Business Wire | Nov 3, 2021 04:15PM EDT

Five Point Holdings, LLC Reports Third Quarter 2021 Results

Nov. 03, 2021

IRVINE, Calif.--(BUSINESS WIRE)--Nov. 03, 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 third quarter 2021 results.

Lynn Jochim, President and Chief Operating Officer, said, "Business conditions continue to be favorable for Five Point and its homebuilding partners. Homebuilders are continuing to see strong demand throughout California, and this is especially true in our unique Five Point communities. While we reported a $8.2 million loss for the quarter, current market conditions provide us an excellent environment to drive volume and performance. To that end, we anticipate meaningful land sales over the next quarters, starting with Valencia in either the fourth quarter or the first quarter of 2022 and then at Great Park Neighborhoods in the second half of 2022.

"Given our well-positioned communities in supply constrained markets, our strategy going forward will be as follows: First, we will continue to build leading sustainable mixed-use communities, which we believe will drive short-term and long-term value. Second, we will enhance entitlements to address the current housing shortage. Third, we are crafting a renewed strategic approach for the 23 million square feet of planned commercial opportunities in our three communities. Fourth, we will intensify our focus on bringing our extraordinary properties in San Francisco to market. And fifth, we will optimize and rationalize our cost structure to properly fit the size and scale of our business.

"Let me conclude by saying that our irreplaceable assets and strong business conditions leave me optimistic about both the short-term and long-term future of our company. With a clearly defined strategy and a commitment to excellence by our associates, we will continue to lead in sustainable community development while we focus on maximizing returns and driving shareholder value."

Third Quarter 2021 Consolidated Results

Liquidity and Capital Resources

As of September 30, 2021, total liquidity of $315.8 million was comprised of cash and cash equivalents totaling $191.1 million and borrowing availability of $124.7 million under our $125.0 million unsecured revolving credit facility. Total capital was $1.8 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 September 30, 2021

Revenues. Revenues of $20.7 million for the three months ended September 30, 2021 were primarily generated from management services and contingent consideration received from a commercial land sale in Valencia that was sold in 2011.

Equity in earnings from unconsolidated entities. Equity in earnings from unconsolidated entities was $0.5 million for the three months ended September 30, 2021, comprised of $0.4 million in earnings from our 37.5% percentage interest in the Great Park Venture offset by less than $0.1 million in loss from our 75% interest in the Gateway Commercial Venture.

During the three months ended September 30, 2021, the Great Park Venture sold 113 homesites on approximately 13 acres of land at the Great Park Neighborhoods for a base price of $65.1 million in addition to recognizing $1.4 million in variable marketing fees expected to be received when homes are sold to homebuyers. Additionally, the Great Park Venture closed on the sales of eight homes that were constructed, marketed, and sold under a fee build agreement for an aggregate sales price of $12.9 million.

Selling, general, and administrative. Selling, general, and administrative expenses were $20.8 million for the three months ended September 30, 2021.

Net loss. Consolidated net loss for the quarter was $8.2 million. Net loss attributable to noncontrolling interests totaled $4.4 million, resulting in net loss attributable to the Company of $3.8 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 Wednesday, November 3, 2021 at 5:00 p.m. Eastern Time. Lynn Jochim, President and Chief Operating 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 (856) 344-9283 (domestic) or (800) 263-0877 (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 8172054. The telephonic replay will be available until 11:59 p.m. Eastern Time on November 17, 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 Nine Months Ended September 30, September 30,

2021 2020 2021 2020

REVENUES:

Land sales $ 10,000 $ 42 $ 10,087 $ 17,076

Land sales-related 17 2 73 14 party

Managementservices-related 10,156 7,999 30,242 22,557 party

Operating properties 522 334 1,777 2,257

Total revenues 20,695 8,377 42,179 41,904

COSTS AND EXPENSES:

Land sales - - - 11,861

Management services 8,075 6,120 24,700 16,587

Operating properties 2,095 764 5,098 4,408

Selling, general, 20,757 17,656 59,513 58,594 and administrative

Total costs and 30,927 24,540 89,311 91,450 expenses

OTHER INCOME:

Interest income 21 71 74 1,303

Miscellaneous 1,516 91 3,833 267

Total other income 1,537 162 3,907 1,570

EQUITY IN EARNINGSFROM UNCONSOLIDATED 485 52,423 9,048 45,417 ENTITIES

(LOSS) INCOME BEFOREINCOME TAX BENEFIT (8,210 ) 36,422 (34,177 ) (2,559 )(PROVISION)

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

NET (LOSS) INCOME (8,210 ) 36,422 (34,182 ) (2,559 )

LESS NET (LOSS)INCOME ATTRIBUTABLE (4,362 ) 19,458 (18,266 ) (1,349 )TO NONCONTROLLINGINTERESTS

NET (LOSS) INCOMEATTRIBUTABLE TO THE $ (3,848 ) $ 16,964 $ (15,916 ) $ (1,210 )COMPANY



NET (LOSS) INCOMEATTRIBUTABLE TO THE COMPANY PER CLASS ASHARE

Basic $ (0.06 ) $ 0.25 $ (0.23 ) $ (0.02 )

Diluted $ (0.06 ) $ 0.25 $ (0.23 ) $ (0.02 )

WEIGHTED AVERAGECLASS A SHARES OUTSTANDING

Basic 67,429,394 66,746,065 67,376,746 66,709,190

Diluted 67,429,394 142,866,245 67,376,746 68,848,283

NET (LOSS) INCOMEATTRIBUTABLE TO THE COMPANY PER CLASS BSHARE

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

WEIGHTED AVERAGECLASS 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)

September 30, 2021

December 31, 2020

ASSETS

INVENTORIES

$

2,167,291

$

1,990,859

INVESTMENT IN UNCONSOLIDATED ENTITIES

374,441

442,850

PROPERTIES AND EQUIPMENT, NET

31,785

32,769

INTANGIBLE ASSET, NET-RELATED PARTY

56,259

71,747

CASH AND CASH EQUIVALENTS

191,134

298,144

RESTRICTED CASH AND CERTIFICATES OF DEPOSIT

1,330

1,330

RELATED PARTY ASSETS

96,659

103,681

OTHER ASSETS

17,376

20,605

TOTAL

$

2,936,275

$

2,961,985

LIABILITIES AND CAPITAL

LIABILITIES:

Notes payable, net

$

618,732

$

617,581

Accounts payable and other liabilities

158,197

135,331

Related party liabilities

99,796

113,149

Deferred income tax liability, net

12,578

12,578

Payable pursuant to tax receivable agreement

174,126

173,248

Total liabilities

1,063,429

1,051,887

REDEEMABLE NONCONTROLLING INTEREST

25,000

25,000

CAPITAL:

Class A common shares; No par value; Issued and outstanding: September 30, 2021-70,107,552 shares; December 31, 2020-69,051,284 shares

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

Contributed capital

583,890

578,278

Retained earnings

26,305

42,221

Accumulated other comprehensive loss

(2,797

)

(2,833

)

Total members' capital

607,398

617,666

Noncontrolling interests

1,240,448

1,267,432

Total capital

1,847,846

1,885,098

TOTAL

$

2,936,275

$

2,961,985

FIVE POINT HOLDINGS, LLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except shares)

(Unaudited)

September 30, December 31, 2021 2020

ASSETS

INVENTORIES $ 2,167,291 $ 1,990,859

INVESTMENT IN UNCONSOLIDATED ENTITIES 374,441 442,850

PROPERTIES AND EQUIPMENT, NET 31,785 32,769

INTANGIBLE ASSET, NET-RELATED PARTY 56,259 71,747

CASH AND CASH EQUIVALENTS 191,134 298,144

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

RELATED PARTY ASSETS 96,659 103,681

OTHER ASSETS 17,376 20,605

TOTAL $ 2,936,275 $ 2,961,985



LIABILITIES AND CAPITAL

LIABILITIES:

Notes payable, net $ 618,732 $ 617,581

Accounts payable and other liabilities 158,197 135,331

Related party liabilities 99,796 113,149

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

Payable pursuant to tax receivable agreement 174,126 173,248

Total liabilities 1,063,429 1,051,887



REDEEMABLE NONCONTROLLING INTEREST 25,000 25,000

CAPITAL:

Class A common shares; No par value; Issued andoutstanding: September 30, 2021-70,107,552 shares; December 31, 2020-69,051,284 shares

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

Contributed capital 583,890 578,278

Retained earnings 26,305 42,221

Accumulated other comprehensive loss (2,797 ) (2,833 )

Total members' capital 607,398 617,666

Noncontrolling interests 1,240,448 1,267,432

Total capital 1,847,846 1,885,098

TOTAL $ 2,936,275 $ 2,961,985

FIVE POINT HOLDINGS, LLC

SUPPLEMENTAL DATA

(In thousands)

(Unaudited)

Liquidity

September 30, 2021

Cash and cash equivalents

$

191,134

Borrowing capacity (1)

124,651

Total liquidity

$

315,785

FIVE POINT HOLDINGS, LLC

SUPPLEMENTAL DATA

(In thousands)

(Unaudited)

Liquidity

September 30, 2021

Cash and cash equivalents $ 191,134

Borrowing capacity (1) 124,651

Total liquidity $ 315,785

(1)

As of September 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 September 30, 2021, no amounts were drawn on the Company's $125.0 million revolving credit facility; however, letters of credit of(1) 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

September 30, 2021

Debt (1)

$

625,000

Total capital

1,847,846

Total capitalization

$

2,472,846

Debt to total capitalization

25.3

%

Debt (1)

$

625,000

Less: Cash and cash equivalents

191,134

Net debt

433,866

Total capital

1,847,846

Total net capitalization

$

2,281,712

Net debt to total capitalization (2)

19.0

%

Debt to Total Capitalization and Net Debt to Total Capitalization

September 30, 2021

Debt (1) $ 625,000

Total capital 1,847,846

Total capitalization $ 2,472,846

Debt to total capitalization 25.3 %



Debt (1) $ 625,000

Less: Cash and cash equivalents 191,134

Net debt 433,866

Total capital 1,847,846

Total net capitalization $ 2,281,712

Net debt to total capitalization (2) 19.0 %

(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 our consolidated results for the three and nine months ended September 30, 2021 (in thousands):

Three Months Ended September 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

$

10,000

$

-

$

66,950

$

-

$

76,950

$

-

$

76,950

$

(66,950

)

$

10,000

Land sales-related party

17

-

2,535

-

2,552

-

2,552

(2,535

)

17

Home sales

-

-

12,947

-

12,947

-

12,947

(12,947

)

-

Management services-related party(2)

-

-

10,054

102

10,156

-

10,156

-

10,156

Operating properties

381

141

-

2,108

2,630

-

2,630

(2,108

)

522

Total revenues

10,398

141

92,486

2,210

105,235

-

105,235

(84,540

)

20,695

COSTS AND EXPENSES:

Land sales

-

-

49,827

-

49,827

-

49,827

(49,827

)

-

Home sales

-

-

10,187

-

10,187

-

10,187

(10,187

)

-

Management services(2)

-

-

8,075

-

8,075

-

8,075

-

8,075

Operating properties

2,095

-

-

596

2,691

-

2,691

(596

)

2,095

Selling, general, and administrative

5,227

926

8,630

1,255

16,038

14,604

30,642

(9,885

)

20,757

Management fees-related party

-

-

6,893

-

6,893

-

6,893

(6,893

)

-

Total costs and expenses

7,322

926

83,612

1,851

93,711

14,604

108,315

(77,388

)

30,927

OTHER INCOME (EXPENSE):

Interest income

-

-

83

-

83

21

104

(83

)

21

Interest expense

-

-

-

(311

)

(311

)

-

(311

)

311

-

Miscellaneous

1,516

-

-

-

1,516

-

1,516

-

1,516

Total other income (expense)

1,516

-

83

(311

)

1,288

21

1,309

228

1,537

EQUITY IN EARNINGS FROM UNCONSOLIDATED ENTITIES

159

-

-

-

159

-

159

326

485

SEGMENT PROFIT (LOSS)/LOSS BEFORE INCOME TAX BENEFIT

4,751

(785

)

8,957

48

12,971

(14,583

)

(1,612

)

(6,598

)

(8,210

)

INCOME TAX BENEFIT

-

-

-

-

-

-

-

-

-

SEGMENT PROFIT (LOSS)/NET LOSS

$

4,751

$

(785

)

$

8,957

$

48

$

12,971

$

(14,583

)

$

(1,612

)

$

(6,598

)

$

(8,210

)

Segment Results

The following tables reconcile the results of operations of our segments to ourconsolidated results for the three and nine months ended September 30, 2021 (inthousands):

Three Months Ended September 30, 2021

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

REVENUES:

Land sales $ 10,000 $ - $ 66,950 $ - $ 76,950 $ - $ 76,950 $ (66,950 ) $ 10,000

Land sales-related 17 - 2,535 - 2,552 - 2,552 (2,535 ) 17 party

Home sales - - 12,947 - 12,947 - 12,947 (12,947 ) -

Managementservices-related - - 10,054 102 10,156 - 10,156 - 10,156 party^(2)

Operating 381 141 - 2,108 2,630 - 2,630 (2,108 ) 522 properties

Total revenues 10,398 141 92,486 2,210 105,235 - 105,235 (84,540 ) 20,695

COSTS AND EXPENSES:

Land sales - - 49,827 - 49,827 - 49,827 (49,827 ) -

Home sales - - 10,187 - 10,187 - 10,187 (10,187 ) -

Management services - - 8,075 - 8,075 - 8,075 - 8,075 ^(2)

Operating 2,095 - - 596 2,691 - 2,691 (596 ) 2,095 properties

Selling, general, 5,227 926 8,630 1,255 16,038 14,604 30,642 (9,885 ) 20,757 and administrative

Management - - 6,893 - 6,893 - 6,893 (6,893 ) - fees-related party

Total costs and 7,322 926 83,612 1,851 93,711 14,604 108,315 (77,388 ) 30,927 expenses

OTHER INCOME (EXPENSE):

Interest income - - 83 - 83 21 104 (83 ) 21

Interest expense - - - (311 ) (311 ) - (311 ) 311 -

Miscellaneous 1,516 - - - 1,516 - 1,516 - 1,516

Total other income 1,516 - 83 (311 ) 1,288 21 1,309 228 1,537 (expense)

EQUITY IN EARNINGSFROM UNCONSOLIDATED 159 - - - 159 - 159 326 485 ENTITIES

SEGMENT PROFIT(LOSS)/LOSS BEFORE 4,751 (785 ) 8,957 48 12,971 (14,583 ) (1,612 ) (6,598 ) (8,210 )INCOME TAX BENEFIT

INCOME TAX BENEFIT - - - - - - - - -

SEGMENT PROFIT $ 4,751 $ (785 ) $ 8,957 $ 48 $ 12,971 $ (14,583 ) $ (1,612 ) $ (6,598 ) $ (8,210 )(LOSS)/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 Venture operating results, which are included in the Great Park segment(1) 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.

For the Great Park and Commercial segments, represents the revenues and(2) expenses attributable to the management company for providing services to the Great Park Venture and the Gateway Commercial Venture, as applicable.

Nine Months Ended September 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

$

10,087

$

-

$

346,417

$

-

$

356,504

$

-

$

356,504

$

(346,417

)

$

10,087

Land sales-related party

73

-

60,894

-

60,967

-

60,967

(60,894

)

73

Home sales

-

-

12,947

-

12,947

-

12,947

(12,947

)

-

Management services-related party(2)

-

-

29,938

304

30,242

-

30,242

-

30,242

Operating properties

1,346

431

-

6,357

8,134

-

8,134

(6,357

)

1,777

Total revenues

11,506

431

450,196

6,661

468,794

-

468,794

(426,615

)

42,179

COSTS AND EXPENSES:

Land sales

-

-

301,247

-

301,247

-

301,247

(301,247

)

-

Home sales

-

-

10,187

-

10,187

-

10,187

(10,187

)

-

Management services(2)

-

-

24,700

-

24,700

-

24,700

-

24,700

Operating properties

5,098

-

-

1,265

6,363

-

6,363

(1,265

)

5,098

Selling, general, and administrative

14,750

2,988

24,834

3,572

46,144

41,775

87,919

(28,406

)

59,513

Management fees-related party

-

-

19,393

-

19,393

-

19,393

(19,393

)

-

Total costs and expenses

19,848

2,988

380,361

4,837

408,034

41,775

449,809

(360,498

)

89,311

OTHER INCOME (EXPENSE):

Interest income

-

-

416

-

416

74

490

(416

)

74

Interest expense

-

-

-

(921

)

(921

)

-

(921

)

921

-

Miscellaneous-related party

-

1,070

-

-

1,070

978

2,048

-

2,048

Miscellaneous

1,785

-

-

-

1,785

-

1,785

-

1,785

Total other income (expense)

1,785

1,070

416

(921

)

2,350

1,052

3,402

505

3,907

EQUITY IN EARNINGS (LOSS) FROM UNCONSOLIDATED ENTITIES

280

-

(1,409

)

-

(1,129

)

-

(1,129

)

10,177

9,048

SEGMENT (LOSS) PROFIT/LOSS BEFORE INCOME TAX PROVISION

(6,277

)

(1,487

)

68,842

903

61,981

(40,723

)

21,258

(55,435

)

(34,177

)

INCOME TAX PROVISION

-

-

-

-

-

(5

)

(5

)

-

(5

)

SEGMENT (LOSS) PROFIT/NET LOSS

$

(6,277

)

$

(1,487

)

$

68,842

$

903

$

61,981

$

(40,728

)

$

21,253

$

(55,435

)

$

(34,182

)

Nine Months Ended September 30, 2021

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

REVENUES:

Land sales $ 10,087 $ - $ 346,417 $ - $ 356,504 $ - $ 356,504 $ (346,417 ) $ 10,087

Land sales-related 73 - 60,894 - 60,967 - 60,967 (60,894 ) 73 party

Home sales - - 12,947 - 12,947 - 12,947 (12,947 ) -

Managementservices-related - - 29,938 304 30,242 - 30,242 - 30,242 party^(2)

Operating properties 1,346 431 - 6,357 8,134 - 8,134 (6,357 ) 1,777

Total revenues 11,506 431 450,196 6,661 468,794 - 468,794 (426,615 ) 42,179

COSTS AND EXPENSES:

Land sales - - 301,247 - 301,247 - 301,247 (301,247 ) -

Home sales - - 10,187 - 10,187 - 10,187 (10,187 ) -

Management services^ - - 24,700 - 24,700 - 24,700 - 24,700 (2)

Operating properties 5,098 - - 1,265 6,363 - 6,363 (1,265 ) 5,098

Selling, general, and 14,750 2,988 24,834 3,572 46,144 41,775 87,919 (28,406 ) 59,513 administrative

Management - - 19,393 - 19,393 - 19,393 (19,393 ) - fees-related party

Total costs and 19,848 2,988 380,361 4,837 408,034 41,775 449,809 (360,498 ) 89,311 expenses

OTHER INCOME (EXPENSE):

Interest income - - 416 - 416 74 490 (416 ) 74

Interest expense - - - (921 ) (921 ) - (921 ) 921 -

Miscellaneous-related - 1,070 - - 1,070 978 2,048 - 2,048 party

Miscellaneous 1,785 - - - 1,785 - 1,785 - 1,785

Total other income 1,785 1,070 416 (921 ) 2,350 1,052 3,402 505 3,907 (expense)

EQUITY IN EARNINGS(LOSS) FROM 280 - (1,409 ) - (1,129 ) - (1,129 ) 10,177 9,048 UNCONSOLIDATEDENTITIES

SEGMENT (LOSS) PROFIT/LOSS BEFORE INCOME (6,277 ) (1,487 ) 68,842 903 61,981 (40,723 ) 21,258 (55,435 ) (34,177 )TAX PROVISION

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

SEGMENT (LOSS) PROFIT $ (6,277 ) $ (1,487 ) $ 68,842 $ 903 $ 61,981 $ (40,728 ) $ 21,253 $ (55,435 ) $ (34,182 )/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.

Represents the removal of the Great Park Venture and Gateway Commercial Venture operating results, which are included in the Great Park segment(1) 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.

For the Great Park and Commercial segments, represents the revenues and(2) 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 nine months ended September 30, 2021 (in thousands):

Three Months Ended

September 30, 2021

Nine Months Ended

September 30, 2021

Segment profit from operations

$

8,957

$

68,842

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

1,979

5,238

Net income of the Great Park Venture

6,978

63,604

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

2,617

23,852

Basis difference amortization

(2,250

)

(15,533

)

Equity in earnings from the Great Park Venture

$

367

$

8,319

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 nine months ended September 30, 2021 (in thousands):

Three Months Ended

September 30, 2021

Nine Months Ended

September 30, 2021

Segment profit from operations

$

48

$

903

Less net income of management company attributed to the Commercial segment

102

304

Net (loss) income of the Gateway Commercial Venture

(54

)

599

Equity in (loss) earnings from the Gateway Commercial Venture

$

(41

)

$

449

View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006188/en/

CONTACT: Investor Relations: Bob Wetenhall, 949-349-1087 bob.wetenhall@fivepoint.com

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CONTACT: Media: Steve Churm, 949-349-1034 steve.churm@fivepoint.com