Five Point(US:FPH)2025-04-25 01:04PART I. FINANCIAL INFORMATION This section presents the company's unaudited financial statements and management's analysis for the quarter ended March 31, 2025 Financial Statements 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 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, LP31 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 quarter5054 - 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 consolidation101102103 - 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 defenses96 Management's Discussion and Analysis of Financial Condition and Results of Operations 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 Venture129 - 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 company130 - 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 facility129 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 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 2021131 - 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 project149152 - 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 period157 - 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 compensation160 Liquidity and Capital Resources 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 facility165 - 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 sales167 - 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 obligations170171 - 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 2028173 Quantitative and Qualitative Disclosures About Market Risk 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 changes187 - The company has not entered into any transactions using derivative financial instruments or derivative commodity instruments187 Controls and Procedures 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 effective188 - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls189 PART II. OTHER INFORMATION This section covers various other required disclosures, including legal proceedings, risk factors, equity sales, defaults, and exhibits Legal Proceedings 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 statements191 Risk Factors 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, 2024192 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities during the period - None193 Defaults Upon Senior Securities The company reported no defaults upon senior securities during the period - None193 Mine Safety Disclosures This item is not applicable to the company - Not Applicable193 Other Information The company reported no other information required to be disclosed under this item - None193 Exhibits 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 exhibits193