Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-38088 | |
Entity Registrant Name | Five Point Holdings, LLC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-0599397 | |
Entity Address, Address Line One | 15131 Alton Parkway | |
Entity Address, Address Line Two | 4th Floor | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92618 | |
City Area Code | 949 | |
Local Phone Number | 349-1000 | |
Title of 12(b) Security | Class A common shares | |
Trading Symbol | FPH | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001574197 | |
Current Fiscal Year End Date | --12-31 | |
Common Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 68,746,555 | |
Common Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 79,275,234 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
INVENTORIES | $ 1,810,697 | $ 1,696,084 |
INVESTMENT IN UNCONSOLIDATED ENTITIES | 537,125 | 532,899 |
PROPERTIES AND EQUIPMENT, NET | 32,265 | 31,677 |
INTANGIBLE ASSET, NET—RELATED PARTY | 87,107 | 95,917 |
CASH AND CASH EQUIVALENTS | 292,661 | 495,694 |
RESTRICTED CASH AND CERTIFICATES OF DEPOSIT | 1,739 | 1,403 |
RELATED PARTY ASSETS | 90,832 | 61,039 |
OTHER ASSETS | 24,619 | 9,179 |
TOTAL | 2,877,045 | 2,923,892 |
LIABILITIES | ||
Notes payable, net | 492,469 | 557,004 |
Accounts payable and other liabilities | 163,870 | 161,139 |
Related party liabilities | 128,850 | 178,540 |
Deferred income tax liability, net | 10,449 | 9,183 |
Payable pursuant to tax receivable agreement | 172,633 | 169,509 |
Total liabilities | 968,271 | 1,075,375 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
REDEEMABLE NONCONTROLLING INTEREST | 25,000 | 0 |
CAPITAL: | ||
Contributed capital | 564,199 | 556,521 |
Retained earnings | 47,107 | 33,811 |
Accumulated other comprehensive loss | (3,298) | (3,306) |
Total members’ capital | 608,008 | 587,026 |
Noncontrolling interests | 1,275,766 | 1,261,491 |
Total capital | 1,883,774 | 1,848,517 |
TOTAL | $ 2,877,045 | $ 2,923,892 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - shares | Jun. 30, 2019 | Dec. 31, 2018 |
Common Class A | ||
Common shares issued (in shares) | 68,746,555 | 66,810,980 |
Common shares outstanding (in shares) | 68,746,555 | 66,810,980 |
Common Class B | ||
Common shares issued (in shares) | 79,275,234 | 78,838,736 |
Common shares outstanding (in shares) | 79,275,234 | 78,838,736 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
REVENUES: | ||||
Revenue from customers | $ 12,046,000 | $ 12,599,000 | $ 24,821,000 | $ 26,860,000 |
Revenues | 12,387,000 | 13,090,000 | 25,460,000 | 28,057,000 |
COSTS AND EXPENSES: | ||||
Selling, general, and administrative | 25,993,000 | 29,015,000 | 51,766,000 | 57,611,000 |
Total costs and expenses | 34,671,000 | 36,937,000 | 69,961,000 | 75,050,000 |
OTHER INCOME: | ||||
Adjustment to payable pursuant to tax receivable agreement | 0 | 0 | 0 | 1,928,000 |
Interest income | 2,316,000 | 2,910,000 | 4,770,000 | 5,657,000 |
Gain on settlement of contingent consideration—related party | 0 | 0 | 64,870,000 | 0 |
Miscellaneous | 9,000 | 631,000 | 19,000 | 8,412,000 |
Total other income | 2,325,000 | 3,541,000 | 69,659,000 | 15,997,000 |
EQUITY IN (LOSS) EARNINGS FROM UNCONSOLIDATED ENTITIES | (2,669,000) | 9,003,000 | 6,213,000 | 5,396,000 |
(LOSS) INCOME BEFORE INCOME TAX (PROVISION) BENEFIT | (22,628,000) | (11,303,000) | 31,371,000 | (25,600,000) |
INCOME TAX (PROVISION) BENEFIT | 0 | 0 | (1,266,000) | 0 |
NET (LOSS) INCOME | (22,628,000) | (11,303,000) | 30,105,000 | (25,600,000) |
LESS NET (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (12,116,000) | (6,143,000) | 16,809,000 | (15,208,000) |
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY | $ (10,512,000) | $ (5,160,000) | $ 13,296,000 | $ (10,392,000) |
Common Class A | ||||
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE | ||||
Basic (in dollars per share) | $ (0.16) | $ (0.08) | $ 0.19 | $ (0.16) |
Diluted (in dollar per share) | $ (0.16) | $ (0.08) | $ 0.18 | $ (0.18) |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||
Basic (in shares) | 66,256,961 | 65,076,395 | 66,234,066 | 64,226,628 |
Diluted (in shares) | 66,256,961 | 65,076,395 | 145,403,189 | 144,853,566 |
Common Class B | ||||
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE | ||||
Basic (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted (in dollar per share) | $ 0 | $ 0 | $ 0 | $ 0 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||
Basic (in shares) | 79,275,234 | 79,794,047 | 79,169,124 | 80,602,759 |
Diluted (in shares) | 79,275,234 | 79,794,047 | 79,275,824 | 80,602,759 |
NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY PER CLASS B SHARE | ||||
Basic and diluted (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Land sales | ||||
REVENUES: | ||||
Revenue from customers | $ 10,000 | $ 3,000 | $ 65,000 | $ 52,000 |
COSTS AND EXPENSES: | ||||
Cost and expenses | 0 | 52,000 | 0 | 90,000 |
Land sales | Affiliated Entity | ||||
REVENUES: | ||||
Revenue from customers | 236,000 | 221,000 | 466,000 | 442,000 |
Management services—related party | ||||
COSTS AND EXPENSES: | ||||
Cost and expenses | 7,479,000 | 6,763,000 | 15,095,000 | 13,852,000 |
Management services—related party | Affiliated Entity | ||||
REVENUES: | ||||
Revenue from customers | 11,168,000 | 11,440,000 | 22,231,000 | 23,207,000 |
Operating properties | ||||
REVENUES: | ||||
Revenue from customers | 632,000 | 935,000 | 2,059,000 | 3,159,000 |
Revenues | 973,000 | 1,426,000 | 2,698,000 | 4,356,000 |
COSTS AND EXPENSES: | ||||
Cost and expenses | $ 1,199,000 | $ 1,107,000 | $ 3,100,000 | $ 3,497,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
NET (LOSS) INCOME | $ (22,628) | $ (11,303) | $ 30,105 | $ (25,600) |
OTHER COMPREHENSIVE INCOME: | ||||
Reclassification of actuarial loss on defined benefit pension plan included in net (loss) income | 35 | 21 | 70 | 43 |
Other comprehensive income before taxes | 35 | 21 | 70 | 43 |
INCOME TAX PROVISION RELATED TO OTHER COMPREHENSIVE INCOME | 0 | 0 | 0 | 0 |
OTHER COMPREHENSIVE INCOME—Net of tax | 35 | 21 | 70 | 43 |
COMPREHENSIVE (LOSS) INCOME | (22,593) | (11,282) | 30,175 | (25,557) |
LESS COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (12,103) | (6,135) | 16,835 | (15,191) |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY | $ (10,490) | $ (5,147) | $ 13,340 | $ (10,366) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Capital - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Contributed capital, beginning balance | $ 556,521 | ||||
Capital attributable to parent, beginning balance | 1,848,517 | ||||
Total members' capital, beginning balance | 587,026 | ||||
Capital including portion attributable to noncontrolling interest, beginning balance | $ 1,904,353 | $ 1,911,939 | 1,848,517 | $ 1,905,609 | |
Profit (Loss) | (22,628) | (11,303) | 30,105 | (25,600) | |
Adoption of accounting standards | $ 24,645 | ||||
Share-based compensation expense | 3,442 | 2,742 | 6,758 | 6,141 | |
Reacquisition of share-based compensation awards for tax-withholding purposes | (4,099) | (5,131) | |||
Other comprehensive income—net of tax | 35 | 21 | 70 | 43 | |
Contribution from noncontrolling interest and related sale of Class B common shares | 5,547 | ||||
Redemption of noncontrolling interests | 0 | 26,675 | |||
Adjustment to liability recognized under tax receivable agreement—net of tax | (1,428) | (15,172) | (3,124) | (17,480) | |
Contributed capital, ending balance | 564,199 | 564,199 | |||
Capital attributable to parent, ending balance | 1,883,774 | 1,883,774 | |||
Total members' capital, ending balance | 608,008 | 608,008 | |||
Capital including portion attributable to noncontrolling interest, ending balance | $ 1,883,774 | $ 1,888,227 | $ 1,883,774 | $ 1,888,227 | |
Class A Common Shares | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common shares outstanding, beginning balance (in shares) | 66,810,980 | ||||
Common shares outstanding, ending balance (in shares) | 68,746,555 | 68,746,555 | |||
Class B Common Shares | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common shares outstanding, beginning balance (in shares) | 78,838,736 | ||||
Common shares outstanding, ending balance (in shares) | 79,275,234 | 79,275,234 | |||
Common Stock | Class A Common Shares | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common shares outstanding, beginning balance (in shares) | 68,746,555 | 64,268,027 | 66,810,980 | 62,314,850 | |
Reacquisition of share-based compensation awards for tax-withholding purposes (in shares) | (296,392) | (68,886) | |||
Settlement of restricted share units for Class A common shares | 337,799 | 319,783 | |||
Issuance of share-based compensation awards, net of forfeitures (in shares) | (3,371) | 1,894,168 | 1,653,467 | ||
Redemption of noncontrolling interests (in shares) | 2,273,196 | 2,318,638 | |||
Common shares outstanding, ending balance (in shares) | 68,746,555 | 66,537,852 | 68,746,555 | 66,537,852 | |
Common Stock | Class B Common Shares | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Common shares outstanding, beginning balance (in shares) | 79,275,234 | 81,418,003 | 78,838,736 | 81,463,433 | |
Contribution from noncontrolling interest and related sale of Class B common shares (in shares) | 436,498 | ||||
Redemption of noncontrolling interests (in shares) | (2,272,516) | (2,317,946) | |||
Common shares outstanding, ending balance (in shares) | 79,275,234 | 79,145,487 | 79,275,234 | 79,145,487 | |
Contributed Capital | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Contributed capital, beginning balance | $ 562,185 | $ 535,900 | $ 556,521 | $ 530,015 | |
Share-based compensation expense | 3,442 | 2,742 | 6,758 | 6,141 | |
Reacquisition of share-based compensation awards for tax-withholding purposes | (4,099) | (5,131) | |||
Contribution from noncontrolling interest and related sale of Class B common shares | 3 | ||||
Redemption of noncontrolling interests | 25,948 | 26,765 | |||
Adjustment to liability recognized under tax receivable agreement—net of tax | (1,428) | (15,172) | (3,124) | (17,480) | |
Adjustment of noncontrolling interest in the Operating Company | (15) | 8,140 | 9,093 | ||
Contributed capital, ending balance | 564,199 | 549,403 | 564,199 | 549,403 | |
Retained Earnings | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Capital attributable to parent, beginning balance | 57,619 | 63,293 | 33,811 | 57,841 | |
Profit (Loss) | (10,512) | (5,160) | 13,296 | (10,392) | |
Adoption of accounting standards | 10,684 | ||||
Capital attributable to parent, ending balance | 47,107 | 58,133 | 47,107 | 58,133 | |
Accumulated Other Comprehensive Loss | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Capital attributable to parent, beginning balance | (3,320) | (2,474) | (3,306) | (2,455) | |
Other comprehensive income—net of tax | 22 | 13 | 44 | 26 | |
Redemption of noncontrolling interests | (89) | (90) | |||
Adjustment of noncontrolling interest in the Operating Company | 0 | (36) | (31) | ||
Capital attributable to parent, ending balance | (3,298) | (2,550) | (3,298) | (2,550) | |
Total Members’ Capital | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Total members' capital, beginning balance | 616,484 | 596,719 | 587,026 | 585,401 | |
Profit (Loss) | (10,512) | (5,160) | 13,296 | (10,392) | |
Adoption of accounting standards | 10,684 | ||||
Share-based compensation expense | 3,442 | 2,742 | 6,758 | 6,141 | |
Reacquisition of share-based compensation awards for tax-withholding purposes | (4,099) | (5,131) | |||
Other comprehensive income—net of tax | 22 | 13 | 44 | 26 | |
Contribution from noncontrolling interest and related sale of Class B common shares | 3 | ||||
Redemption of noncontrolling interests | 25,859 | 26,675 | |||
Adjustment to liability recognized under tax receivable agreement—net of tax | (1,428) | (15,172) | (3,124) | (17,480) | |
Adjustment of noncontrolling interest in the Operating Company | (15) | 8,104 | 9,062 | ||
Total members' capital, ending balance | 608,008 | 604,986 | 608,008 | 604,986 | |
Noncontrolling Interests | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Capital attributable to noncontrolling interests, beginning balance | 1,287,869 | 1,315,220 | 1,261,491 | 1,320,208 | |
Profit (Loss) | (12,116) | (6,143) | 16,809 | (15,208) | |
Adoption of accounting standards | $ 13,961 | ||||
Other comprehensive income—net of tax | 13 | 8 | 26 | 17 | |
Contribution from noncontrolling interest and related sale of Class B common shares | 5,544 | ||||
Redemption of noncontrolling interests | (25,859) | (26,675) | |||
Adjustment of noncontrolling interest in the Operating Company | 15 | (8,104) | (9,062) | ||
Capital attributable to noncontrolling interests, ending balance | $ 1,275,766 | $ 1,283,241 | $ 1,275,766 | $ 1,283,241 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Capital (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other comprehensive income, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Tax related to adjustments to liability recognized under tax receivable agreement | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
NET (LOSS) INCOME | $ 30,105,000 | $ (25,600,000) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Equity in earnings from unconsolidated entities | (6,213,000) | (5,396,000) |
Deferred income taxes | 1,266,000 | 0 |
Depreciation and amortization | 11,136,000 | 7,812,000 |
Noncash adjustment of payable pursuant to tax receivable agreement | 0 | (1,928,000) |
Gain on settlement of contingent consideration—related party | (64,870,000) | 0 |
Gain on sale of golf course operating properties | 0 | (6,700,000) |
Gain on insurance proceeds for damaged property | 0 | (1,550,000) |
Share-based compensation | 6,758,000 | 6,141,000 |
Changes in operating assets and liabilities: | ||
Inventories | (113,838,000) | (129,388,000) |
Related party assets | (11,679,000) | (10,165,000) |
Other assets | (5,135,000) | (960,000) |
Accounts payable and other liabilities | (8,624,000) | 2,482,000 |
Related party liabilities | (3,631,000) | 306,000 |
Net cash used in operating activities | (164,725,000) | (164,946,000) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Distribution from Gateway Commercial Venture | 1,987,000 | 0 |
Purchase of indirect Legacy Interest in Great Park Venture—related party | 0 | (1,762,000) |
Proceeds from sale of golf course operating property | 0 | 5,685,000 |
Proceeds from insurance on damaged property | 0 | 1,601,000 |
Purchase of properties and equipment | (1,277,000) | (352,000) |
Net cash provided by investing activities | 710,000 | 5,172,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payment on settlement note | 0 | (5,000,000) |
Principal payment on Macerich note | (65,130,000) | 0 |
Reacquisition of share-based compensation awards for tax-withholding purposes | (4,099,000) | (5,131,000) |
Proceeds from issuance of Class B common shares | 3,000 | 0 |
Contribution from noncontrolling interest | 5,544,000 | 0 |
Proceeds from issuance of redeemable noncontrolling interest | 25,000,000 | 0 |
Net cash used in financing activities | (38,682,000) | (10,131,000) |
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (202,697,000) | (169,905,000) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—Beginning of period | 497,097,000 | 849,945,000 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH—End of period | $ 294,400,000 | $ 680,040,000 |
Business and Organization
Business and Organization | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | BUSINESS AND ORGANIZATION Five Point Holdings, LLC, a Delaware limited liability company (the “Holding Company” and, together with its consolidated subsidiaries, the “Company”), is an owner and developer of mixed-use, master-planned communities in California. The Holding Company owns all of its assets and conducts all of its operations through Five Point Operating Company, LP, a Delaware limited partnership (the “Operating Company”), and its subsidiaries. The Company has two classes of shares outstanding: Class A common shares and Class B common shares. Holders of Class A common shares and holders of Class B common shares are entitled to one vote for each share held of record on all matters submitted to a vote of shareholders, and are both entitled to receive distributions at the same time. However, the distributions paid to holders of our Class B common shares are in an amount per share equal to 0.0003 multiplied by the amount paid per Class A common share. The diagram below presents a simplified depiction of the Company’s current organizational structure as of June 30, 2019 : (1) A wholly owned subsidiary of the Holding Company serves as the sole managing general partner of the Operating Company. As of June 30, 2019 , the Company owned approximately 62.4% of the outstanding Class A Common Units of the Operating Company. After a one year holding period, a holder of Class A Common Units of the Operating Company can exchange the units for, at the Company’s option, either Class A common shares of the Holding Company, on a one -for-one basis, or cash equal to the fair market value of such shares. Assuming the exchange of all outstanding Class A Common Units of the Operating Company and all outstanding Class A units of The Shipyard Communities, LLC, a Delaware limited liability company (the “San Francisco Venture”) (see (2) below), that are not held by the Company, based on the closing price of the Company’s Class A common shares on July 31, 2019 ( $7.81 ), the equity market capitalization of the Company was approximately $1.2 billion . (2) The Operating Company owns all of the outstanding Class B units of the San Francisco Venture, the entity developing the Candlestick and The San Francisco Shipyard communities. The Class A units of the San Francisco Venture, which the Operating Company does not own, are intended to be economically equivalent to Class A Common Units of the Operating Company. As the holder of all outstanding Class B units, the Operating Company is entitled to receive 99% of available cash from the San Francisco Venture after the holders of Class A units in the San Francisco Venture have received distributions equivalent to the distributions, if any, paid on Class A Common Units of the Operating Company. Class A units of the San Francisco Venture can be exchanged, on a one -for-one basis, for Class A Common Units of the Operating Company (See Note 5). (3) Together, the Operating Company, Five Point Communities, LP, a Delaware limited partnership (“FP LP”), and Five Point Communities Management, Inc., a Delaware corporation (“FP Inc.” and together with FP LP, the “Management Company”) own 100% of Five Point Land, LLC, a Delaware limited liability company (“FPL”), the entity developing Valencia (formerly known as Newhall Ranch), a master-planned community located in northern Los Angeles County, California. The Operating Company has a controlling interest in the Management Company. (4) Interests in Heritage Fields LLC, a Delaware limited liability company (the “Great Park Venture”), are either “Percentage Interests” or “Legacy Interests.” Holders of the Legacy Interests are entitled to receive priority distributions in an amount up to $565.0 million , of which $355.0 million had been distributed as of July 31, 2019 . The Company owns a 37.5% Percentage Interest in the Great Park Venture and serves as its administrative member. However, management of the Great Park Venture is vested in the four voting members, who have a total of five votes. Major decisions generally require the approval of at least 75% of the votes of the voting members. The Company has two votes, and the other three voting members each have one vote, so the Company is unable to approve any major decision without the consent or approval of at least two of the other voting members. The Company does not include the Great Park Venture as a consolidated subsidiary, but rather as an equity method investee in its consolidated financial statements. (5) The Company owns a 75% interest in Five Point Office Venture Holdings I, LLC, a Delaware limited liability company (the “Gateway Commercial Venture”). The Gateway Commercial Venture owns approximately 73 acres of commercial land in the Great Park Neighborhoods, on which four buildings have been newly constructed with an aggregate of approximately one million square feet of research and development and office space (the “Five Point Gateway Campus”). The Company manages the Gateway Commercial Venture, however, the manager’s authority is limited. Major decisions by the Gateway Commercial Venture generally require unanimous approval by an executive committee composed of two people designated by the Company and two people designated by another investor. Some decisions require approval by all of the members of the Gateway Commercial Venture. The Company does not include the Gateway Commercial Venture as a consolidated subsidiary, but rather as an equity method investee in its consolidated financial statements. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Principles of consolidation —The accompanying condensed consolidated financial statements include the accounts of the Holding Company and the accounts of all subsidiaries in which the Holding Company has a controlling interest and the consolidated accounts of variable interest entities (“VIEs”) in which the Holding Company is deemed to be the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. Unaudited interim financial information —The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. In the opinion of management, all adjustments (including normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the full year. Use of estimates —The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management evaluates its estimates on an ongoing basis and makes revisions to these estimates and related disclosures as experience develops or new information becomes known. Actual results could differ from those estimates. Miscellaneous other income —Miscellaneous other income consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Gain on sale of golf club operating property $ — $ — $ — $ 6,700 Gain on insurance claims — 550 — 1,550 Net periodic pension benefit 9 81 19 162 Total miscellaneous other income $ 9 $ 631 $ 19 $ 8,412 In January 2018, the Tournament Players Club at Valencia Golf Course was sold for net cash proceeds of $5.7 million , and the buyer assumed certain liabilities, including certain club membership related liabilities. The Company recognized a gain of $6.7 million as a result of the sale and such gain is included in miscellaneous other income in the condensed consolidated statement of operations for the six months ended June 30, 2018. Recently issued accounting pronouncements —In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU No. 2016-13”) which amends the guidance on the impairment of financial instruments, including most debt instruments, trade receivables, contract assets, and loans. ASU No. 2016-13 adds to U.S. GAAP an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses for instruments measured at amortized cost, resulting in a net presentation of the amount expected to be collected on the financial asset. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU No. 2016-13 on its consolidated financial statements. Recently adopted accounting pronouncements —In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU No. 2018-07”) which simplifies the accounting of share-based payments granted to nonemployees for goods and services. Under ASU No. 2018-07, most of the guidance on such payments to nonemployees is aligned with the requirements for share-based payments granted to employees, including the determination of the measurement date. The Company adopted ASU No. 2018-07 on January 1, 2019 with no material impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). This ASU generally requires that lessees recognize right-of-use ("ROU") assets and lease liabilities on the balance sheet for operating and financing leases and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The FASB has issued multiple clarifications and updates since ASU No. 2016-02 that include, but are not limited to, the ability to elect practical expedients upon transition. The Company adopted ASU No. 2016-02 and the related ASUs that formed ASC Topic 842, Leases, on January 1, 2019 using the modified retrospective approach. Consequently, comparative prior periods presented in financial statements after adoption will continue to be in accordance with historical U.S. GAAP (Topic 840, Leases) . Upon transition, the Company elected the package of practical expedients, whereby the Company did not reassess whether existing contracts contain leases, the lease classification of existing leases and initial direct costs associated with those leases. The impact of adopting the new guidance primarily relates to (i) the recognition of ROU assets and lease liabilities for operating leases, and (ii) the requirement to provide more robust disclosure on the nature of the Company’s leases, cash flow impacts arising from leases and significant assumptions or judgments used by management to determine whether a contract contains a lease as well as a determination of the discount rate for a lease. The adoption of ASU No. 2016-02 did not have a material impact on the Company's consolidated statement of operations and statement of cash flows. The cumulative effect of the changes made to the Company’s consolidated January 1, 2019 balance sheet from the adoption of the new lease guidance was as follows (in thousands): Balance at December 31, 2018 Adjustments due to ASU No. 2016-02 Balance at January 1, 2019 ASSETS Related party assets $ 61,039 $ 18,811 $ 79,850 Other assets 9,179 11,425 20,604 LIABILITIES Accounts payable and other liabilities 161,139 11,425 172,564 Related party liabilities 178,540 18,811 197,351 |
Revenues
Revenues | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | REVENUES The following tables present the Company’s consolidated revenues disaggregated by revenue source and reporting segment (see Note 14) (in thousands): Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Valencia San Francisco Great Park Commercial Total Valencia San Francisco Great Park Commercial Total Land sales $ 24 $ 222 $ — $ — $ 246 $ 88 $ 443 $ — $ — $ 531 Management services — 573 10,437 158 11,168 — 1,271 20,833 127 22,231 Operating properties 455 177 — — 632 1,708 351 — — 2,059 479 972 10,437 158 12,046 1,796 2,065 20,833 127 24,821 Operating properties leasing revenues 341 — — — 341 639 — — — 639 $ 820 $ 972 $ 10,437 $ 158 $ 12,387 $ 2,435 $ 2,065 $ 20,833 $ 127 $ 25,460 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Valencia San Francisco Great Park Commercial Total Valencia San Francisco Great Park Commercial Total Land sales $ 3 $ 221 $ — $ — $ 224 $ 52 $ 442 $ — $ — $ 494 Management services — 1,432 9,918 90 11,440 — 3,052 19,975 180 23,207 Operating properties 748 187 — — 935 2,791 368 — — 3,159 751 1,840 9,918 90 12,599 2,843 3,862 19,975 180 26,860 Operating properties leasing revenues 491 — — — 491 1,197 — — — 1,197 $ 1,242 $ 1,840 $ 9,918 $ 90 $ 13,090 $ 4,040 $ 3,862 $ 19,975 $ 180 $ 28,057 The opening and closing balances of the Company’s contract assets for the six months ended June 30, 2019 were $50.6 million and $63.4 million , respectively. The increase of $12.8 million between the opening and closing balances of the Company’s contract assets primarily results from a timing difference between the Company’s recognition of revenue earned for the performance of management services and no contractual payments due from the customer during the period. The Company’s opening and closing contract liabilities for the six months ended June 30, 2019 were insignificant. As of June 30, 2019 , the aggregate amount of the transaction price allocated to the Company’s partially unsatisfied performance obligations associated with the development management agreement with the Great Park Venture was $52.4 million |
Investment In Unconsolidated En
Investment In Unconsolidated Entities | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Entities | INVESTMENT IN UNCONSOLIDATED ENTITIES Great Park Venture The Great Park Venture has two classes of interests—“Percentage Interests” and “Legacy Interests.” Legacy Interest holders are entitled to receive priority distributions in an aggregate amount equal to $476.0 million and up to an additional $89.0 million from subsequent distributions of cash depending on the performance of the Great Park Venture. The holders of the Percentage Interests will receive all other distributions. The Operating Company owns 37.5% of the Great Park Venture’s Percentage Interests as of June 30, 2019 . The Great Park Venture has made distributions to the holders of Legacy Interests in the aggregate amount of $355.0 million as of June 30, 2019 . The Great Park Venture is the owner of Great Park Neighborhoods, a mixed-use, master planned community located in Orange County, California. The Company, through the Management Company, manages the planning, development and sale of the Great Park Neighborhoods and supervises the day-to-day affairs of the Great Park Venture. The Great Park Venture is managed by an executive committee of representatives appointed by only the holders of Percentage Interests. The Company does not control the actions of the executive committee. During the six months ended June 30, 2019, the Great Park Venture recognized $130.0 million in land sale revenues to a related party of the Company and $62.6 million in land sale revenues to third parties, of which $31.0 million relates to homesites sold to a land banking entity whereby a related party of the Company has retained the option to acquire these homesites in the future from the land bank entity. The cost of the Company’s investment in the Great Park Venture is higher than the Company’s underlying equity in the carrying value of net assets of the Great Park Venture (basis difference). The Company’s earnings from the equity method investment are adjusted by amortization and accretion of the basis differences as the assets (mainly inventory) and liabilities that gave rise to the basis difference are sold, settled or amortized. The following table summarizes the statements of operations of the Great Park Venture for the six months ended June 30, 2019 and 2018 (in thousands): Six Months Ended June 30, 2019 2018 Land sale revenues $ 192,579 $ 171,013 Cost of land sales (128,968 ) (118,113 ) Other costs and expenses (32,036 ) (30,169 ) Net income of Great Park Venture $ 31,575 $ 22,731 The Company’s share of net income $ 11,841 $ 8,524 Basis difference amortization (3,893 ) (3,652 ) Equity in earnings from Great Park Venture $ 7,948 $ 4,872 The following table summarizes the balance sheet data of the Great Park Venture and the Company’s investment balance as of June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Inventories $ 968,643 $ 1,059,717 Cash and cash equivalents 175,923 60,663 Receivable and other assets 41,063 33,836 Total assets $ 1,185,629 $ 1,154,216 Accounts payable and other liabilities $ 152,647 $ 152,809 Redeemable Legacy Interests 209,967 209,967 Capital (Percentage Interest) 823,015 791,440 Total liabilities and capital $ 1,185,629 $ 1,154,216 The Company’s share of capital in Great Park Venture $ 308,631 $ 296,790 Unamortized basis difference 124,970 128,863 The Company’s investment in the Great Park Venture $ 433,601 $ 425,653 Gateway Commercial Venture The Company owns a 75% interest in the Gateway Commercial Venture as of June 30, 2019 . The Gateway Commercial Venture is governed by an executive committee in which the Company is entitled to appoint two individuals. One of the other members of the Gateway Commercial Venture is also entitled to appoint two individuals to the executive committee. The unanimous approval of the executive committee is required for certain matters, which limits the Company’s ability to control the Gateway Commercial Venture. However, the Company is able to exercise significant influence and therefore accounts for its investment in the Gateway Commercial Venture using the equity method. The Company is the manager of the Gateway Commercial Venture, with responsibility to manage and administer its day-to-day affairs and implement a business plan approved by the executive committee. The Gateway Commercial Venture owns the Five Point Gateway Campus located in Irvine, California and acquired the Five Point Gateway Campus through debt and capital funding. The debt obtained by the Gateway Commercial Venture is non-recourse to the Company other than in the case of customary “bad act” exceptions or bankruptcy or insolvency events. The Company and a related party of the Company separately lease office space at the Five Point Gateway Campus, and during the six months ended June 30, 2019 , the Gateway Commercial Venture recognized $4.0 million in rental revenues from those leasing arrangements. The following table summarizes the statements of operations of the Gateway Commercial Venture for the six months ended June 30, 2019 and 2018 (in thousands): Six Months Ended June 30, 2019 2018 Rental revenues $ 17,134 $ 12,946 Rental operating and other expenses (3,217 ) (1,868 ) Depreciation and amortization (7,542 ) (5,669 ) Interest expense (8,689 ) (4,710 ) Net (loss) income of Gateway Commercial Venture $ (2,314 ) $ 699 Equity in (loss) earnings from Gateway Commercial Venture $ (1,735 ) $ 524 The following table summarizes the balance sheet data of the Gateway Commercial Venture and the Company’s investment balance as of June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Real estate and related intangible assets, net $ 459,053 $ 464,123 Other assets 17,674 14,833 Total assets $ 476,727 $ 478,956 Notes payable, net $ 300,157 $ 295,440 Other liabilities 38,538 40,521 Members’ capital 138,032 142,995 Total liabilities and capital $ 476,727 $ 478,956 The Company’s investment in the Gateway Commercial Venture $ 103,524 $ 107,246 |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | NONCONTROLLING INTERESTS The Holding Company’s wholly owned subsidiary is the managing general partner of the Operating Company. At June 30, 2019 , the Holding Company and its wholly owned subsidiary owned approximately 62.4% of the outstanding Class A Common Units and 100% of the outstanding Class B Common Units of the Operating Company. The Holding Company consolidates the financial results of the Operating Company and its subsidiaries and records a noncontrolling interest for the remaining 37.6% of the outstanding Class A Common Units of the Operating Company. After a 12 month holding period, holders of Class A Common Units of the Operating Company may exchange their units for, at the Company’s option, either (i) Class A common shares on a one -for-one basis (subject to adjustment in the event of share splits, distributions of shares, warrants or share rights, specified extraordinary distributions and similar events), or (ii) cash in an amount equal to the market value of such shares at the time of exchange. Whether such units are acquired by the Company in exchange for Class A common shares or for cash, if the holder also owns Class B common shares, then an equal number of that holder’s Class B common shares will automatically convert into Class A common shares, at a ratio of 0.0003 Class A common shares for each Class B common share. This exchange right is currently exercisable by all holders of outstanding Class A Common Units of the Operating Company. The San Francisco Venture has three classes of units—Class A, Class B and Class C units. The Operating Company owns all of the outstanding Class B units of the San Francisco Venture. All of the outstanding Class A units are owned by affiliates of Lennar Corporation (“Lennar”) and affiliates of Castlelake, LP (“Castlelake”). The Class A units of the San Francisco Venture are intended to be substantially economically equivalent to the Class A Common Units of the Operating Company. The Class A units of the San Francisco Venture represent noncontrolling interests to the Operating Company. Holders of Class A units of the San Francisco Venture can redeem their units at any time and receive Class A Common Units of the Operating Company on a one -for-one basis (subject to adjustment in the event of share splits, distributions of shares, warrants or share rights, specified extraordinary distributions and similar events). If a holder requests a redemption of Class A units that would result in the Holding Company’s ownership of the Operating Company falling below 50.1% , the Holding Company has the option of satisfying the redemption with Class A common shares instead. The Company also has the option, at any time, to acquire outstanding Class A units of the San Francisco Venture in exchange for Class A Common Units of the Operating Company. The 12 month holding period for any Class A Common Units of the Operating Company issued in exchange for Class A units of the San Francisco Venture is calculated by including the period that such Class A units of the San Francisco Venture were owned. This exchange right is currently exercisable by substantially all holders of outstanding Class A units of the San Francisco Venture. Concurrent with the termination of the Retail Project (defined in Note 8), the San Francisco Venture issued 436,498 Class A units (and the Holding Company issued 436,498 of its Class B common shares) to, and received a contribution of $5.5 million from, the holders of Class A units of the San Francisco Venture. On February 13, 2019, the San Francisco Venture issued $25.0 million of new Class C units to an affiliate of Lennar in exchange for a contribution of $25.0 million to the San Francisco Venture. Provided that Lennar completes the construction of a certain number of new homes in Candlestick as contemplated under purchase and sale agreements with the Company, the San Francisco Venture is required to redeem the Class C units if and when the Company receives reimbursements from the Mello-Roos communities facilities district formed for the development, in an aggregate amount equal to 50% of any reimbursements up to a maximum amount of $25.0 million . The San Francisco Venture also maintains the ability to redeem the then outstanding balance of Class C units for cash at any time. Upon a liquidation of the San Francisco Venture, the holders of Class C Units are entitled to a liquidation preference in an aggregate amount equal to 50% of the cumulative amount of reimbursements received, less the aggregate amount previously paid to redeem Class C units. The maximum amount payable by the San Francisco Venture pursuant to redemptions or liquidation of the Class C units is $25.0 million . The holders of Class C units are not entitled to receive any other forms of distributions and are not entitled to any voting rights. In connection with the issuance of the Class C units, the San Francisco Venture agreed to spend $25.0 million on the development of infrastructure and/or parking facilities at the Company’s Candlestick development. At June 30, 2019 , $25.0 million of Class C units are outstanding and is included in redeemable noncontrolling interest on the condensed consolidated balance sheet. Net (loss) income attributable to the noncontrolling interests on the condensed consolidated statements of operations represents the portion of earnings attributable to the economic interest in the Company held by the noncontrolling interests. The Company allocates (loss) income to noncontrolling interests based on the substantive profit sharing provisions of the applicable operating agreements. With each exchange of Class A Common Units of the Operating Company for Class A common shares, the Holding Company’s percentage ownership interest in the Operating Company and its share of the Operating Company’s cash distributions and profits and losses will increase. Additionally, other issuances of common shares of the Holding Company or common units of the Operating Company results in changes to the noncontrolling interest percentage as well as the total net assets of the Company. As a result, all equity transactions result in an allocation between members’ capital and the noncontrolling interest in the Company’s consolidated balance sheets and statements of capital to account for the changes in the noncontrolling interest ownership percentage as well as the change in total net assets of the Company. During the six months ended June 30, 2019 , the Holding Company increased its ownership interest in the Operating Company as a result of equity transactions related to the Company’s share-based compensation plan. During the six months ended June 30, 2018 , the Holding Company increased its ownership interest in the Operating Company as a result of equity transactions related to the Company’s share-based compensation plan and exchanges of Class A Common Units of the Operating Company for Class A common shares. The carrying amount of the Company’s noncontrolling interest has been adjusted to reflect these changes in ownership interests. |
Consolidated Variable Interest
Consolidated Variable Interest Entity | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated Variable Interest Entity | CONSOLIDATED VARIABLE INTEREST ENTITY The Holding Company conducts all of its operations through the Operating Company, a consolidated VIE, and as a result, substantially all of the Company’s assets and liabilities represent the assets and liabilities of the Operating Company, other than items attributed to income taxes and the tax receivable agreement (“TRA”) related obligation, which was $172.6 million and $169.5 million at June 30, 2019 and December 31, 2018 , respectively. The Operating Company has investments in, and consolidates the assets and liabilities of, the San Francisco Venture, FP LP and FPL, all of which have also been determined to be VIEs. The San Francisco Venture is a VIE as the other members of the venture, individually or as a group, are not able to exercise kick-out rights or substantive participating rights. The Company applied the variable interest model and determined that it is the primary beneficiary of the San Francisco Venture and, accordingly, the San Francisco Venture is consolidated in its results. In making that determination, the Company evaluated that the Operating Company has unilateral and unconditional power to make decisions in regards to the activities that significantly impact the economics of the VIE, which are the development of properties, marketing and sale of properties, acquisition of land and other real estate properties and obtaining land ownership or ground lease for the underlying properties to be developed. The Company is determined to have more-than-insignificant economic benefit from the San Francisco Venture because the Operating Company can prevent or cause the San Francisco Venture from making distributions on its units, and the Operating Company would receive 99% of any such distributions (assuming no distributions had been paid on the Class A Common Units of the Operating Company). In addition, the San Francisco Venture is only allowed to make a capital call on the Operating Company and not any other interest holders, which could be a significant financial risk to the Operating Company. As of June 30, 2019 , the San Francisco Venture had total combined assets of $1,178.2 million , primarily comprised of $1,164.1 million of inventories, $1.6 million in related party assets and $4.0 million in cash and total combined liabilities of $128.6 million , including $102.7 million in related party liabilities. As of December 31, 2018 , the San Francisco Venture had total combined assets of $1,151.4 million , primarily comprised of $1,137.0 million of inventories and $12.3 million in cash and total combined liabilities of $260.8 million , including $168.9 million in related party liabilities and $65.1 million in notes payable. Those assets are owned by, and those liabilities are obligations of, the San Francisco Venture, not the Company. The San Francisco Venture is not a guarantor of the Company’s obligations, and the assets held by the San Francisco Venture may only be used as collateral for the San Francisco Venture’s debt. The creditors of the San Francisco Venture do not have recourse to the assets of the Operating Company, as the VIE’s primary beneficiary, or of the Holding Company. The Company and other partners do not generally have an obligation to make capital contributions to the San Francisco Venture. In addition, there are no liquidity arrangements or agreements to fund capital or purchase assets that could require the Company to provide financial support to the San Francisco Venture. The Company does not guarantee any debt of the San Francisco Venture. However, the Operating Company has guaranteed the performance of payment by the San Francisco Venture in accordance with the redemption terms of the Class C units of the San Francisco Venture (see Note 5). FP LP and FPL are VIEs because the other partners or members have disproportionately fewer voting rights, and substantially all of the activities of the entities are conducted on behalf of the other partners or members and their related parties. The Operating Company, or a wholly owned subsidiary of the Operating Company, is the primary beneficiary of FP LP and FPL. As of June 30, 2019 , FP LP and FPL had combined assets of $842.3 million , primarily comprised of $646.6 million of inventories, $87.1 million of intangibles, $65.1 million in related party assets and $0.2 million in cash, and total combined liabilities of $128.6 million , including $119.2 million in accounts payable and other liabilities and $9.4 million in related party liabilities. As of December 31, 2018 , FP LP and FPL had combined assets of $745.3 million , primarily comprised of $559.1 million of inventories, $95.9 million of intangibles, $54.3 million in related party assets and $0.1 million in cash, and total combined liabilities of $118.1 million , including $108.6 million in accounts payable and other liabilities and $9.5 million in related party liabilities. The Company evaluates its primary beneficiary designation on an ongoing basis and assesses the appropriateness of the VIE’s status when events have occurred that would trigger such an analysis. During the six months ended June 30, 2019 and 2018 |
Intangible Asset, Net - Related
Intangible Asset, Net - Related Party | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Asset, Net - Related Party | INTANGIBLE ASSET, NET—RELATED PARTY The intangible asset relates to the contract value of the incentive compensation provisions of the Management Company’s development management agreement, as amended and restated (“A&R DMA”), with the Great Park Venture. The A&R DMA has an original term commencing on December 29, 2010 and ending on December 31, 2021, with options to renew at the mutual agreement of terms and provisions by both the Company and the Great Park Venture for three additional years and then two additional years. The intangible asset will be amortized over the contract period based on the pattern in which the economic benefits are expected to be received. The carrying amount and accumulated amortization of the intangible asset as of June 30, 2019 and December 31, 2018 were as follows (in thousands): June 30, 2019 December 31, 2018 Gross carrying amount $ 129,705 $ 129,705 Accumulated amortization (42,598 ) (33,788 ) Net book value $ 87,107 $ 95,917 Amortization expense, as a result of revenue recognition attributable to incentive compensation, was $4.5 million and $8.8 million for the three and six months ended June 30, 2019 , respectively and $3.7 million and $7.4 million for the three and six months ended June 30, 2018 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Related party assets and liabilities included in the Company’s condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 consisted of the following (in thousands): June 30, 2019 December 31, 2018 Related Party Assets: Contract assets (see Note 3) $ 61,502 $ 49,834 Prepaid rent — 5,972 Operating lease right-of-use asset (see Note 2 and Note 11) 24,086 — Other 5,244 5,233 $ 90,832 $ 61,039 Related Party Liabilities: EB-5 loan reimbursements $ 102,692 $ 102,692 Contingent consideration—Mall Venture project property — 64,870 Payable to holders of Management Company’s Class B interests 9,000 9,000 Operating lease liability (see Note 2 and Note 11) 16,785 — Other 373 1,978 $ 128,850 $ 178,540 Contingent Consideration to Class A Members of the San Francisco Venture Prior to the Company’s acquisition of The San Francisco Venture, The San Francisco Venture completed a separation transaction (the “Separation Transaction”) pursuant to an Amended and Restated Separation and Distribution Agreement (“Separation Agreement”) in which the equity interests in a subsidiary of the San Francisco Venture known as CPHP Development, LLC (“CPHP”) were distributed directly to the members of the San Francisco Venture: (i) an affiliate of Lennar and (ii) an affiliate of Castlelake. The terms of the Separation Agreement included the following: • CPHP was transferred certain acres of land where homes were being built, as well as all responsibility for current and future residential construction on the land; • Once a final subdivision map was recorded, title to a parking structure parcel at Candlestick (“CP Parking Parcel”) was to be conveyed to CPHP, and CPHP was to assume the obligation to construct the parking structure and certain other improvements at Candlestick; • CPHP was transferred the membership interest in Candlestick Retail Member, LLC, (“Mall Venture Member”), the entity that had entered into a joint venture (“Mall Venture”) with CAM Candlestick LLC (the “Macerich Member”) to build a fashion outlet retail shopping center (“Retail Project”) above and adjacent to the parking structure that CPHP was to construct on the CP Parking Parcel; and • Once a final subdivision map was recorded, the San Francisco Venture was to convey to the Mall Venture the property on which the Retail Project was to be built (the “Retail Project Property”). Under the terms of the Separation Agreement, the San Francisco Venture retained the obligation under the Mall disposition and development agreement to subdivide and convey the Retail Project Property to the Mall Venture and the CP Parking Parcel to CPHP. In early 2019, after discussions between the Company, CPHP and the Macerich Member, the parties determined not to proceed with the Retail Project. As a result of terminating the Retail Project and agreements related thereto, the obligation of the San Francisco Venture to convey the CP Parking Parcel and the Retail Project Property was terminated, and the San Francisco Venture was also released from certain development obligations, which resulted in a gain $64.9 million for the six months ended June 30, 2019. Operating lease right-of-use asset and operating lease liability The Company leases corporate office space at the Five Point Gateway Campus. Upon adoption of ASC Topic 842, Leases (see Note 2 and Note 11) , the Company recognized an operating lease right-of-use asset and operating lease liability pertaining to this related party lease. Existing prepaid rent of $6.0 million was reclassified to be included in the measurement of the operating lease right-of-use asset on January 1, 2019. Indirect Legacy Interest in Great Park Venture The Company holds an indirect interest in rights to certain Legacy Interests in the Great Park Venture through an equity method investment. At both June 30, 2019 and December 31, 2018, the carrying value of the indirect interest was $1.8 million and is included in other related party assets in the table above. |
Notes Payable, Net
Notes Payable, Net | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable, Net | NOTES PAYABLE, NET At June 30, 2019 and December 31, 2018 , notes payable consisted of the following (in thousands): June 30, 2019 December 31, 2018 7.875% Senior Notes due 2025 $ 500,000 $ 500,000 Macerich Note — 65,130 Unamortized debt issuance costs and discount (7,531 ) (8,126 ) $ 492,469 $ 557,004 In early 2019, in connection with the termination of the Retail Project (see Note 8), the Company repaid the $65.1 million Macerich Note and settled outstanding accrued interest thereon of approximately $11.1 million . Revolving Credit Facility In May 2019, the Operating Company entered into the second amendment to its revolving credit facility which, among other things, extended the maturity date of the revolving credit facility from April 2020 to April 2022, with one option to extend the maturity date by an additional year, subject to the satisfaction of certain conditions including the approval of the administrative agent and lenders. The aggregate commitment remains at $125.0 million , with an accordion feature that allows the Operating Company to request to increase the maximum aggregate amount by up to $50.0 million to $175.0 million , subject to certain conditions, including receipt of commitments. Any borrowings continue to bear interest at LIBOR plus a margin ranging 1.75% to 2.00% based on the Company's leverage ratio. No funds have been drawn on the revolving credit facility as of June 30, 2019 , however letters of credit of $1.0 million are issued and outstanding under the revolving credit facility as of June 30, 2019 , thus reducing the available capacity by the outstanding letters of credit amount. Senior Notes In July 2019, the Operating Company and Five Point Capital Corp., a directly wholly owned subsidiary of the Operating Company, offered, sold and issued $125.0 million aggregate principal amount of 7.875% unsecured senior notes due November 15, 2025 (the “new notes”). The terms of the new notes are identical to the terms of the Company’s existing $500.0 million 7.875% senior notes due 2025. |
Tax Receivable Agreement
Tax Receivable Agreement | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Tax Receivable Agreement | TAX RECEIVABLE AGREEMENT The Company is a party to a TRA with all of the holders of Class A Common Units of the Operating Company and all the holders of Class A units of the San Francisco Venture (as parties to the TRA, the “TRA Parties”). At June 30, 2019 and December 31, 2018 , the Company’s condensed consolidated balance sheets include a liability of $172.6 million and $169.5 million , respectively, for payments expected to be made under certain components of the TRA which the Company deems to be probable and estimable. Management deems a TRA payment related to the benefits expected to be received by the Company under the application of Section 704(c) and Section 743 of the Internal Revenue Code of 1986, as amended, to be probable and estimable when an event occurs that results in the Company measuring the Operating Company’s directly or indirectly held property at fair value in the Company’s consolidated balance sheet or the sale of such property at fair value. Either of these activities are indicators that the difference between the fair market value of the property and the adjusted tax basis has been or will be realized, resulting in special allocations of income, gain, loss or deduction that are likely to reduce the amount of income taxes that the Company would otherwise pay. The Company may record adjustments to TRA liabilities related to properties not currently held at fair value when those properties are recognized or realized at fair value. Furthermore, the Company may record adjustments to TRA liabilities if and when TRA Parties exchange Class A Common Units of the Operating Company for the Company’s Class A common shares or other equity transactions that impact the Holding Company’s ownership in the Operating Company. Changes in the Company’s estimates of the utilization of its deferred tax attributes and tax rates in effect may also result in subsequent adjustments to the amount of TRA liabilities recognized. The term of the TRA will continue until all such tax benefits under the agreement have been utilized or expired, unless the Company exercises its right to terminate the TRA for an amount based on an agreed value of payments remaining to be made under the agreement. No TRA payments were made during the six months ended June 30, 2019 and 2018 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES The Company adopted ASU No. 2016-02 (see Note 2) effective on January 1, 2019 on a modified retrospective basis. Consequently, comparative prior periods presented in financial statements after adoption will continue to be in accordance with historical U.S. GAAP (Topic 840, Leases ). Under ASC Topic 842, Leases , the Company determines at contract inception if an arrangement contains a lease. If the contract contains a lease, the Company determines the classification of such lease. The Company’s lessee arrangements consist of agreements to lease certain office facilities and equipment and the Company leases portions of its land to third parties for agriculture or other miscellaneous uses. The Company’s significant agriculture lease agreements are short-term in nature. As of June 30, 2019 , all leasing arrangements are classified as operating leases. The Company has elected the practical expedient to not separate lease and nonlease components for both lessee and lessor arrangements. Additionally, the Company has elected to exclude the recognition of short term leases on the balance sheet. The Company’s leases do not contain residual value guarantees or material restrictions. For operating leases with an expected term greater than one year in which the Company is the lessee, operating ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, which are generally predetermined based on fixed increases within the lease agreements. When the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is derived from assessment of the credit quality of the Company and adjusted to reflect secured borrowing, estimated yield curves and long-term spread adjustments over appropriate tenors. Lease payments for short term leases are recognized in the consolidated statements of operations on a straight-line basis over the lease term. The Company’s office leases have remaining lease terms of 5 years to 10 years and include one or more extension options to renew, some of which include options to extend the leases for up to ten years . The Company only includes renewal options in the lease term when it is reasonably certain that it will exercise such options. The components of lease costs were as follows for the three and six months ended June 30, 2019 (in thousands): Three Months Ended Six Months Ended 2019 2019 Operating lease cost $ 666 $ 1,327 Related party operating lease cost 783 1,567 Short-term lease cost 119 251 Supplemental balance sheet information related to leases as of June 30, 2019 were as follows (in thousands, except lease term in years and discount rate): June 30, 2019 Operating lease right-of-use assets ($24,086 related party) $ 34,670 Operating lease liabilities ($16,785 related party) $ 28,557 Weighted average remaining lease term (operating lease) 7.5 Weighted average discount rate (operating lease) 5.8 % Operating lease right-of-use assets are included in other assets or related party assets and operating lease liabilities are included in accounts payable and other liabilities or related party liabilities on the condensed consolidated balance sheet. The table below reconciles the undiscounted cash flows to the operating lease liabilities recorded on the condensed consolidated balance sheet as of June 30, 2019 (in thousands): Years Ending December 31, Rental 2019 (excluding the six months ended June 30, 2019) $ 1,951 2020 4,846 2021 5,263 2022 5,420 2023 5,583 2024 2,495 Thereafter 10,570 Total lease payments $ 36,128 Discount $ 7,571 Total operating lease liabilities $ 28,557 As of December 31, 2018, minimum lease payments to be made under operating leases with initial terms in excess of one year under noncancelable leases are as follows (in accordance with the prior period presentation of ASC 840) (in thousands): Years Ending December 31, Rental 2019 $ 5,790 2020 4,846 2021 5,263 2022 5,420 2023 5,583 Thereafter 13,065 $ 39,967 |
Leases | LEASES The Company adopted ASU No. 2016-02 (see Note 2) effective on January 1, 2019 on a modified retrospective basis. Consequently, comparative prior periods presented in financial statements after adoption will continue to be in accordance with historical U.S. GAAP (Topic 840, Leases ). Under ASC Topic 842, Leases , the Company determines at contract inception if an arrangement contains a lease. If the contract contains a lease, the Company determines the classification of such lease. The Company’s lessee arrangements consist of agreements to lease certain office facilities and equipment and the Company leases portions of its land to third parties for agriculture or other miscellaneous uses. The Company’s significant agriculture lease agreements are short-term in nature. As of June 30, 2019 , all leasing arrangements are classified as operating leases. The Company has elected the practical expedient to not separate lease and nonlease components for both lessee and lessor arrangements. Additionally, the Company has elected to exclude the recognition of short term leases on the balance sheet. The Company’s leases do not contain residual value guarantees or material restrictions. For operating leases with an expected term greater than one year in which the Company is the lessee, operating ROU assets and operating lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term, which are generally predetermined based on fixed increases within the lease agreements. When the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is derived from assessment of the credit quality of the Company and adjusted to reflect secured borrowing, estimated yield curves and long-term spread adjustments over appropriate tenors. Lease payments for short term leases are recognized in the consolidated statements of operations on a straight-line basis over the lease term. The Company’s office leases have remaining lease terms of 5 years to 10 years and include one or more extension options to renew, some of which include options to extend the leases for up to ten years . The Company only includes renewal options in the lease term when it is reasonably certain that it will exercise such options. The components of lease costs were as follows for the three and six months ended June 30, 2019 (in thousands): Three Months Ended Six Months Ended 2019 2019 Operating lease cost $ 666 $ 1,327 Related party operating lease cost 783 1,567 Short-term lease cost 119 251 Supplemental balance sheet information related to leases as of June 30, 2019 were as follows (in thousands, except lease term in years and discount rate): June 30, 2019 Operating lease right-of-use assets ($24,086 related party) $ 34,670 Operating lease liabilities ($16,785 related party) $ 28,557 Weighted average remaining lease term (operating lease) 7.5 Weighted average discount rate (operating lease) 5.8 % Operating lease right-of-use assets are included in other assets or related party assets and operating lease liabilities are included in accounts payable and other liabilities or related party liabilities on the condensed consolidated balance sheet. The table below reconciles the undiscounted cash flows to the operating lease liabilities recorded on the condensed consolidated balance sheet as of June 30, 2019 (in thousands): Years Ending December 31, Rental 2019 (excluding the six months ended June 30, 2019) $ 1,951 2020 4,846 2021 5,263 2022 5,420 2023 5,583 2024 2,495 Thereafter 10,570 Total lease payments $ 36,128 Discount $ 7,571 Total operating lease liabilities $ 28,557 As of December 31, 2018, minimum lease payments to be made under operating leases with initial terms in excess of one year under noncancelable leases are as follows (in accordance with the prior period presentation of ASC 840) (in thousands): Years Ending December 31, Rental 2019 $ 5,790 2020 4,846 2021 5,263 2022 5,420 2023 5,583 Thereafter 13,065 $ 39,967 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company is subject to the usual obligations associated with entering into contracts for the purchase, development and sale of real estate, which the Company does in the routine conduct of its business. The operations of the Company are conducted through the Operating Company and its subsidiaries, and in some cases, the Holding Company will guarantee the performance of the Operating Company or its subsidiaries. Valencia Project Approval Settlement In September 2017, the Company reached a settlement with key national and state environmental and Native American organizations that were petitioners (the “Settling Petitioners”) in various legal challenges to Valencia’s regulatory approvals and permits. As of June 30, 2019 , the Company has a liability balance of $36.5 million associated with certain obligations of the project approval settlement. The Holding Company has provided a guaranty to the Settling Petitioners for monetary payments due from the Company as required under the settlement. As of June 30, 2019 , the remaining estimated maximum potential amount of monetary payments subject to the guaranty was $42.8 million with the final payment due in 2026. The Company did not reach a settlement with two local environmental organizations that have pending challenges to certain Valencia project approvals. See “Legal Proceedings” below. Performance and Completion Bonding Agreements In the ordinary course of business and as a part of the entitlement and development process, the Company is required to provide performance bonds to ensure completion of certain development obligations. The Company had outstanding performance bonds of $87.0 million and $73.5 million as of June 30, 2019 and December 31, 2018 , respectively. Candlestick and The San Francisco Shipyard Disposition and Development Agreement The San Francisco Venture is a party to a disposition and development agreement with the Successor to the Redevelopment Agency of the City and County of San Francisco (the “San Francisco Agency”) in which the San Francisco Agency has agreed to convey portions of Candlestick and The San Francisco Shipyard to the San Francisco Venture for development. The San Francisco Venture has agreed to reimburse the San Francisco Agency for reasonable costs and expenses actually incurred and paid by the San Francisco Agency in performing its obligations under the disposition and development agreement. The San Francisco Agency can also earn a return of certain profits generated from the development and sale of Candlestick and The San Francisco Shipyard if certain thresholds are met. As of June 30, 2019 the thresholds had not been met. At June 30, 2019 , the San Francisco Venture had outstanding guarantees benefiting the San Francisco Agency for infrastructure and construction of certain park and open space obligations with aggregate maximum obligations of $197.8 million . Letters of Credit At each of June 30, 2019 and December 31, 2018 , the Company had outstanding letters of credit totaling $2.4 million . These letters of credit were issued to secure various development and financial obligations. At each of June 30, 2019 and December 31, 2018 , the Company had restricted cash and certificates of deposit of $1.4 million pledged as collateral under certain of the letters of credit agreements. Legal Proceedings Landmark Village/Mission Village During the pendency of certain prior litigation involving the approval of the original environmental impact reports and related permits for the Landmark Village and Mission Village projects at Valencia, in July 2017, the Los Angeles County Board of Supervisors certified the final additional environmental analyses required as a result of a prior California Supreme Court decision regarding the original greenhouse gas analysis related to the projects and reapproved the Landmark Village and Mission Village projects and related permits. In August 2017, two petitioners, Santa Clarita Organization for Planning and the Environment and Friends of the Santa Clara River (collectively, “Non-Settling Petitioners”), who did not participate in a settlement of prior litigation involving the Company and certain other petitioners, filed a new petition for writ of mandate in the Los Angeles Superior Court. The petition challenged Los Angeles County’s July 2017 approvals of the Mission Village and Landmark Village environmental analyses and the two projects based on claims arising under the California Environmental Quality Act and the California Water Code. The Court held a hearing on the merits of the petition in September 2018. In December 2018, the Superior Court issued its written decision denying the Non-Settling Petitioners’ petition for writ of mandate. Thereafter, in January 2019, the Superior Court entered judgment on the petition for writ of mandate in favor of the County and the Company. In March 2019, the Non-Settling Petitioners filed an appeal of the Superior Court’s ruling. Hunters Point Litigation In May 2018, residents of the Bayview Hunters Point neighborhood in San Francisco filed a putative class action in San Francisco Superior Court naming Tetra Tech, Inc., an independent contractor hired by the U.S. Navy to conduct testing and remediation of toxic radiological waste at The San Francisco Shipyard (“Tetra Tech”), Lennar and the Company as defendants. The plaintiffs allege that, among other things, Tetra Tech fraudulently misrepresented its test results and remediation efforts. The plaintiffs are seeking damages against Tetra Tech and have requested an injunction to prevent the Company and Lennar from undertaking any development activities at The San Francisco Shipyard. Since July 2018, a number of lawsuits have been filed in San Francisco Superior Court on behalf of homeowners in The San Francisco Shipyard, which name Tetra Tech, Lennar, the Company and the Company’s CEO, among others, as defendants. The plaintiffs allege that environmental contamination issues at The San Francisco Shipyard were not properly disclosed to them before they purchased their homes. They also allege that Tetra Tech and other defendants (not including the Company) have created a nuisance at The San Francisco Shipyard under California law. They seek damages as well as certain declaratory relief. The Company believes that it has meritorious defenses to the allegations in all of these cases and may have insurance and indemnification rights against third parties, including related parties, with respect to these claims. Given the preliminary nature of these claims, the Company cannot predict the outcome of these matters. Other Other than the actions outlined above, the Company is also a party to various other claims, legal actions, and complaints arising in the ordinary course of business, the disposition of which, in the Company’s opinion, will not have a material adverse effect on the Company’s consolidated financial statements. As a significant land owner and developer of unimproved land it is possible that environmental contamination conditions could exist that would require the Company to take corrective action. In the opinion of the Company, such corrective actions, if any, would not have a material adverse effect on the Company’s consolidated financial statements. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | SUPPLEMENTAL CASH FLOW INFORMATION Supplemental cash flow information for the six months ended June 30, 2019 and 2018 were as follows (in thousands): 2019 2018 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest, all of which was capitalized to inventories $ 32,882 $ 22,099 NONCASH INVESTING AND FINANCING ACTIVITIES: Receivable for insurance proceeds on damaged property $ — $ 132 Recognition of TRA liability $ 3,124 $ 17,480 Liabilities assumed by buyer in connection with sale of golf course operating property $ — $ 7,795 Class A common shares issued for redemption of noncontrolling interests $ — $ 26,675 Supplemental cash flow information related to leases for the six months ended June 30, 2019 were as follows (in thousands): 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 4,142 The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows for the six months ended June 30, 2019 and 2018 (in thousands): 2019 2018 Cash and cash equivalents $ 292,661 $ 678,637 Restricted cash and certificates of deposit 1,739 1,403 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 294,400 $ 680,040 Amounts included in restricted cash and certificates of deposit represent amounts held as collateral on open letters of credit related to development obligations or because of other contractual obligations of the Company that require the restriction. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING As of and for the six months ended June 30, 2019 , the Company’s reportable segments consist of: • Valencia (formerly Newhall)—includes the community of Valencia (formerly known as Newhall Ranch) planned for development in northern Los Angeles County, California. The Valencia segment derives revenues from the sale of residential and commercial land sites to homebuilders, commercial developers and commercial buyers in addition to ancillary operations of operating properties. • San Francisco—includes the Candlestick and The San Francisco Shipyard communities located on bayfront property in the City of San Francisco, California. The San Francisco segment derives revenues from the sale of residential and commercial land sites to homebuilders, commercial developers and commercial buyers in addition to management services provided to affiliates of a related party. • Great Park—includes the Great Park Neighborhoods being developed adjacent to and around the Orange County Great Park, a metropolitan park under construction in Orange County, California. This segment also includes management services provided by the Management Company to the Great Park Venture, the owner of the Great Park Neighborhoods. As of June 30, 2019 , the Company had a 37.5% Percentage Interest in the Great Park Venture and accounted for the investment under the equity method. The reported segment information for the Great Park segment includes the results of 100% of the Great Park Venture at the historical basis of the venture, which did not apply push down accounting at acquisition date. The Great Park segment derives revenues from the sale of residential and commercial land sites to homebuilders, commercial developers and commercial buyers, and management services provided by the Company to the Great Park Venture. • Commercial—includes Five Point Gateway Campus, an office and research and development campus within the Great Park Neighborhoods, consisting of four newly constructed buildings. Two of the four buildings are leased to one tenant under a 20 -year triple net lease which commenced in August 2017. The Company and a subsidiary of Lennar have entered into separate 130 -month full service gross leases to occupy a portion of the other two buildings. This segment also includes property management services provided by the Management Company to the Gateway Commercial Venture, the entity that owns the Five Point Gateway Campus. As of June 30, 2019 , the Company had a 75% interest in the Gateway Commercial Venture and accounted for the investment under the equity method. The reported segment information for the Commercial segment includes the results of 100% of the Gateway Commercial Venture. Segment operating results and reconciliations to the Company’s consolidated balances are as follows (in thousands): Revenues Profit (Loss) Revenues Profit (Loss) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 2019 2018 2019 2018 Valencia $ 820 $ 1,242 $ (4,261 ) $ (4,264 ) $ 2,435 $ 4,040 $ (8,345 ) $ (1,201 ) San Francisco 972 1,840 (4,465 ) (4,916 ) 2,065 3,862 56,609 (9,679 ) Great Park 43,854 180,524 (2,325 ) 40,831 213,413 190,988 37,943 29,465 Commercial 8,912 6,331 (1,406 ) 193 17,261 13,126 (2,187 ) 879 Total reportable segments 54,558 189,937 (12,457 ) 31,844 235,174 212,016 84,020 19,464 Reconciling items: Removal of results of unconsolidated entities— Great Park Venture (1) (33,417 ) (170,606 ) 5,536 (37,464 ) (192,580 ) (171,013 ) (31,575 ) (22,731 ) Gateway Commercial Venture (1) (8,754 ) (6,241 ) 1,564 (103 ) (17,134 ) (12,946 ) 2,314 (699 ) Add equity in earnings (losses) from unconsolidated entities— Great Park Venture — — (1,496 ) 8,926 — — 7,948 4,872 Gateway Commercial Venture — — (1,173 ) 77 — — (1,735 ) 524 Corporate and unallocated (2) — — (14,602 ) (14,583 ) — — (30,867 ) (27,030 ) Total consolidated balances $ 12,387 $ 13,090 $ (22,628 ) $ (11,303 ) $ 25,460 $ 28,057 $ 30,105 $ (25,600 ) (1) Represents the removal of the Great Park Venture’s and Gateway Commercial Venture’s operating results that are included in the Great Park segment and Commercial segment operating results, respectively, but are not included in the Company’s consolidated results. (2) Corporate and unallocated activity is primarily comprised of corporate general, and administrative expenses. Segment assets and reconciliations to the Company’s consolidated balances are as follows (in thousands): June 30, 2019 December 31, 2018 Valencia $ 690,985 $ 596,222 San Francisco 1,178,176 1,151,372 Great Park 1,340,444 1,303,362 Commercial 476,819 479,662 Total reportable segments 3,686,424 3,530,618 Reconciling items: Removal of unconsolidated balances of Great Park Venture (1) (1,185,629 ) (1,154,216 ) Removal of unconsolidated balances of Gateway Commercial Venture (1) (476,727 ) (478,956 ) Other eliminations (2) (3,636 ) (730 ) Add investment balance in Great Park Venture 433,601 425,653 Add investment balance in Gateway Commercial Venture 103,524 107,246 Corporate and unallocated (3) 319,488 494,277 Total consolidated balances $ 2,877,045 $ 2,923,892 (1) Represents the removal of the Great Park Venture’s and Gateway Commercial Venture’s investment balances that are included in the Great Park segment and Commercial segment balances, respectively, but are not included in the Company’s consolidated balances. (2) Represents intersegment balances that eliminate in consolidation. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION The Company may grant equity incentive awards to employees, consultants and non-employee directors under the Five Point Holdings, LLC 2016 Incentive Award Plan. In April 2019, the Company’s Board of Directors (the “Board”) approved the Five Point Holdings, LLC Amended and Restated 2016 Incentive Award Plan (the “Incentive Award Plan”), which amends and restates the Five Point Holdings, LLC 2016 Incentive Award Plan (the “Prior Plan”) in its entirety. The plan became effective on June 6, 2019, the date the Five Point Holdings, LLC Amended and Restated 2016 Incentive Award Plan was approved by shareholders at the 2019 Annual Meeting of Shareholders. The Incentive Award Plan provides for the grant of share options, restricted shares, restricted share units, performance awards (which include, but are not limited to, cash bonuses), distribution equivalent awards, deferred share awards, share payment awards, share appreciation rights, other incentive awards (which include, but are not limited to, LTIP Unit awards (as defined in the Incentive Award Plan) and performance share awards. Employees and consultants of the Company and its subsidiaries and affiliates, as well as non-employee members of the Board, are eligible to receive awards under the Incentive Awards Plan. The Incentive Award Plan increased the aggregate number of common shares available for issuance under the Prior Plan by 3,209,326 shares to a total authorized issuance of up to 11,710,148 Class A common shares of the Holding Company. As of June 30, 2019 , there were 5,004,496 remaining Class A common shares available for future issuance under the Incentive Award Plan. Under the Incentive Award Plan, the Company has granted restricted share units (“RSUs”) and restricted share awards either fully vested, with service conditions or with service and market performance conditions based on the market price of the Company’s Class A common shares. Awards with a service condition generally vest over a three-year period or in the case of non-employee directors over one year. Awards with a service and market performance condition generally vest at the end of a three-year period. Restricted share awards entitle the holders to non-forfeitable distributions and to vote the underlying Class A common share during the restricted period. The Company estimates the fair value of restricted share awards with a service condition based on the closing market price of the Company’s Class A common shares on the award’s grant date. Prior to the Company’s IPO, the Company measured the fair value of RSUs and restricted share awards based on the estimated fair value of the Company’s underlying Class A common shares determined using a discounted cash flow analysis. The inputs utilized in the Company’s estimate were selected by the Company based on information available to the Company, including relevant information obtained after the measurement date, as to the assumptions that market participants would make at the measurement date. The grant date fair value of awards with a market condition are determined using a Monte-Carlo approach. In January 2019, the Company reacquired 242,990 vested RSUs for $1.8 million and 296,391 restricted Class A common shares for $2.3 million for the purpose of settling tax withholding obligations of employees. The reacquisition cost is based on the fair value of the Company’s Class A common shares on the date the tax obligation is incurred. During the six months ended June 30, 2019 , the Company granted 2.3 million equity incentive awards to employees and non-employee directors. The awards were comprised of restricted share awards with a service condition and restricted share awards or RSU awards with a market condition contingent on the Company’s Class A common shares satisfying certain price targets. The following table summarizes share-based equity compensation activity for the six months ended June 30, 2019 : Share-Based Awards Weighted- Nonvested at January 1, 2019 1,893 $ 15.27 Granted (1) 1,899 $ 5.09 Forfeited (4 ) $ 14.83 Vested (737 ) $ 15.00 Nonvested at June 30, 2019 3,051 $ 9.01 (1) Quantity granted does not include 388 RSUs that vest upon achievement of maximum performance criteria. Share-based compensation expense was $3.4 million and $6.8 million for the three and six months ended June 30, 2019 , respectively and $2.7 million and $6.1 million for the three and six months ended June 30, 2018 . Share-based compensation expense is included in selling, general, and administrative expenses in the accompanying condensed consolidated statements of operations. Approximately $21.1 million of total unrecognized compensation cost related to non-vested awards is expected to be recognized over a weighted–average period of 1.9 years from June 30, 2019 . The estimated fair value at vesting of share-based awards that vested during the six months ended June 30, 2019 was $5.6 million . |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Newhall Land and Farming Company Retirement Plan (the “Retirement Plan”) is a defined benefit plan that is funded by the Company and qualified under the Employee Retirement Income Security Act. In 2004, the Retirement Plan was amended to cease future benefit accruals and the Retirement Plan was frozen. The Company’s funding policy is to contribute amounts sufficient to meet minimum requirements but not more than the maximum tax-deductible amount. The Company does not expect to have a minimum required contribution in 2019 and did not make any contributions during the six months ended June 30, 2019 . The components of net periodic benefit for the three and six months ended June 30, 2019 and 2018 , are as follows (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Net periodic benefit: Interest cost $ 208 $ 188 $ 416 $ 375 Expected return on plan assets (252 ) (290 ) (505 ) (580 ) Amortization of net actuarial loss 35 21 70 43 Net periodic benefit $ (9 ) $ (81 ) $ (19 ) $ (162 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes , which requires an asset and liability approach for measuring deferred taxes based on temporary differences between the financial statements and tax bases of assets and liabilities existing at each balance sheet date using enacted tax rates for the years in which taxes are expected to be paid or recovered. Upon formation, the Holding Company elected to be treated as a corporation for U.S. federal, state, and local tax purposes. All operations are carried on through the Holding Company’s subsidiaries, the majority of which are pass-through entities that are generally not subject to federal or state income taxation, as all of the taxable income, gains, losses, deductions, and credits are passed through to the partners. The Holding Company is responsible for income taxes on its share of taxable income or loss passed through from the operating subsidiaries. In the three months ended June 30, 2019 , the Company recorded no provision for income taxes (after application of an increase in the Company’s valuation allowance) on pre-tax loss of $22.6 million . In the three months ended June 30, 2018 , the Company recorded no provision or benefit for income taxes (after application of an increase in the Company’s valuation allowance) on pretax loss of $11.3 million . In the six months ended June 30, 2019 , the Company recorded a $1.3 million provision for income taxes (after application of a decrease in the Company’s valuation allowance) on pre-tax income of $31.4 million . In the six months ended June 30, 2018 , the Company recorded no benefit for income taxes (after application of increases in the Company’s valuation allowance) on pre-tax loss of $25.6 million . The effective tax rates for the three and six months ended June 30, 2019 and 2018 , differ from the 21% federal statutory rate and applicable state statutory rates primarily due to the Company’s valuation allowance on its book losses and to the pre-tax portion of income and losses that are passed through to the other partners of the Operating Company and the San Francisco Venture. The Company’s tax provision for the six months ended June 30, 2019 relates to adjustments to the Company’s valuation allowance resulting from the limitation on post-2017 net operating losses to offset only 80% of deferred tax liabilities which has been treated as a discrete event in the first quarter. Each quarter the Company assesses its deferred tax asset to determine whether all or any portion of the asset is more likely than not unrealizable under the guidance of ASC Topic 740, Income Taxes . The Company is required to establish a valuation allowance for any portion of the asset it concludes is more likely than not unrealizable. The Company’s assessment considers, among other things, the nature, frequency and severity of prior cumulative losses, forecasts of future taxable income, the duration of statutory carryforward periods, its utilization experience with operating loss and tax credit carryforwards and tax planning alternatives, to the extent these items are applicable. Largely due to a history of book losses, the Company has recorded a valuation allowance against its federal and state net deferred tax assets. The Company files U.S. federal and state income tax returns in jurisdictions with varying statutes of limitations. Fiscal years 2014 through 2017 generally remain subject to examination by federal and state tax authorities. The Company is not currently under examination by any tax authority. The Company classifies any interest and penalties related to income taxes assessed by jurisdiction as part of income tax expense. The Company has concluded that there were no significant uncertain tax positions requiring recognition in its financial statements, nor has the Company been assessed interest or penalties by any major tax jurisdictions related to any open tax periods. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements and Disclosures | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements and Disclosures | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS AND DISCLOSURES ASC Topic 820, Fair Values Measurement, emphasizes that a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, the guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. The following hierarchy classifies the inputs used to determine fair value into three levels: Level 1 —Quoted prices for identical instruments in active markets Level 2 —Quoted prices for similar instruments in active markets or inputs, other than quoted prices, that are observable for the instrument either directly or indirectly Level 3 —Significant inputs to the valuation model are unobservable At each reporting period, the Company evaluates the fair value of its financial instruments. Other than notes payable, net, the carrying amount of the Company’s financial instruments, which includes cash and cash equivalents, restricted cash and certificates of deposit, certain related party assets and liabilities, and accounts payable and other liabilities, approximated the Company’s estimates of fair value at both June 30, 2019 and December 31, 2018 . The fair value of the Company’s notes payable, net, are estimated based on quoted market prices or discounting the expected cash flows based on rates available to the Company (level 2). At June 30, 2019 , the estimated fair value of notes payable, net was $502.8 million compared to a carrying value of $492.5 million . At December 31, 2018 , the estimated fair value of notes payable, net was $550.1 million compared to a carrying value of $557.0 million . During the three and six months ended June 30, 2019 and 2018 , the Company had no assets that were measured at fair value on a nonrecurring basis. Contingent consideration is carried at fair value and is remeasured on a recurring basis. At December 31, 2018 , the fair value of the contingent consideration was $64.9 million |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company uses the two-class method in its computation of earnings per share. Pursuant to the terms of the Holding Company’s Second Amended and Restated Limited Liability Company Agreement, the Class A common shares and the Class B common shares are entitled to receive distributions at different rates, with each Class B common share receiving 0.03% of the distributions paid on each Class A common share. Under the two-class method, the Company’s net income available to common shareholders is allocated between the two classes of common shares on a fully-distributed basis and reflects residual net income after amounts attributed to noncontrolling interests. In the event of a net loss, the Company determined that both classes share in the Company’s losses, and they share in the losses using the same mechanism as the distributions. The Company also has restricted share awards and performance restricted share awards (see Note 15) that have a right to non-forfeitable dividends while unvested and are contemplated as participating when the Company is in a net income position. These awards participate in distributions on a basis equivalent to other Class A common shares but do not participate in losses. No distributions were declared for the three and six months ended June 30, 2019 and 2018 . The Company operated in a net loss and net income position for the three and six months ended June 30, 2019 , respectively. The Company operated in a net loss position for the three and six months ended June 30, 2018 . As a result, net (loss) income attributable to the parent was allocated to the Class A common shares and Class B common shares in an amount per Class B common share equal to 0.03% multiplied by the amount per Class A common share. Basic (loss) income per Class A common share is determined by dividing net (loss) income allocated to Class A Common shareholders by the weighted average number of Class A common shares outstanding for the period. Basic (loss) income per Class B common share is determined by dividing net (loss) income allocated to the Class B common shares by the weighted average number of Class B common shares outstanding during the period. Diluted (loss) income per share calculations for both Class A common shares and Class B common shares contemplate adjustments to the numerator and the denominator under the if-converted method for the convertible Class B common shares, the exchangeable Class A units of the San Francisco Venture and the exchangeable Class A Common Units of the Operating Company. The Company uses the treasury stock method or the two-class method when evaluating dilution for RSUs, restricted shares, and performance restricted shares. The more dilutive of the two methods is included in the calculation for diluted (loss) income per share. The following table summarizes the basic and diluted earnings per share calculations for the three and six months ended June 30, 2019 and 2018 (in thousands, except shares and per share amounts): Three Months Ended Six Months Ended 2019 2018 2019 2018 Numerator: Net (loss) income attributable to the Company $ (10,512 ) $ (5,160 ) $ 13,296 $ (10,392 ) Adjustments to net (loss) income attributable to the Company 208 81 70 110 Net (loss) income attributable to common shareholders $ (10,304 ) $ (5,079 ) $ 13,366 $ (10,282 ) Numerator—basic common shares: Net (loss) income attributable to common shareholders $ (10,304 ) $ (5,079 ) $ 13,366 $ (10,282 ) Less: net income allocated to participating securities $ — $ — $ 568 $ — Numerator for basic net (loss) income available to Class A common shareholders $ (10,300 ) $ (5,077 ) $ 12,793 $ (10,278 ) Numerator for basic net (loss) income available to Class B common shareholders $ (4 ) $ (2 ) $ 5 $ (4 ) Numerator—diluted common shares: Net (loss) income attributable to common shareholders $ (10,304 ) $ (5,079 ) $ 13,366 $ (10,282 ) Reallocation of (loss) income to Company upon assumed exchange of units $ — $ — $ 14,028 $ (15,318 ) Less: net income allocated to participating securities $ — $ — $ 568 $ — Numerator for diluted net (loss) income available to Class A common shareholders $ (10,300 ) $ (5,077 ) $ 26,821 $ (25,590 ) Numerator for diluted net (loss) income available to Class B common shareholders $ (4 ) $ (2 ) $ 5 $ (10 ) Denominator: Basic weighted average Class A common shares outstanding 66,256,961 65,076,395 66,234,066 64,226,628 Diluted weighted average Class A common shares outstanding 66,256,961 65,076,395 145,403,189 144,853,566 Basic weighted average Class B common shares outstanding 79,275,234 79,794,047 79,169,124 80,602,759 Diluted weighted average Class B common shares outstanding 79,275,234 79,794,047 79,275,824 80,602,759 Basic (loss) income per share: Class A common shares $ (0.16 ) $ (0.08 ) $ 0.19 $ (0.16 ) Class B common shares $ (0.00 ) $ (0.00 ) $ 0.00 $ (0.00 ) Diluted (loss) income per share: Class A common shares $ (0.16 ) $ (0.08 ) $ 0.18 $ (0.18 ) Class B common shares $ (0.00 ) $ (0.00 ) $ 0.00 $ (0.00 ) Anti-dilutive potential RSUs 36,289 72,579 36,289 72,579 Anti-dilutive potential Performance RSUs 388,155 — 388,155 — Anti-dilutive potential Restricted Shares (weighted average) 2,257,787 1,902,299 — 1,789,172 Anti-dilutive potential Performance Restricted Shares (weighted average) 776,312 — — — Anti-dilutive potential Class A common shares (weighted average) 79,299,016 79,817,985 — — Anti-dilutive potential Class B common shares (weighted average) — 2,917,827 — 2,917,827 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss attributable to the Company consists of unamortized defined benefit pension plan net actuarial losses that totaled $3.3 million at June 30, 2019 and $3.4 million at December 31, 2018 , net of tax benefits of $0.9 million and $0.9 million , respectively. At both June 30, 2019 and December 31, 2018 , the Company held a full valuation allowance related to the accumulated tax benefits. Accumulated other comprehensive loss of $2.0 million and $2.1 million is included in noncontrolling interests at June 30, 2019 and December 31, 2018 , respectively. Net actuarial gains or losses are re-determined annually or upon remeasurement events and principally arise from changes in the rate used to discount benefit obligations and differences between expected and actual returns on plan assets. Reclassifications from accumulated other comprehensive loss to net loss related to amortization of net actuarial losses were approximately $44,000 and $26,000 , net of taxes, for the six months ended June 30, 2019 and 2018 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of consolidation |
Unaudited Interim Financial Information | Unaudited interim financial information —The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. In the opinion of management, all adjustments (including normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the full year. |
Use of Estimates | Use of estimates —The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management evaluates its estimates on an ongoing basis and makes revisions to these estimates and related disclosures as experience develops or new information becomes known. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recently issued accounting pronouncements —In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU No. 2016-13”) which amends the guidance on the impairment of financial instruments, including most debt instruments, trade receivables, contract assets, and loans. ASU No. 2016-13 adds to U.S. GAAP an impairment model known as the current expected credit loss model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses for instruments measured at amortized cost, resulting in a net presentation of the amount expected to be collected on the financial asset. ASU No. 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact of adopting ASU No. 2016-13 on its consolidated financial statements. Recently adopted accounting pronouncements —In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU No. 2018-07”) which simplifies the accounting of share-based payments granted to nonemployees for goods and services. Under ASU No. 2018-07, most of the guidance on such payments to nonemployees is aligned with the requirements for share-based payments granted to employees, including the determination of the measurement date. The Company adopted ASU No. 2018-07 on January 1, 2019 with no material impact on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU No. 2016-02”). This ASU generally requires that lessees recognize right-of-use ("ROU") assets and lease liabilities on the balance sheet for operating and financing leases and also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. The FASB has issued multiple clarifications and updates since ASU No. 2016-02 that include, but are not limited to, the ability to elect practical expedients upon transition. The Company adopted ASU No. 2016-02 and the related ASUs that formed ASC Topic 842, Leases, on January 1, 2019 using the modified retrospective approach. Consequently, comparative prior periods presented in financial statements after adoption will continue to be in accordance with historical U.S. GAAP (Topic 840, Leases) . Upon transition, the Company elected the package of practical expedients, whereby the Company did not reassess whether existing contracts contain leases, the lease classification of existing leases and initial direct costs associated with those leases. The impact of adopting the new guidance primarily relates to (i) the recognition of ROU assets and lease liabilities for operating leases, and (ii) the requirement to provide more robust disclosure on the nature of the Company’s leases, cash flow impacts arising from leases and significant assumptions or judgments used by management to determine whether a contract contains a lease as well as a determination of the discount rate for a lease. The adoption of ASU No. 2016-02 did not have a material impact on the Company's consolidated statement of operations and statement of cash flows. The cumulative effect of the changes made to the Company’s consolidated January 1, 2019 balance sheet from the adoption of the new lease guidance was as follows (in thousands): Balance at December 31, 2018 Adjustments due to ASU No. 2016-02 Balance at January 1, 2019 ASSETS Related party assets $ 61,039 $ 18,811 $ 79,850 Other assets 9,179 11,425 20,604 LIABILITIES Accounts payable and other liabilities 161,139 11,425 172,564 Related party liabilities 178,540 18,811 197,351 |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Miscellaneous Other Income | Miscellaneous other income consisted of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Gain on sale of golf club operating property $ — $ — $ — $ 6,700 Gain on insurance claims — 550 — 1,550 Net periodic pension benefit 9 81 19 162 Total miscellaneous other income $ 9 $ 631 $ 19 $ 8,412 |
Schedule of Application of New Accounting Standard | The cumulative effect of the changes made to the Company’s consolidated January 1, 2019 balance sheet from the adoption of the new lease guidance was as follows (in thousands): Balance at December 31, 2018 Adjustments due to ASU No. 2016-02 Balance at January 1, 2019 ASSETS Related party assets $ 61,039 $ 18,811 $ 79,850 Other assets 9,179 11,425 20,604 LIABILITIES Accounts payable and other liabilities 161,139 11,425 172,564 Related party liabilities 178,540 18,811 197,351 |
Revenues (Tables)
Revenues (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue Disaggregated by Source and Reporting Segment | The following tables present the Company’s consolidated revenues disaggregated by revenue source and reporting segment (see Note 14) (in thousands): Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Valencia San Francisco Great Park Commercial Total Valencia San Francisco Great Park Commercial Total Land sales $ 24 $ 222 $ — $ — $ 246 $ 88 $ 443 $ — $ — $ 531 Management services — 573 10,437 158 11,168 — 1,271 20,833 127 22,231 Operating properties 455 177 — — 632 1,708 351 — — 2,059 479 972 10,437 158 12,046 1,796 2,065 20,833 127 24,821 Operating properties leasing revenues 341 — — — 341 639 — — — 639 $ 820 $ 972 $ 10,437 $ 158 $ 12,387 $ 2,435 $ 2,065 $ 20,833 $ 127 $ 25,460 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Valencia San Francisco Great Park Commercial Total Valencia San Francisco Great Park Commercial Total Land sales $ 3 $ 221 $ — $ — $ 224 $ 52 $ 442 $ — $ — $ 494 Management services — 1,432 9,918 90 11,440 — 3,052 19,975 180 23,207 Operating properties 748 187 — — 935 2,791 368 — — 3,159 751 1,840 9,918 90 12,599 2,843 3,862 19,975 180 26,860 Operating properties leasing revenues 491 — — — 491 1,197 — — — 1,197 $ 1,242 $ 1,840 $ 9,918 $ 90 $ 13,090 $ 4,040 $ 3,862 $ 19,975 $ 180 $ 28,057 |
Investment In Unconsolidated _2
Investment In Unconsolidated Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following table summarizes the statements of operations of the Great Park Venture for the six months ended June 30, 2019 and 2018 (in thousands): Six Months Ended June 30, 2019 2018 Land sale revenues $ 192,579 $ 171,013 Cost of land sales (128,968 ) (118,113 ) Other costs and expenses (32,036 ) (30,169 ) Net income of Great Park Venture $ 31,575 $ 22,731 The Company’s share of net income $ 11,841 $ 8,524 Basis difference amortization (3,893 ) (3,652 ) Equity in earnings from Great Park Venture $ 7,948 $ 4,872 The following table summarizes the balance sheet data of the Great Park Venture and the Company’s investment balance as of June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Inventories $ 968,643 $ 1,059,717 Cash and cash equivalents 175,923 60,663 Receivable and other assets 41,063 33,836 Total assets $ 1,185,629 $ 1,154,216 Accounts payable and other liabilities $ 152,647 $ 152,809 Redeemable Legacy Interests 209,967 209,967 Capital (Percentage Interest) 823,015 791,440 Total liabilities and capital $ 1,185,629 $ 1,154,216 The Company’s share of capital in Great Park Venture $ 308,631 $ 296,790 Unamortized basis difference 124,970 128,863 The Company’s investment in the Great Park Venture $ 433,601 $ 425,653 The following table summarizes the statements of operations of the Gateway Commercial Venture for the six months ended June 30, 2019 and 2018 (in thousands): Six Months Ended June 30, 2019 2018 Rental revenues $ 17,134 $ 12,946 Rental operating and other expenses (3,217 ) (1,868 ) Depreciation and amortization (7,542 ) (5,669 ) Interest expense (8,689 ) (4,710 ) Net (loss) income of Gateway Commercial Venture $ (2,314 ) $ 699 Equity in (loss) earnings from Gateway Commercial Venture $ (1,735 ) $ 524 The following table summarizes the balance sheet data of the Gateway Commercial Venture and the Company’s investment balance as of June 30, 2019 and December 31, 2018 (in thousands): June 30, 2019 December 31, 2018 Real estate and related intangible assets, net $ 459,053 $ 464,123 Other assets 17,674 14,833 Total assets $ 476,727 $ 478,956 Notes payable, net $ 300,157 $ 295,440 Other liabilities 38,538 40,521 Members’ capital 138,032 142,995 Total liabilities and capital $ 476,727 $ 478,956 The Company’s investment in the Gateway Commercial Venture $ 103,524 $ 107,246 |
Intangible Asset, Net - Relat_2
Intangible Asset, Net - Related Party (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The carrying amount and accumulated amortization of the intangible asset as of June 30, 2019 and December 31, 2018 were as follows (in thousands): June 30, 2019 December 31, 2018 Gross carrying amount $ 129,705 $ 129,705 Accumulated amortization (42,598 ) (33,788 ) Net book value $ 87,107 $ 95,917 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Related party assets and liabilities included in the Company’s condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 consisted of the following (in thousands): June 30, 2019 December 31, 2018 Related Party Assets: Contract assets (see Note 3) $ 61,502 $ 49,834 Prepaid rent — 5,972 Operating lease right-of-use asset (see Note 2 and Note 11) 24,086 — Other 5,244 5,233 $ 90,832 $ 61,039 Related Party Liabilities: EB-5 loan reimbursements $ 102,692 $ 102,692 Contingent consideration—Mall Venture project property — 64,870 Payable to holders of Management Company’s Class B interests 9,000 9,000 Operating lease liability (see Note 2 and Note 11) 16,785 — Other 373 1,978 $ 128,850 $ 178,540 |
Notes Payable, Net (Tables)
Notes Payable, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | At June 30, 2019 and December 31, 2018 , notes payable consisted of the following (in thousands): June 30, 2019 December 31, 2018 7.875% Senior Notes due 2025 $ 500,000 $ 500,000 Macerich Note — 65,130 Unamortized debt issuance costs and discount (7,531 ) (8,126 ) $ 492,469 $ 557,004 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of Supplemental Cash Flow and Other Information Related to Leases | The components of lease costs were as follows for the three and six months ended June 30, 2019 (in thousands): Three Months Ended Six Months Ended 2019 2019 Operating lease cost $ 666 $ 1,327 Related party operating lease cost 783 1,567 Short-term lease cost 119 251 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases as of June 30, 2019 were as follows (in thousands, except lease term in years and discount rate): June 30, 2019 Operating lease right-of-use assets ($24,086 related party) $ 34,670 Operating lease liabilities ($16,785 related party) $ 28,557 Weighted average remaining lease term (operating lease) 7.5 Weighted average discount rate (operating lease) 5.8 % |
Operating Lease Maturities after adoption of Topic 842 | The table below reconciles the undiscounted cash flows to the operating lease liabilities recorded on the condensed consolidated balance sheet as of June 30, 2019 (in thousands): Years Ending December 31, Rental 2019 (excluding the six months ended June 30, 2019) $ 1,951 2020 4,846 2021 5,263 2022 5,420 2023 5,583 2024 2,495 Thereafter 10,570 Total lease payments $ 36,128 Discount $ 7,571 Total operating lease liabilities $ 28,557 |
Operating Lease Maturities before adoption of Topic 842 | As of December 31, 2018, minimum lease payments to be made under operating leases with initial terms in excess of one year under noncancelable leases are as follows (in accordance with the prior period presentation of ASC 840) (in thousands): Years Ending December 31, Rental 2019 $ 5,790 2020 4,846 2021 5,263 2022 5,420 2023 5,583 Thereafter 13,065 $ 39,967 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Supplemental Cash Flow and Other Information Related to Leases | Supplemental cash flow information for the six months ended June 30, 2019 and 2018 were as follows (in thousands): 2019 2018 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for interest, all of which was capitalized to inventories $ 32,882 $ 22,099 NONCASH INVESTING AND FINANCING ACTIVITIES: Receivable for insurance proceeds on damaged property $ — $ 132 Recognition of TRA liability $ 3,124 $ 17,480 Liabilities assumed by buyer in connection with sale of golf course operating property $ — $ 7,795 Class A common shares issued for redemption of noncontrolling interests $ — $ 26,675 Supplemental cash flow information related to leases for the six months ended June 30, 2019 were as follows (in thousands): 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 4,142 |
Condensed Cash Flow Information | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows for the six months ended June 30, 2019 and 2018 (in thousands): 2019 2018 Cash and cash equivalents $ 292,661 $ 678,637 Restricted cash and certificates of deposit 1,739 1,403 Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows $ 294,400 $ 680,040 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment operating results and reconciliations to the Company’s consolidated balances are as follows (in thousands): Revenues Profit (Loss) Revenues Profit (Loss) Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 2019 2018 2019 2018 Valencia $ 820 $ 1,242 $ (4,261 ) $ (4,264 ) $ 2,435 $ 4,040 $ (8,345 ) $ (1,201 ) San Francisco 972 1,840 (4,465 ) (4,916 ) 2,065 3,862 56,609 (9,679 ) Great Park 43,854 180,524 (2,325 ) 40,831 213,413 190,988 37,943 29,465 Commercial 8,912 6,331 (1,406 ) 193 17,261 13,126 (2,187 ) 879 Total reportable segments 54,558 189,937 (12,457 ) 31,844 235,174 212,016 84,020 19,464 Reconciling items: Removal of results of unconsolidated entities— Great Park Venture (1) (33,417 ) (170,606 ) 5,536 (37,464 ) (192,580 ) (171,013 ) (31,575 ) (22,731 ) Gateway Commercial Venture (1) (8,754 ) (6,241 ) 1,564 (103 ) (17,134 ) (12,946 ) 2,314 (699 ) Add equity in earnings (losses) from unconsolidated entities— Great Park Venture — — (1,496 ) 8,926 — — 7,948 4,872 Gateway Commercial Venture — — (1,173 ) 77 — — (1,735 ) 524 Corporate and unallocated (2) — — (14,602 ) (14,583 ) — — (30,867 ) (27,030 ) Total consolidated balances $ 12,387 $ 13,090 $ (22,628 ) $ (11,303 ) $ 25,460 $ 28,057 $ 30,105 $ (25,600 ) (1) Represents the removal of the Great Park Venture’s and Gateway Commercial Venture’s operating results that are included in the Great Park segment and Commercial segment operating results, respectively, but are not included in the Company’s consolidated results. (2) Corporate and unallocated activity is primarily comprised of corporate general, and administrative expenses. Segment assets and reconciliations to the Company’s consolidated balances are as follows (in thousands): June 30, 2019 December 31, 2018 Valencia $ 690,985 $ 596,222 San Francisco 1,178,176 1,151,372 Great Park 1,340,444 1,303,362 Commercial 476,819 479,662 Total reportable segments 3,686,424 3,530,618 Reconciling items: Removal of unconsolidated balances of Great Park Venture (1) (1,185,629 ) (1,154,216 ) Removal of unconsolidated balances of Gateway Commercial Venture (1) (476,727 ) (478,956 ) Other eliminations (2) (3,636 ) (730 ) Add investment balance in Great Park Venture 433,601 425,653 Add investment balance in Gateway Commercial Venture 103,524 107,246 Corporate and unallocated (3) 319,488 494,277 Total consolidated balances $ 2,877,045 $ 2,923,892 (1) Represents the removal of the Great Park Venture’s and Gateway Commercial Venture’s investment balances that are included in the Great Park segment and Commercial segment balances, respectively, but are not included in the Company’s consolidated balances. (2) Represents intersegment balances that eliminate in consolidation. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes share-based equity compensation activity for the six months ended June 30, 2019 : Share-Based Awards Weighted- Nonvested at January 1, 2019 1,893 $ 15.27 Granted (1) 1,899 $ 5.09 Forfeited (4 ) $ 14.83 Vested (737 ) $ 15.00 Nonvested at June 30, 2019 3,051 $ 9.01 (1) Quantity granted does not include 388 RSUs that vest upon achievement of maximum performance criteria. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit for the three and six months ended June 30, 2019 and 2018 , are as follows (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Net periodic benefit: Interest cost $ 208 $ 188 $ 416 $ 375 Expected return on plan assets (252 ) (290 ) (505 ) (580 ) Amortization of net actuarial loss 35 21 70 43 Net periodic benefit $ (9 ) $ (81 ) $ (19 ) $ (162 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table summarizes the basic and diluted earnings per share calculations for the three and six months ended June 30, 2019 and 2018 (in thousands, except shares and per share amounts): Three Months Ended Six Months Ended 2019 2018 2019 2018 Numerator: Net (loss) income attributable to the Company $ (10,512 ) $ (5,160 ) $ 13,296 $ (10,392 ) Adjustments to net (loss) income attributable to the Company 208 81 70 110 Net (loss) income attributable to common shareholders $ (10,304 ) $ (5,079 ) $ 13,366 $ (10,282 ) Numerator—basic common shares: Net (loss) income attributable to common shareholders $ (10,304 ) $ (5,079 ) $ 13,366 $ (10,282 ) Less: net income allocated to participating securities $ — $ — $ 568 $ — Numerator for basic net (loss) income available to Class A common shareholders $ (10,300 ) $ (5,077 ) $ 12,793 $ (10,278 ) Numerator for basic net (loss) income available to Class B common shareholders $ (4 ) $ (2 ) $ 5 $ (4 ) Numerator—diluted common shares: Net (loss) income attributable to common shareholders $ (10,304 ) $ (5,079 ) $ 13,366 $ (10,282 ) Reallocation of (loss) income to Company upon assumed exchange of units $ — $ — $ 14,028 $ (15,318 ) Less: net income allocated to participating securities $ — $ — $ 568 $ — Numerator for diluted net (loss) income available to Class A common shareholders $ (10,300 ) $ (5,077 ) $ 26,821 $ (25,590 ) Numerator for diluted net (loss) income available to Class B common shareholders $ (4 ) $ (2 ) $ 5 $ (10 ) Denominator: Basic weighted average Class A common shares outstanding 66,256,961 65,076,395 66,234,066 64,226,628 Diluted weighted average Class A common shares outstanding 66,256,961 65,076,395 145,403,189 144,853,566 Basic weighted average Class B common shares outstanding 79,275,234 79,794,047 79,169,124 80,602,759 Diluted weighted average Class B common shares outstanding 79,275,234 79,794,047 79,275,824 80,602,759 Basic (loss) income per share: Class A common shares $ (0.16 ) $ (0.08 ) $ 0.19 $ (0.16 ) Class B common shares $ (0.00 ) $ (0.00 ) $ 0.00 $ (0.00 ) Diluted (loss) income per share: Class A common shares $ (0.16 ) $ (0.08 ) $ 0.18 $ (0.18 ) Class B common shares $ (0.00 ) $ (0.00 ) $ 0.00 $ (0.00 ) Anti-dilutive potential RSUs 36,289 72,579 36,289 72,579 Anti-dilutive potential Performance RSUs 388,155 — 388,155 — Anti-dilutive potential Restricted Shares (weighted average) 2,257,787 1,902,299 — 1,789,172 Anti-dilutive potential Performance Restricted Shares (weighted average) 776,312 — — — Anti-dilutive potential Class A common shares (weighted average) 79,299,016 79,817,985 — — Anti-dilutive potential Class B common shares (weighted average) — 2,917,827 — 2,917,827 |
Business and Organization (Deta
Business and Organization (Details) $ / shares in Units, ft² in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($)ft²amembervotebuilding | Jul. 31, 2019USD ($)$ / shares | |
Class of Stock [Line Items] | ||
Number of votes per share | 1 | |
Right to exchange, conversion ratio | 1 | |
Number of voting members | member | 3 | |
Number of votes of management | 5 | |
Percentage of voting members required for approval | 75.00% | |
Number of votes of company | 2 | |
Number of votes for each member | 1 | |
Area of land (in acres) | a | 73 | |
Number of buildings | building | 4 | |
Area of acquired investment | ft² | 1 | |
Great Park Venture | ||
Class of Stock [Line Items] | ||
Percentage of equity ownership | 37.50% | |
Number of voting members | member | 4 | |
Heritage Fields LLC | ||
Class of Stock [Line Items] | ||
Percentage of equity ownership | 37.50% | |
Subsequent Event | ||
Class of Stock [Line Items] | ||
Closing price (in dollars per share) | $ / shares | $ 7.81 | |
The San Francisco Venture | ||
Class of Stock [Line Items] | ||
Right to exchange, conversion ratio | 1 | |
Equity Method Investee | Great Park Venture | Contingent Payments Due from Related Parties | ||
Class of Stock [Line Items] | ||
Related party assets | $ | $ 565 | |
Equity Method Investee | Great Park Venture | Legacy Incentive Compensation Receivable | ||
Class of Stock [Line Items] | ||
Distributions to holders of legacy interests | $ | $ 355 | |
San Francisco Venture | Subsidiary of Common Parent | ||
Class of Stock [Line Items] | ||
Subsidiary, percentage ownership | 100.00% | |
Five Point Land, LLC | Subsidiary of Common Parent | ||
Class of Stock [Line Items] | ||
Subsidiary, percentage ownership | 100.00% | |
FPOVHI Member, LLC | Five Point Office Venture Holdings I, LLC Acquisition | ||
Class of Stock [Line Items] | ||
Percentage interest in venture | 75.00% | |
Percentage of equity ownership | 75.00% | |
Five Point Operating Company, LLC | Affiliated Entity | The San Francisco Venture | ||
Class of Stock [Line Items] | ||
Right to exchange, conversion ratio | 1 | |
Percentage of distributions entitled to receive | 99.00% | |
Five Point Operating Company, LLC | Parent Company | Affiliated Entity | ||
Class of Stock [Line Items] | ||
Ownership of class A common stock, percentage | 62.40% | |
Right to exchange, conversion ratio | 1 | |
Five Point Operating Company, LLC | Parent Company | Affiliated Entity | Subsequent Event | ||
Class of Stock [Line Items] | ||
Market capitalization of company | $ | $ 1,200 | |
Common Class B | ||
Class of Stock [Line Items] | ||
Conversion of common shares, ratio | 0.0003 |
Basis of Presentation - Compon
Basis of Presentation - Components of Miscellaneous Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | ||||
Gain on sale of golf club operating property | $ 0 | $ 0 | $ 0 | $ 6,700 |
Gain on insurance claims | 0 | 550 | 0 | 1,550 |
Net periodic pension benefit | 9 | 81 | 19 | 162 |
Total miscellaneous other income | $ 9 | $ 631 | $ 19 | $ 8,412 |
Basis of Presentation - Additi
Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | |||||
Net cash proceeds | $ 5,700 | $ 0 | $ 5,685 | ||
Gain on sale of golf club operating property | $ 0 | $ 0 | $ 0 | $ 6,700 |
Basis of Presentation - Effect
Basis of Presentation - Effect of Changes to Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
ASSETS | |||
Related party assets | $ 90,832 | $ 79,850 | $ 61,039 |
Other assets | 24,619 | 20,604 | 9,179 |
LIABILITIES | |||
Accounts payable and other liabilities | 163,870 | 172,564 | 161,139 |
Related party liabilities | $ 128,850 | 197,351 | $ 178,540 |
Accounting Standards Update 2016-02 | |||
ASSETS | |||
Related party assets | 18,811 | ||
Other assets | 11,425 | ||
LIABILITIES | |||
Accounts payable and other liabilities | 11,425 | ||
Related party liabilities | $ 18,811 |
Revenues - Disaggregation of R
Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | $ 12,046 | $ 12,599 | $ 24,821 | $ 26,860 |
Revenues | 12,387 | 13,090 | 25,460 | 28,057 |
Land sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 246 | 224 | 531 | 494 |
Management services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 11,168 | 11,440 | 22,231 | 23,207 |
Operating properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 632 | 935 | 2,059 | 3,159 |
Operating properties leasing revenues | 341 | 639 | ||
Operating properties leasing revenues | 491 | 1,197 | ||
Revenues | 973 | 1,426 | 2,698 | 4,356 |
Valencia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 479 | 751 | 1,796 | 2,843 |
Revenues | 820 | 1,242 | 2,435 | 4,040 |
Valencia | Land sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 24 | 3 | 88 | 52 |
Valencia | Management services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Valencia | Operating properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 455 | 748 | 1,708 | 2,791 |
Operating properties leasing revenues | 341 | 639 | ||
Operating properties leasing revenues | 491 | 1,197 | ||
San Francisco | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 972 | 1,840 | 2,065 | 3,862 |
Revenues | 972 | 1,840 | 2,065 | 3,862 |
San Francisco | Land sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 222 | 221 | 443 | 442 |
San Francisco | Management services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 573 | 1,432 | 1,271 | 3,052 |
San Francisco | Operating properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 177 | 187 | 351 | 368 |
Operating properties leasing revenues | 0 | 0 | ||
Operating properties leasing revenues | 0 | 0 | ||
Great Park Venture | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 10,437 | 9,918 | 20,833 | 19,975 |
Revenues | 10,437 | 9,918 | 20,833 | 19,975 |
Great Park Venture | Land sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Great Park Venture | Management services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 10,437 | 9,918 | 20,833 | 19,975 |
Great Park Venture | Operating properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Operating properties leasing revenues | 0 | 0 | ||
Operating properties leasing revenues | 0 | 0 | ||
Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 158 | 90 | 127 | 180 |
Revenues | 158 | 90 | 127 | 180 |
Commercial | Land sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Commercial | Management services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 158 | 90 | 127 | 180 |
Commercial | Operating properties | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Operating properties leasing revenues | $ 0 | $ 0 | ||
Operating properties leasing revenues | $ 0 | $ 0 |
Revenues - Additional Informat
Revenues - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Increase (Decrease) In Contract With Customer, Asset [Roll Forward] | |
Contract assets, beginning balance | $ 50.6 |
Increase in contract assets | 12.8 |
Contract assets, ending balance | 63.4 |
Great Park Venture | |
Increase (Decrease) In Contract With Customer, Asset [Roll Forward] | |
Remaining performance obligation | $ 52.4 |
Investment In Unconsolidated _3
Investment In Unconsolidated Entities - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)individual | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)individual | Jun. 30, 2018USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenue from customers | $ 12,046 | $ 12,599 | $ 24,821 | $ 26,860 |
Revenues | 12,387 | 13,090 | 25,460 | 28,057 |
Land sales | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue from customers | 10 | 3 | 65 | 52 |
Land sales | Affiliated Entity | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue from customers | $ 236 | $ 221 | $ 466 | $ 442 |
Great Park Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of equity ownership | 37.50% | 37.50% | ||
Distribution to certain interest holders, aggregate | $ 355,000 | $ 355,000 | ||
Great Park Venture | Land sales | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue from customers | 62,600 | |||
Great Park Venture | Land sales | Affiliated Entity | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue from customers | 130,000 | |||
Great Park Venture | Homesites Sold | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue from customers | $ 31,000 | |||
Gateway Commercial Venture | Five Point Office Venture Holdings I, LLC Acquisition | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of equity ownership | 75.00% | 75.00% | ||
Number of individuals entitled to be appointed to executive committee | individual | 2 | 2 | ||
Gateway Commercial Venture | Rental Revenue | Affiliated Entity | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 4,000 | |||
Great Park Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Distributions entitled to be received | 476,000 | |||
Potential additional distributions entitled to be received | $ 89,000 | |||
Percentage of equity ownership | 37.50% | 37.50% | ||
Gateway Commercial Venture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of equity ownership | 75.00% | 75.00% |
Investment In Unconsolidated _4
Investment In Unconsolidated Entities - Summarized Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ||||
Equity in (loss) earnings from Venture | $ (2,669) | $ 9,003 | $ 6,213 | $ 5,396 |
Great Park Venture | ||||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ||||
Land sale revenues | 192,579 | 171,013 | ||
Cost of land sales | (128,968) | (118,113) | ||
Other costs and expenses | (32,036) | (30,169) | ||
Net income of Great Park Venture | 31,575 | 22,731 | ||
The Company’s share of net income | 11,841 | 8,524 | ||
Basis difference amortization | (3,893) | (3,652) | ||
Equity in (loss) earnings from Venture | 7,948 | 4,872 | ||
Gateway Commercial Venture | ||||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ||||
Rental revenues | 17,134 | 12,946 | ||
Rental operating and other expenses | (3,217) | (1,868) | ||
Depreciation and amortization | (7,542) | (5,669) | ||
Interest expense | (8,689) | (4,710) | ||
Net income of Great Park Venture | (2,314) | 699 | ||
Equity in (loss) earnings from Venture | $ (1,735) | $ 524 |
Investment In Unconsolidated _5
Investment In Unconsolidated Entities - Summarized Balance Sheet Data (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | ||
Company's investment in venture | $ 537,125 | $ 532,899 |
Great Park Venture | ||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | ||
Inventories | 968,643 | 1,059,717 |
Cash and cash equivalents | 175,923 | 60,663 |
Receivable and other assets | 41,063 | 33,836 |
Total assets | 1,185,629 | 1,154,216 |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | ||
Accounts payable and other liabilities | 152,647 | 152,809 |
Redeemable Legacy Interests | 209,967 | 209,967 |
Capital (Percentage Interest) | 823,015 | 791,440 |
Total liabilities and capital | 1,185,629 | 1,154,216 |
The Company’s share of capital in Great Park Venture | 308,631 | 296,790 |
Unamortized basis difference | 124,970 | 128,863 |
Company's investment in venture | 433,601 | 425,653 |
Gateway Commercial Venture | ||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | ||
Real estate and related intangible assets, net | 459,053 | 464,123 |
Other assets | 17,674 | 14,833 |
Total assets | 476,727 | 478,956 |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity [Abstract] | ||
Notes payable, net | 300,157 | 295,440 |
Other liabilities | 38,538 | 40,521 |
Capital (Percentage Interest) | 138,032 | 142,995 |
Total liabilities and capital | 476,727 | 478,956 |
Company's investment in venture | $ 103,524 | $ 107,246 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) $ in Millions | Feb. 13, 2019USD ($)shares | Jun. 30, 2019USD ($)classshares |
Noncontrolling Interest [Line Items] | ||
Holding period for right to exchange | 12 months | |
Right to exchange, conversion ratio | 1 | |
Redeemable noncontrolling interest, common stock class C units | $ 25 | |
San Francisco Venture | ||
Noncontrolling Interest [Line Items] | ||
Contribution received | $ 5.5 | |
Issuance of Class C common shares (in shares) | shares | 25,000,000 | |
Authorized contribution amount | $ 25 | |
Maximum amount payable, class C units | 25 | |
Infrastructure development costs | 25 | |
San Francisco Venture | Maximum | ||
Noncontrolling Interest [Line Items] | ||
Authorized contribution amount | $ 25 | |
The San Francisco Venture | ||
Noncontrolling Interest [Line Items] | ||
Holding period for right to exchange | 12 months | |
Right to exchange, conversion ratio | 1 | |
Number of classes of membership units | class | 3 | |
Unitholder request for redemption, minimum ownership | 50.10% | |
Conversion of Class B Common Shares Into Class A Common Shares | ||
Noncontrolling Interest [Line Items] | ||
Conversion of common shares, ratio | 0.0003 | |
Class A Units | San Francisco Venture | ||
Noncontrolling Interest [Line Items] | ||
Shares and units issued (in shares) | shares | 436,498 | |
Five Point Operating Company, LLC | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest percentage of outstanding common units | 37.60% | |
Five Point Operating Company, LLC | Common Class B | ||
Noncontrolling Interest [Line Items] | ||
Shares and units issued (in shares) | shares | 436,498 | |
Five Point Operating Company, LLC | Class A Units | Affiliated Entity | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage of outstanding common units | 62.40% | |
Five Point Operating Company, LLC | Class B Units | Affiliated Entity | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage of outstanding common units | 100.00% |
Consolidated Variable Interes_2
Consolidated Variable Interest Entity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Variable Interest Entity [Line Items] | ||
Payable pursuant to tax receivable agreement | $ 172,633 | $ 169,509 |
The San Francisco Venture | ||
Variable Interest Entity [Line Items] | ||
Distributions | 99.00% | |
The San Francisco Venture | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Combined assets | $ 1,178,200 | 1,151,400 |
Inventories | 1,164,100 | 1,137,000 |
Related party assets | 1,600 | |
Cash | 4,000 | 12,300 |
Combined liabilities | 128,600 | 260,800 |
Related party liabilities | 102,700 | 168,900 |
Notes payable | 65,100 | |
Five Point Communities, LP and FLP | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Combined assets | 842,300 | 745,300 |
Inventories | 646,600 | 559,100 |
Related party assets | 65,100 | 54,300 |
Cash | 200 | 100 |
Combined liabilities | 128,600 | 118,100 |
Related party liabilities | 9,400 | 9,500 |
Intangibles | 87,100 | 95,900 |
Accounts payable | $ 119,200 | $ 108,600 |
Intangible Asset, Net - Relat_3
Intangible Asset, Net - Related Party (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Gross carrying amount | $ 129,705 | $ 129,705 | $ 129,705 | ||
Accumulated amortization | (42,598) | (42,598) | (33,788) | ||
Net book value | 87,107 | 87,107 | $ 95,917 | ||
Amortization expense | $ 4,500 | $ 3,700 | $ 8,800 | $ 7,400 |
Related Party Transactions - R
Related Party Transactions - Related Party Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | |||
Contract assets | $ 63,400 | $ 50,600 | |
Operating lease right-of-use assets | 34,670 | ||
Other assets | 24,619 | $ 20,604 | 9,179 |
Payable to holders of Management Company’s Class B interests | 128,850 | $ 197,351 | 178,540 |
Operating lease liabilities | 28,557 | ||
Affiliated Entity | |||
Related Party Transaction [Line Items] | |||
Contract assets | 61,502 | 49,834 | |
Prepaid rent | 0 | 5,972 | |
Operating lease right-of-use assets | 24,086 | ||
Other assets | 5,244 | 5,233 | |
Total Related Party Assets | 90,832 | 61,039 | |
EB-5 loan reimbursements | 102,692 | 102,692 | |
Contingent consideration—Mall Venture project property | 0 | 64,870 | |
Payable to holders of Management Company’s Class B interests | 9,000 | 9,000 | |
Operating lease liabilities | 16,785 | ||
Other | 373 | 1,978 | |
Total Related Party Liabilities | $ 128,850 | $ 178,540 |
Related Party Transactions - A
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | ||||||
Gain on settlement of contingent consideration—related party | $ 0 | $ 0 | $ 64,870 | $ 0 | ||
Related party assets | 90,832 | 90,832 | $ 79,850 | $ 61,039 | ||
Great Park Venture | ||||||
Related Party Transaction [Line Items] | ||||||
Related party assets | $ 1,800 | $ 1,800 | $ 1,800 | |||
Accounting Standards Update 2016-02 | ||||||
Related Party Transaction [Line Items] | ||||||
Prepaid rent | 6,000 | |||||
Related party assets | $ 18,811 |
Notes Payable, Net - Notes Pay
Notes Payable, Net - Notes Payable (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Promissory note issued | $ 492,469 | $ 557,004 |
Unamortized debt issuance costs and discount | (7,531) | (8,126) |
Senior Notes | 7.875% Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Promissory note issued | $ 500,000 | 500,000 |
Interest rate | 7.875% | |
Notes Payable | Macerich Note | ||
Debt Disclosure [Abstract] | ||
Repayments of debt | $ 65,100 | |
Debt Instrument [Line Items] | ||
Promissory note issued | $ 0 | $ 65,130 |
Notes Payable, Net - Additiona
Notes Payable, Net - Additional Information (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||
May 31, 2019 | Jun. 30, 2019 | Jul. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||||
Outstanding letters of credit | $ 2,400,000 | $ 2,400,000 | ||
Promissory note issued | 492,469,000 | 557,004,000 | ||
Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Outstanding letters of credit | 1,000,000 | |||
Unsecured Debt | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Senior unsecured revolving credit facility, maximum borrowing capacity | $ 125,000,000 | |||
Increase in aggregate commitment | 50,000,000 | |||
Accordion feature, maximum aggregate amount | $ 175,000,000 | |||
Unsecured Debt | Revolving Credit Facility | LIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Unsecured Debt | Revolving Credit Facility | LIBOR | Maximum | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Macerich Note | Notes Payable | ||||
Debt Instrument [Line Items] | ||||
Repayments of debt | 65,100,000 | |||
Outstanding accrued interest settled | 11,100,000 | |||
Promissory note issued | 0 | 65,130,000 | ||
7.875% Senior Notes due 2025 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued | $ 500,000,000 | $ 500,000,000 | ||
Interest rate on new notes | 7.875% | |||
Subsequent Event | 7.875% New Senior Notes due 2025 | Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Interest rate on new notes | 7.875% | |||
Subsequent Event | 7.875% New Senior Notes due 2025 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Promissory note issued | $ 125,000,000 |
Tax Receivable Agreement (Detai
Tax Receivable Agreement (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |||
Payable pursuant to tax receivable agreement | $ 172,633,000 | $ 169,509,000 | |
TRA payments | $ 0 | $ 0 |
Leases - Additional Informatio
Leases - Additional Information (Details) | Jun. 30, 2019 |
Lessee, Lease, Description [Line Items] | |
Renewal option | 10 years |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Office leases, remaining lease terms | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Office leases, remaining lease terms | 10 years |
Leases - Components of Lease C
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 666 | $ 1,327 |
Related party operating lease cost | 783 | 1,567 |
Short-term lease cost | $ 119 | $ 251 |
Leases - Supplemental Balance
Leases - Supplemental Balance Sheet (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating lease right-of-use assets | $ 34,670 |
Operating lease liabilities | $ 28,557 |
Weighted average remaining lease term (operating lease) | 7 years 6 months |
Weighted average discount rate (operating lease) | 5.80% |
Affiliated Entity | |
Lessee, Lease, Description [Line Items] | |
Operating lease right-of-use assets | $ 24,086 |
Operating lease liabilities | $ 16,785 |
Leases - Minimum Lease Payment
Leases - Minimum Lease Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Operating Leases, After Adoption of 842 | ||
2019 (excluding the six months ended June 30, 2019) | $ 1,951 | |
2020 | 4,846 | |
2021 | 5,263 | |
2022 | 5,420 | |
2023 | 5,583 | |
2024 | 2,495 | |
Thereafter | 10,570 | |
Total payments due | 36,128 | |
Discount | 7,571 | |
Total operating lease liabilities | $ 28,557 | |
Operating Leases, Before Adoption of 842 | ||
2019 | $ 5,790 | |
2020 | 4,846 | |
2021 | 5,263 | |
2022 | 5,420 | |
2023 | 5,583 | |
Thereafter | 13,065 | |
Total payments due | $ 39,967 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | ||
Carrying amount of liability for certain obligations of the settlement | $ 36.5 | |
Remaining estimated maximum potential amount of monetary payments subject to guaranty | 42.8 | |
Outstanding performance bonds | 87 | $ 73.5 |
Outstanding letters of credit | 2.4 | 2.4 |
Letter of Credit | ||
Lessee, Lease, Description [Line Items] | ||
Restricted cash and certificates of deposit pledged as collateral | 1.4 | $ 1.4 |
The San Francisco Venture | ||
Lessee, Lease, Description [Line Items] | ||
Guaranty of infrastructure obligations, maximum obligation | $ 197.8 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Cash paid for interest, all of which was capitalized to inventories | $ 32,882 | $ 22,099 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Receivable for insurance proceeds on damaged property | 0 | 132 |
Recognition of TRA liability | 3,124 | 17,480 |
Liabilities assumed by buyer in connection with sale of golf course operating property | 0 | 7,795 |
Redemption of noncontrolling interests | 0 | $ 26,675 |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 4,142 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Condensed Cash Flow Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash and cash equivalents | $ 292,661 | $ 495,694 | $ 678,637 | |
Restricted cash and certificates of deposit | 1,739 | 1,403 | 1,403 | |
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ 294,400 | $ 497,097 | $ 680,040 | $ 849,945 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | Jun. 30, 2019building |
Segment Reporting Information [Line Items] | |
Number of buildings | 4 |
Number of buildings with one tenant | 2 |
One Tenant Lease | |
Segment Reporting Information [Line Items] | |
Lease term | 20 years |
Subsidiary Lease | |
Segment Reporting Information [Line Items] | |
Office leases, remaining lease terms | 130 months |
Great Park Venture | |
Segment Reporting Information [Line Items] | |
Percentage of equity ownership | 37.50% |
Gateway Commercial Venture | |
Segment Reporting Information [Line Items] | |
Percentage of equity ownership | 75.00% |
Segment Reporting - Revenues a
Segment Reporting - Revenues and Profit (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 12,387 | $ 13,090 | $ 25,460 | $ 28,057 |
Profit (Loss) | (22,628) | (11,303) | 30,105 | (25,600) |
Add equity in earnings (losses) from unconsolidated entities | ||||
Profit (Loss) | (2,669) | 9,003 | 6,213 | 5,396 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 54,558 | 189,937 | 235,174 | 212,016 |
Profit (Loss) | (12,457) | 31,844 | 84,020 | 19,464 |
Corporate and Unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Profit (Loss) | (14,602) | (14,583) | (30,867) | (27,030) |
Valencia | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 820 | 1,242 | 2,435 | 4,040 |
Valencia | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 820 | 1,242 | 2,435 | 4,040 |
Profit (Loss) | (4,261) | (4,264) | (8,345) | (1,201) |
San Francisco | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 972 | 1,840 | 2,065 | 3,862 |
San Francisco | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 972 | 1,840 | 2,065 | 3,862 |
Profit (Loss) | (4,465) | (4,916) | 56,609 | (9,679) |
Great Park Venture | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 10,437 | 9,918 | 20,833 | 19,975 |
Add equity in earnings (losses) from unconsolidated entities | ||||
Revenues | 0 | 0 | 0 | 0 |
Profit (Loss) | (1,496) | 8,926 | 7,948 | 4,872 |
Great Park Venture | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 43,854 | 180,524 | 213,413 | 190,988 |
Profit (Loss) | (2,325) | 40,831 | 37,943 | 29,465 |
Great Park Venture | Removal of Results of Unconsolidated Entities | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (33,417) | (170,606) | (192,580) | (171,013) |
Profit (Loss) | 5,536 | (37,464) | (31,575) | (22,731) |
Commercial | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 158 | 90 | 127 | 180 |
Commercial | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 8,912 | 6,331 | 17,261 | 13,126 |
Profit (Loss) | (1,406) | 193 | (2,187) | 879 |
Gateway Commercial Venture | ||||
Add equity in earnings (losses) from unconsolidated entities | ||||
Revenues | 0 | 0 | 0 | 0 |
Profit (Loss) | (1,173) | 77 | (1,735) | 524 |
Gateway Commercial Venture | Removal of Results of Unconsolidated Entities | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | (8,754) | (6,241) | (17,134) | (12,946) |
Profit (Loss) | $ 1,564 | $ (103) | $ 2,314 | $ (699) |
Segment Reporting - Assets (De
Segment Reporting - Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Assets | $ 2,877,045 | $ 2,923,892 |
Add investment balance | 537,125 | 532,899 |
Great Park Venture | ||
Segment Reporting Information [Line Items] | ||
Add investment balance | 433,601 | 425,653 |
Gateway Commercial Venture | ||
Segment Reporting Information [Line Items] | ||
Add investment balance | 103,524 | 107,246 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | 3,686,424 | 3,530,618 |
Operating Segments | Valencia | ||
Segment Reporting Information [Line Items] | ||
Assets | 690,985 | 596,222 |
Operating Segments | San Francisco | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,178,176 | 1,151,372 |
Operating Segments | Great Park Venture | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,340,444 | 1,303,362 |
Operating Segments | Commercial | ||
Segment Reporting Information [Line Items] | ||
Assets | 476,819 | 479,662 |
Removal of Results of Unconsolidated Entities | Great Park Venture | ||
Segment Reporting Information [Line Items] | ||
Assets | (1,185,629) | (1,154,216) |
Removal of Results of Unconsolidated Entities | Gateway Commercial Venture | ||
Segment Reporting Information [Line Items] | ||
Assets | (476,727) | (478,956) |
Other eliminations | ||
Segment Reporting Information [Line Items] | ||
Assets | (3,636) | (730) |
Corporate and Unallocated | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 319,488 | $ 494,277 |
Share-Based Compensation - Add
Share-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reacquisition of share based compensation awards for tax-withholding purposes | $ 4,099 | $ 5,131 | |||
Share-based compensation expense | $ 3,400 | $ 2,700 | 6,800 | $ 6,100 | |
Unrecognized compensation cost | $ 21,100 | $ 21,100 | |||
Unrecognized compensation cost, weighted-average period of recognition | 1 year 10 months 24 days | ||||
Estimated fair value at vesting of share-based awards | $ 5,600 | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reacquisition of share-based compensation awards for tax-withholding purposes (in shares) | 242,990 | ||||
Reacquisition of share based compensation awards for tax-withholding purposes | $ 1,800 | ||||
Equity incentive awards granted | 1,899,000 | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Reacquisition of share-based compensation awards for tax-withholding purposes (in shares) | 296,391 | ||||
Reacquisition of share based compensation awards for tax-withholding purposes | $ 2,300 | ||||
Incentive Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity incentive awards granted | 2,300,000 | ||||
Common Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Additional shares authorized to be issued (in shares) | 3,209,326 | ||||
Shares authorized to be issued, up to (in shares) | 11,710,148 | 11,710,148 | |||
Remaining shares available for future issuance (in shares) | 5,004,496 | 5,004,496 |
Share-Based Compensation - Equ
Share-Based Compensation - Equity Compensation Activity (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Restricted Stock Units (RSUs) | |
Share-Based Awards (in thousands) | |
Nonvested, beginning balance (in shares) | 1,893,000 |
Granted (in shares) | 1,899,000 |
Forfeited (in shares) | (4,000) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 737,000 |
Nonvested, ending balance (in shares) | 3,051,000 |
Weighted- Average Grant Date Fair Value | |
Nonvested, beginning balance (in dollars per share) | $ / shares | $ 15.27 |
Granted (in dollars per share) | $ / shares | 5.09 |
Forfeited (in dollars per share) | $ / shares | 14.83 |
Vested (in dollars per share) | $ / shares | 15 |
Nonvested, ending balance (in dollars per share) | $ / shares | $ 9.01 |
Incentive Awards | |
Share-Based Awards (in thousands) | |
Granted (in shares) | 2,300,000 |
Weighted- Average Grant Date Fair Value | |
Restricted stock units that vest upon achievement of maximum performance criteria | 388 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net periodic benefit: | ||||
Interest cost | $ 208 | $ 188 | $ 416 | $ 375 |
Expected return on plan assets | (252) | (290) | (505) | (580) |
Amortization of net actuarial loss | 35 | 21 | 70 | 43 |
Net periodic benefit | $ (9) | $ (81) | $ (19) | $ (162) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income tax | $ 0 | $ 0 | $ 1,266,000 | $ 0 |
Net income (loss) | $ (22,628,000) | $ (11,303,000) | $ 31,371,000 | $ (25,600,000) |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements and Disclosures (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Inputs, Level 3 | Contingent consideration—Mall Venture project property | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Related party liabilities | $ 64.9 | |
Estimated Fair Value | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable | $ 502.8 | 550.1 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notes payable, carrying value | $ 492.5 | $ 557 |
Earnings Per Share - Additiona
Earnings Per Share - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Common Class B | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Per share distributions for Class A Common Shareholders | 0.03% |
Earnings Per Share - Schedule
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | ||||
Net (loss) income attributable to the Company | $ (10,512) | $ (5,160) | $ 13,296 | $ (10,392) |
Adjustments to net (loss) income attributable to the Company | 208 | 81 | 70 | 110 |
Net (loss) income attributable to common shareholders | (10,304) | (5,079) | 13,366 | (10,282) |
Less: net income allocated to participating securities | 0 | 0 | 568 | 0 |
Reallocation of (loss) income to Company upon assumed exchange of units | 0 | 0 | 14,028 | (15,318) |
Less: net income allocated to participating securities | $ 0 | $ 0 | $ 568 | $ 0 |
Restricted Stock Units (RSUs) | ||||
Denominator: | ||||
Anti-dilutive potential securities (in shares) | 36,289 | 72,579 | 36,289 | 72,579 |
Performance Restricted Stock Units (RSUs) | ||||
Denominator: | ||||
Anti-dilutive potential securities (in shares) | 388,155 | 0 | 388,155 | 0 |
Restricted Stock | ||||
Denominator: | ||||
Anti-dilutive potential securities (in shares) | 2,257,787 | 1,902,299 | 0 | 1,789,172 |
Performance Restricted Stock Units (RSUs) Weighted Average | ||||
Denominator: | ||||
Anti-dilutive potential securities (in shares) | 776,312 | 0 | 0 | 0 |
Common Class A | ||||
Denominator: | ||||
Anti-dilutive potential securities (in shares) | 79,299,016 | 79,817,985 | 0 | 0 |
Common Class B | ||||
Denominator: | ||||
Anti-dilutive potential securities (in shares) | 0 | 2,917,827 | 0 | 2,917,827 |
Common Class A | ||||
Numerator: | ||||
Net (loss) income attributable to common shareholders | $ (10,300) | $ (5,077) | $ 12,793 | $ (10,278) |
Numerator for diluted net loss available to Class A/B common shareholders | $ (10,300) | $ (5,077) | $ 26,821 | $ (25,590) |
Denominator: | ||||
Basic weighted average Class A/B common shares outstanding (in shares) | 66,256,961 | 65,076,395 | 66,234,066 | 64,226,628 |
Diluted weighted average Class A/B common shares outstanding (in shares) | 66,256,961 | 65,076,395 | 145,403,189 | 144,853,566 |
Class A/B common shares (in dollars per share) | $ (0.16) | $ (0.08) | $ 0.19 | $ (0.16) |
Class A/B common shares (in dollars per share) | $ (0.16) | $ (0.08) | $ 0.18 | $ (0.18) |
Common Class B | ||||
Numerator: | ||||
Net (loss) income attributable to common shareholders | $ (4) | $ (2) | $ 5 | $ (4) |
Numerator for diluted net loss available to Class A/B common shareholders | $ (4) | $ (2) | $ 5 | $ (10) |
Denominator: | ||||
Basic weighted average Class A/B common shares outstanding (in shares) | 79,275,234 | 79,794,047 | 79,169,124 | 80,602,759 |
Diluted weighted average Class A/B common shares outstanding (in shares) | 79,275,234 | 79,794,047 | 79,275,824 | 80,602,759 |
Class A/B common shares (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Class A/B common shares (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Defined benefit pension plan, tax benefits | $ 900 | $ 900 | |
Total Members’ Capital | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Unamortized defined benefit pension plan net actuarial losses | 3,300 | 3,400 | |
AOCI Attributable to Noncontrolling Interest | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive loss | 2,000 | $ 2,100 | |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassifications from accumulated other comprehensive loss | $ 44 | $ 26 |