FPH Five Point Holdings LLC

Second Quarter 2024 Highlights

• Great Park Venture sold 105 homesites on 12.3 acres of land for an aggregate purchase price of $96.1 million.
• Great Park Venture distributions and incentive compensation payments to the Company totaled $29.7 million.
• Great Park builder sales of 63 homes during the quarter.
• Valencia builder sales of 84 homes during the quarter.
• Consolidated revenues of $51.2 million; consolidated net income of $38.2 million.
• Cash and cash equivalents of $217.4 million as of June 30, 2024.
• Debt to total capitalization ratio of 20.6% and liquidity of $342.4 million as of June 30, 2024.

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 2024 results.

Dan Hedigan, Chief Executive Officer, said, “We had another strong quarter, with consolidated net income of $38.2 million on revenues of $51.2 million, ending with total cash and cash equivalents of $217.4 million. Although the inflation and interest rate environment remained challenging during the quarter, we continued to see meaningful appreciation in our residential land sale pricing, especially in our Great Park Neighborhoods community where we closed a sale during the quarter at a price of $7.8 million per acre and are seeing current pricing for new land sales move even higher. As we plan for the future of Five Point, our team is focused on perfecting our entitlements at our Valencia and San Francisco communities and continuing to execute on our key priorities: generating revenue, controlling our SG&A, and managing our capital spend. For the second half of 2024, we expect demand in our chronically undersupplied housing markets to remain strong and to drive a strong finish to the year. While we expect a relatively soft third quarter, we expect to close land sales in the fourth quarter in both of our active communities and to end the year with consolidated annual net income of over $100 million and cash and cash equivalents in excess of $300 million.”

Consolidated Results

Liquidity and Capital Resources

As of June 30, 2024, total liquidity of $342.4 million was comprised of cash and cash equivalents totaling $217.4 million and borrowing availability of $125.0 million under our unsecured revolving credit facility. Total capital was $2.0 billion, reflecting $2.9 billion in assets and $0.9 billion in liabilities and redeemable noncontrolling interests.

Results of Operations for the Three Months Ended June 30, 2024

Revenues. Revenues of $51.2 million for the three months ended June 30, 2024 were primarily generated from management services.

Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $15.5 million for the three months ended June 30, 2024. The Great Park Venture generated net income of $44.9 million during the three months ended June 30, 2024, and our share of the net income from our 37.5% percentage interest, adjusted for basis differences, was $15.5 million. Additionally, we recognized $0.2 million in earnings from our 10% interest in the Valencia Landbank Venture, offset by $0.2 million in loss from our 75% interest in the Gateway Commercial Venture.

During the three months ended June 30, 2024, the Great Park Venture sold 105 homesites on 12.3 acres of land at the Great Park Neighborhoods for an aggregate purchase price of $96.1 million. After completing the land sale, the Great Park Venture made aggregate distributions of $7.3 million to holders of Legacy Interests and $62.5 million to holders of Percentage Interests. We received $23.4 million for our 37.5% Percentage Interest.

Selling, general, and administrative. Selling, general, and administrative expenses were $12.2 million for the three months ended June 30, 2024.

Net income. Consolidated net income for the quarter was $38.2 million. Net income attributable to noncontrolling interests totaled $23.5 million, resulting in net income attributable to the Company of $14.7 million. Net income attributable to noncontrolling interests 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 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 18, 2024 at 5:00 p.m. Eastern Time. Dan Hedigan, Chief Executive Officer, and Kim Tobler, Chief Financial Officer, will host the call. 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 13747738. The telephonic replay will be available until 11:59 p.m. Eastern Time on July 27, 2024.

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 23 million square feet of commercial space.

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; and future demographics and market conditions, including housing supply levels, in the areas where our communities are located. 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, LLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share amounts)

(Unaudited)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

REVENUES:

 

 

 

 

 

 

 

Land sales

$

307

 

 

$

16

 

 

$

842

 

 

$

(9

)

Land sales—related party

 

3

 

 

 

(29

)

 

 

—

 

 

 

595

 

Management services—related party

 

50,279

 

 

 

20,774

 

 

 

59,005

 

 

 

25,010

 

Operating properties

 

603

 

 

 

588

 

 

 

1,280

 

 

 

1,454

 

Total revenues

 

51,192

 

 

 

21,349

 

 

 

61,127

 

 

 

27,050

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

Land sales

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Management services

 

11,315

 

 

 

9,682

 

 

 

15,211

 

 

 

12,048

 

Operating properties

 

1,878

 

 

 

1,798

 

 

 

2,868

 

 

 

2,970

 

Selling, general, and administrative

 

12,186

 

 

 

12,710

 

 

 

25,102

 

 

 

26,462

 

Total costs and expenses

 

25,379

 

 

 

24,190

 

 

 

43,181

 

 

 

41,480

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

Interest income

 

2,755

 

 

 

1,293

 

 

 

5,980

 

 

 

2,129

 

Miscellaneous

 

26

 

 

 

(20

)

 

 

(5,881

)

 

 

(41

)

Total other income

 

2,781

 

 

 

1,273

 

 

 

99

 

 

 

2,088

 

EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES

 

15,498

 

 

 

52,128

 

 

 

33,084

 

 

 

53,176

 

INCOME BEFORE INCOME TAX PROVISION

 

44,092

 

 

 

50,560

 

 

 

51,129

 

 

 

40,834

 

INCOME TAX PROVISION

 

(5,865

)

 

 

(5

)

 

 

(6,819

)

 

 

(13

)

NET INCOME

 

38,227

 

 

 

50,555

 

 

 

44,310

 

 

 

40,821

 

LESS NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

23,505

 

 

 

26,984

 

 

 

27,262

 

 

 

21,786

 

NET INCOME ATTRIBUTABLE TO THE COMPANY

$

14,722

 

 

$

23,571

 

 

$

17,048

 

 

$

19,035

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO THE COMPANY PER CLASS A SHARE

 

 

 

 

 

 

 

Basic

$

0.21

 

 

$

0.34

 

 

$

0.25

 

 

$

0.28

 

Diluted

$

0.21

 

 

$

0.34

 

 

$

0.24

 

 

$

0.27

 

WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING

 

 

 

 

 

 

 

Basic

 

69,239,296

 

 

 

68,811,975

 

 

 

69,148,940

 

 

 

68,758,894

 

Diluted

 

145,936,206

 

 

 

145,040,689

 

 

 

145,906,521

 

 

 

144,939,450

 

NET 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

 

79,233,544

 

 

 

79,233,544

 

 

 

79,233,544

 

 

 

79,233,544

 

FIVE POINT HOLDINGS, LLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except shares)

(Unaudited)

 

 

June 30, 2024

 

December 31, 2023

ASSETS

 

 

 

INVENTORIES

$

2,292,264

 

 

$

2,213,479

 

INVESTMENT IN UNCONSOLIDATED ENTITIES

 

237,777

 

 

 

252,816

 

PROPERTIES AND EQUIPMENT, NET

 

29,359

 

 

 

29,145

 

INTANGIBLE ASSET, NET—RELATED PARTY

 

13,728

 

 

 

25,270

 

CASH AND CASH EQUIVALENTS

 

217,387

 

 

 

353,801

 

RESTRICTED CASH AND CERTIFICATES OF DEPOSIT

 

992

 

 

 

992

 

RELATED PARTY ASSETS

 

120,551

 

 

 

83,970

 

OTHER ASSETS

 

8,081

 

 

 

9,815

 

TOTAL

$

2,920,139

 

 

$

2,969,288

 

 

 

 

 

LIABILITIES AND CAPITAL

 

 

 

LIABILITIES:

 

 

 

Notes payable, net

$

524,104

 

 

$

622,186

 

Accounts payable and other liabilities

 

83,267

 

 

 

81,649

 

Related party liabilities

 

74,173

 

 

 

78,074

 

Deferred income tax liability, net

 

12,917

 

 

 

7,067

 

Payable pursuant to tax receivable agreement

 

173,351

 

 

 

173,208

 

Total liabilities

 

867,812

 

 

 

962,184

 

 

 

 

 

REDEEMABLE NONCONTROLLING INTEREST

 

25,000

 

 

 

25,000

 

CAPITAL:

 

 

 

Class A common shares; No par value; Issued and outstanding: June 30, 2024—69,358,504 shares; December 31, 2023—69,199,938 shares

 

 

 

Class B common shares; No par value; Issued and outstanding: June 30, 2024—79,233,544 shares; December 31, 2023—79,233,544 shares

 

 

 

Contributed capital

 

593,211

 

 

 

591,606

 

Retained earnings

 

105,828

 

 

 

88,780

 

Accumulated other comprehensive loss

 

(2,321

)

 

 

(2,332

)

Total members’ capital

 

696,718

 

 

 

678,054

 

Noncontrolling interests

 

1,330,609

 

 

 

1,304,050

 

Total capital

 

2,027,327

 

 

 

1,982,104

 

TOTAL

$

2,920,139

 

 

$

2,969,288

 

FIVE POINT HOLDINGS, LLC

SUPPLEMENTAL DATA

(In thousands)

(Unaudited)

 

Liquidity

 

June 30, 2024

Cash and cash equivalents

$

217,387

Borrowing capacity(1)

 

125,000

 

Total liquidity

$

342,387

 

(1)

As of June 30, 2024, no borrowings or letters of credit were outstanding on the Company’s $125.0 million revolving credit facility.

Debt to Total Capitalization and Net Debt to Total Capitalization

 

June 30, 2024

Debt(1)

$

524,994

 

Total capital

 

2,027,327

 

Total capitalization

$

2,552,321

 

Debt to total capitalization

 

20.6

%

 

 

Debt(1)

$

524,994

 

Less: Cash and cash equivalents

 

217,387

 

Net debt

 

307,607

 

Total capital

 

2,027,327

 

Total net capitalization

$

2,334,934

 

Net debt to total capitalization(2)

 

13.2

%

(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 six months ended June 30, 2024 (in thousands):

 

Three Months Ended June 30, 2024

 

Valencia

 

San Francisco

 

Great Park

 

Commercial

 

Total reportable segments

 

Corporate and unallocated

 

Total under management

 

Removal of unconsolidated entities(1)

 

Total consolidated

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land sales

$

307

 

 

$

—

 

 

$

134,638

 

$

—

 

 

$

134,945

 

 

$

—

 

 

$

134,945

 

 

$

(134,638

)

 

$

307

 

Land sales—related party

 

3

 

 

 

—

 

 

 

4,734

 

 

—

 

 

 

4,737

 

 

 

—

 

 

 

4,737

 

 

 

(4,734

)

 

 

3

 

Management services—related party(2)

 

—

 

 

 

—

 

 

 

50,151

 

 

128

 

 

 

50,279

 

 

 

—

 

 

 

50,279

 

 

 

—

 

 

 

50,279

 

Operating properties

 

435

 

 

 

168

 

 

 

—

 

 

2,224

 

 

 

2,827

 

 

 

—

 

 

 

2,827

 

 

 

(2,224

)

 

 

603

 

Total revenues

 

745

 

 

 

168

 

 

 

189,523

 

 

2,352

 

 

 

192,788

 

 

 

—

 

 

 

192,788

 

 

 

(141,596

)

 

 

51,192

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land sales

 

—

 

 

 

—

 

 

 

29,016

 

 

—

 

 

 

29,016

 

 

 

—

 

 

 

29,016

 

 

 

(29,016

)

 

 

—

 

Management services(2)

 

—

 

 

 

—

 

 

 

11,315

 

 

—

 

 

 

11,315

 

 

 

—

 

 

 

11,315

 

 

 

—

 

 

 

11,315

 

Operating properties

 

1,878

 

 

 

—

 

 

 

—

 

 

864

 

 

 

2,742

 

 

 

—

 

 

 

2,742

 

 

 

(864

)

 

 

1,878

 

Selling, general, and administrative

 

2,515

 

 

 

1,294

 

 

 

2,625

 

 

1,019

 

 

 

7,453

 

 

 

8,377

 

 

 

15,830

 

 

 

(3,644

)

 

 

12,186

 

Management fees—related party

 

—

 

 

 

—

 

 

 

64,470

 

 

—

 

 

 

64,470

 

 

 

—

 

 

 

64,470

 

 

 

(64,470

)

 

 

—

 

Total costs and expenses

 

4,393

 

 

 

1,294

 

 

 

107,426

 

 

1,883

 

 

 

114,996

 

 

 

8,377

 

 

 

123,373

 

 

 

(97,994

)

 

 

25,379

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

—

 

 

 

17

 

 

 

1,671

 

 

59

 

 

 

1,747

 

 

 

2,738

 

 

 

4,485

 

 

 

(1,730

)

 

 

2,755

 

Interest expense

 

—

 

 

 

—

 

 

 

—

 

 

(690

)

 

 

(690

)

 

 

—

 

 

 

(690

)

 

 

690

 

 

 

—

 

Miscellaneous

 

23

 

 

 

—

 

 

 

—

 

 

—

 

 

 

23

 

 

 

3

 

 

 

26

 

 

 

—

 

 

 

26

 

Total other income (expense)

 

23

 

 

 

17

 

 

 

1,671

 

 

(631

)

 

 

1,080

 

 

 

2,741

 

 

 

3,821

 

 

 

(1,040

)

 

 

2,781

 

EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES

 

243

 

 

 

—

 

 

 

—

 

 

—

 

 

 

243

 

 

 

—

 

 

 

243

 

 

 

15,255

 

 

 

15,498

 

SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION

 

(3,382

)

 

 

(1,109

)

 

 

83,768

 

 

(162

)

 

 

79,115

 

 

 

(5,636

)

 

 

73,479

 

 

 

(29,387

)

 

 

44,092

 

INCOME TAX PROVISION

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

(5,865

)

 

 

(5,865

)

 

 

—

 

 

 

(5,865

)

SEGMENT (LOSS) PROFIT/NET INCOME

$

(3,382

)

 

$

(1,109

)

 

$

83,768

 

$

(162

)

 

$

79,115

 

 

$

(11,501

)

 

$

67,614

 

 

$

(29,387

)

 

$

38,227

 

(1)

Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investment in each venture using the equity method of accounting.

(2)

For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable.

 

Six Months Ended June 30, 2024

 

Valencia

 

San Francisco

 

Great Park

 

Commercial

 

Total reportable segments

 

Corporate and unallocated

 

Total under management

 

Removal of unconsolidated entities(1)

 

Total consolidated

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land sales

$

842

 

 

$

—

 

 

$

215,456

 

$

—

 

 

$

216,298

 

 

$

—

 

 

$

216,298

 

 

$

(215,456

)

 

$

842

 

Land sales—related party

 

—

 

 

 

—

 

 

 

16,625

 

 

—

 

 

 

16,625

 

 

 

—

 

 

 

16,625

 

 

 

(16,625

)

 

 

—

 

Management services—related party(2)

 

—

 

 

 

—

 

 

 

58,764

 

 

241

 

 

 

59,005

 

 

 

—

 

 

 

59,005

 

 

 

—

 

 

 

59,005

 

Operating properties

 

944

 

 

 

336

 

 

 

—

 

 

4,773

 

 

 

6,053

 

 

 

—

 

 

 

6,053

 

 

 

(4,773

)

 

 

1,280

 

Total revenues

 

1,786

 

 

 

336

 

 

 

290,845

 

 

5,014

 

 

 

297,981

 

 

 

—

 

 

 

297,981

 

 

 

(236,854

)

 

 

61,127

 

COSTS AND EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land sales

 

—

 

 

 

—

 

 

 

58,974

 

 

—

 

 

 

58,974

 

 

 

—

 

 

 

58,974

 

 

 

(58,974

)

 

 

—

 

Management services(2)

 

—

 

 

 

—

 

 

 

15,211

 

 

—

 

 

 

15,211

 

 

 

—

 

 

 

15,211

 

 

 

—

 

 

 

15,211

 

Operating properties

 

2,868

 

 

 

—

 

 

 

—

 

 

1,840

 

 

 

4,708

 

 

 

—

 

 

 

4,708

 

 

 

(1,840

)

 

 

2,868

 

Selling, general, and administrative

 

5,709

 

 

 

2,429

 

 

 

5,564

 

 

2,048

 

 

 

15,750

 

 

 

16,964

 

 

 

32,714

 

 

 

(7,612

)

 

 

25,102

 

Management fees—related party

 

—

 

 

 

—

 

 

 

72,632

 

 

—

 

 

 

72,632

 

 

 

—

 

 

 

72,632

 

 

 

(72,632

)

 

 

—

 

Total costs and expenses

 

8,577

 

 

 

2,429

 

 

 

152,381

 

 

3,888

 

 

 

167,275

 

 

 

16,964

 

 

 

184,239

 

 

 

(141,058

)

 

 

43,181

 

OTHER INCOME (EXPENSE):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

—

 

 

 

32

 

 

 

3,150

 

 

93

 

 

 

3,275

 

 

 

5,948

 

 

 

9,223

 

 

 

(3,243

)

 

 

5,980

 

Interest expense

 

—

 

 

 

—

 

 

 

—

 

 

(1,384

)

 

 

(1,384

)

 

 

—

 

 

 

(1,384

)

 

 

1,384

 

 

 

—

 

Miscellaneous

 

47

 

 

 

—

 

 

 

—

 

 

—

 

 

 

47

 

 

 

(5,928

)

 

 

(5,881

)

 

 

—

 

 

 

(5,881

)

Total other income (expense)

 

47

 

 

 

32

 

 

 

3,150

 

 

(1,291

)

 

 

1,938

 

 

 

20

 

 

 

1,958

 

 

 

(1,859

)

 

 

99

 

EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES

 

259

 

 

 

—

 

 

 

—

 

 

—

 

 

 

259

 

 

 

—

 

 

 

259

 

 

 

32,825

 

 

 

33,084

 

SEGMENT (LOSS) PROFIT/INCOME BEFORE INCOME TAX PROVISION

 

(6,485

)

 

 

(2,061

)

 

 

141,614

 

 

(165

)

 

 

132,903

 

 

 

(16,944

)

 

 

115,959

 

 

 

(64,830

)

 

 

51,129

 

INCOME TAX PROVISION

 

—

 

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

(6,819

)

 

 

(6,819

)

 

 

—

 

 

 

(6,819

)

SEGMENT (LOSS) PROFIT/NET INCOME

$

(6,485

)

 

$

(2,061

)

 

$

141,614

 

$

(165

)

 

$

132,903

 

 

$

(23,763

)

 

$

109,140

 

 

$

(64,830

)

 

$

44,310

 

(1)

Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment and Commercial segment operating results at 100% of each venture’s historical basis, respectively, but are not included in our consolidated results as we account for our investments in each venture using the equity method of accounting.

(2)

For the Great Park and Commercial segments, represents the revenues and expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable.

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, 2024 (in thousands):

 

Three Months Ended

June 30, 2024

 

Six Months Ended

June 30, 2024

Segment profit from operations

$

83,768

 

 

$

141,614

 

Less net income of management company attributed to the Great Park segment

 

38,836

 

 

 

43,553

 

Net income of the Great Park Venture

 

44,932

 

 

 

98,061

 

The Company’s share of net income of the Great Park Venture

 

16,850

 

 

 

36,773

 

Basis difference amortization, net

 

(1,377

)

 

 

(3,643

)

Equity in earnings from the Great Park Venture

$

15,473

 

 

$

33,130

 

The table below reconciles the Commercial segment results to the equity in loss from our investment in the Gateway Commercial Venture that is reflected in the condensed consolidated statements of operations for the three and six months ended June 30, 2024 (in thousands):

 

Three Months Ended

June 30, 2024

 

Six Months Ended

June 30, 2024

Segment loss from operations

$

(162

)

 

$

(165

)

Less net income of management company attributed to the Commercial segment

 

128

 

 

 

241

 

Net loss of the Gateway Commercial Venture

 

(290

)

 

 

(406

)

Equity in loss from the Gateway Commercial Venture

$

(218

)

 

$

(305

)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240718932678/en/

Investor Relations: Kim Tobler, 949-425-5211 Kim.Tobler@fivepoint.com

or

Media: Eric Morgan, 949-349-1088 Eric.Morgan@fivepoint.com