Financial Performance - Consolidated net income for Q3 2025 was $55.7 million, a significant increase from $12.3 million in Q3 2024, driven by incentive compensation revenue and equity in earnings from the Great Park Venture[169]. - Total revenues for Q3 2025 decreased by $3.5 million, or 20.7%, to $13.5 million compared to $17.0 million in Q3 2024, primarily due to a decline in management services revenue at the Great Park segment[178]. - Equity in earnings from unconsolidated entities rose to $70.1 million in Q3 2025, up from $12.0 million in Q3 2024, reflecting the net income generated by the Great Park Venture from land sales[182]. - For the nine months ended September 30, 2025, revenues decreased by $44.0 million, or 56.3%, to $34.1 million from $78.1 million in the same period of 2024, mainly due to reduced management services revenue[185]. - Total revenues for the nine months ended September 30, 2025, were $664.835 million, a significant increase from $371.733 million in the same period of 2024, representing an increase of approximately 78.7%[200]. - The net income for the nine months ended September 30, 2025, was $424.073 million, compared to $142.890 million in the same period of 2024, indicating a substantial increase of approximately 196.5%[200]. Land Sales and Ventures - The Great Park Venture closed land sales of 326 homesites totaling 26.6 acres for an aggregate base purchase price of $257.7 million in Q3 2025[171]. - Land sales and related party land sales revenues increased to $273.1 million for the three months ended September 30, 2025, from $61.5 million for the same period in 2024, primarily due to the sale of land entitled for 326 homesites[215]. - For the nine months ended September 30, 2025, land sales and related party land sales revenues rose to $630.7 million, compared to $293.6 million for the same period in 2024, driven by the sale of land entitled for 733 homesites[223]. - The Great Park Venture recognized $10.4 million in profit participation revenues for the three months ended September 30, 2025, compared to $6.0 million for the same period in 2024[216]. - The company's share of net income from the Great Park Venture was $75.6 million for the three months ended September 30, 2025, compared to $12.5 million for the same period in 2024[232]. Expenses and Costs - SG&A expenses increased by $7.6 million, or 20.6%, to $44.6 million for the nine months ended September 30, 2025, attributed to corporate expenses and costs related to the Hearthstone Venture acquisition[187]. - Total costs and expenses for the three months ended September 30, 2025, amounted to $94.933 million, with land sales expenses at $64.883 million[192]. - The company reported total costs and expenses of $240.325 million for the nine months ended September 30, 2025, compared to $227.771 million in the same period of 2024, reflecting an increase of about 5.4%[200]. - Management services costs and expenses decreased by $1.5 million, or 36.2%, to $2.7 million for the three months ended September 30, 2025, from $4.3 million for the same period in 2024[219]. - SG&A expenses decreased by $0.6 million, or 19.5%, to $2.5 million for the three months ended September 30, 2025, from $3.1 million for the same period in 2024[220]. Financing and Liquidity - In September 2025, the company issued $450.0 million in senior notes due October 2030, with proceeds used to redeem existing senior notes totaling $523.5 million[174]. - As of September 30, 2025, the company had total liquidity of $476.1 million, consisting of $351.1 million in cash and $125.0 million available under its revolving credit facility[169]. - The company had outstanding guarantees benefiting a municipal agency with maximum obligations of $198.3 million as of September 30, 2025[239]. - The company paid $47.4 million in interest on senior notes during the nine months ended September 30, 2025[246]. - As of September 30, 2025, the company had outstanding consolidated net indebtedness of $444.5 million[263]. Future Outlook and Development - The company expects to close a commercial sale in Valencia in Q4 2025 and is working on two residential land sales anticipated to close in 2026[172]. - The company expects to invest significantly in horizontal development at Valencia over the next 12 months, managing expenditures to align with projected demand[235]. - The company anticipates sufficient capital to fund horizontal development and pursue growth strategies for several years[237]. - The company expects substantial payments under the tax receivable agreement (TRA) in the future, although no amounts are expected to be payable in 2025[242]. - The company has ceased operations in the commercial segment following the sale of the Gateway Commercial Venture's assets in December 2024[197]. Tax and Regulatory Matters - Pre-tax income for the nine months ended September 30, 2025, was $144.9 million, resulting in a tax provision of $20.1 million, compared to a pre-tax income of $65.4 million and a tax provision of $8.7 million for the same period in 2024[190]. - The effective tax rate for the nine months ended September 30, 2025, was similar to that of the previous year, indicating stable tax management[190]. - The company is not subject to San Francisco's Proposition M growth control measure, allowing for unrestricted construction of permitted commercial square footage at Candlestick and The San Francisco Shipyard[208]. Market Risks - The primary market risk arises from the company's indebtedness, which bears interest at fixed rates[262]. - Future earnings and cash flows are dependent on prevailing market interest rates[262]. - The company may manage market risk on floating rate debt in the future by entering into swap arrangements[262]. - The objective of potential swap arrangements would be to reduce floating rate exposure[262]. - The company does not plan to enter into hedging arrangements for speculative purposes[262].

Financial Data and Key Metrics Changes - The company reported a consolidated net income of $55.7 million for Q3 2025, continuing a pattern of steady earnings performance [4] - Total liquidity at the beginning of the quarter was $47.6 million, with cash and cash equivalents of $351.1 million and borrowing availability of $125 million under an unsecured revolving credit facility [4] - The company recognized $124 million of net income for the nine months ended September 30, with significant contributions from equity in earnings from unconsolidated entities [20][21] Business Line Data and Key Metrics Changes - The Great Park Venture sold 326 home sites on 26.6 acres for a base purchase price of $257.7 million, resulting in net income of $201.6 million for the venture [4] - Builders sold 187 homes in the Great Park during Q3, an increase from 112 homes sold in Q2 [9] - In Valencia, builders sold 50 homes during the quarter, compared to 47 homes in Q2, with eight actively selling programs and eight new programs anticipated [11] Market Data and Key Metrics Changes - The company noted resilient home buyer and builder demand at the Great Park, despite pressures from higher interest rates and affordability challenges [6] - The underlying imbalance between housing supply and demand in California supports land sale activity, with expectations for gradual improvement in buyer confidence if mortgage rates ease [7] Company Strategy and Development Direction - The company focuses on optimizing the value of home sites, maintaining a lean operating structure, matching development expenditures with revenue generation, and pursuing selective growth opportunities through acquisitions [8] - The acquisition of Hearthstone is seen as a significant step towards becoming an institutional platform for land development and financing [13][16] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about the future, expecting improvement in buyer confidence and a gradual rebound in home sales activity as the rate environment normalizes [7] - The company anticipates closing 2025 with net income close to last year's income of $176.3 million, supported by ongoing land sales and management services revenues [25] Other Important Information - The company successfully refinanced its senior notes, reducing outstanding principal and saving over $20 million annually in cash flow [22] - Moody's upgraded the company's corporate credit rating and senior notes rating to B2 with a stable outlook, reflecting financial resilience [5] Q&A Session Summary Question: How have discussions been going with existing option deals and bank deals since the Hearthstone acquisition? - Management indicated that Hearthstone's disciplined underwriting has resulted in no issues with the existing book of business, and they do not expect any problems [29] Question: What is the expected revenue and income stream from Hearthstone in the near term? - The company expects the $1 million segment profitability for the two months post-acquisition to grow as they move into later parts of the year [30] Question: When should we expect to see the next residential lot sale in Valencia? - Management indicated that the next residential lot sale in Valencia is expected in 2026, as they are monitoring the market closely [32] Question: What is the book value per share? - The company stated that the book value per share is estimated to be between $8 and $10, although there was some confusion regarding the calculation [37][39] Question: What is driving the increase in non-redeemable equity on the balance sheet? - The increase is attributed to temporary equity associated with the Hearthstone transaction, which includes a put call on the remaining 25% not acquired [44]

Financial Performance - Consolidated net income for Q3 2025 was $55.7 million, with net income attributable to the Company at $21.1 million[4] - Revenues for Q3 2025 were $13.5 million, primarily generated from management services[6] - Total revenues for the three months ended September 30, 2025, were $286,560 thousand, compared to $273,060 thousand for the same period last year, an increase of 4.9%[23] - Segment profit/income before income tax provision was $204,842 thousand for the three months ended September 30, 2025, compared to $196,999 thousand for the same period last year, an increase of 4.7%[23] - Total revenues for the nine months ended September 30, 2025, were $664.835 million, a significant increase from the previous period[25] - The company reported a net income of $124.876 million for the nine months ended September 30, 2025, after accounting for income tax provision[25] - The Great Park segment reported a segment profit from operations of $208.352 million for the three months ended September 30, 2025, and $477.128 million for the nine months ended September 30, 2025[28] - The equity in earnings from the Great Park Venture for the nine months ended September 30, 2025, was $157.094 million, reflecting the company's share of net income[28] - The company’s share of net income from the Great Park Venture was $171.109 million for the nine months ended September 30, 2025[28] Liquidity and Capital Structure - Total liquidity as of September 30, 2025, was $476.1 million, consisting of cash and cash equivalents of $351.1 million and borrowing availability of $125.0 million[5] - The Company increased its revolving credit facility borrowing capacity to $217.5 million and extended the maturity date to July 2029[9] - Cash and cash equivalents decreased to $351,127 thousand from $430,875 thousand, a decline of 18.4%[19] - Total assets increased to $3,185,282 thousand as of September 30, 2025, up from $3,076,417 thousand at December 31, 2024, representing a growth of 3.6%[19] - Total liabilities decreased to $835,773 thousand from $896,320 thousand, a reduction of 6.7%[19] - Total capital increased to $2,279,982 thousand from $2,155,097 thousand, reflecting an increase of 5.8%[19] - Debt to total capitalization ratio is 16.5% as of September 30, 2025, indicating a stable leverage position[22] - Net debt to total capitalization is 4.2%, showing a low level of net debt relative to total capitalization[22] Investments and Acquisitions - The Company closed the acquisition of a 75% interest in Hearthstone Residential Holdings, LLC, for $57.6 million[9] - The Great Park Venture sold 326 homesites for an aggregate purchase price of $257.7 million[8] - The Company issued $450.0 million in new 8.000% Senior Notes due October 2030, while redeeming existing Senior Notes totaling $523.5 million[9] Expenses and Other Income - Total costs and expenses for the nine months ended September 30, 2025, amounted to $240.325 million, with selling, general, and administrative expenses at $51.718 million[25] - Interest income for the nine months ended September 30, 2025, was $19.018 million, contributing positively to the overall financial performance[25] - The total other income for the nine months ended September 30, 2025, was $12.481 million, indicating a positive contribution to the overall income[25] - The company experienced a loss on extinguishment of debt amounting to $1.824 million during the reporting period[25] - Management services related party revenues totaled $32.336 million for the nine months ended September 30, 2025[25] Future Outlook - Full-year 2025 consolidated net income is expected to be in line with 2024 results, supported by moderating interest rates and supply-demand imbalances[4]

Core Insights - Five Point Holdings reported a consolidated net income of $55.7 million for Q3 2025, with total liquidity of $476.1 million, indicating strong financial performance and execution across its operations [2][3][8] - The company closed land sales to four builders at the Great Park, totaling 326 homesites for an aggregate purchase price of $257.7 million, showcasing the strength of its community developments [2][6][12] - Five Point acquired a 75% interest in the Hearthstone land banking venture for $57.6 million, enhancing its revenue streams and establishing a national footprint in land banking [2][12] - The company refinanced its senior notes and increased its revolving credit facility, strengthening its capital structure and positioning for long-term growth [2][12] Financial Performance - Total revenues for Q3 2025 were $13.5 million, primarily from management services [4][12] - Equity in earnings from unconsolidated entities was $70.1 million, with the Great Park Venture generating net income of $201.6 million during the same period [5][12] - Consolidated net income attributable to the company was $21.1 million, with net income attributable to noncontrolling interests totaling $34.6 million [8][12] Liquidity and Capital Structure - As of September 30, 2025, the company had cash and cash equivalents of $351.1 million and borrowing availability of $125 million under its unsecured revolving credit facility [3][12] - Total capital was reported at $2.3 billion, with a debt to total capitalization ratio of 16.5% [3][12][16] - The company issued $450 million in new senior notes due October 2030 and redeemed existing senior notes, reflecting proactive capital management [12][16] Market Position and Outlook - The company anticipates that moderating interest rates and supply-demand imbalances will continue to support builder interest in its communities [2][12] - Full-year 2025 consolidated net income is expected to align with 2024 results, indicating stable performance expectations [2][12]

Core Viewpoint - Five Point Holdings, LLC has initiated a cash tender offer to purchase all outstanding 10.500% Initial Rate Senior Notes due 2028, which commenced on September 15, 2025, and expired at 5:00 p.m. New York City Time [1] Group 1 - The cash tender offer is aimed at acquiring any and all of the outstanding Notes co-issued by Five Point Operating Company, LP and Five Point Capital Corp [1] - The Offer commenced on September 15, 2025, indicating a strategic move by the company to manage its debt obligations [1] - The expiration of the Offer was set for 5:00 p.m. New York City Time, marking a specific timeline for investors [1]

Core Viewpoint - Five Point Holdings, LLC has announced the pricing terms for a cash tender offer to purchase all outstanding 10.500% Initial Rate Senior Notes due 2028 [1] Group 1 - The cash tender offer is aimed at acquiring any and all of the outstanding senior notes [1] - The senior notes are co-issued by Five Point Operating Company, LP and Five Point Capital Corp [1] - The announcement indicates a strategic move by the company to manage its debt obligations [1]

Core Viewpoint - Five Point Holdings, LLC has announced the pricing of $450 million aggregate principal amount of 8.000% senior notes due 2030, which will be issued at par [1]. Group 1 - The issuer of the notes is Five Point Operating Company, LP, which owns all of Five Point's assets and conducts all operations [1]. - Five Point Capital Corp., a wholly owned subsidiary of the issuer, is acting as the co-issuer for the notes [1]. - The new senior notes will be guaranteed jointly and severally [1].

Core Viewpoint - Five Point Holdings, LLC has initiated a cash tender offer to purchase all outstanding 10.500% Initial Rate Senior Notes due 2028, co-issued by Five Point Operating Company, LP and Five Point Capital Corp [1] Group 1 - The cash tender offer is aimed at acquiring any and all of the outstanding senior notes [1] - The senior notes have an initial interest rate of 10.500% and are due in 2028 [1] - The offer is made by two entities: Five Point Operating Company, LP and Five Point Capital Corp [1]

Group 1 - Five Point Holdings, LLC plans to offer $450.0 million in senior notes due 2030, subject to market and other conditions [1] - The notes will be guaranteed jointly and severally by Five Point Operating Company, LP and Five Point Capital Corp., a wholly owned subsidiary of the issuer [1]

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]