Five Point Holdings, LLC Reports Fourth Quarter and Year-End 2024 Results

IRVINE, Calif.--(BUSINESS WIRE)--Five Point Holdings, LLC ("Five Point" or the "Company") (NYSE:FPH), an owner and developer of large mixed-use planned communities in California, today reported its fourth quarter and year-end 2024 results.

Dan Hedigan, Chief Executive Officer, said, "I am pleased to report that we finished 2024 strong, with consolidated net income for the quarter of $121.0 million, giving us consolidated net income for the year of $177.6 million and total cash and cash equivalents of $430.9 million and total liquidity of $555.9 million as of year-end. This is our seventh consecutive quarter reporting net income, and the net income numbers for the quarter and the full year represent new high-water marks for the Company.

During the quarter, we saw multiple significant residential land sales close at both our Valencia and Great Park Neighborhoods communities, and our Gateway Commercial Venture sold its remaining interests in the Five Point Gateway Campus to City of Hope. Although the interest rate environment is still uncertain, homebuilder demand for our land remains strong. Successful execution on our key operating priorities over the past few years has positioned us to seek out new growth opportunities, which will be an important initiative for the Company in 2025. Based on our current expectations, we believe that we will see consolidated annual net income for 2025 exceed 2024, with annual earnings growth of approximately 10%, bringing us close to $200 million in net income."

Consolidated Results

Liquidity and Capital Resources

As of December 31, 2024, total liquidity of $555.9 million was comprised of cash and cash equivalents totaling $430.9 million and borrowing availability of $125.0 million under our unsecured revolving credit facility. Total capital was $2.2 billion, reflecting $3.1 billion in assets and $0.9 billion in liabilities and redeemable noncontrolling interests.

Results of Operations for the Three Months Ended December 31, 2024

Revenues. Revenues of $159.8 million for the three months ended December 31, 2024 were primarily generated from land sales at our Valencia segment. At Valencia we closed the sale of land entitled for an aggregate of 493 homesites on 54.4 acres. The fixed base purchase price of $137.9 million was paid at closing.

Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $87.5 million for the three months ended December 31, 2024. The Great Park Venture generated net income of $217.7 million during the three months ended December 31, 2024, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $74.6 million. Additionally, we recognized $13.0 million in earnings from our 75% interest in the Gateway Commercial Venture.

During the three months ended December 31, 2024, the Great Park Venture sold 372 homesites on 32.2 acres of land at the Great Park Neighborhoods for an aggregate purchase price of $309.3 million. The Great Park Venture made aggregate distributions of $255.2 million to holders of Percentage Interests during the three months ended December 31, 2024. We received $95.7 million for our 37.5% Percentage Interest.

During the three months ended December 31, 2024, the Gateway Commercial Venture sold its remaining interests in the Five Point Gateway Campus, which included an approximately 189,000 square foot office building and approximately 50 acres of commercial land with additional development rights at the Five Point Gateway Campus, for a purchase price of $88.5 million. The purchase price consisted of $45.0 million in cash paid at closing and a $43.5 million note that matures in December 2026. After retiring the Gateway Commercial Venture's outstanding debt, the Gateway Commercial Venture made distributions to its members, of which we received $17.2 million.

Upon completion of the asset sale, the Company's property management agreement with the Gateway Commercial Venture was terminated and the Company is no longer managing any commercial operations at the Five Point Gateway Campus. Although the Gateway Commercial Venture no longer has any commercial operations, the Company's investment in the Gateway Commercial Venture will remain outstanding through the maturity date of the note that was received as consideration on the sale.

Selling, general, and administrative. Selling, general, and administrative expenses were $14.2 million for the three months ended December 31, 2024.

Net income. Consolidated net income for the quarter was $121.0 million. Net income attributable to noncontrolling interests totaled $74.5 million, resulting in net income attributable to the Company of $46.5 million. Net income attributable to noncontrolling interests represents the portion of income allocated to related party partners and members that hold units of the operating company and the San Francisco Venture. Holders of units of the operating company and the San Francisco Venture can redeem their interests for either, at our election, our Class A common shares on a one-for-one basis or cash. In connection with any redemption or exchange, our ownership of our operating subsidiaries will increase thereby reducing the amount of income allocated to noncontrolling interests in subsequent periods.

Results of Operations for the Twelve Months Ended December 31, 2024

Revenues. Revenues of $237.9 million for the twelve months ended December 31, 2024 were primarily generated from land sales at our Valencia segment and from management services. At Valencia we closed the sale of land entitled for an aggregate of 493 homesites on 54.4 acres. The fixed base purchase price of $137.9 million was paid at closing.

Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $132.6 million for the twelve months ended December 31, 2024. The Great Park Venture generated net income of $349.2 million during the twelve months ended December 31, 2024, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $119.8 million. Additionally, we recognized $12.3 million in earnings from our 75% interest in the Gateway Commercial Venture generated from a gain on the sale of its assets at the Five Point Gateway Campus as described above.

During the twelve months ended December 31, 2024, the Great Park Venture closed two commercial land sales planned for retail uses totaling 12.8 acres for an aggregate purchase price of $25.4 million and sold 559 homesites on 56.1 acres of land at the Great Park Neighborhoods for an aggregate purchase price of $480.0 million. The Great Park Venture made aggregate distributions of $18.1 million to holders of Legacy Interests and $485.1 million to holders of Percentage Interests during the twelve months ended December 31, 2024. We received $181.9 million for our 37.5% Percentage Interest.

Selling, general, and administrative. Selling, general, and administrative expenses were $51.2 million for the twelve months ended December 31, 2024.

Net income. Consolidated net income for the year was $177.6 million. Net income attributable to noncontrolling interests totaled $109.3 million, resulting in net income attributable to the Company of $68.3 million.

Conference Call Information

In conjunction with this release, Five Point will host a conference call on Thursday, January 23, 2025 at 5:00 p.m. Eastern Time. Interested investors and other parties can listen to a live Internet audio webcast of the conference call that will be available on the Five Point website at ir.fivepoint.com. The conference call can also be accessed by dialing [phone] (domestic) or [phone] (international). A telephonic replay will be available starting approximately three hours after the end of the call by dialing [phone], or for international callers, [phone]. The passcode for the live call and the replay is 13751213. The telephonic replay will be available until 11:59 p.m. Eastern Time on February 1, 2025.

About Five Point

Five Point, headquartered in Irvine, California, designs and develops large mixed-use planned communities in Orange County, Los Angeles County, and San Francisco County that combine residential, commercial, retail, educational, and recreational elements with public amenities, including civic areas for parks and open space. Five Point's communities include the Great Park Neighborhoods^® in Irvine, Valencia^® in Los Angeles County, and Candlestick^® and The San Francisco Shipyard^® in the City of San Francisco. These communities are designed to include up to approximately 40,000 residential homes and up to approximately 23 million square feet of commercial space.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. When used, the words "anticipate," "believe," "expect," "intend," "may," "might," "plan," "estimate," "project," "should," "will," "would," "result" and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. Forward-looking statements include, among others, statements that refer to: our expectations of our future home sales and/or builder sales; the impact of inflation and interest rates; our future revenues, costs and financial performance, including with respect to cash generation and profitability; and future demographics and market conditions, including housing supply levels, in the areas where our communities are located. We caution you that any forward-looking statements included in this press release are based on our current views and information currently available to us. Forward-looking statements are subject to risks, trends, uncertainties and factors that are beyond our control. Some of these risks and uncertainties are described in more detail in our filings with the SEC, including our Annual Report on Form 10-K, under the heading "Risk Factors." Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. They are based on estimates and assumptions only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law.

FIVE POINT HOLDINGS, LLC CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (Unaudited)
	Three Months Ended December 31,								Twelve Months Ended December 31,
		2024				2023				2024				2023
REVENUES:
Land sales	$	137,883			$	100,111			$	139,097			$	160,796
Land sales-related party		-				-				-				595
Management services-related party		21,369				18,109				96,404				47,621
Operating properties		534				539				2,425				2,720
Total revenues		159,786				118,759				237,926				211,732
COSTS AND EXPENSES:
Land sales		90,109				66,684				90,109				105,651
Management services		4,385				7,751				23,852				22,170
Operating properties		1,035				1,846				5,134				6,167
Selling, general, and administrative		14,220				13,095				51,233				51,495
Total costs and expenses		109,749				89,376				170,328				185,483
OTHER INCOME (EXPENSE):
Interest income		2,283				2,688				10,858				7,230
Miscellaneous		(120	)			(1,809	)			(5,977	)			(776	)
Total other income		2,163				879				4,881				6,454
EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES		87,546				24,041				132,617				76,595
INCOME BEFORE INCOME TAX PROVISION		139,746				54,303				205,096				109,298
INCOME TAX (PROVISION) BENEFIT		(18,757	)			4,434				(27,462	)			4,418
NET INCOME		120,989				58,737				177,634				113,716
LESS NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		74,496				28,981				109,337				58,322
NET INCOME ATTRIBUTABLE TO THE COMPANY	$	46,493			$	29,756			$	68,297			$	55,394
NET INCOME ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE
Basic	$	0.67			$	0.43			$	0.98			$	0.80
Diluted	$	0.65			$	0.39			$	0.96			$	0.76
WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING
Basic		69,318,760				68,919,591				69,224,327				68,826,340
Diluted		147,357,691				145,331,135				146,944,944				145,131,125
NET INCOME ATTRIBUTABLE TO THE COMPANY PER CLASS B SHARE
Basic and diluted	$	0.00			$	0.00			$	0.00			$	0.00
WEIGHTED AVERAGE CLASS B SHARES OUTSTANDING
Basic and diluted		79,233,544				79,233,544				79,233,544				79,233,544

FIVE POINT HOLDINGS, LLC CONSOLIDATED BALANCE SHEETS (In thousands, except shares) (Unaudited)
	December 31, 2024				December 31, 2023
ASSETS
INVENTORIES	$	2,298,080			$	2,213,479
INVESTMENT IN UNCONSOLIDATED ENTITIES		185,324				252,816
PROPERTIES AND EQUIPMENT, NET		29,487				29,145
INTANGIBLE ASSET, NET-RELATED PARTY		9,037				25,270
CASH AND CASH EQUIVALENTS		430,875				353,801
RESTRICTED CASH AND CERTIFICATES OF DEPOSIT		992				992
RELATED PARTY ASSETS		101,670				83,970
OTHER ASSETS		20,952				9,815
TOTAL	$	3,076,417			$	2,969,288
LIABILITIES AND CAPITAL
LIABILITIES:
Notes payable, net	$	525,737			$	622,186
Accounts payable and other liabilities		100,292				81,649
Related party liabilities		63,297				78,074
Deferred income tax liability, net		33,570				7,067
Payable pursuant to tax receivable agreement		173,424				173,208
Total liabilities		896,320				962,184
REDEEMABLE NONCONTROLLING INTEREST		25,000				25,000
CAPITAL:
Class A common shares; No par value; Issued and outstanding: December 31, 2024-69,369,234 shares; December 31, 2023-69,199,938 shares
Class B common shares; No par value; Issued and outstanding: December 31, 2024-79,233,544 shares; December 31, 2023-79,233,544 shares
Contributed capital		593,827				591,606
Retained earnings		157,077				88,780
Accumulated other comprehensive loss		(1,468	)			(2,332	)
Total members' capital		749,436				678,054
Noncontrolling interests		1,405,661				1,304,050
Total capital		2,155,097				1,982,104
TOTAL	$	3,076,417			$	2,969,288

FIVE POINT HOLDINGS, LLC SUPPLEMENTAL DATA (In thousands) (Unaudited)
Liquidity
	December 31, 2024
Cash and cash equivalents	$	430,875
Borrowing capacity(1)		125,000
Total liquidity	$	555,875

(1)	As of December 31, 2024, no borrowings or letters of credit were outstanding on the Company's $125.0 million revolving credit facility.

Debt to Total Capitalization and Net Debt to Total Capitalization
	December 31, 2024
Debt(1)	$	524,994
Total capital		2,155,097
Total capitalization	$	2,680,091
Debt to total capitalization		19.6	%
Debt(1)	$	524,994
Less: Cash and cash equivalents		430,875
Net debt		94,119
Total capital		2,155,097
Total net capitalization	$	2,249,216
Net debt to total capitalization(2)		4.2	%

(1)

For purposes of this calculation, debt is the amount due on the Company's notes payable before offsetting for capitalized deferred financing costs.

(2)

Net debt to total capitalization is a non-GAAP financial measure defined as net debt (debt less cash and cash equivalents) divided by total net capitalization (net debt plus total capital). The Company believes the ratio of net debt to total capitalization is a relevant and a useful financial measure to investors in understanding the leverage employed in the Company's operations. However, because net debt to total capitalization is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the Company's GAAP results.

Segment Results

The following tables reconcile the results of operations of our segments to our consolidated results for the three and twelve months ended December 31, 2024 (in thousands):

	Three Months Ended December 31, 2024
	Valencia				San Francisco				Great Park			Total reportable segments				Corporate and unallocated				Total under management				Removal of unconsolidated entities(1)				Total consolidated
REVENUES:
Land sales	$	137,883			$	-			$	316,423		$	454,306			$	-			$	454,306			$	(316,423	)		$	137,883
Land sales-related party		-				-				2,790			2,790				-				2,790				(2,790	)			-
Management services-related party(2)		-				-				21,276			21,276				93				21,369				-				21,369
Operating properties		363				171				-			534				-				534				-				534
Total revenues		138,246				171				340,489			478,906				93				478,999				(319,213	)			159,786
COSTS AND EXPENSES:
Land sales		90,109				-				77,814			167,923				-				167,923				(77,814	)			90,109
Management services(2)		-				-				4,385			4,385				-				4,385				-				4,385
Operating properties		1,035				-				-			1,035				-				1,035				-				1,035
Selling, general, and administrative		2,240				1,222				2,325			5,787				10,758				16,545				(2,325	)			14,220
Management fees-related party		-				-				22,512			22,512				-				22,512				(22,512	)			-
Total costs and expenses		93,384				1,222				107,036			201,642				10,758				212,400				(102,651	)			109,749
OTHER (EXPENSE) INCOME:
Interest income		-				18				1,159			1,177				2,265				3,442				(1,159	)			2,283
Miscellaneous		(120	)			-				-			(120	)			-				(120	)			-				(120	)
Total other (expense) income		(120	)			18				1,159			1,057				2,265				3,322				(1,159	)			2,163
EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES		13				-				-			13				12,964				12,977				74,569				87,546
SEGMENT PROFIT (LOSS)/INCOME BEFORE INCOME TAX PROVISION		44,755				(1,033	)			234,612			278,334				4,564				282,898				(143,152	)			139,746
INCOME TAX PROVISION		-				-				-			-				(18,757	)			(18,757	)			-				(18,757	)
SEGMENT PROFIT (LOSS)/NET INCOME	$	44,755			$	(1,033	)		$	234,612		$	278,334			$	(14,193	)		$	264,141			$	(143,152	)		$	120,989

(1)	Represents the removal of the Great Park Venture operating results, which are included in the Great Park segment operating results at 100% of the venture's historical basis but are not included in our consolidated results as we account for our investment in the venture using the equity method of accounting.
	After the sale of the Gateway Commercial Venture's commercial operating assets in December 2024, the Company's commercial segment is no longer operating. The Company has reported the equity in earnings from the Company's investment in the Gateway Commercial Venture within the corporate and unallocated column in the table above.
(2)	The amounts for the Great Park segment represent the revenues and expenses attributable to the management company for providing services to the Great Park Venture as applicable.

	Twelve Months Ended December 31, 2024
	Valencia				San Francisco				Great Park			Total reportable segments				Corporate and unallocated				Total under management				Removal of unconsolidated entities(1)				Total consolidated
REVENUES:
Land sales	$	139,097			$	-			$	590,170		$	729,267			$	-			$	729,267			$	(590,170	)		$	139,097
Land sales-related party		-				-				22,636			22,636				-				22,636				(22,636	)			-
Management services-related party(2)		-				-				95,955			95,955				449				96,404				-				96,404
Operating properties		1,747				678				-			2,425				-				2,425				-				2,425
Total revenues		140,844				678				708,761			850,283				449				850,732				(612,806	)			237,926
COSTS AND EXPENSES:
Land sales		90,109				-				144,876			234,985				-				234,985				(144,876	)			90,109
Management services(2)		-				-				23,852			23,852				-				23,852				-				23,852
Operating properties		5,134				-				-			5,134				-				5,134				-				5,134
Selling, general, and administrative		10,356				4,883				11,033			26,272				35,994				62,266				(11,033	)			51,233
Management fees-related party		-				-				113,934			113,934				-				113,934				(113,934	)			-
Total costs and expenses		105,599				4,883				293,695			404,177				35,994				440,171				(269,843	)			170,328
OTHER (EXPENSE) INCOME:
Interest income		-				69				6,221			6,290				10,789				17,079				(6,221	)			10,858
Miscellaneous		(49	)			-				-			(49	)			(5,928	)			(5,977	)			-				(5,977	)
Total other (expense) income		(49	)			69				6,221			6,241				4,861				11,102				(6,221	)			4,881
EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES		483				-				-			483				12,347				12,830				119,787				132,617
SEGMENT PROFIT (LOSS)/INCOME BEFORE INCOME TAX PROVISION		35,679				(4,136	)			421,287			452,830				(18,337	)			434,493				(229,397	)			205,096
INCOME TAX PROVISION		-				-				-			-				(27,462	)			(27,462	)			-				(27,462	)
SEGMENT PROFIT (LOSS)/NET INCOME	$	35,679			$	(4,136	)		$	421,287		$	452,830			$	(45,799	)		$	407,031			$	(229,397	)		$	177,634

(1)	Represents the removal of the Great Park Venture operating results, which are included in the Great Park segment operating results at 100% of the venture's historical basis but are not included in our consolidated results as we account for our investment in the venture using the equity method of accounting.
	After the sale of the Gateway Commercial Venture's commercial operating assets in December 2024, the Company's commercial segment is no longer operating. The Company has recast the segment presentation for the full year to report the equity in earnings from the Company's investment in the Gateway Commercial Venture within the corporate and unallocated column in the table above.
(2)	The amounts for the Great Park segment represent the revenues and expenses attributable to the management company for providing services to the Great Park Venture as applicable.

The table below reconciles the Great Park segment results to the equity in earnings from our investment in the Great Park Venture that is reflected in the consolidated statements of operations for the three and twelve months ended December 31, 2024 (in thousands):

	Three Months Ended December 31, 2024				Twelve Months Ended December 31, 2024
Segment profit from operations	$	234,612			$	421,287
Less net income of management company attributed to the Great Park segment		16,891				72,103
Net income of the Great Park Venture		217,721				349,184
The Company's share of net income of the Great Park Venture		81,645				130,944
Basis difference amortization, net		(7,076	)			(11,157	)
Equity in earnings from the Great Park Venture	$	74,569			$	119,787

Contacts

Investor Relations:
Kim Tobler, 949-425-5211
[e-mail]
or
Media:
Eric Morgan, 949-349-1088
[e-mail]