Park Venture 30,409 93,979 Basis difference amortization, net (4,534 ) (15,032 ) Equity in earnings from the Great Park Venture $ 25,875 $ 78,947 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 consolidated statements of operations for the three and twelve months ended December 31, 2023 (in thousands): Three Months Ended December 31, 2023 Twelve Months Ended December 31, 2023 Segment loss from operations $ (2,418 ) $ (3,454 ) Less net income of management company attributed to the Commercial segment 110 431 Net loss of the Gateway Commercial Venture (2,528 ) (3,885 ) Equity in loss from the Gateway Commercial Venture $ (1,896 ) $ (2,914 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20240118205366/en/
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