Five Point Holdings, LLC (FPH)

[Monksdream]

Five Point Holdings LLC NYSE: FPH

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Real Estate : Real Estate Management & Development | Small Cap ValueCompany profile
Five Point Holdings, LLC 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. The Company operates through four segments. Valencia segment includes operating results related to the Valencia community and agricultural operations in Los Angeles and Ventura Counties, California. San Francisco segment includes operating results for the Candlestick and The San Francisco Shipyard communities. Great Park segment includes operating results for the Great Park Neighborhoods community, as well as development management services provided by the management company for the Great Park Venture. Commercial segment includes the operating results of the Gateway Commercial Venture’s ownership in the Five Point Gateway Campus, as well as property management services.

[Enterprising Investor]

Five Point Holdings, LLC Reports Second Quarter 2021 Results (8/05/21)

Second Quarter 2021 Highlights

-Great Park Venture sold 774 homesites generating proceeds of $328.2 million.

-Received a total of $98.3 million in cash distributions and incentive compensation payments from the Great Park Venture.

-Builders started home sales at Valencia in the Company’s first phase of this community.

-Company maintains liquidity of $361.2 million at June 30, 2021.

-Maturity date of the Company’s $125 million unsecured revolving line of credit was extended by two years to April 2024.

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 second quarter 2021 results. Emile Haddad, Chairman and CEO, said, “We are pleased to report our results for the second quarter. The housing market continued its robust trajectory with strong demand against a limited supply of homesites in our markets. Following the sale of 774 homesites in the second quarter, the Great Park Venture made distributions, incentive compensation payments and participation payments totaling $295 million during the quarter, of which Five Point received $98.3 million. This is an important milestone for the Company since the priority distributions to the holders of the legacy interests have been satisfied. This latest distribution represents the commencement of distributions on Five Point’s 37.5% percentage interest in the Great Park Venture. In Valencia, ten of our first eighteen neighborhoods are open for sale and we are looking forward to welcoming our first homeowners to the community this fall.”

Second Quarter 2021 Consolidated Results

Liquidity and Capital Resources

As of June 30, 2021, total liquidity of $361.2 million was comprised of cash and cash equivalents totaling $236.5 million and borrowing availability of $124.7 million under our $125.0 million unsecured revolving credit facility. Total capital was $1.9 billion, reflecting $2.9 billion in assets and $1.1 billion in liabilities and redeemable noncontrolling interests.

Results of Operations for the Three Months Ended June 30, 2021

Revenues. Revenues of $8.3 million for the three months ended June 30, 2021 were primarily generated from management services.

Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $12.1 million for the three months ended June 30, 2021, comprised of $11.9 million in earnings from our 37.5% percentage interest in the Great Park Venture and earnings of $0.1 million from our 75% interest in the Gateway Commercial Venture.

During the three months ended June 30, 2021, the Great Park Venture sold 774 homesites on approximately 58 acres of land at the Great Park Neighborhoods for a base price of $328.2 million in addition to recognizing $7.6 million in variable marketing fees expected to be received when homes are sold to homebuyers. After completing the land sales, the Great Park Venture made aggregate distributions to its members of $255.3 million, of which we received $77.6 million for our 37.5% percentage interest and an indirect legacy percentage interest we held. With these distributions, the Great Park Venture has fully satisfied the $476.0 million priority legacy distribution rights and reduced the remaining maximum participating legacy distribution rights to $82.7 million. The remaining $82.7 million legacy interest will be paid on a pro rata basis, with approximately 10% of future distributions paid to the holders of legacy interests and approximately 90% of such distributions paid to the holders of the percentage interests, until such time as the remaining balance has been fully paid.

Selling, general, and administrative. Selling, general, and administrative expenses were $19.2 million for the three months ended June 30, 2021.

Net loss. Consolidated net loss for the quarter was $4.9 million. Net loss attributable to noncontrolling interests totaled $2.6 million, resulting in net loss attributable to the Company of $2.3 million. Net loss attributable to noncontrolling interests represents the portion of loss 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 our Class A common shares on a one-for-one basis or, at our election, cash. In connection with any redemption or exchange, our ownership of our operating subsidiaries will increase and reduce the amount of income allocated to noncontrolling interests.

Conference Call Information

In conjunction with this release, Five Point will host a conference call on Thursday, August 5, 2021 at 5:00 p.m. Eastern Time. Emile Haddad, President and Chief Executive Officer, and Erik Higgins, Vice President and Chief Financial Officer, will host the call. 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 two 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 7892761. The telephonic replay will be available until 11:59 p.m. Eastern Time on August 19, 2021.

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® (formerly known as Newhall Ranch®) in Los Angeles County, and Candlestick® and The San Francisco Shipyard® in the City of San Francisco. These communities are designed to include approximately 40,000 residential homes and approximately 23 million square feet of commercial space.

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https://www.businesswire.com/news/home/20210805006096/en/Five-Point-Holdings-LLC-Reports-Second-Quarter-2021-Results

[Enterprising Investor]

Five Point Holdings, LLC Reports Fourth Quarter and Year-End 2020 Results (3/16/21)

Fourth Quarter 2020 Highlights

Increased cash position by approximately $28 million, providing liquidity of $422.8 million at December 31, 2020.
Sold 487 homesites at Valencia in the fourth quarter of 2020 and closed on 442 of these homesites, generating proceeds from the closed homesites of approximately $102 million.
Contributed $4.2 million for a 10% interest in a joint venture providing land banking opportunities to Valencia guest builders.
Five Point Holdings, LLC (“Five Point” or the “Company”) (NYSE:FPH), an owner and developer of large mixed-use, master-planned communities in California, today reported its fourth quarter 2020 results. Emile Haddad, Chairman and CEO, said, “We are very grateful to end a very unusual year with the results we are presenting today. Our focus shifted a year ago to strengthening our balance sheet, preserving the value of our irreplaceable assets, protecting the well being of our associates, and helping our communities. We are proud that we accomplished our goals. We have already kicked off the new year with a lot of momentum driven by the strength of the housing market and the migration of homebuyers to the type of communities we build.”

Fourth Quarter 2020 Consolidated Results

Liquidity and Capital Resources

As of December 31, 2020, total liquidity of $422.8 million was comprised of cash and cash equivalents totaling $298.1 million and borrowing availability of $124.7 million under our $125.0 million unsecured revolving credit facility. Total capital was $1.9 billion, reflecting $3.0 billion in assets and $1.1 billion in liabilities and redeemable noncontrolling interests.

Results of Operations for the Three Months Ended December 31, 2020

Revenues. Revenues of $111.7 million for the three months ended December 31, 2020 primarily consisted of $105.5 million in revenue recognized from land sales at our Valencia segment.

Equity in loss from unconsolidated entities. Equity in loss from unconsolidated entities was $3.1 million for the three months ended December 31, 2020, comprised of a $1.3 million loss from our 37.5% percentage interest in the Great Park Venture, loss of $0.2 million from our 75% interest in the Gateway Commercial Venture and $1.6 million loss from our 10% interest in the Valencia Landbank Venture as a result of intra-entity profit elimination due to the Valencia Landbank Venture purchasing homesites at Valencia.

Selling, general, and administrative. Selling, general, and administrative expenses were $24.9 million for the three months ended December 31, 2020.

Net income. Consolidated net income for the quarter was $3.7 million. Income before income tax provision was $5.4 million with income attributable to noncontrolling interests totaling $2.9 million. Net income attributable to the Company was $0.8 million after recognition of an income tax provision of $1.7 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 our Class A common shares on a one-for-one basis or, at our election, cash. In connection with any redemption or exchange, our ownership of our operating subsidiaries will increase and reduce the amount of income allocated to noncontrolling interests.

Segment Results

Valencia Segment (formerly Newhall). Total segment revenues were $106.0 million for the fourth quarter of 2020. Revenues were mainly attributable to the sale of land entitled for 442 homesites on approximately 45 acres in Valencia. Initial gross proceeds from the sale were $102.2 million, representing the base purchase price. Cost of land sales was $73.9 million, or 70.0% of total land sales and land sales-related party revenues for the fourth quarter. In the fourth quarter, 210 of the homesites sold were purchased by the Valencia Landbank Venture, in which we own a 10% equity interest. Revenues associated with these closings are reported as land sales-related party. When we sell land to the Valencia Landbank Venture, we eliminate our pro-rata share of the intra-entity profits generated from the sale through earnings (loss) from unconsolidated entities until the land is sold by the Valencia Landbank Venture to third party homebuilders. Selling, general, and administrative expenses were $2.4 million for the three months ended December 31, 2020.

San Francisco Segment. Selling, general, and administrative expenses were $3.1 million for the three months ended December 31, 2020.

Great Park Segment. The Great Park segment’s net income for the quarter was $0.4 million, which included net income of $1.6 million from management services and a net loss of $1.2 million attributed to the Great Park Venture. We do not include the Great Park Venture as a consolidated subsidiary in our consolidated financial statements but rather account for it as an equity method investee. After adjusting to account for a difference in investment basis, the Company’s equity in loss from the Great Park Venture was $1.3 million for the three months ended December 31, 2020.

Commercial Segment. Segment net loss was approximately $0.1 million, which included net income of $0.1 million from management services and a net loss of $0.2 million attributed to the Gateway Commercial Venture. We do not include the Gateway Commercial Venture as a consolidated subsidiary in our consolidated financial statements but rather account for it as an equity method investee. Our share of equity in loss from the Gateway Commercial Venture totaled $0.2 million for the three months ended December 31, 2020.

Conference Call Information

In conjunction with this release, Five Point will host a conference call on Wednesday, March 17, 2021 at 2:00 pm Eastern Time. Emile Haddad, President and Chief Executive Officer, and Erik Higgins, Vice President and Chief Financial Officer, will host the call. 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 two 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 1398225. The telephonic replay will be available until 11:59 p.m. Eastern Time on March 31, 2021.

About Five Point

Five Point, headquartered in Irvine, California, designs and develops large mixed-use, master-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® (formerly known as Newhall Ranch®) in Los Angeles County, and Candlestick® and The San Francisco Shipyard® in the City of San Francisco. These communities are designed to include approximately 40,000 residential homes and approximately 23 million square feet of commercial space.

https://www.businesswire.com/news/home/20210316006070/en/

[Enterprising Investor]

Five Point Holdings, LLC Announces Sales of Homesites at Valencia in Los Angeles County (1/11/21)

IRVINE, Calif.--(BUSINESS WIRE)--Five Point Holdings, LLC (“Five Point” or the “Company”) (NYSE:FPH) announced today the sale of additional homesites at its Valencia community, previously known as Newhall Ranch, and the line-up of homebuilders for the first phase of the community.

In the fourth quarter of 2020, the Company sold 487 homesites for a gross purchase price of $115 million. Together with the sales completed since Q4 2019, the first phase will include 1,268 homesites in 18 neighborhoods, with homes ranging from 775 to 3,680 square feet in size that will serve a diverse pool of buyers. The builders in the first phase of Valencia are KB Home, Lennar, Richmond American, Toll Brothers and TRI Pointe Group.

“We are very excited to welcome our builder partners to Valencia. The enthusiasm from the builders validates our vision and together we will build yet another nationally celebrated community,” said Emile Haddad, Chairman and CEO of Five Point.

The long anticipated community will be the largest provider of new homes in Los Angeles County, with plans for approximately 21,000 homes, 11.5 million square feet of commercial space, and 10,000 acres of open space. The first village includes 1.5 million square feet of this planned commercial space, which the Company intends to develop. The space in this phase is expected to target healthcare providers, life science companies and life-style focused uses.

Haddad added, “We are proud of our long-standing partnership with the County of Los Angeles. This partnership is now bringing forward a community that will be a model of balance between social equity and environmental justice. It will deliver a wide range of housing opportunities in one of the most constrained housing markets in the country and is being developed as the largest net zero greenhouse gas emission community of its kind in America.”

Kathryn Barger, the Supervisor of Los Angeles County’s 5th Supervisorial District – the county’s largest District and the one in which Valencia is located – said, “In the midst of a generational housing crisis, this critically needed housing is a welcomed addition to the region. The Five Point team’s thoughtful innovation in the development of these new communities will be a model for the future. I am grateful for this partnership of nearly two decades.”

The financial results of these transactions will be included in the Company’s next earnings report.

About Five Point

Five Point, headquartered in Irvine, California, designs and develops large mixed-use, master-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® (formerly known as Newhall Ranch®) in Los Angeles County, and Candlestick® and The San Francisco Shipyard® in the City of San Francisco. These communities are designed to include approximately 40,000 residential homes and approximately 23 million square feet of commercial space.

https://www.businesswire.com/news/home/20210111005996/en/Five-Point-Holdings-LLC-Announces-Sales-of-Homesites-at-Valencia-in-Los-Angeles-County

[Enterprising Investor]

Five Point Holdings, LLC Announces the Sale of First Homesites at New Community in Los Angeles County (1/13/20)

Five Point Holdings, LLC (“Five Point” or the “Company”) (NYSE:FPH), in a major step forward to opening its newest master-planned community in Los Angeles County, announced the sale of 781 homesites at Valencia (formerly Newhall Ranch) in the fourth quarter of 2019. The Company closed on 711 of these homesites, and the balance is anticipated to close in the first half of this year. The proceeds from the closed homesites were approximately $135 million.

“This is a milestone for the Company, as we have been waiting for this day for a long time,” said Emile Haddad, Chairman and CEO of Five Point. “These are the first deliveries of the approximately 21,000 homesites anticipated to be delivered next in Valencia, building on the reputation of one of the premier master-planned communities in the country that already has over 60,000 existing residents and 60,000 permanent jobs.”

“Los Angeles is one of the most constrained housing markets in the country,” he said, “and we are excited to be working with the County of Los Angeles to build this new community within Valencia. It will ultimately include the lifestyle elements and amenities that we believe are essential to creating a fully integrated and multi-generational community, while helping mitigate the County’s growing need for additional housing.”

This new community is anticipated to provide a wide range of homes, high quality public education, job/housing balance with approximately 11.5 million square feet of commercial space, including healthcare and lifestyle-focused uses among other amenities, and 10,000 acres of open space. In addition, this community is designed to be the first net zero greenhouse gas community of its size in America.

The financial results of this transaction will be included in the Company’s next earnings report.

About Five Point

Five Point, headquartered in Irvine, California, designs and develops large mixed-use, master-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® (formerly known as Newhall Ranch®) in Los Angeles County, and Candlestick® and The San Francisco Shipyard® in the City of San Francisco. These communities are designed to include approximately 40,000 residential homes and approximately 23 million square feet of commercial space.

https://www.businesswire.com/news/home/20200113005901/en/

[Enterprising Investor]

Five Point Announces Pricing and Upsizing of an Additional $125 Million of 7.875% Senior Notes due 2025 by Five Point Operating Company, LP (7/23/19)

IRVINE, Calif.--(BUSINESS WIRE)--Five Point Holdings, LLC (“Five Point”) (NYSE: FPH) today announced that Five Point Operating Company, LP, through which Five Point owns all of its assets and conducts all of its operations (the “issuer”), and Five Point Capital Corp., a wholly owned subsidiary of the issuer (the “co-issuer” and together with the issuer, the “issuers”), priced an additional $125 million aggregate principal amount, upsized from the previously announced amount of $100 million, of their 7.875% Senior Notes due 2025 (the “new notes”). The new notes will be issued at par plus accrued interest from May 15, 2019. The new notes will constitute a further issuance of the issuers’ existing 7.875% Senior Notes due 2025 issued in November 2017 in an aggregate principal amount of $500 million.

The issuance of the new notes is expected to close on or about July 26, 2019, subject to customary closing conditions. The issuer intends to use proceeds of the new notes for general corporate purposes, which may include pursuing commercial development opportunities at its communities.

The new notes and related guarantees have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction. The new notes may not be offered or sold within the United States or to U.S. persons, except to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A and to certain persons in offshore transactions in reliance on Regulation S.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, any securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of any securities, in any jurisdiction in which such offer, solicitation or sale is unlawful.

https://www.businesswire.com/news/home/20190723005997/en/Point-Announces-Pricing-Upsizing-Additional-125-Million

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[Enterprising Investor]

Five Point Announces Proposed Offering by Five Point Operating Company, LP of an Additional $100 Million of 7.875% Senior Notes due 2025 (7/23/19)

IRVINE, Calif.--(BUSINESS WIRE)--Five Point Holdings, LLC (“Five Point”) (NYSE: FPH) today announced that Five Point Operating Company, LP, through which Five Point owns all of its assets and conducts all of its operations (the “issuer”), and Five Point Capital Corp., a wholly owned subsidiary of the issuer (the “co-issuer” and together with the issuer, the “issuers”), plan to offer, subject to market and other conditions, an additional $100 million aggregate principal amount of their 7.875% Senior Notes due 2025 (the “new notes”). The new notes will constitute a further issuance of the issuers’ existing 7.875% Senior Notes due 2025 issued in November 2017 in an aggregate principal amount of $500 million.

The issuer intends to use proceeds of the new notes for general corporate purposes, which may include pursuing commercial investment opportunities at its communities.

The new notes and related guarantees have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction. The new notes may not be offered or sold within the United States or to U.S. persons, except to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A and to certain persons in offshore transactions in reliance on Regulation S.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, any securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of any securities, in any jurisdiction in which such offer, solicitation or sale is unlawful.

https://www.businesswire.com/news/home/20190723005533/en/

[Enterprising Investor]

Long Pond Capital, LP beneficially owns 5,661,780 shares (12/31/18)

Controls 8.5 percent.

https://www.sec.gov/Archives/edgar/data/1499066/000117266119000486/longpond-fph123118.htm

[Enterprising Investor]

Third Avenue Management beneficially owns 11,446,791 shares (12/31/18)

Controls 17.21 percent.

Third Avenue Real Estate Value Fund
7,285,223

Third Avenue Real Estate Value Fund, a fund of GemCap Investment Funds (Ireland) plc
730,313

Third Avenue Small Cap Value Fund
632,534

Third Avenue Value Fund
2,375,753

Third Avenue Value Portfolio of the Third Avenue Variable Series Trust
176,550

Various separately managed accounts
246,418

https://www.sec.gov/Archives/edgar/data/1099281/000109928119000003/FivePointYE12312018.htm

[Enterprising Investor]

Third Avenue Management beneficially owns 11,298,274 shares (10/31/18)

Controls 16.99 percent.

Third Avenue Real Estate Value Fund
7,285,223

Third Avenue Real Estate Value Fund, a fund of GemCap Investment Funds (Ireland) plc
644,383

Third Avenue Small Cap Value Fund
2,375,753

Third Avenue Value Portfolio of the Third Avenue Variable Series Trust
176,550

Various separately managed accounts
275,192

https://www.sec.gov/Archives/edgar/data/1099281/000109928118000018/FivePoint10312018.htm

[Enterprising Investor]

Third Avenue Real Estate Fund stated in its 2Q report that FPH was valued at less than $20,000 per residential lot.

FPH closed at $11.25 at 6/29/18.

https://thirdave.com/wp-content/uploads/2018/07/TAREX-2Q18-Letter.pdf