Five Point Holdings, LLC Reports First Quarter 2025 Results
First Quarter 2025 Highlights
-
Great Park Venture sold 325 homesites on 23.6 acres of land for an aggregate purchase price of
$278.9 million -
Great Park Venture distributions and incentive compensation payments to the Company totaled
$143.3 million - Great Park builder sales of 233 homes during the quarter.
-
Valencia builder sales of 69 homes during the quarter. -
Consolidated revenues of
$13.2 million $60.6 million - In April 2025, S&P Global Ratings upgraded our senior notes rating to B+, upgraded our corporate rating to B, and continued our outlook at stable.
-
Cash and cash equivalents of
$528.3 million -
Debt to total capitalization ratio of
19.2% and liquidity of$653.3 million
Dan Hedigan, President and Chief Executive Officer, said, “I am happy to report that we started 2025 with a strong first quarter in which we generated consolidated net income of
Consolidated Results
Liquidity and Capital Resources
As of March 31, 2025, total liquidity of
Results of Operations for the Three Months Ended March 31, 2025
Revenues. Revenues of
Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was
During the three months ended March 31, 2025, the Great Park Venture sold 325 homesites on 23.6 acres of land at the Great Park Neighborhoods for an aggregate purchase price of
Selling, general, and administrative. Selling, general, and administrative expenses were
Net income. Consolidated net income for the quarter was
Conference Call Information
In conjunction with this release, Five Point will host a conference call on Thursday, April 24, 2025 at 5:00 p.m. Eastern Time. 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 13753453. The telephonic replay will be available until 11:59 p.m. Eastern Time on May 3, 2025.
About Five Point
Five Point, headquartered in
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, |
||||||
|
|
2025 |
|
|
|
2024 |
|
REVENUES: |
|
|
|
||||
Land sales |
$ |
98 |
|
|
$ |
535 |
|
Land sales—related party |
|
— |
|
|
|
(3 |
) |
Management services—related party |
|
12,551 |
|
|
|
8,726 |
|
Operating properties |
|
508 |
|
|
|
677 |
|
Total revenues |
|
13,157 |
|
|
|
9,935 |
|
COSTS AND EXPENSES: |
|
|
|
||||
Land sales |
|
— |
|
|
|
— |
|
Management services |
|
3,061 |
|
|
|
3,896 |
|
Operating properties |
|
1,487 |
|
|
|
990 |
|
Selling, general, and administrative |
|
14,765 |
|
|
|
12,916 |
|
Total costs and expenses |
|
19,313 |
|
|
|
17,802 |
|
OTHER INCOME (EXPENSE): |
|
|
|
||||
Interest income |
|
4,050 |
|
|
|
3,225 |
|
Miscellaneous |
|
775 |
|
|
|
(5,907 |
) |
Total other income (expense) |
|
4,825 |
|
|
|
(2,682 |
) |
EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES |
|
71,439 |
|
|
|
17,586 |
|
INCOME BEFORE INCOME TAX PROVISION |
|
70,108 |
|
|
|
7,037 |
|
INCOME TAX PROVISION |
|
(9,522 |
) |
|
|
(954 |
) |
NET INCOME |
|
60,586 |
|
|
|
6,083 |
|
LESS NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |
|
37,302 |
|
|
|
3,757 |
|
NET INCOME ATTRIBUTABLE TO THE COMPANY |
$ |
23,284 |
|
|
$ |
2,326 |
|
|
|
|
|
||||
NET INCOME ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE |
|
|
|
||||
Basic |
$ |
0.33 |
|
|
$ |
0.03 |
|
Diluted |
$ |
0.32 |
|
|
$ |
0.03 |
|
WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING |
|
|
|
||||
Basic |
|
69,513,757 |
|
|
|
69,058,585 |
|
Diluted |
|
148,824,110 |
|
|
|
145,876,835 |
|
NET INCOME 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, 2025 |
|
December 31, 2024 |
||||
ASSETS |
|
|
|
||||
INVENTORIES |
$ |
2,349,856 |
|
|
$ |
2,298,080 |
|
INVESTMENT IN UNCONSOLIDATED ENTITIES |
|
143,347 |
|
|
|
185,324 |
|
PROPERTIES AND EQUIPMENT, NET |
|
29,429 |
|
|
|
29,487 |
|
INTANGIBLE ASSET, NET—RELATED PARTY |
|
7,804 |
|
|
|
9,037 |
|
CASH AND CASH EQUIVALENTS |
|
528,329 |
|
|
|
430,875 |
|
RESTRICTED CASH AND CERTIFICATES OF DEPOSIT |
|
992 |
|
|
|
992 |
|
RELATED PARTY ASSETS |
|
80,183 |
|
|
|
101,670 |
|
OTHER ASSETS |
|
19,023 |
|
|
|
20,952 |
|
TOTAL |
$ |
3,158,963 |
|
|
$ |
3,076,417 |
|
|
|
|
|
||||
LIABILITIES AND CAPITAL |
|
|
|
||||
LIABILITIES: |
|
|
|
||||
Notes payable, net |
$ |
526,587 |
|
|
$ |
525,737 |
|
Accounts payable and other liabilities |
|
113,345 |
|
|
|
100,292 |
|
Related party liabilities |
|
63,842 |
|
|
|
63,297 |
|
Deferred income tax liability, net |
|
41,512 |
|
|
|
33,570 |
|
Payable pursuant to tax receivable agreement |
|
173,849 |
|
|
|
173,424 |
|
Total liabilities |
|
919,135 |
|
|
|
896,320 |
|
|
|
|
|
||||
REDEEMABLE NONCONTROLLING INTEREST |
|
25,000 |
|
|
|
25,000 |
|
CAPITAL: |
|
|
|
||||
Class A common shares; No par value; Issued and outstanding: March 31, 2025—69,858,638 shares; December 31, 2024—69,369,234 shares |
|
|
|
||||
Class B common shares; No par value; Issued and outstanding: March 31, 2025—79,233,544 shares; December 31, 2024—79,233,544 shares |
|
|
|
||||
Contributed capital |
|
595,437 |
|
|
|
593,827 |
|
Retained earnings |
|
180,361 |
|
|
|
157,077 |
|
Accumulated other comprehensive loss |
|
(1,464 |
) |
|
|
(1,468 |
) |
Total members’ capital |
|
774,334 |
|
|
|
749,436 |
|
Noncontrolling interests |
|
1,440,494 |
|
|
|
1,405,661 |
|
Total capital |
|
2,214,828 |
|
|
|
2,155,097 |
|
TOTAL |
$ |
3,158,963 |
|
|
$ |
3,076,417 |
|
FIVE POINT HOLDINGS, LLC |
|||
SUPPLEMENTAL DATA |
|||
(In thousands) |
|||
(Unaudited) |
|||
|
|||
| Liquidity | |||
|
March 31, 2025 |
||
Cash and cash equivalents |
$ |
528,329 |
|
Borrowing capacity(1) |
|
125,000 |
|
Total liquidity |
$ |
653,329 |
|
(1) As of March 31, 2025, no borrowings or letters of credit were outstanding on the Company’s |
|||
Debt to Total Capitalization and Net Debt to Total Capitalization |
|||
|
March 31, 2025 |
||
Debt(1) |
$ |
524,994 |
|
Total capital |
|
2,214,828 |
|
Total capitalization |
$ |
2,739,822 |
|
Debt to total capitalization |
|
19.2 |
% |
|
|
||
Debt(1) |
$ |
524,994 |
|
Less: Cash and cash equivalents |
|
528,329 |
|
Net debt |
|
(3,335 |
) |
Total capital |
|
2,214,828 |
|
Total net capitalization |
$ |
2,211,493 |
|
Net debt to total capitalization(2) |
|
(0.2 |
)% |
(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, 2025 (in thousands):
|
|
|
|
|
Great Park |
|
Total reportable segments |
|
Corporate and unallocated |
|
Total under management |
|
Removal of unconsolidated entities(1) |
|
Total consolidated |
||||||||||||||
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Land sales |
$ |
98 |
|
|
$ |
— |
|
|
$ |
285,403 |
|
$ |
285,501 |
|
$ |
— |
|
|
$ |
285,501 |
|
|
$ |
(285,403 |
) |
|
$ |
98 |
|
Land sales—related party |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Management services—related party(2) |
|
— |
|
|
|
— |
|
|
|
12,551 |
|
|
12,551 |
|
|
— |
|
|
|
12,551 |
|
|
|
— |
|
|
|
12,551 |
|
Operating properties |
|
334 |
|
|
|
174 |
|
|
|
— |
|
|
508 |
|
|
— |
|
|
|
508 |
|
|
|
— |
|
|
|
508 |
|
Total revenues |
|
432 |
|
|
|
174 |
|
|
|
297,954 |
|
|
298,560 |
|
|
— |
|
|
|
298,560 |
|
|
|
(285,403 |
) |
|
|
13,157 |
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Land sales |
|
— |
|
|
|
— |
|
|
|
70,216 |
|
|
70,216 |
|
|
— |
|
|
|
70,216 |
|
|
|
(70,216 |
) |
|
|
— |
|
Management services(2) |
|
— |
|
|
|
— |
|
|
|
3,061 |
|
|
3,061 |
|
|
— |
|
|
|
3,061 |
|
|
|
— |
|
|
|
3,061 |
|
Operating properties |
|
1,487 |
|
|
|
— |
|
|
|
— |
|
|
1,487 |
|
|
— |
|
|
|
1,487 |
|
|
|
— |
|
|
|
1,487 |
|
Selling, general, and administrative |
|
3,296 |
|
|
|
1,163 |
|
|
|
2,760 |
|
|
7,219 |
|
|
10,306 |
|
|
|
17,525 |
|
|
|
(2,760 |
) |
|
|
14,765 |
|
Management fees—related party |
|
— |
|
|
|
— |
|
|
|
7,858 |
|
|
7,858 |
|
|
— |
|
|
|
7,858 |
|
|
|
(7,858 |
) |
|
|
— |
|
Total costs and expenses |
|
4,783 |
|
|
|
1,163 |
|
|
|
83,895 |
|
|
89,841 |
|
|
10,306 |
|
|
|
100,147 |
|
|
|
(80,834 |
) |
|
|
19,313 |
|
OTHER INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest income |
|
— |
|
|
|
15 |
|
|
|
1,693 |
|
|
1,708 |
|
|
4,035 |
|
|
|
5,743 |
|
|
|
(1,693 |
) |
|
|
4,050 |
|
Miscellaneous |
|
775 |
|
|
|
— |
|
|
|
— |
|
|
775 |
|
|
— |
|
|
|
775 |
|
|
|
— |
|
|
|
775 |
|
Total other income |
|
775 |
|
|
|
15 |
|
|
|
1,693 |
|
|
2,483 |
|
|
4,035 |
|
|
|
6,518 |
|
|
|
(1,693 |
) |
|
|
4,825 |
|
EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES |
|
214 |
|
|
|
— |
|
|
|
— |
|
|
214 |
|
|
371 |
|
|
|
585 |
|
|
|
70,854 |
|
|
|
71,439 |
|
SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION |
|
(3,362 |
) |
|
|
(974 |
) |
|
|
215,752 |
|
|
211,416 |
|
|
(5,900 |
) |
|
|
205,516 |
|
|
|
(135,408 |
) |
|
|
70,108 |
|
INCOME TAX PROVISION |
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
(9,522 |
) |
|
|
(9,522 |
) |
|
|
— |
|
|
|
(9,522 |
) |
SEGMENT (LOSS) PROFIT/NET INCOME |
$ |
(3,362 |
) |
|
$ |
(974 |
) |
|
$ |
215,752 |
|
$ |
211,416 |
|
$ |
(15,422 |
) |
|
$ |
195,994 |
|
|
$ |
(135,408 |
) |
|
$ |
60,586 |
|
(1) |
Represents the removal of the Great Park Venture operating results, which are included in the Great Park segment operating results at |
After the sale of the Gateway Commercial Venture’s commercial operating assets in December 2024, the Company’s commercial segment is no longer operating. The equity in earnings from the Company’s investment in the Gateway Commercial Venture is reported within the corporate and unallocated column in the table above. |
|
(2) |
The amounts for the Great Park segment represent the revenues and expenses attributable to the management company for providing services to the Great Park 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, 2025 (in thousands):
Segment profit from operations |
$ |
215,752 |
|
Less net income of management company attributed to the Great Park segment |
|
9,490 |
|
Net income of the Great Park Venture |
|
206,262 |
|
The Company’s share of net income of the Great Park Venture |
|
77,348 |
|
Basis difference amortization, net |
|
(6,494 |
) |
Equity in earnings from the Great Park Venture |
$ |
70,854 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250424667968/en/
Investor Relations:
Kim Tobler, 949-425-5211
Kim.Tobler@fivepoint.com
or
Media:
Eric Morgan, 949-349-1088
Eric.Morgan@fivepoint.com
Source: Five Point Holdings, LLC
