Five Point Holdings, LLC Q3 FY2025 earnings call

• Dan Hedigan noted Q3 was a profitable quarter, with strong performance from the Great Park Venture. The company closed the acquisition of a 75% ownership interest in Hearthstone Residential Holdings, refinanced senior notes, and Moody's upgraded the corporate credit rating.
• Strategic priorities include optimizing home sites in premier communities, maintaining a lean operating structure, matching development expenditures with revenue, and pursuing selective growth via acquisitions/joint ventures.
• Updates on communities: Great Park had 187 homes sold, 6 active selling programs with more expected; Valencia had 50 homes sold, closed an industrial site sale and advanced regulatory approvals; San Francisco finalizing infrastructure engineering for next phase.
• Hearthstone integration: Expanding capital relationships, increasing builder deal flow, and integrating operational controls.

Consolidated net income for Five Point Holdings, LLC in the third quarter was $55.7 million. The Great Park Venture was a key driver, selling 326 homesites on 26.6 acres for an aggregate base purchase price of $257.7 million, resulting in net income for the venture of $201.6 million. Five Point's share of those earnings was $69.5 million, and the venture made distributions of $216 million, with Five Point receiving $81.8 million. The Great Park Venture contributed significantly to the overall financial performance, accounting for a major portion of the consolidated results.

• Anticipate improvement in buyer confidence if mortgage rates ease and affordability loosens.
• On track to meet net income consistent with 2024 earnings.
• Refinancing senior notes and upsizing revolving credit facility to strengthen balance sheet and position for long-term growth.

• Factors affecting future results include housing market conditions, interest rates, affordability challenges, and execution of strategic initiatives such as integrating Hearthstone and executing growth opportunities.

Q: Discussion on Hearthstone existing book of business and revenue stream.

A: Hearthstone has a 30-year history with disciplined underwriting, and no issues have been seen with the existing book of business. Near-term revenue is expected to grow as assets under management increase.

Q: Timeline for residential lot sales in Valencia.

A: Likely 2026, with monitoring of the market to ensure optimal pricing and timing.

Q: Book value per share.

A: Kim Tobler mentioned between $8-$10 initially, but later clarified regarding total shareholders' equity and diluted shares.

Q: Nonredeemable equity increase.

A: Temporary equity from the Hearthstone transaction related to the put call on the remaining 25% ownership, which will remain on the balance sheet until resolved.