Five Point Holdings, LLC Reports Second Quarter 2026 Results

About this update from Five Point Holdings, Llc

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 2026 results. Dan Hedigan, President and Chief Executive Officer, said, “I am pleased to report that Five Point generated consolidated net income of $29.9 million in the second quarter and ended the quarter with total liquidity of $565.9 million, including $348.4 million of cash and cash equivalents. During the quarter, the Great Park Venture completed the sale of 17.7 acres planned for a senior living retirement community for $159.3 million, further demonstrating the substantial value embedded in our California communities. We also received $79.6 million in distributions and incentive compensation payments from our joint ventures, while continuing to grow our recurring management and investment income through our Hearthstone Venture and the Great Park Venture. These results reflect the progress we are making toward a more diversified and capital-efficient business model. Although housing market conditions remain uncertain, the scarcity of entitled land in our markets continues to support the long-term value of our communities. We remain actively engaged with builders regarding additional homesite sales, and we expect that our remaining land sales activity will occur during the fourth quarter, subject to market conditions. At this time, we are not updating or altering our prior guidance of approximately $100 million in consolidated net income for 2026.” Consolidated Results Liquidity and Capital Resources As of June 30, 2026, total liquidity of $565.9 million was comprised of cash and cash equivalents totaling $348.4 million and borrowing availability of $217.5 million under our unsecured revolving credit facility. Total capital was $2.3 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, 2026 Revenues. Revenues of $13.9 million for the three months ended June 30, 2026 were primarily generated from management services at our Great Park and Hearthstone segments. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $41.0 million for the three months ended June 30, 2026. The Great Park Venture generated net income of $114.2 million during the three months ended June 30, 2026, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $39.7 million. During the three months ended June 30, 2026, the Great Park Venture sold 17.7 acres of commercial land planned for senior living uses at the Great Park Neighborhoods for a purchase price of $159.3 million. The Great Park Venture made aggregate distributions of $91.6 million to holders of percentage interests during the three months ended June 30, 2026. We received $34.4 million for our 37.5% percentage interest. Selling, general, and administrative. Selling, general, and administrative expenses were $14.3 million for the three months ended June 30, 2026. Net income. Consolidated net income for the quarter was $29.9 million. Net income attributable to noncontrolling interests totaled $19.1 million, resulting in net income attributable to the Company of $10.9 million. Net income attributable to noncontrolling interests primarily 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 or loss 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 23, 2026 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 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 13761889. The telephonic replay will be available until 11:59 p.m. Eastern Time on August 2, 2026. 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 20 million square feet of commercial space. Five Point’s Hearthstone platform provides management services to residential land banking funds and oversees approximately $3.4 billion in assets under management. 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 our share repurchase program and other 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 STATEMENTS OF OPERATIONS (In thousands, except share and per share amounts) (Unaudited)     Three Months Ended June 30,   Six Months Ended June 30,   2026   2025   2026   2025 REVENUES:               Land sales $ (211 )   $ (16 )   $ (211 )   $ 82   Land sales—related party   (1,211 )     —       (1,211 )     —   Management services—related party   14,712       6,959       27,696       19,510   Operating properties   612       530       1,209       1,038   Total revenues   13,902       7,473       27,483       20,630   COSTS AND EXPENSES:               Land sales   —       —       —       —   Management services   5,587       2,330       12,481       5,391   Operating properties   1,605       1,773       3,185       3,260   Selling, general, and administrative   14,294       15,586       29,043       30,351   Total costs and expenses   21,486       19,689       44,709       39,002   OTHER INCOME:               Interest income   2,659       4,967       5,926       9,017   Miscellaneous   36       21       644       796   Total other income   2,695       4,988       6,570       9,813   EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES   41,030       17,145       40,885       88,584   INCOME BEFORE INCOME TAX PROVISION   36,141       9,917       30,229       80,025   INCOME TAX PROVISION   (6,207 )     (1,341 )     (5,265 )     (10,863 ) NET INCOME   29,934       8,576       24,964       69,162   LESS NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS   19,073       5,256       16,330       42,558   NET INCOME ATTRIBUTABLE TO THE COMPANY $ 10,861     $ 3,320     $ 8,634     $ 26,604                   NET INCOME ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE               Basic $ 0.15     $ 0.05     $ 0.12     $ 0.38   Diluted $ 0.15       0.05     $ 0.12     $ 0.36   WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING               Basic   72,138,474       69,763,845       71,828,813       69,639,492   Diluted   149,093,240       148,724,073       149,303,258       148,743,245   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   76,096,410       79,233,544       76,096,410       79,233,544   FIVE POINT HOLDINGS, LLC CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except shares) (Unaudited)     June 30, 2026   December 31, 2025 ASSETS       INVENTORIES $ 2,524,356     $ 2,443,279   INVESTMENT IN UNCONSOLIDATED ENTITIES   124,904       153,087   PROPERTIES AND EQUIPMENT, NET   29,217       29,264   INTANGIBLE ASSETS, NET—RELATED PARTY   15,389       17,250   GOODWILL   69,812       69,812   CASH AND CASH EQUIVALENTS   348,382       425,546   RESTRICTED CASH AND CERTIFICATES OF DEPOSIT   992       992   RELATED PARTY ASSETS   87,175       89,509   OTHER ASSETS   19,959       20,264   TOTAL $ 3,220,186     $ 3,249,003           LIABILITIES AND CAPITAL       LIABILITIES:       Notes payable, net $ 444,048     $ 443,348   Accounts payable and other liabilities   107,994       106,199   Related party liabilities   17,736       70,973   Deferred income tax liability, net   63,602       58,343   Payable pursuant to tax receivable agreement   181,501       181,544   Total liabilities   814,881       860,407           REDEEMABLE NONCONTROLLING INTERESTS   69,920       70,155   CAPITAL:       Class A common shares; No par value; Issued and outstanding: June 30, 2026—71,783,254 shares; December 31, 2025—71,100,768 shares       Class B common shares; No par value; Issued and outstanding: June 30, 2026—76,096,410 shares; December 31, 2025—76,096,410 shares       Contributed capital   613,863       616,751   Retained earnings   236,677       228,043   Accumulated other comprehensive loss   (1,545 )     (1,549 ) Total members’ capital   848,995       843,245   Noncontrolling interests   1,486,390       1,475,196   Total capital   2,335,385       2,318,441   TOTAL $ 3,220,186     $ 3,249,003   FIVE POINT HOLDINGS, LLC SUPPLEMENTAL DATA (In thousands) (Unaudited) Liquidity     June 30, 2026 Cash and cash equivalents $ 348,382 Borrowing capacity (1)   217,500 Total liquidity $ 565,882 (1) As of June 30, 2026, no borrowings or letters of credit were outstanding on the Company’s $217.5 million revolving credit facility. Debt to Total Capitalization and Net Debt to Total Capitalization     June 30, 2026 Debt (1) $ 450,000   Total capital   2,335,385   Total capitalization $ 2,785,385   Debt to total capitalization   16.2 %     Debt (1) $ 450,000   Less: Cash and cash equivalents   348,382   Net debt   101,618   Total capital   2,335,385   Total net capitalization $ 2,437,003   Net debt to total capitalization (2)   4.2 % (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 six months ended June 30, 2026 (in thousands):   Three Months Ended June 30, 2026   Valencia   San Francisco   Great Park   Hearthstone   Total reportable segments   Corporate and unallocated   Total under management   Removal of unconsolidated entities (1)   Total consolidated REVENUES:                                   Land sales $ (211 )   $ —     $ 161,671   $ —   $ 161,460     $ —     $ 161,460     $ (161,671 )   $ (211 ) Land sales—related party   (1,211 )     —       —     —     (1,211 )     —       (1,211 )     —       (1,211 ) Management services—related party (2)   —       —       9,132     5,580     14,712       —       14,712       —       14,712   Operating properties   432       180       —     —     612       —       612       —       612   Total revenues   (990 )     180       170,803     5,580     175,573       —       175,573       (161,671 )     13,902   COSTS AND EXPENSES:                                   Land sales   —       —       37,622     —     37,622       —       37,622       (37,622 )     —   Management services (2)   —       —       2,351     3,236     5,587       —       5,587       —       5,587   Operating properties   1,605       —       —     —     1,605       —       1,605       —       1,605   Selling, general, and administrative   2,352       1,426       2,412     —     6,190       10,516       16,706       (2,412 )     14,294   Management fees—related party   —       —       9,016     —     9,016       —       9,016       (9,016 )     —   Total costs and expenses   3,957       1,426       51,401     3,236     60,020       10,516       70,536       (49,050 )     21,486   OTHER INCOME:                                   Interest income   —       1       1,620     19     1,640       2,639       4,279       (1,620 )     2,659   Miscellaneous   36       —       —     —     36       —       36       —       36   Total other income   36       1       1,620     19     1,676       2,639       4,315       (1,620 )     2,695   EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES   312       —       —     789     1,101       264       1,365       39,665       41,030   SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION   (4,599 )     (1,245 )     121,022     3,152     118,330       (7,613 )     110,717       (74,576 )     36,141   INCOME TAX PROVISION   —       —       —     —     —       (6,207 )     (6,207 )     —       (6,207 ) SEGMENT (LOSS) PROFIT/NET INCOME $ (4,599 )   $ (1,245 )   $ 121,022   $ 3,152   $ 118,330     $ (13,820 )   $ 104,510     $ (74,576 )   $ 29,934   (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. (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.   Six Months Ended June 30, 2026   Valencia   San Francisco   Great Park   Hearthstone   Total reportable segments   Corporate and unallocated   Total under management   Removal of unconsolidated entities (1)   Total consolidated REVENUES:                                   Land sales $ (211 )   $ —     $ 165,278   $ —   $ 165,067     $ —     $ 165,067     $ (165,278 )   $ (211 ) Land sales—related party   (1,211 )     —       —     —     (1,211 )     —       (1,211 )     —       (1,211 ) Management services—related party (2)   —       —       15,988     11,708     27,696       —       27,696       —       27,696   Operating properties   852       357       —     —     1,209       —       1,209       —       1,209   Total revenues   (570 )     357       181,266     11,708     192,761       —       192,761       (165,278 )     27,483   COSTS AND EXPENSES:                                   Land sales   —       —       37,622     —     37,622       —       37,622       (37,622 )     —   Management services (2)   —       —       4,462     8,019     12,481       —       12,481       —       12,481   Operating properties   3,185       —       —     —     3,185       —       3,185       —       3,185   Selling, general, and administrative   4,852       2,987       3,562     —     11,401       21,204       32,605       (3,562 )     29,043   Management fees—related party   —       —       16,146     —     16,146       —       16,146       (16,146 )     —   Total costs and expenses   8,037       2,987       61,792     8,019     80,835       21,204       102,039       (57,330 )     44,709   OTHER INCOME:                                   Interest income   —       2       3,489     33     3,524       5,891       9,415       (3,489 )     5,926   Miscellaneous   644       —       —     —     644       —       644       —       644   Total other income   644       2       3,489     33     4,168       5,891       10,059       (3,489 )     6,570   EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES   519       —       —     1,091     1,610       661       2,271       38,614       40,885   SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION   (7,444 )     (2,628 )     122,963     4,813     117,704       (14,652 )     103,052       (72,823 )     30,229   INCOME TAX PROVISION   —       —       —     —     —       (5,265 )     (5,265 )     —       (5,265 ) SEGMENT (LOSS) PROFIT/NET INCOME $ (7,444 )   $ (2,628 )   $ 122,963   $ 4,813   $ 117,704     $ (19,917 )   $ 97,787     $ (72,823 )   $ 24,964   (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.  (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.  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, 2026 (in thousands):   Three Months Ended June 30, 2026   Six Months Ended June 30, 2026 Segment profit from operations $ 121,022     $ 122,963   Less net income of management company attributed to the Great Park segment   6,781       11,526   Net income of the Great Park Venture   114,241       111,437   The Company’s share of net income of the Great Park Venture   42,840       41,789   Basis difference amortization, net   (3,175 )     (3,175 ) Equity in earnings from the Great Park Venture $ 39,665     $ 38,614     View source version on businesswire.com: https://www.businesswire.com/news/home/20260723800423/en/

View stock analysis, news, and events for Five Point Holdings, Llc