Business Wire | Aug 5, 2021 04:18PM EDT

Five Point Holdings, LLC Reports Second Quarter 2021 Results

Aug. 05, 2021

IRVINE, Calif.--(BUSINESS WIRE)--Aug. 05, 2021--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 2021 results. Emile Haddad, Chairman and CEO, said, "We are pleased to report our results for the second quarter. The housing market continued its robust trajectory with strong demand against a limited supply of homesites in our markets. Following the sale of 774 homesites in the second quarter, the Great Park Venture made distributions, incentive compensation payments and participation payments totaling $295 million during the quarter, of which Five Point received $98.3 million. This is an important milestone for the Company since the priority distributions to the holders of the legacy interests have been satisfied. This latest distribution represents the commencement of distributions on Five Point's 37.5% percentage interest in the Great Park Venture. In Valencia, ten of our first eighteen neighborhoods are open for sale and we are looking forward to welcoming our first homeowners to the community this fall."

Second Quarter 2021 Consolidated Results

Liquidity and Capital Resources

As of June 30, 2021, total liquidity of $361.2 million was comprised of cash and cash equivalents totaling $236.5 million and borrowing availability of $124.7 million under our $125.0 million unsecured revolving credit facility. Total capital was $1.9 billion, reflecting $2.9 billion in assets and $1.1 billion in liabilities and redeemable noncontrolling interests.

Results of Operations for the Three Months Ended June 30, 2021

Revenues. Revenues of $8.3 million for the three months ended June 30, 2021 were primarily generated from management services.

Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $12.1 million for the three months ended June 30, 2021, comprised of $11.9 million in earnings from our 37.5% percentage interest in the Great Park Venture and earnings of $0.1 million from our 75% interest in the Gateway Commercial Venture.

During the three months ended June 30, 2021, the Great Park Venture sold 774 homesites on approximately 58 acres of land at the Great Park Neighborhoods for a base price of $328.2 million in addition to recognizing $7.6 million in variable marketing fees expected to be received when homes are sold to homebuyers. After completing the land sales, the Great Park Venture made aggregate distributions to its members of $255.3 million, of which we received $77.6 million for our 37.5% percentage interest and an indirect legacy percentage interest we held. With these distributions, the Great Park Venture has fully satisfied the $476.0 million priority legacy distribution rights and reduced the remaining maximum participating legacy distribution rights to $82.7 million. The remaining $82.7 million legacy interest will be paid on a pro rata basis, with approximately 10% of future distributions paid to the holders of legacy interests and approximately 90% of such distributions paid to the holders of the percentage interests, until such time as the remaining balance has been fully paid.

Selling, general, and administrative. Selling, general, and administrative expenses were $19.2 million for the three months ended June 30, 2021.

Net loss. Consolidated net loss for the quarter was $4.9 million. Net loss attributable to noncontrolling interests totaled $2.6 million, resulting in net loss attributable to the Company of $2.3 million. Net loss attributable to noncontrolling interests 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 our Class A common shares on a one-for-one basis or, at our election, cash. In connection with any redemption or exchange, our ownership of our operating subsidiaries will increase and reduce the amount of income allocated to noncontrolling interests.

Conference Call Information

In conjunction with this release, Five Point will host a conference call on Thursday, August 5, 2021 at 5:00 p.m. Eastern Time. Emile Haddad, President and Chief Executive Officer, and Erik Higgins, Vice President and 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 (866) 269-5604 (domestic) or (929) 477-0593 (international). A telephonic replay will be available starting approximately two 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 7892761. The telephonic replay will be available until 11:59 p.m. Eastern Time on August 19, 2021.

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(r) in Irvine, Valencia(r) (formerly known as Newhall Ranch(r)) in Los Angeles County, and Candlestick(r) and The San Francisco Shipyard(r) in the City of San Francisco. These communities are designed to include approximately 40,000 residential homes and 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. This press release may contain forward-looking statements regarding: our expectations of our future revenues, costs and financial performance; future demographics and market conditions in the areas where our communities are located; the outcome of pending litigation and its effect on our operations; the timing of our development activities; and the timing of future real estate purchases or sales. 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 Six Months Ended June 30, June 30,

2021 2020 2021 2020

REVENUES:

Land sales $ 65 $ 17,028 $ 87 $ 17,034

Landsales-related 37 2 56 12 party

Managementservices-related 7,647 6,314 20,086 14,558 party

Operating 555 963 1,255 1,923 properties

Total revenues 8,304 24,307 21,484 33,527

COSTS AND EXPENSES:

Land sales - 11,861 - 11,861

Management 5,848 4,416 16,625 10,467 services

Operating 1,418 1,699 3,003 3,644 properties

Selling,general, and 19,218 16,312 38,756 40,938 administrative

Total costs and 26,484 34,288 58,384 66,910 expenses

OTHER INCOME:

Interest income 26 226 53 1,232

Miscellaneous 1,113 88 2,317 176

Total other 1,139 314 2,370 1,408 income

EQUITY INEARNINGS (LOSS)FROM 12,119 23,905 8,563 (7,006 ) UNCONSOLIDATEDENTITIES

(LOSS) INCOMEBEFORE INCOME (4,922 ) 14,238 (25,967 ) (38,981 ) TAX (PROVISION)BENEFIT

INCOME TAX(PROVISION) (5 ) - (5 ) - BENEFIT

NET (LOSS) (4,927 ) 14,238 (25,972 ) (38,981 ) INCOME

LESS NET (LOSS)INCOMEATTRIBUTABLE TO (2,638 ) 7,606 (13,904 ) (20,807 ) NONCONTROLLINGINTERESTS

NET (LOSS)INCOME $ (2,289 ) $ 6,632 $ (12,068 ) $ (18,174 ) ATTRIBUTABLE TOTHE COMPANY



NET (LOSS)INCOMEATTRIBUTABLE TO THE COMPANY PERCLASS A SHARE

Basic $ (0.03 ) $ 0.10 $ (0.18 ) $ (0.27 )

Diluted $ (0.03 ) $ 0.10 $ (0.18 ) $ (0.27 )

WEIGHTED AVERAGECLASS A SHARES OUTSTANDING

Basic 67,410,440 66,731,233 67,349,986 66,690,550

Diluted 67,410,440 142,851,412 67,349,986 68,854,356

NET (LOSS)INCOMEATTRIBUTABLE TO THE COMPANY PERCLASS B SHARE

Basic and $ (0.00 ) $ 0.00 $ (0.00 ) $ (0.00 ) diluted

WEIGHTED AVERAGECLASS B SHARES OUTSTANDING

Basic and 79,233,544 79,233,544 79,233,544 79,233,544 diluted

FIVE POINT HOLDINGS, LLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except shares)

(Unaudited)

June 30, 2021

December 31, 2020

ASSETS

INVENTORIES

$

2,103,805

$

1,990,859

INVESTMENT IN UNCONSOLIDATED ENTITIES

374,296

442,850

PROPERTIES AND EQUIPMENT, NET

32,111

32,769

INTANGIBLE ASSET, NET-RELATED PARTY

61,189

71,747

CASH AND CASH EQUIVALENTS

236,517

298,144

RESTRICTED CASH AND CERTIFICATES OF DEPOSIT

1,330

1,330

RELATED PARTY ASSETS

90,540

103,681

OTHER ASSETS

18,808

20,605

TOTAL

$

2,918,596

$

2,961,985

LIABILITIES AND CAPITAL

LIABILITIES:

Notes payable, net

$

618,349

$

617,581

Accounts payable and other liabilities

137,002

135,331

Related party liabilities

96,028

113,149

Deferred income tax liability, net

12,578

12,578

Payable pursuant to tax receivable agreement

172,726

173,248

Total liabilities

1,036,683

1,051,887

REDEEMABLE NONCONTROLLING INTEREST

25,000

25,000

CAPITAL:

Class A common shares; No par value; Issued and outstanding: June 30, 2021-68,758,347 shares; December 31, 2020-69,051,284 shares

Class B common shares; No par value; Issued and outstanding: June 30, 2021-79,233,544 shares; December 31, 2020-79,233,544 shares

Contributed capital

577,949

578,278

Retained earnings

30,153

42,221

Accumulated other comprehensive loss

(2,793

)

(2,833

)

Total members' capital

605,309

617,666

Noncontrolling interests

1,251,604

1,267,432

Total capital

1,856,913

1,885,098

TOTAL

$

2,918,596

$

2,961,985

FIVE POINT HOLDINGS, LLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except shares)

(Unaudited)

June 30, 2021 December 31, 2020

ASSETS

INVENTORIES $ 2,103,805 $ 1,990,859

INVESTMENT IN UNCONSOLIDATED ENTITIES 374,296 442,850

PROPERTIES AND EQUIPMENT, NET 32,111 32,769

INTANGIBLE ASSET, NET-RELATED PARTY 61,189 71,747

CASH AND CASH EQUIVALENTS 236,517 298,144

RESTRICTED CASH AND CERTIFICATES OF DEPOSIT 1,330 1,330

RELATED PARTY ASSETS 90,540 103,681

OTHER ASSETS 18,808 20,605

TOTAL $ 2,918,596 $ 2,961,985



LIABILITIES AND CAPITAL

LIABILITIES:

Notes payable, net $ 618,349 $ 617,581

Accounts payable and other liabilities 137,002 135,331

Related party liabilities 96,028 113,149

Deferred income tax liability, net 12,578 12,578

Payable pursuant to tax receivable agreement 172,726 173,248

Total liabilities 1,036,683 1,051,887



REDEEMABLE NONCONTROLLING INTEREST 25,000 25,000

CAPITAL:

Class A common shares; No par value; Issuedand outstanding: June 30, 2021-68,758,347 shares; December 31, 2020-69,051,284 shares

Class B common shares; No par value; Issuedand outstanding: June 30, 2021-79,233,544 shares; December 31, 2020-79,233,544 shares

Contributed capital 577,949 578,278

Retained earnings 30,153 42,221

Accumulated other comprehensive loss (2,793 ) (2,833 )

Total members' capital 605,309 617,666

Noncontrolling interests 1,251,604 1,267,432

Total capital 1,856,913 1,885,098

TOTAL $ 2,918,596 $ 2,961,985

FIVE POINT HOLDINGS, LLC

SUPPLEMENTAL DATA

(In thousands)

(Unaudited)

Liquidity

June 30, 2021

Cash and cash equivalents

$

236,517

Borrowing capacity (1)

124,651

Total liquidity

$

361,168

FIVE POINT HOLDINGS, LLC

SUPPLEMENTAL DATA

(In thousands)

(Unaudited)

Liquidity

June 30, 2021

Cash and cash equivalents $ 236,517

Borrowing capacity (1) 124,651

Total liquidity $ 361,168

(1)

As of June 30, 2021, no amounts were drawn on the Company's $125.0 million revolving credit facility; however, letters of credit of approximately $0.3 million were issued and outstanding under the revolving credit facility, thus reducing the available capacity by the outstanding letters of credit amount.

As of June 30, 2021, no amounts were drawn on the Company's $125.0 million(1) revolving credit facility; however, letters of credit of approximately $0.3 million were issued and outstanding under the revolving credit facility, thus reducing the available capacity by the outstanding letters of credit amount.

Debt to Total Capitalization and Net Debt to Total Capitalization

June 30, 2021

Debt (1)

$

625,000

Total capital

1,856,913

Total capitalization

$

2,481,913

Debt to total capitalization

25.2

%Debt (1)

$

625,000

Less: Cash and cash equivalents

236,517

Net debt

388,483

Total capital

1,856,913

Total net capitalization

$

2,245,396

Net debt to total capitalization (2)

17.3

%

Debt to Total Capitalization and Net Debt to Total Capitalization

June 30, 2021

Debt (1) $ 625,000

Total capital 1,856,913

Total capitalization $ 2,481,913

Debt to total capitalization 25.2 %



Debt (1) $ 625,000

Less: Cash and cash equivalents 236,517

Net debt 388,483

Total capital 1,856,913

Total net capitalization $ 2,245,396

Net debt to total capitalization (2) 17.3 %

(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.

(1) For purposes of this calculation, debt is the amount due on the Company's notes payable before offsetting for capitalized deferred financing costs.

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(2) 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 ourconsolidated results for the three and six months ended June 30, 2021 (inthousands):

Three Months Ended June 30, 2021

San Total Corporate and Total under Removal of Total Valencia Francisco Great Park Commercial reportable unallocated management unconsolidated consolidated segments entities^(1)

REVENUES:

Land sales $ 65 $ - $ 278,726 $ - $ 278,791 $ - $ 278,791 $ (278,726 ) $ 65

Land sales-related 37 - 58,140 - 58,177 - 58,177 (58,140 ) 37 party

Managementservices-related - - 7,544 103 7,647 - 7,647 - 7,647 party^(2)

Operating properties 414 141 - 2,148 2,703 - 2,703 (2,148 ) 555

Total revenues 516 141 344,410 2,251 347,318 - 347,318 (339,014 ) 8,304

COSTS AND EXPENSES:

Land sales - - 251,420 - 251,420 - 251,420 (251,420 ) -

Management services^ - - 5,848 - 5,848 - 5,848 - 5,848 (2)

Operating properties 1,418 - - 510 1,928 - 1,928 (510 ) 1,418

Selling, general, and 5,483 937 8,636 1,158 16,214 12,798 29,012 (9,794 ) 19,218 administrative

Management - - 6,382 - 6,382 - 6,382 (6,382 ) - fees-related party

Total costs and 6,901 937 272,286 1,668 281,792 12,798 294,590 (268,106 ) 26,484 expenses

OTHER INCOME (EXPENSE):

Interest income - - 91 - 91 26 117 (91 ) 26

Interest expense - - - (307 ) (307 ) - (307 ) 307 -

Miscellaneous 135 - - - 135 978 1,113 - 1,113

Total other income 135 - 91 (307 ) (81 ) 1,004 923 216 1,139 (expense)

EQUITY IN EARNINGS(LOSS) FROM 121 - (1,409 ) - (1,288 ) - (1,288 ) 13,407 12,119 UNCONSOLIDATEDENTITIES

SEGMENT (LOSS) PROFIT/LOSS BEFORE INCOME (6,129 ) (796 ) 70,806 276 64,157 (11,794 ) 52,363 (57,285 ) (4,922 ) TAX PROVISION

INCOME TAX PROVISION - - - - - (5 ) (5 ) - (5 )

SEGMENT (LOSS) PROFIT $ (6,129 ) $ (796 ) $ 70,806 $ 276 $ 64,157 $ (11,799 ) $ 52,358 $ (57,285 ) $ (4,927 ) /NET LOSS

(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.

Represents the removal of the Great Park Venture and Gateway Commercial(1) 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, 2021

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

$

87

$

-

$

279,467

$

-

$

279,554

$

-

$

279,554

$

(279,467

)

$

87

Land sales-related party

56

-

58,359

-

58,415

-

58,415

(58,359

)

56

Management services-related party(2)

-

-

19,884

202

20,086

-

20,086

-

20,086

Operating properties

965

290

-

4,249

5,504

-

5,504

(4,249

)

1,255

Total revenues

1,108

290

357,710

4,451

363,559

-

363,559

(342,075

)

21,484

COSTS AND EXPENSES:

Land sales

-

-

251,420

-

251,420

-

251,420

(251,420

)

-

Management services(2)

-

-

16,625

-

16,625

-

16,625

-

16,625

Operating properties

3,003

-

-

669

3,672

-

3,672

(669

)

3,003

Selling, general, and administrative

9,523

2,062

16,204

2,317

30,106

27,171

57,277

(18,521

)

38,756

Management fees-related party

-

-

12,500

-

12,500

-

12,500

(12,500

)

-

Total costs and expenses

12,526

2,062

296,749

2,986

314,323

27,171

341,494

(283,110

)

58,384

OTHER INCOME (EXPENSE):

Interest income

-

-

333

-

333

53

386

(333

)

53

Interest expense

-

-

-

(610

)

(610

)

-

(610

)

610

-

Miscellaneous

269

1,070

-

-

1,339

978

2,317

-

2,317

Total other income (expense)

269

1,070

333

(610

)

1,062

1,031

2,093

277

2,370

EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES

121

-

(1,409

)

-

(1,288

)

-

(1,288

)

9,851

8,563

SEGMENT (LOSS) PROFIT/LOSS BEFORE INCOME TAX PROVISION

(11,028

)

(702

)

59,885

855

49,010

(26,140

)

22,870

(48,837

)

(25,967

)

INCOME TAX PROVISION

-

-

-

-

-

(5

)

(5

)

-

(5

)

SEGMENT (LOSS) PROFIT/NET LOSS

$

(11,028

)

$

(702

)

$

59,885

$

855

$

49,010

$

(26,145

)

$

22,865

$

(48,837

)

$

(25,972

)

Six Months Ended June 30, 2021

San Total Corporate and Total under Removal of Total Valencia Francisco Great Park Commercial reportable unallocated management unconsolidated consolidated segments entities^(1)

REVENUES:

Land sales $ 87 $ - $ 279,467 $ - $ 279,554 $ - $ 279,554 $ (279,467 ) $ 87

Land sales-related 56 - 58,359 - 58,415 - 58,415 (58,359 ) 56 party

Managementservices-related party - - 19,884 202 20,086 - 20,086 - 20,086 ^(2)

Operating properties 965 290 - 4,249 5,504 - 5,504 (4,249 ) 1,255

Total revenues 1,108 290 357,710 4,451 363,559 - 363,559 (342,075 ) 21,484

COSTS AND EXPENSES:

Land sales - - 251,420 - 251,420 - 251,420 (251,420 ) -

Management services^ - - 16,625 - 16,625 - 16,625 - 16,625 (2)

Operating properties 3,003 - - 669 3,672 - 3,672 (669 ) 3,003

Selling, general, and 9,523 2,062 16,204 2,317 30,106 27,171 57,277 (18,521 ) 38,756 administrative

Management - - 12,500 - 12,500 - 12,500 (12,500 ) - fees-related party

Total costs and 12,526 2,062 296,749 2,986 314,323 27,171 341,494 (283,110 ) 58,384 expenses

OTHER INCOME (EXPENSE):

Interest income - - 333 - 333 53 386 (333 ) 53

Interest expense - - - (610 ) (610 ) - (610 ) 610 -

Miscellaneous 269 1,070 - - 1,339 978 2,317 - 2,317

Total other income 269 1,070 333 (610 ) 1,062 1,031 2,093 277 2,370 (expense)

EQUITY IN EARNINGS(LOSS) FROM 121 - (1,409 ) - (1,288 ) - (1,288 ) 9,851 8,563 UNCONSOLIDATEDENTITIES

SEGMENT (LOSS) PROFIT/LOSS BEFORE INCOME TAX (11,028 ) (702 ) 59,885 855 49,010 (26,140 ) 22,870 (48,837 ) (25,967 ) PROVISION

INCOME TAX PROVISION - - - - - (5 ) (5 ) - (5 )

SEGMENT (LOSS) PROFIT/ $ (11,028 ) $ (702 ) $ 59,885 $ 855 $ 49,010 $ (26,145 ) $ 22,865 $ (48,837 ) $ (25,972 ) NET LOSS

(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 statement of operations for the three and six months ended June 30, 2021 (in thousands):

Represents the removal of the Great Park Venture and Gateway Commercial(1) 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 statement of operations for the three and six months ended June 30, 2021 (in thousands):

Three Months Six Months Ended Ended June 30, 2021 June 30, 2021

Segment profit from operations $ 70,806 $ 59,885

Less net income of management company attributed 1,696 3,259 to the Great Park segment

Net income of the Great Park Venture 69,110 56,626

The Company's share of net income of the Great 25,917 21,235 Park Venture

Basis difference amortization (14,049 ) (13,283 )

Equity in earnings from the Great Park Venture $ 11,868 $ 7,952

The table below reconciles the Commercial segment results to the equity in earnings from our investment in the Gateway Commercial Venture that is reflected in the condensed consolidated statement of operations for the three and six months ended June 30, 2021 (in thousands):

Three Months Six Months Ended Ended June 30, 2021 June 30, 2021

Segment profit from operations $ 276 $ 855

Less net income of management company attributed to 103 202 the Commercial segment

Net income of the Gateway Commercial Venture 173 653

Equity in earnings from the Gateway Commercial $ 130 $ 490 Venture

View source version on businesswire.com: https://www.businesswire.com/news/home/20210805006096/en/

CONTACT: Investor Relations: Bob Wetenhall, 949-349-1087 bob.wetenhall@fivepoint.com or Media: Steve Churm, 949-349-1034 steve.churm@fivepoint.com