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Greetings, and welcome to the Five Point Holdings, LLC Q1 2026 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, acquisitions, 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.

Please note that Five Point assumes no obligation to update any forward-looking statements. Now, I would like to turn the call over to Dan Hedigan, President and Chief Executive Officer.

Thank you. Good afternoon, and thank you for joining our call. I have with me today Mike Alvarado, our Chief Operating Officer and Chief Legal Officer, Kim Tobler, our Chief Financial Officer, and Leo Kij, our Senior Vice President of Finance and Reporting. Stuart Miller, our Executive Chairman, is joining us remotely. On today's call, I'll update you on our Q1 results and will provide an overview of the current state of our business, including our operating strategy and expectations for the remainder of 2026. Mike will then discuss our Hearthstone venture and other growth initiatives in more detail. After which, Kim will review our financial results and outlook. We'll then open the line for questions. Turning to the Q1. As expected, we began 2026 with a relatively quiet quarter from a land sales perspective and reported a consolidated net loss of $5 million.

This result was driven primarily by the timing of land sales, as we did not have any significant residential land closings during the quarter. As we've discussed in prior periods, our earnings are inherently tied to the timing of land transactions, and we expect variability from quarter to quarter depending on when these sales occur. From a revenue standpoint, we generated $13.6 million during the quarter, primarily from management services associated with our Great Park and Hearthstone segments. From a balance sheet perspective, we ended the quarter with total liquidity of $550.1 million, including $332 million of cash and cash equivalents. This level of liquidity continues to provide us with substantial flexibility to operate the business, manage through market cycles, and pursue strategic opportunities, including the $40 million share repurchase that we announced today, which I'll discuss in more detail later in my remarks.

Operationally, activity across our communities remained steady. At the Great Park, builders sold 82 homes during the quarter, while Valencia saw 90 home sales. While these volumes reflect a more measured pace than we saw at certain points in 2025, they demonstrate continued engagement from the home buyers, even in a more challenging environment. As we look ahead, we continue to expect our earnings in 2026 to be weighted toward the Q3 and Q4s as land sales close and fee-based income from Hearthstone grows. Let me now turn to the market. The current market environment is unsettled, and consumer confidence has been impacted by a number of factors, including geopolitical uncertainty stemming from the conflict in Middle East, increased volatility in financial markets, and mortgage rates that have risen again recently after trending down briefly.

We're seeing the impact of these dynamics across the home building sector as consumers have been hesitant to make large purchase decisions in uncertain environments. Prior to the start of the conflict in the Middle East, we saw green shoots of improvement in consumer confidence, driven in part by a reduction in mortgage rates. We believe that markets and demand will recover following the resolution of the conflict. These recent trends have translated into slower absorption rates and a more cautious approach by builders in committing to new land purchases in the near term. That said, since our communities are located in California markets that remain chronically undersupplied, we continue to see demand for our homesites. With our liquidity and balance sheet, we have the flexibility to adjust the pace and structure of our land sales in order to protect long-term value.

I'll share more about our land sales during my community updates. Let me now turn to the $40 million share repurchase that our board has approved. We believe the share repurchase gives us the ability to opportunistically deploy capital at an attractive return, given that our shares are currently trading at a significant discount to book value. Importantly, the repurchase has been structured to preserve financial flexibility. Even after execution, we expect to maintain substantial liquidity to support our operations, development activities, and strategic growth initiatives. Let me now turn to our operating strategy. As a reminder, our strategy is built around four key elements. First, we are focused on optimizing homesite value within our master-planned communities by aligning land sales with home builder demand.

In the current environment, this means being disciplined and patient, and in some cases, moderating the pace of land sales or using different land sales structures to maintain long-term value. Second, we're maintaining a lean operating structure and carefully managing our fixed costs and overhead. This discipline has been a defining characteristic of Five Point over the past several years and remains a core focus as we move forward. Third, we are matching development expenditures with revenue generation. We continue to take a measured approach to infrastructure spending, ensuring that capital is deployed in line with near-term monetization opportunities. Fourth, we continue to expand our platform through capital-light growth initiatives. The addition of the Hearthstone platform was an important step in this strategy, and we continue to evaluate new land development opportunities focused on managing capital dedicated to providing housing in select U.S. markets.

Our focus will remain on executing against these priorities as we navigate the current environment and position the company for long-term growth. Let me now provide you with some updates on our communities, starting with the Great Park neighborhoods. At the Great Park, we continue to see steady builder activity, with 82 homes sold during the Q1. While absorption has moderated compared to prior periods as certain collections have sold out, builder interest in the community remains solid, and we continue to work closely with our guest builders on future land sales and program development. We currently have 12 actively selling programs in the Great Park neighborhoods, with seven additional programs planned to open later this year. These current and upcoming programs will ensure our guest builders can continue delivering a wide variety of housing options throughout Great Park neighborhoods.

We also recently completed the bidding process and have selected the builders for five new residential programs totaling approximately 28.5 acres. These builders are currently in due diligence, and we expect to close these land sales by the end of this year. We anticipate pricing will be consistent with our most recent land sales. Next, I'll discuss Valencia, our other active community. Valencia is in the beginning phases of a long-term development timeline and is poised to provide critical housing in the Los Angeles market. Builders sold 90 homes here during the quarter, reflecting continued progress at our first village in the community. We currently have 11 builder programs open and actively selling. We anticipate 6 new programs will open over the course of 2026. We're also currently in discussions with builders about potential residential land sales in 2026.

Which may include a rolling option land sale structure that helps enhance our land values by reducing the carry cost for the builder. As I noted earlier in my comments, our balance sheet and liquidity allow us to be patient and to pursue creative solutions in order to optimize value obtained for our homesites. As we discussed on our last call, the entitlement approvals we secured for Entrada South and Valencia Commerce Center in 2025 have significantly enhanced the long-term value and development potential of this asset. As a reminder, Entrada South is expected to consist of approximately 120 net acres of residential land, over 1,300 market-rate homesites, and approximately 40 net acres of commercial land, while Valencia Commerce Center is expected to include approximately 110 net acres and will cater towards industrial light manufacturing-focused uses.

We are now working with our engineering team to prepare the infrastructure plans and ministerial permits in order to start development of these two villages, which we expect to start in the H1` of 2027, with our first land sales projected to occur in 2028. We'll have more to report on our development activities for these two villages in the coming quarters. Additionally, we continue to advance approvals for three additional villages. Upon approval, these villages, together with our existing entitlements, will bring our total to more than 10,000 entitled homesites, providing a substantial long-term pipeline of homesites to support L.A. County's chronically undersupplied housing market. Turning to San Francisco, we're waiting for issuance of final permits to initiate the next phase of land development at Candlestick. We expect that this initial work will begin shortly.

Our development is starting at a time when residential rents and home prices in San Francisco are rising, and the demand coming from AI and other tech companies in the commercial space seem to be growing quarter after quarter. Our intentions are to start engaging with potential large users who are ready to build on the momentum San Francisco has been generating and become an anchor in Candlestick's rebirth as a thriving mixed-use urban community located directly on the San Francisco Bay. Before moving on, I just want to reiterate that across all of our communities, our approach remains consistent. We're focused on pacing development and homesite sales in a way that aligns with market conditions and optimizes long-term value. Now let me touch on Hearthstone briefly.

The integration of the Hearthstone team and operations have continued to progress well, and we expect our management fee revenues to increase as recently committed capital is deployed into new projects. Mike and Kim will provide additional detail on operational financial results for Hearthstone in their remarks. Before I wrap up, let me provide an outlook for the rest of the year. We are reaffirming our guidance and continuing to expect consolidated net income in 2026 to be approximately $100 million, with our earnings weighted more heavily towards the H2 of the year. Let me conclude by saying that while the market environment has become more challenging in recent months, Five Point remains well-positioned with a strong balance sheet, substantial liquidity, and a deep inventory of well-located land in supply-constrained markets.

These strengths provide us with the flexibility to navigate near-term uncertainty while continuing to focus on long-term value creation. We also have a very experienced team with seasoned professionals who have been through numerous market cycles and disruptions and have the depth of knowledge to navigate through these cycles in a constructive manner. As always, we'll continue to monitor market conditions directly and adapt as needed. With that, I'll turn it over to Mike.

Thanks, Dan. Let me begin by discussing our Hearthstone venture, which provides management services to residential land banking funds. As a reminder, Hearthstone is the manager for multiple separate fund vehicles, where Hearthstone receives management fees and generally invests 1% of the equity required for the operations of each particular fund. As Dan mentioned on our last call, we anticipated securing commitments from significant new capital partners for the Hearthstone platform during the Q1, and we successfully closed two new funds for a total of $600 million in new equity commitments. This will provide the platform with the ability to deploy approximately $1 billion in capital with leverage. The Hearthstone platform currently has approximately $3.4 billion in assets under management and has over 30,000 home sites under control, with 13 home builders in 16 states.

Needless to say, this platform is operating in active housing markets across the U.S. and with the country's leading public home builders. We are very excited about the strength of the Hearthstone team and the potential to scale this business. Moving beyond Hearthstone, you have heard us discuss that we are exploring additional growth opportunities available to Five Point, particularly in our core land development business, by utilizing outside capital partners to joint venture with on these projects, integrate additional fee-based revenue streams. This is a familiar structure for us as we have used it successfully at The Great Park. Our confidence in finding future opportunities lies in the fact that the U.S. home building market is anchored by large national builders with significant and recurring demand for finished home sites.

The numbers are substantial, to say the least, especially when it is widely reported that these numbers continue to reflect a significant shortfall compared to demand. Based on the home deliveries reported by the larger public home builders, the size of the addressable market is north of 250,000 home sites per year. This demand should create the underpinnings of a durable and growing opportunity for institutional land developers like Five Point. We are continuing our work to identify opportunities that will provide recurring management fees and attractive returns on investment, and we expect to have more to report on these initiatives on future calls. Now, let me turn it over to Kim, who will report on our financial results for the quarter.

Thank you, Mike. As Dan shared, as expected, this was a quiet quarter without land sales, and we recognized a small loss of $5 million. Our Q1 loss of $5 million was largely made up of the following components. We had $13 million of management services revenue, $6.9 million associated with our management of the Great Park Venture, $3.5 million of that, which was incentive compensation, and $6.1 million associated with Hearthstone. There is $6.9 million of management services costs and expenses associated with that revenue. We recognized a small loss from our unconsolidated entities of $145,000, largely because we did not have any sales at the Great Park Venture.

Our Q1 SG&A was $14.7 million, consistent with the prior year Q1 of $14.8 million. Finally, we recognized $900 thousand of tax benefit. Now a few words about our cash and liquidity. As Dan mentioned, we ended the quarter with $332.6 million of cash, as well as $217.5 million of availability on a revolving credit facility, resulting in total liquidity of $550.1 million. At the end of the quarter, our debt-to-total-capitalization ratio was 16.3%, and our net debt was $117.4 million.

I'd also like to note that during the quarter, we paid down principal of $40.1 million in accrued and current interest of $6.2 million with respect to our related party EB-5 reimbursement obligation. This leaves approximately $18.5 million due on this obligation. I would like to now provide a little more information regarding our Hearthstone venture. First, Mike shared that as of the end of our Q1, the assets under management were $3.4 billion. When considering this number, I would like to note that we do not earn fees on a portion of the AUM that is attributable to builder deposits. As of March 31st, such builder deposits were approximately $600 million, which leaves $2.8 billion of fee paying assets under management.

Also, I want to mention that historically, Hearthstone's asset management fees have been made up of a monthly base fee plus a deferred performance fee. The performance fee is based on overall returns at the end of the fund or tranches within the fund. I mention this because you will see some volatility in the implied fee associated with changes in estimates of the performance fees and true-ups when funds or tranches are complete. Finally, as Dan mentioned, we are reaffirming the guidance we gave at the beginning of the year, and we expect to end the year with approximately $100 million in earnings, with the expectation that we will have material sales in the Q3 and Q4s. Dan also mentioned that our board has approved a share repurchase of up to $40 million.

While we are not predicting at this time over what period the share repurchase will be effectuated, we anticipate that we will finish the year with more than $300 million in cash and total liquidity of over $500 million even after taking share repurchases into account. With that, let me turn it back to the operator, who will open the line for questions.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys.

One moment, please, while we poll for questions. Our first question comes from the line of Alan Ratner with Zelman & Associates. Please proceed with your question.

Hey, guys. Good afternoon. Thanks for taking my question. First question, maybe I'll start with Hearthstone. Just listening to home builder conference calls this quarter, I think land banking's been a pretty topical issue that investors are focusing on. I'm curious if you could just talk through a little bit how your typical land banking deals with builders are structured in terms of deposits, in terms of are they monthly payments for interest or quarterly, annual? Have you seen more recently any changes in appetite from builders in terms of their appetite for land banking? Thank you.

Hey, Alan. Dan. Thank you for the question. I'm going to give this one to Kim, if you don't mind. He can give you a little more detail.

Hi, Alan. Just quickly, without getting too granular, our land banks use a contract where there's a monthly option payment. The builder has a right to buy the land at the cost that we purchased it at, plus any improvements that were made during the life of the contract. That's the typical arrangement that we have.

Got it. Have you seen any changes in appetite from builders? I know it's a short time period, but I guess over the last few months here. Has there been any kind of changes in what they're seeking in terms of terms, or has it been pretty consistent?

No, very consistent. We're still seeing reasonable interest and progress.

Great. Another question, shifting to the development side. With fuel prices on the rise here, I'm curious, have you started to see any inflation creeping back into your development expenses? Is that something you're concerned about or focused on? And just generally, if you could talk more broadly about what you're seeing on inflation, that would be great. Thank you.

Thanks, Alan. Right now, I think from a standpoint of your question on fuel costs, it's a good time for us. We're not actively grading. We won't be starting any active grading up in Valencia till the end of the year. That hopefully gives us a real opportunity for these markets to stabilize on the fuel side. We are doing some grading at the Great Park, but pretty much most of our work had been done there, so we're kind of doing the fine grading. We haven't really seen any major impact, any costs in our budgets caused by fuel. But obviously, we'll have more to say or think about that as we get towards the end of this year and we start some active grading. Overall, though, we are not seeing any additional increases in our budgets right now for our land development.

Great. I appreciate it. Thanks a lot.

All right. Thank you, Alan.

Thank you. As a reminder, if anyone has any questions, you may press star one on your telephone keypad to join the Q&A. All right. Thank you. We have reached the end of the question and answer session. Therefore, I'd like to turn the floor back over to CEO Dan Hedigan for closing remarks.

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

Thank you. This concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation.

Greetings and welcome to the Five Point Holdings' Fourth Quarter and Year-End 2025 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, acquisitions 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. Please note that Five Point assumes no obligation to update any forward-looking statements. Now I would like to turn over the call to Dan Hedigan, President and Chief Executive Officer.

Thank you, Vaughn. Good afternoon, and thank you for joining our call. I have with me today, Kim Tobler, our Chief Financial Officer; and Leo Kij, our Senior Vice President of Finance and Reporting. Stuart Miller, our Executive Chairman; and Mike Alvarado, our Chief Operating Officer and Chief Legal Officer, are joining us remotely. On today's call, I will review our fourth quarter and full year 2025 results, which marked another important milestone for Five Point. I'll discuss our operational progress during the year, highlight several major accomplishments across our communities and outline our strategic priorities as we move into 2026. Ken will then walk through our financial results in more detail and review our outlook. We'll open the line for questions following our prepared remarks. Turning first to our results. I'm very pleased to report that 2025 was another record year for Five Point despite challenging market conditions. In the fourth quarter, we generated $58.7 million in net income, resulting in annual consolidated net income of $183.5 million, exceeding our prior record set in 2024. Our net income for the year exceeded the revised guidance we issued in Q2 2025 by roughly $6 million, reflecting our team's expertise and consistent execution across our platform, disciplined capital management and continued pricing strength at the Great Park. Beyond our strong financial results, we also obtained critical entitlement approvals during the fourth quarter at both Valencia and the Great Park. I'll provide additional detail later in the community updates. These entitlements will enhance our near-term cash flows by creating a foundation for the company's future development. It goes without saying that we could not have hit these operational and financial milestones over the past few years without the dedicated and focused efforts of our small and efficient hard-working team. During the 3 months ended December 31, 2025, we were able to close meaningful land sales of both of our active communities. In Valencia, we closed an industrial land sale consisting of 13.8 acres for a purchase price of $42.5 million. At the Great Park, the venture closed 3 new home programs with 187 homesites on 19.7 acres for an aggregate base purchase price of $181.5 million. As a result of Great Park operations during the quarter, we received $73.6 million in distributions and incentive compensation payments from the Great Park Venture. Let me now talk about the market. 2025 unfolded against the housing market that remained challenging, shaped by economic uncertainty, elevated interest rates and affordability constraints. Even so, our results underscore the resilience of our assets, which in part derived from the consequences of operating in supply-constrained California markets. At the Great Park, homebuyer and builder demand remained strong throughout the year, allowing us to close the sales on 13 different programs consisting of 920 homesites while maintaining -- while also maintaining pricing discipline. In Valencia, although home sales volumes were more modest and we like to delay residential land sales to our guest builders, the long-term value of the asset was significantly enhanced by securing major entitlement approvals that will support the next phase of our residential and industrial development activity. As a number of public homebuilders have recently noted, homebuyer demand nationally has continued to be tempered by ongoing affordability headwinds. We have seen this impact more in Valencia than in the Great Park, but we believe that demand will continue to be supported by the persistent undersupply of housing in our core markets. As we look ahead, we expect that despite intermittent challenges from interest rates or other factors that affect consumer sentiment, we should see growing buyer confidence and moderating interest rates translate into improving demand for well-located homesites. Against this backdrop, in 2025, we significantly strengthened our company. From a financial perspective, during the year, we materially enhanced our balance sheet and capital structure. We refinanced our senior notes, issuing $450 million of 8% notes due October 2030 and repaying another $75 million, which will reduce our annual interest expense by approximately $20 million. Since January 2024, we have paid down a total of $175 million in debt. Additionally, we expanded and extended our revolving credit facility to $217.5 million with a new maturity of July 2029. These actions greatly reduced our near-term refinancing risk while preserving substantial liquidity. We ended the year with cash of $425 million and total liquidity of $643 million. Importantly, our balance sheet and liquidity provide us with exceptional flexibility around capital allocation, including the ability to engage growth opportunities, which I will discuss later, as well as the ability to potentially return capital to shareholders over time. To be clear, however, our first priority is to pursue our growth strategy as we seek to expand recurring revenues. From an operating standpoint, 2025 was defined by securing critical entitlement approvals in Valencia and the Great Park, steady demand at the Great Park, continued progress on land development activities for the next phase of infrastructure at Candlestick and the successful closing and integration of the Hearthstone land banking platform, which added a pivotal new earnings stream to our business. Before turning to community updates, I want to briefly review our operating and growth strategy, which continues to guide our decision-making. Our strategy rests on 4 core pillars. First, maximizing the value of our existing communities. This means aligning land sales with builder demand, pacing development appropriately and maintaining the flexibility to be patient when market conditions warrant it. Second, maintaining a lean operating structure. Even as we've grown earnings and expanded our platform, we remain disciplined in managing overhead and fixed costs. Third, matching development spending with revenue generation, ensuring capital is deployed efficiently and not too far in advance of monetization. And fourth, expanding our platform through targeted growth initiatives, most recently through the addition of Hearthstone and its short-term land banking business. Let me now provide you with some updates on our communities, starting first with the Great Park Neighborhoods. During the fourth quarter, builders in our Great Park community sold 78 homes versus 187 in Q3. This decrease in sales is primarily attributable to seasonality and reduction in available home supply as existing collections sold out. We currently have 12 actively selling programs in the Great Park Neighborhoods with 8 additional programs planned to open later this year. These current and upcoming programs will ensure our guest builders can continue delivering a wide variety of housing options throughout Great Park Neighborhoods. During the year, we closed multiple large residential land sales, many of which incorporated price participation structures designed to balance near-term certainty with long-term upside. The 3 programs we closed in the fourth quarter utilized this price participation model. An average base purchase price for these fourth quarter sales was $9.2 million per acre before taking into account potential price participation. These transactions spoke for our ability to adapt structure without sacrificing value. We currently are in the bidding process with builders for 4 new residential programs totaling approximately 27 acres. We expect to complete the bidding process and close these land sales by the end of this year. Importantly, we also received approval from the City Council for new entitlements that will allow us to convert approximately 100 acres of commercial land into additional market rate homesites, further advancing the value of this community. Next, I'll move to Valencia, our other active community. Valencia is still in the early stages of its development and has many future phases of land delivery ahead of it, which will enable us to provide much-needed housing in the Los Angeles market. Home sales showed improvement during the quarter as our guest builders sold 70 new homes versus 50 in Q3. During the fourth quarter, 2 programs sold out in Valencia, and we now have 10 builder programs open and actively selling. Additionally, we anticipate 6 new programs will open during 2026, offering prospective homebuyers additional home product options. As I mentioned, we closed our first significant industrial land sale in over 15 years at Valencia during the fourth quarter, consisting of 13.8 acres for a purchase price of $42.5 million. In order to optimize land values, we elected to delay residential land sales in 2025. We are currently talking to our guest builders about potential land sales in 2026. Although we did not complete any residential land sales, 2025 was a transformational year for Valencia as we received unanimous approval from Los Angeles County Board of Supervisors for the Entrada South and Valencia Commerce Center entitlements. Like California and Valencia, in particular, have a long history of land use litigation, challenging new housing projects, which unfortunately, we've had to build into our business planning, we're happy to report that no litigation was filed to challenge the approval of these communities, an outcome that will allow us to accelerate our development time line. Entrada South is expected to consist of approximately 120 net acres of residential land, over 1,300 market rate homesites and approximately 40 net acres of commercial land, while Valencia Commerce Center is expected to include approximately 110 net acres and will cater towards industrial-focused uses. We're also pursuing approvals for 3 additional villages. When approved, these villages, combined with existing entitlements will provide over 10,000en titled homesites, creating a deep pipeline for future land sales to help meet demand in the county's chronically undersupplied housing market. These approvals will substantially enhance the long-term value of Valencia and will position it to become an increasingly meaningful contributor to our results. Turning to San Francisco. We're finalizing engineering for the next phase of infrastructure and we're working with local agencies and ministerial infrastructure permits for the initial site work. We still expect to begin this initial site work at Candlestick in the first half of 2026. Now let me discuss Hearthstone. We closed the acquisition in Q3 of 2025 and the Five Point and Hearthstone teams hit the ground running. I want to reiterate how excited we are to have this incredible talented and experienced group from Hearthstone as part of Five Point. At closing, Hearthstone had approximately $2.6 billion of assets under management and that figure has since grown to approximately $3.4 billion. Additionally, we anticipate securing $300 million to $500 million of newly originated capital commitments in the first quarter. In 2025, Hearthstone contributed $11.8 million of management fee revenue and $3.5 million of net income to Five Point's consolidated results. Beyond the near-term financial contribution, Hearthstone considerably expands our relationship with institutional capital partners and builders and provides a scalable platform for fee-based earnings growth. With Hearthstone, Five Point now participates in both long-duration master planned community development and shorter duration land banking, creating a more balanced and diversified earnings profile. Now that we are well into the process of integrating Hearthstone, we're exploring additional revenue growth options available to Five Point. We're currently evaluating middle duration opportunities in the land ecosystem in order to grow a durable platform for the future. While I can't provide further information at this juncture, our management team is focused on leveraging our experience, balance sheet and capital relationships to pursue opportunities utilizing outside capital partners to create additional fee-based revenue streams using an asset-light approach. We expect to have more to report on these initiatives on future calls. Before I wrap up, let me provide an outlook for 2026. Based on what we have seen today, we expect consolidated net income in 2026 to be approximately $100 million. We expect our earnings will be weighted more heavily towards the second half of the year as land sales and fee-based income accelerate. The volume and timing of our planned land sales are largely a reflection of our strategy of matching sales to absorption of homes in our communities in order to optimize land value. Let me conclude by saying how proud I am of what our team accomplished in 2025. We delivered record earnings, strengthened our balance sheet, advanced major entitlements and expanded our platform in a meaningful way, all while maintaining a disciplined and patient approach to capital deployment. Five Point enters 2026 with exceptional liquidity, a deep pipeline of entitled land and a broader set of tools to create value across the land development cycle. We believe this positions us well to continue delivering consistent performance and long-term value for our shareholders. With that, I'll turn it over to Kim to walk through the financial details and outlook in more depth.

Thank you, Dan. As Dan shared, we finished a challenging year strongly and are positioned to effectively bring land in our existing communities to market, grow our Hearthstone land banking platform and seek other growth opportunities in coming years. I'm going to review our fourth quarter and annual results for our fiscal year ended December 31, 2025. I will then conclude with some guidance on what we are expecting in 2026. In the fourth quarter, we recognized $58.7 million of net income. This is made up of the following components: we added $42.5 million industrial land sale at our Valencia community and reported a 31.25% gross margin. We also had $33 million of management services revenue, $24.6 million associated with our management of the Great Park Venture and $21.2 million of which is incentive compensation. And finally, $8.4 million associated with Hearthstone. Our fourth quarter SG&A was $16 million. We recognized $44.9 million of equity in earnings from our unconsolidated entities, $44.2 million of which was generated by the Great Park Venture. The equity and earnings from the Great Park Venture resulted from net income of $128.2 million, which was largely attributable to land sales revenue of $181.5 million from closings in the quarter, for which we reported a 75.5% gross margin. Finally, we recognized $8.9 million of tax expense. As previously noted by Dan, our results for 2025 improved relative to 2024, demonstrating the impact of the sustained focus and operational discipline we have maintained over the past several years. For the year 2025, we recognized $183.5 million in net income that is made up of the following components: our fourth quarter industrial land sale at Valencia that I previously mentioned. We also had $65.3 million of management services revenue, $53.5 million associated with our management of the Great Park Venture, $40 million of that, which is incentive compensation, and $11.8 million associated with Hearthstone's 5 months of activity. 2025 SG&A was $60.6 million, which was more than 2024 SG&A of $51.2 million. That increase was largely attributable to the Hearthstone acquisition costs, increased share-based awards granted over the past 2 years, and performance-based awards reaching established goals. We recognized $203.6 million of equity in earnings from our unconsolidated entities, largely made up of $201.3 million from the Great Park Venture. The equity in earnings from the Great Park Venture was attributable to Five Point share of the venture's net income of $584.5 million, which was derived from revenues of $825.7 million. Additionally, we recognized $28.9 million of tax expense. In addition to what Dan shared about our cash and liquidity, I also want to add that at the end of the year, our debt to total capitalization was down to 16.3% compared to 9.6% at the end of 2024. Now a few words about our Hearthstone operations. As Dan mentioned, we ended the year with approximately $3.4 billion of assets under management, which is tracking with what we had expected. In the fourth quarter, Hearthstone generated revenue of $8.4 million and net income of $3 million. For the 5 months of 2025 that Hearthstone was part of Five Point, it generated revenue of $11.8 million and net income of $3.9 million. I'd like to note that included in calculating that income was intangible asset amortization associated with the purchase accounting of approximately $800,000. We are expecting to exceed $4 billion of assets under management before the end of 2026 and expect revenue and net income to grow commensurately. Last year, I recounted the financial progress that Five Point had made since 2022. I'd like to review that again while including our 2025 results. At the end of 2022, we reported a $34.8 million net loss and finished the year with $131.8 million of cash and senior notes outstanding of $625 million. For 2023, we reported $113.7 million of net income and finished the year with $353.8 million in cash and senior notes still of $625 million. For 2024, we reported $177.6 million of net income. We paid our senior notes down by $100 million to a balance of $525 million and ended the year with $430.9 million of cash and total liquidity of $555.9 million. This year, we are reporting $183.5 million in net income. We paid our senior notes down by an additional $75 million to a balance of $450 million and are now ending the year with $425.5 million of cash and total liquidity of $643 million. We are confident in the actions we have taken to strengthen our financial condition as well as the successes we have recently reported with additional entitlements at the Great Park and Valencia. I'd like to conclude by giving some context to the guidance that Dan shared in his remarks. At the beginning of 2026, we have total -- we have a total of approximately 155 net acres of residential land remaining at the Great Park. We also have approximately 55 net acres of residential land, 11 net acres of retail land and 13 net acres of industrial land available at Valencia. These numbers do not include the recently approved entitlements at Entrada South and Valencia Commerce Center that Dan mentioned. We expect to start generating sales from these recently approved entitlements early in 2028. In 2026, we currently expect to sell 20 acres of land in Valencia and 50 acres of land in the Great Park. These sales, together with the contribution of the Hearthstone activities, is expected to result in approximately $100 million of net income for 2026. We expect the majority of the income to be earned in the second half of the year and are expecting a small loss in the first quarter of the year since we are not planning to close land sales in that quarter. In closing, our guidance reflects a challenging housing market, and our strategy remains focused on discipline. By aligning land sales with home absorption, we are projecting -- protecting value, managing risk and positioning the business for normalized demand over time. We believe this approach balances near-term caution with long-term opportunity. With that, let me turn it back to the operator, who will now open it up for questions.

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

Congrats on all the progress in 2025, really impressive results in a tough market, tough housing market, at least. So a lot to run through. I guess just thinking about '26, and I appreciate the guidance there, especially on the revenue and the income generation. I'm just curious when you think of your...

Alan, we lost you. Can you repeat the question?

Can you hear me okay? Can you hear me now guys?

We couldn't hear Alan.

Can you hear me now?

Hear you, but we could not hear Alan. Alan, is that you?

Alan, can you hear the speakers?

I can hear the speakers. Can you hear me?

We hear you now, Alan.

Okay. Sorry about that. I don't know what happened. So I will start over. And first off, just congratulating you guys on all the great progress you made in '25. So what I was hoping to get, and I appreciate the guidance on the income drivers for '26. When you look, I guess, specifically at the 2 wholly owned projects, Valencia and San Francisco, I was hoping you could walk through a little bit what the expectation is for development expenditures in '26 and beyond. I know you mentioned the new entitlements on Valencia. So curious if we should expect to see a ramp in development spending there. And in San Francisco as well, if you can kind of quantify the ramp there now that you're expecting to begin some work there.

Thanks, Alan. Just as it relates to San Francisco, we're in the process of permitting right now, which is requiring a great deal of capital. And we also have permitting that's going to be done at Valencia as well. What I'd suggest you use is for both of those projects, about the same as the capital we spent in the current year, which is about $125 million. So that will be spread between the projects and continue at that pace. We're trying to keep that pace constant as we increase the development in both places.

Got it. That's helpful. And then I think -- I just want to make sure I'm understanding the entitlement approvals that you guys got. You walked through the Valencia one. I think you also have a reference to approvals in Great Park as well. And I wasn't sure, is that additive to the acreage that you guys have previously disclosed as far as what remains saleable in Great Park? Or is that just part of the main...

Alan, Dan here. Can you hear me?

I can. Yes. I can hear you.

Alan says he can hear you.

Alan, can you hear me?

Yes, I can hear you.

Alan, are you there?

Yes. I am.

We're having a little audio problem here. Okay. On your question on -- I think I heard most of your question on Great Park. So Great Park, I think we've been talking about it. We have 100 acres of land that was identified for commercial uses. But we have worked with the city because they were also identified in their RHNA plan. These sites were identified for RHNA units. So we have actually worked with them to convert that commercial to residential uses. So that is -- I think you're asking, that's really additive to anything we had before.

Got it. So it was 100 acres and now you're up to what you said 150 based on this new approval?

I'm sorry, I missed part of that, Alan.

You were at 100 acres and now with this RHNA approval, you're at 150. Is that correct?

No -- I'm sorry, yes. So what that is when -- we have land that we have -- we have existing residential land that we have not transacted on. So we still have additional original entitlement. The 100 are additive to that. And so Kim...

Alan, just to be clear, we have 155 acres left at the Great Park. The 55 was already residential. And that's what was left of the residential that we were working our way through. The 100 was commercial land that has now been redesignated as residential as a result of the entitlements.

There are no further questions at this time. That concludes our question-and-answer session. I would like to turn the floor back over to Dan Hedigan for closing comments.

Well, first, I apologize for that audio problem we're having. So I appreciate everyone's patience. On behalf of our management team, we thank you for joining us on today's call, and we look forward to speaking with you next quarter.

Ladies and gentlemen, that concludes today's conference. Thank you for your participation. Please disconnect your lines and have a wonderful day.