Financial Data and Key Metrics Changes - Operating revenues surpassed $2,000,000,000 for the first time, reaching $2,020,000,000, which is a 14% increase in constant currency [34][13] - Net profit after tax was $377,200,000, reflecting a 30% increase in constant currency compared to the previous year [34][13] - Gross margin improved to 62.9%, an increase of 1.3% in constant currency [36] Business Line Data and Key Metrics Changes - Hospital business revenue was $1,280,000,000, up 16% in constant currency [34] - Home care business revenue reached $739,900,000, an 11% increase in constant currency [34] Market Data and Key Metrics Changes - The company’s products were used to treat 22 million patients in FY 2025, indicating strong market demand [30] - The manufacturing facility in China became fully operational, contributing to sales [31] Company Strategy and Development Direction - The company focuses on long-term planning, with a perspective extending beyond 15 years, guiding R&D and infrastructure investments [6][8] - Infrastructure investments include the construction of a fifth building at the East Tamaki campus and securing land for a second campus in New Zealand [8][7] - The company aims to double its revenue every five to six years sustainably [60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of global geopolitics and tariffs but emphasized a long-term strategy to mitigate cost increases through continuous improvements [9][12] - The outlook for FY 2026 anticipates revenue between $2,150,000,000 and $2,250,000,000, with net profit after tax expected to be between $390,000,000 and $440,000,000 [56] Other Important Information - The company is committed to maintaining a prudent balance sheet while investing in R&D and global sales [14] - The board approved a 2% increase in dividends, totaling $0.0425 per share, representing a payout ratio of about 66% [13][14] Q&A Session Summary Question: Why hasn't the company conducted a major investor day like Xero? - The company complies with New Zealand regulations and believes its disclosures are adequate, thus not planning to adopt the Australian remuneration report [66] Question: What are the expectations for FY 2026 underlying profit? - Management referred to the outlook provided earlier, indicating a long-term growth trajectory despite fluctuations during the COVID period [68] Question: How many shareholders voted in favor of the CEO's reelection? - The number of votes will be disclosed at the end of the meeting, but the focus will be on the number of votes rather than individual shareholders [84]

Financial Data and Key Metrics Changes - Operating revenues surpassed $2,000,000,000 for the first time, reaching $2,020,000,000, which is a 14% increase in constant currency [31][32] - Net profit after tax was $377,200,000, reflecting a 30% increase in constant currency compared to the previous year [12][32] - Gross margin improved to 62.9%, an increase of 1.3% in constant currency [34] Business Line Data and Key Metrics Changes - Hospital business revenue was $1,280,000,000, up 16% in constant currency [32] - Home care business revenue reached $739,900,000, an 11% increase in constant currency [32] Market Data and Key Metrics Changes - The company treated 22 million patients with its products during FY 2025 [28] - The manufacturing facility in China became fully operational, contributing to product shipments [29] Company Strategy and Development Direction - The company focuses on long-term planning, with a perspective extending beyond 15 years [6][7] - Infrastructure investments include the construction of a fifth building at the East Tamaki campus and securing land for a second campus in New Zealand [7] - The company aims to double its constant currency revenue every five to six years sustainably [57] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of global geopolitics and tariffs but emphasized a long-term approach to mitigate cost increases [8][11] - The outlook for FY 2026 includes revenue expectations between $2,150,000,000 and $2,250,000, with net profit after tax projected between $390,000,000 and $440,000,000 [53] Other Important Information - The board approved a dividend of $0.0425 per share, a 2% increase over the previous year, with a payout ratio of approximately 66% [12][13] - The company is committed to ongoing investments in R&D and maintaining a prudent balance sheet [13] Q&A Session Summary Question: Why hasn't the company conducted a major investor day like Xero? - The company complies with New Zealand regulations and believes its disclosures are adequate, thus not planning to adopt the Australian remuneration report [63] Question: What are the expectations for FY 2026 underlying profit? - The company provided specific guidance for FY 2026, indicating a long-term growth trajectory despite anomalies during the COVID period [65] Question: Why hasn't the company disclosed proxy votes early? - The company prefers to have discussions without the influence of proxy votes and will disclose them after the meeting [76]

Financial Performance - Operating revenue reached $2.02 billion, an increase of 8% [15] - Underlying Net Profit After Tax was $377.2 million, up by 43% [15] - The total dividend was 42.50 cents per share, a 19% increase [16] - The total dividend for the year represents a payout of 66% of FY25 net profit [22] FY26 Outlook - The company projects operating revenue in the range of approximately $2.15 billion to $2.25 billion [52] - Net profit after tax is expected to be in the range of approximately $390 million to $440 million [52] - For the first half of FY26, revenue is projected to be approximately $1.075 billion [55] - Net profit after tax for the first half of FY26 is expected to be approximately $200 million [55] Resolutions & Voting - Proxy voting results show strong support for the re-election of directors, with Neville Mitchell receiving 96.9% of the votes [103] - The re-election of Lewis Gradon received 99.5% of the votes [103]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for Five Point Holdings, LLC [ITEM 1. Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Five Point Holdings, LLC, covering balance sheets, income, capital, and cash flows, with detailed notes [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows an increase in total assets and total capital from December 31, 2024, to June 30, 2025, primarily driven by an increase in inventories and cash, while liabilities also saw a slight increase | ASSETS/LIABILITIES AND CAPITAL | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------- | :--------------------------- | :------------------------------- | | **ASSETS:** | | | | INVENTORIES | $2,400,597 | $2,298,080 | | CASH AND CASH EQUIVALENTS | $456,640 | $430,875 | | TOTAL ASSETS | $3,158,817 | $3,076,417 | | **LIABILITIES:** | | | | Notes payable, net | $527,462 | $525,737 | | Total liabilities | $908,685 | $896,320 | | **CAPITAL:** | | | | Total members' capital | $779,392 | $749,436 | | Noncontrolling interests | $1,445,740 | $1,405,661 | | Total capital | $2,225,132 | $2,155,097 | | TOTAL LIABILITIES AND CAPITAL | $3,158,817 | $3,076,417 | [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) The company experienced a significant decrease in total revenues for both the three and six months ended June 30, 2025, compared to the prior year, primarily due to lower management services revenue. However, net income attributable to the company increased for the six-month period, driven by higher equity in earnings from unconsolidated entities | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total revenues | $7,473 | $51,192 | $20,630 | $61,127 | | Total costs and expenses | $19,689 | $25,379 | $39,002 | $43,181 | | Equity in earnings from unconsolidated entities | $17,145 | $15,498 | $88,584 | $33,084 | | Net income attributable to the Company | $3,320 | $14,722 | $26,604 | $17,048 | | Basic EPS (Class A) | $0.05 | $0.21 | $0.38 | $0.25 | | Diluted EPS (Class A) | $0.05 | $0.21 | $0.36 | $0.24 | [Unaudited Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income attributable to the company decreased for the three months ended June 30, 2025, but increased for the six months ended June 30, 2025, reflecting changes in net income and other comprehensive income components, primarily related to actuarial adjustments | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | NET INCOME | $8,576 | $38,227 | $69,162 | $44,310 | | OTHER COMPREHENSIVE INCOME—Net of tax | $9 | $11 | $21 | $23 | | COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $3,325 | $14,728 | $26,616 | $17,061 | [Unaudited Condensed Consolidated Statements of Capital](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Capital) The statements of capital show an increase in total capital from December 31, 2024, to June 30, 2025, primarily due to net income and share-based compensation, partially offset by reacquisition of share-based awards for tax withholding purposes | Capital Component (in thousands) | Balance - Dec 31, 2024 | Net Income | Share-based Compensation | Reacquisition of Share-based Compensation | Issuance of Share-based Compensation | Settlement of Restricted Share Units | Other Comprehensive Income | Adjustment to TRA Liability | Adjustment of Noncontrolling Interest | Balance - June 30, 2025 | | :------------------------------- | :--------------------- | :--------- | :----------------------- | :---------------------------------------- | :----------------------------------- | :---------------------------------- | :------------------------- | :-------------------------- | :------------------------------------ | :---------------------- | | Contributed Capital | $593,827 | — | $2,934 | $(1,776) | — | — | — | $(306) | $2,491 | $597,170 | | Retained Earnings | $157,077 | $26,604 | — | — | — | — | — | — | — | $183,681 | | Accumulated Other Comprehensive Loss | $(1,468) | — | — | — | — | — | $12 | — | $(3) | $(1,459) | | Total Members' Capital | $749,436 | $26,604 | $2,934 | $(1,776) | — | — | $12 | $(306) | $2,488 | $779,392 | | Noncontrolling Interests | $1,405,661 | $42,558 | — | — | — | — | $9 | — | $(2,488) | $1,445,740 | | Total Capital | $2,155,097 | $69,162 | $2,934 | $(1,776) | — | — | $21 | $(306) | — | $2,225,132 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly decreased for the six months ended June 30, 2025, compared to the prior year, while net cash provided by investing activities substantially increased. Financing activities used less cash in 2025 due to no major debt repayments | Cash Flow Activity (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Net cash used in operating activities | $(14,902) | $(49,659) | | Net cash provided by investing activities | $42,443 | $14,522 | | Net cash used in financing activities | $(1,776) | $(101,277) | | NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | $25,765 | $(136,414) | | CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period | $457,632 | $218,379 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations of the company's business, significant accounting policies, financial instrument fair values, and specific transactions, including revenue disaggregation, investments in unconsolidated entities, related party transactions, debt, commitments, and earnings per share calculations [Note 1. BUSINESS AND ORGANIZATION](index=10&type=section&id=Note%201.%20BUSINESS%20AND%20ORGANIZATION) Five Point Holdings, LLC operates as an owner and developer of mixed-use planned communities in California through its operating company, with a complex organizational structure involving various equity interests and noncontrolling interests - Five Point Holdings, LLC is a Delaware limited liability company that owns and develops mixed-use planned communities in California[31](index=31&type=chunk) - The Holding Company conducts all operations through Five Point Operating Company, LP, and its subsidiaries[31](index=31&type=chunk) - As of June 30, 2025, the Company owned approximately **62.8%** of the outstanding Class A Common Units of the Operating Company[36](index=36&type=chunk) [Note 2. BASIS OF PRESENTATION](index=12&type=section&id=Note%202.%20BASIS%20OF%20PRESENTATION) The financial statements are unaudited and prepared in accordance with U.S. GAAP for interim financial information, consolidating entities where the Holding Company has a controlling interest or is the primary beneficiary of VIEs, with recent accounting pronouncements adopted or evaluated - The condensed consolidated financial statements are unaudited and prepared in accordance with U.S. GAAP for interim financial information[39](index=39&type=chunk) - The Company adopted ASU 2023-07, Segment Reporting, retrospectively for the current year interim condensed consolidated financial statements[43](index=43&type=chunk) - The Company is evaluating the effect of ASU 2023-09 (Income Taxes) and ASU 2024-03 (Expense Disaggregation Disclosures) on its financial statement disclosures[44](index=44&type=chunk)[45](index=45&type=chunk) [Note 3. REVENUES](index=14&type=section&id=Note%203.%20REVENUES) Consolidated revenues significantly decreased for both the three and six months ended June 30, 2025, compared to 2024, primarily due to a reduction in management services—related party revenue, with contract assets also seeing a net decrease | Revenue Source (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Land sales | $(16) | $307 | $82 | $842 | | Management services—related party | $6,959 | $50,279 | $19,510 | $59,005 | | Total revenues | $7,473 | $51,192 | $20,630 | $61,127 | - The net decrease in contract assets for the six months ended June 30, 2025, was **$18.4 million**, primarily from receiving **$30.4 million** in incentive compensation payments from the Great Park Venture[48](index=48&type=chunk) [Note 4. INVESTMENT IN UNCONSOLIDATED ENTITIES](index=15&type=section&id=Note%204.%20INVESTMENT%20IN%20UNCONSOLIDATED%20ENTITIES) The company holds equity method investments in Great Park Venture, Gateway Commercial Venture, and Valencia Landbank Venture, with Great Park Venture significantly contributing to equity in earnings due to increased land sales - The Operating Company owned **37.5%** of the Great Park Venture's Percentage Interests as of June 30, 2025[51](index=51&type=chunk) Great Park Venture | Great Park Venture (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Land sale and related party land sale revenues | $357,645 | $232,081 | | Net income of Great Park Venture | $254,657 | $98,061 | | Equity in earnings from Great Park Venture | $87,546 | $33,130 | - The Gateway Commercial Venture sold its remaining interests in the Five Point Gateway Campus for **$88.5 million** during the year ended December 31, 2024[59](index=59&type=chunk) Gateway Commercial Venture | Gateway Commercial Venture (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------------- | :--------------------------- | :--------------------------- | | Rental revenues | $0 | $4,773 | | Net income (loss) of Gateway Commercial Venture | $816 | $(406) | | Equity in earnings (loss) from Gateway Commercial Venture | $613 | $(305) | [Note 5. NONCONTROLLING INTERESTS](index=17&type=section&id=Note%205.%20NONCONTROLLING%20INTERESTS) Noncontrolling interests primarily represent equity interests in the Operating Company and San Francisco Venture, which can be exchanged for Class A common shares or cash, with the San Francisco Venture having redeemable Class C units - Noncontrolling interests represent interests held by other partners in the Operating Company and members of the San Francisco Venture[64](index=64&type=chunk) - Holders of Class A Common Units of the Operating Company may exchange their units for Class A common shares or cash after a 12-month holding period[65](index=65&type=chunk) - The San Francisco Venture has **25.0 million** Class C units outstanding, included in redeemable noncontrolling interest, with a maximum redemption/liquidation amount of **$25.0 million**[72](index=72&type=chunk) [Note 6. CONSOLIDATED VARIABLE INTEREST ENTITY](index=18&type=section&id=Note%206.%20CONSOLIDATED%20VARIABLE%20INTEREST%20ENTITY) The Holding Company conducts operations through the Operating Company, a consolidated Variable Interest Entity (VIE), which also consolidates other VIEs like the San Francisco Venture, where the Company is the primary beneficiary - The Holding Company conducts all operations through the Operating Company, a consolidated VIE[73](index=73&type=chunk) - The San Francisco Venture is consolidated as a VIE because the Operating Company has unilateral power over its significant economic activities and receives **99%** of distributions[74](index=74&type=chunk) - As of June 30, 2025, the San Francisco Venture had total combined assets of **$1.46 billion** and total combined liabilities of **$74.5 million**[75](index=75&type=chunk) [Note 7. INTANGIBLE ASSET, NET—RELATED PARTY](index=19&type=section&id=Note%207.%20INTANGIBLE%20ASSET%2C%20NET%E2%80%94RELATED%20PARTY) The intangible asset, representing incentive compensation from the Great Park Venture, decreased in net book value due to amortization, with a lower amortization expense in the current period - The intangible asset relates to the contract value of incentive compensation provisions of the A&R DMA with the Great Park Venture[83](index=83&type=chunk) Intangible Asset | Intangible Asset (in thousands) | June 30, 2025 | December 31, 2024 | | :------------------------------ | :------------ | :---------------- | | Gross carrying amount | $129,705 | $129,705 | | Accumulated amortization | $(122,375) | $(120,668) | | Net book value | $7,330 | $9,037 | - Amortization expense was **$1.7 million** for the six months ended June 30, 2025, a decrease from **$11.5 million** in the prior year[84](index=84&type=chunk) [Note 8. RELATED PARTY TRANSACTIONS](index=20&type=section&id=Note%208.%20RELATED%20PARTY%20TRANSACTIONS) Related party assets, mainly contract assets from the Great Park Venture, decreased, while the development management agreement was renewed, and significant incentive compensation payments were received Related Party Balances | Related Party (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------- | :------------ | :---------------- | | Related Party Assets: | | | | Contract assets | $82,603 | $100,793 | | Total Related Party Assets | $83,473 | $101,670 | | Related Party Liabilities: | | | | Reimbursement obligation | $63,397 | $62,057 | | Total Related Party Liabilities | $64,512 | $63,297 | - The development management agreement with the Great Park Venture was renewed through December 31, 2026, with incentive compensation provisions remaining unchanged[86](index=86&type=chunk) - Incentive compensation payments of **$30.4 million** were received from the Great Park Venture during the six months ended June 30, 2025[87](index=87&type=chunk) [Note 9. NOTES PAYABLE, NET](index=21&type=section&id=Note%209.%20NOTES%20PAYABLE%2C%20NET) Notes payable, net, remained stable at approximately **$527.5 million**, primarily consisting of 10.500% New Senior Notes due 2028, with a **$125.0 million** unsecured revolving credit facility available Notes Payable | Notes Payable (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------- | :------------ | :---------------- | | 10.500% initial rate New Senior Notes due 2028 | $523,494 | $523,494 | | 7.875% Senior Notes due 2025 | $1,500 | $1,500 | | Notes payable, net | $527,462 | $525,737 | - The Operating Company has a **$125.0 million** unsecured revolving credit facility, with no borrowings or letters of credit outstanding as of June 30, 2025[92](index=92&type=chunk) [Note 10. TAX RECEIVABLE AGREEMENT](index=21&type=section&id=Note%2010.%20TAX%20RECEIVABLE%20AGREEMENT) The company's Tax Receivable Agreement (TRA) liability was **$173.8 million** as of June 30, 2025, with no TRA payments made during the current or prior six-month periods - The Company's condensed consolidated balance sheets included liabilities of **$173.8 million** and **$173.4 million** for payments expected to be made under the TRA as of June 30, 2025, and December 31, 2024, respectively[93](index=93&type=chunk) - No TRA payments were made during the six months ended June 30, 2025 or 2024[93](index=93&type=chunk) [Note 11. COMMITMENTS AND CONTINGENCIES](index=21&type=section&id=Note%2011.%20COMMITMENTS%20AND%20CONTINGENCIES) The company faces various contractual obligations, including increased performance bonds and significant guarantees for the San Francisco Venture, alongside ongoing litigation related to alleged contamination Operating Lease | Operating Lease (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Operating lease right-of-use assets | $11,554 | $12,973 | | Operating lease liabilities | $9,889 | $10,980 | - Outstanding performance bonds increased to **$390.8 million** as of June 30, 2025, from **$375.8 million** at December 31, 2024[95](index=95&type=chunk) - The San Francisco Venture has outstanding guarantees of **$198.3 million** for infrastructure and park obligations[97](index=97&type=chunk) - The company entered into an agreement to acquire a controlling interest in Hearthstone Residential Holdings, LLC for **$56.25 million**, expected to close in Q3 2025[98](index=98&type=chunk) - The company is a defendant in the Bayview Action litigation concerning alleged toxic radiological waste at The San Francisco Shipyard[100](index=100&type=chunk) [Note 12. SUPPLEMENTAL CASH FLOW INFORMATION](index=23&type=section&id=Note%2012.%20SUPPLEMENTAL%20CASH%20FLOW%20INFORMATION) Supplemental cash flow details show increased cash paid for interest and income taxes, along with noncash lease expenses and a significant noncash exchange of Senior Notes in the prior year Supplemental Cash Flow | Supplemental Cash Flow (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | | Cash paid for interest | $27,543 | $26,549 | | Cash paid for income taxes | $3,873 | $0 | | Noncash lease expense | $1,419 | $1,383 | | Senior Notes due 2025 exchanged for New Senior Notes due 2028 | $0 | $523,500 | Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash (in thousands) | June 30, 2025 | June 30, 2024 | | :------------------------------------------------------- | :------------ | :------------ | | Cash and cash equivalents | $456,640 | $217,387 | | Restricted cash and certificates of deposit | $992 | $992 | | Total cash, cash equivalents, and restricted cash | $457,632 | $218,379 | [Note 13. SEGMENT REPORTING](index=23&type=section&id=Note%2013.%20SEGMENT%20REPORTING) The company operates through three reportable segments—Valencia, San Francisco, and Great Park—all focused on mixed-use community development in California, with Great Park generating the majority of segment revenues and profit - The company's reportable segments are Valencia, San Francisco, and Great Park, all focused on mixed-use planned communities in California[105](index=105&type=chunk)[106](index=106&type=chunk)[107](index=107&type=chunk) Segment Revenues | Segment (in thousands) | 6 Months Ended June 30, 2025 Revenues | 6 Months Ended June 30, 2024 Revenues | | :--------------------- | :------------------------------------ | :------------------------------------ | | Valencia | $774 | $1,786 | | San Francisco | $346 | $336 | | Great Park | $377,155 | $290,845 | | Total reportable segments | $378,275 | $292,967 | Segment Assets | Segment Assets (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------------- | :------------ | :---------------- | | Valencia | $982,694 | $914,583 | | San Francisco | $1,455,327 | $1,424,819 | | Great Park | $552,261 | $670,906 | | Total reportable segments | $2,990,282 | $3,010,308 | [Note 14. SHARE-BASED COMPENSATION](index=26&type=section&id=Note%2014.%20SHARE-BASED%20COMPENSATION) Share-based compensation expense increased for both the three and six months ended June 30, 2025, with a higher cost for reacquiring vested restricted Class A common shares for tax withholding Share-Based Awards | Share-Based Awards (in thousands) | Nonvested at Jan 1, 2025 | Granted | Forfeited | Vested | Nonvested at June 30, 2025 | | :-------------------------------- | :----------------------- | :------ | :-------- | :----- | :------------------------- | | Share-Based Awards | 6,403 | 2,186 | — | (757) | 7,832 | - Share-based compensation expense was **$2.9 million** for the six months ended June 30, 2025, up from **$1.8 million** in the prior year[127](index=127&type=chunk) - The company reacquired **$1.8 million** of vested restricted Class A common shares for tax withholding purposes during the six months ended June 30, 2025, compared to **$0.8 million** in 2024[128](index=128&type=chunk) [Note 15. EMPLOYEE BENEFIT PLANS](index=26&type=section&id=Note%2015.%20EMPLOYEE%20BENEFIT%20PLANS) The company's frozen defined benefit Retirement Plan generated a net periodic benefit of **$(42) thousand** for the six months ended June 30, 2025, primarily due to expected return on plan assets offsetting interest costs and actuarial loss amortization - The Newhall Land and Farming Company Retirement Plan is a frozen defined benefit plan[129](index=129&type=chunk) Net Periodic Benefit | Net Periodic Benefit (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :---------------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Interest cost | $168 | $193 | $336 | $384 | | Expected return on plan assets | $(201) | $(229) | $(403) | $(458) | | Amortization of net actuarial loss | $12 | $13 | $25 | $27 | | Net periodic benefit | $(21) | $(23) | $(42) | $(47) | [Note 16. INCOME TAXES](index=27&type=section&id=Note%2016.%20INCOME%20TAXES) The company recorded a higher income tax provision for the six months ended June 30, 2025, corresponding to increased pre-tax income. The effective tax rate remains consistent, primarily influenced by non-deductible executive compensation and pass-through income/losses to partners - The Holding Company is treated as a corporation for U.S. federal, state, and local tax purposes, while most subsidiaries are pass-through entities[131](index=131&type=chunk) Income Tax | Income Tax (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Pre-tax income | $9,917 | $44,092 | $80,025 | $51,129 | | Income tax provision | $(1,341) | $(5,865) | $(10,863) | $(6,819) | - The effective tax rates for both periods differ from the **21%** federal statutory rate due to disallowance of executive compensation and pass-through income/losses[133](index=133&type=chunk) [Note 17. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS AND DISCLOSURES](index=27&type=section&id=Note%2017.%20FINANCIAL%20INSTRUMENTS%20AND%20FAIR%20VALUE%20MEASUREMENTS%20AND%20DISCLOSURES) Most financial instruments' carrying amounts approximated fair values, except for notes payable, which had an estimated fair value of **$534.8 million** at June 30, 2025, slightly above its carrying value - The carrying amount of most financial instruments approximated their fair value at June 30, 2025, and December 31, 2024[135](index=135&type=chunk) - The estimated fair value of notes payable, net, was **$534.8 million** at June 30, 2025, compared to a carrying value of **$527.5 million**[136](index=136&type=chunk) [Note 18. EARNINGS PER SHARE](index=28&type=section&id=Note%2018.%20EARNINGS%20PER%20SHARE) The company uses the two-class method for EPS calculation, with basic and diluted EPS for Class A common shares at **$0.05** and **$0.05** for the three months, and **$0.38** and **$0.36** for the six months ended June 30, 2025 - The company uses the two-class method for earnings per share computation, allocating net income between Class A and Class B common shares and participating securities[137](index=137&type=chunk) EPS (Class A) | EPS (Class A) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Basic | $0.05 | $0.21 | $0.38 | $0.25 | | Diluted | $0.05 | $0.21 | $0.36 | $0.24 | - No distributions on common shares were declared for the three and six months ended June 30, 2025 or 2024[138](index=138&type=chunk) [Note 19. ACCUMULATED OTHER COMPREHENSIVE LOSS](index=29&type=section&id=Note%2019.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) Accumulated other comprehensive loss attributable to the company remained stable at **$1.5 million**, primarily consisting of unamortized defined benefit pension plan net actuarial losses, with minimal reclassifications to net income - Accumulated other comprehensive loss attributable to the Company totaled **$1.5 million** at June 30, 2025, and December 31, 2024[142](index=142&type=chunk) - This loss primarily consists of unamortized defined benefit pension plan net actuarial losses[142](index=142&type=chunk) - Reclassifications from accumulated other comprehensive loss to net income were approximately **$12,000** for the six months ended June 30, 2025[142](index=142&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, operational highlights, and liquidity, noting decreased revenues but increased net income for the six-month period, driven by equity in earnings from unconsolidated entities, and ongoing strategic growth [Overview](index=30&type=section&id=Overview) Five Point Holdings, LLC conducts all business through its operating company, which directly or indirectly owns equity interests in various development entities across California, consolidating some and accounting for others using the equity method - The company conducts all business through Five Point Operating Company, LP, in which it owns approximately **62.8%**[144](index=144&type=chunk) - The operating company consolidates and controls Valencia, San Francisco Venture, and the management company, but accounts for Great Park Venture and Gateway Commercial Venture using the equity method[144](index=144&type=chunk)[145](index=145&type=chunk) [Operational Highlights](index=31&type=section&id=Operational%20Highlights) The company reported consolidated net income of **$8.6 million** for Q2 2025, maintaining strong liquidity with **$456.6 million** in cash, and is pursuing strategic growth including a land sale at Great Park and the acquisition of Hearthstone Venture - Consolidated net income was **$8.6 million** for the three months ended June 30, 2025, primarily from incentive compensation and equity in earnings from Great Park Venture[146](index=146&type=chunk) - As of June 30, 2025, the company had **$456.6 million** in cash and **$125.0 million** available under its revolving credit facility, totaling **$581.6 million** in liquidity[146](index=146&type=chunk) - The Great Park Venture closed a sale of **82 homesites** for **$63.6 million** in Q2 2025 and had **572 homesites** under contract[148](index=148&type=chunk) - The company entered into a definitive agreement to acquire a controlling interest in Hearthstone Residential Holdings, LLC for **$56.25 million**, expected to close in Q3 2025[150](index=150&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) The company experienced significant revenue declines for both the three and six months ended June 30, 2025, primarily due to decreased management services revenue, but saw substantially increased equity in earnings from unconsolidated entities [Three Months Ended June 30, 2025 and 2024](index=32&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) For the three months ended June 30, 2025, total revenues decreased by **85.4%** to **$7.5 million**, mainly due to lower management services revenue, while equity in earnings from unconsolidated entities increased to **$17.1 million** - Revenues decreased by **$43.7 million**, or **85.4%**, to **$7.5 million** for the three months ended June 30, 2025, primarily due to a decrease in management services revenue at the Great Park segment[154](index=154&type=chunk) - Cost of management services decreased by **$9.0 million**, or **79.4%**, to **$2.3 million**, mainly due to lower intangible asset amortization[155](index=155&type=chunk) - Equity in earnings from unconsolidated entities increased to **$17.1 million** for the three months ended June 30, 2025, from **$15.5 million** in the prior year, driven by Great Park Venture land sales[158](index=158&type=chunk) [Six Months Ended June 30, 2025 and 2024](index=33&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) For the six months ended June 30, 2025, total revenues decreased by **66.3%** to **$20.6 million**, primarily due to lower management services revenue, but equity in earnings from unconsolidated entities significantly increased to **$88.6 million** - Revenues decreased by **$40.5 million**, or **66.3%**, to **$20.6 million** for the six months ended June 30, 2025, primarily due to a decrease in management services revenue at the Great Park segment[161](index=161&type=chunk) - Cost of management services decreased by **$9.8 million**, or **64.6%**, to **$5.4 million**, mainly due to lower intangible asset amortization[162](index=162&type=chunk) - Equity in earnings from unconsolidated entities increased to **$88.6 million** for the six months ended June 30, 2025, from **$33.1 million** in the prior year, driven by Great Park Venture land sales[165](index=165&type=chunk) [Segment Results and Financial Information](index=34&type=section&id=Segment%20Results%20and%20Financial%20Information) The company's three reportable segments—Valencia, San Francisco, and Great Park—show varied performance. The Great Park segment generated the majority of segment revenues and profit, driven by land sales and management fees, despite a decrease in variable incentive compensation. The San Francisco segment is progressing with approvals and engineering for future development, while Valencia is balancing revenue opportunities with market conditions [Valencia Segment](index=37&type=section&id=Valencia%20Segment) The Valencia segment, encompassing approximately **15,000 acres**, has sold **3,088 homesites** as of June 30, 2025. The company is actively working on commercial and residential land sales for the second half of 2025, balancing revenue opportunities with current market conditions - The Valencia property consists of approximately **15,000 acres** with potential for up to **21,500 homesites** and **11.5 million square feet** of commercial space[181](index=181&type=chunk) - As of June 30, 2025, **3,088 homesites** have been sold in Valencia[181](index=181&type=chunk) - The company expects to close a commercial sale in Valencia in the second half of 2025 and is working on two residential land sales[149](index=149&type=chunk) [San Francisco Segment](index=37&type=section&id=San%20Francisco%20Segment) The San Francisco segment, including Candlestick and The San Francisco Shipyard, has received approvals to transfer approximately **two million square feet** of R&D and office space to Candlestick, with construction for the next infrastructure phase expected in early 2026. Development at this segment is not subject to Proposition M growth control. However, land transfers from the U.S. Navy are delayed due to ongoing environmental retesting and litigation - Candlestick and The San Francisco Shipyard can include up to approximately **12,000 homesites** and **6.3 million square feet** of commercial space[182](index=182&type=chunk) - Approvals were received in November 2024 to transfer approximately **two million square feet** of R&D and office space to Candlestick[183](index=183&type=chunk) - Development at Candlestick and The San Francisco Shipyard is not subject to San Francisco's Proposition M growth control measure[184](index=184&type=chunk) - Land transfers from the U.S. Navy are delayed due to allegations of misrepresented sampling results by contractors and ongoing retesting efforts[185](index=185&type=chunk) [Great Park Segment](index=38&type=section&id=Great%20Park%20Segment) The Great Park segment, where the company holds a **37.5%** interest in the Great Park Venture and manages development, saw land sales and related party land sales revenues increase to **$357.6 million** for the six months ended June 30, 2025. Management fee revenues decreased due to lower variable incentive compensation, despite an increase in the annual fixed base fee. The Great Park Venture distributed **$300.9 million** to percentage interest holders, with the company receiving **$112.9 million** - The company has a **37.5%** percentage interest in the Great Park Venture and performs development management services for Great Park Neighborhoods[187](index=187&type=chunk) - Land sales and related party land sales revenues increased to **$357.6 million** for the six months ended June 30, 2025, from **$232.1 million** in the prior year[198](index=198&type=chunk) - Management fee revenues decreased due to lower variable incentive compensation, despite an increase in the annual fixed base fee to **$13.5 million** in 2025[194](index=194&type=chunk)[201](index=201&type=chunk) - The Great Park Venture made aggregate distributions of **$300.9 million**, of which the company received **$112.9 million** for its **37.5%** interest[189](index=189&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$456.6 million** in cash and **$125.0 million** available under its revolving credit facility as of June 30, 2025. Short-term cash needs include general and administrative expenses, development expenditures, and interest payments. Long-term needs relate to future development and investments, expected to be funded through available cash, distributions, land sales, and public financing. The company also has significant performance bonds and guarantees outstanding - As of June 30, 2025, the company had **$456.6 million** of consolidated cash and cash equivalents and **$125.0 million** available under its revolving credit facility, totaling **$581.6 million** in liquidity[207](index=207&type=chunk) - Short-term cash needs include general and administrative expenses, development expenditures at Valencia and San Francisco, interest payments, and a related party reimbursement obligation deferred through December 31, 2025[208](index=208&type=chunk) - The company expects to fund cash requirements for at least the next 12 months through available cash, distributions from unconsolidated entities, management fees, land sales, reimbursements from public financing, and its revolving credit facility[209](index=209&type=chunk) - Outstanding performance bonds totaled **$390.8 million**, and the San Francisco Venture had **$198.3 million** in outstanding guarantees for infrastructure and park obligations as of June 30, 2025[212](index=212&type=chunk)[213](index=213&type=chunk) [Summary of Cash Flows](index=44&type=section&id=Summary%20of%20Cash%20Flows) Net cash used in operating activities significantly decreased to **$14.9 million** for the six months ended June 30, 2025, from **$49.7 million** in the prior year, primarily due to higher incentive compensation payments and distributions from the Great Park Venture. Net cash provided by investing activities increased to **$42.4 million**, while net cash used in financing activities decreased substantially due to no major debt repayments in 2025 Cash Flow Activity | Cash Flow Activity (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------------------- | :--------------------------- | :--------------------------- | | Operating activities | $(14,902) | $(49,659) | | Investing activities | $42,443 | $14,522 | | Financing activities | $(1,776) | $(101,277) | - Received **$30.4 million** in incentive compensation payments and **$112.9 million** in total distributions from the Great Park Venture during the six months ended June 30, 2025[217](index=217&type=chunk) - Cash used in financing activities decreased significantly due to no **$100.0 million** debt repayment made in 2025, unlike 2024[223](index=223&type=chunk) [Changes in Capital Structure](index=45&type=section&id=Changes%20in%20Capital%20Structure) The company's ownership in the operating company slightly increased to **62.8%** due to share-based compensation issuances and settlements, partially offset by reacquisition of shares for tax withholding. The capital structure includes Class A and Class B common shares, with Class B shares convertible to Class A under specific conditions - The company's ownership interest in the Operating Company slightly increased to **62.8%** during the six months ended June 30, 2025[224](index=224&type=chunk) - This change was primarily due to the issuance of restricted Class A common shares and settlement of restricted share units, partially offset by reacquisition of shares for tax withholding[224](index=224&type=chunk) Units Outstanding | Units Outstanding | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Class A units of the operating company: Held by us | 69,861,335 | 69,369,234 | | Class A units of the operating company: Held by noncontrolling interest members | 41,363,271 | 41,363,271 | | Class A units of the San Francisco Venture held by noncontrolling interest members | 37,870,273 | 37,870,273 | [Critical Accounting Estimates](index=45&type=section&id=Critical%20Accounting%20Estimates) There have been no significant changes to the company's critical accounting estimates during the six months ended June 30, 2025, compared to those disclosed in the Annual Report on Form 10-K for December 31, 2024 - No significant changes to critical accounting estimates occurred during the six months ended June 30, 2025[227](index=227&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk stems from its fixed-rate indebtedness, totaling **$527.5 million** as of June 30, 2025. It does not currently use derivative financial instruments to manage market risk but may consider swap arrangements for floating-rate debt in the future - The company's primary market risk results from its indebtedness, which bears interest at fixed rates[228](index=228&type=chunk) - As of June 30, 2025, outstanding consolidated net indebtedness was **$527.5 million**, all bearing fixed interest rates[229](index=229&type=chunk) - The company has not entered into any transactions using derivative financial instruments[229](index=229&type=chunk) [ITEM 4. Controls and Procedures](index=46&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, with the participation of the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025. There were no material changes in internal control over financial reporting during the period [Evaluation of Disclosure Controls and Procedures](index=46&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) The Certifying Officers concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, ensuring timely and accurate reporting of required information - The Certifying Officers concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[230](index=230&type=chunk) [Changes in Internal Control Over Financial Reporting](index=46&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) No material changes in internal control over financial reporting were identified during the period covered by this report - There were no changes in internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[231](index=231&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information on legal proceedings, risk factors, equity sales, defaults, mine safety, other disclosures, and exhibits [ITEM 1. Legal Proceedings](index=47&type=section&id=ITEM%201.%20Legal%20Proceedings) Disclosures regarding legal proceedings are incorporated by reference from Note 11 to the condensed consolidated financial statements - Legal proceedings disclosures are incorporated by reference from Note 11 of the financial statements[234](index=234&type=chunk) [ITEM 1A. Risk Factors](index=47&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes in risk factors from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[235](index=235&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities or use of proceeds to report - None to report[236](index=236&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=47&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities to report - None to report[236](index=236&type=chunk) [ITEM 4. Mine Safety Disclosures](index=47&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[236](index=236&type=chunk) [ITEM 5. Other Information](index=47&type=section&id=ITEM%205.%20Other%20Information) There is no other information to report under this item - None to report[236](index=236&type=chunk) [ITEM 6. Exhibits](index=48&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including the Contribution and Purchase Agreement for Hearthstone Residential Holdings, LLC, certifications of principal officers, and Inline XBRL documents - Includes the Contribution and Purchase Agreement for Hearthstone Residential Holdings, LLC (Exhibit 10.1)[237](index=237&type=chunk) - Certifications of Principal Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2)[237](index=237&type=chunk) - Inline XBRL Instance Document and Taxonomy Extension Documents (Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE, 104)[237](index=237&type=chunk) [Signatures](index=49&type=section&id=Signatures) The report is duly signed on behalf of Five Point Holdings, LLC by Daniel Hedigan, President and Chief Executive Officer, and Kim Tobler, Chief Financial Officer, Treasurer and Vice President, on July 24, 2025 - Signed by Daniel Hedigan, President and Chief Executive Officer, and Kim Tobler, Chief Financial Officer, Treasurer and Vice President[240](index=240&type=chunk) - Date of signature: July 24, 2025[240](index=240&type=chunk)

Financial Data and Key Metrics Changes - The company reported a net income of $8.6 million for Q2 2025, consistent with guidance, driven primarily by Great Park land sales [5][24] - Total liquidity at the end of the quarter was $581.6 million, comprising $456.6 million in cash and cash equivalents, and $125 million available under the revolving credit facility [6][26] - The company anticipates ending 2025 with net income consistent with 2024's net income of $177.6 million, despite potential delays in land sales [7][29] Business Line Data and Key Metrics Changes - The Great Park Venture closed a residential land sale of 82 home sites for $63.6 million, generating net income of $48.4 million, with Five Point's share adjusted to $16.7 million [6][25] - In the Great Park community, builders sold 112 homes in Q2 2025, down from 233 homes in Q1 2025 [11] - In Valencia, builders sold 49 new homes in Q2 2025, compared to 69 in Q1 2025 [13] Market Data and Key Metrics Changes - The residential market has weakened due to higher interest rates and lower consumer confidence, impacting new home sales [6][10] - Despite the slowdown, existing communities in California remain in demand due to chronic undersupply [7][10] Company Strategy and Development Direction - The company is focused on optimizing homesite value within existing master plan communities and managing fixed costs while pursuing growth opportunities [8][9] - The acquisition of Hearthstone is expected to enhance Five Point's capital allocation capabilities and introduce recurring revenue streams [15][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the current market uncertainty but believes the housing market will self-correct over the next quarters [10] - The company remains committed to monitoring market conditions and adjusting strategies as necessary [10][18] Other Important Information - The Hearthstone acquisition is expected to close in Q3 2025 and is seen as a strategic move to reinforce Five Point's position in the housing ecosystem [15][22] - The company plans to consolidate Hearthstone's activities in its financial statements, which is expected to enhance its asset management capabilities [27] Q&A Session Summary Question: Inquiry about the economics of the Hearthstone deal - Management confirmed that the business model should be viewed as a percentage of assets under management minus personnel expenses [33] Question: Concerns about competition in the land banking space - Management acknowledged increased competition but emphasized that demand exceeds supply, negating the need for changes in their current approach [35][36] Question: Guidance on potential lower land prices - Management indicated that while they are aware of market conditions, California's supply constraints allow them to maintain pricing strategies [39][40] Question: Use of cash for share buybacks - Management stated that current senior note indentures restrict share buybacks, which they are considering for future refinancing [47] Question: Concerns about stock price relative to book value - Management addressed concerns about the corporate structure and its impact on stock valuation, emphasizing long-term growth potential [51][52]

[Second Quarter 2025 Highlights and CEO Commentary](index=1&type=section&id=Second%20Quarter%202025%20Highlights) This section summarizes Q2 2025 highlights, including CEO commentary, key financial metrics, and operational achievements [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Dan Hedigan discusses Q2 2025 consolidated net income, significant land sales, strong liquidity, and future growth strategies - Consolidated net income for Q2 2025 was **$8.6 million**, meeting expectations[4](index=4&type=chunk) - Completed a significant land sale in the Great Park community[4](index=4&type=chunk) - The company maintained strong liquidity of **$581.6 million** at the end of Q2 2025[4](index=4&type=chunk) - Anticipates 2025 consolidated net income to be consistent with **$177.6 million** in 2024, with the Hearthstone, Inc. land banking joint venture expected to close in Q3 to introduce new recurring revenue streams and expand the institutional capital partnership platform[4](index=4&type=chunk) [Key Financial and Operational Highlights](index=1&type=section&id=Key%20Financial%20and%20Operational%20Highlights) Q2 2025 saw successful land and home sales in Great Park and Valencia, alongside reported consolidated revenue and net income, and a strategic acquisition - Great Park Venture sold **82 homesites** on **5.7 acres** for a total purchase price of **$63.6 million**[10](index=10&type=chunk) - Great Park builders sold **112 homes** and Valencia builders sold **47 homes** during the quarter[10](index=10&type=chunk) Consolidated Financial Data for Q2 2025 | Metric | Amount | | :--- | :--- | | Consolidated Revenue | $7.5 million | | Consolidated Net Income | $8.6 million | - Agreement reached to acquire Hearthstone, Inc.'s business and operations for **$56.25 million**[10](index=10&type=chunk) Liquidity and Capitalization as of June 30, 2025 | Metric | Amount | | :--- | :--- | | Cash and Cash Equivalents | $456.6 million | | Total Liquidity | $581.6 million | | Debt to Capitalization Ratio | 19.1% | [Company Information](index=2&type=section&id=About%20Five%20Point) This section outlines Five Point's business model, detailing its master-planned communities, and addresses forward-looking statements [About Five Point](index=2&type=section&id=About%20Five%20Point) Five Point designs and develops large-scale, mixed-use master-planned communities in California, integrating residential, commercial, and public amenities - Five Point designs and develops large-scale, mixed-use master-planned communities in California, including Great Park, Valencia, Candlestick, and The San Francisco Shipyard[12](index=12&type=chunk) - These communities are planned to include approximately **40,000 homes** and **23 million square feet** of commercial space[12](index=12&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements subject to risks and uncertainties, based on current views and available information, with actual results potentially differing materially from expectations, as detailed in the company's SEC filings - This press release contains forward-looking statements regarding expectations for future sales, financial performance, market conditions, and transactions[13](index=13&type=chunk) - Forward-looking statements are subject to risks, trends, uncertainties, and factors beyond the company's control, and actual results may differ materially from expectations[13](index=13&type=chunk) - The company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable law[13](index=13&type=chunk) [Consolidated Financial Performance](index=1&type=section&id=Consolidated%20Financial%20Performance) This section details the company's consolidated operating results, balance sheet, and liquidity and capital resources [Consolidated Results of Operations](index=1&type=section&id=Consolidated%20Results%20of%20Operations) The company's consolidated operating results for Q2 and the first half of 2025 show a significant year-over-year decrease in total revenue, primarily due to reduced management service income, yet net income attributable to the company increased for the six-month period driven by substantial growth in earnings from unconsolidated entities - Total revenue for Q2 2025 was **$7.473 million**, primarily from management services, a significant decrease from **$51.192 million** in the same period of 2024[6](index=6&type=chunk)[16](index=16&type=chunk) - Earnings from unconsolidated entities for Q2 2025 were **$17.145 million**, with Great Park Venture contributing **$16.7 million**[7](index=7&type=chunk)[16](index=16&type=chunk) - Consolidated net income for Q2 2025 was **$8.576 million**, with net income attributable to the company at **$3.32 million**[9](index=9&type=chunk)[16](index=16&type=chunk) [Three Months Ended June 30, 2025](index=1&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025) For the three months ended June 30, 2025, the company experienced a substantial decline in total revenue and net income attributable to the company compared to the prior year, despite an increase in earnings from unconsolidated entities Consolidated Results of Operations (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $7,473 | $51,192 | | Total Costs and Expenses | $19,689 | $25,379 | | Earnings from Unconsolidated Entities | $17,145 | $15,498 | | Net Income | $8,576 | $38,227 | | Net Income Attributable to the Company | $3,320 | $14,722 | | Class A Basic EPS | $0.05 | $0.21 | - Total revenue for Q2 2025 decreased by **85.4%** year-over-year, primarily due to a reduction in management service revenue from **$50.279 million** to **$6.959 million**[16](index=16&type=chunk) - Net income attributable to the company decreased from **$14.722 million** in Q2 2024 to **$3.32 million** in Q2 2025[16](index=16&type=chunk) [Six Months Ended June 30, 2025](index=3&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025) For the six months ended June 30, 2025, total revenue significantly decreased, but net income attributable to the company increased due to a substantial rise in earnings from unconsolidated entities Consolidated Results of Operations (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Revenue | $20,630 | $61,127 | | Total Costs and Expenses | $39,002 | $43,181 | | Earnings from Unconsolidated Entities | $88,584 | $33,084 | | Net Income | $69,162 | $44,310 | | Net Income Attributable to the Company | $26,604 | $17,048 | | Class A Basic EPS | $0.38 | $0.25 | - Total revenue for the first half of 2025 decreased by **66.3%** year-over-year, primarily due to a reduction in management service revenue from **$59.005 million** to **$19.51 million**[16](index=16&type=chunk) - Earnings from unconsolidated entities significantly increased from **$33.084 million** in the first half of 2024 to **$88.584 million** in the first half of 2025[16](index=16&type=chunk) - Net income attributable to the company increased from **$17.048 million** in the first half of 2024 to **$26.604 million** in the first half of 2025[16](index=16&type=chunk) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Five Point's total assets increased to $3.1588 billion from $3.0764 billion at December 31, 2024, primarily driven by an increase in inventory, while total liabilities slightly rose and total capitalization grew to $2.2251 billion Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $3,158,817 | $3,076,417 | | Inventory | $2,400,597 | $2,298,080 | | Cash and Cash Equivalents | $456,640 | $430,875 | | Total Liabilities | $908,685 | $896,320 | | Notes Payable, Net | $527,462 | $525,737 | | Total Capital | $2,225,132 | $2,155,097 | - Inventory increased by **$102.5 million** as of June 30, 2025, compared to December 31, 2024[18](index=18&type=chunk) - Cash and cash equivalents increased by **$25.765 million** as of June 30, 2025, compared to December 31, 2024[18](index=18&type=chunk) [Liquidity and Capital Resources](index=1&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Five Point maintained strong liquidity of $581.6 million, comprising cash and available borrowing capacity, with a debt-to-capitalization ratio of 19.1% and a net debt-to-capitalization ratio of 3.0%, indicating relatively low leverage - Total liquidity was **$581.6 million** as of June 30, 2025[5](index=5&type=chunk)[20](index=20&type=chunk) - Liquidity consists of **$456.6 million** in cash and cash equivalents and **$125 million** available under an unsecured revolving credit facility[5](index=5&type=chunk)[20](index=20&type=chunk) - No outstanding borrowings or letters of credit were on the revolving credit facility as of June 30, 2025[20](index=20&type=chunk) [Liquidity](index=5&type=section&id=Liquidity) As of June 30, 2025, the company reported total liquidity of $581.6 million, composed of cash and available borrowing capacity Liquidity as of June 30, 2025 (in thousands) | Metric | Amount | | :--- | :--- | | Cash and Cash Equivalents | $456,640 | | Borrowing Capacity | $125,000 | | Total Liquidity | $581,640 | - Total capital was **$2.2 billion** as of June 30, 2025, reflecting **$3.2 billion** in assets and **$0.9 billion** in liabilities and redeemable noncontrolling interests[5](index=5&type=chunk) [Debt to Total Capitalization](index=5&type=section&id=Debt%20to%20Total%20Capitalization) The company's debt to total capitalization ratio was 19.1% and net debt to total capitalization ratio was 3.0% as of June 30, 2025, indicating a conservative capital structure Debt to Total Capitalization as of June 30, 2025 (in thousands) | Metric | Amount | | :--- | :--- | | Debt | $524,994 | | Total Capital | $2,225,132 | | Total Capitalization | $2,750,126 | | Debt to Total Capitalization Ratio | 19.1% | | Net Debt | $68,354 | | Net Debt to Total Capitalization Ratio | 3.0% | - Net debt to total capitalization ratio is a non-GAAP financial measure used to assess the company's leverage in its operations[21](index=21&type=chunk) [Segment Results](index=6&type=section&id=Segment%20Results) This section details the financial performance of operating segments and reconciles Great Park Venture results for the reporting periods [Three Months Ended June 30, 2025 Segment Performance](index=6&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025%20Segment%20Performance) In Q2 2025, the Great Park segment was the primary contributor to revenue and profit among reported segments, driven by land sales, while Valencia and San Francisco segments both recorded losses, and the commercial segment ceased operations after an asset sale in December 2024 Q2 2025 Segment Revenue (in thousands) | Segment | Land Sales | Management Services—Related Parties | Operating Properties | Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Valencia | $(16) | — | $358 | $342 | | San Francisco | — | — | $172 | $172 | | Great Park | $72,242 | $6,959 | — | $79,201 | Q2 2025 Segment (Loss) Profit/Income Before Taxes (in thousands) | Segment | Segment (Loss) Profit/Income Before Taxes | | :--- | :--- | | Valencia | $(4,302) | | San Francisco | $(1,041) | | Great Park | $53,024 | | Corporate and Unallocated | $(6,061) | - The commercial segment ceased operations after the sale of commercial operating assets of the Gateway Commercial Venture in December 2024[23](index=23&type=chunk) [Six Months Ended June 30, 2025 Segment Performance](index=7&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Segment%20Performance) For the first half of 2025, the Great Park segment continued its strong performance, generating substantial revenue from land sales and significantly contributing to segment profit, while Valencia and San Francisco segments consistently recorded losses H1 2025 Segment Revenue (in thousands) | Segment | Land Sales | Management Services—Related Parties | Operating Properties | Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Valencia | $82 | — | $692 | $774 | | San Francisco | — | — | $346 | $346 | | Great Park | $357,645 | $19,510 | — | $377,155 | H1 2025 Segment (Loss) Profit/Income Before Taxes (in thousands) | Segment | Segment (Loss) Profit/Income Before Taxes | | :--- | :--- | | Valencia | $(7,664) | | San Francisco | $(2,015) | | Great Park | $268,776 | | Corporate and Unallocated | $(11,961) | - The Great Park segment generated **$357.6 million** in land sales revenue and contributed **$268.8 million** in segment profit before taxes for the first half of 2025[24](index=24&type=chunk) [Great Park Venture Reconciliation](index=7&type=section&id=Great%20Park%20Venture%20Reconciliation) This section reconciles the Great Park segment's operating results with the company's equity in earnings from the Great Park Venture, which is accounted for using the equity method, showing the venture's net income and the company's share after basis amortization Great Park Venture Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :--- | :--- | :--- | | Operating Segment Profit | $53,024 | $268,776 | | Great Park Venture Net Income | $48,395 | $254,657 | | Company's Share of Great Park Venture Net Income | $18,148 | $95,496 | | Equity in Earnings of Great Park Venture | $16,692 | $87,546 | - The company's share of Great Park Venture net income for Q2 2025 was **$18.148 million**, which was **$16.692 million** after basis amortization[26](index=26&type=chunk) - Equity in earnings of Great Park Venture for the six months ended June 30, 2025, was **$87.546 million**[26](index=26&type=chunk) [Company Information](index=2&type=section&id=Conference%20Call%20Information) This section provides details for the Q2 2025 earnings conference call and contact information for investor relations and media [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Five Point held a conference call on Thursday, July 24, 2025, at 5:00 PM ET to discuss its Q2 2025 results, with a live webcast available on the company's website and a replay service until August 2, 2025 - The conference call was held on Thursday, July 24, 2025, at **5:00 PM ET**[11](index=11&type=chunk) - Investors can listen to the live webcast via ir.fivepoint.com[11](index=11&type=chunk) - A telephone replay service will be available until **11:59 PM ET** on August 2, 2025[11](index=11&type=chunk) [Investor Relations](index=2&type=section&id=Investor%20Relations) This section provides contact information for Five Point Holdings, LLC's investor relations and media inquiries - Investor Relations contact: Kim Tobler, Phone: **949-425-5211**, Email: Kim.Tobler@fivepoint.com[14](index=14&type=chunk) - Media Contact: Eric Morgan, Phone: **949-349-1088**, Email: Eric.Morgan@fivepoint.com[14](index=14&type=chunk)

Business Focus - The company is hosting a 2025 Investor Event focused on changing clinical practice[22] - The company's long-term growth aspirations extend to a total addressable market of ~150+ million hospital patients and ~100+ million homecare patients[35] - The company provides physicians with speaking fees or charitable donations for their time, and reimburses expenses related to events[10] Clinical Practice and Evidence - Nasal high flow clinical papers are published annually, supporting global practice change[25] - There are 193 ongoing clinical trials across 25+ countries for Anaesthesia Optiflow[100] - Clinical evidence is driving practice change, particularly in Anaesthesia Optiflow, with numerous publications including systematic reviews, randomized controlled trials, and non-comparative studies[97, 98] - Nasal high flow is recommended or acknowledged alongside other oxygenation techniques in various guidelines across multiple countries[105] Product Application - Optiflow is used in various settings including neonatal care, anaesthesia, the ED, and the ward[9, 87, 108] - The company's therapies cover a range of applications including invasive and noninvasive ventilation, hospital respiratory support, anesthesia support, home respiratory care, and obstructive sleep apnea[35]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited financial statements and management's analysis for the quarter ended March 31, 2025 [Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2025, highlighting a significant increase in net income primarily due to the Great Park Venture Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,158,963** | **$3,076,417** | | Cash and cash equivalents | $528,329 | $430,875 | | Inventories | $2,349,856 | $2,298,080 | | Investment in unconsolidated entities | $143,347 | $185,324 | | **Total Liabilities** | **$919,135** | **$896,320** | | Notes payable, net | $526,587 | $525,737 | | **Total Capital** | **$2,214,828** | **$2,155,097** | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenues | $13,157 | $9,935 | | Equity in earnings from unconsolidated entities | $71,439 | $17,586 | | **Net Income** | **$60,586** | **$6,083** | | Net income attributable to the Company | $23,284 | $2,326 | | **Diluted EPS (Class A)** | **$0.32** | **$0.03** | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $56,729 | $(26,424) | | Net cash provided by investing activities | $42,501 | $6,247 | | Net cash used in financing activities | $(1,776) | $(100,940) | | **Net increase (decrease) in cash** | **$97,454** | **$(121,117)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's accounting policies, business structure, segment revenues, investments in unconsolidated entities, debt, and segment performance - The company is an owner and developer of mixed-use planned communities in California, conducting all operations through the Five Point Operating Company, LP[31](index=31&type=chunk) Revenues by Segment (Three Months Ended March 31, 2025, in thousands) | Segment | Land Sales | Management Services | Operating Properties | Total | | :--- | :--- | :--- | :--- | :--- | | Valencia | $98 | $— | $334 | $432 | | San Francisco | $— | $— | $174 | $174 | | Great Park | $— | $12,551 | $— | $12,551 | | **Total Consolidated** | **$98** | **$12,551** | **$508** | **$13,157** | - The Great Park Venture, a 37.5% owned equity method investee, generated net income of **$206.3 million** in Q1 2025, up from **$53.1 million** in Q1 2024, with the company receiving **$112.9 million** in distributions from this venture during the quarter[50](index=50&type=chunk)[54](index=54&type=chunk) - The company's reportable segments are Valencia, San Francisco, and Great Park, with the Great Park segment including 100% of the Great Park Venture's results for segment reporting purposes, which are then eliminated in consolidation[101](index=101&type=chunk)[102](index=102&type=chunk)[103](index=103&type=chunk) - The company is involved in the Hunters Point Litigation related to alleged fraudulent environmental testing by a U.S. Navy contractor at The San Francisco Shipyard, believing it has meritorious defenses[96](index=96&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the significant increase in Q1 2025 net income to strong Great Park Venture performance, detailing operational results, cash flow activities, and capital resources across all communities - Consolidated net income rose to **$60.6 million** in Q1 2025 from **$6.1 million** in Q1 2024, largely driven by incentive compensation revenue and equity in earnings from the Great Park Venture[129](index=129&type=chunk) - The Great Park Venture closed sales of **325 homesites** for **$278.9 million** in Q1 2025, leading to **$143.3 million** in distributions and related payments to the company[130](index=130&type=chunk) - Total liquidity as of March 31, 2025, was **$653.3 million**, consisting of **$528.3 million** in cash and **$125.0 million** available under the revolving credit facility[129](index=129&type=chunk) Summary of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Operating activities | $56,729 | $(26,424) | | Investing activities | $42,501 | $6,247 | | Financing activities | $(1,776) | $(100,940) | [Segment Results](index=32&type=section&id=Segment%20Results) This section details performance across Valencia, San Francisco, and Great Park segments, highlighting Great Park's significant land sales and San Francisco's ongoing development delays - **Valencia:** Guest builders sold **69 homes** during Q1 2025, bringing the total to **1,668 homes** sold since sales began in May 2021[131](index=131&type=chunk) - **San Francisco:** Development at The San Francisco Shipyard is delayed due to U.S. Navy re-evaluation of environmental data, though the company received approvals to transfer approximately **two million sq. ft.** of commercial space to the Candlestick portion of the project[149](index=149&type=chunk)[152](index=152&type=chunk) - **Great Park:** Land sales revenue increased to **$285.4 million** in Q1 2025 from **$92.7 million** in Q1 2024, driven by the sale of **325 homesites** compared to **82** in the prior-year period[157](index=157&type=chunk) - Management fee revenues from the Great Park Venture increased, primarily due to a higher annual fixed base fee (increased to **$13.5 million** for 2025) and higher variable incentive compensation[160](index=160&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$528.3 million** in cash and an available **$125.0 million** revolving credit facility, expecting to meet future cash requirements through various sources - As of March 31, 2025, the company had **$528.3 million** in cash and cash equivalents and a fully available **$125.0 million** unsecured revolving credit facility[165](index=165&type=chunk) - The company expects to meet cash requirements for at least the next 12 months with available cash, distributions from unconsolidated entities (like Great Park Venture), management fees, and proceeds from land sales[167](index=167&type=chunk) - The company has outstanding performance bonds of **$376.1 million**, primarily for the Valencia community, and the San Francisco Venture has guarantees of **$198.3 million** for infrastructure and park obligations[170](index=170&type=chunk)[171](index=171&type=chunk) - Payments under the Tax Receivable Agreement (TRA) are expected to be substantial but are not anticipated to begin for the majority of payments until after 2028[173](index=173&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is its **$526.6 million** fixed-rate indebtedness, with no current use of derivative financial instruments for hedging - As of March 31, 2025, the company's outstanding consolidated net indebtedness of **$526.6 million** bears interest at fixed rates, minimizing risk from interest rate changes[187](index=187&type=chunk) - The company has not entered into any transactions using derivative financial instruments or derivative commodity instruments[187](index=187&type=chunk) [Controls and Procedures](index=39&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting - Based on an evaluation as of March 31, 2025, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[188](index=188&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[189](index=189&type=chunk) [PART II. OTHER INFORMATION](index=41&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers various other required disclosures, including legal proceedings, risk factors, equity sales, defaults, and exhibits [Legal Proceedings](index=41&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 11 for legal proceedings, primarily the Hunters Point Litigation concerning The San Francisco Shipyard - For disclosures of legal proceedings, the report incorporates by reference Note 11 to the condensed consolidated financial statements[191](index=191&type=chunk) [Risk Factors](index=41&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for 2024 - There have been no material changes in risk factors from those disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024[192](index=192&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[193](index=193&type=chunk) [Defaults Upon Senior Securities](index=41&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[193](index=193&type=chunk) [Mine Safety Disclosures](index=41&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[193](index=193&type=chunk) [Other Information](index=41&type=section&id=ITEM%205.%20Other%20Information) The company reported no other information required to be disclosed under this item - None[193](index=193&type=chunk) [Exhibits](index=41&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL data - The report lists required certifications under the Sarbanes-Oxley Act (Sections 302 and 906) and various Inline XBRL documents as exhibits[193](index=193&type=chunk)

Financial Data and Key Metrics Changes - The company reported a net income of $60.6 million for Q1 2025, exceeding guidance by approximately $10 million [7][36] - Total liquidity at the end of the quarter was $653.3 million, consisting of $528.3 million in cash and cash equivalents, an increase of $97.5 million from year-end [9][40] - The company received a credit rating upgrade from S&P from B- to B, with senior notes upgraded from B to B+ [9] Business Line Data and Key Metrics Changes - The Great Park Venture generated $206.3 million in net income, with land sales revenue of $278.9 million and a gross margin of 75% [38] - Home sales in the Great Park communities increased to 233 homes in Q1 2025 from 143 homes in Q4 2024 [19] - Valencia community saw home sales of 69 homes in Q1 2025, slightly down from 74 in Q4 2024 [23] Market Data and Key Metrics Changes - The company noted a modest decline in the pace of sales due to rising mortgage rates and consumer sentiment issues [10][18] - California markets remain chronically undersupplied, which supports ongoing demand for home sites [11][18] Company Strategy and Development Direction - The company is focused on optimizing home site value within existing communities and managing fixed costs while pursuing growth opportunities [13][15] - Growth initiatives include new acquisitions, joint ventures, and strategic relationships to ensure sustainable long-term growth [15][30] - The company is actively exploring opportunities to convert commercial land to residential uses in response to market needs [21][64] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment due to tariff policies and higher mortgage rates but remains confident in meeting prior guidance for 2025 [10][16] - The company is monitoring evolving market conditions closely and expects to maintain its guidance for net income close to $200 million for the full year [16][43] Other Important Information - The company generated net cash flow of $97.5 million during the quarter, with significant inflows from the Great Park Venture [41] - The company is considering refinancing options for its senior notes as market conditions improve [44][82] Q&A Session Summary Question: Will regulatory changes benefit developments? - Management confirmed that any expedited processes in California would support housing delivery [47] Question: Any updates on CapEx plans for San Francisco? - Management indicated that insights on CapEx plans would be provided towards the end of the year [51] Question: Why not reduce debt with excess cash? - Management explained that the cost of paying down debt is currently not prudent due to market conditions, but they are monitoring the situation [56][57] Question: What is the expected price for future land sales? - Management stated that the blended number for recent sales is about $11.8 million per acre, with future sales expected to be consistent with this figure [62] Question: How much commercial land is left in Irvine? - Management confirmed there are 100 acres of commercial land between four sites available for potential residential conversion [70]

Financial Data and Key Metrics Changes - The company reported a net income of $60.6 million for Q1, exceeding guidance by approximately $10 million [4][23] - Total liquidity at the end of the quarter was $653.3 million, consisting of $528.3 million in cash and cash equivalents, an increase of $97.5 million from year-end [5][24] - The company received a credit rating upgrade from S&P, moving from B- to B with a stable outlook [5][22] Business Line Data and Key Metrics Changes - The Great Park Venture closed on four residential land sales, generating an aggregate purchase price of $278.9 million [5][23] - Builders in the Great Park community sold 233 homes in Q1, up from 143 homes in Q4 2024 [11] - Valencia community sales remained steady with 69 homes sold in Q1 compared to 74 in Q4 [13] Market Data and Key Metrics Changes - The Federal Reserve cut rates by 100 basis points since September, but recent tariff policies have created upward pressure on interest rates [10] - Consumer sentiment has been negatively impacted by tariff uncertainties, affecting new home sales [10] Company Strategy and Development Direction - The company is focused on optimizing homesite value within existing communities and managing fixed costs while pursuing growth opportunities [7][8] - Growth initiatives will complement existing communities and are aimed at maximizing land value and maintaining margins [6][8] - The company is exploring acquisitions and joint ventures to expand its reach and diversify its platform [19][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging economic environment but remains confident in meeting prior guidance for 2025 net income of close to $200 million [9][26] - The company is actively monitoring market conditions and is prepared to adjust strategies as necessary [10][26] Other Important Information - The company generated net cash flow of $97.5 million during the quarter, with significant inflows from the Great Park Venture [24] - The company plans to provide more insight on capital expenditure plans for San Francisco developments towards the end of the year [31] Q&A Session Summary Question: Will regulatory changes expedite development processes? - Management confirmed that any regulatory changes to expedite processes would be beneficial for delivering housing [29] Question: What is the status of CapEx plans for next year? - Management indicated that insights on CapEx plans would be provided towards the end of the year [31] Question: Why is the company not reducing debt with excess cash? - Management explained that the cost of paying down debt is currently not prudent due to market conditions, but they are monitoring the situation [34][35] Question: What is the expected future sales price for land? - Management stated that the blended number for recent land sales is about $11.8 million per acre, with future sales expected to be consistent with this figure [40] Question: How much commercial land is left entitled in Irvine? - Management confirmed they have 100 acres of commercial land between four sites [45] Question: Will the recent wildfires impact housing supply? - Management noted that the wildfires have created a need for housing, but the impact on government approval processes is still being assessed [56]