Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Five Point Holdings, LLC Reports First Quarter 2024 Results By: Five Point Holdings, LLC via Business Wire April 18, 2024 at 16:10 PM EDT First Quarter 2024 and Recent Highlights Great Park Venture sold 82 homesites on 11.6 acres of land for an aggregate purchase price of $74.6 million. Great Park Venture distributions and incentive compensation payments to the Company totaled $30.3 million. Valencia builder sales of 62 homes during the quarter. Great Park builder sales of 69 homes during the quarter. Consolidated revenues of $9.9 million; consolidated net income of $6.1 million. 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 10.500% initial rate Senior Notes due January 2028. In April 2024, S&P Global Ratings upgraded our outlook to stable, upgraded our corporate rating to B- and upgraded our senior notes rating to B. Cash and cash equivalents of $232.7 million as of March 31, 2024. Debt to total capitalization ratio of 20.9% and liquidity of $357.7 million as of March 31, 2024. 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 first quarter 2024 results. Dan Hedigan, Chief Executive Officer, said, “In the first quarter of 2024, we continued to position ourselves for future success. We generated earnings for the fourth consecutive quarter and ended the quarter with total liquidity of $358 million. We also successfully completed an exchange offer for our senior notes, reduced our outstanding debt by $100 million, and received ratings and outlook upgrades from S&P. Although uncertainty remains around interest rates and inflation, we believe that demand for our residential land will continue to exceed supply, and we remain optimistic about the market for our commercial offerings. As we move forward, we continue to be focused on driving shareholder value by executing on our key operating priorities: generating revenue, controlling our SG&A, and managing our capital spend.” Consolidated Results Liquidity and Capital Resources As of March 31, 2024, total liquidity of $357.7 million was comprised of cash and cash equivalents totaling $232.7 million and borrowing availability of $125.0 million under our unsecured revolving credit facility. Total capital was $2.0 billion, reflecting $2.9 billion in assets and $0.9 billion in liabilities and redeemable noncontrolling interests. Results of Operations for the Three Months Ended March 31, 2024 Revenues. Revenues of $9.9 million for the three months ended March 31, 2024 were primarily generated from management services. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $17.6 million for the three months ended March 31, 2024. The Great Park Venture generated net income of $53.1 million during the three months ended March 31, 2024, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $17.7 million. Additionally, we recognized $0.1 million in loss from our 75% interest in the Gateway Commercial Venture. During the three months ended March 31, 2024, the Great Park Venture sold 82 homesites on 11.6 acres of land at the Great Park Neighborhoods for an aggregate purchase price of $74.6 million. After completing the land sale, the Great Park Venture made aggregate distributions of $7.5 million to holders of Legacy Interests and $63.7 million to holders of Percentage Interests. We received $23.9 million for our 37.5% Percentage Interest. Selling, general, and administrative. Selling, general, and administrative expenses were $12.9 million for the three months ended March 31, 2024. Net income. Consolidated net income for the quarter was $6.1 million. Net income attributable to noncontrolling interests totaled $3.8 million, resulting in net income attributable to the Company of $2.3 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, April 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 13746067. The telephonic replay will be available until 11:59 p.m. Eastern Time on April 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 up to approximately 40,000 residential homes and up to 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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2024 2023 REVENUES: Land sales $ 535 $ (25 ) Land sales—related party (3 ) 624 Management services—related party 8,726 4,236 Operating properties 677 866 Total revenues 9,935 5,701 COSTS AND EXPENSES: Land sales — — Management services 3,896 2,366 Operating properties 990 1,172 Selling, general, and administrative 12,916 13,752 Total costs and expenses 17,802 17,290 OTHER INCOME (EXPENSE): Interest income 3,225 836 Miscellaneous (5,907 ) (21 ) Total other (expense) income (2,682 ) 815 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 17,586 1,048 INCOME (LOSS) BEFORE INCOME TAX PROVISION 7,037 (9,726 ) INCOME TAX PROVISION (954 ) (8 ) NET INCOME (LOSS) 6,083 (9,734 ) LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 3,757 (5,198 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY $ 2,326 $ (4,536 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE Basic $ 0.03 $ (0.07 ) Diluted $ 0.03 $ (0.07 ) WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING Basic 69,058,585 68,705,223 Diluted 145,876,835 68,706,164 NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS B SHARE Basic and diluted $ 0.00 $ (0.00 ) WEIGHTED AVERAGE CLASS B SHARES OUTSTANDING Basic and diluted 79,233,544 79,233,544 FIVE POINT HOLDINGS, LLC CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except shares) (Unaudited) March 31, 2024 December 31, 2023 ASSETS INVENTORIES $ 2,250,070 $ 2,213,479 INVESTMENT IN UNCONSOLIDATED ENTITIES 246,406 252,816 PROPERTIES AND EQUIPMENT, NET 29,104 29,145 INTANGIBLE ASSET, NET—RELATED PARTY 23,190 25,270 CASH AND CASH EQUIVALENTS 232,684 353,801 RESTRICTED CASH AND CERTIFICATES OF DEPOSIT 992 992 RELATED PARTY ASSETS 81,759 83,970 OTHER ASSETS 7,528 9,815 TOTAL $ 2,871,733 $ 2,969,288 LIABILITIES AND CAPITAL LIABILITIES: Notes payable, net $ 523,321 $ 622,186 Accounts payable and other liabilities 77,853 81,649 Related party liabilities 76,128 78,074 Deferred income tax liability, net 7,975 7,067 Payable pursuant to tax receivable agreement 173,351 173,208 Total liabilities 858,628 962,184 REDEEMABLE NONCONTROLLING INTEREST 25,000 25,000 CAPITAL: Class A common shares; No par value; Issued and outstanding: March 31, 2024—69,358,504 shares; December 31, 2023—69,199,938 shares Class B common shares; No par value; Issued and outstanding: March 31, 2024—79,233,544 shares; December 31, 2023—79,233,544 shares Contributed capital 592,227 591,606 Retained earnings 91,106 88,780 Accumulated other comprehensive loss (2,327 ) (2,332 ) Total members’ capital 681,006 678,054 Noncontrolling interests 1,307,099 1,304,050 Total capital 1,988,105 1,982,104 TOTAL $ 2,871,733 $ 2,969,288 FIVE POINT HOLDINGS, LLC SUPPLEMENTAL DATA (In thousands) (Unaudited) Liquidity March 31, 2024 Cash and cash equivalents $ 232,684 Borrowing capacity(1) 125,000 Total liquidity $ 357,684 (1) As of March 31, 2024, 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 March 31, 2024 Debt(1) $ 524,994 Total capital 1,988,105 Total capitalization $ 2,513,099 Debt to total capitalization 20.9 % Debt(1) $ 524,994 Less: Cash and cash equivalents 232,684 Net debt 292,310 Total capital 1,988,105 Total net capitalization $ 2,280,415 Net debt to total capitalization(2) 12.8 % (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 months ended March 31, 2024 (in thousands): 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 $ 535 $ — $ 80,818 $ — $ 81,353 $ — $ 81,353 $ (80,818 ) $ 535 Land sales—related party (3 ) — 11,891 — 11,888 — 11,888 (11,891 ) (3 ) Management services—related party(2) — — 8,613 113 8,726 — 8,726 — 8,726 Operating properties 509 168 — 2,549 3,226 — 3,226 (2,549 ) 677 Total revenues 1,041 168 101,322 2,662 105,193 — 105,193 (95,258 ) 9,935 COSTS AND EXPENSES: Land sales — — 29,958 — 29,958 — 29,958 (29,958 ) — Management services(2) — — 3,896 — 3,896 — 3,896 — 3,896 Operating properties 990 — — 976 1,966 — 1,966 (976 ) 990 Selling, general, and administrative 3,194 1,135 2,939 1,029 8,297 8,587 16,884 (3,968 ) 12,916 Management fees—related party — — 8,162 — 8,162 — 8,162 (8,162 ) — Total costs and expenses 4,184 1,135 44,955 2,005 52,279 8,587 60,866 (43,064 ) 17,802 OTHER INCOME (EXPENSE): Interest income — 15 1,479 34 1,528 3,210 4,738 (1,513 ) 3,225 Interest expense — — — (694 ) (694 ) — (694 ) 694 — Miscellaneous 24 — — — 24 (5,931 ) (5,907 ) — (5,907 ) Total other income (expense) 24 15 1,479 (660 ) 858 (2,721 ) (1,863 ) (819 ) (2,682 ) EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 16 — — — 16 — 16 17,570 17,586 SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION (3,103 ) (952 ) 57,846 (3 ) 53,788 (11,308 ) 42,480 (35,443 ) 7,037 INCOME TAX PROVISION — — — — — (954 ) (954 ) — (954 ) SEGMENT (LOSS) PROFIT/NET INCOME $ (3,103 ) $ (952 ) $ 57,846 $ (3 ) $ 53,788 $ (12,262 ) $ 41,526 $ (35,443 ) $ 6,083 (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. 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 months ended March 31, 2024 (in thousands): Segment profit from operations $ 57,846 Less net income of management company attributed to the Great Park segment 4,717 Net income of the Great Park Venture 53,129 The Company’s share of net income of the Great Park Venture 19,923 Basis difference amortization, net (2,266 ) Equity in earnings from the Great Park Venture $ 17,657 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 months ended March 31, 2024 (in thousands): Segment loss from operations $ (3 ) Less net income of management company attributed to the Commercial segment 113 Net loss of the Gateway Commercial Venture (116 ) Equity in loss from the Gateway Commercial Venture $ (87 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20240418282527/en/Contacts Investor Relations: Kim Tobler, 949-425-5211 Kim.Tobler@fivepoint.com or Media: Eric Morgan, 949-349-1088 Eric.Morgan@fivepoint.com Stock Quote API & Stock News API supplied by www.cloudquote.io Quotes delayed at least 20 minutes. 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Five Point Holdings, LLC Reports First Quarter 2024 Results By: Five Point Holdings, LLC via Business Wire April 18, 2024 at 16:10 PM EDT First Quarter 2024 and Recent Highlights Great Park Venture sold 82 homesites on 11.6 acres of land for an aggregate purchase price of $74.6 million. Great Park Venture distributions and incentive compensation payments to the Company totaled $30.3 million. Valencia builder sales of 62 homes during the quarter. Great Park builder sales of 69 homes during the quarter. Consolidated revenues of $9.9 million; consolidated net income of $6.1 million. 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 10.500% initial rate Senior Notes due January 2028. In April 2024, S&P Global Ratings upgraded our outlook to stable, upgraded our corporate rating to B- and upgraded our senior notes rating to B. Cash and cash equivalents of $232.7 million as of March 31, 2024. Debt to total capitalization ratio of 20.9% and liquidity of $357.7 million as of March 31, 2024. 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 first quarter 2024 results. Dan Hedigan, Chief Executive Officer, said, “In the first quarter of 2024, we continued to position ourselves for future success. We generated earnings for the fourth consecutive quarter and ended the quarter with total liquidity of $358 million. We also successfully completed an exchange offer for our senior notes, reduced our outstanding debt by $100 million, and received ratings and outlook upgrades from S&P. Although uncertainty remains around interest rates and inflation, we believe that demand for our residential land will continue to exceed supply, and we remain optimistic about the market for our commercial offerings. As we move forward, we continue to be focused on driving shareholder value by executing on our key operating priorities: generating revenue, controlling our SG&A, and managing our capital spend.” Consolidated Results Liquidity and Capital Resources As of March 31, 2024, total liquidity of $357.7 million was comprised of cash and cash equivalents totaling $232.7 million and borrowing availability of $125.0 million under our unsecured revolving credit facility. Total capital was $2.0 billion, reflecting $2.9 billion in assets and $0.9 billion in liabilities and redeemable noncontrolling interests. Results of Operations for the Three Months Ended March 31, 2024 Revenues. Revenues of $9.9 million for the three months ended March 31, 2024 were primarily generated from management services. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $17.6 million for the three months ended March 31, 2024. The Great Park Venture generated net income of $53.1 million during the three months ended March 31, 2024, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $17.7 million. Additionally, we recognized $0.1 million in loss from our 75% interest in the Gateway Commercial Venture. During the three months ended March 31, 2024, the Great Park Venture sold 82 homesites on 11.6 acres of land at the Great Park Neighborhoods for an aggregate purchase price of $74.6 million. After completing the land sale, the Great Park Venture made aggregate distributions of $7.5 million to holders of Legacy Interests and $63.7 million to holders of Percentage Interests. We received $23.9 million for our 37.5% Percentage Interest. Selling, general, and administrative. Selling, general, and administrative expenses were $12.9 million for the three months ended March 31, 2024. Net income. Consolidated net income for the quarter was $6.1 million. Net income attributable to noncontrolling interests totaled $3.8 million, resulting in net income attributable to the Company of $2.3 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, April 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 13746067. The telephonic replay will be available until 11:59 p.m. Eastern Time on April 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 up to approximately 40,000 residential homes and up to 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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2024 2023 REVENUES: Land sales $ 535 $ (25 ) Land sales—related party (3 ) 624 Management services—related party 8,726 4,236 Operating properties 677 866 Total revenues 9,935 5,701 COSTS AND EXPENSES: Land sales — — Management services 3,896 2,366 Operating properties 990 1,172 Selling, general, and administrative 12,916 13,752 Total costs and expenses 17,802 17,290 OTHER INCOME (EXPENSE): Interest income 3,225 836 Miscellaneous (5,907 ) (21 ) Total other (expense) income (2,682 ) 815 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 17,586 1,048 INCOME (LOSS) BEFORE INCOME TAX PROVISION 7,037 (9,726 ) INCOME TAX PROVISION (954 ) (8 ) NET INCOME (LOSS) 6,083 (9,734 ) LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 3,757 (5,198 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY $ 2,326 $ (4,536 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE Basic $ 0.03 $ (0.07 ) Diluted $ 0.03 $ (0.07 ) WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING Basic 69,058,585 68,705,223 Diluted 145,876,835 68,706,164 NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS B SHARE Basic and diluted $ 0.00 $ (0.00 ) WEIGHTED AVERAGE CLASS B SHARES OUTSTANDING Basic and diluted 79,233,544 79,233,544 FIVE POINT HOLDINGS, LLC CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except shares) (Unaudited) March 31, 2024 December 31, 2023 ASSETS INVENTORIES $ 2,250,070 $ 2,213,479 INVESTMENT IN UNCONSOLIDATED ENTITIES 246,406 252,816 PROPERTIES AND EQUIPMENT, NET 29,104 29,145 INTANGIBLE ASSET, NET—RELATED PARTY 23,190 25,270 CASH AND CASH EQUIVALENTS 232,684 353,801 RESTRICTED CASH AND CERTIFICATES OF DEPOSIT 992 992 RELATED PARTY ASSETS 81,759 83,970 OTHER ASSETS 7,528 9,815 TOTAL $ 2,871,733 $ 2,969,288 LIABILITIES AND CAPITAL LIABILITIES: Notes payable, net $ 523,321 $ 622,186 Accounts payable and other liabilities 77,853 81,649 Related party liabilities 76,128 78,074 Deferred income tax liability, net 7,975 7,067 Payable pursuant to tax receivable agreement 173,351 173,208 Total liabilities 858,628 962,184 REDEEMABLE NONCONTROLLING INTEREST 25,000 25,000 CAPITAL: Class A common shares; No par value; Issued and outstanding: March 31, 2024—69,358,504 shares; December 31, 2023—69,199,938 shares Class B common shares; No par value; Issued and outstanding: March 31, 2024—79,233,544 shares; December 31, 2023—79,233,544 shares Contributed capital 592,227 591,606 Retained earnings 91,106 88,780 Accumulated other comprehensive loss (2,327 ) (2,332 ) Total members’ capital 681,006 678,054 Noncontrolling interests 1,307,099 1,304,050 Total capital 1,988,105 1,982,104 TOTAL $ 2,871,733 $ 2,969,288 FIVE POINT HOLDINGS, LLC SUPPLEMENTAL DATA (In thousands) (Unaudited) Liquidity March 31, 2024 Cash and cash equivalents $ 232,684 Borrowing capacity(1) 125,000 Total liquidity $ 357,684 (1) As of March 31, 2024, 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 March 31, 2024 Debt(1) $ 524,994 Total capital 1,988,105 Total capitalization $ 2,513,099 Debt to total capitalization 20.9 % Debt(1) $ 524,994 Less: Cash and cash equivalents 232,684 Net debt 292,310 Total capital 1,988,105 Total net capitalization $ 2,280,415 Net debt to total capitalization(2) 12.8 % (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 months ended March 31, 2024 (in thousands): 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 $ 535 $ — $ 80,818 $ — $ 81,353 $ — $ 81,353 $ (80,818 ) $ 535 Land sales—related party (3 ) — 11,891 — 11,888 — 11,888 (11,891 ) (3 ) Management services—related party(2) — — 8,613 113 8,726 — 8,726 — 8,726 Operating properties 509 168 — 2,549 3,226 — 3,226 (2,549 ) 677 Total revenues 1,041 168 101,322 2,662 105,193 — 105,193 (95,258 ) 9,935 COSTS AND EXPENSES: Land sales — — 29,958 — 29,958 — 29,958 (29,958 ) — Management services(2) — — 3,896 — 3,896 — 3,896 — 3,896 Operating properties 990 — — 976 1,966 — 1,966 (976 ) 990 Selling, general, and administrative 3,194 1,135 2,939 1,029 8,297 8,587 16,884 (3,968 ) 12,916 Management fees—related party — — 8,162 — 8,162 — 8,162 (8,162 ) — Total costs and expenses 4,184 1,135 44,955 2,005 52,279 8,587 60,866 (43,064 ) 17,802 OTHER INCOME (EXPENSE): Interest income — 15 1,479 34 1,528 3,210 4,738 (1,513 ) 3,225 Interest expense — — — (694 ) (694 ) — (694 ) 694 — Miscellaneous 24 — — — 24 (5,931 ) (5,907 ) — (5,907 ) Total other income (expense) 24 15 1,479 (660 ) 858 (2,721 ) (1,863 ) (819 ) (2,682 ) EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 16 — — — 16 — 16 17,570 17,586 SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION (3,103 ) (952 ) 57,846 (3 ) 53,788 (11,308 ) 42,480 (35,443 ) 7,037 INCOME TAX PROVISION — — — — — (954 ) (954 ) — (954 ) SEGMENT (LOSS) PROFIT/NET INCOME $ (3,103 ) $ (952 ) $ 57,846 $ (3 ) $ 53,788 $ (12,262 ) $ 41,526 $ (35,443 ) $ 6,083 (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. 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 months ended March 31, 2024 (in thousands): Segment profit from operations $ 57,846 Less net income of management company attributed to the Great Park segment 4,717 Net income of the Great Park Venture 53,129 The Company’s share of net income of the Great Park Venture 19,923 Basis difference amortization, net (2,266 ) Equity in earnings from the Great Park Venture $ 17,657 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 months ended March 31, 2024 (in thousands): Segment loss from operations $ (3 ) Less net income of management company attributed to the Commercial segment 113 Net loss of the Gateway Commercial Venture (116 ) Equity in loss from the Gateway Commercial Venture $ (87 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20240418282527/en/Contacts Investor Relations: Kim Tobler, 949-425-5211 Kim.Tobler@fivepoint.com or Media: Eric Morgan, 949-349-1088 Eric.Morgan@fivepoint.com
First Quarter 2024 and Recent Highlights Great Park Venture sold 82 homesites on 11.6 acres of land for an aggregate purchase price of $74.6 million. Great Park Venture distributions and incentive compensation payments to the Company totaled $30.3 million. Valencia builder sales of 62 homes during the quarter. Great Park builder sales of 69 homes during the quarter. Consolidated revenues of $9.9 million; consolidated net income of $6.1 million. 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 10.500% initial rate Senior Notes due January 2028. In April 2024, S&P Global Ratings upgraded our outlook to stable, upgraded our corporate rating to B- and upgraded our senior notes rating to B. Cash and cash equivalents of $232.7 million as of March 31, 2024. Debt to total capitalization ratio of 20.9% and liquidity of $357.7 million as of March 31, 2024.
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 first quarter 2024 results. Dan Hedigan, Chief Executive Officer, said, “In the first quarter of 2024, we continued to position ourselves for future success. We generated earnings for the fourth consecutive quarter and ended the quarter with total liquidity of $358 million. We also successfully completed an exchange offer for our senior notes, reduced our outstanding debt by $100 million, and received ratings and outlook upgrades from S&P. Although uncertainty remains around interest rates and inflation, we believe that demand for our residential land will continue to exceed supply, and we remain optimistic about the market for our commercial offerings. As we move forward, we continue to be focused on driving shareholder value by executing on our key operating priorities: generating revenue, controlling our SG&A, and managing our capital spend.” Consolidated Results Liquidity and Capital Resources As of March 31, 2024, total liquidity of $357.7 million was comprised of cash and cash equivalents totaling $232.7 million and borrowing availability of $125.0 million under our unsecured revolving credit facility. Total capital was $2.0 billion, reflecting $2.9 billion in assets and $0.9 billion in liabilities and redeemable noncontrolling interests. Results of Operations for the Three Months Ended March 31, 2024 Revenues. Revenues of $9.9 million for the three months ended March 31, 2024 were primarily generated from management services. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $17.6 million for the three months ended March 31, 2024. The Great Park Venture generated net income of $53.1 million during the three months ended March 31, 2024, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $17.7 million. Additionally, we recognized $0.1 million in loss from our 75% interest in the Gateway Commercial Venture. During the three months ended March 31, 2024, the Great Park Venture sold 82 homesites on 11.6 acres of land at the Great Park Neighborhoods for an aggregate purchase price of $74.6 million. After completing the land sale, the Great Park Venture made aggregate distributions of $7.5 million to holders of Legacy Interests and $63.7 million to holders of Percentage Interests. We received $23.9 million for our 37.5% Percentage Interest. Selling, general, and administrative. Selling, general, and administrative expenses were $12.9 million for the three months ended March 31, 2024. Net income. Consolidated net income for the quarter was $6.1 million. Net income attributable to noncontrolling interests totaled $3.8 million, resulting in net income attributable to the Company of $2.3 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, April 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 13746067. The telephonic replay will be available until 11:59 p.m. Eastern Time on April 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 up to approximately 40,000 residential homes and up to 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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (Unaudited) Three Months Ended March 31, 2024 2023 REVENUES: Land sales $ 535 $ (25 ) Land sales—related party (3 ) 624 Management services—related party 8,726 4,236 Operating properties 677 866 Total revenues 9,935 5,701 COSTS AND EXPENSES: Land sales — — Management services 3,896 2,366 Operating properties 990 1,172 Selling, general, and administrative 12,916 13,752 Total costs and expenses 17,802 17,290 OTHER INCOME (EXPENSE): Interest income 3,225 836 Miscellaneous (5,907 ) (21 ) Total other (expense) income (2,682 ) 815 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 17,586 1,048 INCOME (LOSS) BEFORE INCOME TAX PROVISION 7,037 (9,726 ) INCOME TAX PROVISION (954 ) (8 ) NET INCOME (LOSS) 6,083 (9,734 ) LESS NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 3,757 (5,198 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY $ 2,326 $ (4,536 ) NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE Basic $ 0.03 $ (0.07 ) Diluted $ 0.03 $ (0.07 ) WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING Basic 69,058,585 68,705,223 Diluted 145,876,835 68,706,164 NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY PER CLASS B SHARE Basic and diluted $ 0.00 $ (0.00 ) WEIGHTED AVERAGE CLASS B SHARES OUTSTANDING Basic and diluted 79,233,544 79,233,544 FIVE POINT HOLDINGS, LLC CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except shares) (Unaudited) March 31, 2024 December 31, 2023 ASSETS INVENTORIES $ 2,250,070 $ 2,213,479 INVESTMENT IN UNCONSOLIDATED ENTITIES 246,406 252,816 PROPERTIES AND EQUIPMENT, NET 29,104 29,145 INTANGIBLE ASSET, NET—RELATED PARTY 23,190 25,270 CASH AND CASH EQUIVALENTS 232,684 353,801 RESTRICTED CASH AND CERTIFICATES OF DEPOSIT 992 992 RELATED PARTY ASSETS 81,759 83,970 OTHER ASSETS 7,528 9,815 TOTAL $ 2,871,733 $ 2,969,288 LIABILITIES AND CAPITAL LIABILITIES: Notes payable, net $ 523,321 $ 622,186 Accounts payable and other liabilities 77,853 81,649 Related party liabilities 76,128 78,074 Deferred income tax liability, net 7,975 7,067 Payable pursuant to tax receivable agreement 173,351 173,208 Total liabilities 858,628 962,184 REDEEMABLE NONCONTROLLING INTEREST 25,000 25,000 CAPITAL: Class A common shares; No par value; Issued and outstanding: March 31, 2024—69,358,504 shares; December 31, 2023—69,199,938 shares Class B common shares; No par value; Issued and outstanding: March 31, 2024—79,233,544 shares; December 31, 2023—79,233,544 shares Contributed capital 592,227 591,606 Retained earnings 91,106 88,780 Accumulated other comprehensive loss (2,327 ) (2,332 ) Total members’ capital 681,006 678,054 Noncontrolling interests 1,307,099 1,304,050 Total capital 1,988,105 1,982,104 TOTAL $ 2,871,733 $ 2,969,288 FIVE POINT HOLDINGS, LLC SUPPLEMENTAL DATA (In thousands) (Unaudited) Liquidity March 31, 2024 Cash and cash equivalents $ 232,684 Borrowing capacity(1) 125,000 Total liquidity $ 357,684 (1) As of March 31, 2024, 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 March 31, 2024 Debt(1) $ 524,994 Total capital 1,988,105 Total capitalization $ 2,513,099 Debt to total capitalization 20.9 % Debt(1) $ 524,994 Less: Cash and cash equivalents 232,684 Net debt 292,310 Total capital 1,988,105 Total net capitalization $ 2,280,415 Net debt to total capitalization(2) 12.8 % (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 months ended March 31, 2024 (in thousands): 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 $ 535 $ — $ 80,818 $ — $ 81,353 $ — $ 81,353 $ (80,818 ) $ 535 Land sales—related party (3 ) — 11,891 — 11,888 — 11,888 (11,891 ) (3 ) Management services—related party(2) — — 8,613 113 8,726 — 8,726 — 8,726 Operating properties 509 168 — 2,549 3,226 — 3,226 (2,549 ) 677 Total revenues 1,041 168 101,322 2,662 105,193 — 105,193 (95,258 ) 9,935 COSTS AND EXPENSES: Land sales — — 29,958 — 29,958 — 29,958 (29,958 ) — Management services(2) — — 3,896 — 3,896 — 3,896 — 3,896 Operating properties 990 — — 976 1,966 — 1,966 (976 ) 990 Selling, general, and administrative 3,194 1,135 2,939 1,029 8,297 8,587 16,884 (3,968 ) 12,916 Management fees—related party — — 8,162 — 8,162 — 8,162 (8,162 ) — Total costs and expenses 4,184 1,135 44,955 2,005 52,279 8,587 60,866 (43,064 ) 17,802 OTHER INCOME (EXPENSE): Interest income — 15 1,479 34 1,528 3,210 4,738 (1,513 ) 3,225 Interest expense — — — (694 ) (694 ) — (694 ) 694 — Miscellaneous 24 — — — 24 (5,931 ) (5,907 ) — (5,907 ) Total other income (expense) 24 15 1,479 (660 ) 858 (2,721 ) (1,863 ) (819 ) (2,682 ) EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 16 — — — 16 — 16 17,570 17,586 SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION (3,103 ) (952 ) 57,846 (3 ) 53,788 (11,308 ) 42,480 (35,443 ) 7,037 INCOME TAX PROVISION — — — — — (954 ) (954 ) — (954 ) SEGMENT (LOSS) PROFIT/NET INCOME $ (3,103 ) $ (952 ) $ 57,846 $ (3 ) $ 53,788 $ (12,262 ) $ 41,526 $ (35,443 ) $ 6,083 (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. 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 months ended March 31, 2024 (in thousands): Segment profit from operations $ 57,846 Less net income of management company attributed to the Great Park segment 4,717 Net income of the Great Park Venture 53,129 The Company’s share of net income of the Great Park Venture 19,923 Basis difference amortization, net (2,266 ) Equity in earnings from the Great Park Venture $ 17,657 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 months ended March 31, 2024 (in thousands): Segment loss from operations $ (3 ) Less net income of management company attributed to the Commercial segment 113 Net loss of the Gateway Commercial Venture (116 ) Equity in loss from the Gateway Commercial Venture $ (87 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20240418282527/en/
Investor Relations: Kim Tobler, 949-425-5211 Kim.Tobler@fivepoint.com or Media: Eric Morgan, 949-349-1088 Eric.Morgan@fivepoint.com
