Five Point(FPH) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Highlights and CEO Commentary This section summarizes Q2 2025 highlights, including CEO commentary, key financial metrics, and operational achievements CEO Commentary 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] - Completed a significant land sale in the Great Park community[4] - The company maintained strong liquidity of $581.6 million at the end of Q2 2025[4] - 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] Key Financial and Operational Highlights 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] - Great Park builders sold 112 homes and Valencia builders sold 47 homes during the quarter[10] 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] 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 This section outlines Five Point's business model, detailing its master-planned communities, and addresses forward-looking statements About Five Point 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] - These communities are planned to include approximately 40,000 homes and 23 million square feet of commercial space[12] Forward-Looking Statements 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] - 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] - The company undertakes no obligation to update or revise any forward-looking statements, except as required by applicable law[13] Consolidated Financial Performance This section details the company's consolidated operating results, balance sheet, and liquidity and capital resources Consolidated Results of Operations 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][16] - Earnings from unconsolidated entities for Q2 2025 were $17.145 million, with Great Park Venture contributing $16.7 million[7][16] - Consolidated net income for Q2 2025 was $8.576 million, with net income attributable to the company at $3.32 million[9][16] Three Months Ended June 30, 2025 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] - Net income attributable to the company decreased from $14.722 million in Q2 2024 to $3.32 million in Q2 2025[16] Six Months Ended June 30, 2025 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] - 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] - 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] Consolidated Balance Sheets 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] - Cash and cash equivalents increased by $25.765 million as of June 30, 2025, compared to December 31, 2024[18] Liquidity and Capital Resources 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][20] - Liquidity consists of $456.6 million in cash and cash equivalents and $125 million available under an unsecured revolving credit facility[5][20] - No outstanding borrowings or letters of credit were on the revolving credit facility as of June 30, 2025[20] 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] Debt to Total Capitalization 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] Segment Results 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 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] Six Months Ended June 30, 2025 Segment Performance 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] Great Park Venture Reconciliation 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] - Equity in earnings of Great Park Venture for the six months ended June 30, 2025, was $87.546 million[26] Company Information This section provides details for the Q2 2025 earnings conference call and contact information for investor relations and media Conference Call Information 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] - Investors can listen to the live webcast via ir.fivepoint.com[11] - A telephone replay service will be available until 11:59 PM ET on August 2, 2025[11] Investor Relations 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] - Media Contact: Eric Morgan, Phone: 949-349-1088, Email: Eric.Morgan@fivepoint.com[14]