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Business Wire
24-07-2025
- Business
- Business Wire
Five Point Holdings, LLC Reports Second Quarter 2025 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 second quarter 2025 results. Dan Hedigan, Chief Executive Officer, said, 'In the second quarter, we generated consolidated net income of $8.6 million, which was in line with our expectations. At our Great Park Neighborhoods community, we closed a significant land sale during the quarter, and Five Point ended with a strong liquidity position of $581.6 million. Although the homebuilding market is facing headwinds due in part to declining consumer confidence and affordability concerns, our communities remain well positioned in supply-constrained California markets and we anticipate continuing land sales at the Great Park this year. We currently believe we will end 2025 with consolidated net income consistent with our 2024 net income of $177.6 million. We also look forward to closing our land banking venture with Hearthstone, Inc. in the third quarter—a key milestone in our long-term growth strategy that we expect to introduce new recurring revenue streams and expand our platform for institutional capital partnerships.' Consolidated Results Liquidity and Capital Resources As of June 30, 2025, total liquidity of $581.6 million was comprised of cash and cash equivalents totaling $456.6 million and borrowing availability of $125.0 million under our unsecured revolving credit facility. Total capital was $2.2 billion, reflecting $3.2 billion in assets and $0.9 billion in liabilities and redeemable noncontrolling interests. Results of Operations for the Three Months Ended June 30, 2025 Revenues. Revenues of $7.5 million for the three months ended June 30, 2025 were primarily generated from management services. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $17.1 million for the three months ended June 30, 2025. The Great Park Venture generated net income of $48.4 million during the three months ended June 30, 2025, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $16.7 million. During the three months ended June 30, 2025, the Great Park Venture sold 82 homesites on 5.7 acres of land at the Great Park Neighborhoods for an aggregate purchase price of $63.6 million. Selling, general, and administrative. Selling, general, and administrative expenses were $15.6 million for the three months ended June 30, 2025. Net income. Consolidated net income for the quarter was $8.6 million. Net income attributable to noncontrolling interests totaled $5.3 million, resulting in net income attributable to the Company of $3.3 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, July 24, 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 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 13755037. The telephonic replay will be available until 11:59 p.m. Eastern Time on August 2, 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; future demographics and market conditions, including housing supply levels, in the areas where our communities are located; the timing and expected benefits of planned and potential transactions and acquisitions; and other statements that are not historical in nature. 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 BALANCE SHEETS (In thousands, except shares) (Unaudited) June 30, 2025 December 31, 2024 ASSETS INVENTORIES $ 2,400,597 $ 2,298,080 INVESTMENT IN UNCONSOLIDATED ENTITIES 160,423 185,324 PROPERTIES AND EQUIPMENT, NET 29,351 29,487 INTANGIBLE ASSET, NET—RELATED PARTY 7,330 9,037 CASH AND CASH EQUIVALENTS 456,640 430,875 RESTRICTED CASH AND CERTIFICATES OF DEPOSIT 992 992 RELATED PARTY ASSETS 83,473 101,670 OTHER ASSETS 20,011 20,952 TOTAL $ 3,158,817 $ 3,076,417 LIABILITIES AND CAPITAL LIABILITIES: Notes payable, net $ 527,462 $ 525,737 Accounts payable and other liabilities 100,300 100,292 Related party liabilities 64,512 63,297 Deferred income tax liability, net 42,562 33,570 Payable pursuant to tax receivable agreement 173,849 173,424 Total liabilities 908,685 896,320 REDEEMABLE NONCONTROLLING INTEREST 25,000 25,000 CAPITAL: Class A common shares; No par value; Issued and outstanding: June 30, 2025—69,861,335 shares; December 31, 2024—69,369,234 shares Class B common shares; No par value; Issued and outstanding: June 30, 2025—79,233,544 shares; December 31, 2024—79,233,544 shares Contributed capital 597,170 593,827 Retained earnings 183,681 157,077 Accumulated other comprehensive loss (1,459 ) (1,468 ) Total members' capital 779,392 749,436 Noncontrolling interests 1,445,740 1,405,661 Total capital 2,225,132 2,155,097 TOTAL $ 3,158,817 $ 3,076,417 Expand FIVE POINT HOLDINGS, LLC SUPPLEMENTAL DATA (In thousands) (Unaudited) Liquidity June 30, 2025 Cash and cash equivalents $ 456,640 Borrowing capacity (1) 125,000 Total liquidity $ 581,640 Expand (1) As of June 30, 2025, no borrowings or letters of credit were outstanding on the Company's $125.0 million revolving credit facility. Expand Debt to Total Capitalization and Net Debt to Total Capitalization Debt (1) $ 524,994 Total capital 2,225,132 Total capitalization $ 2,750,126 Debt to total capitalization 19.1 % Debt (1) $ 524,994 Less: Cash and cash equivalents 456,640 Net debt 68,354 Total capital 2,225,132 Total net capitalization $ 2,293,486 Net debt to total capitalization (2) 3.0 % Expand (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. Expand Segment Results The following tables reconcile the results of operations of our segments to our consolidated results for the three and six months ended June 30, 2025 (in thousands): Three Months Ended June 30, 2025 REVENUES: Land sales $ (16 ) $ — $ 72,242 $ 72,226 $ — $ 72,226 $ (72,242 ) $ (16 ) Land sales—related party — — — — — — — — Management services—related party (2) — — 6,959 6,959 — 6,959 — 6,959 Operating properties 358 172 — 530 — 530 — 530 Total revenues 342 172 79,201 79,715 — 79,715 (72,242 ) 7,473 COSTS AND EXPENSES: Land sales — — 16,022 16,022 — 16,022 (16,022 ) — Management services (2) — — 2,330 2,330 — 2,330 — 2,330 Operating properties 1,773 — — 1,773 — 1,773 — 1,773 Selling, general, and administrative 3,103 1,215 1,781 6,099 11,268 17,367 (1,781 ) 15,586 Management fees—related party — — 7,753 7,753 — 7,753 (7,753 ) — Total costs and expenses 4,876 1,215 27,886 33,977 11,268 45,245 (25,556 ) 19,689 OTHER INCOME: Interest income — 2 1,709 1,711 4,965 6,676 (1,709 ) 4,967 Miscellaneous 21 — — 21 — 21 — 21 Total other income 21 2 1,709 1,732 4,965 6,697 (1,709 ) 4,988 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 211 — — 211 242 453 16,692 17,145 SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION (4,302 ) (1,041 ) 53,024 47,681 (6,061 ) 41,620 (31,703 ) 9,917 INCOME TAX PROVISION — — — — (1,341 ) (1,341 ) — (1,341 ) SEGMENT (LOSS) PROFIT/NET INCOME $ (4,302 ) $ (1,041 ) $ 53,024 $ 47,681 $ (7,402 ) $ 40,279 $ (31,703 ) $ 8,576 Expand (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 equity in earnings from the Company's investment in the Gateway Commercial Venture is reported 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. Expand Six Months Ended June 30, 2025 Valencia San Francisco Great Park Total reportable segments Corporate and unallocated Total under management Removal of unconsolidated entities (1) Total consolidated REVENUES: Land sales $ 82 $ — $ 357,645 $ 357,727 $ — $ 357,727 $ (357,645 ) $ 82 Land sales—related party — — — — — — — — Management services—related party (2) — — 19,510 19,510 — 19,510 — 19,510 Operating properties 692 346 — 1,038 — 1,038 — 1,038 Total revenues 774 346 377,155 378,275 — 378,275 (357,645 ) 20,630 COSTS AND EXPENSES: Land sales — — 86,238 86,238 — 86,238 (86,238 ) — Management services (2) — — 5,391 5,391 — 5,391 — 5,391 Operating properties 3,260 — — 3,260 — 3,260 — 3,260 Selling, general, and administrative 6,399 2,378 4,541 13,318 21,574 34,892 (4,541 ) 30,351 Management fees—related party — — 15,611 15,611 — 15,611 (15,611 ) — Total costs and expenses 9,659 2,378 111,781 123,818 21,574 145,392 (106,390 ) 39,002 OTHER INCOME: Interest income — 17 3,402 3,419 9,000 12,419 (3,402 ) 9,017 Miscellaneous 796 — — 796 — 796 — 796 Total other income 796 17 3,402 4,215 9,000 13,215 (3,402 ) 9,813 EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES 425 — — 425 613 1,038 87,546 88,584 SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION (7,664 ) (2,015 ) 268,776 259,097 (11,961 ) 247,136 (167,111 ) 80,025 INCOME TAX PROVISION — — — — (10,863 ) (10,863 ) — (10,863 ) SEGMENT (LOSS) PROFIT/NET INCOME $ (7,664 ) $ (2,015 ) $ 268,776 $ 259,097 $ (22,824 ) $ 236,273 $ (167,111 ) $ 69,162 Expand (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 equity in earnings from the Company's investment in the Gateway Commercial Venture is reported 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. Expand 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 six months ended June 30, 2025 (in thousands):
Los Angeles Times
30-06-2025
- Business
- Los Angeles Times
Irvine's Five Point Holdings Acquires Hearthstone Residential for $59.25 Million
Irvine-based Five Point Holdings agreed to acquire a 75% stake in Hearthstone Residential Holdings LLC from Hearthstone Inc. and The Mark and Lynn Porath 2000 Trust for $59.25 million. Five Point agreed to pay $56.25 million in cash and up to $3 million in stock. The acquisition is expected to close by the end of the third quarter. 'Hearthstone has built an impressive track record over more than three decades, consistently delivering value through changing market conditions, and we are very excited to bring this exceptional platform and talented team into Five Point,' said Dan Hedigan, chief executive and president of Five Point, in a statement. Hearthstone was founded in 1992 and is focused on managing institutional capital in residential for-sale housing. Its business consists of a land banking program that provides capital to public homebuilders, a joint venture financing program, and advisory services for real estate investors and financial institutions. It has over $2.6 billion in assets under management and has funded more than 173,000 homes and lots, totaling approximately $21 billion in investments in connection with approximately 750 transactions. Sullivan & Cromwell LLP acted as legal advisor for Five Point Holdings. Alston & Bird LLP acted as legal advisor for Hearthstone Inc. and Hearthstone Residential Holdings LLC. Information for this article was sourced from Five Point Holdings.
Business Wire
20-06-2025
- Business
- Business Wire
Five Point Holdings, LLC to Acquire Controlling Interest in New Landbank Venture With Hearthstone, Inc.
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 announced that it has entered into a definitive agreement to acquire a controlling interest in a newly formed entity that will include substantially all of the business and operations of Hearthstone, Inc. ('Hearthstone'), a provider of capital solutions to the U.S. homebuilding industry. The new entity, Hearthstone Residential Holdings, LLC (the 'Hearthstone Venture'), represents a strategic partnership between Five Point and Hearthstone designed to expand access to flexible, off-balance sheet capital for homebuilders pursuing land-light strategies. This marks a significant expansion of Five Point's capabilities, positioning it as a more active manager of capital solutions for the homebuilding sector through investment funds. The Hearthstone Venture will benefit from Five Point's deep development expertise, valuable long-term relationships with the homebuilding industry, and strong capital base, while leveraging Hearthstone's respected platform and experienced leadership. As part of the transaction, Hearthstone will contribute substantially all of its assets into the new venture, of which Five Point will own 75%, with the remaining 25% retained by entities affiliated with Mark Porath, Hearthstone's Founder and Chief Executive Officer. The Hearthstone Venture will continue to be led by its existing management team. Hearthstone was founded in 1992 and is focused on managing institutional capital in residential for-sale housing in select target markets across the country. Hearthstone's business consists of a land banking (or lot option) program that provides capital to public homebuilders, a joint venture financing program, and advisory services for real estate investors and financial institutions. With over $2.6 billion in assets under management, the firm has funded over 173,000 homes and lots, totaling approximately $21 billion in investments in connection with approximately 750 transactions. The acquisition is expected to close by the end of the third quarter, subject to customary closing conditions. 'Hearthstone has built an impressive track record over more than three decades, consistently delivering value through changing market conditions, and we are very excited to bring this exceptional platform and talented team into Five Point,' said Dan Hedigan, President and Chief Executive Officer of Five Point. 'We've had the opportunity to partner with Hearthstone on several transactions and have great respect for their disciplined execution and deep relationships across the homebuilding industry. This acquisition will create new revenue streams for Five Point, while connecting us to a broader network of capital providers and strengthening our relationships with builder partners. Hearthstone's market insight, innovative approach, and operational excellence are a strong complement to our land development platform, and both companies have established trust with their homebuilder partners. Together, we're positioned to scale Hearthstone's land banking business, while further supporting Five Point's asset-light growth strategy.' 'Partnering with Five Point is a strategic step forward for Hearthstone,' said Mark Porath, Founder and Chief Executive Officer of Hearthstone. 'This venture will allow us to scale our platform and broaden our impact while aligning with an industry leader that shares our long-term vision. We're entering this partnership to leverage the respective strengths of both companies, and my continued ownership stake reflects my confidence in the future of the business. Our builder clients will experience continuity in service—with the added advantage of expanded resources, enhanced capital solutions, and increased capacity to support their growth strategies.' About Five Point Holdings, LLC Five Point Holdings, LLC (NYSE: FPH) 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. About Hearthstone, Inc. Hearthstone, Inc. is a leading private investment partner in for-sale housing in the United States, with an uncompromising commitment to excellence, innovation, and integrity. Hearthstone's primary business is managing institutional capital in their investment in residential housing in select target markets. 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 future home sales and/or builder sales; our future revenues, costs and financial performance, including with respect to cash generation and profitability; the expected timing, completion, and effects of the proposed transaction; the ability of the parties to consummate the transaction on the anticipated timeline or at all; anticipated benefits, synergies, or strategic advantages; and other statements that are not historical in nature. 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 Five Point's filings with the SEC, including Five Point's 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.
Business Journals
25-04-2025
- Business
- Business Journals
FivePoint says next wave of infrastructure work at Candlestick Point could begin in 2026
The timeline comes after the Irvine-based developer said it would seek to proceed with Candlestick as a standalone development. FivePoint Holdings plans to begin building out infrastructure to support the next wave of development at Candlestick Point in 2026, the company (NYSE: FPH) said during a first quarter earnings call Thursday. CEO Dan Hedigan told analysts FivePoint is working on engineering for the infrastructure 'with the expectation of starting construction early next year.' The infrastructure work, which includes the extension of Harney Way and Arelious Walker Drive, would allow for approximately 700 housing units as well as future commercial development, FivePoint Senior Vice President Suheil Totah said Friday in a statement provided to the Business Times. FivePoint is working to secure permits to begin the infrastructure work, Totah added. The updated timeline for infrastructure buildout is among the most concrete FivePoint has put to Candlestick in recent years. It comes approximately six months after the developer secured city approvals to amend the development agreement that governs the future of both Candlestick and the nearby Hunters Point Shipyard. Those amendments implemented a host of changes meant to help advance work at Candlestick. That included granting FivePoint permission to transfer 2 million square feet of commercial uses from the nearly 500-acre Hunters Point, which was approved in 2010 for 3,500 homes and 5.4 million square feet of commercial use, to the 280-acre Candlestick, which simultaneously received approvals for 7,200 homes and just more than 1 million square feet of commercial use. Those approvals, operating under the assumption that the Shipyard and Candlestick would be developed in tandem with one another, intertwined the economics of the two sites, positioning the commercial footprint at the Shipyard as a way to balance out more residential units and affordable homes at Candlestick. But failed remediation efforts at Hunters Point, once home to a lab used by the U.S. Navy to study radiation and nuclear weapons, have held up its redevelopment, even as Candlestick remained shovel-ready. The Navy retains possession of approximately 408 acres at Hunters Point, FivePoint said in public filings, and has repeatedly pushed back its timeline for that property, most recently to 2038. FivePoint said the amendments to the development agreement approved last fall would make it possible to proceed with Candlestick as a standalone project. The developer has yet to secure either a capital partner or a tenant commitment for the project, two things it has said would be catalysts for vertical development at Candlestick. But the buildout of new infrastructure there would open the door for the first new development at Candlestick since the 337-unit, 100% affordable Alice Griffith community was delivered there in 2018, and could help attract new interest. Hedigan told analysts Thursday FivePoint is continuing to explore opportunities to bring on a partner at Candlestick. The CEO said last year any future venture could look something like the one FivePoint established with various capital partners at its Great Park mixed-use project in Irvine, which also spans thousand of units and millions of square feet worth of commercial development. There, FivePoint works closely with its partners and maintains an equity interest in the project. Nearly every large-scale redevelopment effort in San Francisco is on pause amid current, unfavorable economic conditions. But Candlestick specifically caught the eye of San Francisco Mayor Daniel Lurie, who toured the site early this year in the weeks after he took office. Lurie, speaking to the crowd at the Business Times' 2025 Mayors' Economic Forecast event in February, said he wanted to know how the city could enable FivePoint to move faster at Candlestick. 'The bureaucracy wants to slow us down,' Lurie said then. 'We are going to be rock solid in our push to make things go faster.' Shares of FivePoint stock were trading at $5.68 per share at market close Friday and are up more than 50% since the beginning of the year.
