Five Point Holdings, LLC Q4 FY2025 earnings call

• Financial Results: 2025 was a record year with $183.5 million in consolidated net income, exceeding prior records. Net income for the year exceeded revised Q2 2025 guidance by ~$6 million.
• Entitlements: Secured critical approvals in Valencia and the Great Park, enhancing near-term cash flows. In Great Park, 100 acres of commercial land converted to homesites; in Valencia, entitlements for Entrada South and Valencia Commerce Center secured.
• Market Resilience: Great Park had strong homebuyer and builder demand, selling 920 homesites; Valencia secured entitlements despite modest home sales volumes.
• Balance Sheet: Refinanced senior notes, reduced debt by $175 million since Jan 2024, expanded revolving credit facility to $217.5 million, ended with $425 million cash and $643 million total liquidity.
• Community Updates: Great Park had 12 active selling programs with 8 planned; Valencia had 10 builder programs open, with 6 new programs expected in 2026.
• Hearthstone Acquisition: Acquired in Q3 2025, assets under management grew to $3.4 billion, contributed $11.8M in management fees and $3.5M in net income in 2025.

Great Park Neighborhoods: In the fourth quarter of 2025, builders sold 78 homes (down from 187 in Q3 due to seasonality and sold-out collections). Annually, it contributed significantly to the net income. For the year, Great Park Venture generated $825.7 million in revenues and $584.5 million in net income. Valencia: Closed an industrial land sale of 13.8 acres for $42.5 million. Home sales were modest, but secured entitlements to convert ~100 acres of commercial land to homesites, enhancing long-term value. Hearthstone: Assets under management grew from $2.6 billion at closing to $3.4 billion. In 2025, contributed $11.8 million in management fee revenue and $3.5 million in net income to Five Point's consolidated results.

• 2026 consolidated net income expected ~$100 million, weighted towards the second half as land sales and fee-based income accelerate.
• Expect to sell 20 acres of land in Valencia and 50 acres in the Great Park in 2026.
• Hearthstone assets under management expected to exceed $4 billion by end of 2026, with revenue and net income growing commensurately.

• Housing Market Challenges: Affordability constraints and elevated interest rates impacting homebuyer demand.
• Land Use Litigation: Potential challenges to new development projects due to historical land use litigation in California.
• Integration Risks: Ensuring smooth integration of the Hearthstone acquisition and leveraging its platform effectively.

Q: Asked about development expenditures in 2026 for Valencia and San Francisco.

A: Kim Tobler stated that development spending for both projects is expected to be ~$125 million, same as the current year, spread between the projects.

Q: Inquired about Great Park entitlement approvals.

A: Daniel Hedigan and Kim Tobler explained that 100 acres of commercial land at Great Park were converted to residential uses as part of the entitlement approvals, adding to the saleable acreage