Five Point Holdings, LLC Reports Third Quarter 2024 Results

Third Quarter 2024 Highlights

  • Great Park Venture closed two retail use commercial land sales totaling 12.8 acres for an aggregate purchase price of $25.4 million.
  • Great Park Venture distributions and incentive compensation payments to the Company totaled $49.4 million.
  • Great Park builder sales of 166 homes during the quarter.
  • Valencia builder sales of 89 homes during the quarter.
  • Renewed the development management agreement with Great Park Venture through December 31, 2026.
  • Consolidated revenues of $17.0 million; consolidated net income of $12.3 million.
  • Cash and cash equivalents of $224.5 million as of September 30, 2024.
  • Debt to total capitalization ratio of 20.5% and liquidity of $349.5 million as of September 30, 2024.

IRVINE, Calif.--()--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 third quarter 2024 results.

Dan Hedigan, Chief Executive Officer, said, “In the third quarter, we generated stronger than expected net income of $12.3 million, which is our sixth consecutive quarter reporting net income, and we ended the quarter with cash and cash equivalents of $224.5 million and total liquidity of $349.5 million. We did not have any residential land sale closings scheduled during the quarter, however, we are continuing to see strong demand from builders for our land, driven largely by the chronic shortage of developable land in our markets. Importantly, we secured a two-year extension of the development management agreement with our Great Park Venture partners. This extension reflects the strength of our relationship with our partners and is a model that we believe can be expanded beyond our existing communities. We expect to close land sales in the fourth quarter in both of our active communities and to end the year either in line with or stronger than our prior guidance of consolidated annual net income of over $100 million and cash and cash equivalents in excess of $300 million. As always, we are focused on liquidity and protecting our balance sheet. This focus puts us in a position of strength, which will enable future growth. I am very optimistic about the future of Five Point, both for the remainder of this year and beyond.”

Consolidated Results

Liquidity and Capital Resources

As of September 30, 2024, total liquidity of $349.5 million was comprised of cash and cash equivalents totaling $224.5 million and borrowing availability of $125.0 million under our unsecured revolving credit facility. Total capital was $2.0 billion, reflecting $2.9 billion in assets and $0.9 billion in liabilities and redeemable noncontrolling interests.

Results of Operations for the Three Months Ended September 30, 2024

Revenues. Revenues of $17.0 million for the three months ended September 30, 2024 were primarily generated from management services.

Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $12.0 million for the three months ended September 30, 2024. The Great Park Venture generated net income of $33.4 million during the three months ended September 30, 2024, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $12.1 million. Additionally, we recognized $0.2 million in earnings from our 10% interest in the Valencia Landbank Venture, offset by $0.3 million in loss from our 75% interest in the Gateway Commercial Venture.

During the three months ended September 30, 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. The Great Park Venture made aggregate distributions of $3.3 million to holders of Legacy Interests and $103.8 million to holders of Percentage Interests during the three months ended September 30, 2024. We received $38.9 million for our 37.5% Percentage Interest.

Selling, general, and administrative. Selling, general, and administrative expenses were $11.9 million for the three months ended September 30, 2024.

Net income. Consolidated net income for the quarter was $12.3 million. Net income attributable to noncontrolling interests totaled $7.6 million, resulting in net income attributable to the Company of $4.8 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.

Conference Call Information

In conjunction with this release, Five Point will host a conference call on Thursday, October 17, 2024 at 5:00 p.m. Eastern Time. Dan Hedigan, Chief Executive Officer, and Kim Tobler, 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 (877) 451-6152 (domestic) or (201) 389-0879 (international). A telephonic replay will be available starting approximately three hours after the end of the call by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 13749390. The telephonic replay will be available until 11:59 p.m. Eastern Time on October 26, 2024.

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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share amounts)

(Unaudited)

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2024

 

2023

 

2024

 

2023

REVENUES:

 

 

 

 

 

 

 

Land sales

$

372

 

 

$

60,694

 

 

$

1,214

 

 

$

60,685

 

Land sales—related party

 

 

 

 

 

 

 

 

 

 

595

 

Management services—related party

 

16,030

 

 

 

4,502

 

 

 

75,035

 

 

 

29,512

 

Operating properties

 

611

 

 

 

727

 

 

 

1,891

 

 

 

2,181

 

Total revenues

 

17,013

 

 

 

65,923

 

 

 

78,140

 

 

 

92,973

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

Land sales

 

 

 

 

38,967

 

 

 

 

 

 

38,967

 

Management services

 

4,256

 

 

 

2,371

 

 

 

19,467

 

 

 

14,419

 

Operating properties

 

1,231

 

 

 

1,351

 

 

 

4,099

 

 

 

4,321

 

Selling, general, and administrative

 

11,911

 

 

 

11,938

 

 

 

37,013

 

 

 

38,400

 

Total costs and expenses

 

17,398

 

 

 

54,627

 

 

 

60,579

 

 

 

96,107

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

Interest income

 

2,595

 

 

 

2,413

 

 

 

8,575

 

 

 

4,542

 

Miscellaneous

 

24

 

 

 

1,074

 

 

 

(5,857

)

 

 

1,033

 

Total other income

 

2,619

 

 

 

3,487

 

 

 

2,718

 

 

 

5,575

 

EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES

 

11,987

 

 

 

(622

)

 

 

45,071

 

 

 

52,554

 

INCOME BEFORE INCOME TAX PROVISION

 

14,221

 

 

 

14,161

 

 

 

65,350

 

 

 

54,995

 

INCOME TAX PROVISION

 

(1,886

)

 

 

(3

)

 

 

(8,705

)

 

 

(16

)

NET INCOME

 

12,335

 

 

 

14,158

 

 

 

56,645

 

 

 

54,979

 

LESS NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

7,579

 

 

 

7,555

 

 

 

34,841

 

 

 

29,341

 

NET INCOME ATTRIBUTABLE TO THE COMPANY

$

4,756

 

 

$

6,603

 

 

$

21,804

 

 

$

25,638

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE

 

 

 

 

 

 

 

Basic

$

0.07

 

 

$

0.10

 

 

$

0.31

 

 

$

0.37

 

Diluted

$

0.07

 

 

$

0.09

 

 

$

0.31

 

 

$

0.37

 

WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING

 

 

 

 

 

 

 

Basic

 

69,279,028

 

 

 

68,865,783

 

 

 

69,192,620

 

 

 

68,794,915

 

Diluted

 

146,565,417

 

 

 

145,312,266

 

 

 

146,394,307

 

 

 

145,064,113

 

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

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except shares)

(Unaudited)

 

 

September 30, 2024

 

December 31, 2023

ASSETS

 

 

 

INVENTORIES

$

2,340,031

 

 

$

2,213,479

 

INVESTMENT IN UNCONSOLIDATED ENTITIES

 

210,763

 

 

 

252,816

 

PROPERTIES AND EQUIPMENT, NET

 

29,466

 

 

 

29,145

 

INTANGIBLE ASSET, NET—RELATED PARTY

 

11,535

 

 

 

25,270

 

CASH AND CASH EQUIVALENTS

 

224,521

 

 

 

353,801

 

RESTRICTED CASH AND CERTIFICATES OF DEPOSIT

 

992

 

 

 

992

 

RELATED PARTY ASSETS

 

121,829

 

 

 

83,970

 

OTHER ASSETS

 

10,327

 

 

 

9,815

 

TOTAL

$

2,949,464

 

 

$

2,969,288

 

 

 

 

 

LIABILITIES AND CAPITAL

 

 

 

LIABILITIES:

 

 

 

Notes payable, net

$

524,909

 

 

$

622,186

 

Accounts payable and other liabilities

 

100,135

 

 

 

81,649

 

Related party liabilities

 

72,618

 

 

 

78,074

 

Deferred income tax liability, net

 

14,382

 

 

 

7,067

 

Payable pursuant to tax receivable agreement

 

173,351

 

 

 

173,208

 

Total liabilities

 

885,395

 

 

 

962,184

 

 

 

 

 

REDEEMABLE NONCONTROLLING INTEREST

 

25,000

 

 

 

25,000

 

CAPITAL:

 

 

 

Class A common shares; No par value; Issued and outstanding: September 30, 2024—69,358,504 shares; December 31, 2023—69,199,938 shares

 

 

 

Class B common shares; No par value; Issued and outstanding: September 30, 2024—79,233,544 shares; December 31, 2023—79,233,544 shares

 

 

 

Contributed capital

 

594,204

 

 

 

591,606

 

Retained earnings

 

110,584

 

 

 

88,780

 

Accumulated other comprehensive loss

 

(2,313

)

 

 

(2,332

)

Total members’ capital

 

702,475

 

 

 

678,054

 

Noncontrolling interests

 

1,336,594

 

 

 

1,304,050

 

Total capital

 

2,039,069

 

 

 

1,982,104

 

TOTAL

$

2,949,464

 

 

$

2,969,288

 

FIVE POINT HOLDINGS, LLC

SUPPLEMENTAL DATA

(In thousands)

(Unaudited)

 

Liquidity

 

September 30, 2024

Cash and cash equivalents

$

224,521

Borrowing capacity(1)

 

125,000

 

Total liquidity

$

349,521

 

(1)

As of September 30, 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

 

September 30, 2024

Debt(1)

$

524,994

 

Total capital

 

2,039,069

 

Total capitalization

$

2,564,063

 

Debt to total capitalization

 

20.5

%

 

 

Debt(1)

$

524,994

 

Less: Cash and cash equivalents

 

224,521

 

Net debt

 

300,473

 

Total capital

 

2,039,069

 

Total net capitalization

$

2,339,542

 

Net debt to total capitalization(2)

 

12.8

%

(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 nine months ended September 30, 2024 (in thousands):

 

 

Three Months Ended September 30, 2024

 

Valencia

 

San

Francisco

 

Great Park

 

Commercial

 

Total

reportable

segments

 

Corporate and

unallocated

 

Total under

management

 

Removal of

unconsolidated

entities(1)

 

Total

consolidated

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land sales

$

372

 

 

$

 

 

$

58,291

 

$

 

 

$

58,663

 

 

$

 

 

$

58,663

 

 

$

(58,291

)

 

$

372

 

Land sales—related party

 

 

 

 

 

 

 

3,221

 

 

 

 

 

 

3,221

 

 

 

 

 

 

3,221

 

 

 

(3,221

)

 

 

 

Management services—related party(2)

 

 

 

 

 

 

 

15,915

 

 

 

115

 

 

 

16,030

 

 

 

 

 

 

16,030

 

 

 

 

 

 

16,030

 

Operating properties

 

440

 

 

 

171

 

 

 

 

 

 

2,229

 

 

 

2,840

 

 

 

 

 

 

2,840

 

 

 

(2,229

)

 

 

611

 

Total revenues

 

812

 

 

 

171

 

 

 

77,427

 

 

 

2,344

 

 

 

80,754

 

 

 

 

 

 

80,754

 

 

 

(63,741

)

 

 

17,013

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land sales

 

 

 

 

 

 

 

8,088

 

 

 

 

 

 

8,088

 

 

 

 

 

 

8,088

 

 

 

(8,088

)

 

 

 

Management services(2)

 

 

 

 

 

 

 

4,256

 

 

 

 

 

 

4,256

 

 

 

 

 

 

4,256

 

 

 

 

 

 

4,256

 

Operating properties

 

1,231

 

 

 

 

 

 

 

 

 

965

 

 

 

2,196

 

 

 

 

 

 

2,196

 

 

 

(965

)

 

 

1,231

 

Selling, general, and administrative

 

2,407

 

 

 

1,232

 

 

 

3,144

 

 

 

1,059

 

 

 

7,842

 

 

 

8,272

 

 

 

16,114

 

 

 

(4,203

)

 

 

11,911

 

Management fees—related party

 

 

 

 

 

 

 

18,790

 

 

 

 

 

 

18,790

 

 

 

 

 

 

18,790

 

 

 

(18,790

)

 

 

 

Total costs and expenses

 

3,638

 

 

 

1,232

 

 

 

34,278

 

 

 

2,024

 

 

 

41,172

 

 

 

8,272

 

 

 

49,444

 

 

 

(32,046

)

 

 

17,398

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

19

 

 

 

1,912

 

 

 

73

 

 

 

2,004

 

 

 

2,576

 

 

 

4,580

 

 

 

(1,985

)

 

 

2,595

 

Interest expense

 

 

 

 

 

 

 

 

 

 

(694

)

 

 

(694

)

 

 

 

 

 

(694

)

 

 

694

 

 

 

 

Miscellaneous

 

24

 

 

 

 

 

 

 

 

 

 

 

 

24

 

 

 

 

 

 

24

 

 

 

 

 

 

24

 

Total other income (expense)

 

24

 

 

 

19

 

 

 

1,912

 

 

 

(621

)

 

 

1,334

 

 

 

2,576

 

 

 

3,910

 

 

 

(1,291

)

 

 

2,619

 

EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES

 

211

 

 

 

 

 

 

 

 

 

 

 

 

211

 

 

 

 

 

 

211

 

 

 

11,776

 

 

 

11,987

 

SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION

 

(2,591

)

 

 

(1,042

)

 

 

45,061

 

 

 

(301

)

 

 

41,127

 

 

 

(5,696

)

 

 

35,431

 

 

 

(21,210

)

 

 

14,221

 

INCOME TAX PROVISION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,886

)

 

 

(1,886

)

 

 

 

 

 

(1,886

)

SEGMENT (LOSS) PROFIT/NET INCOME

$

(2,591

)

 

$

(1,042

)

 

$

45,061

 

 

$

(301

)

 

$

41,127

 

 

$

(7,582

)

 

$

33,545

 

 

$

(21,210

)

 

$

12,335

 

(1)

Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investment in each venture using the equity method of accounting.

(2)

For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable.

 

Nine Months Ended September 30, 2024

 

Valencia

 

San

Francisco

 

Great Park

 

Commercial

 

Total

reportable

segments

 

Corporate and

unallocated

 

Total under

management

 

Removal of

unconsolidated

entities(1)

 

Total

consolidated

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land sales

$

1,214

 

 

$

 

 

$

273,747

 

$

 

 

$

274,961

 

 

$

 

 

$

274,961

 

 

$

(273,747

)

 

$

1,214

 

Land sales—related party

 

 

 

 

 

 

 

19,846

 

 

 

 

 

 

19,846

 

 

 

 

 

 

19,846

 

 

 

(19,846

)

 

 

 

Management services—related party(2)

 

 

 

 

 

 

 

74,679

 

 

 

356

 

 

 

75,035

 

 

 

 

 

 

75,035

 

 

 

 

 

 

75,035

 

Operating properties

 

1,384

 

 

 

507

 

 

 

 

 

 

7,002

 

 

 

8,893

 

 

 

 

 

 

8,893

 

 

 

(7,002

)

 

 

1,891

 

Total revenues

 

2,598

 

 

 

507

 

 

 

368,272

 

 

 

7,358

 

 

 

378,735

 

 

 

 

 

 

378,735

 

 

 

(300,595

)

 

 

78,140

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land sales

 

 

 

 

 

 

 

67,062

 

 

 

 

 

 

67,062

 

 

 

 

 

 

67,062

 

 

 

(67,062

)

 

 

 

Management services(2)

 

 

 

 

 

 

 

19,467

 

 

 

 

 

 

19,467

 

 

 

 

 

 

19,467

 

 

 

 

 

 

19,467

 

Operating properties

 

4,099

 

 

 

 

 

 

 

 

 

2,805

 

 

 

6,904

 

 

 

 

 

 

6,904

 

 

 

(2,805

)

 

 

4,099

 

Selling, general, and administrative

 

8,116

 

 

 

3,661

 

 

 

8,708

 

 

 

3,107

 

 

 

23,592

 

 

 

25,236

 

 

 

48,828

 

 

 

(11,815

)

 

 

37,013

 

Management fees—related party

 

 

 

 

 

 

 

91,422

 

 

 

 

 

 

91,422

 

 

 

 

 

 

91,422

 

 

 

(91,422

)

 

 

 

Total costs and expenses

 

12,215

 

 

 

3,661

 

 

 

186,659

 

 

 

5,912

 

 

 

208,447

 

 

 

25,236

 

 

 

233,683

 

 

 

(173,104

)

 

 

60,579

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

51

 

 

 

5,062

 

 

 

166

 

 

 

5,279

 

 

 

8,524

 

 

 

13,803

 

 

 

(5,228

)

 

 

8,575

 

Interest expense

 

 

 

 

 

 

 

 

 

 

(2,078

)

 

 

(2,078

)

 

 

 

 

 

(2,078

)

 

 

2,078

 

 

 

 

Miscellaneous

 

71

 

 

 

 

 

 

 

 

 

 

 

 

71

 

 

 

(5,928

)

 

 

(5,857

)

 

 

 

 

 

(5,857

)

Total other income (expense)

 

71

 

 

 

51

 

 

 

5,062

 

 

 

(1,912

)

 

 

3,272

 

 

 

2,596

 

 

 

5,868

 

 

 

(3,150

)

 

 

2,718

 

EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES

 

470

 

 

 

 

 

 

 

 

 

 

 

 

470

 

 

 

 

 

 

470

 

 

 

44,601

 

 

 

45,071

 

SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION

 

(9,076

)

 

 

(3,103

)

 

 

186,675

 

 

 

(466

)

 

 

174,030

 

 

 

(22,640

)

 

 

151,390

 

 

 

(86,040

)

 

 

65,350

 

INCOME TAX PROVISION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(8,705

)

 

 

(8,705

)

 

 

 

 

 

(8,705

)

SEGMENT (LOSS) PROFIT/NET INCOME

$

(9,076

)

 

$

(3,103

)

 

$

186,675

 

 

$

(466

)

 

$

174,030

 

 

$

(31,345

)

 

$

142,685

 

 

$

(86,040

)

 

$

56,645

 

(1)

Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investments in each venture using the equity method of accounting.

(2)

For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial 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 condensed consolidated statements of operations for the three and nine months ended September 30, 2024 (in thousands):

 

 

Three Months Ended

September 30, 2024

 

Nine Months Ended

September 30, 2024

Segment profit from operations

$

45,061

 

 

$

186,675

 

Less net income of management company attributed to the Great Park segment

 

11,659

 

 

 

55,212

 

Net income of the Great Park Venture

 

33,402

 

 

 

131,463

 

The Company’s share of net income of the Great Park Venture

 

12,526

 

 

 

49,299

 

Basis difference amortization, net

 

(438

)

 

 

(4,081

)

Equity in earnings from the Great Park Venture

$

12,088

 

 

$

45,218

 

The table below reconciles the Commercial segment results to the equity in loss from our investment in the Gateway Commercial Venture that is reflected in the condensed consolidated statements of operations for the three and nine months ended September 30, 2024 (in thousands):

 

 

Three Months Ended

September 30, 2024

 

Nine Months Ended

September 30, 2024

Segment loss from operations

$

(301

)

 

$

(466

)

Less net income of management company attributed to the Commercial segment

 

115

 

 

 

356

 

Net loss of the Gateway Commercial Venture

 

(416

)

 

 

(822

)

Equity in loss from the Gateway Commercial Venture

$

(312

)

 

$

(617

)

 

Contacts

Investor Relations:
Kim Tobler, 949-425-5211
Kim.Tobler@fivepoint.com
or
Media:
Eric Morgan, 949-349-1088
Eric.Morgan@fivepoint.com

Contacts

Investor Relations:
Kim Tobler, 949-425-5211
Kim.Tobler@fivepoint.com
or
Media:
Eric Morgan, 949-349-1088
Eric.Morgan@fivepoint.com