FPH - Earnings call transcript Q2 2024 | Five Point Holdings, LLC

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Operator

Greetings, and welcome to the Five Point Holdings Second Quarter 2024 Quarter Conference Call.

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

Forward-looking statements represent Five Point's estimates on the date of this conference call and are not intended to give any assurance as to actual future results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could affect future results and may cause Five Point's actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described in today's press release and Five Point's SEC filings, including those in the Risk Factors section of Five Point's most recent annual report on Form 10-K filed with the SEC. Point obligation Five forward-looking update that statements. note assumes to no any Please

like call turn Hedigan, I to Now would the Officer. Chief over Executive Dan to

Daniel Hedigan

Thank for thank afternoon, you, call. our you Paul. Good joining and

on voice with it to announcement, call, Officer little are Legal have joining but QX of that. Vice today, little from is priorities. so sound Stuart am taking Just let team's up our our Tobler, we and know Chief our the results, is our and strategic And our in I a Kij, Miller, and us Senior to remotely. On Operating hopefully, I going different. and on the want of Reporting; you flare Kim a all our Finance the I during Chief steps you focus to recovering Financial me Officer; cold, just today's Chairman, my Leo quarter our doesn't call, Mike Officer; bit middle Executive a implement President the Chief Alvarado, update I'll

and to X open the this company's and to over performance Mike for grow communities meaningful We'll Last, Kim third year. line Next, managing management Point's improvement beyond. experience given venture financial and will the the and in execution with opportunity the towards of guidance Great the our overview existing in full overview for experience joint and future of an represents plan look of questions team. quarter some Five then for a asked Alvarado at the master our give our past limited the believe to conditions the the I've years. potential participating We Park, venture proxy as we

execution for our land million community most during very land. income generated the sale evidenced in adding our $XX.X the Great of near-term sheet managing equity from which at strong This by of I'm part to driven expenses begin. spend fortifying quarter, of reflects our generating at in continue In acre $XX.X we demand performance performance $X.X quarterly we of to net to earnings quarter, the of second our let's our million unconsolidated continued is for of the by XX% million, and revenues. as acres closing this by Park revenue, the million, carefully balance In focus a Great capital quarter. profit our match residential strength contributed investments on a controlling per the as XX.X report on to for quarter Park builder margin. $XX.X So pleased

Additional income Great derived and from the performance land better prior Park. in participation on sales

first down the is on which with consistent and holding slightly quarter to overall of this quarter SG&A second year. costs, last of our Additionally, year $XX.X less held our focus the than million, we

anticipated to quarter, in $X.X year. of the total to During sites mentioned signed sale addition home close for also an a the closed area million. our in just a of is contract purchase the This previously sell quarter $XXX next development sale, to our for over the Venture price Great acre, fourth million in Park additional

per next homesites in Our the to strong now the Park received in builder with Great we venture sale surprised additional document also recently residential that we would in another we anticipate transactions. and land are half land acre closing marketed development area continued that those first and values, for increases of interest negotiations not in these We in were year.

higher this values in contributed can programs part values in land conditions, towards also change our for be begun residual builders attributed per acre to land allowing the we've in market home as to design increases While the communities us. has

our drive in the built an look increase land the is as velocity role and builders developer to sold guest mass program to our and appropriate segment that the always design being have maintain we each with we builders community. order ensure by maintain to will we engagement to value, As we in

While mixed use is during due able driven ability The these and residential we're to quarter, interest that challenging the send land remaining California's continued team's fact community generally our the and signals land news approval undersupplied and California capitalize achieve to to inflation the by regarding the primarily execution specifically results rates on our to process. market. to chronically shortage

inventory home demand expect We builders. of from strong and entitled drive land shortage will to existing continue

our and Moving the of Kim to financials a details a million ended healthy position his cover during million drawn liquidity will revolver, comments. balance on $XXX giving quarter in us million. more our regarding $X cash sheet. liquidity total $XXX in our We with $XXX

now Let bit market general a conditions. me expand on

rates for has of and limiting confidence low helped they during strong in homebuilders. unemployment trended have our rates. fairly quarter, end. direction down therefore, demand builders. The large affordability in our with and the strong Conditions is of on home continued from inventory trended and end most which remain since guest in driven by towards acquisitions consumer the interest interest higher sustain relatively the part our markets demand land While of impact remains continued communities that for home quarter lack new of up new homes factor the second existing coupled generally in quarter The

the mitigate a most have have home in sales. builders the mentioned large of incentive support new of impacts part, to our the rates who, variety interest publicly-owned structures are we for As homebuilders past, to

to movements, those in to adjust incentives continue. allow to these to and ability capture remain the rate response homebuilders home sustain demand able uniquely interest to With new sales

home home saw new Valencia builders we compared reports in of closed QX, new new been Great home sales at XX sales to in limited While to inventory. and sales QX there compared very XX XX guest QX at our nationally in despite in Park slowing have XX

online communities On some side we marketing the our only for come a the commercial and business, sites our won't at as land Great are oriented-land actively X currently of time. Park commercial other

commercial we're opportunities to both the coming we in users these still interest report we We'll repurpose like values While sites, this looking XX-acre for and at being sites to residential these of depth did on the in from use, to we seeing that quarters. use. the given site are driven by more for have residential residential also developers uses Valencia and with demand much converted

Let provide you our some me with first the with now updates Neighborhoods. on Park Great communities, starting

and a financial investments of to reminder, Park receiving prior that As mature Park Great made the partners ongoing community are its our benefit the results from the years. in most communities contribution Great is the our we this our Venture in and reflect

our community first quarter, the Park Great builders During in XX sold homes.

of normal Park. Great limited is programs number number at due to open than builder that earlier, noted I As lower

During in the open X neighborhoods. our were actively only quarter, to there X selling products X

Luna Solis in quarter product products Luna Park, newest Our Park. has products the Neighborhood X for builder at sale another our open builder for has and neighborhood, only third builder sale. opened We open currently one X anticipate

these to As limited open Neighborhood Park will affirming encouraged to we the by be in sustained interest offer are the of Great in homebuyers. programs Park traffic variety able Neighborhood. Despite in once of a the appeal wide prospective options inventory, the again Great housing ongoing community,

at strong As I Great there remains homebuilder mentioned in Park. homesites acquired interest earlier,

group a a is signed This process Great under we deposit for with residential Park received quarter, a meaningful the X the programs, of contract bidding completed new by which Venture.

sale sites. approximately and partners in for have process completed the also these on X bidding programs our year. later more home contracts XXX of homebuilder negotiating the with a programs have We additional with report We'll the

supply delivery to land with Valencia, still of market. ahead I'll many of will us housing, Valencia for in the move which community. stages of Now in active future our to enable Los phases much development particularly other needed is its add early Angeles it,

the our homes current have now our Valencia's initial X Valencia homes. out. programs and In selling. guest During new second XX development builders areas, quarter, of sold builder open phase X,XXX actively is sold we

X the Additionally, year, land offering diversity of XXXX anticipated open the end late 'XX, in are at and we early product programs to for from prospective more last homebuyers. sold there

of zoning. to above, the potential have is from As XX-acre calls, which permitted use, we under site discussed noted I last our a flexible our on conversion few residential commercial

with homebuilder quarter close the finalizing to this homes, now sites anticipated this a contract in year. for mixed-use are We to sell XXX of the with sale the XX-acre fourth

home process X that We the X and also also programs completed close for will approximately the we anticipating these in sites currently additional year. are XXX with programs this fourth bidding of quarter

and meet insurance restrictions proactive also availability, to is working continue premiums. for builders with in in California all approach in homes housing reasonable insurance the address has Valencia, detached that to limits current insurance the programs for to underwriting single-family allow condominiums products we current detached our us The to meet from a our on to clear California. closely state in demand insurance fire the allow more work it move us away become is As to situation current requiring will to

Finally, development areas, other to allow in additional land-constrained Angeles future market. County agencies which entitlements will in sites of supply our work add and of commercial will we much home for thousands continue delivery acreage to need to Los this and for perfecting

a a to That of of remains status said, completed expediency approval master first-class feasible long communities, housing, manner. have effort conditions. delivery time, reasonable proven these with planned between variety this in passing process in business approval balance the our hope in While we been timely expedite delivering a the processes and laws record with of we finalize and track new a regulatory challenging to get to

Shipyard. San to and report entitlements initiated I'm communities: to happy county approval the other San X rebalance Francisco. that Francisco and to the process the regulatory city, Turning our public applicable have agencies the Candlestick between

the to without As to remediation will development This I at Navy enable as the discussed to at complete for wait having development allow a before, rebalancing Candlestick we project. Candlestick the these to the begin activities of seeking are stand-alone Shipyard. us the rebalancing

efforts the complete current a starting amazing Francisco with work this now San momentum of to that sites communities mixed-use Candlestick. on envisioned our have of irreplaceable these turning been to the the process partner piece along large with Bay, the us begin identifying to always we're the for creating rebalancing, to With property

Point development to driven its Park a extraordinary capital the as that has model work Five of with court-mandated oversight and Great partnership team. partnership, future our for like partnership I've plan. Alvarado This well-crafted executing properly constructive which asked our a management can working maximizing We closely will Great value briefly much engagement focus workings Park Mike a expect our with on opportunities. partners performance describe

Let priorities: revenue quarter our and costs SG&A continuing flow, me second match seen cash to spend capital near-term managing our opportunities. controlling has progress and positive X on conclude by saying generating main revenue

Additionally, progressing in next development. team Valencia forward [ is and neighborhoods and our the process entitlements balancing our moving through for beginning ] Candlestick focused entire on

continue will home severe geopolitical communities, driving in markets, demand economic produced supply to California and is in the our our builders. Land to game in While sales believe that force a interest a to financial buyers markets be has our to land long shortage. and for impact continue that structurally a events development we may continue show pent-up very

we are creating efforts are recognizing well Our positioned and long today within of ensuring value. maintaining shareholder importance game the that while

let then year. guidance to results experience partnership report Mike, and discuss our limited provide turn on financial who for Now over the our who remainder Kim, some will me will briefly it the and to will of

Michael Alvarado

basis is past, Great the Great on own has The management we performance. The about asset manage heard excellent operate Venture communities development We development organizational to and we structure whom What clearly the other after more year operational value of creation Great Great is of revenue the you interest generation that them X community value our of under maximize in the mature a Park in one status. built-in of most proven and stands year this the one system with joint and accountability. life our In believe our is provide of interesting Dan. its Thanks, each and where cycle about venture is engage plan operate weekly in which communities capital talk in order however, within us we has Park terms a Park, of partners returns master to Park the and and and minority and terms the community. alongside have its in a a capital structure. resulted

this performance. their own together variety structural with believe on business our continuously executed provide unique interests, aligned improved a when partners advantage bottom Our of of perspectives existing a And line developments plan model. we with We this our matters with scale. is to dealing have

interest, for venture, equity Great mentioned, the I own also and management services the As earn provide at Park, an we but excellent incentive an performance. we promoted to we interest

plus recover believe management are that our We in these significant us with earnings a existing be this repeated through paid that projects promote for that the existing equity ] component has to and but for services, to one -- our allows consider delivering future, services revenue company. a We only incentive is future growth delivered compensation for existing our [ management not stipulated costs fee interest within our in services Point in structure beyond can coupled Five that management also the as other we the communities, or communities. of component,

model capital we and add been possible performance. share San partner reduces in this fee work some our Park economic to can achieved, accountability you engagement prior system view of be from entitlements, different Francisco, than promoted we also under gives interest to who like a interest no there replicated. partners as matures. sheet with Valencia once offsets income more engage as and to opportunities about now. calls, Valencia, an partners believe while move expect talking our have to know life while our is partnership in for Park. With terms capital embedding SG&A, program. of arrangement a Management in drive done we aligns Great can the community a and Bringing business advance a At about place, balance the venture as enthusiastic be investment cycle in are Great potential Five We time model our Point to In this to approvals for asset-lighter a well-crafted it value development the while in

conversations advancing venture potential partners. provide our entitlement finalize a for we efforts, accomplishment catalyst with that will As rebalancing

a proven -- the our by returns Great years, active the believe engagement. Venture, seen business this near for model track have on other have we a the of this their hope with working to have with at more company. report future advantage We whose who been several together over can in have growth Park look We we seen We as record opportunities rising members is past future. driven that to take the management of

Now financial over me the report our it turn quarter. let Kim to on to for results

Kim Tobler

Mike. you, Thank

more give Let you results. me background a little our on operating

quarter of from equity second of $XX.X income from of compensation generated Park reported we XXXX, investment $XX.X $XX.X our management which the For was earnings million and in net incentive primarily of revenue million, Venture. and the consolidated Great from million

of a sale largely of land profit As XX% Dan noted, the the sites by Great XXX and XX.X the million home was Park generated Venture's margin $XX.X on income for of acres costs. before sale of a price quarter with closing

quarter's that $X.X venture We more the my a made will is participation which This of note about now associated $XX.X Luna last with that profit to participation margin the year improved and to out million say sale sale per acre. The million prior related to community. sales participation also revenue land $X.X price land last XXX homesites, XX%. have I'll Park in profit revenue million later from additional recognized of revenue price comments. comes of

results. consolidated Five to Point's back Turning

X recognized income have of first the the net million. $XX.X of months For we year,

the costs, quarter of with $XX.X focus and Park our equity Our total of the earnings the year. and prior second SG&A $X.X continued million. million second first to results from million $XX.X $XX.X revenue our and quarter of year compared Venture Consistent Great this million first quarter included $XX.X expense managing of on half in our was million

the I'll quarter and you the of was $XXX.X with turn end our more XX.X%. in the We credit detail availability me around our cash of for also $XXX.X flow total cash. give to as the resulting liquidity ended At a debt to year-to-date. quarter, million. quarter revolving of cash total little capitalization as let facility, $XXX well liquidity million of Now our and million on

before million. we quarter, of the had $X cash debt positive flow For service,

quarter had the million $XX.X development and million. equity compensation fourth incentive and the the expected activities debt which of quarter quarter significant debt $X.X For quarter. the for Valencia million uses been $XX.X in senior to than service sources including The note of close the the flow transaction date. The year-to-date, $XX SG&A of management significant the million costs, before year-to-date service, $X.X we costs and been other year-to-date, million of cash largely distributions $XX.X $XX.X related for and preparing have Park to are million Venture the at entitlement Great of negative of million and for for from sales cash have and to cash

In with Venture Park and efforts against addition, the we million the financial largely are our the costs took of development associated and the quarter litigation incurred results. our significance to at and Tech Tetra for $X.X for $X.X of that San the Francisco year time Great in quarter, emphasize the I rebalancing Navy. Last million

stand continued This particular quarter, to it in X places. out

an the our received distributions we report venture, venture's as percentage for earnings ownership interest. of joint unconsolidated share our Firstly, proportionate and

Secondly, we as to provide discussed, Park management Venture. Mike the Great services

because results. activity fixed advise management a we Point Five generally on which makes we the these and give of that impact compensation, for Point's to its are that we Venture base specific they incentive listeners try significant compensation the as the the receive As Venture's we members. We venture information fee monthly services, speaking not about a so, distributions Park X% Five Great operations. often management the to Great the have and about is Park do When of expressed

to like about bit give little you Great Venture's the results. to more I'd this a contributions Now background quarter's Park

as First, price the Venture as Park earlier, at consideration. to during Venture noted the in revenue land also addition quarter, the variable sale additional Great I the recognized participation

the call Venture of of homesites the price home future revenue the we revenue XX of closing, component land million at paid of $XXX mentioned XXX of be recall, plus participation acres paid a million approximately for will amount agreement recognized The was XXXX, homebuilder Park which fixed and Park of I May community. of as recognition sale $XXX.X land, a Luna million sales. Accordingly, from now asset. earlier, a to consisted on at of contract in As sale paid you the recognized $XXX closing from -- Great comprised

assessment might variable community, The Venture appropriate applicable and consideration home homebuilder is it You as million the future accounting consideration Venture's a think the $XXX.X increase now to experience of variable estimate near-term selling that the $XX.X of by payments. the of based representing future receivable, actual homes to of it guidelines, from was made forecasts million. estimate press participation upon and a the actively pricing, of total under in

where our consolidated Venture respect area the results Park is $XX.X Point performance other quarter incentive million of this the that Great reporting. compensation influenced the Five is with to Now revenue management

future estimate and amounts also, under venture are Here a other Five for acre our sale of quarter receive of market of a sale to at Venture's May quarter December of an this increase compensation generate. compensation the for the land are price values so, order recording venture revenue we he million the of just recognized. Since can of as acre. that revenue to the acre, XXXX base $X.X in additional the at resulting I Point we may of quarter which lead the are be that Five majority first currently previously management Point gave reported $X.X comments, the we Great in in the payment. contract in Luna is variable contract million to the that do the under million million in required our and as management increasing project Park of at a amount trend the If distributions, from the and per result per in estimates advance significant in that Park actual that this have the distributions by will receiving that expected per Dan's is to a activity discussed, and million Venture. to had close estimate $X.X factors, there incentive management adjustments earned it agreement a rise sale mentioned acre, consideration currently In adjusted the $XX.X the asset, $X.X to and was to partly of at expects our second activity by price just million the to of changes we which estimate, to recognized sale at incentive report acre it $X.X an with In participation

this million attributable has Point future management in of of to additional future will a distributions of changes Five These are incentive members XX, to revenue, be $XXX.X expected asset compensation occur. received cumulative As not to result nature. and a in as reoccurring be June contract adjustments estimates that when may payments for revenue

guidance. limited some for Now

have the and The as the performed and sales expect over mentioned capital sales any close annual attributable to not expected, the our excess Dan Great on primarily operator. third million $XXX end expenses expect income better that than This in quarter. revenue, generating to and to reported net a to $X which strong million $XXX I revenues, strong the performance focused of second small priorities Currently, land year the finished at the the we quarter Therefore, to around Park the Park. that, carefully turn are to our for quarter stay for will we $XX the priorities. With in call remains the quarter million. It residential critical of controlling of balance committed Great a us was year earlier. will both cash are return those expecting fourth in back of we loss we to spend to Valencia we with and managing million to strategic therefore, near-term and with match our of

Operator

is [Operator Zelman from Instructions] question Ratner Alan & with Our Associates. first

Alan Ratner

and the given the on for pieces. thank to see, Great Congrats additional you the very all quarter, progress. color this moving all helpful, continued

similar major about make kind this to right to think quarter's been am to and from Or think up kind it's it kind we look and range? years this million gross the that in of But per the quarterly there's about quarter estimates more that well. and understand forward, last of modeling this bar sure I over explained as of in is higher want a the run more question, management changes for you going I purposes, quarter, revenue kind forward? rate a service a of no think your revenue $XX first going My of resetting number this would several I higher assuming what just point I should

Daniel Hedigan

good Alan. from to Always hear you. Thanks, Yes.

question, Kim ask from answer to me get that so make the we I Let sure it authority.

Kim Tobler

Yes, the catch-up Alan, you because income it. It's of that expecting. identified additional projected a we're

as a And to it so there's mentioned. regular flow, more will catch-up, you back a but go

Alan Ratner

Got it.

All X product you Okay. changing, more can. plans to Number the facing bit issues That's Dan, helpful. right. you're questions the for mentioned little -- state you're me, if bringing of fire one, Valencia. for a in I some with the insurance, the I related and you mentioned guess,

I Great well. But my the to least -- should skewed think within all, detached I said. which if you applies more opportunity near that the as wasn't meaning first a be at towards Park wasn't the the are is more of if community sites in smaller we I now So if towards sure think you're home skewing I are -- length over guess of the the change plans, product, going community, of what that about question to term, is we density Does detached? number

Daniel Hedigan

good are Alan, Well, those actually questions. very

edge there's at say have an shouldn't some of it because Park available, I where premiums its an space not of of areas, issue. seeing issues -- open any increased. it's in it's there really we're issue, because but First, the Great how just on Valencia, situated. the insurance In insurance There's fire is new does the development and and it's fire

found So an home, projects, uncompetitive in home, working that higher the attached cost builders, with from attached what HOA a the they dues perspective. the make

motor so they can with separate insurance, cords, use moving using still get density, we're but high-density So still they're duplexes. duplexes,

So us is have from were entry get into we for away kind the market lower the price for gone XX-unit high-density a point allowed to because really people to buildings. market. they have good of the Those XX-unit,

happening So insurance, to that we'll of be what's and that expect entry-level think that to we to we go that type liked, state market. it's sort important to actually it's Once out a product. we able do the fire back the and again, is on do product segment really

As and have much much land time there. so far we so the as -- still

Our really move around. can units

material. So condition, I still really think at because we have But again, once unit the point, anticipate similar think issue. would, we is HOA we'd very counts dues this market a the this temporary current are

So why have want products. land, we to kind make we've for still do and to -- we to same come we us really land, adjustments to said, of need builders the can but that's pay some still amount

So getting ahead it term, and up issue. of long think the we've probably -- one proactive been that just similar yes? very I itself But we But in of counts. that end fixes with unit

Alan Ratner

else That's -- really helpful, going Dan, something say there? I were appreciate that. you then And sorry, to

Daniel Hedigan

think about in we're valuations was still We obviously had at we I to -- on it an impact valuation it and saying No, on just units, but land, had use all it I'm really the doesn't it any of our -- hasn't and always land hasn't going really an selling impact land. same on all.

about having have. market, just a it's in to like So really we which broader the really segmentation

Alan Ratner

but question, just guess up wasn't follow I that Got then. on other it. my to This

entry-level of and If how shift? it was. term, say that can And eliminating point kind point, what in the of that gone -- given you're what price has price by? it the of in you much is entry-level your now you maybe the at see up way kind kind near least Like

Daniel Hedigan

when that's opened through a product up also That lot with in duplexes, more of But a we back. In and some things we more level. able the real moved to up have and bring community happened and that under high-density hopefully high and years a future nature. $XXX,XXX -- opportunities we'll couple is But communities, like a be our of and the through high we the able variability for temporary with deliver would density, as the situation, pandemic probably probably home. of we're that couple Xs, X low density years was able what more detached increases from probably that X, X, ago, of say a naturally in as we things far get have to of low ago I detached we were still to entry moving cost Well, product. done

hope to we bring thinking it's we'll the But it, you're about mid-Xs. tell around that back. able somewhere be So you probably I now would if

Operator

question with Jackson Mycor next from Our Matt Capital. is

Matthew Jackson

ones the congratulations quick on and X Just Candlestick. progress on

of just you similar guess there? should look I Just you the you mention business have capital did then we that you come that for some to Or of going think this those outstanding. Valencia that going you both a a a for would into is joint of partnership Are to debt kind could look to help also do to being how that? there and be move on Obviously, more a expensive curious, like projects, structure guys. venture? And about to partner still like

the parts in year Just you curious all how kind like you like? company the the looks of a future and shake ultimately what think maybe hope moving will out

Daniel Hedigan

Matt, you for thank Well, that question.

partners First, those capital before We joining of at entitlement-first on to we us, on Valencia, additional the strategy. need that from both look deliver communities, are or an we working and think we entitlement. Candlestick

priorities are those communities. highest of of both so for those And both our

on. get to runway we're that longer a got has to that working Valencia so entitlement additional And

completion. of City I Candlestick And County folks us all As of past. a and the to San reach we're hand-in-hand in Francisco, towards noted, had that to working move and out we've the number

that at. structure we shareholders. the making particular So be whatever and do it's our for of again, sure looking create value most is going to there's not we're some any And best once one

to haven't on we tried land structure. So a

do model we have has here As for Mike Great us at worked Park. very the well a that indicated,

lean, seen in it we -- working with we that going how who part be up but of probably is to end area. that's So who's as

So to into coming a capital structure idea the -- that attract company. partnership from a include perspective, would would and pure be the

Matthew Jackson

Great. haven't That's just quarter, super am guess Valencia, on some sold no and curious, not I'm item. I helpful. just And a housekeeping this were the Valencia correct? imply homesites I looks you've that more the at homesites name times that at been then times [ other following reported of one. ] It does like --

Daniel Hedigan

correct? that sales talking close we quarter, you're Valencia. at to builders This land didn't sales is any about, Any

Matthew Jackson

land Yes. Yes. sales to Yes, builders.

Daniel Hedigan

closing -- there, quarter. talking sales of at did ones up fourth we will have we this Valencia. sales in Those the closed Yes, the about not land all queued we're quarter the builders

Operator

Private next from Chen [ Investor. is Our ], question Kyle

Unknown Attendee

kind past a team guys a and you assets I years, if done for job company. great Dan, of can. X.X I picture think I the valuable you actually in the are have big have your that the of question, highlighting

you've debt the out maturity. pushed SG&A, lowered You've

just You've that, you don't And residential despite $X things. to things commercial, these stock seem done the The is at selling public and care. all trading all still share. a are investors these your all and

to are So mean is see closer that's benefit investors my if public? doing? I the public something there formal I why question are not is, staying mean, who I these guess a at of to will private what process investors than book what's -- launch value why another assets way value the

Daniel Hedigan

the G&A of market. And to good right, there's the things is -- always as we us, of is don't our Well, to support a of always our opportunities, on Board very lot know of understand Kyle, price mentioned, that trying in And kind we to of really there And things get things that take set you're you going should and outlay. come question. the thank at that do always that we're hopeful would the you if We're But again, and I'll Board about we're focused once with cash our one that, -- Directors we're we've recognize will, And market one some really trying shareholders. look a is and opportunities. start capital at those some certainly would towards of those just here, on been point, for the things. engaged. the on that you are focused

sometime, we think in market to back be going the so options. But always will what hopefully, recognized. to considering us. It's question, to original itself just your And are presents that we open all

Unknown Attendee

Well, I that different ask to way question. guess a

cost process, a stock Why pulling there formally that what -- and out all doesn't -- all company, know think market. a put public private in you mean, the things, strategic an investors the you're levers be right launch I'm seem -- trading not investors along doing hearing to seem the for waiting also -- to And and you small, exploring reason you I a have incur you're the options. and public is Then care. the is are that public that? to being a like the you don't inbound I with there right inquiry, let say low any there's company

Daniel Hedigan

offers. And team available on options Well, you not here and The on that considered can Board I day-to-day them. we're inbound we have the to just you, our continues for really has focus the business. has phone waiting Board necessarily consider all to today, all running the assure options. are But

Operator

private question investor. Robert next Cohen, Our from is

Unknown Attendee

relates one venture. to ago, to next is so, planning if on they point? My Commercial Gateway I acres venture building, clarify those to XX% you And correct? office owned some wanted XX that Venture. selling that said I few just at believe question years owns your a acres first the are thing that on

Daniel Hedigan

that. it's lot, about of have here probably is Mike those understand He's -- as here parking campus longer a what of purchased. I might that. of But part can the So let actually overall are aspects is, the and part REA, really it's built to was But the Mike looking speak that an Kim building campus. been there's talk I when at, you other and a acres

Michael Alvarado

campus in campus. This acres that venture Broadcom. sold was which Yes. into interest. that XX own originally venture, to foot we build they acquired and going was we million-square XX% back campus X the XXXX, where to a a It were In

of let's envisioned been the and hope see plus So really and course, has as uses. R&D an campus R&D now, cancer/medical

ready So the commercial/development. for on future the really acreage campus living is

Unknown Attendee

Okay.

selling be that? could you point, some at So

Michael Alvarado

Yes.

Daniel Hedigan

Absolutely.

Unknown Attendee

quite could valuable. owned, At XX% that be

Michael Alvarado

that Hope. tenant already investor -- mind of is Broadcom buildings another Yes. we City that triple to their course, in sold, a we And X sold keep building then and of to net to other

of X this owned So the point. at X buildings other are parties by

Unknown Attendee

to Okay. the And in Valencia. value land question the of my next relates

rapidly if the land how obviously, So comment on you Park land over Great year? year. appreciated the much, value if the past any, I in the quite the wondering was increased could has in past over I know, in has Valencia

Daniel Hedigan

the really Great the our sure one property. mature we're with Park both the been in Robert, in of here of we're working and highest be trying one things the identifying to changes a think working on we've on just been our developing is plans, kind actually work Valencia, value and There that big values like in once have -- same been land to part market Great the doing we park, with quickly, think of pieces is we're fixed seen change, stay And we're as Haven't but Valencia into all Great not now that can to Park. of I changes. In we we're can't thing, the where able land builders Park, Valencia, I master at some much we've product-driven certain have in with. we same And that that. to been more achieve Well, increasing Great change the for pieces. we the and we've are -- to again, really make level that areas And there. process to fully able

to gotten haven't that We point, should say. I

and be ways appreciation higher But the expect but value but point work continue Valencia, Irvine it. create going going for to bit unique to we're is that a market, We in seeing land. a to we to achieve to builders are always we with find to haven't to got of little that

Unknown Attendee

relates Okay. wondering fits plant be they the if Lennar. I a plans? And what how you Will their moving stake? stake model. just And have can Do they'll be Five shareholder, be XX% largest to their this any selling question. Points question an they asset-light Or if knowledge to don't last your know you spinoff? about into I know they're I you answer transferring, into doing? my But was will believe

Daniel Hedigan

not. Robert, we do

Unknown Attendee

Okay.

they've I in no -- no But so and place. about plans. their I back you there's what's you going know have wasn't Okay. knowledge sure. forth Yes, taking on communications of to been I their going -- a lot input have know be of

Operator

Andrew ], investor. question next private Our is Okon from [

Unknown Attendee

guys is up a to question that rest with in that lab that it and the do read residential is -- mix and labs news is be I'm recently going units My pretty associated what seem and would I you market be Candlestick. wondering, is appears the to that approximately like setting X,XXX And now. difficult right office And mix space. because obviously, office are the

Daniel Hedigan

them So Point, of we've And we as before balance we there of would allowed were with and with X the certain is city Hunters a right that now, Andrew, on a with units. square that community a the of we commercial comprehensive was flexibility are a we're with because footage because in residential Candlestick amount commercial uses at working delays that the how designed delay doing there kind the delays Hunters within of because early the Canyon all of footage what number you and both of what kind But build you concurrently. anticipated strategy can't -- in preset needed are preset that them happened been a Point square concurrently. both build between

going we market that strongest, with an opportunity is really understand where gives -- it commercial, be it's is us to really it if the will isn't more more think And that. flexibility oriented, the the looking is will we're commercial there this we commercial. floor It's a than about working are to term, really we're But commercial when we we uses. plates to flexibility market. them, when idea set of. But more office. residential the the for what different We the have traditional we're market more to needs rebalancing, to but one to meet be it need really that. still, So able different the office residential. it next that us at be -- have a working really city do you market the talk would development. to city work type we say, there let have is needs of is our where If now the market. to of There's and the don't with flexibly but And and more different it whole labs and be commercial entitlement, county basket doing meet long segment What something able R&D plan out use

best creates there. to going tells build market what we're the So out value us, the

Unknown Attendee

Okay.

previously, you guys are be the was your before capped are -- going build So saying together? units you residential when what at entitled to that will the combined

Daniel Hedigan

move anything really just there. have kind we're out again, or is to It once plan around. to of Well, master add place Yes. the not flexibility in subtract them and to trying keep

use nothing approved. that there's how we It's long your and back There again, to Candlestick be your will that residential. once where us time adjust a So but to adjust not the tells ask about really couldn't was though, opportunities that, go flexibility, city development need today frame favorite again, is pick to we it. say what once question more process. that That's we for and

Operator

is next Kaplan Myron Our question , private investor. from

Myron Kaplan

this go paragraph the just one, entities. I is have that Great Venture then to a totaled which release, equity million. just Park I first unconsolidated there's distributions today's the page, next technical earnings In thing. And $XX.X when from you of the say and

the turn have income paragraph, was First, $XX.X on the contribution for percentage you of interest. And share that million. $XX.X net XX.X then it if a of that says the I page, million

different So how be X -- numbers? could come

Kim Tobler

And hear note Myron, you what there today. that are received. to all, it's you is Kim. that again to want being This good distributions of First are is

So is cash numbers we're receiving. that the one the of

our there'll is quarter-to-date other be earnings, and the share there'll The of numbers. be numbers, and year-to-date

up, those looking to so you which need you you're line at. know one so And

Myron Kaplan

what to quarter? Venture cash Five the contribution second the in Great Park was from So Point

Kim Tobler

quarter? second the In

Myron Kaplan

Yes.

Kim Tobler

million. was the The equity $XX.X cash earnings $XX.X And was in million. distribution

of So then $XX.X received $XX.X $XX.X our and million they million. was the we cash months, earnings share gave the $XX.X of their Myron, of And and and us. earnings, had amount equity is we million of cash X million for

Myron Kaplan

Right.

Okay. Well, that's good. welcome. Certainly

Kim Tobler

You're very welcome.

Myron Kaplan

vast can such opportunities there's that think would a for about up, down I or you been glad pedal up I'm and lot throttle a project mean the pretty much on trying push you've step time. Valencia, volume which these put, do let's you're X stepping see that more to a in cylinders you and say, get running And long to entitled. if the think I been to villages it's you're

Daniel Hedigan

We agree.

Myron Kaplan

ask I before? Can you done why it haven't me

Daniel Hedigan

County said, we you pace entitlements it's factor of which our is. Los the the the through limiting can at Angeles, As get that's what

Myron Kaplan

fourth place take your contract mixed-use sale see. in you're talking the And a -- line? there's that's county near parcel that that you going I quarter, had the XX-acre is where about the that's piece if that to

Daniel Hedigan

Yes.

Myron Kaplan

residential mostly that's commercial? become going or to So

Daniel Hedigan

SFD It's traditional sale. for to a be going

Myron Kaplan

I'm sorry?

Daniel Hedigan

It's going traditional to housing. Single-family housing. be detached

Myron Kaplan

is have it's Very of until great all it's company mean and guess, going I basis. the end a mean basically, just to have the snooze mean I outcome, good. more you'll we even I -- to year, good. terrific. I be then Yes. so the secure in and an

Daniel Hedigan

year-end. be will I you, not team We're going this snoozing working to to assure be hard.

Myron Kaplan

them when in the No, [indiscernible] it whip you're to be you'll get you end at a steer of the have there'll and gets in to got like to so bank. cowboys, town the moving. the day, money keep you But a dark, be

Daniel Hedigan

Myron. Thanks,

Myron Kaplan

well. pretty doing You're

the well even -- think things doesn't And I looks ought like pleased "the going we care." for market, you're quite investor be retail the are things though, to stockholders it I company. guess, doing

Daniel Hedigan

Well, thank you.

Operator

Dan Thank I would at for comments. to are hand further floor no any you. over There the time. this Hedigan back to like questions closing

Daniel Hedigan

today's us on we you call, Well, joining forward our management look we behalf next team, to thank with everyone. thank you, On you for speaking and of quarter.

Operator

This conference. today's concludes

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

Five Point (FPH) 18 Jul 242024 Q2 Earnings call transcript