Why Five Point Holdings LLC (FPH) Is Surging In 2025
We recently published a list of . In this article, we are going to take a look at where Five Point Holdings LLC (NYSE:FPH) stands against other real estate stocks that are surging in 2025.
For years, real estate stocks have been a source of anxiety for investors due to the scars of the Great Recession. That crisis has led to lingering skepticism, and many see real estate as a no-go zone today due to GDP growth turning negative quarter-over-quarter and expectations of a recession. Investors fear that a recession could drag these stocks down once more.
However, these companies have learned from the Great Recession, and some of them have delivered stellar gains so far. It is a good idea to keep an eye on the winners, as they could outperform during market downturns.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified in another article
For this article, I screened the best-performing real estate stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A birdseye view of a vibrant neighborhood, showcasing the diversity of residents living in a mixed-use community.
Number of Hedge Fund Holders In Q4 2024: 12
Five Point Holdings LLC (NYSE:FPH) develops and manages large-scale mixed-use communities in California, integrating residential, commercial, and public spaces.
The stock's sharp rise in 2025 is primarily due to a series of strong earnings reports, robust land sales, and consistent execution on operating priorities. In January, Five Point reported record net income for both the fourth quarter and full year 2024, with $121 million and $177.6 million, respectively, and noted strong liquidity of $555.9 million.
This performance was driven by multiple significant land sales at its Valencia and Great Park Neighborhoods communities, as well as the sale of its remaining interest in the Five Point Gateway Campus to City of Hope.
In the first quarter of 2025, Five Point again exceeded expectations, posting $60.6 million in net income-$10 million above guidance-and maintaining a 75% gross margin on $278.9 million in land sales revenue. The company also received an S&P credit rating upgrade and extended its key management agreement for the Great Park Venture through 2026, increasing its annual base fee and securing future incentive compensation.
FPH stock is up 40.74% year-to-date.
Overall, FPH ranks 3rd on our list of real estate stocks that are surging in 2025. While we acknowledge the potential of FPH, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FPH but that trades at less than 5 times its earnings, check out our report about this .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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