Five Point Holdings, LLC (FPH) Bundle
A Brief History of Five Point Holdings
Five Point Holdings, LLC is a prominent real estate development company primarily focused on the development of large-scale residential and commercial properties in California. As of 2024, the company has made significant strides in its operational and financial metrics, reflecting its ongoing commitment to growth and profitability.
Financial Performance Overview
For the three months ended September 30, 2024, Five Point Holdings reported revenues totaling $17.0 million, a substantial decrease of 74.2% compared to $65.9 million for the same period in 2023. This decline was mainly attributed to a lack of land sales during the quarter, as opposed to significant sales in the previous year.
The company's net income for the quarter was $12.3 million, down from $14.2 million in the prior year. This decline in net income was primarily influenced by the decrease in revenue from land sales, which was offset partially by an increase in management services revenue from the Great Park segment.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenues | $17.0 million | $65.9 million |
| Net Income | $12.3 million | $14.2 million |
| SG&A Expenses | $11.9 million | $11.9 million |
Land Sales and Management Services
During the nine months ended September 30, 2024, total land sales revenues were recorded at $1.2 million, a significant decrease from $61.3 million in the same period of 2023. The lack of land sales in 2024 was a key factor in the overall revenue decline.
Management services revenue for the nine months ended September 30, 2024, was reported at $75.0 million, compared to $29.5 million in the prior year, indicating a strong increase in management-related income.
| Metric | 9M 2024 | 9M 2023 |
|---|---|---|
| Land Sales Revenue | $1.2 million | $61.3 million |
| Management Services Revenue | $75.0 million | $29.5 million |
Balance Sheet Highlights
As of September 30, 2024, the total assets of Five Point Holdings were valued at $2.95 billion, slightly down from $2.97 billion at the end of 2023. Cash and cash equivalents decreased to $224.5 million from $353.8 million.
Notes payable stood at $524.9 million, reflecting a decrease from $622.2 million at the end of the previous year. This reduction in notes payable is indicative of the company's efforts to manage its debt more effectively.
| Metric | Sept 2024 | Dec 2023 |
|---|---|---|
| Total Assets | $2.95 billion | $2.97 billion |
| Cash and Cash Equivalents | $224.5 million | $353.8 million |
| Notes Payable | $524.9 million | $622.2 million |
Operational Developments
In the Great Park Neighborhoods, the company closed two retail land sales totaling 12.8 acres for an aggregate gross purchase price of $25.4 million during the third quarter of 2024. The Great Park Venture has been a significant contributor to the company's revenues, with distributions totaling $86.2 million during the nine months ended September 30, 2024.
Additionally, the company is extending its development management agreement with the Great Park Venture through December 31, 2026, which includes an increase in the fixed base management fee from $12.0 million to $13.5 million starting in 2025.
Investment in Joint Ventures
Five Point Holdings has a 37.5% interest in the Great Park Venture, which generated net income of $131.5 million for the nine months ended September 30, 2024. The company’s share of this net income was $49.3 million.
The Gateway Commercial Venture, in which Five Point Holdings owns a 75% interest, reported rental revenues of $7.0 million for the nine months ended September 30, 2024.
| Metric | Great Park Venture | Gateway Commercial Venture |
|---|---|---|
| Net Income | $131.5 million | $7.0 million |
| Company's Share of Net Income | $49.3 million | N/A |
A Who Owns Five Point Holdings, LLC (FPH)
Ownership Structure
As of 2024, Five Point Holdings, LLC (FPH) has a complex ownership structure that involves both Class A and Class B common shares. The total outstanding shares are as follows:
| Type of Shares | Outstanding Shares |
|---|---|
| Class A Common Shares | 69,358,504 |
| Class B Common Shares | 79,233,544 |
Capital and Earnings
As of September 30, 2024, the consolidated capital structure of FPH includes:
| Category | Amount (in thousands) |
|---|---|
| Contributed Capital | $594,204 |
| Retained Earnings | $110,584 |
| Accumulated Other Comprehensive Loss | $(2,313) |
| Total Members’ Capital | $702,475 |
| Noncontrolling Interests | $1,336,594 |
| Total Capital | $2,039,069 |
Revenue and Income Details
For the three months ended September 30, 2024, FPH reported the following financial performance metrics:
| Metric | Amount (in thousands) |
|---|---|
| Total Revenues | $17,013 |
| Net Income | $12,335 |
| Net Income Attributable to the Company | $4,756 |
| Net Income Attributable to Noncontrolling Interests | $7,579 |
Investment in Unconsolidated Entities
As of September 30, 2024, the investment in unconsolidated entities includes:
| Entity | Ownership Percentage | Investment Value (in thousands) |
|---|---|---|
| Great Park Venture | 37.5% | $172,787 |
| Gateway Commercial Venture | 75% | Not explicitly stated |
Financial Performance Overview
For the nine months ended September 30, 2024, FPH reported the following:
| Metric | Amount (in thousands) |
|---|---|
| Total Revenues | $78,140 |
| Net Income | $56,645 |
| Net Income Attributable to the Company | $21,804 |
| Net Income Attributable to Noncontrolling Interests | $34,841 |
Liquidity and Financial Position
As of September 30, 2024, FPH reported the following liquidity metrics:
| Category | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $224,521 |
| Available Credit under Revolving Facility | $125,000 |
| Total Liquidity | $349,521 |
Recent Developments
FPH has engaged in various financial activities, including the issuance of new senior notes. As of September 30, 2024, the details are as follows:
| Notes Payable Type | Amount (in thousands) |
|---|---|
| 10.500% New Senior Notes due 2028 | $523,494 |
| 7.875% Senior Notes due 2025 | $1,500 |
These financial metrics illustrate the ownership dynamics and financial performance of Five Point Holdings, LLC as of 2024.
Five Point Holdings, LLC (FPH) Mission Statement
Overview of Mission Statement
Five Point Holdings, LLC aims to create vibrant, sustainable communities through thoughtful planning and strategic partnerships. The company focuses on delivering high-quality residential and commercial developments while maintaining a commitment to environmental stewardship and community engagement.
Key Elements of the Mission Statement
- Sustainability: Prioritizing eco-friendly practices in all developments.
- Community Engagement: Actively involving community stakeholders in the planning process.
- Strategic Partnerships: Collaborating with various entities to enhance project outcomes.
Financial Performance Metrics
As of September 30, 2024, Five Point Holdings reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenues (Q3 2024) | $17.0 million |
| Net Income (Q3 2024) | $12.3 million |
| Net Income Attributable to the Company (Q3 2024) | $4.8 million |
| Total Assets (September 30, 2024) | $2.95 billion |
| Total Liabilities (September 30, 2024) | $885.4 million |
| Cash and Cash Equivalents (September 30, 2024) | $224.5 million |
Community Development Initiatives
Five Point Holdings is actively involved in several key community development projects, including:
- Great Park Neighborhoods
- Valencia Community Development
- The San Francisco Shipyard
Investment and Growth Strategy
The company’s investment strategy includes:
- Focusing on high-demand residential areas.
- Leveraging partnerships for land development and financing.
- Utilizing innovative planning methods to maximize land use.
Recent Developments
During the third quarter of 2024, significant achievements included:
- Closed two retail land sales in Great Park totaling 12.8 acres for $25.4 million.
- Received $49.4 million in distributions from the Great Park Venture.
- Increased management fee revenues to $15.9 million for Q3 2024, compared to $4.4 million in Q3 2023.
Future Outlook
Five Point Holdings is positioned for continued growth, with plans to:
- Expand residential offerings in the Valencia and Great Park areas.
- Enhance community amenities to attract new residents and businesses.
- Maintain a strong focus on sustainability and community integration.
Conclusion
The mission statement of Five Point Holdings, LLC reflects a commitment to sustainable development, community involvement, and strategic partnerships, driving its growth and success in the real estate sector.
How Five Point Holdings, LLC (FPH) Works
Company Structure and Operations
Five Point Holdings, LLC (FPH) operates primarily through its subsidiaries engaged in real estate development and management. The company focuses on large-scale community development projects, particularly in California. Key operational segments include Valencia, San Francisco, Great Park, and Commercial.
Financial Performance
For the three months ended September 30, 2024, FPH reported:
- Net Income: $12.3 million
- Net Income (2023): $14.2 million
- Revenues: $17.0 million (down 74.2% from $65.9 million in Q3 2023)
- SG&A Expenses: $11.9 million (consistent with Q3 2023)
For the nine months ended September 30, 2024:
- Net Income: $56.6 million
- Net Income (2023): $55.0 million
- Revenues: $78.1 million (down from $93.0 million in 2023)
Segment Performance
The company’s reportable segments include:
- Valencia: Focused on land sales and agricultural operations.
- San Francisco: Includes development projects at Candlestick and The San Francisco Shipyard.
- Great Park: Comprises Great Park Neighborhoods and development management services.
- Commercial: Involves the Gateway Commercial Venture.
| Segment | Revenues (Q3 2024) | Net Income (Q3 2024) | Revenues (9M 2024) | Net Income (9M 2024) |
|---|---|---|---|---|
| Valencia | $372,000 | $0 | $1,214,000 | $0 |
| San Francisco | $171,000 | $0 | $507,000 | $0 |
| Great Park | $77,427,000 | Included in total | $273,747,000 | Included in total |
| Commercial | $2,344,000 | Included in total | $356,000 | Included in total |
Liquidity Position
As of September 30, 2024, FPH had:
- Cash and Cash Equivalents: $224.5 million
- Available Revolving Credit: $125.0 million
- Total Liquidity: $349.5 million
Debt Structure
FPH's notes payable as of September 30, 2024, included:
| Debt Type | Amount (in thousands) | Due Date |
|---|---|---|
| 10.500% New Senior Notes | $523,494 | Due January 15, 2028 |
| 7.875% Senior Notes | $1,500 | Due November 15, 2025 |
| Total Notes Payable | $524,909 |
Equity and Shareholder Information
As of September 30, 2024, FPH's capital structure included:
- Class A Common Shares: 69,358,504
- Class B Common Shares: 79,233,544
- Total Members’ Capital: $2,039,069,000
Recent Developments
In Q3 2024, FPH closed two retail land sales totaling 12.8 acres at the Great Park Neighborhoods for $25.4 million. The company also received $49.4 million in distributions from the Great Park Venture, reflecting strong operational management and strategic joint ventures.
How Five Point Holdings, LLC (FPH) Makes Money
Sources of Revenue
Five Point Holdings, LLC (FPH) generates revenue from several key sources, primarily through land sales, management services, and operating properties. The company operates through multiple segments: Valencia, San Francisco, Great Park, and Commercial.
| Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | YTD Revenue 2024 (in thousands) | YTD Revenue 2023 (in thousands) |
|---|---|---|---|---|
| Land Sales | $372 | $60,694 | $1,214 | $60,685 |
| Management Services | $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 |
Land Sales
Land sales represent a significant portion of FPH's revenue. In Q3 2024, land sales generated $372,000, a steep decline from $60.7 million in Q3 2023. For the year-to-date 2024, land sales amounted to $1.2 million compared to $60.7 million in the same period of 2023. The dramatic drop is attributed to no land sales occurring in 2024 from the Valencia segment, which had previously contributed significantly to revenue.
Management Services
Management services revenue saw a substantial increase, with Q3 2024 reporting $16.0 million compared to $4.5 million in Q3 2023. Year-to-date, management services revenue reached $75.0 million, up from $29.5 million in 2023. This segment includes fees earned from the Great Park Venture, which has been a vital source of revenue for FPH.
Operating Properties
Revenue from operating properties includes leasing and management fees. In Q3 2024, this segment generated $611,000, slightly down from $727,000 in Q3 2023. Year-to-date figures show $1.9 million in 2024 compared to $2.2 million in 2023.
Cost Structure
FPH's cost structure is composed of costs associated with land sales, management services, and general administrative expenses. In Q3 2024, total costs were $17.4 million, compared to $54.6 million in Q3 2023. The cost of land sales decreased significantly in 2024 due to the lack of sales activity.
| Cost Component | Q3 2024 Costs (in thousands) | Q3 2023 Costs (in thousands) | YTD Costs 2024 (in thousands) | YTD Costs 2023 (in thousands) |
|---|---|---|---|---|
| Land Sales | $0 | $38,967 | $0 | $38,967 |
| Management Services | $4,256 | $2,371 | $19,467 | $14,419 |
| Operating Properties | $1,231 | $1,351 | $4,099 | $4,321 |
| Total Costs | $17,398 | $54,627 | $60,579 | $96,107 |
Net Income
FPH reported a net income of $12.3 million for Q3 2024, compared to $14.2 million in Q3 2023. The year-to-date net income for 2024 was $56.6 million, an increase from $55.0 million in 2023. The results reflect the company's ability to manage costs effectively, even amidst declining land sales.
Liquidity and Capital Structure
As of September 30, 2024, FPH had $224.5 million in cash and $125.0 million available under its revolving credit facility, providing total liquidity of $349.5 million. The company focuses on managing cash flows to support ongoing development and operational needs.
Equity in Earnings from Unconsolidated Entities
FPH's equity in earnings from unconsolidated entities, primarily from the Great Park Venture, amounted to $12.0 million in Q3 2024, up from a loss of $0.6 million in Q3 2023. For the year-to-date period, equity in earnings was $45.1 million, down from $52.6 million in the previous year.
| Equity Earnings | Q3 2024 (in thousands) | Q3 2023 (in thousands) | YTD 2024 (in thousands) | YTD 2023 (in thousands) |
|---|---|---|---|---|
| Equity in Earnings | $12,000 | ($622) | $45,071 | $52,554 |
Debt Obligations
As of September 30, 2024, FPH's debt obligations included $523.5 million in new 10.500% senior notes due January 2028 and $1.5 million in remaining 7.875% senior notes due November 2025. The company's ability to manage its debt obligations will be crucial as it navigates the current economic landscape.
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Resources:
- Five Point Holdings, LLC (FPH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Five Point Holdings, LLC (FPH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Five Point Holdings, LLC (FPH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.