Five Point(FPH) - 2025 Q1 - Quarterly Results

First Quarter 2025 Results Overview First Quarter 2025 Highlights Five Point Holdings, LLC reported a strong first quarter in 2025, achieving significant consolidated net income and maintaining robust liquidity. Key operational achievements included substantial homesite sales at Great Park Neighborhoods and positive credit rating upgrades First Quarter 2025 Key Financial Highlights: | Metric | Amount (Millions) | | :-------------------------------- | :---------------- | | Consolidated Net Income | $60.6 | | Total Cash and Cash Equivalents | $528.3 | | Total Liquidity | $653.3 | | Debt to Total Capitalization Ratio | 19.2% | - Great Park Venture sold 325 homesites on 23.6 acres for an aggregate purchase price of $278.9 million[8][11] - Great Park Venture distributions and incentive compensation payments to the Company totaled $143.3 million[11] - S&P Global Ratings upgraded the Company's senior notes rating to B+ and corporate rating to B in April 2025, with a stable outlook[11] CEO Commentary CEO Dan Hedigan highlighted a strong start to 2025 with solid financial performance and continued homebuilder demand. The company is closely monitoring market uncertainties, including tariff policy and mortgage rates, but maintains its full-year 2025 net income guidance due to an undersupplied housing market - The company generated consolidated net income of $60.6 million in Q1 2025[4] - Homebuilder demand remained strong during the first quarter, with significant homesite sales and purchase agreements at Great Park Neighborhoods[4] - The company is monitoring market conditions, particularly the impact of elevated mortgage rates and recent tariff policy announcements[4] - Despite market uncertainty, the company believes housing markets remain materially undersupplied and is maintaining its 2025 guidance of just under $200 million in consolidated annual net income[4] Company Information About Five Point Five Point is an owner and developer of large mixed-use planned communities in California, integrating residential, commercial, retail, educational, and recreational elements with public amenities. Its key communities include Great Park Neighborhoods, Valencia, Candlestick, and The San Francisco Shipyard - Five Point designs and develops large mixed-use planned communities in Orange County, Los Angeles County, and San Francisco County[14] - Communities combine residential, commercial, retail, educational, and recreational elements with public amenities[14] - Key communities include Great Park Neighborhoods, Valencia, Candlestick, and The San Francisco Shipyard, designed to include up to approximately 40,000 residential homes and 23 million square feet of commercial space[14] Consolidated Financial Performance Results of Operations for the Three Months Ended March 31, 2025 For the first quarter of 2025, Five Point reported consolidated revenues primarily from management services, a significant increase in equity in earnings from unconsolidated entities, and a substantial rise in net income attributable to the company compared to the prior year Revenues Revenues (Three Months Ended March 31): | Metric | 2025 (Thousands) | 2024 (Thousands) | Change (YoY) | | :-------------------------- | :--------------- | :--------------- | :----------- | | Total Revenues | $13,157 | $9,935 | +32.4% | | Management Services—related party | $12,551 | $8,726 | +43.8% | Equity in Earnings from Unconsolidated Entities Equity in Earnings from Unconsolidated Entities (Three Months Ended March 31): | Metric | 2025 (Thousands) | 2024 (Thousands) | Change (YoY) | | :-------------------------------- | :--------------- | :--------------- | :----------- | | Equity in Earnings | $71,439 | $17,586 | +306.2% | | Great Park Venture Net Income | $206,300 | N/A | N/A | | Company's Share of Great Park Venture Net Income | $70,900 | N/A | N/A | Selling, General, and Administrative Expenses Selling, General, and Administrative Expenses (Three Months Ended March 31): | Metric | 2025 (Thousands) | 2024 (Thousands) | Change (YoY) | | :-------------------------------- | :--------------- | :--------------- | :----------- | | Selling, General, and Administrative | $14,765 | $12,916 | +14.3% | Net Income Net Income (Three Months Ended March 31): | Metric | 2025 (Thousands) | 2024 (Thousands) | Change (YoY) | | :-------------------------------- | :--------------- | :--------------- | :----------- | | Consolidated Net Income | $60,586 | $6,083 | +895.9% | | Net Income Attributable to the Company | $23,284 | $2,326 | +901.0% | | Basic EPS Attributable to the Company | $0.33 | $0.03 | +1000.0% | | Diluted EPS Attributable to the Company | $0.32 | $0.03 | +966.7% | Liquidity and Capital Resources As of March 31, 2025, Five Point maintained strong liquidity, primarily driven by cash and cash equivalents, complemented by available borrowing capacity. The company's capital structure reflects a healthy balance of assets and liabilities Liquidity and Capital Resources (As of March 31, 2025): | Metric | Amount (Millions) | | :-------------------------------- | :---------------- | | Total Liquidity | $653.3 | | Cash and Cash Equivalents | $528.3 | | Borrowing Availability (Unsecured Revolving Credit Facility) | $125.0 | | Total Capital | $2,200.0 | | Total Assets | $3,200.0 | | Total Liabilities and Redeemable Noncontrolling Interests | $900.0 | Condensed Consolidated Statements of Operations The condensed consolidated statements of operations show a significant year-over-year improvement for the three months ended March 31, 2025, with total revenues increasing by 32.4% and net income attributable to the company surging by 901.0%, largely driven by higher equity in earnings from unconsolidated entities Condensed Consolidated Statements of Operations (Three Months Ended March 31, in thousands): | Metric | 2025 | 2024 | Change (YoY) | | :-------------------------------- | :------- | :------- | :----------- | | Total Revenues | $13,157 | $9,935 | +32.4% | | Total Costs and Expenses | $19,313 | $17,802 | +8.5% | | Equity in Earnings from Unconsolidated Entities | $71,439 | $17,586 | +306.2% | | Net Income | $60,586 | $6,083 | +895.9% | | Net Income Attributable to the Company | $23,284 | $2,326 | +901.0% | | Basic EPS Attributable to the Company | $0.33 | $0.03 | +1000.0% | Condensed Consolidated Balance Sheets The balance sheet as of March 31, 2025, shows an increase in total assets and total capital compared to December 31, 2024, primarily driven by higher cash and cash equivalents and inventories, while liabilities also saw a modest increase Condensed Consolidated Balance Sheets (As of, in thousands): | Metric | March 31, 2025 | December 31, 2024 | Change (QoQ) | | :-------------------------------- | :--------------- | :---------------- | :----------- | | Inventories | $2,349,856 | $2,298,080 | +2.25% | | Investment in Unconsolidated Entities | $143,347 | $185,324 | -22.65% | | Cash and Cash Equivalents | $528,329 | $430,875 | +22.62% | | Total Assets | $3,158,963 | $3,076,417 | +2.68% | | Total Liabilities | $919,135 | $896,320 | +2.55% | | Total Capital | $2,214,828 | $2,155,097 | +2.77% | Supplemental Financial Data Liquidity Five Point's total liquidity as of March 31, 2025, was $653.3 million, primarily composed of cash and cash equivalents, supplemented by available borrowing capacity under its revolving credit facility Liquidity (As of March 31, 2025, in thousands): | Metric | Amount | | :---------------------- | :------- | | Cash and Cash Equivalents | $528,329 | | Borrowing Capacity | $125,000 | | Total Liquidity | $653,329 | - No borrowings or letters of credit were outstanding on the Company's $125.0 million revolving credit facility as of March 31, 2025[22] Debt to Total Capitalization and Net Debt to Total Capitalization The company reported a debt to total capitalization ratio of 19.2% and a net debt to total capitalization ratio of (0.2)% as of March 31, 2025, indicating a strong financial position with cash exceeding debt Debt to Total Capitalization (As of March 31, 2025, in thousands): | Metric | Amount | | :-------------------------- | :------- | | Debt | $524,994 | | Total Capital | $2,214,828 | | Total Capitalization | $2,739,822 | | Debt to Total Capitalization | 19.2% | | Net Debt | $(3,335) | | Net Debt to Total Capitalization | (0.2)% | - Net debt to total capitalization is a non-GAAP financial measure used to understand the leverage employed in the Company's operations[23] Segment Results Overview of Segment Performance The Great Park segment was the primary driver of segment profit for the three months ended March 31, 2025, contributing significantly to total revenues and segment income, while Valencia and San Francisco segments reported losses Segment Performance (Three Months Ended March 31, 2025, in thousands): | Metric | Valencia | San Francisco | Great Park | Total Reportable Segments | | :-------------------------------- | :------- | :------------ | :--------- | :------------------------ | | Total Revenues | $432 | $174 | $297,954 | $298,560 | | Total Costs and Expenses | $4,783 | $1,163 | $83,895 | $89,841 | | Segment (Loss) Profit/Income Before Income Tax Provision | $(3,362) | $(974) | $215,752 | $211,416 | - The Gateway Commercial Venture's commercial operating assets were sold in December 2024, and its equity in earnings is now reported within the corporate and unallocated column[25] Reconciliation of Great Park Segment Results The reconciliation details how the Great Park segment's operating profit translates into the equity in earnings from the Great Park Venture, accounting for the management company's net income and basis differences Reconciliation of Great Park Segment Results (Three Months Ended March 31, 2025, in thousands): | Metric | Amount | | :-------------------------------- | :------- | | Segment Profit from Operations | $215,752 | | Less Net Income of Management Company Attributed to Great Park Segment | $9,490 | | Net Income of the Great Park Venture | $206,262 | | The Company's Share of Net Income of the Great Park Venture | $77,348 | | Basis Difference Amortization, Net | $(6,494) | | Equity in Earnings from the Great Park Venture | $70,854 | Other Information Conference Call Information Details for accessing the Five Point Holdings, LLC first quarter 2025 earnings conference call and its telephonic replay are provided, including dates, times, and access numbers - A live Internet audio webcast of the conference call was available on the Five Point website on Thursday, April 24, 2025, at 5:00 p.m. Eastern Time[13] - A telephonic replay was available until 11:59 p.m. Eastern Time on May 3, 2025, with passcode 13753453[13] Forward-Looking Statements This section serves as a cautionary note regarding forward-looking statements, emphasizing that they are subject to risks and uncertainties and are not guarantees of future performance. Investors are advised against undue reliance, and the company undertakes no obligation to update these statements - The press release contains forward-looking statements concerning expectations, beliefs, projections, plans, and strategies, identified by words like 'anticipate,' 'believe,' 'expect,' and 'intend'[15] - Forward-looking statements are subject to risks, trends, uncertainties, and factors beyond the company's control, detailed in SEC filings under 'Risk Factors'[15] - The company cautions against relying on these statements as they are not guarantees of future performance and undertakes no obligation to update them, except as required by law[15] Investor Relations and Media Contacts Contact information for investor relations and media inquiries is provided for Five Point Holdings, LLC - Investor Relations contact: Kim Tobler, 949-425-5211, Kim.Tobler@fivepoint.com[16] - Media contact: Eric Morgan, 949-349-1088, Eric.Morgan@fivepoint.com[16]