FPH

Five Point Holdings just reported Q3 2026, and the headline is not flattering. The real estate developer swung to a small loss on US$14.6m of revenue, and the stock quickly dropped 6.7% to US$4.20. That looks like an emotional reaction to a single soft quarter in a business built on lumpy California land sales and recurring fees. Coming into today, the shares were already under pressure with the 90 day return down about 19.7%. The fresh loss and margin squeeze now collide with a low 10.4x trailing P/E and a quoted 48% discount to an estimated DCF fair value, setting up a clash between fear and perceived value buyers. Love the quoted 48% discount on Five Point Holdings but worried that losses and lumpy land sales make the ride too bumpy? Compare this setup with our 27 high quality undervalued stocks - Revenue (Q3 2026 vs. Q3 2025): US$14.62m vs. US$13.49m (up about 8%) - Net Income / Loss (Q3 2026 vs. Q3 2025): loss of US$2.58m vs. profit of US$21.05m (swung from profit to loss) - Basic EPS (Q3 2026 vs. Q3 2025): loss of US$0.02 per share vs. profit of US$0.30 per share (moved from positive to negative) - Trailing 12-Month Net Income (Q3 2026 TTM vs. Q3 2025 TTM): US$28.99m vs. US$94.06m (down about 69%) Fee income rose while land sales slowed again. Ask Charlie what Five Point is really betting on with Hearthstone. The upbeat pitch around Five Point Holdings rests on large California projects steadily turning into cash without heavy leakage to costs or financing. "Five Point still owns some very large California land positions. Great Park continues to produce transactions and distributions. Valencia carries more than $1 billion of inventory. Infrastructure work has finally started at Candlestick." Q3 shows parts of this playing out. Great Park distributions and incentive payments reached US$40.4m, and Hearthstone added recurring fees on US$3.4b of assets under management. At the same time, slower lot sales and a quarterly loss highlight how unevenly that land base converts into earnings. The more cautious view argues that long timelines, corporate carry and Candlestick uncertainty can grind down what eventually reaches Five Point investors. "Time also costs money here. Corporate and unallocated SG&A was running at roughly $42 million annualized during the first half, while Five Point earns less on its cash than it pays on the 8% notes. A company can own excellent land and still give shareholders a mediocre return if monetization takes ten or fifteen years." Q3 reinforces that concern. Management pulled back 2026 lot sale expectations, accepted a small quarterly loss and flagged first Candlestick deliveries only in late 2028, so carrying costs and timing risk remain firmly in view. One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all. Five Point Holdings just reminded investors how timing and expectations can swamp a single quarter. The real opportunity is spotting businesses that could be undervalued before renewed attention closes the gap. - Company 1 - 42% below our estimate - expands from trackers into storage, inverters and software so project developers standardize on a single control platform. - Company 2 - 36% below our estimate - converts a swelling pipeline of complex aerospace, healthcare and industrial programs into long-lived manufacturing relationships with tight margin discipline. - Company 3 - 33% below our estimate - sells the GPUs and software stack companies rely on as AI data centres absorb ever more power and rack capacity. That is three of the list. See every one of the 27 undervalued companies on it → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FPH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Release Date: October 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Five Point Holdings LLC (NYSE:FPH) maintained a strong balance sheet with $358.7 million in cash and total liquidity of $576.2 million, providing financial flexibility. - The company has a low debt-to-total capitalization ratio of 16.2% and a net debt-to-total capitalization ratio of just 3.8%, with no material debt maturities until 2030. - Great Park continued to generate significant cash, with distributions and incentive compensation payments totaling $40.4 million during the quarter. - Five Point Holdings LLC (NYSE:FPH) achieved entitlement approvals for over 3,600 home sites at Valencia's Homestead South, expanding its inventory of entitled land. - Hearthstone, the company's asset management platform, generated approximately $6.5 million in management services revenue and oversees $3.4 billion in assets under management, providing recurring fee-based income. - Five Point Holdings LLC (NYSE:FPH) reported a consolidated net loss of $4.4 million for the third quarter due to no significant land sale transactions. - The company decided to defer certain land sales previously anticipated in 2026 due to slowing homebuyer demand and higher mortgage rates, which will delay revenue recognition. - Builders at Great Park sold only 54 homes in the third quarter, down from 56 in the prior quarter, indicating weak absorption. - Five Point Holdings LLC (NYSE:FPH) revised its full-year 2026 guidance to approximately $20 million in net income, reflecting the impact of deferred land sales. - The company faces challenges in the housing market, including inflation concerns, geopolitical uncertainty, and weaker consumer confidence, which may continue to pressure results. - Warning! GuruFocus has detected 3 Warning Signs with FPH. - Is FPH fairly valued? Test your thesis with our free DCF calculator. Q: On the decision to delay lot sales, was it driven by builders' bid pricing coming in below expectations, or by soft home sales and a desire not to flood the projects with more lots? A: CEO Dan Hedigan said it is "actually more about absorptions. It's not about land pricing." The transactions are fully negotiated, but builders say there is no current need for the land given their inventory levels and slowing absorption. Five Point will work with them and push these land sales into 2027. Q: With builders reportedly renegotiating land banking contracts (pushing out takedowns, deferring interest, or cutting lot prices), how does that flow through to Hearthstone as asset manager, and are there ramifications beyond lower management fees? A: CFO Kim Tobler said Hearthstone has dealt with such situations over its 30 years in operation and manages capital on behalf of partners, discussing these situations with its capital partners and concluding what is best overall for the fund. He added that across Hearthstone's national platform there have been no concentrations or material changes in the outlook. Q: What is the updated timeline for cash flow and cash expenses from development, and when might the first sales occur in San Francisco? A: CEO Dan Hedigan expects the first sales in San Francisco in 2028. CFO Kim Tobler added that first sales are planned toward the latter part of 2028, with spend building slowly and larger amounts likely toward the end of 2027 to have things ready for sale in 2028. Q: Should quarterly land spend (roughly $40 million this quarter between Valencia and San Francisco) be expected to moderately increase through 2027 as San Francisco ramps up? A: CFO Kim Tobler said it can, but the company will try to balance spend and not exceed this year's total of about $125 million, aiming to keep next year around that level as spend shifts between Valencia and San Francisco. Development spend will be moderated to align with future revenue opportunities. Q: Regarding the $128.5 million of cash held by the Great Park Venture, does all of it belong to Five Point or only its ownership share? A: CFO Kim Tobler clarified that the cash belongs to the venture, of which Five Point owns 37.5%. Q: Given minor share repurchases and debt reduction, what are the capital allocation plans for the next year or two? A: CFO Kim Tobler said he cannot speak to next year, but the company is monitoring things and believes its shares remain attractive at current levels. It is balancing buybacks against other capital needs, and given the housing market, maintaining financial flexibility is important and the right approach. The buyback authorization remains an important tool to maximize long-term shareholder value. Q: Has any tech or AI company approached Five Point about the Candlestick Point development, and is the 2028 date for land sales rather than residential? A: CEO Dan Hedigan confirmed the 2028 date refers to the initial land delivery, as Five Point is a horizontal developer. On vertical development, the company elected not to go into the market yet, focusing first on getting the project started (hence the September groundbreaking). It is now preparing a comprehensive plan to explore market opportunities, noting San Francisco is an incredibly strong market with many opportunities. Q: What drove the decision to defer certain land sales previously expected to close in the fourth quarter of 2026, and what is the revised guidance? A: CEO Dan Hedigan said slowing homebuyer demand and weaker consumer confidence led Five Point to balance absorption and demand to preserve land value rather than transact in a less favorable market. CFO Kim Tobler said guidance now assumes no more Great Park sales (17.7 acres already sold this year) and about five acres sold at Valencia, versus initial guidance of 20 acres at Valencia and 50 at Great Park. The company now expects a small amount of consolidated net income in Q4 and to end the year with approximately $20 million of consolidated net income and over $300 million of cash. Q: What were the key third-quarter financial results and liquidity metrics? A: CFO Kim Tobler reported consolidated revenue of $14.6 million and a net loss of $4.4 million, with no land sales closed in the quarter. At September 30, cash and cash equivalents were $358.7 million, plus $217.5 million of revolver availability, for total liquidity of $576.2 million, excluding $128.5 million of cash held by the Great Park Venture. Debt to total capitalization was 16.2%, net debt was $91.3 million (3.8% net debt to total capitalization), with no revolver borrowings and no material debt maturities until 2030. Q: What were the significant cash sources and uses during the third quarter? A: CFO Kim Tobler cited a $31.8 million distribution from the Great Park Venture, an $8.6 million incentive compensation payment, $8.9 million of CFD reimbursements at Valencia, and $2.8 million of interest income. Non-operating uses included $38.1 million of development costs at Valencia and San Francisco and $1.6 million of EB-5 principal and interest payments, with $15.1 million remaining outstanding on that obligation. Q: How did the operating communities perform in the third quarter? A: COO Mike Alvarado said builders sold 54 homes at Great Park versus 56 in Q2, and 92 homes at Valencia versus 78 in Q2. Great Park management services generated $7.4 million in revenue in the quarter ($23.4 million year-to-date), and the development management agreement was renewed through December 31, 2028. At Valencia, the Homestead South entitlement (about 752 acres, over 3,600 home sites) was confirmed by the LA County Board of Supervisors, bringing approved subdivision maps to more than 6,600 home sites in Los Angeles County, with a goal of about 10,000. Q: How is Hearthstone performing and what is its strategic role? A: COO Mike Alvarado said Hearthstone generated about $6.5 million in management services revenue in Q3 and oversees approximately $3.4 billion in assets under management ($2.8 billion fee-paying). Year-to For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- Interested in Five Point Holdings, LLC? Here are five stocks we like better. - Five Point reported a $4.4 million third-quarter net loss on roughly $14.6 million in revenue, with recurring management services accounting for most revenue as no land sales closed during the quarter. - The company is deferring several land transactions amid slower builder absorption and higher mortgage rates, now assuming no additional Great Park sales in 2026 and only about five acres of Valencia sales. It expects approximately $20 million of full-year net income. - Five Point ended September with $576.2 million in total liquidity, including $358.7 million in cash and $217.5 million of revolver capacity, while Hearthstone continued generating fee-based revenue and managing approximately $3.4 billion in assets. Five Point (NYSE:FPH) reported a third-quarter consolidated net loss of $4.4 million as it closed no land sales at its active communities and faced softer housing demand tied to higher mortgage rates and weaker consumer confidence. The company said it plans to defer certain land transactions into 2027 rather than accept less favorable market conditions. President and Chief Executive Officer Dan Hedigan said the company generated $14.6 million in consolidated revenue during the quarter, while recurring management activities at the Great Park community and the Hearthstone land-banking platform accounted for most of the reported revenue. Hedigan said Five Point remains focused on protecting the long-term value of its California land portfolio while expanding fee-based income from Hearthstone. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over "Our revised outlook reflects the anticipated timing of land transactions rather than a decision on our part to reduce land pricing to accelerate sales," Hedigan said. Five Point said it will likely defer several land sales previously expected to close in the fourth quarter. During the question-and-answer session, Hedigan said the decision was driven by builders' inventory levels and slower home sales absorption rather than disagreements over land pricing. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? "We've got fully negotiated transactions, but the builders are basically saying there's not a current need for the land," Hedigan said. "So it isn't that we can't come to a price. It's more about how much inventory they have right now and just really the slowing absorption." The company now expects to report a small amount of consolidated net income in the fourth quarter and approximately $20 million of net income for the full year. Its earlier 2026 expectations included sales of 20 acres at Valencia and 50 acres at Great Park. Five Point has sold 17.7 acres at Great Park so far this year and now assumes no additional Great Park sales in 2026, along with a sale of about 5 acres at Valencia. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price At Great Park, home builders sold 54 homes in the third quarter, compared with 56 in the second quarter. At Valencia, builders sold 92 homes, up from 78 in the preceding quarter. Five Point ended September with $358.7 million in cash and cash equivalents and $217.5 million available under its revolving credit facility, for total liquidity of $576.2 million. The figure excludes $128.5 million of cash held by the Great Park Venture, in which Five Point owns a 37.5% interest. The company reported a debt-to-total-capitalization ratio of 16.2% and a net debt-to-total-capitalization ratio of 3.8%. Net debt was $91.3 million, and Five Point had no borrowings under its revolving credit facility. The company said it has no material debt maturities until 2030. During the quarter, Five Point received a $31.8 million distribution from the Great Park Venture and an $8.6 million incentive compensation payment from the venture. It also received $8.9 million in community facilities district reimbursements at Valencia and $2.8 million of interest income. Development costs at Valencia and San Francisco totaled $38.1 million. Chief Financial Officer Kim Tobler said Five Point expects to end 2026 with more than $300 million in cash and cash equivalents. The company plans to align major development spending with near-term revenue opportunities. Tobler said Five Point is seeking to keep total development spending near the approximately $125 million expected for 2026 when planning for next year, while balancing expenditures between Valencia and San Francisco. Management services generated $13.9 million of Five Point's approximately $14.7 million in consolidated revenue during the quarter. Great Park management contributed $7.4 million, including $4 million of incentive compensation, while Hearthstone contributed $6.5 million. Hearthstone, which provides land-banking and residential investment-management services, oversees approximately $3.4 billion in assets under management, including $2.8 billion in fee-paying assets. Tobler said the platform generated $10.6 million in cash flow and $7.8 million in income from operations year to date, in line with expectations. When asked about potential builder requests to renegotiate land-banking arrangements, Tobler said Hearthstone works with its capital partners to determine the appropriate response for each fund. She said the national platform has not seen a material change in its outlook or concentrations of issues. Five Point also renewed its development management agreement for Great Park through Dec. 31, 2028. The company is entitled to incentive compensation equal to 9% of distributions made to Great Park Venture partners. At Valencia, the Los Angeles County Board of Supervisors confirmed approval of the Homestead South project, which encompasses about 752 acres and is planned for more than 3,600 home sites. Five Point now has more than 6,600 home sites in Los Angeles County with approved subdivision maps and is pursuing approvals that could increase that total to roughly 10,000 sites. In San Francisco, Five Point held a September groundbreaking for the next phase of development at Candlestick. The company said it is progressing from planning and entitlements toward grading and installation of infrastructure for future residential, commercial, park and community uses. Hedigan said Five Point expects initial land deliveries in San Francisco in 2028. Tobler said the company expects first sales to occur toward the latter part of 2028, with development spending expected to build gradually before increasing later in 2027 and into 2028. Five Point said it has not yet entered the market to pursue vertical-development opportunities at Candlestick, but is developing a plan to explore opportunities in San Francisco. Five Point Holdings, LLC is a California-based real estate development company focused on creating large, master-planned communities. The company typically acquires and entitles land, develops infrastructure and public amenities, and sells residential and commercial land to homebuilders and other developers rather than constructing most homes itself. Its major developments have included Great Park Neighborhoods in Irvine, California, and Valencia, a master-planned community in the Santa Clarita Valley associated with the Newhall Ranch project. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Five Point Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Third Quarter 2026 Highlights - Great Park Venture distributions and incentive compensation payments to the Company totaled $40.4 million. - Great Park builder sales of 54 homes during the quarter. - Valencia builder sales of 92 homes during the quarter. - Renewed the development management agreement with Great Park Venture through December 31, 2028. - Consolidated revenues of $14.6 million; consolidated net loss of $4.4 million. - Cash and cash equivalents of $358.7 million as of September 30, 2026. - Debt to total capitalization ratio of 16.2% and liquidity of $576.2 million as of September 30, 2026. IRVINE, Calif., October 22, 2026--(BUSINESS WIRE)--Five Point Holdings, LLC ("Five Point" or the "Company") (NYSE:FPH), an owner and developer of large mixed-use planned communities in California, today reported its third quarter 2026 results. Dan Hedigan, President and Chief Executive Officer, said, "During the third quarter, Five Point generated consolidated revenues of $14.6 million and maintained a strong financial position, ending the quarter with $358.7 million of cash and cash equivalents and total liquidity of $576.2 million. Although current housing market conditions have impacted homebuyer demand, we continue to make meaningful progress in advancing our California communities and developing our recurring fee-based revenue streams at Hearthstone and the Great Park. During the quarter, we renewed our Development Management Agreement at the Great Park through December 2028, secured important entitlement approvals at Valencia for our Homestead South development, and marked a significant milestone with a groundbreaking at Candlestick in San Francisco. Given the current housing market environment, we will likely elect to defer certain land sales previously anticipated to close in 2026 rather than transact in a less favorable market. Accordingly, we are revising our full-year 2026 guidance to approximately $20 million in consolidated net income. Importantly, this revised outlook reflects the anticipated timing of land sales rather than a change in our view of the value of our land. Our strong balance sheet provides us with the flexibility to remain patient and disciplined in our approach to monetizing these irreplaceable assets. We remain confident in the long-term value of our California communities, the growth potential of Hearthstone and our ability to create meaningful value for our shareholders." Consolidated Results Liquidity and Capital Resources As of September 30, 2026, total liquidity of $576.2 million was comprised of cash and cash equivalents totaling $358.7 million and borrowing availability of $217.5 million under our unsecured revolving credit facility. Total capital was $2.3 billion, reflecting $3.2 billion in assets and $0.9 billion in liabilities and redeemable noncontrolling interests. Results of Operations for the Three Months Ended September 30, 2026 Revenues. Revenues of $14.6 million for the three months ended September 30, 2026 were primarily generated from management services at our Great Park and Hearthstone segments. Equity in loss from unconsolidated entities. Equity in loss from unconsolidated entities was $2.2 million for the three months ended September 30, 2026. The Great Park Venture generated a net loss of $7.1 million during the three months ended September 30, 2026, and our share of the net loss from our 37.5% percentage interest was $2.7 million. The Great Park Venture made aggregate distributions of $84.9 million to holders of percentage interests during the three months ended September 30, 2026. We received $31.8 million for our 37.5% percentage interest. Selling, general, and administrative. Selling, general, and administrative expenses were $12.5 million for the three months ended September 30, 2026. Net loss. Consolidated net loss for the quarter was $4.4 million. Net loss attributable to noncontrolling interests totaled $1.8 million, resulting in net loss attributable to the Company of $2.6 million. Net loss attributable to noncontrolling interests primarily represents the portion of loss allocated to related party partners and members that hold units of the operating company and the San Francisco Venture. Holders of units of the operating company and the San Francisco Venture can redeem their interests for either, at our election, our Class A common shares on a one-for-one basis or cash. In connection with any redemption or exchange, our ownership of our operating subsidiaries will increase thereby reducing the amount of income or loss allocated to noncontrolling interests in subsequent periods. Conference Call Information In conjunction with this release, Five Point will host a conference call on Thursday, October 22, 2026 at 5:00 p.m. Eastern Time. Interested investors and other parties can listen to a live Internet audio webcast of the conference call that will be available on the Five Point website at ir.fivepoint.com. The conference call can also be accessed by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international). A telephonic replay will be available starting approximately three hours after the end of the call by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 13763397. The telephonic replay will be available until 11:59 p.m. Eastern Time on November 1, 2026. About Five Point Five Point, headquartered in Irvine, California, designs and develops large mixed-use planned communities in Orange County, Los Angeles County, and San Francisco County that combine residential, commercial, retail, educational, and recreational elements with public amenities, including civic areas for parks and open space. Five Point's communities include the Great Park Neighborhoods® in Irvine, Valencia® in Los Angeles County, and Candlestick® and The San Francisco Shipyard® in the City of San Francisco. These communities are designed to include up to approximately 40,000 residential homes and up to approximately 20 million square feet of commercial space. Five Point's Hearthstone platform provides management services to residential land banking funds and oversees approximately $3.4 billion in assets under management. Forward-Looking Statements This press release contains forward-looking statements that are subject to risks and uncertainties. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. When used, the words "anticipate," "believe," "expect," "intend," "may," "might," "plan," "estimate," "project," "should," "will," "would," "result" and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. Forward-looking statements include, among others, statements that refer to: our expectations of our future home sales and/or builder sales; the impact of inflation and interest rates; our future revenues, costs and financial performance, including with respect to cash generation and profitability; future demographics and market conditions, including housing supply levels, in the areas where our communities are located; the timing and expected benefits of our share repurchase program and other planned and potential transactions and acquisitions; and other statements that are not historical in nature. We caution you that any forward-looking statements included in this press release are based on our current views and information currently available to us. Forward-looking statements are subject to risks, trends, uncertainties and factors that are beyond our control. Some of these risks and uncertainties are described in more detail in our filings with the SEC, including our Annual Report on Form 10-K, under the heading "Risk Factors." Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. They are based on estimates and assumptions only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. FIVE POINT HOLDINGS, LLCCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except share and per share amounts)(Unaudited) | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | 2026 | | 2025 | | 2026 | | 2025 REVENUES: | | | | | | | Land sales | $ | — | | | $ | (12 | ) | | $ | (211 | ) | | $ | 70 | Land sales—related party | | — | | | | — | | | | (1,211 | ) | | | — | Management services—related party | | 13,932 | | | | 12,826 | | | | 41,628 | | | | 32,336 | Operating properties | | 683 | | | | 674 | | | | 1,892 | | | | 1,712 | Total revenues | | 14,615 | | | | 13,488 | | | | 42,098 | | | | 34,118 | COSTS AND EXPENSES: | | | | | | | Land sales | | — | | | | — | | | | — | | | | — | Management services | | 5,642 | | | | 5,455 | | | | 18,123 | | | | 10,846 | Operating properties | | 1,512 | | | | 1,631 | | | | 4,697 | | | | 4,891 | Selling, general, and administrative | | 12,537 | | | | 14,294 | | | | 41,580 | | | | 44,645 | Total costs and expenses | | 19,691 | | | | 21,380 | | | | 64,400 | | | | 60,382 | OTHER INCOME: | | | | | | | Interest income | | 2,796 | | | | 4,484 | | | | 8,722 | | | | 13,501 | Loss on debt extinguishment | | — | | | | (1,824 | ) | | | — | | | | (1,824 | ) Miscellaneous | | 69 | | | | 8 | | | | 713 | | | | 804 | Total other income | | 2,865 | | | | 2,668 | | | | 9,435 | | | | 12,481 | EQUITY IN (LOSS) EARNINGS FROM UNCONSOLIDATED ENTITIES | | (2,183 | ) | | | 70,137 | | | | 38,702 | | | | 158,721 | (LOSS) INCOME BEFORE INCOME TAX BENEFIT (PROVISION) | | (4,394 | ) | | | 64,913 | | | | 25,835 | | | | 144,938 | INCOME TAX BENEFIT (PROVISION) | | 4 | | | | (9,199 | ) | | | (5,261 | ) | | | (20,062 | ) NET (LOSS) INCOME | | (4,390 | ) | | | 55,714 | | | | 20,574 | | | | 124,876 | LESS NET (LOSS) INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | | (1,810 | ) | | | 34,643 | | | | 14,520 | | | | 77,201 | NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY | $ | (2,580 | ) | | $ | 21,071 | | | $ | 6,054 | | | $ | 47,675 | | | | | | | | NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE | | | | | | | Basic | $ | (0.04 | ) | | $ | 0.30 | | | $ | 0.08 | | | $ | 0.68 | Diluted | $ | (0.04 | ) | | $ | 0.28 | | | $ | 0.08 | | | $ | 0.65 | WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING | | | | | | | Basic | | 71,783,254 | | | | 69,796,339 | | | | 71,813,460 | | | | 69,692,349 | Diluted | | 71,783,254 | | | | 149,430,920 | | | | 149,180,581 | | | | 149,267,968 | NET (LOSS) INCOME ATTRIBUTABLE TO THE COMPANY PER CLASS B SHARE | | | | | | | Basic and diluted | $ | (0.00 | ) | | $ | 0.00 | | | $ | 0.00 | | | $ | 0.00 | WEIGHTED AVERAGE CLASS B SHARES OUTSTANDING | | | | | | | Basic and diluted | | 76,096,410 | | | | 79,233,544 | | | | 76,096,410 | | | | 79,233,544 | FIVE POINT HOLDINGS, LLCCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except shares)(Unaudited) | | | | September 30, 2026 | | December 31, 2025 ASSETS | | | INVENTORIES | $ | 2,563,106 | | | $ | 2,443,279 | INVESTMENT IN UNCONSOLIDATED ENTITIES | | 89,178 | | | | 153,087 | PROPERTIES AND EQUIPMENT, NET | | 29,140 | | | | 29,264 | INTANGIBLE ASSETS, NET—RELATED PARTY | | 14,562 | | | | 17,250 | GOODWILL | | 69,812 | | | | 69,812 | CASH AND CASH EQUIVALENTS | | 358,716 | | | | 425,546 | RESTRICTED CASH AND CERTIFICATES OF DEPOSIT | | 992 | | | | 992 | RELATED PARTY ASSETS | | 83,762 | | | | 89,509 | OTHER ASSETS | | 18,255 | | | | 20,264 | TOTAL | $ | 3,227,523 | | | $ | 3,249,003 | | | | LIABILITIES AND CAPITAL | | | LIABILITIES: | | | Notes payable, net | $ | 444,399 | | | $ | 443,348 | Accounts payable and other liabilities | | 117,759 | | | | 106,199 | Related party liabilities | | 18,056 | | | | 70,973 | Deferred income tax liability, net | | 63,707 | | | | 58,343 | Payable pursuant to tax receivable agreement | | 181,088 | | | | 181,544 | Total liabilities | | 825,009 | | | | 860,407 | | | | REDEEMABLE NONCONTROLLING INTERESTS | | 69,927 | | | | 70,155 | CAPITAL: | | | Class A common shares; No par value; Issued and outstanding: September 30, 2026—71,920,334 shares; December 31, 2025—71,100,768 shares | | | Class B common shares; No par value; Issued and outstanding: September 30, 2026—76,096,410 shares; December 31, 2025—76,096,410 shares | | | Contributed capital | | 617,116 | | | | 616,751 | Retained earnings | | 234,097 | | | | 228,043 | Accumulated other comprehensive loss | | (1,551 | ) | | | (1,549 | ) Total members' capital | | 849,662 | | | | 843,245 | Noncontrolling interests | | 1,482,925 | | | | 1,475,196 | Total capital | | 2,332,587 | | | | 2,318,441 | TOTAL | $ | 3,227,523 | | | $ | 3,249,003 | FIVE POINT HOLDINGS, LLCSUPPLEMENTAL DATA(In thousands)(Unaudited) Liquidity | | September 30, 2026 Cash and cash equivalents | $ | 358,716 Borrowing capacity(1) | | 217,500 Total liquidity | $ | 576,216 (1) | | As of September 30, 2026, no borrowings or letters of credit were outstanding on the Company's $217.5 million revolving credit facility. Debt to Total Capitalization and Net Debt to Total Capitalization | | September 30, 2026 Debt(1) | $ | 450,000 | Total capital | | 2,332,587 | Total capitalization | $ | 2,782,587 | Debt to total capitalization | | 16.2 | % | Debt(1) | $ | 450,000 | Less: Cash and cash equivalents | | 358,716 | Net debt | | 91,284 | Total capital | | 2,332,587 | Total net capitalization | $ | 2,423,871 | Net debt to total capitalization(2) | | 3.8 | % (1) | | For purposes of this calculation, debt is the amount due on the Company's notes payable before offsetting for capitalized deferred financing costs. (2) | | Net debt to total capitalization is a non-GAAP financial measure defined as net debt (debt less cash and cash equivalents) divided by total net capitalization (net debt plus total capital). The Company believes the ratio of net debt to total capitalization is a relevant and a useful financial measure to investors in understanding the leverage employed in the Company's operations. However, because net debt to total capitalization is not calculated in accordance with GAAP, this financial measure should not be considered in isolation or as an alternative to financial measures prescribed by GAAP. Rather, this non-GAAP financial measure should be used to supplement the Company's GAAP results. Segment Results The following tables reconcile the results of operations of our segments to our consolidated results for the three and nine months ended September 30, 2026 (in thousands): | Three Months Ended September 30, 2026 | Valencia | | San Francisco | | Great Park | | Hearthstone | | Total reportable segments | | Corporate and unallocated | | Total under management | | Removal of unconsolidated entities(1) | | Total consolidated REVENUES: | | | | | | | | | | | | | | | | | Land sales | $ | — | | | $ | — | | | $ | 506 | | | $ | — | | $ | 506 | | | $ | — | | | $ | 506 | | | $ | (506 | ) | | $ | — | Land sales—related party | | — | | | | — | | | | — | | | | — | | | — | | | | — | | | | — | | | | — | | | | — | Management services—related party(2) | | — | | | | — | | | | 7,410 | | | | 6,522 | | | 13,932 | | | | — | | | | 13,932 | | | | — | | | | 13,932 | Operating properties | | 493 | | | | 190 | | | | — | | | | — | | | 683 | | | | — | | | | 683 | | | | — | | | | 683 | Total revenues | | 493 | | | | 190 | | | | 7,916 | | | | 6,522 | | | 15,121 | | | | — | | | | 15,121 | | | | (506 | ) | | | 14,615 | COSTS AND EXPENSES: | | | | | | | | | | | | | | | | | Land sales | | — | | | | — | | | | — | | | | — | | | — | | | | — | | | | — | | | | — | | | | — | Management services(2) | | — | | | | — | | | | 1,618 | | | | 4,024 | | | 5,642 | | | | — | | | | 5,642 | | | | — | | | | 5,642 | Operating properties | | 1,512 | | | | — | | | | — | | | | — | | | 1,512 | | | | — | | | | 1,512 | | | | — | | | | 1,512 | Selling, general, and administrative | | 1,680 | | | | 1,121 | | | | 2,043 | | | | — | | | 4,844 | | | | 9,736 | | | | 14,580 | | | | (2,043 | ) | | | 12,537 | Management fees—related party | | — | | | | — | | | | 7,519 | | | | — | | | 7,519 | | | | — | | | | 7,519 | | | | (7,519 | ) | | | — | Total costs and expenses | | 3,192 | | | | 1,121 | | | | 11,180 | | | | 4,024 | | | 19,517 | | | | 9,736 | | | | 29,253 | | | | (9,562 | ) | | | 19,691 | OTHER INCOME: | | | | | | | | | | | | | | | | | Interest income | | — | | | | — | | | | 1,967 | | | | 33 | | | 2,000 | | | | 2,763 | | | | 4,763 | | | | (1,967 | ) | | | 2,796 | Miscellaneous | | 69 | | | | — | | | | — | | | | — | | | 69 | | | | — | | | | 69 | | | | — | | | | 69 | Total other income | | 69 | | | | — | | | | 1,967 | | | | 33 | | | 2,069 | | | | 2,763 | | | | 4,832 | | | | (1,967 | ) | | | 2,865 | EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES | | 19 | | | | — | | | | — | | | | 456 | | | 475 | | | | — | | | | 475 | | | | (2,658 | ) | | | (2,183 | ) SEGMENT (LOSS) PROFIT/LOSS BEFORE INCOME TAX BENEFIT | | (2,611 | ) | | | (931 | ) | | | (1,297 | ) | | | 2,987 | | | (1,852 | ) | | | (6,973 | ) | | | (8,825 | ) | | | 4,431 | | | | (4,394 | ) INCOME TAX BENEFIT | | — | | | | — | | | | — | | | | — | | | — | | | | 4 | | | | 4 | | | | — | | | | 4 | SEGMENT (LOSS) PROFIT/NET LOSS | $ | (2,611 | ) | | $ | (931 | ) | | $ | (1,297 | ) | | $ | 2,987 | | $ | (1,852 | ) | | $ | (6,969 | ) | | $ | (8,821 | ) | | $ | 4,431 | | | $ | (4,390 | ) (1) | | Represents the removal of the Great Park Venture operating results, which are included in the Great Park segment operating results at 100% of the venture's historical basis but are not included in our consolidated results as we account for our investment in the venture using the equity method of accounting. (2) | | The amounts for the Great Park segment represent the revenues and expenses attributable to the management company for providing services to the Great Park Venture as applicable. | Nine Months Ended September 30, 2026 | Valencia | | San Francisco | | Great Park | | Hearthstone | | Total reportable segments | | Corporate and unallocated | | Total under management | | Removal of unconsolidated entities(1) | | Total consolidated REVENUES: | | | | | | | | | | | | | | | | | Land sales | $ | (211 | ) | | $ | — | | | $ | 165,784 | | $ | — | | $ | 165,573 | | | $ | — | | | $ | 165,573 | | | $ | (165,784 | ) | | $ | (211 | ) Land sales—related party | | (1,211 | ) | | | — | | | | — | | | — | | | (1,211 | ) | | | — | | | | (1,211 | ) | | | — | | | | (1,211 | ) Management services—related party(2) | | — | | | | — | | | | 23,398 | | | 18,230 | | | 41,628 | | | | — | | | | 41,628 | | | | — | | | | 41,628 | Operating properties | | 1,345 | | | | 547 | | | | — | | | — | | | 1,892 | | | | — | | | | 1,892 | | | | — | | | | 1,892 | Total revenues | | (77 | ) | | | 547 | | | | 189,182 | | | 18,230 | | | 207,882 | | | | — | | | | 207,882 | | | | (165,784 | ) | | | 42,098 | COSTS AND EXPENSES: | | | | | | | | | | | | | | | | | Land sales | | — | | | | — | | | | 37,622 | | | — | | | 37,622 | | | | — | | | | 37,622 | | | | (37,622 | ) | | | — | Management services(2) | | — | | | | — | | | | 6,080 | | | 12,043 | | | 18,123 | | | | — | | | | 18,123 | | | | — | | | | 18,123 | Operating properties | | 4,697 | | | | — | | | | — | | | — | | | 4,697 | | | | — | | | | 4,697 | | | | — | | | | 4,697 | Selling, general, and administrative | | 6,532 | | | | 4,108 | | | | 5,605 | | | — | | | 16,245 | | | | 30,940 | | | | 47,185 | | | | (5,605 | ) | | | 41,580 | Management fees—related party | | — | | | | — | | | | 23,665 | | | — | | | 23,665 | | | | — | | | | 23,665 | | | | (23,665 | ) | | | — | Total costs and expenses | | 11,229 | | | | 4,108 | | | | 72,972 | | | 12,043 | | | 100,352 | | | | 30,940 | | | | 131,292 | | | | (66,892 | ) | | | 64,400 | OTHER INCOME: | | | | | | | | | | | | | | | | | Interest income | | — | | | | 2 | | | | 5,456 | | | 66 | | | 5,524 | | | | 8,654 | | | | 14,178 | | | | (5,456 | ) | | | 8,722 | Miscellaneous | | 713 | | | | — | | | | — | | | — | | | 713 | | | | — | | | | 713 | | | | — | | | | 713 | Total other income | | 713 | | | | 2 | | | | 5,456 | | | 66 | | | 6,237 | | | | 8,654 | | | | 14,891 | | | | (5,456 | ) | | | 9,435 | EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES | | 538 | | | | — | | | | — | | | 1,547 | | | 2,085 | | | | 661 | | | | 2,746 | | | | 35,956 | | | | 38,702 | SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION | | (10,055 | ) | | | (3,559 | ) | | | 121,666 | | | 7,800 | | | 115,852 | | | | (21,625 | ) | | | 94,227 | | | | (68,392 | ) | | | 25,835 | INCOME TAX PROVISION | | — | | | | — | | | | — | | | — | | | — | | | | (5,261 | ) | | | (5,261 | ) | | | — | | | | (5,261 | ) SEGMENT (LOSS) PROFIT/NET INCOME | $ | (10,055 | ) | | $ | (3,559 | ) | | $ | 121,666 | | $ | 7,800 | | $ | 115,852 | | | $ | (26,886 | ) | | $ | 88,966 | | | $ | (68,392 | ) | | $ | 20,574 | (1) | | Represents the removal of the Great Park Venture operating results, which are included in the Great Park segment operating results at 100% of the venture's historical basis but are not included in our consolidated results as we account for our investment in the venture using the equity method of accounting. (2) | | The amounts for the Great Park segment represent the revenues and expenses attributable to the management company for providing services to the Great Park Venture as applicable. The table below reconciles the Great Park segment results to the equity in (loss) earnings from our investment in the Great Park Venture that is reflected in the condensed consolidated statements of operations for the three and nine months ended September 30, 2026 (in thousands): | Three Months Ended September 30, 2026 | | Nine Months Ended September 30, 2026 Segment (loss) profit from operations | $ | (1,297 | ) | | $ | 121,666 | Less net income of management company attributed to the Great Park segment | | 5,792 | | | | 17,318 | Net (loss) income of the Great Park Venture | | (7,089 | ) | | | 104,348 | The Company's share of net (loss) income of the Great Park Venture | | (2,658 | ) | | | 39,131 | Basis difference amortization | | — | | | | (3,175 | ) Equity in (loss) earnings from the Great Park Venture | $ | (2,658 | ) | | $ | 35,956 | View source version on businesswire.com: https://www.businesswire.com/news/home/20261022847713/en/ Contacts Investor Relations: Kim Tobler, 949-425-5211 [email protected] or Media: Eric Morgan, 949-349-1088 [email protected]

Download the Complete Report Here Key Takeaways: 3Q FY26 results increasingly reflected ALCO’s post-citrus operating model, with the revenue base now centered on land-management activities. Revenue increased 7.7% y/y to $9.0 million from $8.4 million, as Land Management and Other Operations revenue rose to $7.9 million from $0.6 million, more than offsetting the 85.6% decline in Alico Citrus revenue to $1.1 million from $7.8 million following completion of the final significant citrus harvest. Net income improved to $2.1 million from a loss of $18.3 million y/y, while adjusted EBITDA was $4.6 million and FY26 guidance was raised to approximately $15 million. Beginning in 3Q FY26 (q/e June 30, 2026), ALCO also moved to a single reportable segment following substantial completion of the citrus wind-down, providing a structural marker that the citrus wind-down is substantially complete and the financial reporting increasingly reflects execution of the land-focused model. A key strategic development is ALCO’s new agricultural lease covering approximately 3,280 acres in Hendry County. The lease commenced July 1, 2026, and initially runs through June 30, 2027, with the lessee holding the right to extend it for an additional ten years. More importantly, the agreement includes an option to acquire approximately 3,280 acres for $29.52 million, or $9,000 per acre, if exercised by June 30, 2029, subject to annual escalation and certain acreage adjustments; an extended lease would push the option period through June 2031. Rather than choosing between leasing and selling the asset today, ALCO can therefore generate agricultural income while preserving exposure to future land-value realization. Recent transaction pricing continues to support upside to our agricultural land assumptions. The new purchase option is initially priced at approximately $9,000 per acre, while ALCO sold 3,546 acres during the first nine months of FY26 for $34.6 million, or approximately $9,761 per acre. Both sit materially above the $4,000-$5,000-per-acre assumptions used in the agricultural component of our valuation framework. The broad consistency between recent realized pricing and the new option value provides further evidence that these assumptions leave meaningful room for upside as additional acreage is monetized. While values will vary by location, infrastructure and development potential, the latest transaction evidence supports upside to conservative portfolio assumptions. Corkscrew Grove East Village has moved beyond the local entitlement milestone achieved in April and into the state and federal permitting phase, progressively reducing the regulatory discount embedded in ALCO’s largest development asset. Corkscrew Grove Villages encompasses approximately 4,660 acres and is planned as two master-planned villages supporting roughly 9,000 homes, including approximately 750 affordable units, and approximately 480,000 square feet of commercial uses. More than 6,000 surrounding acres are expected to enter permanent conservation. Following Collier County approval, the remaining process includes permits from the South Florida Water Management District, U.S. Army Corps of Engineers and U.S. Fish and Wildlife Service, with construction potentially beginning in 2028 or 2029 if approvals are obtained. The Citree acquisition increases ALCO’s control over future land monetization by consolidating full ownership of approximately 1,200 acres in DeSoto County. ALCO acquired the remaining 49% interest in Citree for $2.0 million in cash and assumed sole responsibility for approximately $3.3 million of debt that was already reflected on ALCO’s consolidated balance sheet, eliminating the minority interest and giving the company sole discretion over future leasing, sale or other land-use decisions. Following the Citree transaction and recent land sales, ALCO’s owned portfolio stands at approximately 47,300 acres. Full ownership also allows ALCO to retain a greater share of any future value creation from the property, subject to contingent consideration tied to a sale above $12,000 per acre within 24 months. We view the transaction as a strategic step toward simplifying the portfolio and increasing control over monetization timing. The post-citrus cost structure continues to normalize, improving the durability of the underlying operating model. G&A declined 21.2% y/y in 3Q to $2.3 million, driven by lower employee expenses and insurance premiums, while management continues to review overhead following the citrus wind-down. A new office lease is expected to generate additional savings beginning in 2Q FY27. As the remaining legacy citrus costs roll off, ALCO should operate against a lower and more predictable expense base while new lease and land-management revenues build. Adjusted EBITDA remained positive in 3Q FY26, while the raised full-year outlook highlights the timing variability of ALCO’s transformed earnings model. Adjusted EBITDA was $4.6 million in 3Q FY26 versus $19.3 million in the prior-year quarter, with the y/y decline primarily reflecting lower crop-insurance proceeds and a lower gain on property sales. For the first nine months of FY26, adjusted EBITDA totaled $24.2 million versus $25.3 million a year ago. Despite 9M results already exceeding the full-year outlook, ALCO raised FY26 adjusted EBITDA guidance to approximately $15 million from $14 million, with 4Q expected to be an EBITDA usage quarter as revenue steps down materially while recurring property taxes and G&A continue. Stronger liquidity extends ALCO’s operating runway through FY29 without requiring additional asset sales. Cash increased to $55.6 million at June 30 from $38.1 million at FY25-end, while total debt remained essentially unchanged at approximately $85.4 million and net debt declined to $29.8 million from $47.4 million. Working capital reached $50.6 million with a 7.96x current ratio, compared with $49.2 million and 9.56x at September 2025, while ALCO had approximately $92.5 million of available borrowings under its line of credit against a minimum liquidity requirement of $5.8 million. The company now expects to end FY26 with approximately $48 million of cash and $37 million of net debt, improved from prior guidance of $40 million and $45 million, respectively, while maintaining only the minimum required $2.5 million balance on its revolving credit facility. This liquidity gives ALCO greater flexibility to advance development projects on its own timeline rather than relying on near-term asset sales. Inventory also declined to $0.2 million from $4.2 million at FY25-end, while assets held for sale declined from $9.2 million to zero, further reflecting the runoff of the legacy citrus balance-sheet footprint. Land monetization continued to fund the transformation while supporting capital returns and a stronger cash position. Nine-month operating cash flow was $2.3 million versus $22.8 million last year, with the $20.5 million decline largely attributable to significantly higher crop-insurance proceeds received in FY25. Investing cash flow contributed $28.2 million, driven by $35.0 million of property-sale proceeds and partially offset by the $5.1 million Corkscrew advance, while financing outflows totaled $13.1 million, principally reflecting $10.0 million of share repurchases and the $2.0 million Citree acquisition. The company repurchased 245,399 shares, including 38,059 shares in 3Q, and paid approximately $1.1 million of dividends through 9M FY26, returning more than $11 million to shareholders while still increasing cash by $17.5 million since fiscal year-end. Shares outstanding declined to approximately 7.42 million, leaving the company with greater flexibility to balance shareholder returns, entitlement investment and future land monetization. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. While we do not publish a formal price target for ALCO, our analysis suggests potential upside from current levels. In light of ALCO’s transition to a land-management-focused business model, we apply a sum-of-the-parts framework combining discounted cash flow analysis for near-term development with risk-adjusted asset values for longer-dated development and agricultural land. Any implied upside reflects the output of this framework and should not be interpreted as a formal price target. We value ALCO using a sum-of-the-parts (SOTP) framework that reflects the company’s evolution into a diversified land platform with distinct asset components and risk profiles. Our approach separates value across near-term development projects with defined execution visibility, longer-dated development optionality embedded in the broader land base, and the long-duration value of agricultural land and royalty streams. Near-term development is valued using a conservative discounted cash flow methodology, while longer-dated development and agricultural land value are incorporated on a risk-adjusted basis to reflect timing, liquidity, and execution uncertainty. We believe this framework more appropriately captures ALCO’s underlying asset value than a single consolidated DCF, while maintaining disciplined underwriting and a clear linkage between upside and execution. Illustrative Valuation. Combining our base-case DCF with risk-adjusted contributions from longer-dated development and agricultural land value, and adjusting for net debt, supports an implied equity value modestly above the current share price. We therefore arrive at an illustrative valuation of approximately $50 per share. Importantly, this upside is driven primarily by execution and entitlement progress rather than discount-rate compression or multiple expansion. As regulatory milestones are achieved and development visibility improves, we see scope for incremental value recognition over time. Recent land transactions continue to support potential upside to ALCO’s underlying land valuation. ALCO’s remaining portfolio comprises approximately 47,300 acres, while recent transaction evidence continues to support values materially above the $4,000-$5,000 per acre agricultural assumptions embedded in our conservative NPV framework. The new 3,280-acre purchase option is initially priced at approximately $9,000 per acre, broadly consistent with recent agricultural land-sale values, while ALCO sold 3,546 acres during the first nine months of FY26 for approximately $34.6 million, or roughly $9,761 per acre. While values vary materially by location, infrastructure and development potential, recent realized and contractual pricing provides additional support for upside to the agricultural component of our SOTP. Read Exec Edge’s Initiation on Alico Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Alico 3Q Revenue Jumps on Booming Land Management Strategy – Quarterly Update Report appeared first on ExecEdge.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is pivoting the company from a pure-play California land developer to a diversified entity with a national residential asset management platform via the Hearthstone Venture. The strategic shift aims to create a business model with lower capital intensity and more recurring, predictable fee-based income to reduce dependency on the timing of lumpy land sales. Second quarter performance was anchored by a high-value $159.3 million commercial land sale at Great Park, achieving approximately $9 million per acre for a senior living development. Despite 'choppy and complicated' market conditions, management reports continued support for land values due to the extreme scarcity of entitled land in Southern California. The company maintains a strong balance sheet with a 16.2% debt-to-capital ratio, providing the flexibility to structure builder transactions that optimize land value through market cycles. Operational focus remains on advancing infrastructure at Valencia and San Francisco to ensure the company can respond efficiently as housing demand strengthens. Management reaffirmed its consolidated net income guidance of approximately $100 million for the full year, despite evolving market uncertainty. Remaining land sales for the fiscal year are currently expected to occur in the fourth quarter, though interest rates and affordability factors could impact specific timing. The company is preparing to initiate grading at the Candlestick project in San Francisco during the third quarter, targeting demand from the AI and technology sectors. Future growth at Valencia is supported by a pipeline that, upon approval of three additional villages, would bring the total to more than 10,000 entitled homesites. Capital allocation will continue to balance share repurchases against investments in the Hearthstone platform and legacy community development. The Great Park Venture closed a significant 17.7-acre sale for a senior living community, marking a strategic expansion into age-targeted product segments. Management noted that while home absorption has moderated from prior periods, builder engagement remains steady across active communities. The company successfully converted approximately 100 acres of commercial land into residential land at Great Park, which will be monetized in future periods. San Francisco operations are benefiting from a shift toward more business-friendly political leadership and a recovery in commercial leasing activity. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management acknowledged that while builders are not selling as fast as they were 12 months ago, they remain engaged due to the unique nature of entitled land. The company is willing to use creative transaction structures to help builders move forward without compromising on base land values. Management stated they are not seeing builders walk away from deals or request changes in terms within the Hearthstone portfolio. The stability is attributed to disciplined underwriting and the specific nature of the land banking transactions Hearthstone engages in. The company is actively exploring data center opportunities, particularly in Los Angeles, given the high demand for AI infrastructure. Management noted these projects are difficult to execute and take significant time, but their expertise in large-scale infrastructure makes them a capable partner.

This article first appeared on GuruFocus. Net Income: $29.9 million for the second quarter. Land Sale Revenue: $159.3 million from the sale of 17.7 acres of commercial land. Gross Margin on Land Sale: 76.5% from the Great Park Venture land sale. Management Services Revenue: $14.7 million, including $9.1 million from Great Park Venture management. Incentive Compensation: $5.8 million from Great Park and $5.6 million from Hearthstone. SG&A Expenses: $14.3 million, down from $15.6 million in the prior year. Cash and Cash Equivalents: $348.4 million at the end of the quarter. Total Liquidity: $565.9 million, including $217.5 million available on a revolving credit facility. Debt-to-Capital Ratio: 16.2% at the end of the quarter. Equity in Earnings from Unconsolidated Entities: $41 million, with $39.7 million from Great Park Venture. Home Sales at Great Park: 56 homes sold in the second quarter. Home Sales at Valencia: 78 homes sold in the second quarter. Assets Under Management (Hearthstone): $3.4 billion, with fee-paying assets at $2.8 billion. Warning! GuruFocus has detected 4 Warning Signs with FPH. Is FPH fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Five Point Holdings LLC (NYSE:FPH) generated a net income of $29.9 million for the second quarter, largely driven by a significant land sale at Great Park Ventures. The company ended the quarter with a strong liquidity position of $565.9 million, including $348.4 million in cash and cash equivalents. FPH's investment in the Hearthstone venture is expanding its capabilities beyond land development into land banking and asset management, providing multiple avenues for value creation. The company has a low debt-to-capital ratio of 16.2%, offering considerable financial flexibility. FPH's strategic focus on recurring revenue and lower capital intensity through Hearthstone is expected to make the business more diversified and predictable over time. Home sales in the Great Park and Valencia communities have moderated, with fewer homes sold in the second quarter compared to the first quarter. Market conditions remain uncertain, with potential impacts from interest rates and affordability factors affecting the timing of land sales. The company is cautious about pushing land sales due to slower home sales and is focused on optimizing land value, which may delay transactions. FPH's share repurchase activity is limited as the company balances buybacks against other capital allocation opportunities. The execution of data center projects is challenging due to regulatory and infrastructure complexities, making it uncertain if this opportunity will be pursued. Q: Are you sensing more cautiousness on the builder side, or are you planning for the next phase based on what you're seeing on the home sale front? A: Dan Hedigan, President and CEO, explained that while home sales are being closely monitored, there is still significant interest in their properties due to their unique entitlement in the market. Builders are still engaged, and the company is focused on optimizing land value rather than compromising on it. They are prepared to have conversations with builders to help structure deals that optimize land value. Q: What are you seeing on the builder side with your partners at Hearthstone regarding land banking? Are there any increases in walkaways or requests for changes in pricing or terms? A: Kim Tobler, CFO, stated that Hearthstone is still seeing good flow from builders, and there are no significant requests for changes in terms or pricing. This stability is attributed to Hearthstone's strong underwriting and the nature of their transactions. Q: Have you had any conversations related to selling land for data centers, and is that being contemplated across any of your assets? A: Mike Alvarado, COO, mentioned that while data centers are a topic of conversation, especially in Los Angeles, they are challenging to implement due to municipal regulations. However, the company is exploring this opportunity given the growing demand and their expertise in infrastructure delivery. Q: Can you provide more details on the timing of land sales in Great Park and Valencia? A: Dan Hedigan noted that while there is no immediate need to push sales, they are balancing the optimization of land value with builder engagement. Sales are expected to occur in the fourth quarter, but market conditions and interest rates could affect the timing. Q: How does the current housing market affect your share repurchase strategy? A: Kim Tobler explained that while they view their shares as attractive, they are balancing buybacks with other capital allocation opportunities, such as growing the Hearthstone platform and investing in legacy communities. Maintaining financial flexibility is deemed the right approach given the current market conditions. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Five Point Holdings, LLC? Here are five stocks we like better. Five Point posted Q2 2026 net income of $29.9 million, boosted by a $159.3 million commercial land sale at its Great Park Venture. The sale drove strong equity earnings and highlighted the value embedded in its master-planned communities. The company kept its full-year 2026 guidance at about $100 million in consolidated net income despite “choppy” market conditions. Management said land sales are still expected to close, with most remaining activity likely in the fourth quarter. Development continues across Five Point’s key projects, including Candlestick in San Francisco, Great Park, and Valencia. The company also ended the quarter with $565.9 million in total liquidity and said Hearthstone’s $3.4 billion in assets under management remained steady. Five Point (NYSE:FPH) reported second-quarter 2026 net income of $29.9 million, supported by a major commercial land sale at its Great Park Venture and continued contributions from its management services and asset management platforms. President and Chief Executive Officer Dan Hedigan said the company continued to make progress on its strategy to unlock value from its California master-planned communities while expanding into businesses designed to produce more recurring and predictable earnings. He pointed to Five Point’s investment in the Hearthstone Venture as a key part of that shift, describing it as an expansion beyond land development into land banking and asset management. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? “Together, these businesses provide multiple avenues for creating value and position us to participate more broadly in the home building ecosystem,” Hedigan said. The quarter’s results were driven in large part by the Great Park Venture’s sale of 17.7 acres of commercial land planned for a senior living retirement community. The land sold for $159.3 million, representing $9 million per acre, according to Hedigan. He said the transaction highlighted the value embedded in Five Point’s master-planned communities and the potential to add uses that complement the company’s traditional residential and commercial development. → 3 Photonics Companies Making Quantum Tech Possible Chief Financial Officer Kim Tobler said Five Point recognized $41 million of equity in earnings from unconsolidated entities during the quarter, including $39.7 million from the Great Park Venture. The Great Park Venture generated net income of $114.2 million, largely attributable to the land sale, which carried a 76.5% gross margin. Five Point also received $79.6 million in distributions and incentive compensation payments from its joint ventures during the quarter. Those included a $33.1 million distribution from the Gateway Venture, a $34.4 million distribution from the Great Park Venture, a $9.3 million incentive compensation payment from the Great Park Venture and $2.8 million from the Valencia land bank venture and other co-investments in Hearthstone-managed funds. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Hedigan said market conditions remain “somewhat choppy and complicated,” but that Five Point continues to see support for land values at its active communities. He said entitled land remains scarce in Southern California, and builders remain engaged at both Great Park and Valencia. The company maintained its prior guidance for approximately $100 million in consolidated net income for the year. Hedigan said Five Point currently believes its land sales will occur as expected, although timing could be affected by interest rates and affordability factors. He said the company expects remaining land sales activity for the year to occur in the fourth quarter. Hedigan said Five Point is not willing to compromise on land value but may work with builders on deal structures to help optimize land values through market cycles. “Builders are still selling in our communities, not as fast as they might have been 12 months ago,” he said during the question-and-answer portion of the call. Chief Operating Officer and Chief Legal Officer Mike Alvarado said builders sold 56 homes at the Great Park Neighborhoods during the second quarter, down from 82 homes in the first quarter. The community currently has 14 actively selling programs, with five additional programs expected to open later this year. Alvarado said Five Point has builders in various stages of due diligence and contracts for five new residential programs at Great Park totaling approximately 28.5 acres. He noted that some of those home sites are on land acquired from the city as part of a land exchange transaction that allowed the company to convert approximately 100 acres from commercial land into residential land. At Valencia, builders sold 78 homes during the second quarter, compared with 90 homes in the first quarter. The community has 12 builder programs open and actively selling, with five new programs expected to open during the remainder of the year. Alvarado said Five Point is finalizing documentation for residential land sales in 2026, though market conditions could affect timing. Since starting home site sales at Valencia in 2019, Five Point has sold more than 3,000 home sites, Alvarado said. He added that recently secured entitlement approvals for Entrada South and Valencia Commerce Center “significantly enhance” the long-term value and development potential of the community. Five Point is also pursuing regulatory approvals for three additional villages, which, together with existing entitlements, would bring its total to more than 10,000 entitled home sites. Alvarado said Five Point continues to advance the next phase of development at Candlestick in San Francisco. The company recorded subdivision maps for the next phase in June and is preparing to begin grading activities in the third quarter. Approvals received in 2024 and 2025 allow the project to include up to approximately 2.8 million square feet of research and development and technology-oriented office space, approximately 7,200 homes and approximately 550,000 square feet of retail, hotel, entertainment and other community uses. Alvarado said Five Point believes the timing for Candlestick is favorable due to factors including demand tied to artificial intelligence and technology activity, renewed focus from San Francisco political leadership on economic recovery and housing production, improving commercial leasing activity and strengthening residential fundamentals. He said Five Point controls “the only project of this scale” offering a potential campus location within San Francisco and within commuting distance of Silicon Valley. Five Point ended the quarter with $348.4 million in cash and cash equivalents and $217.5 million of availability under its revolving credit facility, for total liquidity of $565.9 million. Tobler said this figure does not include $229.6 million of cash held by the Great Park Venture as of June 30. The company’s total debt-to-capitalization ratio was 16.2%, and net debt was $101.6 million, with nothing drawn on the revolving credit facility. Significant uses of cash during the quarter included $18.6 million for the semiannual interest payment on senior notes, $32.2 million for development costs at Valencia and San Francisco, $2.2 million for EB-5 principal and interest payments and $3.1 million to repurchase approximately 623,000 Class A shares. Tobler said Five Point continues to view its shares as attractive but is balancing buybacks against other capital allocation priorities, including growing Hearthstone and investing in its legacy communities. Hearthstone’s assets under management and fee-paying assets under management remained unchanged at $3.4 billion and $2.8 billion, respectively. In response to a question about whether builders are walking away from land bank deals or seeking changes in terms, Tobler said Hearthstone is still seeing “good flow” from builders and is generally not seeing requests for changes. Asked about potential demand for land for data centers, Alvarado said Five Point has commercial business park uses in each of its three communities and is evaluating the opportunity. However, he said such projects are not easy to execute and it is “a little too early to say definitively” whether Five Point will pursue them. Five Point Holdings, L.P. (NYSE:FPH) is a California‐based master planned community developer specializing in residential, commercial and mixed‐use projects. Headquartered in Walnut Creek, the company focuses on acquiring and entitling raw land, designing infrastructure and delivering fully integrated neighborhoods that include single‐family homes, multifamily housing, retail centers, office space and community amenities. Since its formation in 2014, Five Point has concentrated its land development efforts in the San Francisco Bay Area and the Los Angeles Basin, targeting key growth corridors with large‐scale, long-term projects. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Five Point Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Second Quarter 2026 Highlights Great Park Venture sold 17.7 acres of commercial land planned for senior living uses for a purchase price of $159.3 million. Great Park Venture distributions and incentive compensation payments to the Company totaled $43.6 million. Gateway Commercial Venture distribution to the Company of $33.1 million. Great Park builder sales of 56 homes during the quarter. Valencia builder sales of 78 homes during the quarter. Consolidated revenues of $13.9 million; consolidated net income of $29.9 million. Cash and cash equivalents of $348.4 million as of June 30, 2026. Debt to total capitalization ratio of 16.2% and liquidity of $565.9 million as of June 30, 2026. IRVINE, Calif., July 23, 2026--(BUSINESS WIRE)--Five Point Holdings, LLC ("Five Point" or the "Company") (NYSE:FPH), an owner and developer of large mixed-use planned communities in California, today reported its second quarter 2026 results. Dan Hedigan, President and Chief Executive Officer, said, "I am pleased to report that Five Point generated consolidated net income of $29.9 million in the second quarter and ended the quarter with total liquidity of $565.9 million, including $348.4 million of cash and cash equivalents. During the quarter, the Great Park Venture completed the sale of 17.7 acres planned for a senior living retirement community for $159.3 million, further demonstrating the substantial value embedded in our California communities. We also received $79.6 million in distributions and incentive compensation payments from our joint ventures, while continuing to grow our recurring management and investment income through our Hearthstone Venture and the Great Park Venture. These results reflect the progress we are making toward a more diversified and capital-efficient business model. Although housing market conditions remain uncertain, the scarcity of entitled land in our markets continues to support the long-term value of our communities. We remain actively engaged with builders regarding additional homesite sales, and we expect that our remaining land sales activity will occur during the fourth quarter, subject to market conditions. At this time, we are not updating or altering our prior guidance of approximately $100 million in consolidated net income for 2026." Consolidated Results Liquidity and Capital Resources As of June 30, 2026, total liquidity of $565.9 million was comprised of cash and cash equivalents totaling $348.4 million and borrowing availability of $217.5 million under our unsecured revolving credit facility. Total capital was $2.3 billion, reflecting $3.2 billion in assets and $0.9 billion in liabilities and redeemable noncontrolling interests. Results of Operations for the Three Months Ended June 30, 2026 Revenues. Revenues of $13.9 million for the three months ended June 30, 2026 were primarily generated from management services at our Great Park and Hearthstone segments. Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $41.0 million for the three months ended June 30, 2026. The Great Park Venture generated net income of $114.2 million during the three months ended June 30, 2026, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $39.7 million. During the three months ended June 30, 2026, the Great Park Venture sold 17.7 acres of commercial land planned for senior living uses at the Great Park Neighborhoods for a purchase price of $159.3 million. The Great Park Venture made aggregate distributions of $91.6 million to holders of percentage interests during the three months ended June 30, 2026. We received $34.4 million for our 37.5% percentage interest. Selling, general, and administrative. Selling, general, and administrative expenses were $14.3 million for the three months ended June 30, 2026. Net income. Consolidated net income for the quarter was $29.9 million. Net income attributable to noncontrolling interests totaled $19.1 million, resulting in net income attributable to the Company of $10.9 million. Net income attributable to noncontrolling interests primarily represents the portion of income allocated to related party partners and members that hold units of the operating company and the San Francisco Venture. Holders of units of the operating company and the San Francisco Venture can redeem their interests for either, at our election, our Class A common shares on a one-for-one basis or cash. In connection with any redemption or exchange, our ownership of our operating subsidiaries will increase thereby reducing the amount of income or loss allocated to noncontrolling interests in subsequent periods. Conference Call Information In conjunction with this release, Five Point will host a conference call on Thursday, July 23, 2026 at 5:00 p.m. Eastern Time. Interested investors and other parties can listen to a live Internet audio webcast of the conference call that will be available on the Five Point website at ir.fivepoint.com. The conference call can also be accessed by dialing (877) 451-6152 (domestic) or (201) 389-0879 (international). A telephonic replay will be available starting approximately three hours after the end of the call by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 13761889. The telephonic replay will be available until 11:59 p.m. Eastern Time on August 2, 2026. About Five Point Five Point, headquartered in Irvine, California, designs and develops large mixed-use planned communities in Orange County, Los Angeles County, and San Francisco County that combine residential, commercial, retail, educational, and recreational elements with public amenities, including civic areas for parks and open space. Five Point’s communities include the Great Park Neighborhoods® in Irvine, Valencia® in Los Angeles County, and Candlestick® and The San Francisco Shipyard® in the City of San Francisco. These communities are designed to include up to approximately 40,000 residential homes and up to approximately 20 million square feet of commercial space. Five Point’s Hearthstone platform provides management services to residential land banking funds and oversees approximately $3.4 billion in assets under management. Forward-Looking Statements This press release contains forward-looking statements that are subject to risks and uncertainties. These statements concern expectations, beliefs, projections, plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. When used, the words "anticipate," "believe," "expect," "intend," "may," "might," "plan," "estimate," "project," "should," "will," "would," "result" and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. Forward-looking statements include, among others, statements that refer to: our expectations of our future home sales and/or builder sales; the impact of inflation and interest rates; our future revenues, costs and financial performance, including with respect to cash generation and profitability; future demographics and market conditions, including housing supply levels, in the areas where our communities are located; the timing and expected benefits of our share repurchase program and other planned and potential transactions and acquisitions; and other statements that are not historical in nature. We caution you that any forward-looking statements included in this press release are based on our current views and information currently available to us. Forward-looking statements are subject to risks, trends, uncertainties and factors that are beyond our control. Some of these risks and uncertainties are described in more detail in our filings with the SEC, including our Annual Report on Form 10-K, under the heading "Risk Factors." Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We caution you therefore against relying on any of these forward-looking statements. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. They are based on estimates and assumptions only as of the date hereof. We undertake no obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes, except as required by applicable law. Segment Results The following tables reconcile the results of operations of our segments to our consolidated results for the three and six months ended June 30, 2026 (in thousands): The table below reconciles the Great Park segment results to the equity in earnings from our investment in the Great Park Venture that is reflected in the condensed consolidated statements of operations for the three and six months ended June 30, 2026 (in thousands): View source version on businesswire.com: https://www.businesswire.com/news/home/20260723800423/en/ Contacts Investor Relations:Kim Tobler, [email protected] or Media:Eric Morgan, [email protected]