Five Point Holdings, LLC Q1 FY2025 earnings call

• Q1 Results: Generated net income of $60.6 million, exceeding guidance by ~$10 million. Focused on generating revenue, controlling expenses, and managing capital spend.
• Great Park Venture: Completed 4 residential land sales totaling 325 homesites for $278.9 million. Received $143.3 million in distribution and incentive compensation payments.
• Liquidity: Ended Q1 with total liquidity of $653.3 million, including $528.3 million in cash and $125 million borrowing availability. Credit rating upgraded from S&P (B- to B, senior notes B to B+).
• Operating Strategy: Optimizing home site value in existing communities, managing fixed costs, matching development expenditures with revenue, and seeking growth via acquisitions, joint ventures, and strategic relationships.
• Market Conditions: Impact of tariff policies on interest rates, inflation, and consumer sentiment. California markets chronically undersupplied.
• Community Updates: Great Park had 15 active selling programs with 5 planned to open; Valencia had 7 active signed programs with 5 planned; San Francisco working on infrastructure and exploring strategic partner.

The Great Park Neighborhoods: In Q1, builders sold 233 homes vs 143 in Q4 2024. There were 15 active selling programs with 5 planned to open later. Land sales included 325 homesites on approximately 23.6 acres to three builders for an aggregate purchase price of $278.9 million. Equity and earnings from the Great Park Venture were $70.9 million, contributing significantly to net income. Valencia: Home sales remained relatively steady with 69 homes vs 74 in Q4 2024. There were 7 active signed programs with 5 planned to open. Two new communities with 159 homesites were taken to market, expected to close by year-end. San Francisco: Final approval to rebalance entitlements between Candlestick and The Shipyard. Working on engineering for next infrastructure phase, exploring strategic partner for mixed-use community.

• Expect ~$10 million net income in Q2, with balance of earnings weighted to end of year. - Full-year net income still expected close to $200 million, with monitoring of evolving market conditions. - Monitoring debt markets for refinance of senior notes, ready to act when prudent.

• Market uncertainty from shifting tariff policies, higher mortgage rates, and affordability issues. - Impact on consumer sentiment and home sales. - Regulatory approval timelines in California affecting development pace.

Q: Governor mentioned possible regulation changes to speed up housing, would it benefit developments?

A: Absolutely, anything to expedite process in California supports delivering housing.

Q: Any finite changes in rules/timelines?

A: Lots of discussion in Sacramento, but no concrete changes yet, monitoring activity.

Q: CapEx plans for San Francisco next year?

A: Likely to give insight towards end of year/early next year.

Q: Why not reduce debt with cash?

A: 200 basis point cost of paying down debt, earning over 4% on cash, monitoring markets for refinance when prudent.

Q: Great Park land sales pricing?

A: Blended number on last four sales ~$11.8 million, recent sales consistent with $11 million range.

Q: Timing for re-entitling commercial land in Irvine?

A: Ongoing discussions, no concrete time frame, more info later this year.

Q: Commercial land left entitled in Irvine?

A: ~100 acres of commercial land in four sites, using 85% efficiency.

Q: Refi plans and impact of fires?

A: Looking at all options, fires created need but sorting out impact on approvals; San Francisco work in progress with more to say later.