FPH - Earnings call transcript Q4 2018 | Five Point Holdings, LLC

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings! And welcome to the Five Point Holdings, Fourth Quarter and Full Year 2018 Conference Call. [Operator Instructions].

As a reminder, this conference call is being recorded. Today’s conference call may include forward-looking statements regarding Five Point’s business, financial conditions, operations, cash flow, strategies and prospects.

Forward-looking statements represent only Five Point’s estimates on the date of this conference call and are not intended to give any assurance as to actual future results. to inherently have and subject relate these yet uncertainties. statements are statements to forward-looking matters not that occurred, Because the risks Five activities and Many and anticipated in results the affect results differ Point’s statements. cause to the factors or actual from future materially forward-looking activities could may results SEC. today’s filed those annual section Five of most Release recent Point’s with the SEC factors include Press in Factors These filings, on Risk XX-K Form report the described in and including those the that assumes any Point note forward-looking statements. update Please obligation to Five no With Bob that, Markets. over I’d like to turn Wetenhall, it to Capital EVP of

Bob Wetenhall

Welcome good and afternoon.

For owner to story, and highlight communities to an large investors of new use mixed I Five want developer in is this Point California. that

and I’m Angeles, communities, leverage, who square in overview Chief Alvarado; fourth afternoon in Erik communities liquidity then and Co-COOs, will commercial our developments space off Legal Francisco of San by XX CFO, Mike million I'm Our for CEO, residential planned are joined Los feet as Higgins; of well Officer, Orange more year Kofi expectations Lynn and recent County. going provide our to than Emile review to quarter Jochim. well XXXX. Haddad; Eric and an as this position for Bonner will financial and hand our our full Emile homes and XXXX as as it now performance. XX,XXX

Emile Haddad

XXXX term year metropolitan was major mixed Thank you, strategy California. communities scale foundational us. large our and in Bob. developing use the joining areas afternoon the for of execution Good in thanks of long in

a learn places work, building where live, of play, Our and now connect is can reality. vision people

mix reported Great of At you we by on of This ranging square giving X,XXX sold our where approximately In to planned first as to for XX builds. home products is feet. are cultures. quarter update $XXX this the in continue opportunities range and our each provides for the range incomes, Let we consistent a for which activity wide of with year seven generations from of see me guest we buying illustrate of by communities. Park a acres products X,XXX million, buyers an

commercial and At roads. of Newhall host of commercial national The cubic Great builders on Some sales Angeles, gateway, the provides at phased sports of to per ongoing takedowns and square first two the to Great a over we feet Park, yards school, have value soil is families to To-date acre. is Mission arena despite seat in uses and will Point amenity our development name. which Los year maximizes Disney X.X Five our moved by will is homes our through and the have land still acres pipes X,XXX its a venue which the unusually of and XX the of region. be skating, approximately completed high of will at the four and benefits XX,XXX are of base office To-date grade, economic approximately eighth end and miles started Mission residents of have in to the X,XXX wet square space. an is of have Point Five partnership size these living sites Last Amphitheater. will Park twice million It's facility. ice million schools, park home Ducks kindergarten living XXX,XXX home ice up tax year, deliver the rinks installation complex figure a this of celebrated and comprised the XX phase square with week our Land, the for where a rest Village of we target state-of-the-art and to Village. FivePoint we Anaheim U.S. This opening a competitions. an land occupied international of feet passive foot to XXX,XXX which grand

and relationships our contractors and Our tight due controls long enabled to have standing time markers the with maintain scale over up us large very to budgets. rain in for to lost make

net its program from and retesting continues committee the of be development the zero how to activities of emissions while certain the state focusing navy our calls, Francisco, gas be Finally, Candlestick by prior we San as shipyard. places greenhouse at future. our the as parcels environmental evaluation you used and should in the built are continues example at the know In our

will the all, with in reported forward to them not agreed X-K, unwind mutually As filed with previously the the we and move that partnership [ph]. conclusion reached we Masons

with closely our XXX,XXX lifestyle, which space, homes with approximately city Candlestick, move first of is XXX,XXX phase working revised square are to for uses. square of office comprised X,XXX of of currently feet entertainment retail a forward and We feet and the plan

the receive to this of city's approval by year. expect We plan the year the of this end

high of Waterfront our which Use prospective Francisco via space interest as in from city, the unique limits lifestyle in and position the one San entertainment science that with our the well office the in-light city to office in phase. ones in deliver tech Mixed life means, space in also prospective users office challenges and to results and other by will developments And jobs all the the the provide taxies. the including lack as as companies, that of of balance, housing, is We space of variety to amenities level plan associated connected believe the you recall older this water office a may exempt housing

housing sustainability need state's who Governor the has goals. has that California the Finally, a new privatized for meets also new

the uniquely provide are meet goals. to state's solutions positioned to communities Our

who questions we me results about would to our it be your to Now will let turn happy answer financial and talk Erik over afterwards.

Erik Higgins

the financial summary earlier Thanks earnings of was in afternoon. release Emile. A issued this included our results

Our XXXX annual quarter, in our well results financial performance continued as reflects investment the fourth in as communities. our our

owned a and method Gateway Park annual of Venture results Commercial results, wholly Francisco are the entities equity and unconsolidated reminder, the of accounted are I’ll before a each for using liquidity. year-end results thus on annual while with our segments. that for Great quarter as summary our providing statements, As financial our the discuss well communities consolidated consolidate the Venture accounting. San operating are of our Newhall first the consolidated as Starting for and

was Most of million As well liquidity $XXX December million cash was comprised we XX, positioned revolving XXXX total and totaling and million under to credit $XXX of cash continue million availability of are $XXX.X of $XXX.X our equivalents facility. able importantly, unsecured borrowing $X.X and billion have investing sales our in $X.X Newhall Total liabilities. billion, in first in and have at land this year. $X.X enough billion reflecting capital assets our implement communities being of capital our to plan to later

quarter. was revenues to quarter for million debt of Finally first capitalization and primarily management recognition reflect XX.X% the services. the totaled prior total from unchanged end of $X.X the of generated from Consolidated revenue essentially

consolidated Act was of of $X.X resulted to are Equity after Park the of SG&A on $XX.X was The and to the development Great assets, limit emanating million that million the Commercial interest deferred net utilization quarter. Great attributable was the attributable million. for tax of for management fiscal $X.X net Selling, XXXX year. with in for our share of Equity of the was adjusting proportionate valuation of for our our Miscellaneous loss allowance results related quarter from our well of related loss to loss and year. year; million occurring for has of year X, loss company loss our loss other million for the result loss $X.X million the follows: guidance quarter. and in and from of loss the the million year. compensation the year unconsolidated net the to for our from million the the year development January, totaled in primarily million million of company our $X.X accelerated Tax $XX.X and recoveries Revenues an for under Venture’s A for incentive increase which management valuable million million, share resulting adoption revenue accounting entities administrative Gateway loss in to non-controlling general changes of of Park agreement were agreements. our law sale the which million $XX of expenses to the income for our interest January $XX.X non-controlling net totaled reflects resulting provided recognition $XX.X loss the $XX.X proportionate tax against Our Course lost a net to accretion as $X.X related TPC consolidated totaled Consolidated to Ventures the the amortization due various million difference. quarter million, million was and of in during was was a cash $XX.X the losses beyond. the quarter quarter. attributable of balances the $XX.X bases contained in net million was of Jobs as the $X.X recorded million. operating in revenue Cuts a tax the provision Venture. The from attributable our were XXXX were for the new in income and the in our during the collected $X.X XXXX insurance expenses the interest $X.X management entities unconsolidated as $XX $X.X loss as services Golf

the Newhall the sold as Revenues results, were related was related $X in which for administrative the and segment consolidated San segments, year. TPC the $X.X leasing Course, $X.X and million. loss balance, million which is $XXX were Newhall Course during Newhall Golf insurance Operating to the to related Newhall segment Other and million increase of the for includes which operations segment XXXX. Moving on sale the inventory expenses totaled related company's of expense purposes. $XX.X energy Of and to $XXX income the Francisco Selling, related the activity. inventory collecting was January Golf segment represents million the were billion The proceeds energy the agriculture $X.X for to primarily general million million million. well during for accounting consolidated year. as expenses to for TPC approximately in was and agricultural is a balance $X.X and the XXXX Newhall

XXXX. not of purchase part reminder, fair business Newhall’s accounting to a value up as was stepped the of inventory As in May combination

accounting million. services. the for and segment Francisco Francisco general San was $XX Moving consolidated million purposes. related The administrative for to San XXXX million is Revenue balance on as segment segment Francisco to well The includes for loss provided segment inventory Francisco, Park $XX.X Neighborhoods, in expenses San the primarily owner The represents company XXXX and for Venture, were Park operations end million were of was year. San Selling, for $X increase the management the Great for management Great at the year. the to as Venture. billion of $XX was the the San the a XXXX, Park services which Francisco the management Great Great $X.XX of by the Park segment

As reminder, our of The the from consolidated XX.X% are and the of under non-legacy Great distributions accounted Venture the the operations are assets Park financial own method the Park equity and we company. the Venture Great of Park Great for the management of liabilities and not the Venture in a therefore statements. XXX% accounting of included

the management funding $XX of Park we and of related The the Great Park sales For expenses Historical were segment Venture. the the a no-doubt. were Venture. for was Park Venture Park XXX was sold the the full on totaled operations with Great Park the revenues in Ventures acres soft $XXX company Venture, of segment approximately to million. Park $XXX and was million to include XX XXXX. Segment services recognized million on Accounting. Venture at operation in Great The related related sites Great management revenue million Approximately it reporting million. company segment to by services to provided Park of million of $X $XX Great which to Venture to Basis the revenues Great Great Cost provides the income Park the $XX connection its results related is $XXX.X Great with million

are are Venture accounting Gateway the We Company. Venture. XX% Commercial the provided Commercial liabilities Commercial included the Management method Venture our equity the Our venture XXX% and and Gateway by therefore management not assets the commercial services of Company for statements. the and of to segment the of Gateway financial Venture of consolidated Management The in the under operations of Gateway includes operations the Commercial of and accounted own

$XX.X the management the depreciation For company the million The which to results million Commercial totaled million result Gateway Commercial segment Basis game million. the Gateway the $X.X to was Venture revenues it the Ventures Historical the provides full $X.X of Company and year Commercial Commercial Venture. in loss an for of we Management This Operating include expenses, related was loss at commercial of for reporting, a the services the of segment were is $X.X Venture segment the amortization operating connection Gateway Accounting. $XX $XXX,XXX. year for million. of interest, of and for with

Let up operator me to now the turn back will it who it questions. for open

Operator

[Operator Instructions].

a question Zelman line question. & Associates. of Ratner Please with proceed comes from Our with first Alan your

Alan Ratner

Thanks Hey guys, for good afternoon. my taking questions.

First to a quick run Is million running $XX about dropped for or SG&A this bit quarter, forward? rate question, been just there a unusual good one; a anything quite is housekeeping XX. quarter XX going this had to think this

Emile Haddad

it incentive the targets on think hit these did but the some its you, incentivize a of up people didn’t Emile. right. it was fact at get you end let value Therefore are maximum didn't I’ll you is management and maximum not rate, hit due of look targets program run with this to goals that them. we because result, some we of target, some for because and I based Hey to color, little give Erik as can Alan, a more bit that the how

Erik Higgins

this is capitalize it It’s and of it’s other So Basically rate have different because stage to not a communities hard also anything you we that Alan, just and of on don't consistent includes right. going line. our know a inventory so in SG&A expenses. run are we development, people – lot know just is a you Emile not are to to SG&A our associates,

fees, consulting So and it professional marketing forth. services expenses, includes so

at the granted the legal through as capitalized we in that get that compensation So as in primarily related was of as of to the awards a term expense amount decrease XXXX, long to year-over-year we Emile Newhall. mentioned decrease litigation reduced as were well stock being expenses because

So reduction. difference primary that's the the for

Alan Ratner

but Okay, great, that to helpful it. that figured helpful. hear was I the was case,

I know you know Great the just and the Park. at you of the color could little pushed believe like little Second got had a question, to you're more bit you you mentioned in give occur fourth some sale process was It hoping know on the I maybe land expecting were that a builders. looks you that previously bit quarter. providing to you terms

function So that of tighter I environment. was a the is curious, just

underwriting of on be Thank talk lot builders general. you bidding You mentioned process have just the know a to you. in cautious have about more and maybe

Emile Haddad

terms accommodate have I you mean up and the happened close and end a think a separate to not can Alan lot to have pressure wanted us surprise to happen the two luxury close. the the builders closing news good before timing, terms nobody of by those feels is to timing Yeah, the other it's year is we not I that sure they are in the for questions. make builders is with. the and One the we ended sales that the of you And when one that of the know

to an after So timing builders the of the happen of really year was to who the the closing end. see accommodation wanted closing the pushing

the that now our terms takedown a value for we terms, have who felt to us, the works of attractive for we and that take, when win-win. receive look and value and builder for very if one it per at on the a is terms we we happen got as investment allowing us at the the review look in acre return work to two In a from of on focus that one was our right least one wanted versus builder we maximizing

about to it's absolute me an point we keep important on I dollars. because a because think give make you Let just talking feel,

range $X.X $X.X value the acre did Our we last million buy. $X.X Today we product million acre. to sale on based to the $X.X was at different per average in what lines million that's of million an are and

derived amenities as all a to of some market to from what movement terms, are built, people increase fact because seeing premium we is obviously starting community are live been for but the it that in per terms that you well as see of in in So comes well. this from the as of have acre of lot the value

Alan Ratner

if last one sales of that were at and for many you builders I how Park. a lot in Thank Emile round sneak in, one this could Great

Emile Haddad

builders, expect occurs I we we know complete right The closing to round now. had other you but builders of as two through sales. a have go

Alan Ratner

thanks guys. Okay,

Operator

Our with your next question comes Stephen of from the proceed East Wells Fargo. with Please line question.

Paul Przybylski

Stephen. should actually the into about push anticipating you in know any you you a on and on income statement you expected on, stretch This Przybylski topic or that take out know ‘XX. of that were future Staying Paul for know on think ‘XX how those quarterly Great impacting is The does basis we you. in Park the ‘XX then Thank sales

Emile Haddad

sales time Look, of on that right sure the based demand. we of I we in think absorption are to supply terms the going of the that sales versus and maintain balance the making velocity

would far seems builders projections, we week that the to like be overall to even push integrity So don't two that a but working according do going it that not same we're of with previous might be sure optimum a we to compromise find plan. the sales make and master at time to the to if everything quarter, we the or for ourselves or

look deliveries. to things days spend at terms of fixed don’t we know you So these in of

that building at and not can own financial. going buying look ways are are also them all – as are allow on just that them value making will to we to sure when optimize We in builders to

the of of terms in that's delivery. So timing

mean. not numbers really looking that this basically at a we So good, in I for are full as

Paul Przybylski

Okay.

what’s year, of lot expected maybe can ASP, the plans know right revenue, provide now? you on your sale lots, at any you the, later for know color number then this and you margin, Okay Newhall

Emile Haddad

talk really to margins think drive-in’s all and about that. I premature and it’s No,

in I talking and know you engaged the are as our of any huge performers so the think has some great of you now have there's community, demand. builders tell time Great have have a the far being to interest what been Newhall, – for amount Actually and builders supply of it I LA doesn't a second have great of and you lot can from at guest and it we supply. we Park a building amount who know doesn't a our

a imbalance. result up been building as up demand it's So the that of pent

home of in number somewhere of able to terms homes, we north ahead have maintain as don't still I that In but delivered, and will probably want as home schedule, deliver go we been much to sites rainy I are season – we the sites things, look, and XXX our is think my of that expectation jinx mean. I

Paul Przybylski

you. appreciate thank I it. Okay,

Operator

from Our question Markets. question. RBC the with Capital comes proceed Please your Eisen the next Mike line with of

Mike Eisen

Good Thanks questions. for you afternoon. guys talking the

potentially homicides XX wanted Just on passed the either that land acreage prior Can months? you of realistically can following on, off to XXX Newhall. to the think ready in over to talk from be builders development to the that's to activity you next of start with comment all the going be up that what probably XX

Emile Haddad

but I – don’t you here me second, that we’ll you help will can expected I that front to you that acreage just me, I can and in if have it number that. with give somebody are me develop. we a bear get with of give me

developing acres quickly we are right on in said I that. you but we now total if it, how all can I in are many as how depends to because flux is it Although you get it interested tell

acreage Okay we you it. after I’ll back another up. go just, get to it if give look the you to question, have

Mike Eisen

or that of some a Park made and to slow and your region, touring pace for on ‘XX the over communities definitely the the absorptions the last for partners just the in going and know land you takedowns be in sales builder other dependent then months Great Sure, six comment down there’s is you been so.

area from talk builder home of So in you of Park trended your seeing are trend that’s and you the buyers year-to-date. the what the kind taste partners to can Great in how are

Emile Haddad

Sure.

are takedowns takes. I builder I all, what said. we me requested The two let of have First – make one sure clarify that’s

line, the is this meant based the the is we absorption. in of have meant building and and not new of they have coming sales terms so rate a takedown when ability bring make don't dovetails and option sure of we where takedown out one of online, a So I meet it the well monitor community lot another that rolling setting What committee overlap. I their absorption, we one to is on

having they is this So be to is down. builder take there not an – the ability when

our terms really of in market the terms a have activity, hearing you very lot States consistent seen in cognizant what yes, We're performance In home buying. general a United of of of are know about in the we the we very sales markets cadence We and in so haven't months. February; of best Great their we at our was the community in to best our other honestly one it. at the California, active Park but it months seen had of one

So terms We like we of it. numbers sales. a to week like what way performing previous very consistent far looks and the looks see so it know in is we the every sales; in Park builders haven't seen Great profitability the

that. You number? We that have got

that So the what we more somewhere on obviously doing, it that. to and number could hoping around That's of builders, doing total what am let’s if keep XX we can be than acres. to we deliver call for acreage actually that shooting can been I'm XX we've I delivering acreage

Mike Eisen

think find Got to the more pushed do for current funds the from were first talk you with sale? how sneak out, it. land would to XXXX one in and Newhall. that that guys needing you very can Eric sale If liquidity can you liquidity both Those self-sufficient long guys your position, extra before be through comments, before think develop of if Eric. you sale helpful it's when maybe then when are you be in, to it

Erik Higgins

we obviously going pushed feel liquidity. our plenty have sales if The of those bulk land of so any, we’ll if point of really for types with our issues sales, But things. of those I delayed. to so manage to as plan are any or we year mean expenditures are those be can Yes, and the end you don't land whether see spend we get liquidity this to at accordingly. we they know have the discretionary at out,

Emile Haddad

Let in. let constantly. to we know probably We the a critical question business that, that's monitor important talking to are add because do market builders me you to me very and a it’s we’re constantly;

We what will that's terms very builders of is quickly of expenditures, in their Two-thirds appetite year and the know the where costs. is end valuable closing. of mind our

a down We have to ability an that done, At XX day is notice. grading the Newhall cost shut the with is grading, most done. the of grading mass

we So infrastructure we the maybe into that are out maybe phase appetite the and not now there assume it’s let's for XXX. figure that is XXX,

we of time the know to to of in give comfort ahead amount it. that dollars way that dollars go in the are generate will be that make out will We we we revenues exactly and expenditure, us that committing the to of will that need sure of put going

by auto any of So imagination. this an business pilot stretch not is

run of know monitoring not that we revenues that be that's will spec business. and to get able We you the we all how would to are hoping infrastructure, and the commit key to

Mike Eisen

Understood. all for information. the Thanks

Operator

of question next with with your Please Our Scott from comes Schrier question. the line proceed Citi.

Scott Schrier

too versus demand, I change thought put Is know bit you to obviously you a But they're potentially in see shaping some whether margins things in and you homes willingness ago appetite land what a San might little you about builders those build prices on product of taking for for the the you pressure I’m or land a any Newhall from, my communities. of that are thanks if are in Newhall to kind there and ask ground. curious the any where you more affordable up pressure changes, year wanted I it's to said in the plans builders are lot were and reduce to searching that from know of and more of ASP little talking sales. to seeing terms up start know there’s a afternoon good question. about Hi, early Francisco going in

Emile Haddad

now phase different let you so product XX between of segmentation. very could all segmented of we the anywhere seven carefully. and first control Well, first to Right know be me – product delivery the our products

have your range of answer feel for a question seen at. haven't we of will wide we lead builders. the more is, the no, push an a there's interest So, to in like first any we The builders we will product product, If back then certain very of with to look from offerings size part that.

terms to commitments is they well plus, and as can to a aligns the you of market communities the things one two have result talking either As or having a of Los Angeles from amount a decade the to matter Orange local If up operate of both market operation where helped them. seen and strategic to our for make Both are to a experts. know get going they is in of market in interest have over with of relationship, therefore builders in in that's the [inaudible] down of able market an able place there the as of just else and to those interest that to we operation trades ability the builders and land their we’ve very in do cost the great would they the or that long County G&A start of a presence fact next and structure to because know in a there issues it term had have there's builders interest builders high talk lot level a nothing about from shut relationship be LA and the operating. them they and one as to be

sold can not and builder have thing you we selling business down question make that execute Great partners we're all to but with know Park. to I if on proven execute is Today saying, that we build value your its can a good you sure for the the that therefore Great a you. your than here's despite as our want we ago, at we with you and more the So sit value a at you and says, time ours than sitting we land and one going all provide one, being with statements Park, you that that look long to you I year made. of We're we time know this higher are market how the is sold pipeline together pay down work the at the a land and on builder

all So we them. to business up it our expect the to is it Newhall expand community partnership that with to have building take we and believe fundamental that to and

Scott Schrier

opportunities commercial XX seen more space opportunity, for follow great thanks much about about any you was with way. the broadly up Matrix. you the way you noticeable certain that how office decision in when I have just of you spoke things. commercial wanted think look any More and respect speaking, the flexibility in XK you've months do trends terms Emile, you spoke and to color. ask over changing side of know past your the the to about the that plans on commercial a that with if six your Obviously your at it, and and little Got you mall changed to

Emile Haddad

was move entertainment great mall San that in to before again we were the around. one here went approved through the with advantage apartments, we revised we actually all of configuration. plan the have with plan a that a with revised are an approval, to design designed it and Then and doing is I we think a the back flexibility on of best amount with had we Probably the said able flexibility the we mean where third go Macerich, we as and in we a center, uses one discussions condominiums, the Yeah, I time. a is lot example have was on get city's to that capitalize and had Francisco and that of result

we from ability to both of view. have but So an around, uses entitlement more view move the a point point from relationship of importantly

in about the want the sure have we size, with have the on are We talk city public more to that partners our discussions with ability why uses make current demands. line to to

and first spent the that office phase phase open ability have that's relocate as time are water taxi space the to to are deliver we in parks somebody lot an believe seem in by to to remarks, doing if a feet said in connectivity What over we answer very and to with opportunity homes, and what San to here needed, where Francisco space see want and outlet is space. every really decided square an that not more the way city the As and versus the we city we and your people But one lifestyle is not today somebody provide we employees schooling, XXX,XXX us second to Francisco. available, providing road, the in as pursue part for is the providing office X,XXX trends my this housing opportunity office entertainment, a the rail where we to That's and is campus. space of build and by we yes, shifting is we that's of question, see my why unique by in both golden evaluating challenge for why are I that mall come in to and San for decided here consistent time. the and

Scott Schrier

luck. and color. lot, great good thanks Great, Thank you a that’s

Operator

next Our proceed your of from with line question. comes Kim Evercore; question please Stephen with a

Trey Morrish

to on ratio former is about Thanks Hey, I for talking for time. the this start want Steve. to with actually plan. Trey the

of is that pay there result from a them having Macerich the financial first, they in So this penalty moving pay between shipyard. you you any need need you and to and away to on mall

Emile Haddad

the that disclosed $XX there's four give years they and than had million them $X $XX back ago. million no, no, so that's million, more the got million end of investment the was in was that to We we Well and to done. plus already it. that back unwind Macerich and of all We XX% interest amount and take Xk, back the $XX it’s gave no made the penalty. them

here moving So everybody’s from our perspective there's and forward. nothing else

Trey Morrish

and to home and compared mall this approved homes there you to San attached Francisco, the plan to Got the apartments condos foot print the it, change are the designing in taking and sites and number plan that previously the are town plan? it, in new in of or that you former is a with

Emile Haddad

phase is to the of other the terms that bit of include in first of the the Candlestick forward. about mean talked No, couple I this, the become are total. uses. that's different I here This what what terms first has phase. a all there isn't phase footprint of moving a much you users just Macerich makeup these basically what Obviously I areas the in which takes about we was in more talking first the and and know little of expands than is

of placement this about is is outlet mixture the phase think have to to Candlestick, a which going as this So mall first of which the users.

Trey Morrish

when delivered Okay, lastly, Candlestick will in year there or sites are start roll then looking expect we XXXX this we and to those any through? first home to at should be

Emile Haddad

not No, you year. any expect deliveries should this

made by now in have should approved commitment to That year, is I of the think now forward we have development XXXX the a to are forward the process plan moving we city as is to in which end with going moving inform the what you timing a with. and we expect then finally we that already are will that us be the to right and of saying plan will beyond. it

Trey Morrish

I Emile. thanks Okay, much appreciate it. very

Emile Haddad

Sure.

Operator

question next from Please of with Nishu with line Bank. proceed a question. Sood Our Deutsche your comes

Tim Daley

actually is Tim for on this Nishu. Hi, Daley

first opening guess accounting and all timing ACS gross the guess heard year. the the the development I we've SG&A profit heavy are particularly or activity of their a question, has those I beginning XXX communities lot of more new adoption mentioned a beginning had various year of in in and at lot So that that lumpiness recognition, of of adopted my some builders the doing Erik from driven that you standards you

duration So should under of not your expenses compared how model, sort changes the I are side guess. are be pre-adoption your and costs to real opening and the we the you standard recognized communities of size the given obviously themselves. but few any larger of long in But building expecting to one development projects, recognizing this accounting new

Emile Haddad

the see advance you'll the revenue the see a on our so real implementing related contract revenue know so. new That’s and of new don't impact management revenue I mean standard, in of Great and No, that we Park in related to collections so our I a was P&L party the revenue to Venture of the recognition our revenue part then standard actual as provide big services asset large recognize for been company us. we you'll you of think impact for and asset item. the line

Tim Daley

then the creeping seeing of trades, guess level from side see developers and basis, more high inflation are in that a kind more and inflation and helpful that’s starting more they Alright, those on into to things. grading in I a labor some builders earth works, heard of we've that bit bit particularly labor a

the if rate that curious, out you be that's are just So you seeing doing guess of your labor kind I that, in project that help the if increase of a could development us with across you and helpful? will have

Emile Haddad

is well relying and equipment more on past much answer as I labor. operation no. is our the than the Sure, in said

of give scale lock was you contractors you home and I a ourselves our on from in doing really Today have position different prices contractors to saying and very for go a in dirt XXX than if job working. two to a term standing about over has sites XXX what we long are provide us or long and Newhall, where with to XXX allowed a scrapers equipment protect However, have your negotiate in that therefore the totally contract with over pieces remarks grading opening moving relationship and you’re contractors That’s if our our communities there. my jobs.

by probably our it’s contact. are people know term our benefits our That’s on not and is trade it is position relationship development, long of are for who relationship are more that – we because true doing you in, some with sized a So smaller both. who a partnership contact

Tim Daley

That’s commentary helpful pretty quick one demand more in that to strong. San Francisco your It one. and continues detail, then from just for be space seems commercial

year? you as curious just growth So the of in the square Francisco this per in see market to did foot market price terms what San achieve

Emile Haddad

the or mean residential? You commercial on

Tim Daley

commercial side, the On thanks.

Emile Haddad

yet Yeah, we in selling. in activity not are or terms of space leasing the of

on speculating want don't I be to that. So

right the and that terms their that the other amount We are that space in now employees are have a first package that as making that focused looking housing of are full of very who the things they for are seeing of demand part for are sure to the said challenges I employee. facing essential for much statement, and on which we people is that your

it simply more that complete the that just has in we than the able how in focus provide actually provide we more building be the demand yet. numbers for our space office is way and on So and haven't gotten supply right to been downtown San demand, but a to do Francisco, much

Tim Daley

thank I the time. you. Well, appreciate Alright.

Emile Haddad

Sure.

Operator

[Operator Instructions].

of line Please Our with next question comes Rehaut the from with Morgan. proceed J.P. Michael your question.

Elad Hillman

capital vein, Hillman could they think little any that requirements early. how think higher, or Candlestick, in actively partner compared to about this Elad potential you to there recognizing in Is be just plan. house. find roughly the you're indication requirements dig old for is Mike. looking feel on in capital like Is lower, more And should get Candlestick. Hi, is do a executed the still would to you for on there this or we wanted for I and you for the something similar will new plan to new new similar fully plan a the a

Emile Haddad

what only in you that about year the get this capital of thing think approvals. Well, is should is needs to needed the terms

out the table. Before with we and pull forward of we would be these move all opportunities the of and the on developments, uses capitalization trigger the evaluating

to that on. closer much we to year and once go something asset about we are will discussions that we nature for approval are these all are on multiple we that. what those But could would make decisions to make classes somebody evaluate the So whether decisions we us and out a on to of are of actually of or those and the and options based table the to people of with are from decide be or of have it to interest doing. the an are the there partners because like who to partner the whether suit talk end But go built have

Elad Hillman

of in thank the when the terms have Any you on shipping be plans update shipyard? received of delivered. land indication the And over you. the could Okay, retesting or plans, lastly, update potentially retesting navy any

Emile Haddad

has mean No, navy. the I make that I I we sure updates navy, to same indication from haven't any nothing but from the underscoring want any point. again changed, on received the keep

and there is to ready from going take certain Our not. more be the standard as a a it navy there's everybody is whether when and up navy the to part ambiguity signs down or no that’s is off cleaned to of

at and still have that of the before So that down, it all take coming own land our make issues take Candlestick shipyard. in answered that It’s the today, take ownership the are in been to pieces navy completely. even meanwhile, and expect talking several land. we the sure would we the we that don't question we In years if focus shifted Candlestick to cannot be about this the were down for or has of the land regardless to weekend about

for focus be Our to on Candlestick. years the several is next going

Elad Hillman

Got it. you. Thank

Operator

conference. question-and-answer the this of and we Ladies conclude the session does and have today's end gentlemen, reached

disconnect participation. lines Thank for time. this you at your may your You

Emile Haddad

Thank you.

Five Point (FPH) 13 Mar 192018 Q4 Earnings call transcript